Can the Treasury see the people’s predicament?
Amid growing public anxiety about the relapse of the new coronavirus, the Ministry of Finance has announced that it will end the sustainability benefits and rent support benefits provided to small and medium-sized enterprises on January 15, next year, as originally planned, leading to criticism. I am. It ignores the fact that there are many small and medium-sized enterprises that have suffered from management difficulties due to the prolonged spread of corona infection and the unstoppable economic deterioration. It is necessary not only to continue the business but also to further enhance it. The Treasury’s proposal to terminate Sustainable Benefits and Rent Support Benefits must not be implemented.
With the idea of ”self-responsibility”
Sustainable benefits are provided to support small and medium-sized enterprises and sole proprietors whose income has fallen due to the influence of Corona. Rent support benefits were also created to reduce the burden of land rent and rent for business owners whose sales have declined. Along with the expansion of employment adjustment subsidies for workers and leave benefits and subsidies, this was achieved at the strong demand of public opinion.
The Ministry of Finance’s proposal for termination of sustainable benefits, etc. was presented by a subcommittee (26th) of the advisory body of Finance Minister Taro Aso, the Financial System Council, which is compiling a written opinion for the next fiscal year’s budget compilation.
Although the sales of small and medium-sized enterprises have decreased significantly and corona-related bankruptcies have occurred to some extent, they have been “suppressed” to a low level by the measures of two benefits, and “emergency response” is “as planned”. It should end. ” In the discussions of the subcommittee, it is said that there was an opinion that sustaining benefits and the like would be a “prolongation of corporate life”. It is said that we should shift to corporate support that makes “positive” efforts, and it is said that we will support “companies that make efforts” but not “companies that do not make efforts”. Regarding cash flow support such as lending, it is said that “prolongation may significantly hinder the metabolism of small and medium-sized enterprises.” This is an idea based on the theory of “self-responsibility” claimed by Prime Minister Yoshihide Suga.
The Ministry of Finance is not the only one with such ideas. The Growth Strategy Council (Chairman, Chief Cabinet Secretary Katsunobu Kato) established by Prime Minister Suga is also discussing the “selection” of small and medium-sized enterprises. This is a discussion that is far from the serious reality of the field.
Since before Corona, the management of small and medium-sized enterprises has been hit by widening poverty and disparities due to “Abenomics” and the consumption tax hike twice, and “it will not be possible to pass the year as it is” I have no choice but to give up. ” According to a private research firm, it is predicted that more than 310,000 SMEs will be in danger of going out of business if the corona convergence is prolonged.
What is important now is the implementation of the second sustainability benefit, and the expansion and extension of rent support. The Treasury’s proposal is nothing but retrograde.
Financial management to protect our lives
In the same subcommittee of the Finance Tribunal, a backward-looking material was also submitted, which concludes that the small class of mathematics that the people are desperately wishing for has “limited impact on academic ability on a class scale”. It’s too rigid and cold. The corona crisis has highlighted the contradictions of the “40 class” and the need for a small class. The Treasury should change its stance.
It is necessary to shift from corona sickness to financial management that protects and enriches the lives of the people.
(From “The Akahata” dated October 30, 2020)
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