The Diet, Japan’s parliament, enacted a set of bills mainly aimed at enhancing the international competitiveness of domestic shipbuilders and shipping firms, reports Jiji Press.
Shipbuilding law revisions
The House of Councillors, the upper chamber of the Diet, unanimously approved the bills, including one to revise the shipbuilding law, at the day’s plenary meeting. The bills cleared the House of Representatives, the lower chamber, last month.
The law revisions are chiefly intended to expand financial assistance to Japanese shipbuilders and shipping firms so that they can compete better against their Chinese and South Korean rivals, which are fiercely competing for lower prices.
Financial assistance to shipping companies
Under the revised laws, shipbuilders can get tax breaks, subsidies, low interest loans or other assistance if the minister of land, infrastructure, transport and tourism approves their business plans, such as those featuring restructuring measures or investment plans aimed at improving productivity.
The government will offer financial assistance to shipping companies that purchase ships built by firms with minister-authorized business plans.
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Source: Jiji Press