Press Conference by Minister Saito (Excerpt)

*Note: This is a provisional translation for reference purposes only.

11:45 to 11:53 a.m.
Tuesday, July 23, 2024
The courtyard-side lobby of the METI Main Building

Opening Remarks

None

Question-and-Answer Session

Withdrawal of Mr. Biden from the U.S. presidential race

Q: I would like to ask you about the developments concerning Mr. Biden. Mr. Biden, the incumbent president, has decided to withdraw from the next presidential race. The Biden administration has put forward the Inflation Reduction Act (IRA), maintained harmony with Japan's Green Transformation (GX) efforts, and advanced Japan-U.S. collaboration in decarbonization policies. However, in addition to the fact that the Biden administration will not continue, it is reported that Mr. Trump, the Republican Party candidate who will be the opponent in the election, has shown a skeptical view of the IRA.
Against this backdrop, could you explain your view on the impact of the withdrawal on the continuity of decarbonization policies in Japan and the U.S. and on Japan’s action policies in response?

A: First, as this is a matter involving U.S. domestic politics, I think that I should refrain from making any comments based on my preconceived ideas or answering any hypothetical question about the presidential election.
Based on this, I believe that the need for Japan and the U.S. to promote cooperation in a variety of fields is greater than ever before, as we face a variety of challenges in the international situation.
In advancing Japan’s GX Promotion Strategy, for example, it is essential for Japan to build resilient, sustainable supply chains with like-minded countries. It is also important to promote cooperation between Japan and the U.S. in the field of clean energy.
Accordingly, I believe that the public and private sectors of Japan and the U.S. should work out the specifics of cooperation and that we should strive to advance the GX Promotion Strategy and other policies necessary for Japan in a steady manner.

Mergers and acquisitions of small and medium enterprises

Q: I would like to ask you about mergers and acquisitions (M&As) of small and medium enterprises (SMEs). It was found through interviews with SMEs that many of them have been facing problems one after another so that even after the completion of their business succession, the successors conduct almost no business operations.
A company owner complained of being betrayed by the successor company which was referred to it by an intermediary agency registered in the Small and Medium Enterprise Agency database, which the owner trusted because of the governmental endorsement. I understand that the government has been proactively encouraging SMEs to be involved in M&As. Could you comment on the responsibility that such intermediary agencies and the government should take?
Moreover, I recognize that the government has been working on the revision of the related guidelines. I would like to ask you about how swiftly the government is working on this effort and whether it will step into the control of such successors by laws and regulations.

A: First, M&As of SMEs are an important effort that contributes to the business succession of companies with no business successors or to the improvement of productivity and higher wages for employees. So, the government would like to proactively promote this effort.
Meanwhile, as you have pointed out, it is also true that there are challenges such as inappropriate business successors, troubles involving business owners’ personal guarantees, and complaints about persistent advertising and sales activities. While I would like to refrain from making a comment on individual cases that are currently under investigation, generally speaking, it would be extremely regrettable if support organizations that have registered with the M&A Support Organization Registration System have been actively involved in M&As by inappropriate successors.
Taking this situation very seriously, from the end of May, METI has been holding discussions at the expert council under the Small and Medium Enterprise Agency toward the revision of the M&A Guidelines for SMEs. As for the details of the revised guidelines, METI and the members of the council are now in the process of finalizing the coordination, eyeing the addition of some provisions such as the requirement for intermediary agencies and financial advisors (FAs) to conduct credentials checks on candidate successors to SME businesses and the prohibition of repetitive advertising and sales activities by intermediary agencies and FAs targeting SMEs that do not wish to receive them.
In addition, if we find that any intermediary agency or FA violates the guidelines, including those currently in force, we will take certain actions in response, including the cancellation of registration from the M&A Support Organization Registration System and the publication of the business’s name. In this way, METI will strive to ensure the effectiveness of the guidelines.
METI will continue to advance the development of a healthy environment in which business owners of SMEs can work on M&As with peace of mind.

Measures for addressing the aviation fuel shortage

Q: I would like to ask you about the government’s measures for addressing the aviation fuel shortage.
Last week, on the 19th, the government compiled an action plan as a joint effort by the public and private sectors. Could you explain the future actions and tell us what specific measures the government intends to take?

A: Concerning the issue of the aviation fuel shortage, METI and MLIT published the Action Plan to Address Aviation Fuel Shortage last week, on Friday the 19th, based on the results of discussions by the Public-Private Task Force on Jet Fuel Shortage that the ministries jointly established.
The action plan includes short-term efforts, such as increasing oil transportation by tanker trucks to enhance the fuel transportation system to secure a fuel amount corresponding to that required for 150 or more flights every week to and from other Asian regions. Based on this, the Public-Private Task Force will confirm the progress made in improving the fuel shortages in airports.
As a medium- to long-term effort, we consider it important to secure the oil amount necessary for aviation in fuel storage tanks in oil refineries and airports. In accordance with the action plan and in collaboration with MLIT and related industrial players, METI will swiftly address this issue in order to prevent the disruption of the smooth supply of aviation fuel.