13 years after the Great East Japan Earthquake, group subsidies become a “hindrance” to affected companies March 8, 16:46
It's almost 13 years since the Great East Japan Earthquake.
Many small and medium-sized enterprises suffered severe damage in the earthquake, and ``group subsidies'' were established to help them rebuild.
The large amount of funding provided is said to have supported the speedy recovery of many companies.
However, our interviews have revealed that these subsidies are a ``hindrance'' to disaster-affected companies.
(Sendai Broadcasting Station reporter Minoru Yoshiwara, Morioka Broadcasting station reporter Kei Nakazawa)
Fisheries company quickly recovered with subsidies
We are a seafood processing company located in Ishinomaki City, Miyagi Prefecture.
We freeze caught mackerel and other fish and ship them as raw materials for processed products.
Masaru Ogata, Managing Director of a Fisheries Processing Company
: ``The fish are brought in by truck, and we put them all in the tanks here.''
Thirteen years ago, this company's factory and office were completely destroyed by the tsunami caused by the Great East Japan Earthquake.
The group subsidy was utilized for recovery efforts.
The group subsidy system was established in the wake of the Great East Japan Earthquake, which caused severe damage to many small and medium-sized enterprises.
A group of disaster-affected companies will formulate a reconstruction plan, and the national and prefectural governments will subsidize three-quarters of the reconstruction costs, up to a maximum of 1.5 billion yen per company.
The large amount of funding provided is said to have supported the speedy recovery of many companies.
The seafood processing company received a maximum of 1.5 billion yen in subsidies, and was able to rebuild its factory a year and a half after the disaster.
The company says it was able to resume operations sooner than expected.
Managing Director Masaru Ogata
: ``If it wasn't for the group subsidy, I don't think we would have been able to make this much capital investment and restart the business.There is no doubt that the group subsidy was a very useful system.''
13 years after the earthquake, subsidies became a ``hindrance''
However, 13 years have passed since the earthquake.
Group subsidies, which were once a stepping stone to recovery, have instead become a ``hindrance'' to management.
Managing Director Masaru Ogata
: ``Because we're dealing with seawater, it's getting rusty.'' As expected, the whole thing is getting loose.
A fish sorting machine that the company purchased with subsidies.
A problem was found in the control board, but I am continuing to use it while it is being repaired.
Under the group subsidy rules, equipment and facilities introduced must be used for the purpose for which they were applied for for a certain period of time, and if they are disposed of within that period, a portion of the subsidy must be returned.
The company estimates that if the equipment is replaced, it will need to return tens of millions of yen to the prefecture.
For this reason, they are holding back on new capital investment.
Managing Director Masaru Ogata: ``
Even though we're recruiting, we can't find people, so we'd like to change to a system that requires less manpower and increases production capacity.However, is it okay to just dispose of the things we're currently using? That's not possible, because there is a subsidy.''
Return orders to 575 businesses in 3 prefectures
This group grant.
NHK interviewed Iwate, Miyagi, and Fukushima prefectures and found that at least 575 businesses were ordered to repay a total of more than 2.73 billion yen.
Miyagi Prefecture: 275 businesses, over 1,757.4 million yen
Fukushima Prefecture: 195 businesses, over 615.63 million yen
Iwate Prefecture: 105 businesses, over 365.67 million yen
Reasons for return orders include
▽transfer of facilities and equipment
, ▽demolition of facilities
, and ▽disposal of equipment
.
It is also known that restitution orders have been issued to businesses that have gone bankrupt.
Although it was rebuilt with subsidies...
Although some inns were rebuilt with subsidies, they had no choice but to go bankrupt.
My name is Mitsuko Sasaki (75), who was the proprietress of an inn in Miyako City, Iwate Prefecture.
She filed for her bankruptcy last October.
Mitsuko Sasaki
said, "I feel lonely. I'm sorry I couldn't do it myself. I hope you'll build it beautifully."
This inn, along with the restaurant attached to it, was completely destroyed by the tsunami caused by the earthquake.
So, with the help of a group subsidy of approximately 160 million yen, the company resumed operations at a different location two years later.
After that, sales increased significantly due to not only tourists visiting Jodogahama, a scenic spot that represents Sanriku, but also demand related to reconstruction work.
But in 2016.
The building was flooded by Typhoon No. 10, and the inn was forced to close.
Three years later, the Sanriku Railway, the third sector train that runs through the area, was shut down for five months due to typhoon damage, which had a major impact on tourism.
Mitsuko Sasaki
: ``I would never come to Miyako City unless I was a Santetsu customer.I don't think people can go to Miyako, so in the end everyone goes to neighboring Akita or Aomori, and customers don't come.'' Yo"
Since then, inn sales have fallen by more than half due to a decline in reconstruction demand and a decrease in customers due to the spread of the new coronavirus.
We also put effort into catering boxed lunches, but due to a poor catch of fish and rising raw material and fuel costs, we were unable to make a profit.
With no signs of recovery in the inn management or restaurant business, he said he considered transferring or converting the business.
Mitsuko Sasaki: `
`I think the best option (if you want to switch) is nursing care.We can feed people who come to the day care service, and we have a banquet hall, so we can let them take a break.There are also buses and toilets. There's also a bed, so we can take care of several people there, and there's an elevator."
However, group subsidy rules require a partial return of the subsidy if the building is transferred or the business is converted.
For reinforced concrete buildings, the maximum period is 50 years.
Mitsuko Sasaki: ``
Even if I want to transfer it to someone else, I can't do it for 50 years.It's a bit unreasonable, I can't ask them to pay me a subsidy.I feel like I'm being strangled all the time, and I can't do it for 50 years.'' When that happens, I think it might be better to declare bankruptcy.''
Expert: “Reducing the burden on businesses should be allowed through special provisions”
Professor Tajima Kuwata of Ritsumeikan University, who is familiar with the subsidy system, says, ``When rebuilding a business after a disaster, it is best to make a medium- to long-term plan (receiving a subsidy) over a period of five or 10 years, and then rebuild. This is important because public support is being invested in it,'' and points out the following:
Professor Tajima Kuwata, Ritsumeikan University
: ``In reality, it is extremely difficult to ask business operators who have lost everything in the disaster to do the same.Also, given the large number of external factors such as the spread of the new coronavirus and poor fishing, it is difficult to set the rules in a rigid manner.'' It is extremely difficult to apply this to the government. Special cases should be granted to reduce or exempt businesses from the burden."
It would be no good if the company went to great lengths to rebuild its business with the group subsidy, only to find itself unable to survive due to the inconvenience of the system.
Flexible support that is tailored to the actual situation in the disaster area is required.
(Scheduled to be broadcast on “Good Morning Japan” on March 12th)
After working as a reporter
for Sendai Broadcasting Station and
Minoru Yoshiwara Newspaper, he started working at Sendai Broadcasting Station in 2023
, mainly covering finance and industrial policy.
Morioka Broadcasting Station reporter
Kei Nakazawa
After working in the Fukushima bureau and economic department, from 2023 Morioka bureau
mainly covers the earthquake disaster and local economy.