In 2008, a tonnage tax system $ ^{Note} $ was introduced to increase the number of Japanese-flagged vessels and Japanese seafarers, the core of Japanese merchant fleet, on a planned basis. Ten firms whose Japanese-flagged vessels and Japanese seafarers Securing Plan had been approved by the MLIT in accordance with the Maritime Transport Low have been applied to this tonnage tax and are now working to increase Japanese-flagged vessels and Japanese seafarers on a planned basis. As a result of these efforts, Japanese-flagged vessels and Japanese seafarers have been increased steadily, but since Foreign-flagged vessels have opted to avoid calling at Japanese ports in the wake of the Great East Japan Earthquake and the nuclear power plant accident, the significance of economic security assurance by Japanese merchant fleet has been more pronounced. In the circumstances, the amended Maritime Transport Low came into force in September 2012, establishing a “deemed-Japanese-flagged vessel” system. The deemed-Japanese-flagged vessel means a Foreign-flagged vessel operated by Japanese shipping firm and owned by their overseas subsidiaries which can change its flag to Japan immediately in case of issuing order of navigation in accordance with Maritime Transport Low. Furthermore, the FY2013 Tax System Reform Plan has expanded the target of the tonnage tax system to deemed-Japanese-flagged vessels as applicable vessels, to support the increased Japanese-flagged vessels and promote to secure the deemed-Japanese-flagged vessels to perform a complementary role of Japanese-flagged vessels. Japan will pursue to consolidate stable maritime transport that is functional in times of emergencies, as well as in ordinary times, by way of these and other approaches.

## ② Acquiring and fostering seafarers

Acquiring and fostering Japanese seafarers, human resources of shipping, is of essential importance to boosting Japan’s economy and maintaining and upgrading national life. Yet, the number of Japanese international ship seafarers has fallen to about 2,400 after peaking at about 57,000. In the meantime, concerns over stable marine transportation loom as coastal ship seafarers continue to get aged at a rapid pace (about 50% of the entire seafarers are 50 years old or more), with the result of a resultant dominant shortage of successors to them.

For this reason, those operators who have their Japanese Ship and Seafarers Acquisition Plans accredited and who pursue to acquire and foster seafarers in accordance with these plans are supported through the tonnage tax system for Japanese international ship seafarers and through the implementation of a planned seafarers employment project

Graphic II-6-3-6 Changes in the Number of Japanese Seafarers

for coastal ship seafarers. Specific ongoing efforts intended to acquire and foster good-quality crews include holding efficient and effective sessions of education and training to foster new seafarers ready to work off-hand to fill the needs for international and coastal shipping, expanding the scope of on-board practical training using the vessels owned by shipping service operators (practical training aboard carrier-owned vessels) and seeking varied and excellent human resources from new sources by improving on the qualification systems relating to fisheries high-school graduates, in intensive coordination and partnership with stakeholders connected with the training of seafarers, such as those in the shipping industry and at seafarers education and training institutions, on the basis of a report compiled in March 2012 by the Review Conference on Acquiring and Fostering Seafarers.

In addition to such approaches to crew acquisition and fostering, the Ministry will continue its commitment to supporting the reemployment of retiring seafarers using the retiring seafarers job conversion benefit system, awarding persons of merit instrumental in promoting the Nation of Maritime, expanding the population of prospective seafarers through PR activities, etc. at the Next-Generation Human Resources Development Promotion Conference for maritime industries and promoting the diffusion of the guidelines entitled “On-Board Occupational Safety and Healthy Management System,” which aims to improve the level of occupational safety and health on a phased basis and reduce seafarers disasters continually with ship owners proceeding with continual safety management by voluntarily running a predefined sequence