A battle is brewing between local governments, who are keen to prove they are environmentally friendly, and the convenience store industry.

At least 10 local governments said they were considering or preparing to discuss restrictions on the late-night operating hours of convenience stores to cut down energy use and reduce carbon dioxide emissions, according to a survey of the 47 prefectures and 17 major cities in Japan, the Asahi Shimbun newspaper reported yesterday.

The convenience store industry, which thrives on 24/7 service, vehemently opposes such a plan, saying that the amount of carbon dioxide reduced under such a policy would be negligible, considering the negative impact on business, employment and the public.

Tokyo, Saitama, Kanagawa, Nagano and Aichi prefectures, as well as the city of Kyoto, are now considering restrictions on operating hours, Asahi reported.

The Nikkei business daily said the shops might have to close from 11pm to 7am.

The industry, which is also grappling with the spectre of a higher tobacco tax, fears that the latest plan could hit overall sales.

'Even if we operate the stores only for 16 hours, we cannot switch off the refrigerators,' Mr Toshiro Yamaguchi, president of Seven-Eleven Japan, which is owned by Seven & I Holdings, said at a recent news conference.

He said such cuts in operating hours would reduce each store's profit by 20 per cent.

Japan has more than 40,000 convenience stores. The combined amount of carbon dioxide released from these stores in fiscal year 2006 was an estimated 2.67 million tons, or about 0.2 per cent of Japan's total emissions.

An industry official said that even if all convenience stores were to operate 16 hours a day, the amount of carbon dioxide reduced would 'amount to only about 0.009 per cent' of the country's total emissions, Asahi reported.

'The restrictions could cut profits and lead to less efficient operations and the increased loss of opportunities,' said Mr Masafumi Shoda, an analyst at Nomura Securities.

If the restrictions are imposed, other 24-hour businesses such as restaurant chains, petrol stations and rental video stores could eventually be affected.

Analysts say there are more efficient methods of reducing carbon emissions, such as cutting back on the huge number of vending machines. There is at least one for every 20 people in Japan.

REUTERS