	japanese yards to form cartel cut output japan s ailing yards have won approval from the fair trade commission to form a cartel to slash production to about half of total capacity for one year effective april industry sources said the approval follows an act of parliament passed last week designed to help the industry regroup and shed pct of capacity by march transport ministry officials said the cartel comprising yards capable of constructing s of more than gross tonnes will limit newbuilding output to a maximum of three mln compensated gross registered tonnes in the builders association of japan said industry sources said the will seek to renew the cartel in in the belief demand will remain sluggish last week s temporary act of parliament also allows builders to receive favourable taxation terms plus up to billion yen in compensation for liabilities incurred through job losses and the sale of excess capacity up to billion yen has been allocated for purchasing redundant land and equipment from builders the ministry will start drawing up its restructuring guidelines from april and the yards will implement the guidelines from september industry sources said reuter 
