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Speeches and Statements by Prime Minister Junichiro Koizumi

(Provisional Translation)

Basic Policy

September 27, 2004

The Koizumi Cabinet will continue to promote vigorously the following reforms under the policies of "without reform there will be no growth," "leave to the private sector what it can do," and "leave to the localities what they can do."
1.Full implementation of policies "from public sector to private sector" and "from the state to the regions"
* With regard to the privatization of postal services, the government will engage in a more detailed structural design, maintaining close coordination with the ruling party and others and in compliance with the Basic Policy on the Privatization of the Postal Services (Cabinet Decision on September 10, 2004). The bills to privatize Japan Post from April 2007 will be submitted to the next regular session of the Diet.
* As for the reform packages of three issues, the government will earnestly consider the reform plan on state subsidies compiled by regional organizations, and by the end of 2004 bring forth a general picture for the reform packages: reform of state subsidies to reduce the amount by roughly three trillion yen over a two-year period starting from the next fiscal year, in addition to the one trillion yen reduction to be achieved this fiscal year, the transfer of tax resources from the central to local governments and reform of local allocation tax.
* In addition to advancing work towards the launch of tests for market introduction, promote regulatory reform such as lifting the ban on mixed insurance system for medical care expenses.
2.Revitalization of the economy
*Press ahead with financial, taxation, regulatory and public expenditure reforms to bring out the vitality of the private sector and the motivation of regions. Overcome deflation and revitalize the economy.
* Ensure that all non-performing loans have been disposed of by the end of FY2004, and lift the ban on pay-offs from FY2005.
* Promote fiscal reform with the aim of "the primary balance out of deficit by the early 2010s."
* Vigorously promote measures for employment and work of young people, focusing on part-time workers and the unemployed.
* Revitalize the region and its economy by bringing out the latent potential of the regions and the cities through utilization of the system of special zones for structural reform, promotion of Japan as a nation built on tourism and urban revitalization, as well as reform of the state subsidy system.
* Support motivated small and medium sized enterprises. Advance the creation of new business and revitalization of industries.
* Promote structural reform in the area of agriculture by such means as securing food safety and confidence in food and providing support to agricultural management with motivation and competence.
* Promote science and technology in the areas such as low-emission vehicles, green energy and "zero waste" action campaign to achieve both environmental conservation and economic growth.
* Strive for the conclusion of economic partnership agreements (EPA) with Asian countries.
3.Securing people's "reassurance" and "safety" in their daily living
*Comprehensively review the social security system including the pension, medical and care systems in order to make it sustainable into the future. Conduct reform of the Social Insurance Agency. Continue to take measures to tackle the decreasing birthrate, such as the "zero waiting for nursery" program.
* Strengthen measures against crime. Revive "Japan, the safest country in the world."
* Continue promotion of educational reforms for "improving human resources" through advancing hands-on learning and instructions based on the level of proficiency, and revitalization of higher education.
* Establish a "nation founded on intellectual property" and promote a nation built on wealth of culture and arts.
4.Diplomacy, security, crisis management
* Pursue initiative lead foreign and security policies to protect the national interests and safety of people of Japan by attaching importance to the Japan-United States alliance as well as international cooperation. Work on the issues such as North Korea, reconstruction assistance to Iraq and negotiations for the signing of a peace treaty with the Russian Federation.
* Construct a defense structure to respond to new threats such as ballistic missiles and prevent international terrorism.
5.Political reform
*Promote political reform, and realize politics which can earn the trust of the people.