Press Conference by the Chief Cabinet Secretary (Excerpt)

JAPANESE

Opening Statement by Chief Cabinet Secretary Edano

(Abridged)

CHIEF CABINET SECRETARY EDANO: Prior to the Cabinet meeting, a meeting of Cabinet ministers concerned with the double loan issue (in which those affected by the disaster continue to pay mortgages for destroyed property while receiving new loans for reconstruction) was held, and I would like to report the content of that meeting to you. In the meeting, the Government's response policy to the issue of double loans was decided. Based on recommendations received from the Democratic Party of Japan (DPJ) Reconstruction Vision Team, the Government has engaged in careful and detailed considerations. The Government recognizes that the issue of double loans should be dealt with in an expedited manner and has broadly categorized the types of loans as follows: i) loans to small and medium enterprises and agriculture and fisheries industries, etc., ii) individual housing loans, and iii) loans to financial institutions. The Government's response currently includes the broadest possible measures to respond to both existing and new loans. Following this press conference, Assistant Chief Cabinet Secretary Sasaki will be giving a briefing to members of the press at the Cabinet Office. Please inquire with him for further details.

Q&As

REPORTER: The other day the Administrative Vice-Minister of the Ministry of the Environment visited Fukushima Prefecture and requested that the remains of debris and waste materials contaminated with radiation that have been incinerated be buried in Fukushima Prefecture. The governor of Fukushima Prefecture has opposed this request. What is the Government's view of this situation?

CHIEF CABINET SECRETARY EDANO: With regard to the disposal of waste materials contaminated with radiation in Fukushima Prefecture, yesterday standards and guidelines were issued for polluted mud and sludge. For debris and rubble, the Government is seeking to issue guidance as quickly as possible, but this guidance must be decided based upon the opinions and wishes of the people involved. The Government's policy and guidance for debris is currently therefore under consideration.

(Abridged)

REPORTER: According to a number of press reports, the Office for Promotion of Medical Innovation in the Cabinet Office has apparently announced to Tohoku University that it will support a "Tohoku Medical-Megabank Initiative" of Tohoku University, which would seek to establish bases for tailored medical care that matches the requirements of each patient. What are the facts behind these press reports?

CHIEF CABINET SECRETARY EDANO: Yesterday, the team responsible for medical innovation held a meeting. In that meeting, the initiative by Tohoku University that you have just mentioned was explained from the perspective of medical innovation in Japan, and also from the perspective of reviving the Tohoku region as well as medical care structures in the disaster regions, in view of the fact that medical care in the Tohoku region is facing a very severe situation. The participants in the meeting were very positive and receptive to this initiative, although just how it could be supported and how it would be positioned by the Government has yet to be decided. However, towards the promotion of medical innovation and the restoration of the entire Tohoku region in a broad sense, the Government is taking the proposal by Tohoku University with the utmost seriousness. That is the current status.

REPORTER: In relation to that, Fukushima prefecture has decided to evaluate the impact of radiation on the residents over the next 30 years. Is there a possibility that this "megabank" initiative would incorporate such health checkups in the future?

CHIEF CABINET SECRETARY EDANO: This is a completely different issue to the medical "megabank" initiative that was proposed and explained in the medical innovation meeting yesterday, given the fact that in Fukushima Prefecture, as part of the response to the nuclear disaster, it is the responsibility of the prefectural and central governments to ensure the long-term health of residents. However, with regard to the actual implementation of such an initiative, there will be various ways it could be developed, and further consideration will be required on the specific measures, which remain at the moment in a state of fluidity.

(Abridged)

REPORTER: Yesterday in a press conference, Senior Vice Minister of Finance Sakurai criticized the second supplementary budget, or rather "supplementary budget 1.5," indicating that if the budget is not formulated in a comprehensive manner, it could lead to important items being delayed, which would mean that the budget itself would be meaningless. How do you view the concerns that by implementing a supplementary budget 1.5 as a second supplementary budget, you are actually delaying a third supplementary budget for full-fledged reconstruction?

CHIEF CABINET SECRETARY EDANO: First of all, I have not heard the comments of Senior Vice Minister Sakurai directly, so I do not think I should comment on them. With regard to the relations between the second supplementary budget and envisaged third supplementary budget that is expected to cover large-scale reconstruction, these two budgets are in totally separate dimensions and can be considered accordingly. As I have said on repeated occasions, while making every effort to execute the items included in the first supplementary budget, the Government has been amassing a variety of information at the Ministry of Finance and other ministries concerning the areas where budgetary allocation is insufficient and where budgetary allocation is urgently required. I think that everyone recognizes, however, the necessity to expedite to the greatest degree possible those items that would have an adverse impact on the disaster-affected people if not implemented in the near term, and if we were to simply wait for information to be collected. I believe that it is perfectly feasible for budget compilation work for these urgent and pressing items to be implemented, while ensuring that there is no impact on the separate budget compilation work for full-fledged reconstruction.

REPORTER: I believe that there are physical limitations in terms of manpower, so do you not recognize the possibility that spending time compiling the second supplementary budget could delay the work on the compilation of the third supplementary budget?

CHIEF CABINET SECRETARY EDANO: First of all, I believe that everyone recognizes that a large-scale supplementary budget for reconstruction will be necessary in the not-too-distant future. This will be a budget based on the report that will be received from the Reconstruction Design Council and also on the opinions on reconstruction received from the various local residents that the Government has been made directly aware of in the intervening period. Based on these, the Government will announce its budgetary policy, on the basis of which a decision and examination of the necessity for a supplementary budget will be implemented. The timing for the second supplementary budget, which is being compiled as a matter of urgency, may coincide with some of the considerations towards the third supplementary budget, but the timing of these two is ultimately different and the result is that the people responsible for budget compilation, particularly in the Ministry of Finance, are being required to engage in very demanding work over a long period of time, as these two budget compilation processes will run on from each other. However, given the hardship being faced by the disaster-affected people and local governments, the people responsible for budget compilation are understanding of the need to engage in continuous work and therefore I believe that the compilation of one budget will not be detrimental to the compilation of a further budget.

REPORTER: However, there are also opinions that the actual rate at which the first supplementary budget is being executed is rather slow. In a similar situation, is it the case that the budgetary allocations included in the second supplementary budget actually include items that can be fully executed before the third supplementary budget has been compiled and passed?

CHIEF CABINET SECRETARY EDANO: I think whether the budget can be fully executed and what items are urgently required are two separate matters. For urgent measures that cannot be implemented without further budgetary allocation, we are seeking to formulate a second supplementary budget as soon as possible, and the implementation of these budgetary allocations will accordingly be expedited. However, as it is likely that it will take time to spend the entire budget for such projects once they have been implemented, it was decided that a second supplementary budget was necessary as a means of implementing the items that were urgently required.

REPORTER: In some press reports yesterday, it was stated that consultations are underway on the issuance of reconstruction bonds as a means of supporting the government share of basic pension contributions and filling the shortfall of 2.5 trillion yen in fiscal resources. What is the actual current status of government deliberations on this matter?

CHIEF CABINET SECRETARY EDANO: I am aware that cross-party discussions are already underway, and given that this is a financial issue I believe that there will be some degree of liaison between the parties and the Ministry of Finance. In specific terms, however, we have not reached a stage where a policy decision can be made or instructions given on particular measures.

REPORTER: Reconstruction bonds are in principle for the purpose of reconstruction alone and using them to fill fiscal shortfalls would entail using them for something different to their original purpose. Do you think that you would be able to gain the understanding of the public for such a measure?

CHIEF CABINET SECRETARY EDANO: I am aware of the various press reports, but I repeat that we have not yet reached a concrete stage in consultations on fiscal resources for pensions or the issuance of reconstruction bonds, despite what has been reported. I know that various discussions are underway across the political parties and once a broad direction has been decided then I think there will be a report or further specific consultations.

REPORTER: What is your personal opinion on this matter?

CHIEF CABINET SECRETARY EDANO: As cross-party consultations are currently underway, I think I should avoid stating my personal opinions at this stage. Once a report is submitted or I am consulted on this matter, then I will give my own opinions at that time.