Press Conference by the Chief Cabinet Secretary (Excerpt)

JAPANESE

Q&As

REPORTER: I have a question concerning the stress tests on nuclear power stations and their status. In his response to questions in the Diet Budget Affairs Committee today, the Prime Minister has stated that the public is unlikely to be understanding if only the current rules are applied to the restarting of operations at nuclear power stations, indicating that the creation of new rules, including stress tests, are a premise for the restarting of operations at nuclear power stations. Minister Hosono has made a similar statement, so does this mean that unless power stations can pass inspection under these new stress test rules, approval will not be given to restart operations, including at Genkai Nuclear Power Station?

CHIEF CABINET SECRETARY EDANO: As the Prime Minister has indicated in his responses to Diet questions, the restarting of operations at nuclear power stations is being confirmed in accordance with current legal procedures and thorough checks being implemented by the Nuclear and Industrial Safety Agency (NISA). At the same time, in view of the accident in Fukushima, a certain degree of procedures and methods are required in a wide sense that will lead to peace of mind for the public, including in the approaches taken by NISA and the Nuclear Safety Commission (NSC). Naturally, it will take some time for fundamental approaches and organizational restructuring to be implemented following the report from the Investigation and Verification Committee on the Accidents at the Fukushima Nuclear Power Station of Tokyo Electric Power Company (TEPCO), but it is likely that it will be necessary to create measures, taking the stress tests being implemented by countries in Europe as a source of reference. In addition, with regard to the point concerning the necessity for these tests, if they can be implemented and results confirmed in the short-term, under the premise that safety is confirmed in the current wider framework , Ministers Kaieda and Hosono are currently considering what means are required to further boost peace of mind for the public.

REPORTER: On June 18, the Government requested that power stations in general be restarted. However, are we to understand that this request has now been put on hold pending further coordination between the two ministers you have just mentioned?

CHIEF CABINET SECRETARY EDANO: The Minister of Economy, Trade and Industry made the request that safety be stringently confirmed, based on current legal procedures. On that premise, the mayor of Genkai Town has shown his understanding for the restarting of operations at the power station, but consideration is currently being given to any further measures that could be taken to give local residents further peace of mind.

REPORTER: What I did not understand in the Prime Minister's response to Diet questions was his statement that understanding could not be gained under the standards currently stipulated by law, and that such standards were insufficient. Does this mean that the current request that was issued on June 18 based on current standards for power stations to be restarted is still valid and it is still possible for power stations to be restarted under these standards, and that the different measures currently being considered are nothing more than an additional means of improving safety and providing further peace of mind for residents?

CHIEF CABINET SECRETARY EDANO: It is going a little bit too far to say that the measures being considered are "nothing more than an additional means." Under the current legal procedures various measures can be implemented, but given the accident in Fukushima the Government is currently seeking ways to give broader peace of mind to local governments and residents.

REPORTER: So does that mean that the Government is still at the stage of searching for such means, and that until such standards are decided, it will still be possible to restart operations at nuclear power stations?

CHIEF CABINET SECRETARY EDANO: The Government is still examining the various possibilities and a conclusion has yet to be reached.

REPORTER: On a related note, tomorrow you are scheduled to meet with Governor Furukawa of Saga Prefecture. What kind of explanation do you intend to provide to the governor?

CHIEF CABINET SECRETARY EDANO: Arrangements are currently being made for me to meet with Governor Furukawa when he visits the Prime Minister's Office tomorrow. The governor has already had discussions with Minister Kaieda and based on those discussions, if possible I would like to talk with the governor about the possibilities the Prime Minister's Office and Ministers Kaieda and Hosono are currently considering.

REPORTER: You have just stated that at the current point, possibilities are being examined for further standards and yet the request to restart nuclear power stations was issued on June 18. It is extremely difficult to understand why, therefore, you are searching for such new possibilities in actually creating new conditions for restarting of operations. I believe local people would also find this difficult to understand. What are your views on this?

CHIEF CABINET SECRETARY EDANO: Based on current legislation and also on the accident in Fukushima, NISA is currently engaged in stringent checks of power stations and has confirmed their safety thoroughly. Minister Kaieda thus issued the request to restart power stations on the basis that their safety had been checked by NISA. However, while there are some local governments and people who showed their understanding of this at a very early stage, including the mayor of Genkai town, it is a fact that there are others who still harbor doubts about the safety of nuclear power stations. Frankly speaking, I too believe that it is necessary to make further efforts to devise means of gaining broad understanding in a clear way, thus demonstrating that other nuclear power stations will not experience an accident like that which happened in Fukushima. The considerations currently underway are part of that process.

REPORTER: Did the Prime Minister's Office have no involvement in the issuance of the request by Minister Kaieda on June 18 to restart operations at nuclear power stations?

CHIEF CABINET SECRETARY EDANO: No, in a broad sense the Prime Minister's Office was aware of the various actions of the minister and NISA. Therefore the Prime Minister is not saying that the issuance of the request itself was wrong, neither does the Prime Minister's Office hold such an opinion. While premised on the request that was issued, what we are currently doing is seeking to examine if there are further efforts that can be made to devise ways of gaining understanding and creating peace of mind about safety.

REPORTER: On a related note, tomorrow you will be meeting the governor of Saga Prefecture. The governor has expressed his wish to meet with the Prime Minister. Will you be acting on the Prime Minister's behalf when you meet the governor tomorrow and the Prime Minister will not actually meet him, or is it expected that the Prime Minister will meet the governor following the outcome of your meeting?

CHIEF CABINET SECRETARY EDANO: It has not yet been decided whether I will meet with the governor tomorrow and I have received a report that arrangements are currently being made. If we do meet, then based on the discussions that take place, it will then be a question of at what stage it would be best for the governor to meet the Prime Minister. This is not something that requires frequent meetings and the governor himself is a very busy person, but consideration will be given to a meeting on the basis of the request from the governor himself. The outcome is therefore still undecided.

REPORTER: On a different note, the Liberal Democratic Party (LDP) has compiled a supplementary budget for post-disaster reconstruction amounting to approximately 17 trillion yen. How does the Government intend to incorporate this draft budget into the draft that has been compiled by the Government?

CHIEF CABINET SECRETARY EDANO: First of all, the policy for the second supplementary budget has been decided and now work is underway to finalize specific figures. The second supplementary budget covers only items that are urgently required, and every effort is being made to ensure that it can pass the Diet at the earliest juncture. Following that, based on the recommendations of the Reconstruction Design Council, the Government is in the process of compiling a basic policy, with a view to completing it at the end of this month. This basic policy will lead to further budgetary allocation for specific reconstruction projects. The budget proposal from the LDP is something that we should refer to as a source of valuable recommendations when engaging in the compilation process for the basic policy and also see if their recommendations can be incorporated into specific budgetary items.

REPORTER: On a related note, in both the recommendations of the Reconstruction Design Council and those of the LDP, fiscal resources are ensured through the issuance of reconstruction bonds. It is also suggested that a method of dealing with the costs relating to reconstruction would be to raise income tax or corporation tax to a certain degree. Both you and Deputy Chief Cabinet Secretary Sengoku seem averse to the concept of raising consumption tax. What are your thoughts concerning fiscal resources from reconstruction bonds?

CHIEF CABINET SECRETARY EDANO: This is something that has been agreed upon by the three major parties in the process of compiling the third supplementary budget. The basic act itself is based on a joint proposal by the three parties and therefore the third supplementary budget will also be finalized based on consultations with the two major opposition parties.

(Abridged)

REPORTER: Returning to the issue of nuclear power stations, you have just indicated that the Prime Minister's Office was broadly aware of the request issued by Minister Kaieda on June 18 to restart operations at nuclear power stations. Does this mean that Minister Kaieda provided a report to you, which you duly approved, or was the process of communication conveyed up to the Prime Minister?

CHIEF CABINET SECRETARY EDANO: As I am sure you are all aware, the operations at the Prime Minister's office could not function if all matters were reported by ministers to me or the Prime Minister on an individual, case-by-case basis. As the Prime Minister indicated in his responses to Diet questions today, significant policy measures and their direction are reported in the ministerial roundtable discussions following Cabinet meetings. Based on reports from ministers in this formal meeting structure, if necessary further working-level and specific reports are made by officials.. Through such a process, I myself is to some extent aware of the request issued by Minister Kaieda.

(Abridged)

REPORTER: If I may return to the subject of nuclear power, I'm having a little trouble understanding this issue. So ultimately, you are saying that a request to restart the nuclear power stations may be overturned depending on the outcomes of the stress test. Is that correct?

CHIEF CABINET SECRETARY EDANO: First of all, it is not my understanding that a decision was made to carry out stress tests for the interim period, including, for example, stress tests of the Genkai nuclear power station. In the mid- to long-term, there will be a drastic review bearing in mind the findings, etc. of the Investigation and Verification Committee for the incident. Or there will be a review which will include organizational reform, in which government ministries and agencies will be realigned. Furthermore, what Minister Kaieda announced today, i.e., what the Prime Minister and others agreed upon and what Minister Kaieda reported, is that we will be developing an evaluation scheme based on stress tests. In particular, with regards to the Genkai nuclear power station, which is the specific focus of the discussions right now, in view of the mid- to long-term policies moving forward while bearing in mind the safety confirmation made by NISA the other day, we are studying whether there are any steps which can be taken to obtain a wider public understanding on safety.

REPORTER: Including the stress tests which were announced today, I believe the Government has so far announced a total of around three nuclear safety measures. However, I believe none of the measures include counterterrorism measures for nuclear power stations. Will the Government be considering any counterterrorism measures?

CHIEF CABINET SECRETARY EDANO: Regarding this issue, also bearing in mind the situation of the incident at the TEPCO's Fukushima Daiichi Nuclear Power Station, on the occasion of the Ministerial Meeting Concerning Measures Against Crime on May 13, I instructed the relevant ministries and agencies to be further careful in not leaving anything out. Under the system, the police, and in some cases and as necessary, the Self-Defense Forces (SDF), are mobilized and respond in partnership with each other. However, please understand that due to the nature of this issue, I cannot go into very many details about indeed how we are taking what sort of measures, as that will defeat the purpose of countering terrorism. That is to say, counterterrorism measures are included in the general safety measures which the Government in particular must carry out directly in full. Therefore, please understand that counterterrorism measures are not included in the nuclear safety measures.

REPORTER: Related to this subject, there is also a rumor that the LDP is considering revising the law to enable the SDF to defend nuclear power stations. What is the view of the Government on this?

CHIEF CABINET SECRETARY EDANO: Even under existing laws, the SDF are able to mobilize during contingencies which cannot be dealt with by the capabilities of the police. Furthermore, the police and SDF even conduct joint trainings and other exercises bearing in mind these situations. I believe this is not so much a legal issue but more an issue of, how should I say, operations or advance preparations. Since this idea was proposed, if it is discussed at the Diet, the Government would like to carefully examine its contents.

REPORTER: With regards to the stress checks, Minister Hosono said at the Budget Committee meeting today that...

CHIEF CABINET SECRETARY EDANO: It's "stress test." Stress checks and stress tests are different apparently.

REPORTER: Minister Hosono said that he thinks NISA will hold off on making a decision about the operation of Genkai Nuclear Power Station, at least until the Nuclear Safety Commission (NSC) comes out with its opinions on the stress tests. This is not the same as what you were referring to in terms of developing an evaluation scheme?

CHIEF CABINET SECRETARY EDANO: Although I do not remember the responses given by all the ministers at the meeting with complete accuracy, I believe Minister Hosono also said that the NSC will be asked to check or share its opinions in some form or another. I was also told about this in advance. In other words, existing laws provide that the NSC seeks opinions on general standards, or to say it the other way around, that the NSC is not involved in individual items. Despite that being the case, Minister Hosono said something to the effect that bearing in mind the variety of events which have taken place to date, he believes it is also necessary to seek the opinions of the NSC on Genkai nuclear power station. Perhaps there is slight confusion with the discussion on stress tests. I apologize, perhaps I, too, am confused with them. My understanding, too, is that the NSC's involvement is being sought with regards to the discussion on full-fledged stress tests, as well as the current efforts to study whether anything can be done to further increase the sense of reassurance concerning Genkai nuclear power station. However, I believe we are still in the midst of studying whether or not to carry out pre-stress tests so to speak and so on.

REPORTER: Watching the broadcast of the Budget Committee of the Diet today made me feel that most of the people did not understand the situation concerning the requests to restart nuclear power stations. While the nuclear power stations put under inspection were declared safe on June 18, the Prime Minister has said that perhaps the standards used to inspect them were not sufficient. Don't you think that this gives the residents in the vicinities of the nuclear power stations a sense of insecurity?

CHIEF CABINET SECRETARY EDANO: I think that is one way of looking at it. To repeat myself, under the existing system, NISA is conducting stringent safety checks. Requests were made to restart Genkai Nuclear Power Station because it has been assessed as safe. Even so, I think that you can understand the general stance that we are working hard to take even greater care than before.

REPORTER: The Nikkei average closed at 10,082.48 yen. This is the first time in a long while that the average has been above the 10,000-yen level. It seems the market is gradually returning to pre-quake levels. Could you tell us how the Government views this?

CHIEF CABINET SECRETARY EDANO: I believe I should not comment directly on behalf of the Government on the specifics of the market indices. However, as I have mentioned previously, despite the various impacts that the earthquake had, companies are working very hard, and the whole of Japan is truly recovering or responding to the disaster at a faster pace than we initially predicted. While I think that the situation for the whole of Japan is reflected in stock prices, the affected areas or enterprises that are in some way linked to the affected areas are still in the same difficult situation that they found themselves in immediately after the disaster struck. We are strongly aware that there are quite a number of such areas, enterprises, or industries. Moving forward, in tandem with Japan's overall recovery, we will work in a focused manner on a response for the regions, businesses, and industries that have borne the brunt of the disaster and for which repercussions still remain.

REPORTER: With regard to relief funds, it was decided that the second round of distribution will be provided to the residents in eight towns and villages on a per-capita basis. Could you tell us your views on this, and the Government's outlook on compensating for the delay in distribution of relief funds, if any?

CHIEF CABINET SECRETARY EDANO: First, about the relief funds - with regard to the fact that the final decisions are being undertaken by the local governments and related bodies, I think that we should respect the independent decisions made by each government while staying within certain boundaries. I feel it is very unfortunate that the overall distribution of relief funds has not always taken place in a speedy manner. The national government is doing its utmost in terms of creating an overall structure of distribution, and local governments outside the disaster-affected regions are cooperating by dispatching staff to the affected municipalities. The Ministry of Internal Affairs and Communications (MIC) has also intervened and is making every possible effort to facilitate this process. There are also more than a few local governments that suffered so much damage that they do not have the capacity to even receive support from staff from other regions to begin with. Although local governments are working very hard amidst such circumstances, physical barriers remain. To be honest, with regard to the proper distribution of relief funds and other forms of aid to residents following wide-spread disasters, such as this one, I think that we should not limit ourselves in the future to a system that works through the local governments, but come up with new ideas. An issue for the future would be to consider how we could take advantage of the strengths of the private sector, by for instance, receiving the cooperation of life insurance companies which have managed to pay insurance money much quicker than we paid relief funds. However, for the time being, our situation remains as what I described earlier. The Government will provide as much support as it can, and will continue to exert its best efforts while taking into consideration requests from respective local governments.