Press Conference by the Chief Cabinet Secretary (Excerpt)

JAPANESE

(Abridged)

Q&As

REPORTER: In today's Cabinet meetings and ministerial roundtable discussions, has the Prime Minister given any instructions relating to the third supplementary budget?

CHIEF CABINET SECRETARY EDANO: I believe I provided a response to a similar question in this press conference yesterday or the day before.

REPORTER: Have any specific instructions been given?

CHIEF CABINET SECRETARY EDANO: Given that we are in the midst of advancing considerations for the Basic Policy on Reconstruction, the Prime Minister expressed his wish that the various ministries involved at the working level should continue to exert efforts.

REPORTER: Does this mean that the third supplementary budget will be compiled under the administration of Prime Minister Kan?

CHIEF CABINET SECRETARY EDANO: In his comments today the Prime Minister stated that while it would not be good to invite any do for there to be misunderstanding concerning political moves, it is important that administrative and working level preparations continue to be advanced forward.

(Abridged)

REPORTER: With regard to the stress tests that were announced yesterday, the implementation of these stress tests that have been created by three ministers as a new measure could result in the halting of operations at nuclear power stations, which raises questions from some quarters about the implementation of the procedures that are not in line with existing legally stipulated measures. Similar concerns were raised at the time when operations were halted at Hamaoka Nuclear Power Station. As a lawyer yourself, how do you think about the current decision?

CHIEF CABINET SECRETARY EDANO: I believe that a legal basis is required in order to issue and enforce orders for members of the public to do something or to refrain from doing something. However, among the various administrative procedures and processes that exist, there are a number of those that do not rely on legal force or legislation, for example Cabinet decisions or the administrative authority wielded by various ministers. Without these various actions it would not be possible to engage in government administration. In this situation in particular, where there is a high degree of mistrust and unease among the public concerning nuclear power, I recognize that we have implemented measures that are permissible under the current legal framework.

REPORTER: At the very least did you not aim to receive Cabinet approval for this decision?

CHIEF CABINET SECRETARY EDANO: To implement a measure with legal force would require a legal basis, but with regard to what can be done administratively without recourse to legal force, I do not think it is a case of determining that a measure has more or less binding power depending on whether or not it has been approved by the Cabinet. If a particular measure would affect all Government ministries and agencies, then I believe a Cabinet decision or Cabinet approval would be required. However, in this case, the administrative ministers concerned, namely Minister Kaieda, who has legal authority over this matter, Minister Hosono, whose jurisdiction relates to safety, the Prime Minister and I were all in agreement on this policy, and I believe it was therefore sufficient for us to clearly state that we would proceed with this new measure.

REPORTER: I have one item for confirmation, following on from yesterday's press conference concerning the stress tests for nuclear power stations. With regard to the Nuclear Safety Commission's (NSC) role of assessing the methods devised by the Nuclear and Industrial Safety Agency (NISA) and providing advice on their appropriateness, I believe that such an advisory role is within the NSC's responsibility to date. However, for the NSC to now be able to say that the content of the stress test was valid and appropriate and it is therefore acceptable to restart a power station, is not a power that the NSC has possessed to date. Therefore, are we to assume that the ultimate decision on whether or not to restart a power station would remain with the Government?

CHIEF CABINET SECRETARY EDANO: Yes, the situation is as you rightly point out. The NSC is at the end of the day an advisory body and under these new rules will provide advice concerning whether the assessment was appropriate in technical terms. In actual fact the tests will be implemented by the power station operator and the results will first be confirmed by NISA, after which the NSC will be asked to provide advice on the technical validity of the tests. This is the way the new procedures and rules will function to determine whether safety has been confirmed, and these rules were decided by the four relevant ministers. As Minister Kaieda is the minister with legal jurisdiction over this issue, it is under his authority that the tests will be carried out.

REPORTER: There have been some critical comments from local governments where nuclear power stations are located, noting that the difference between primary and secondary assessments is difficult to understand and without fully understanding the situation there is not much point in implementing the assessments. How does the Government view such comments coming from local governments?

CHIEF CABINET SECRETARY EDANO: At the point when the announcement was initially made yesterday, I believe that it is probably natural for such opinions to be voiced. As a starting point, yesterday the Government announced its political, administrative and unified policy on this issue. Based on that policy, the specific format for the assessments will be proposed based on the expert and technical opinions of NISA, with advice from the NSC, after which assessments will be implemented. We will be able to disclose the format for these tests in the not-too-distant future and before the format is announced it will be difficult to form a judgment on the tests, which is why I think it only natural that such criticisms have been made at this initial stage. The Government is not in a position to order the NSC to expedite its work processes, and NISA is in the process of formulating a proposal that should be completed as early as possible so that it can be confirmed all at once by the NSC.

REPORTER: Given the difficulty in creating an outlook for power supply and demand due to this measure, economic and business circles in particular are expressing their concerns. How does the Government view such concerns? Also, does the government intend to implement usage restrictions in the services areas of other power companies other than Tokyo Electric Power Company (TEPCO) and Tohoku Electric Power Company?

CHIEF CABINET SECRETARY EDANO: I believe I also stated yesterday that during the summer months this year, thanks to the various efforts of businesses and power companies, as well as the cooperation of the public in conserving electricity, it will be possible to overcome supply and demand issues. Work is ongoing to create specific figures on the basis of careful and precise examination so that these can be explained to the public. Furthermore, with regard to mid- to long-term power supply and demand, although this does not supersede priorities concerning the safety and security of nuclear power stations, another important Government responsibility is to ensure a power supply. It is for that reason that we are advancing with preparations to enable a detailed explanation at the earliest possible juncture concerning the power supply and demand outlook, incorporating also the primary and secondary assessment mechanisms.

REPORTER: Nippon Keidanren has commented that if the uncertainty over power supply continues, there is a danger that the overseas relocation of companies will continue to escalate. What is your response to such observations?

CHIEF CABINET SECRETARY EDANO: The Government must make maximum efforts to ensure that the overseas relocation of companies due to concerns over power supply and demand does not advance further.

REPORTER: How do you intend to respond specifically to such concerns?

CHIEF CABINET SECRETARY EDANO: As I have just stated, preparations are being made to provide a more detailed power supply and demand outlook, although supply and demand will not supersede safety and security matters.

REPORTER: On a related note, in the meeting of the Council on the Realization of the New Growth Strategy, Minister for National Policy Gemba stated with regard to power supply and demand that the Prime Minister would make a statement in the near future. Does this mean that the Prime Minister will be holding a press conference to explain the power supply and demand outlook that you have just mentioned?

CHIEF CABINET SECRETARY EDANO: Details are currently being worked out and examined closely with a view to making two explanations. The first is an explanation based on detailed examination of the situation, which I have just mentioned. The second is an explanation concerning an overall direction. At the same time as proceeding with detailed examination, the question of at what point the details can be explained and whether it would be better for this explanation to come from the Prime Minister is still undecided. However, coordination is currently being implemented concerning whether the overall direction should be laid out by the Prime Minister, with Ministers Gemba or Hosono providing further details.

REPORTER: With regard to the issue of radioactive cesium being detected in cattle from the city of Minamisoma in Fukushima Prefecture, it is supposed to be the case that all cattle are being examined. How will the Government respond to this issue going forward?

CHIEF CABINET SECRETARY EDANO: This involves issues of jurisdiction between the central and prefectural governments, and Fukushima Prefecture has indicated its intention to implement examinations of all beef cows from the planned evacuation areas and emergency evacuation preparation areas prior to their shipment. Based on the stated intentions of Fukushima Prefecture, the Ministry of Agriculture, Forestry and Fisheries (MAFF) is providing maximum cooperation and the two sides are engaging in consultations, with a view to ensuring consumer trust.

REPORTER: Will examinations be implemented for other livestock or food products?

CHIEF CABINET SECRETARY EDANO: I touched on this point yesterday, but based on the causes of the current incident and the situation surrounding it, experts from MAFF and the Ministry of Health, Labour and Welfare (MHLW) will engage in consultations with the prefecture to confirm whether or not there are similar cases. I do not think there will be the exactly same cases for other foods as there are various food production processes involved. If necessary a response will then be surely made.

REPORTER: I have two questions. A moment ago, in relation to the stress tests and NSC, you said that the operation of the nuclear power stations will ultimately be decided in consultation with the four ministers, with Minister Kaieda exercising authority. If the NSC were to decide that the assessments made by NISA and the nuclear power station operators are not valid, is there a chance that the Government will reverse the NSC's decision?

CHIEF CABINET SECRETARY EDANO: If you consider what the residents would think if such an action was taken, I believe the answer is clear.

(Abridged)

REPORTER: I would like to ask a question related to the earlier question about the discretion of nuclear power station operators. In relation to the stress tests, I was wondering, if a nuclear power station meets the existing safety standards but does not meet the new standards which were introduced, how will its status be determined? Will this be done within the scope of the already broad discretionary power given to the Minister of Economy, Trade and Industry by the Act on the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors and other legislation? Or is your understanding that the minister's discretionary power as conventionally envisioned will be significantly broadened? Or will there be a little more administrative guidance involved?

CHIEF CABINET SECRETARY EDANO: Between the nuclear power stations that are currently in operation, in other words the case of the secondary assessment, and the nuclear power stations that are suspended and will be restarted - the case of the primary assessment - technically speaking, there may be slight differences in their legal statuses. However, as I recall, I believe it is not a legal stipulation that the agreement of the communities is obtained when restarting a nuclear power station, for example. In a sense it is natural that people in the surrounding areas have various concerns about nuclear power generation. In this context, in the absence of this legal stipulation, efforts have been made from before to obtain the de facto understanding and approval of the communities, with the understanding that otherwise things will not move forward. In this sense, the outcomes of both the primary and secondary assessments will be shared with the residents and people. It was also the case previously that matters related to nuclear power did not move forward without having some level of de facto understanding of the communities, and I envision that much will be the same moving forward as the residents or the local governments of the surrounding areas examine and evaluate the assessments to be made. At the very least, I believe the explanation I have just made is understandable from the perspective of the political and administrative discussions.

REPORTER: Then, judging and taking into account that the residents' endorsement will not be obtained if a nuclear power station does not meet the new standards, will the Minister of Economy, Trade and Industry be making a decision?

CHIEF CABINET SECRETARY EDANO: The policy on safety assessments was established because we felt that a more careful process was needed to obtain the understanding of the residents and for residents to have confidence that the nuclear power stations are safer and more secure. The outcomes of the safety assessments will be shared with and disclosed to the residents. And naturally, it is to be expected that the residents, community members, and local leaders, among others, will respond accordingly. When that time comes, I believe there will be no change to our traditional understanding that matters related to nuclear power will not make any progress without obtaining the understanding of the communities.

REPORTER: You are saying then that the latest standards do not so much directly affect the Minister of Economy, Trade and Industry's decision to exercise authority. Rather, the Government's authority is being somehow indirectly bound by this need to obtain the understanding of the residents. That is how I interpret your explanation. Is my understanding correct?

CHIEF CABINET SECRETARY EDANO: In any case, this is not a legal matter. It is not a matter which directly relates to the rights and obligations of the people and is not a matter which legally binds the government. The relevant ministers agreed to firmly carry out this process to further reinforce the sense of assurance. In this sense, I believe the discussion on the legal status and the discussion on its social meaning are two slightly separate dimensions.

REPORTER: Perhaps I am being overly detailed, but while I believe this matter does not relate to the rights and obligations of the people, doesn't it relate to the rights and obligations of the electric power companies which wish to operate the nuclear power stations?

CHIEF CABINET SECRETARY EDANO: In any event, it has been the case that even if a company wants to operate a nuclear power station, this cannot be done unless the understanding of the local leaders and other members of the local government is obtained, not because of the law but as a matter of practice. This has not changed with the introduction of the safety assessments. It was as such that the Government announced that it believes it needed to carry out this process to obtain the peoples' understanding.

REPORTER: I believe the NSC will play quite a large role in the primary and secondary assessments. As part of the review of the administration of nuclear power, is it envisioned that in the future the NSC will not only continue to be an advisory body but that its functions will also be strengthened?

CHIEF CABINET SECRETARY EDANO: As I also responded yesterday, the relevant ministers, too, agree on the need to review the administration of nuclear power quite drastically, and in a sense, I believe the public, too, has pretty much a consensus on this. In this context, there is first the issue of the status of NISA. As I also said yesterday, NISA, and in particular, those working at the scene, have been working hard, especially since the earthquake disaster, to prevent a similar incident from reoccurring. However, in terms of their organizational status, there is a discussion that NISA should be separated from the Ministry of Economy, Trade and Industry, which also promotes nuclear power. The other issue is that in a variety of meanings the functions of the NSC need to be further strengthened as a regulatory agency. As to how these two items will be integrated and how the agencies will be organized, these are indeed issues which I believe need to be examined over some length of time, and in some cases, bearing in mind the verifications of the investigation and verification committee. Regarding the specifics, such as will the NSC be strengthened or will the NSC and NISA and other agencies be realigned comprehensively, these are matters to be discussed moving forward.