Press Conference by the Deputy Chief Cabinet Secretary

JAPANESE

Opening Statement by Deputy Chief Cabinet Secretary Fukuyama

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: I would like to report to you the outcomes of the "Review Meeting on Power Supply and Demand" that was held today. Based on the changes in the situation since the Headquarters for Emergency Response for Power Supply and Demand drew up countermeasures for power supply and demand during the summer months, in today's meeting the members confirmed the latest outlook for power supply and demand this summer, and based on that outlook engaged in discussions on supply and demand measures mainly for western Japan, from the Hokuriku and Kansai regions westward. If the five electric power companies in western Japan could restart their nuclear power stations in line with the schedule for completion of regularly scheduled inspections, it was expected that they would have reserve power of around 10%. However, if the nuclear power stations could not be restarted, the reserve power ratio for the five power companies in western Japan would fall to minus 2.3%. In response to this situation, the various power companies have engaged in various diligent efforts to boost supply capacity, including changes to the maintenance schedules for hydraulic and thermal power stations, and increased purchase of power from sources that are generating their own power. As a result the outlook to date has been based on an assumption that the reserve power rate for the five power companies in western Japan would be 1.7% and that in the 60Hz region as a whole the reserve power rate would be 2.1%. However, due to the halting of operations at the Unit 1 reactor of Oi Nuclear Power Station of Kansai Electric Power Company on July 16 and the further stoppage of operations at Misumi Thermal Power Station on July 18, both due to operating troubles, the reserve power rate for the five power companies has fallen to minus 1.2%, with the reserve power rate for the 60Hz region as a whole now standing at 0.0%. In particular, in addition to the halting of operations at the Unit 1 reactor of Oi Nuclear Power Station, Kansai Electric Power Company is expected to halt operations at the Unit 4 reactor of Takahama Nuclear Power Station and the Unit 4 reactor of Oi Nuclear Power Station in the near future for regularly scheduled inspections. In addition, given the halting of operations at Misumi Thermal Power Station, in the event that Chugoku Electric Power Company would not be able to make up the shortfall in power supply, the power reserve rate for Kansai Electric Power Company will fall to minus 6.2%. As the power reserve rates at other power companies are in positive figures, they are expected to respond to cover the shortfall, but it is expected that the power supply and demand situation in the Kansai Electric Power Company service area in particular faces a very severe situation. It is for this reason that Kansai Electric Power Company and others have been requested to make efforts to further increase their supply capacity, but it will also be essential to make a response on the demand side. The Government has decided to request that the whole of the service area of Kansai Electric Power Company should aim to achieve power saving of more than 10%. In addition, for other areas in western Japan outside the service area of Kansai Electric Power Company, although no specific figures will be set, the Government will seek to request that reasonable power saving measures be implemented, including efficient use of lighting and air conditioning, etc. This is a measure that will cause great inconvenience to electricity users, but through cooperation from power companies to boost power supply capacity and from users' efforts to save power, we aim to avoid other measures that would have a greater impact, including planned power outages and electricity usage restrictions based on the Electricity Business Act. We would therefore ask for the understanding of the public and power users. Naturally, the Government will also take the initiative in efforts to conserve energy, including requests by the various ministries and agencies to the various areas under their jurisdiction and through power saving measures at regional bureaus of central government bodies. Efforts will also be made to minimize the impact of power saving measures on economic activities and on public facilities, such as hospitals.

Q&As

REPORTER: What is the reason you have been able to avoid electricity usage restrictions on this occasion?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: As I have just mentioned, Kansai Electric Power Company and others have been requested to make further efforts to boost power supply capacity. In addition, and again as I have just mentioned, the public and commercial-scale users will also be requested to achieve a power saving rate in excess of 10%. Through these efforts we expect to be able to avoid planned power outages and this is the reason the decision was made.

REPORTER: What is the outlook for the restarting of operations at Oi Nuclear PowerStation and Misumi Thermal Power Station?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: The Unit 1 reactor of Oi Nuclear Power Station is currently suspended for regularly scheduled inspections, and once preparations have been completed for restarting operations it will be subject to a primary assessment, including the stress test that has been discussed recently. Therefore I am not in a position to say specifically when operations will be restarted. In addition, with regard to Misumi Thermal Power Station, I have spoken with the Agency for Natural Resources and Energy (ANRE) and I am informed that a request has been issued for operations to be started as soon as possible and technicians and other staff at the power station are being mobilized towards restoration of operations at the earliest juncture. We are not at a stage however when a specific date can be given for the restarting of operations.

REPORTER: Will it be possible to restart operations during the summer?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: Maximum efforts will be made towards that end.

REPORTER: Kansai Electric Power Company has already issued a request to users to implement power saving of 15%. Is the request issued by the Government in any way different from the request already in effect by Kansai Electric Power Company?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: I am aware that Kansai Electric Power Company has already issued a request to users to implement power saving of 15%. On this occasion, the Government has issued a target for power saving after making requests for cooperation to the Union of Kansai Governments and other bodies, and the Government will do everything it can to provide full support and cooperation for such power saving measures.

REPORTER: Does the Government's request represent an additional 10% power saving?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: No, it is not a request for additional power saving.

REPORTER: In relation to nuclear power generation, could you tell us about the outlook for deliberations in the Diet concerning the approval of nuclear power safety agreements respectively with Vietnam, Jordan, Russia and the Republic of Korea?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: This is a matter for Diet deliberations and should be left to the Diet to respond to.

REPORTER: In which case, I will rephrase my question. With regard to the export of nuclear power generation technology to Vietnam, which has been one of the achievements of the Kan Administration, what will become of such exports, particularly given the fact that the accident at TEPCO's Fukushima Daiichi Nuclear Power Station has occurred? What is the Government's view on this matter?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: When one of the senior government leaders of Vietnam visited recently, I attended the meeting together with the Prime Minister, in which it was noted that this is an issue that should be carefully discussed and considered between the two countries.

REPORTER: So, can we understand that the Government is actively considering the matter?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: No, it is the case that the two countries agreed to carefully discuss and consider the issue, in light of the recent nuclear incident.

REPORTER: I have a question concerning the restrictions on usage of school yards in Fukushima Prefecture. Today in a speech in the study group of the House of Representatives Standing Committee on Education, Culture, Sports, Science and Technology, former Special Advisor Toshiso Kosako stated, with regard to the Government's policy on implementing restrictions, if annual cumulative exposure to radiation reaches 20 mSv that this level is far too high and that it should be lowered to below 5 mSv. There also seems to be an intention to call him as a witness to testify to the Diet on this issue. What is the Government's view of this matter?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: I have been responsible for this issue from the start. The Government has never once said that a level of 20 mSv is acceptable. What the Government has said is that the figure of 20 mSv is a guideline and every effort should be made to reduce radiation levels. There has never been an intention to indicate that this is an acceptable level. At the same time, as you have mentioned, prefectural and municipal governments have been making efforts in schools to remove the layer of topsoil from schoolyards and have also been engaged in decontamination activities. With regard to the deliberations on the second supplementary budget in the Diet, the decontamination of topsoil, as well as parks and school commuting routes, and the provision of dosimeters to school children have all been provided with budgetary allocation. In this way the Government is doing everything it can to control the exposure to radiation in environments that are closely related to children's activities. As I have already mentioned, decontamination efforts at schools are being implemented with the aim of ensuring that radiation exposure in school yards is less than 1 mSv annually. I am not aware of exactly what Mr. Kosako has said, but the Government's stance of seeking to reduce children's exposure to radiation to the greatest degree possible has not changed and we are aiming to achieve the lowest radiation levels as much as possible. It is definitely not the case that Mr. Kosako is saying the limit should be below 5 mSv and the Government is saying that a level of 20 mSv is acceptable. In reality the levels of radiation are already falling and the Government will continue to make every effort to ensure that children's exposure to radiation can be reduced.

REPORTER: I understand that the Government is working hard, but actually the children's parents and guardians in Fukushima Prefecture are extremely anxious, and the essence of what Professor Kosako was saying is that in that sense the Government should lower the dosage limit and set clear targets in order to proceed with countermeasures and reduce the level of anxiety. Will you not consider slightly more in-depth solutions in this area?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: We have already actually decided to aim for under 1mSv per year in schools, and under those conditions we are giving all of the teachers their own dosimeters, and we know that the teachers who are involved in the same activities as the children are mostly under 1mSv per year. So in that overall context, we are making every possible effort to reduce the dosage the children are exposed to, including on school commuting routes and in public parks as I mentioned earlier. I do not understand very well what Professor Kosako is saying, but all we are saying is that we will continue to make every possible effort and ask for the understanding of the prefecture and all of the children's parents and guardians.

REPORTER: My question relates to the electricity supply in Tokyo. It is reported that in the areas served by the Kansai Electric Power Company the reserve rate is minus 6.2%, but do you anticipate power cuts this summer and, hypothetically speaking, in the case that you do anticipate them please tell us how you are conducting the simulations?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: The Government seeks to make the utmost efforts to ensure no power cuts occur, and that is how we arrived at today's result. We think that the current situation, including the trouble at the Oi Nuclear Power Station and the Misumi Thermal Power Station is extremely unfortunate, but as I said earlier we have reached our current decision after taking that situation into account. I think you will understand that those measures are being taken because we wish to avoid power cuts if at all possible.

REPORTER: In today's Review Meeting were there any debates, or opinions expressed, or opinions exchanged about what to do if power cuts actually occur?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: We said we wanted to avoid power cuts, and this was the decision we reached.

REPORTER: My question relates to power saving. Now people in the Kansai region are also going to have to save power, and in regard to Oi and then also Misumi, I do not know when the stress tests for Oi Nuclear Power Station will be carried out, and given the current situation in which it is still completely uncertain when the station will resume operations, unsurprisingly from the business community there are an increasing number of anxious voices saying that they cannot stop overseas companies from moving out of Japan. How is the Government responding to this situation?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: We are requesting the Nuclear Safety Commission (NSC) to consider the stress tests now, so regarding this matter the Government would like to wait for its result before proceeding. We intend to respond in a way that allows stable economic activities, but of course the reason that we did not take strong measures like those in the areas served by Tokyo Electric Power Company (TEPCO) and Tohoku Electric Power Company is that we wanted to minimize the impact on economic activities. Another point is that of course it is extremely important to avoid the risk of peak power, so we are asking all of the citizens to cooperate by saving power to prevent that from happening. With regard to the two current cases of trouble that I mentioned earlier, we decided today's measures because we want to ask for best efforts to ensure that we can somehow make it through this summer. Therefore, we would like to receive the understanding of everyone in the business community, while for our part we are seeking to provide thorough explanations to keep the impact on economic activities to a minimum and continue to seek understanding.

REPORTER: With regard to damages incurred as a result of liquefaction, the Prime Minister commented in response to questions in the Diet today that he "has given directions for the respective ministries to take action in order to address the issue. This includes putting legal mechanisms in place." Based on this comment, it has also been reported that bills to provide bailouts for such liquefaction damages are under review. What kind of action is the Government considering in response to damages incurred as a result of liquefaction?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: As stated in the responses to questions in the Diet, the Prime Minister has conducted on-site inspections and witnessed the liquefaction situation with his own eyes. Various measures are being put in place in the respective municipalities to respond to the situation. As to how relief can be provided as a whole, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), as well as the related ministries and agencies with regard to apartment buildings, for example, are conducting across-the-board reviews. As such, we are currently deliberating the kind of legal infrastructure that is needed, and that is all I can say at this point in time.

REPORTER: It is now becoming more apparent that the United States has twice conducted subcritical nuclear experiments. What is the Government's understanding of these facts?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: According to the report released by the United States' National Nuclear Security Administration on June 17, subcritical nuclear experiments were conducted twice in 2010 at their Nevada facility. The United States did not conduct nuclear detonation experiments, but rather, conducted subcritical nuclear experiments to ensure the safety and efficacy of nuclear weapons that are being kept in storage. The Japanese Government is aware of these facts. This is our understanding at this point in time.

REPORTER: As a country that has suffered from atomic bombings, does our Government have any intentions of voicing its protest to the US Government?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: As of now, Japan has no intentions of voicing its protest.

REPORTER: What are the reasons for this stance?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: We understand that the subcritical nuclear experiments conducted this time were not accompanied by any nuclear detonation activities that are prohibited under the Comprehensive Nuclear-Test-Ban Treaty (CTBT). I attended the conference on the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) last year, and Japan supports efforts toward the creation of a world without nuclear weapons proposed by the President of the United States. The international community has discussed these issues, and I believe that Japan must also put in its best efforts toward the creation of a society that is free of nuclear weapons. That is why we support the Prague Speech. On the other hand, in his Prague Speech, President Obama also talked about the maintenance of safe and effective nuclear weapons as long as these weapons exist in the world, and we understand that these tests are aligned with this stance.

REPORTER: With regard to power supplies, the Prime Minister has mentioned that Japan has various forms of reserve power generation capacity. Despite his claims, Government offices have said that this was not the case. What are your thoughts on this issue of reserve power generation capacity?

DEPUTY CHIEF CABINET SECRETARY FUKUYAMA: I think it is extremely difficult to define reserve power generation capacity. The Government's energy and environment committee is currently conducting detailed investigations into the actual power supply capability that Japan has. The problem does not lie in whether or not the Government ministries recognize that capability, as you have just mentioned; rather, the issues of concern are the actual capacity of privately owned power generation facilities, whether such electricity supplies are being completely consumed by the owners, and whether there is any surplus. To be more specific, for example, if there are electricity supplies that are not being utilized in the nighttime, how can we make effective use of such supplies? This does not apply only to privately owned power generation facilities. I think that we must also conduct close investigation into other possibilities; for instance, with regard to thermal power, how can we start up facilities that have stopped operating? There are also cost issues, but what is our actual supply capability like? To uncover these answers, the energy and environment committee has also made inroads into these investigations. Therefore, for us, the issue of reserve power generation capacity should not end up being speculations on whether there are actually large amounts of hidden energy. Instead, the Government has to get a good grasp on the amount of electricity that can be supplied and used to meet actual needs, and to consider how to use these electricity supplies effectively when supply is extremely tight, as in the situation that we are currently faced with. Furthermore, in consideration of power demand for the coming winter and next summer, I think that we need to conduct reviews on how we can - most effectively as well as in the most cost-effective manner - utilize the capacities that we are currently investigating. This is the stance that I am taking at these meetings.