Press Conference by the Chief Cabinet Secretary (Excerpt)

JAPANESE

Opening Statement by Chief Cabinet Secretary Fujimura

(Abridged)

Q&As

(Abridged)

REPORTER: With regard to the issue of Hokkaido Electric Power Company's involvement in the misrepresentation of public opinion, today the president of the company mentioned in a press conference that the pluthermal plan for Tomari Nuclear Power Station may be postponed. Do you think that the recent series of incidents concerning Kyushu and Hokkaido Electric Power Companies will have an impact on the pluthermal plan and also on the restarting of operations at various power stations?

CHIEF CABINET SECRETARY FUJIMURA: Firstly, I believe that the president's comment concerning the pluthermal plan was that the company sought to halt and restructure the plan. The Government's stance is to engage in deliberations in the form of the Energy and Environment Council and seek a wide range of public opinions concerning the formation of a mid- to long-term energy plan, including the ideal format for pluthermal power generation. This does not mean that the Government has sought to halt and restructure the pluthermal generation plan. This is the current status of the Government's views on this issue to date.

REPORTER: It also recently emerged that members of the Ministry of Economy, Trade and Industry (METI) had been involved in the manipulation of public opinion at a symposium hosted by the Government and administrative penalties have already been imposed on those responsible. I believe that mistrust is targeted not just at the local level but also at the national level. Do you consider that it is acceptable to engage in wholesale discussions over revisions to energy policy in conjunction with decisions concerning those nuclear power stations with such clear evidence of improper behavior as well as those without?

CHIEF CABINET SECRETARY FUJIMURA: The Energy and Environment Council is engaging in discussions under a large framework, but it is also the case that each issue, such as the restarting of operations at nuclear power stations, is being considered separately. I believe that decisions will be made properly and accordingly on an individual basis.

(Abridged)

REPORTER: Today, certain media sources reported that the Tokyo Electric Power Company (TEPCO) would be applying for up to 1 trillion yen in assistance in order to pay out compensation. There are plans to incorporate this into the emergency program to be drafted by the Government and TEPCO in early November. As of present, how far have adjustments and considerations being made between the Government and TEPCO advanced?

CHIEF CABINET SECRETARY FUJIMURA: I am aware that that depending on the news outlet the amount of financial assistance being reported is anywhere between 700 billion yen to 1 trillion yen. The Corporation in support of Compensation for Nuclear Damage has announced its policy to divide the special program into two stages. One is the special emergency program to be released in early November and the other is a comprehensive special program to be released next spring. The content is actually still being discussed. It is my understanding that the minister in charge, Minister Yukio Edano, will determine the appropriateness of these special programs when deciding whether to approve them, from the perspectives of the prompt and proper payment of compensation and minimizing the burden on citizens.

REPORTER: On a related note, there are also reports that the program will circumvent a price increase in conjunction with the restart of operations at Kashiwazaki-Kariwa Nuclear Power Station. Is the restart of operations at this nuclear power station linked with the minimization of the burden on citizens?

CHIEF CABINET SECRETARY FUJIMURA: No. That is simply based on inaccurate conjecture by the media. A report by the Investigation Committee on TEPCO's Management and Finances (TEPCO Management and Finance Investigation Committee) indicates that, while the possibility of rate increases will be kept in view, regulating authorities should promptly pay serious consideration to regulations for a rate system that is suited to the future circumstances of TEPCO and other power companies and the operation of such a system. In response of this report, an expert panel will be established within METI and considerations are about to commence on structural revisions. So, I believe that proposals will be made for the special programs after adequate consideration has been paid to those circumstances. Yesterday, I think that Minister Edano announced the establishment of an expert panel on revising management of the electricity rate system, and moving forward considerations are going to be made by this panel. So, any relationship with the restart of operations at nuclear power stations is only based on media conjecture at this point.

(Abridged)