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| (Provisional Translation) |
General Policy Speech by Prime Minister Junichiro Koizumi to the 155th Session of the Diet |
October 18, 2002 |
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(Opening)
Since assuming office I have not budged an inch from my posture of ceaselessly carrying out structural reforms without sanctuaries through my domestic policies, and on the diplomatic front, of ensuring that Japan takes initiative in the role that it plays based on international collaboration. In the past one and a half years, despite under a severe situation, I have made efforts to put in practice the policies of my government standing on the firm foundation of the coalition among the Liberal Democratic Party, the New Komeito and the New Conservative Party.
I recently reshuffled my Cabinet in order to further advance the structural reforms. Under this new formation, I am resolved to launch my policy of "no growth without reform" onto a firm orbit.
On September 17, I became the first Japanese Prime Minister ever to visit North Korea, where I held talks with Chairman of the National Defense Commission Kim Jong-Il. In his remarks, Chairman Kim Jong-Il admitted the involvement of North Korea in the abduction issues and clearly expressed his apologies and his resolve to prevent any recurrence of such cases. I could also perceive that he is eager to seek a comprehensive advancement in resolving security and other issues, including those of the covert operation vessels, missiles and the problem of nuclear development.
The information disclosed by North Korea regarding the fate of the abductees portrayed a truly appalling situation and I was forced to make a difficult decision. Such cases must never again be allowed to occur. That is one reason why it is essential that stable peace in the region of the Korean Peninsula be secured. Relaxing the tensions of this region will contribute to the peace and stability not only of our nation, but of the Northeast Asian region, and ultimately of the entire world. Recognizing that dispelling the grave concerns that pervade relations between Japan and North Korea through negotiations and that taking a major step forward to move from hostile relations to cooperative relations will well serve Japan's national interests, I decided to resume the normalization talks.
"One must believe that one has made the best policy decision." These are the words of Munemitsu Mutsu, who served as Minister for Foreign Affairs in the Cabinet of the second administration of Prime Minister Hirobumi Ito in the period when the Cabinet system was first established. In other words, one should be confident that "even if anybody else were to have made the decision, there should not have been other policy options." These words, that imply that the true national interest is reached as a conclusion after having thoroughly thought through, are also mine.
The normalization talks will resume on October 29. The basic premise for these talks is that the principles and spirit of the Japan-DPRK Pyongyang Declaration are sincerely abided by. Japan, in the course of negotiations in the normalization talks, will closely coordinate with the United States, the Republic of Korea and other related countries.
My heart aches when I think of the long years of suffering experienced by the abductees and their families. The return to Japan of five of the abductees on October 15 was merely the first step toward solving this problem. Through the normalization talks, I intend to clarify what actually happened in the abductions and I will ensure that the Government undertakes to extend full support to the abductees and their families.
The most important task for us now is the rebirth of the Japanese economy in an increasingly severe environment. In order to restore vitality to the economy, I intend to compile comprehensive response measures immediately, with a view to accelerating reforms in the coming six months.
The Government and the Bank of Japan will unite to tackle the issue of overcoming deflation in a comprehensive manner. Responding to the economic situation, we will take bold and flexible measures, thus securing the stability of the financial system and the economy.
We will substantially accelerate the disposal of non-performing loans and conclude the issue of non-performing loans during FY2004.
Regarding the payoff system, we will prepare for the introduction of the payoff system, taking systemic measures to secure the stability of settlement functions. In order to avoid concern and confusion among depositors in the course of advancing reform of the financial system, actual implementation of the payoff system will take place in April 2005, by which time the issue of non-performing loans should have been resolved. We will take measures to promote reorganization of financial institutions and others in order to strengthen their operating foundations.
As we accelerate the disposal of non-performing loans, we will pay careful attention to its effect on the employment and to the operations of small and medium enterprises, and make every effort to provide with safety nets. We will strengthen measures to support industrial reorganization, to foster rapid revival of companies and to assist with the establishment of new businesses.
In terms of the tax system, we will implement sweeping reforms towards creation of "an appropriate tax system" that will help us realize sustained revitalization of the economy and society. In light of the current economic situation, I will carry out advanced implementation of the deepest tax cuts possible, in excess of 1 trillion yen. We will continue deliberations with a view to submitting a comprehensive bill to the next regular session of the Diet, aiming for a tax system that is fair, simple and easy-to-understand within the framework of tax revenue neutrality over several fiscal years.
The necessary steps, including those related to the tax system, will be taken for the purpose of reactivating asset markets such as the real estate and securities markets.
I will establish special zones for structural reform as one major pillar to revitalize the Japanese economy. The operating principle will be shifted from "uniform regulations throughout the country" to "regulations that fit with the specific characteristics of each region." We will implement bold regulatory reform across sectors such as education, agriculture and welfare, taking seriously the wisdom and willingness shown in the more than 400 proposals that have been put forward.
The willingness of local governments and the private sector are materializing as concrete plans in the area of urban renaissance. The 44 areas for urgent improvement through urban renaissance designated around the nation are slated to receive a total of approximately 7 trillion yen in private-sector investment, including the redevelopment building plan in front of Nagoya Station which will boast the largest floor area ratio in Japan. Calculations that factor in the synergy effect estimate a total economic effect of more than 20 trillion yen. We will utilize these projects, together with the special zones for structural reform, for activating the economy.
As for the justice system, we will conduct comprehensive and concentrated reform with a goal of, among other things, first trials being concluded within two years.
We will advance the creation, protection and application of intellectual property as a national strategy.
We will promote e-government and e-municipalities, aiming to make Japan the world's most advanced IT nation.
During the previous session of the Diet, we took a major step towards comprehensive postal reform by approving legislation that will allow private-sector entry to the postal businesses and by passing the Law on the Postal Public Corporation. Specific proposals for privatization have already been presented to the nation and I intend to advance deliberations based on those ideas. Similarly, regarding the four highway-related public corporations, the Law on the Establishment of the Promotion Committee for Privatization has been adopted and vigorous discussions on modalities for privatization are taking place among the Committee members, who are ambitious reformers. Furthermore, laws related to reform of the medical system have also been approved. Structural reform is advancing steadily.
I will continue to work on a drastic reduction of the bloated public sector. By further accelerating the shift "from the public to the private sector" and the flow "from the central to the local governments," I intend to realize an economy and society centered on a vital private sector and unique local communities.
We will fundamentally review the way that taxes are spent and create a simple and effective government.
Based on the proposals for reform presented by Cabinet members in the Council on Economic and Fiscal Policy, I intend to engage in even deeper discussions and show the direction of reform on important issues including social security, such as pensions, agriculture, including rice, compulsory education, public works projects and earmarked fiscal resources. I will also steadily implement reform of special public institutions.
As for the relations between the central and the local governments, we will consider in trinity the modalities for the allocation of financial resources, including state subsidies, local allocation tax, and the transfer of tax resources to local governments. The outcome of those considerations will be partially reflected in the FY2003 budget. In terms of municipal mergers, currently approximately 2,500 municipalities are considering mergers and I intend to further advance these mergers more strongly.
In formulating the FY2003 budget, we will continue to severely review expenditures, while giving priorities for allocation in areas that will lead to future development.
The administrative body itself cannot proceed without "pain" either. Given the severe situation facing private-sector business, the Government will decrease the salary and retirement allowance levels of civil servants.
More than one year has passed since the series of terrorist attacks in the United States of September 11th. When I attended the memorial ceremony in New York I was moved by the depth of the wounds that remain. The October 12th terrorist bombing in Bali left hundreds dead and wounded. We must face the fact that the fight against terrorism will be long and difficult. The Government will do everything in its power to ensure the safety and security of the people while actively fulfilling Japan's role as a member of the international community in contributing to the peace and stability of the world.
The problem of weapons of mass destruction in Iraq is a common challenge for the international community. The announcement by Iraq that it will unconditionally accept the return of United Nations inspectors is the first step towards resolving this issue. What is important, however, is for Iraq to actually accept immediate, unconditional and unrestricted inspections and comply with all relevant United Nations Security Council Resolutions, including those calling for the disposal of weapons of mass destruction. I clearly conveyed to President George W. Bush of the United States our view that international collaboration is vital in addressing the issue of Iraq. Japan will continue to carry out diplomatic efforts in cooperation with the international community.
Since September of this year, my participation in the World Summit on Sustainable Development in Johannesburg and the fourth Asia-Europe Meeting (ASEM) and my visit to the United States have given me opportunities to meet with world leaders and frankly exchange views on the issues facing the international community while building relations of trust. At the end of this month I will attend the APEC Economic Leaders' Meeting in Mexico and at the beginning of next month I will participate in the ASEAN + 3 (Japan, China and the Republic of Korea) Summit Meeting in Cambodia. I intend to continue to develop solid and cooperative relations with the United States and other nations around the world.
We cannot expect to achieve reform unless the people place their confidence in politics. Each and every member of my Cabinet will act with propriety, demonstrate leadership and promote reform under an appropriate allocation of roles and a cooperative relationship between statesmen and bureaucrats.
It is indeed a serious situation that a series of scandals have greatly undermined people's confidence in areas where safety is of utmost importance, including the issues related to meat, improper food labeling and misconduct concerning inspections of nuclear power plants. I intend to create a mechanism that will prevent the reoccurrence of such incidents and ensure safety based on public disclosure of information.
In this session of the Diet, I intend to give priority to bills carried over from the previous Diet Session, such as national emergency legislation and legal structures to ensure the protection of personal information, aiming for their passage. In addition, we will submit a range of bills important for advancing structural reforms.
Regarding the legislation related to "readiness" in the event of a national emergency, in light of the discussions at the previous session of the Diet, we have given consideration to individual legal structures such as the legal structure for the protection of Japanese nationals in addition to the basic framework. Through the deliberations on this bill I intend to strive to gain the understanding and cooperation of the people of Japan.
The Japanese economy is in the middle of structural reform and continues to be in a severe situation. However, there has been no fading of the latent potential amassed through the unstinting efforts of the people.
A project is underway in Higashi-Osaka City to gather several dozen local small and medium enterprises with unique technological skills and develop a compact satellite over the next three years.
In Tokyo's Ota Ward, there is a corporation which manufactures special components for a great range of applications spanning from products for daily use to rockets using the proficient skills of its craftsmen. There is another company which uses Information Technologies to automatically manufacture molds for mobile telephones and wins contracts to supply global manufacturers, making use of its speed of development as its advantage.
There are also companies which have succeeded in epoch-making technological development in advanced sectors such as genetic research materials. Indeed, some of them enjoy sales growth of as much as six-fold over the course of two years.
The small and medium enterprises of our nation are bravely struggling to meet the challenges they face in this severe environment.
This is the third consecutive year that the Nobel Prize has been awarded to Japanese nationals. Moreover, this year, for the first time ever, two Japanese have been selected as Nobel laureates. This will add great momentum to the promotion of science and technology in our nation. Mr Masatoshi Koshiba, who has been awarded the Nobel Prize in Physics in recognition of his unprecedented observation of neutrinos, is 76 years old, while Mr Koichi Tanaka, awarded the Nobel Prize in Chemistry in recognition of his development of analytical methods for protein, is 43 years old. The simultaneous selection of these two scientists from different generations working in different fields has shown the world the high standards and wide breadth of Japanese research. This is truly a wonderful event that has filled us with courage.
Addressing the Diet in April of this year, the President of the European Commission, Romano Prodi warned us not to be pessimistic about the future of Japan by pointing out that, "One is dazzled by the capacity of Japan, whether it be in the field of the economy, technology, science or marketing. Such assets will certainly not disappear." World leaders praise Japan's latent economic potential and have great expectations that its development will provide the driving force for greater global prosperity.
Structural reform is indeed the path that will extract Japan's latent potential. Let us be confident and hopeful in taking on challenges for reform.
In this I ask from my heart for the understanding and cooperation of the people of Japan as well as the distinguished members of the Diet. |