Top „ Speeches and Statements by Prime Minister

iProvisional Translationj Press Conference by Prime Minister Junichiro Koizumi After the Closing of the 159th Session of Regular Diet June 17, 2004

The 150-day regular Diet session came to a close on June 16. This Diet session started in January, and was faced with difficulties as early as February when opposition Diet members refused to attend the session during the deliberations on the supplementary budget, which caused a great concern to the course of this session. However, with the cooperation of the Diet members of the ruling and opposition parties, we were able to enact many important bills. I would like to extend my heartfelt appreciation to all who have lent the hand of assistance in this Diet session. While there were some bills that met with opposition, we were able to enact bills such as emergency bills which protect the rights of the people and secure evacuation in emergency situations with the cooperation of both the ruling and opposition parties. Under the policy of "leave to the private sector what it can do," the bills were enacted to privatize the four highway public corporations, which have been a symbolic special public corporations. These corporations will finally be prepared to launch as private corporations from next year. The Government has received stern reprimand and criticism from many people on the pension issue, specifically over the issue of nonpayment of pension premiums, and also concerning inefficient operations including the operation of wasteful facilities by the Social Insurance Agency. The Government will seriously reflect on such criticisms and must implement even more effective improvement measures. Under such circumstances, the so-called three party agreement was formed between the Liberal Democratic Party (LDP), New Komeito and the Democratic Party of Japan (DPJ), which is significant concerning the pension system. As for the issue of unification of the pension plans, the unification of the national pension for self-employed, the employees' pension for salaried workers in the private sector and the mutual aid pension for public service employees has been discussed for years. In the deliberations of the Diet, the issue is of great importance when considering the daily lives of the people and the future of the pension system. Therefore the task at hand is to further consider this issue within the framework of the entire social security system. The proposal to unify the pension plans itself is generating controversial opinions. Even for those people who agree to the unification of the pension plans in a general context, they may form a different view when getting down into specifics. Take the employees' pension or national pension for example: each plan has a different employment pattern. From such a perspective, questions arise as to how unification should be advanced, which require a significant amount of discussion time in order to attain a common understanding. Needless to say, the issue of the unification of the pension plans will affect not only the pension system but the tax system as well. It will also involve medical insurance and long-term care insurance; therefore we need to seriously review the modality of the social security system as a whole, while taking into consideration the overall picture and by taking advantage of the discussions that took place in this Diet session. With regard to the issue of assistance for the reconstruction of Iraq, during the Sea Island Summit in Georgia, USA, to which I attended recently, the United Nations Security Council agreed unanimously to adopt a resolution on the transfer of sovereignty and reconstruction assistance to Iraq, calling for the cooperation of the members of the United Nations. Sovereignty will be transferred to the Iraqis on June 30. A multinational force will then be constituted at the request of the Iraqi Interim Government to the United Nations. The multinational force will be engaged in, among other tasks, humanitarian assistance and reconstruction assistance activities. In line with our position to date, Japan will take on an appropriate role, adhering strictly to the four conditions of not using force, restricting activities to non-combat areas, operating within the framework of the Law Concerning the Special Measures on Humanitarian and Reconstruction Assistance in Iraq and maintaining Japanese national command over the activities of the Self-Defense Forces (SDF). I believe Japan must undertake humanitarian and reconstruction assistance activities in a way that supports the work and will of the Iraqi people to rebuild their own country. On the issue of North Korea, I visited Pyongyang once again last month and met Chairman Kim Jong-Il. On September 17, 2002, Chairman Kim and I issued the Japan-DPRK Pyongyang Declaration, which calls for the comprehensive resolution of the abductions issue, the dismantlement of nuclear programs and the missile issue, and which would lead to the normalization of the current anomalous relations between Japan and North Korea. I visited North Korea to confirm with Chairman Kim that it is extremely important for both countries to act in good faith to ensure that the Declaration's provisions are put into practice. I also confirmed our understanding that we must move from the current anomalous and hostile relations between the two countries to friendly and cooperative relations. In line with such understanding, we must work towards normalization of Japan-North Korea relations hereafter. Some family members of the abductees have returned to Japan, but the issue remains of the re-investigation into those abductees whose whereabouts remain unknown. The family of Ms. Hitomi Soga still has not returned to Japan either, which also involves the issue of Mr. Charles Jenkins, the husband of Ms. Soga. On this issue, and bearing in mind the wishes of Ms. Soga, the Government intends to facilitate the reunion of Ms. Soga's family in a third country at the earliest possible date. While the time and location have yet to be decided, it is incumbent on the Government to create as soon as possible an environment where Ms. Soga, Mr. Jenkins and their two children can meet and talk together. There are a plethora of issues in both domestic and foreign policy. Although we remain under a severe situation, recently bright signs in economic condition are emerging at last. Both corporate performance and the GDP growth rate are exceeding government projections, showing signs of growth. We must make doubly sure that this recovery trend is made solid and full-fledged. To date, the recovery of the Japanese economy has basically depended on foreign demands and exports. However, current economic indicators show that a trend is emerging of the economy recovering in line with so-called domestic demand - that is plant and equipment investment in Japan and personal consumption. In such circumstances, the US economy is also in good shape. Remarkable development continues apace in the Chinese economy as well. Grasping the opportunities provided by this favorable external environment and further advancing domestic reform, I will work to see that these bright signs, or in other words the "buds of reform," are nurtured into "a large tree." I cannot now relax even for one day, and in staunchly supporting the Japanese economy and ensuring that Japan fulfills its responsibilities appropriately in the international community, the Koizumi Cabinet must continue to fully carry out its responsibilities. The House of Councillors election will soon be upon us. I will sincerely endeavor with all my heart to ensure that the Koizumi Cabinet has the trust of the people of Japan, for which I humbly ask for your continued support and cooperation. Q&A Question: I would like to ask about the Self-Defense Forces (SDF) participating in the multinational force in Iraq. This goes one step beyond the framework of overseas dispatch of the SDF so far and there is a concern among the people of Japan that the overseas activities of the SDF will expand without limit. How do you perceive such a concern and how do you intend to respond in this regard? Prime Minister Koizumi: Japan has its own position on its form of involvement in providing reconstruction assistance to Iraq. The Government of Japan is not considering the use of force, as conducted by the US or UK. What Japan can do is centered primarily on the assistance activities by the SDF which is now operating in Samawah. Even when Japan participates in the multinational force, the activities will be limited to humanitarian and reconstruction assistance. President Sheikh Ghazi al-Yawar of the Iraqi Interim Government also attended the recent Summit and I spoke in person with him. President Yawar requested that the assistance activities of the SDF be continued, as the activities of the SDF in Iraq are exceptionally welcomed compared with other forces. I was reassured to learn that the SDF personnel are constructing friendly relations with the local residents while carrying out their duties. As I mentioned previously, Japan will help Iraq to build a stable, democratic government by participating in the multinational force, but this is purely limited to humanitarian and reconstruction assistance. These activities will be continued within the framework of the Law Concerning the Special Measures on Humanitarian and Reconstruction Assistance in Iraq, not to mention the Constitution of Japan. I will continue to seek the understanding and cooperation of the people of Japan through the election campaign and other various opportunities. Question: You have just spoken about the pension issues. The fact that release of the newest figures for the total fertility rate came after the passage of the reform bills contributed to growing distrust among the public concerning the reform bills. The hard-line measures taken by the ruling party coalition while it was put to the vote mean that it was touch and go as to whether the three party agreement would be realized. How are you planning to restore trust in the system, as you just mentioned, given the issue of the nonpayment of pension premiums and reforms of the Social Insurance Agency? Please indicate what specific ideas you have at this current point. Prime Minister Koizumi: I acknowledge that each political party has different views on the pension system. I intend to call on the Democratic Party of Japan (DPJ) for their cooperation in establishing as soon as possible a committee that will review the modality of social security system as a whole, including the unification of the pension plans, as was agreed among the Liberal Democratic Party (LDP), New Komeito and the DPJ in this Diet session. Both Chairman Hiroshi Okuda of Nippon Keidanren and President Kiyoshi Sasamori of Japanese Trade Union Confederation-Rengo have also proposed to create a consultative body on the social security system as a whole, including pensions, in a form that incorporates participation from the economic and labor circles. This issue is a matter for the Diet and involves the agreement among LDP, New Komeito and DPJ. Still, based on such request, the Government is also considering establishing a governmental consultative body with the participation of the economic and labor circles that will review the modality of the social security system. As such, I have instructed the Chief Cabinet Secretary to deliberate on the composition of members of such a consultative body. This issue is not limited merely to social security and pensions. It is profoundly related to the tax system as well. With regard to the birth rate, for a period after the WWII, the annual rate at its highest stood at as many as 2.7 million babies being born each year. That figure has now fallen to 1.2 million births per year, less than half the highest figure. The number of people entitled to received pension benefits is continuing to increase. Given that the number of people being born is half what it was, the number of people bearing the pension burden is decreasing. Although it is natural that everyone would like to receive the largest pension possible, we must consider the pension burden as well. The public pension would not be viable with just the receiving side and the burden bearing side carrying on as now, because the issue would arise of the burden becoming unbearable. That is why tax revenue is injected. There are various views on the degree to which tax revenues could be injected, including income tax and consumption tax. It will be necessary to discuss these issues further in national debate. With regard to the issue of the unification of the pension plans, although unification could not be said to be simple, I think it would be relatively easy to achieve for the employees' pension and the mutual aid pension, when compared with the unification with the national pension. The most difficult issue is achieving the unification of the three plans - the national pension, employees' pension and mutual aid pension. Direction of such unification should be discussed in a forum such as a committee comprised of members of both the ruling and opposition parties or a governmental consultative body incorporating the economic and labor circles. Firstly there is the issue of gaining a grasp of the income amount, and the proposal, for example, of a tax payer numbering system to respond to this issue is very controversial. The issue also arises of whether it is appropriate to examine taxation in terms of the pension issue alone. Although there has been a proposal from the DPJ for pensions to be supported by consumption tax specifically for pensions, when considering the social security system as a whole, and given that the number of elderly people will increase, the issues of medical insurance and long-term care insurance needs to be considered. This raises the question of whether it is appropriate to only target pensions when using consumption tax revenues. For this reason, whether it is discussed in a committee comprised of members of both the ruling and opposition parties or a consultative body incorporating the economic and labor circles to study the social security and pensions issue with government, the issue is significant in either case. This is not an issue to which a solution will be forthcoming within the space of a year. Most people may agree on a unification of the pension plans in general. However, if we look in detail, the issue arises as to whether the self-employed, company employees, and public service employees could really be all placed together under a unified plan, and whether agreement on tax payer numbering system could really be gained from those who support the unification of the pension plans. These issues need to be thoroughly discussed. Whatever the case, I believe that it will be necessary to launch a committee comprised of members of both the ruling and opposition parties and a governmental consultative body that can bring all these issues to the table for concrete discussion. Question: With regard to the pension issue, the DPJ is talking about consumption tax. From what I understand from your comment just now, there will of course be a debate over the issue of consumption tax at the committee or consultative body that is to be established and as a result, there is a possibility that the consumption tax will be injected as a financial resource for the social insurance system in some way? Is this right? Prime Minister Koizumi: I have made it clear that I will not raise the consumption tax rate while I am in office. My term is until September of 2006, the maximum time I can serve is just a little over two more years. I will give my utmost efforts during my term and exert all the power that I have until the day I leave office. I believe that we are not in an environment that permits an increase in the consumption tax rate. However, I have no intention of hindering such discussions. I highly welcome discussions over this matter. Yet, regardless of how fast a conclusion is reached on raising the consumption tax rate, the environment will not be ready for such increase within the next two years. I think that the people pressing for an increase in consumption tax rate also are aware of this. Again, discussions are highly welcomed. I am sure that the discussions on the modality of the social insurance system will naturally lead to discussions on consumption tax. I am not forbidding people from discussing the issue of consumption tax, but rather believe that it is beneficial to discuss the issue of consumption tax as part within the framework of the entire tax system. However, I repeat, the consumption tax rate will not be raised while I am in office. Discussions are welcomed. Question: With respect to the multinational force, I believe that one way for the SDF to continue to stay in Iraq is to individually conclude an agreement with the Iraqi Interim Government. Please tell us why you are not using this means and instead have chosen participation in the multinational force. Prime Minister Koizumi: The Iraqi Interim Government is requesting the United Nations to allow the coalition forces to continue carrying out reconstruction assistance that includes ensuring the security of Iraq. Countries will cooperate with the multinational force in their own way. Some countries are able to cooperate in activities to ensure security. However, Japan cannot, and will not, cooperate in activities to ensure security through the use of force. This has to be considered in the context of the multinational force as a whole, but Japan must conduct assistance activities that are appropriate and limited only to what Japan can do, and in a manner that garners the understanding of the people of Japan. On this point, the understanding of the US and UK have been obtained. The SDF personnel will continue their activities within the scope of the current Law Concerning the Special Measures on Humanitarian and Reconstruction Assistance in Iraq. In this way, I would like for Japan to do what it can as part of the multinational force in accordance with the request of the United Nations, rather than taking the approach of individual countries signing individual agreements with the Iraqi Interim Government. Question: I also have a question about the multinational force in Iraq. You just mentioned that operations would be limited to humanitarian and reconstruction assistance. The SDF operating in Iraq, however, are in actual fact engaged in support activities to ensure security, such as the Air Self-Defense Force transporting US Force personnel. In the future, I am sure that in contrast to humanitarian and reconstruction assistance in Samawah, the SDF will be called upon to cooperate with the multinational force. In such cases, would the command of the SDF not come under the multinational force? You mentioned that you have received the understanding of the US and UK governments, but how would such a call from multinational force be handled? Prime Minister Koizumi: Although operations by the SDF have been focused on humanitarian and reconstruction assistance, there may be cases in which assistance has taken the form, for example, of transportation of necessary machinery and components for the US Forces in order for them to conduct assistance activities and maintain life. The activities of the SDF are mainly focused on humanitarian and reconstruction assistance, but Japan will consider how it will assist other countries when they need support in conducting their activities and maintaining life, keeping cooperative relations with those countries in mind. In any case, humanitarian and reconstruction assistance are the main activities of the SDF. Question: You have just mentioned that the reconstruction assistance activities will be performed within the framework of the Constitution of Japan. However, up until now Japan was not able to join the multinational force due to the issue of interpretation of the Constitution. What is the reason this time then to determine that Japan joining the multinational force complies with the Constitution? Prime Minister Koizumi: First let me state that there were conflicting opinions within the United Nations on starting the Iraq war. However, overcoming such conflicting opinions over the war, the United Nations Security Council unanimously adopted a resolution on the reconstruction assistance to Iraq. Furthermore, sovereignty will be transferred to the Iraqis on June 30. I have also received a request from the President of the Iraqi Interim Government himself for the SDF to continue its activities. Japan, as a responsible member of the international community, values the United Nations and international cooperation. I can see no reason that Japan should not join the efforts to reconstruct Iraq only because it is a multinational force, when the Iraqi people are trying to stand on their feet for their own country. Some people misunderstand that multinational forces only engage in the use of force. Indeed, there may be occasions where the multinational force established this time will engage in use of force, but Japan will participate in the multinational force to engage in humanitarian and reconstruction assistance activities. The Iraqi people are now suffering under a most severe situation. They are requesting assistance from the international community. They evaluate the activities of the SDF highly. Under such circumstances, it would neither be to the benefit of, nor please the people of Iraq if Japan stopped the assistance it has been providing so far. The people of Iraq are requesting the SDF to continue its activities. I am confident that Japan lending a hand in the reconstruction assistance of Iraq is meaningful for the stability of the entire Middle East region and from the standpoint of helping the Iraqi people's own efforts to reconstruct their own country. I strongly wish to provide reconstruction assistance that will win the appraisal of the people of Iraq and be remembered in the future as, "Japan lent us the hand of assistance at our most crucial time."