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Headquarters of the Government and Ruling Parties for Social Security Reform

Monday, December 5, 2011

Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 1

Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 1

  • Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 1
  • Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 2

Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 2

Photograph of the Prime Minister delivering an address at the meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform 2

Prime Minister Yoshihiko Noda held a meeting of the Headquarters of the Government and Ruling Parties for Social Security Reform at the Prime Minister's Office.

Discussion took place on the materialization of the final draft proposal on the comprehensive reform of social security and taxation systems.

Based on the discussion, the Prime Minister said, "Now that the third supplementary budget and the Act on Special Measures for Securing Financial Resources Necessary for Reconstruction from the Great East Japan Earthquake were established in the Diet, the major task ahead of us going forward is the comprehensive reform to strengthen the social security functions, secure a stable supply of revenue sources, and ensure the sustainability of the social security system.
Our Cabinet has always asserted the necessity and importance of this comprehensive reform.
There are three factors behind this. First is the retirement of the baby-boom generation. Those who have hitherto supported the social security system are reaching the age of 65, and are now beginning to be supported by the social security system. As a result, the current state is such that social security-related expenditures comprise over half of the government's general account expenditure, which are set to automatically increase more than 1 trillion yen every year. It is therefore urgent that we build a sustainable social security system.
The second factor is the inadequacy of safety-net provided by the current social security system. I said a moment ago that the number of people who support the social security system is declining - this makes it all the more necessary for us to provide life support to these people. Child-rearing and youth employment are thus also matters requiring urgent responses.
The third factor is our perception of the current European crisis. This is not a fire on the other side of the river. We need to act with a strong awareness that the world, the market, is watching the nation's commitment to maintaining fiscal discipline.
Looking at these three points, it is apparent that this issue cannot be procrastinated indefinitely. I would like to confirm this point with everyone as a shared understanding.
As we are now starting a full-fledged discussion, I have given three written instructions.
First is that I would like the government and the ruling parties to have more in-depth discussions and by the end of this year come up with a draft plan that materializes the final draft proposal compiled in June. This draft plan will be the base of all-party discussions.
The second is that the government and the ruling parties should make sufficient arrangements to this end. I would like the five ministers - the Chief Cabinet Secretary, Minister for Total Reform of Social Security and Tax, Minister of Health, Labour and Welfare, Minister of Finance, and the Minister for Internal Affairs and Communications - to lead the consensus-making within the government.
The third is that each of us should make an effort to inform and explain to people about the content of the reform, such as how the social security functions are going to be strengthened, in a straightforward and earnest manner, as it is necessary for the people to see this reform as their issue, correctly understand it, and participate in broad-based discussions.
I am going to tackle this reform with an unwavering resolve."

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