Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

REPORTER: The Prime Minister's visit to China, which was arranged to take place on December 12 and 13, was postponed upon China's request. Can you share with us the Government's thoughts on this? Also, moving forward, what sort of process will be involved for arranging the Prime Minister's visit to China once again?

CHIEF CABINET SECRETARY FUJIMURA: The Prime Minister's visit to China has been postponed. China, like Japan, attaches great importance to Prime Minister Noda's visit to China. As such, we hope to make this visit a success amid a positive atmosphere. Once again, arrangements are now being made to realize the Prime Minister's visit to China by the end of this year.

(Abridged)

REPORTER: May I confirm once again China's reasons for the postponement?

CHIEF CABINET SECRETARY FUJIMURA: The facts as I understand them are that China requested the rescheduling of the visit for reasons of their domestic affairs' situation. In any case, we would like to reschedule the visit to take place by the end of this year.

REPORTER: According to some reports, the Government is considering the possibility of realigning the surrounding areas of TEPCO's Fukushima Daiichi Nuclear Power Station into three zones. Can you verify the facts?

CHIEF CABINET SECRETARY FUJIMURA: First, the Government is making efforts to realize our primary goal of achieving Step 2 by the end of this year. So right now, mid- to long-term measures for implementation after the achievement of Step 2, including the removal of melted fuel, are also being considered. In addition, coupled with the achievement of Step 2, indeed a variety of measures are now being fully considered toward the review of the Restricted Area and other areas. While I cannot discuss the contents at this point in time, in any case, we are at the stage of thoroughly building up discussions with Fukushima Prefecture and relevant municipalities on the review of the Restricted Area and other areas as well as the modality of long-term reconstruction measures.

(Abridged)

REPORTER: I would like to ask a question with regard to the consumption tax increase. The section in the June final draft about increasing the consumption tax to 10% by the mid-2010s  sets out that an equivalent of 1% will be allocated to the increase in social security expenditures and other expenditures associated with the increase in consumption tax. With regard to the specific contents, it has been noted that public works projects and other non-social security-related expenses are included in this. Can you verify the facts? Also, if you happen to know the breakdown, can you please tell us?

CHIEF CABINET SECRETARY FUJIMURA: I believe there is a bit of a misunderstanding. The plan has already been announced and circulated with the understanding that the consumption tax increase is to ensure stable financial resources for social security reform. I believe it will be clear if you look carefully at how the 5% consumption tax increase will be utilized. Within this section, I believe you are referring to the part about the increase in social security expenditures and other expenditures associated with the increase in consumption tax. Separate accounting will apply to consumption tax, and it should not be the case at all that funds are allocated to so-called general expenditures. This is also indicated in the June final draft, which I believe is disclosed to the public. Naturally, it will be taken into account that when the consumption tax is increased, financial support will need to be provided for the inevitable increase in expenditures related to commodity procurement associated with the increase in the consumption tax rate. However, separate accounting will apply to consumption tax, and it should not be the case that this financial support will come directly from the portion of the consumption tax increase. This is set forth in the June final draft. The consumption tax revenue, excluding revenues from existing local consumption taxes, will be allocated to fund social security programs. As such, separate accounting also means that the revenue will not be allocated to procurement other than social security.

(Abridged)