Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Fujimura

• An overview of the Cabinet meeting
• The program for accelerating Japan's rebirth
• The 27th meeting of the Nuclear Emergency Response Headquarters
• General power saving efforts during this winter
• The Ministerial Committee on the Formulation of the Budget

CHIEF CABINET SECRETARY FUJIMURA: Firstly, I would like to give an overview of the Cabinet Meeting. The meeting approved 48 general measures, cabinet orders and personnel decisions. With regard to statements by ministers, Minister Maehara made a statement concerning the program for accelerating Japan's rebirth, the Minister of Finance made a statement concerning the decision on the use of Government reserves for economic crisis response and regional revitalization, and Deputy Prime Minister Okada made a statement concerning the promotion of regulatory and institutional reform. These three statements were all related. Then Prime Minister Noda also made a statement concerning the program for accelerating Japan's rebirth. On unrelated matters, the Minister of Education, Culture, Sports, Science and Technology made statements and expressed her opinion on three reports; firstly, the report released by the Japan Society for the Promotion of Science (JSPS) concerning the fiscal 2011 Funding Program for Next Generation World-Leading Researchers (NEXT Program) and Postdoctoral Fellowships for Research Abroad; secondly, the report released by the JSPS concerning the fiscal 2011 Grants-in-Aid for Scientific Research (KAKENHI) and finally the report by the National Agency for the Advancement of Sports and Health concerning usage of profits related to the fiscal 2011 Sports Promotion Lottery. The Minister for Internal Affairs and Communications then made a statement concerning the results of the labor force survey, consumer price index and the household budget survey; the Minister of Health, Labour and Welfare made a statement concerning the national ratio of jobs to applicants (October 2012); Minister Nakatsuka made a statement concerning the implementation of Disabled Persons' Week FY2012; and Prime Minister Noda made a statement concerning acting Ministers while Ministers in charge are away on overseas visits.

During ministerial discussions, Minister Nakatsuka made a statement concerning the priority issues to be addressed to facilitate the development of specific Private Finance Initiative (PFI) projects.

Next, I would like to speak on the decisions made in relation to the program for accelerating Japan's rebirth. The Cabinet meeting approved the program for accelerating Japan's rebirth and the utilization of Government reserves for economic crisis response and regional revitalization. The program to accelerate Japan's rebirth is a stimulus package consisting of financial measures that are to be seamlessly implemented over three stages in addition to other non-financial measures. These measures are designed to fully address concerns over the outlook of the economy and to accelerate the initiatives implemented to swiftly break out of deflation and revitalize the economy. A decision to utilize Government reserves for economic crisis response and regional revitalization has been made to enable the acceleration of policies identified by the Comprehensive Strategy for the Rebirth of Japan in the form of a second round of measures, which follows the first round of the economic measures implemented on October 26. This decision also enables the implementation of the policies necessary for quick recovery and reconstruction from the Great East Japan Earthquake, and implementation of those policies related to the development of large-scale disaster prevention and mitigation. These measures are all designed to ensure the greatest result with limited financial resources. Approximately 1.3 trillion yen will be sourced from Government resources for the first round of economic measures and the second round of measures to be implemented this time around, contributing to a total of approximately 2 trillion yen. The overall stimulus, including financing provided to small and medium sized enterprises will total approximately five trillion yen and is expected to contribute approximately 0.4% to GDP. I understand that Minister Maehara and Minister Jojima, who are both responsible for this matter, will explain the details later.

(Abridged)

Next, I would like to speak on the 27th meeting of the Nuclear Emergency Response Headquarters held prior to the Cabinet meeting. Firstly, I reported on the changes to the members of the Nuclear Emergency Response Headquarters following the amendment of the Act on Special Measures Concerning Nuclear Emergency Preparedness. Following this, a decision to revise the evacuation zones and restricted areas in Okuma Town was made. These changes will come into effect at 12 am on Monday, December 10, with this schedule being chosen with consideration of the time required to inform residents. Minister Hirano discussed the issues concerning the reconstruction of areas of which long term evacuation is inevitable and discussed possible ways to address these issues. Minister Nagahama reported on the progress and strengthening of a scheme for driving decontamination efforts, special waste treatment and the establishment of interim storage facilities. The Chairman of the Nuclear Regulation Authority, Shunichi Tanaka, reported on the designation of specified reactor facilities to be installed at the Fukushima Daiichi Nuclear Power Station. Finally, the Prime Minister stated that with the understanding that many people are still forced to live away from their homes after more than a year and eight months since the accident, we must work on the reconstruction of Fukushima without creating political vacuum.

I would also like to speak on efforts being made to reduce power consumption this winter. As per "This Winter's Electricity Supply-Demand Measures" decided at the joint meeting of the Electricity Supply-Demand Review Meeting and the Energy and Environment Council held on November 2, as of December 3, which is next Monday, we will commence general power saving efforts, without a specific numerical target, in all regions of Japan with the exception of Okinawa. As for areas serviced by Hokkaido Electric Power Company, from December 10, or the Monday after next, we will commence power saving efforts targeting reductions of at least 7%. I am aware that this request comes after previously asking citizens and industry to reduce consumption but we once again would appreciate your cooperation in voluntary power saving efforts during this winter. The Government is determined to ensure as much as possible that there is sufficient supply capacity and we will make every effort to deliver carefully thought-through responses as required at the appropriate times, including the provision of information related to power consumption reductions through cooperation with municipalities and power companies.

I would like to speak on one last item. The Ministerial Committee on the Formulation of the Budget was held today after the Cabinet meeting. The committee decided on the Basic Principles of the Budget Formulation. With the understanding that it is necessary to strictly limit spending to the 71 trillion yen cap and boldly reformulate the budget in order to implement the Comprehensive Strategy for the Rebirth of Japan and to ultimately break out of deflation and reinvigorate the economy, the draft outline of the Basic Principles establishes policies to prioritize budget allocations to the priority fields of green; life; and agriculture, forestry and fisheries; as well as a basic approach to FY2013 budget formulation. I believe that Minister Maehara is able to discuss the details of this topic.

(Abridged)

Q&As

• Adoption of the UN General Assembly resolution regarding the Status of Palestine in the UN
• The National Council on Social Security System Reform

REPORTER: I would like to ask a question regarding Palestine. The United Nations General Assembly granted Palestine non-member observer state status and I believe that Japan voted in favor of this decision. Could you share with us how the Government views this decision and what impact the Government believes it will have on future peace?

CHIEF CABINET SECRETARY FUJIMURA: As you know, Japan voted in favor of this resolution and explained its reasons for voting this way. Japan has always supported the two-State solution where Israel and a future independent Palestinian State can peacefully and securely coexist. It was from this perspective that Japan voted in favor of the resolution. Following the historic passing of this resolution, Japan will strongly encourage Palestine to make even greater efforts to achieve peace in the Middle East. Additionally, Japan would like to ask prudence from Palestine with respect to conduct, such as accession to international organizations, an action which might negatively affect the prospect for the immediate recommencement of direct negotiations. Japan intends to continue to cooperate with the U.S. and the Arab nations and take an active approach in advancing peace in the Middle East.

REPORTER: I would like to ask a question on a related topic. The U.S. is against this resolution and commented that it may have a negative impact on peace. I believe there is a lot to consider in the interests of Japan-U.S. relations, but how will the Japanese Government cope with the difference of opinions on the influence on peace and work with the U.S.?

CHIEF CABINET SECRETARY FUJIMURA: Japan viewed the resolution as being very moderate, or flexible, and therefore decided to vote in favor of this resolution after explaining the reasons for its vote, as I stated earlier. However, this decision does not influence our determination to proactively support the advancement of peace in the region through continuing cooperation with the U.S. and the Arab nations.

(Abridged)

REPORTER: Discussions by the National Council on Social Security System Reform commenced today. I understand that the council was established after consultations among the three parties, namely the Democratic Party of Japan (DPJ), the Liberal Democratic Party (LDP) and the New Komeito. Could you share with us your outlook on how this cooperation of the DPJ, LDP and New Komeito will function after the election?

CHIEF CABINET SECRETARY FUJIMURA: The first meeting of the National Council on Social Security System Reform was held today. I have been informed that a second meeting is being arranged and is to be held before the end of the year. As for after the election, I believe that Deputy Prime Minister Okada also made a comment, but the consultations held among the three parties, which is driving discussion and enabled the formation of the council, is very important. Therefore, of course, we will pursue the continued cooperation of the three parties in relation to this council even after the election.

(Abridged)

REPORTER: I would like to ask a question on a related topic. I understand that this National Council itself is limited to one year and I believe that this one year was decided after the development of a rough schedule. However, now that it has already been almost four months since the bill was passed, it appears that the schedule for these discussions is quite tight. What is the Government's opinion?

CHIEF CABINET SECRETARY FUJIMURA: The Council will have to work within the remaining time, a little less than nine months, but I understand that as per the basic principles of the reforms, the Council is to address the remaining issues of the four fields of social security after holding the first discussions today. The Council is to complete its work by August 21 next year and I believe that whether the coming nine months leading up to that date seems long or short will depend on how successful the Council is at conducting lively and constructive discussions.