Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

• An overview of the Cabinet meeting
• The Verification Committee on the Terrorist Incident against Japanese Nationals in Algeria

CHIEF CABINET SECRETARY SUGA: I would like to give an overview of the Cabinet meeting. The meeting approved the draft policy speech by Prime Minister Shinzo Abe to the 183rd session of the Diet as well as three draft speeches. Next, the Fiscal 2013 Economic Outlook and Basic Stance for Economic and Fiscal Management as well as the Fiscal 2013 General Account budget, Special Account budget, and Budgets of Government Agencies were decided. With regard to statements by ministers, the Minister for Foreign Affairs made a statement concerning the draft foreign policy speech to the 183rd session of the Diet. Prime Minister Abe and Minister Amari made statements concerning the management of the progress of the Emergency Economic Measures for the Revitalization of the Japanese Economy. The Minister of Finance made a statement concerning the prompt enforcement of the supplementary budget pursuant to the Emergency Economic Measures for the Revitalization of the Japanese Economy. The Minister for Internal Affairs and Communications made a statement concerning the prompt enforcement of programs by local governments pursuant to the Emergency Economic Measures for the Revitalization of the Japanese Economy. Minister Amari made a statement concerning the Fiscal 2013 Economic Outlook and Basic Stance for Economic and Fiscal Management, and the Minister of Finance made a statement concerning the Fiscal 2013 budget.

Regarding the terrorist attack on Japanese nationals in Algeria, the third meeting of the Verification Committee on the Terrorist Incident against Japanese Nationals in Algeria will be held from 5:00 pm today. The verification report regarding the Government's responses will be compiled at this meeting and will be disclosed after the meeting. Also, the first meeting of the Advisory Council on the Protection of Overseas Japanese Nationals and Overseas Japanese Companies will be convened from 2:30 pm tomorrow, Friday, March 1. The members of the Advisory Council are as shown in the material which has been distributed to you. Members of companies and an international organization who are working actively on the front line overseas as well as experts who are very knowledgeable about foreign affairs and regional situations have joined as members. The Advisory Council is expected to compile recommendations on how to ensure the safety of overseas Japanese nationals and overseas Japanese companies prior to the long national holiday in May at the latest.  

Q&As

• The Verification Committee on the Terrorist Incident against Japanese nationals in Algeria
• The Indices of Industrial Production for January
• The trade statistics for January and energy strategy

(Abridged)

REPORTER: Looking at the members of the Advisory Council, I see Mr. Miyake, the Chair, who I believe is also a member of the Advisory Council on the Establishment of a National Security Council (NSC), which was launched recently. Was this decision to select Mr. Miyake made on the assumption that the Japanese NSC will become a future theme of the Advisory Council?

CHIEF CABINET SECRETARY SUGA: That has nothing to do with it. We asked Mr. Miyake as he has extensive knowledge about crisis management and is a suitable Chair in everyone's eyes.

(Abridged)

REPORTER: According to the preliminary report of the Indices of Industrial Production for January, which the Ministry of Economy, Trade and Industry (METI) released today, industrial production has increased for the second consecutive month. How does the Government see this? 

CHIEF CABINET SECRETARY SUGA: These indices are said to be leading indicators of the economy, so in this sense I believe that the upward revision to the outlook may be an indication of the direction that the economy is headed in. Regarding future prospects, while weakness remains in some areas, I expect that the economy will move towards recovery against the backdrop of the impact of the improvements in the technology environment, economic measures, and financial measures and so on. 

REPORTER: On the other hand, according to the recently released trade statistics of the Ministry of Finance for January, the trade balance was a deficit of 1.629 trillion yen. It is believed that this was due to surging import prices of oil products and liquefied natural gas in response to the further depreciation of the yen. Japan is an energy resource-poor country. How will the Government cope with this sort of side effect of the yen's depreciation?

CHIEF CABINET SECRETARY SUGA: I believe we will have to take measures once we reach a certain point when a variety of problems begin to emerge which affect the lives of the people, for example, kerosene. However, we would like to watch the situation for a while. At the same time, my present thoughts are that the Japanese energy strategy must be examined. 

(Abridged)

REPORTER: Regarding the trade balance, one of the causes of the deficit is the significant increase in the use of crude oil and gas at thermal power stations. In terms of the energy strategy, what is your view regarding the future restarting of operations of nuclear power stations?

CHIEF CABINET SECRETARY SUGA: When I mentioned energy strategy, I was not referring to restarting the nuclear power stations and so on. People ask, is Japan not purchasing at high prices? Is Japan not buying at high prices? As you are also well aware, it is said that Japan pays a Japan premium for gas and oil compared to the rest of the world. I mentioned energy strategy a moment ago in the sense that we need to strategically deal with these issues. As for nuclear power stations, etc., it is as we always respond at the Diet. However, we are now reviewing the energy strategy in terms of being at a point in time when we should think about making strategic purchases with regard to imports.

REPORTER: Related to this, as you stated just now, there is the question of whether Japan purchases at high prices. Indeed, compared to Europe, the U.S., and other countries, the prices differ by several times. While this tendency has of course existed from prior to the Abe administration, what is your analysis as to why prices for Japan are now higher than for Europe?

CHIEF CABINET SECRETARY SUGA: First, I personally believe that there were no strategic measures. Also, I suspect that little effort was made with this comprehensive cost system in place for purchasing electricity. Electricity is purchased under this format, and the expenses are tacked onto the electricity prices paid by the people. This is how I understand the problem. At the recent Japan-U.S. summit meeting, President Obama stated during his talks with the Prime Minister that he would cooperate with beginning exports of shale gas from the U.S. to Japan. This is only a tiny fraction. So also bearing these things in mind, I believe it will become possible to make a variety of strategic purchases. In this sense, it will not merely be METI but also the state that will examine ways to make strategic purchases at prices that are even slightly lower.

REPORTER: Regarding this, you mentioned that the state will make strategic considerations. If so, are there any intentions to establish some kind of council or apparatus under the leadership of the Prime Minister's Office?

CHIEF CABINET SECRETARY SUGA: I would like to do so at the Prime Minister's Office.

(Abridged)