Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The organising committees for the Olympic Games
• The ministerial meeting on security
• The countermeasures against contaminated water
• The consumption tax

REPORTER: I have a question regarding the Tokyo Olympics. The organising committees for the Olympic Games is expected to be set up within five months. What kind of people is the Government looking for to join the organizing committee? What kind of roles do you want them to fulfill? Could you please share with us your thoughts if any?

CHIEF CABINET SECRETARY SUGA: The Olympic organizing committee is supposed to be established within five months from the date that the city has been chosen as the host venue. The members are supposed to be selected by the Japanese Olympic Committee (JOC) and the Tokyo Metropolitan Government (TMG). In order to make the Games seven years later a success and to ensure that the Games are outstanding for the people of Japan, the Japanese Government hopes that individuals who have the proper insight for this cause are selected. In any case, the Government will do its most to cooperate, working with relevant ministries and agencies as well as  the newly created post, the Minister in charge of the Tokyo Olympic and Paralympic Games.

REPORTER: Is it anticipated that serving Cabinet members or politicians on behalf of the Government will join the organizing committee?

CHIEF CABINET SECRETARY SUGA: It was decided from the start that the members of the organizing committee would be determined by JOC and TMG. Therefore, the basic view of the Government is to do whatever it can to give its full support to the organizing committee from the sidelines, and to ensure that the Games are outstanding.

REPORTER: I understand that a short while ago a ministerial meeting on security was convened and that the theme of the meeting was national security strategy. What issues were taken into consideration in conducting the discussions? For example, I believe there is the issue of Japan's defense posture in the East China Sea or a number of other issues you could have discussed. Can you please elaborate to the extent that you are able to?

CHIEF CABINET SECRETARY SUGA: Relevant Cabinet members met and exchanged views on the general direction in which to move to establish the national security strategy and so forth. Due to the nature of the matter, I would like to refrain from going into the specifics.

REPORTER: What is your view regarding whether or not to include in the strategy, allowing the exercise of the right to collective self-defense?

CHIEF CABINET SECRETARY SUGA: Views were exchanged regarding the overall way forward and the overall picture, including this issue you have noted. Basically, that was how the meeting went.

REPORTER: Regarding the topic of contaminated water measures, there is a proposal surfacing within the ruling parties to establish a special measures act concerning contaminated water issues. Do you think it is better that the Cabinet proposes this act or Diet members?

CHIEF CABINET SECRETARY SUGA: In any case, the Government has recently announced that it would play a proactive role in fundamentally settling the contaminated water issue without leaving the task up to Tokyo Electric Power Company (TEPCO). In this context, the Basic Policy for the Contaminated Water Issue was approved on September 3. The current basic view of the Government is that it will make all efforts to deal with this issue, while working closely with the ruling parties in accordance with the Basic Policy.

REPORTER: During today's meeting of the Research Commission on Natural Resources and Energy Strategy of the Liberal Democratic Party (LDP), a draft proposal was presented of the bill for the special measures act, which would make measures to prevent leakages of contaminated water a project directly controlled by the Government. What is your assessment of this move?

CHIEF CABINET SECRETARY SUGA: Contaminated water is a matter of critical urgency. I  assume that the party proposed this draft from the perspective that concerted efforts are needed to deal with the situation. As for the Government, as I noted moments ago, the Basic Policy for the Contaminated Water Issue was approved on September 3. It has been decided that the Government will play a proactive role in installing frozen soil walls and implementing other measures. Accordingly, the Government will take steps to deal with the contaminated water issue while working closely with the ruling parties.

REPORTER: Along with contaminated water, the Prime Minister has also declared that the Government will settle the decommissioning issue. Within the ruling parties, various opinions have been raised regarding the scheme or framework for proceeding with the decommissioning work - for example, the creation of a decommissioning agency or the nationalization of TEPCO. What is the Government's reaction to the discussions taking place at the Project Team (PT) of the ruling parties, and how does the Government intend to move forward?

CHIEF CABINET SECRETARY SUGA: With regard to decommissioning, the Prime Minister has instructed TEPCO to decommission Daiichi Nuclear Power Station's Units 5 and 6 amid the strong requests received from the local people. I believe the Prime Minister issued this instruction yesterday with hopes that TEPCO will focus first on and give priority to contaminated water measures. At any rate, as I mentioned moments ago, the fact of the matter is that the Government and TEPCO will exert all possible efforts to do whatever they need to do respectively for intercepting the contaminated water.

REPORTER: Then, with regard to decommissioning, are you saying that talks about establishing a decommissioning agency or various schemes concern the next phase, that the Government will first deal with the immediate issues at hand and then move on to the mid- to long-term challenges?

CHIEF CABINET SECRETARY SUGA: Yes. First, we will exert all efforts towards the contaminated water measures. For example, by decommissioning the units, space will be created. In this area, tanks, for instance, can be placed. Various possibilities can be conceived. For now, our focus is on contaminated water measures.

(Abridged)

REPORTER: I would like to ask a question related to consumption tax. Not some but nearly all news agencies have reported that the Prime Minister has already decided on a policy to increase the tax to 8% in April. I do not know whether it is my lack of journalism skills or what, but I have not yet been able to confirm whether or not this is true. When t did the Prime Minister actually decide on this and what did he instruct or inform you, his close aide?

CHIEF CABINET SECRETARY SUGA: To be honest, I believe the Prime Minister has not made a decision. When the four of us - the Prime Minister, the Deputy Prime Minister, Minister Amari, and myself - met, the Prime Minister explained that he will ultimately make a decision taking into account various measures if the consumption tax is increased in view of the comprehensive package of measures.  I have not heard anything from the Prime Minister about him having already made a decision. As I have stated from before, I believe the Prime Minister himself will make a decision after reviewing, in October, the Bank of Japan's Short-term Economic Survey of Enterprises in Japan (Tankan) and other figures as well as countermeasures. Realistically speaking, the Prime Minister has not yet made a decision. I believe the Prime Minister will wait and see until the package of measures comes out.

REPORTER: I believe the Prime Minister and Minister of Finance Aso met the other day as well as today. During their meetings, I believe the Prime Minister gave instructions about ending the special corporate tax for reconstruction one year earlier than planned and about reviewing whether or not the effective tax rate can be implemented from FY2015 for example. I believe the Prime Minister issued instructions as such which are highly tied to Abenomics. Is my understanding correct that if these matters can be cleared up, then the environment will be set for Abenomics to go ahead with the consumption tax increase?

CHIEF CABINET SECRETARY SUGA: First of all, the Prime Minister has not yet made any specific decisions about what to do with the consumption tax. At the same time, there are various news reports floating around, including about ending the special corporate tax for reconstruction one year earlier. However, there is no way that the 25 trillion yen in the budgetary framework for reconstruction will be slashed. The full 25 trillion yen will be allocated for the budgetary framework. Also, I would like everyone to reflect on the changes that have taken place since the Prime Minister assumed office. A year ago around this time, the Japanese economy had minus 3.5% annualized growth in the July-September quarter. In the April-June quarter this year, the economy had positive 3.8% annualized growth. I believe this is a dramatic transformation. Furthermore, for example, as to the Japan Tobacco (JT) shares which the Government said will be allocated towards the budgetary framework for reconstruction, due to the increase in stock prices, whereas the amount initially budgeted was 500 billion yen, we have been able to secure 970 billion yen. Furthermore, tax revenue has increased. Breaking free from deflation is the top priority of the Prime Minister. Therefore, I believe the Prime Minister is taking all of these factors into consideration in thinking about what is most necessary to exit deflation, his number one priority.     

REPORTER: You said that there is no way that the budgetary framework for reconstruction will be slashed. You are not talking about whether or not the special corporate tax for reconstruction may end one year earlier. You are saying that there is no way that the budgetary framework for reconstruction itself will be slashed?

CHIEF CABINET SECRETARY SUGA: Yes. There is no way that the 25 trillion yen will be slashed.

REPORTER: Sorry, I have another question. I realize that you have not yet made a decision about the special corporate tax for reconstruction and the effective tax rate. Based on this recognition, I would like to ask what you think about the strong criticisms or opinions against ending the special corporate tax for reconstruction one year earlier than planned, which are heard from, for example, the Ministry of Finance and both of the ruling parties, the LDP's Research Commission on the Tax System and the New Komeito Party?

CHIEF CABINET SECRETARY SUGA: I am only aware about what has been reported in the newspapers. In fact, nothing has been reported to us directly. However, as I mentioned moments ago, thanks to the "Abenomics" economic policy of Prime Minister Abe, we have been able to allocate 970 billion yen rather than the 500 billion yen that was expected for the budget. In addition, thanks to the Abenomics policy, there is the portion from the increase in tax revenue and much more. I believe you all understand these things that have actually taken place. The Nikkei Stock Average is also about to rise to 15,000. Compared to the immediate aftermath of the Great East Japan Earthquake, stock prices have risen around 60 or 70%. In this context, the Prime Minister is now reviewing what would be most effective for breaking free from deflation for the first time in 15 years if the consumption tax is increased.

(Abridged)