Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The asset management ratio of the GRIF
• The possibility of the increase of the consumption tax rate
• The Secretary General of the NSS’s visit to ROK
• The prospect visit to Japan by President Putin

(Abridged)

REPORTER: I have a question concerning the asset management ratio of the Government Pension Investment Fund (GPIF). There are press reports that suggest the fund is looking to raise its portfolio allocation target for domestic stocks to the mid-20 percent range. What are the facts behind such reports?

CHIEF CABINET SECRETARY SUGA: I am aware of the press reports about this matter, but I am not aware of the background facts. I am aware that revisions to the basic portfolio are decided by GPIF following the advice of asset management specialists after the recent pension asset review. Whatever the case, the Government will continue to aim to achieve reforms that benefit pensioners with a view to exiting deflation based on the recommendations of the experts meeting announced last autumn, as well as on the report of the deliberative council of the Ministry of Health, Labour and Welfare, and in accordance with the Prime Minister’s statements.

REPORTER: I have a question on a different topic. In an interview with the Financial Times, the Prime Minister is quoted as saying with regard to the raising of consumption tax to 10 percent, that, “By increasing the consumption tax rate if the economy derails and if it decelerates, there will be no increase in tax revenues so it would render the whole exercise meaningless.” Was the Prime Minister hinting that there is a possibility the increase to 10 percent may be postponed?

CHIEF CABINET SECRETARY SUGA: I think that the Prime Minister’s comments in the interview were entirely expected and in no way differed from his previous statements on this issue.

REPORTER: So he was not indicating in particular that the increase may be postponed?

CHIEF CABINET SECRETARY SUGA: I don’t think that is the case at all. I think that the Prime Minister was simply stating in an interview the things he speaks about on a daily basis, that is all.

REPORTER: I have a question about a different matter. An announcement has recently been made concerning the schedule for a visit to the Republic of Korea (ROK) by Secretary General of the National Security Secretariat Yachi, during which he is expected to meet with his counterpart in the ROK. Could you tell us the significance and aims of this visit?

CHIEF CABINET SECRETARY SUGA: Since his appointment, Secretary General Yachi has visited various countries to explain Japan’s concepts relating to security. This visit is for the same purpose.

REPORTER: On a related note, given the continuing difficult relations with the ROK, is it expected that this visit will represent another step towards a breakthrough in relations?

CHIEF CABINET SECRETARY SUGA: Rather than referring to a breakthrough, I would have thought it only natural for Secretary General Yachi to make a visit to explain our security concepts to a country that is both our neighbor and friend.

REPORTER: I have a question concerning the visit to Japan of President Putin of Russia. According to some press reports, the Government has abandoned plans for a visit this year. Could you tell us the facts behind these reports?

CHIEF CABINET SECRETARY SUGA: There is no truth to these reports. The Government continues to seek the realization of a visit to Japan by President Putin. However, nothing has been decided yet with regard to the schedule and there is no change in our stance of comprehensively taking a variety of factors into account when considering the visit.

(Abridged)