Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The possibility of dissolution of the House of Representatives
• The timing of the consumption tax increase
• The entry denial by the Immigration Control and Refugee Recognition Act
• The movement of the exchange rate

REPORTER: I have a question regarding the dissolution of the House of Representatives. According to some media reports, while in Beijing, the Prime Minister expressed his intention to dissolve the House of Representatives to party executives. Is this true?

CHIEF CABINET SECRETARY SUGA: I have stated time and time again that any decision on dissolution is entirely up to the discretion of the Prime Minister. I find what you say hard to imagine.

REPORTER: I have a related question. Some parts of the media have also reported that the Prime Minister decided to postpone the consumption tax increase to 10% by a year and a half, from October 2015 to April 2017. Is this true?

CHIEF CABINET SECRETARY SUGA: That too is inconceivable. From what I understand, there is no change in the Prime Minister’s intention to make this decision based on the first and second preliminary estimates of GDP as I stated before.

REPORTER: My question concerns the reduced tax rate for daily necessities. New Komeito and others are urging the Government to implement a reduced tax rate system when the consumption tax rate is increased to 10%. Can you please once again explain the view of the Government?

CHIEF CABINET SECRETARY SUGA: It was determined at a meeting of the Tax Commission at the end of last year that the consultative meeting of the ruling parties on the tax system would study this issue of reduced tax rates, while taking into account the outline of the tax reform. The Government will be following the progress of the reviews undertaken by the ruling parties.

REPORTER: I have a related question. Even as December approaches, which is when the Prime Minister will be determining whether or not to raise consumption tax rate to 10%, the discussions on the implementation of the reduced tax rate have been slow and have not made headway. What is your opinion? Can the reduced tax rate system be implemented in time?

CHIEF CABINET SECRETARY SUGA: That is not a question for me. The ruling parties are the ones studying this matter and I ask that you please direct your question to them.

REPORTER: Dissolution of the House of Representatives or raising the consumption tax rate to 10% are critical issues. Whatever the Prime Minister decides, will he be explaining his decision to the public?

CHIEF CABINET SECRETARY SUGA: As has been stated to date, the Prime Minister will make a decision by the end of the year, after considering the first and second preliminary estimates of GDP.

REPORTER: All over the front pages of today’s newspapers and on TV news programs, there are reports that the Prime Minister will dissolve the House of Representatives and hold a general election in relation to the consumption tax increase. You always explain that dissolution is entirely up to the discretion of the Prime Minister. Nonetheless, can you please share your impressions given the current state of events?

CHIEF CABINET SECRETARY SUGA: As I have stated repeatedly, I believe I should not make comments in my capacity as Chief Cabinet Secretary, as any decision on dissolution is entirely up to the discretion of the Prime Minister.

(Abridged)

REPORTER: I would like to change the subject. Some media reports allege that a male singer from the Republic of Korea (ROK) was denied entry into Japan at Haneda Airport because he had sung a song in Takeshima. If this is true, can you give us any details?

CHIEF CABINET SECRETARY SUGA: I am aware of the media reports. The Ministry of Justice is deemed to have taken proper steps in accordance with laws and ordinances vis-à-vis this particular individual on November 9. As this is an immigration matter involving a private citizen and as it concerns personal information, I would like to refrain from disclosing the details. I have been informed that the individual was denied entry into Japan based on valid reasons provided for in the Immigration Control and Refugee Recognition Act. The cause had nothing to do with the individual having sung a song in Takeshima or anything of that nature.

REPORTER: In that case, which provision of the Immigration Control and Refugee Recognition Act did the individual infringe or was applied for his denial of entry to Japan?

CHIEF CABINET SECRETARY SUGA: As this is a private matter and personal information is concerned, I would like to refrain from disclosing the details. In any case, the individual was denied entry into Japan based on valid reasons provided for in the Immigration Control and Refugee Recognition Act. Therefore, this decision was made.

REPORTER: Then singing in Takeshima was not the reason and there was another reason? Is that correct?

CHIEF CABINET SECRETARY SUGA: Yes.

REPORTER: These are the kinds of questions you usually cannot answer, but if I may I would first like to ask the more difficult question, which is about the exchange rate. The yen has been depreciating, and at one point, it was 116 yen to the dollar in overseas markets. Can you please comment if you can?

CHIEF CABINET SECRETARY SUGA: As always, I would like to refrain from making comments to avoid causing any unnecessary impact.

REPORTER: The yen’s movements are always fluctuating, but recently, we have seen sharp fluctuations. Many analysts say this is not a very desirable situation. Do you have any comments in this regard?

CHIEF CABINET SECRETARY SUGA: We will monitor the situation closely.

REPORTER: My second question is about stock prices. The stock market again reached a new high for the year. While the weak yen is also playing a factor, are the high stock prices a reflection of the extent to which the people do not want the Government to increase the consumption tax?

CHIEF CABINET SECRETARY SUGA: I do not really know the reason why the stock prices reached a new high. In any case, as I always say, higher is better than lower.