Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

(Abridged)

Prime Minister Abe will visit the United States from March 30 to April 2 to attend the Nuclear Security Summit. The summit was first held in 2010 at the initiative of President Barack Obama of the United States to address the threat to global security posed by nuclear terrorism. This year will be the fourth summit. It will provide an important opportunity to determine guidelines for measures relating to nuclear security and also enable Japan to send out a positive message about domestic efforts to strengthen nuclear security and Japan’s international contribution to matters relating to the mitigation of nuclear terrorism threats. Using the opportunity provided by the summit, a Japan-United States-Republic of Korea (ROK) trilateral summit meeting is scheduled to be held, and the Government seeks to share its recognition concerning the security environment in East Asia, which is increasing in severity due to such issues as nuclear development by North Korea, and confirm security cooperation in the international community. A Japan-ROK summit is also scheduled to take place and arrangements are also being made to hold a Japan-United States summit meeting.

Q&As

REPORTER: Today the bill for the FY2016 budget has been approved by the Budget Committee of the House of Councillors and is expected to be passed by the Diet by the end of the current fiscal year. Can I ask for your views on the approval of the FY2016 budget today and also in what priority areas the budget has been allocated to realize a society with the dynamic engagement of all citizens?

CHIEF CABINET SECRETARY SUGA: Firstly, it is the case that deliberations on the FY2016 budget bill are proceeding smoothly in the House of Councillors. The draft budget that is currently being deliberated is the largest ever, amounting to 96.7 trillion yen. In addition to measures to expand the number of places for childcare and nursing and secure sufficient human resources, which aim to realize a society with the dynamic engagement of all citizens, the budget also includes measures that will contribute to the realization of a strong economy, including productivity reforms, and infrastructure development that will contribute to the further vitalization of local economies and strengthen growth potential. Based on the recognition that the prompt passage of the draft budget is the most significant economic measure, the Government will continue to make concerted efforts to achieve the passage of the FY2016 budget and related legislation.

REPORTER: I have a related question. Today it is also expected that tax system-related legislation will be passed by the Diet that incorporates the introduction of the reduced tax rate. It is being said that the introduction of the reduced tax rate will increase the burden on businesses, and not just small and medium-sized enterprises, so could you tell us your views on the passage of this legislation and how the Government aims to ensure the smooth introduction of the reduced tax rate?

CHIEF CABINET SECRETARY SUGA: Firstly, it goes without saying that it is important to give due consideration to businesses in the run up to the introduction of the reduced tax rate in April 2017. From this perspective, the draft legislation on the tax system that is currently being deliberated in the Diet clearly stipulates that thorough preparations will be advanced to ensure that the reduced tax rate is introduced without causing confusion. The Government will therefore respond accordingly to facilitate smooth preparations that will be made by businesses.

REPORTER: I have a further related question. The two previous consumption tax increases were not accompanied by the introduction of a reduced tax rate. Given that there are expectations that the simultaneous introduction of a tax increase and a reduced tax rate will increase the burden on businesses and could cause confusion, whereas it has been the case until now that a decision on the timing of the tax increase has been made prior to the formulation of the budget, does the Government consider that on this occasion a decision will have to be brought forward to an earlier date?

CHIEF CABINET SECRETARY SUGA: In any event, the Government is currently advancing preparations towards the introduction of the reduced tax rate and our basic concept is to respond in a way that will ensure that confusion surrounding the introduction does not occur.

REPORTER: Today the Legislation for Peace and Security entered into force. This represents a major change to Japan’s security policy, so can I ask you to share your thoughts with us on the legislation?

CHIEF CABINET SECRETARY SUGA: As I have stated previously on repeated occasions, the Legislation for Peace and Security is essential to prevent conflict and to protect the lives and peaceful livelihoods of the people of Japan amid an increasingly severe security environment surrounding Japan. There is absolutely no change to the Government’s policy of engaging proactively in peaceful diplomacy to ensure peace. Nor is there any change in Japan’s path as a peaceful nation. In addition, the Government seeks to ensure a robust structure is in place that will enable Japan to resolutely protect the lives and peaceful livelihoods of the people of Japan in any situation. I believe that the Government will gain broad public support for the Legislation for Peace and Security as an important means of promoting such policies. Using every opportunity to emphasize the necessity and objectives of the legislation, the Government will continue to provide careful and thorough explanations to gain the understanding of the public.

(Abridged)