Press Conference by the Deputy Chief Cabinet Secretary (Excerpt)

Opening Statement by Deputy Chief Cabinet Secretary Hagiuda

DEPUTY CHIEF CABINET SECRETARY HAGIUDA: I would like to give an overview of the Cabinet meeting. The meeting approved 29 general and other measures, including the announcement regarding the regular election of the members of the House of Councillors, as well as the promulgation of legislation, a cabinet order, and personnel decisions. With regard to statements by ministers, Minister Ishihara and Prime Minister Abe made a statement concerning the “Basic Policy on Economic and Fiscal Management and Reform 2016” and the “Japan Revitalization Strategy 2016;” Minister Ishiba concerning the “Basic Policy for Overcoming Population Decline and Vitalizing Local Economy 2016;” Minister Kato and Prime Minister Abe concerning “Japan’s Plan for Dynamic Engagement of All Citizens;” Minister Iwaki, acting Minister of State for Regulatory Reform, concerning the “Implementation Plan for Regulatory Reform;” the Chief Cabinet Secretary concerning the status of the enactment of legislation submitted by the Cabinet; and Prime Minister Abe concerning acting Ministers while Ministers in charge are away on overseas visits, among other matters.

Today, a Ministerial Meeting on Okinawa was convened before the Cabinet meeting. At the meeting, Minister of Defense Nakatani briefed that he would be holding talks with Secretary of Defense Ashton Carter of the United States on the margins of the Shangri-La Dialogue. The Ministers reaffirmed that Japan would strongly request the United States to prevent tragic incidents like the incident in Okinawa Prefecture from happening again. In addition, the Ministers agreed to swiftly compile the “Crime Prevention Measures in Okinawa Prefecture” that are currently being reviewed based on the instructions of Prime Minister Abe.

Q&As

REPORTER: I would like to ask about the “Basic Policy on Economic and Fiscal Management and Reform” that was decided today. The Basic Policy states both that the increase of the consumption tax rate would be re-postponed, and that the goal to achieve a primary surplus by 2020 would be maintained. How will the Government tie together decreases in revenue and fiscal rehabilitation?

DEPUTY CHIEF CABINET SECRETARY HAGIUDA: As the Prime Minister stated at his press conference yesterday, the consumption tax rate increase would be postponed by two and a half years, but we are still holding up the banner of fiscal soundness and the goal to achieve a primary surplus by 2020 would be firmly maintained. Due to the efforts made under the Abe administration, we are set to achieve the goal of halving the FY2015 primary deficit. We remain committed to undertaking expenditure reform while revitalizing the economy to achieve our goal of realizing a primary surplus by FY2020. The details of the concrete plan will be laid out in consultation with the various ministries.

REPORTER: I have a related question. You stated that the concrete plan would be decided in the coming weeks. However, I imagine that increases in tax revenue are needed to maintain your primary balance goal. What kind of a roadmap do you envision for this growth policy?

DEPUTY CHIEF CABINET SECRETARY HAGIUDA: The Prime Minister also stated at his press conference yesterday that he would aim to exit deflation by implementing Abenomics in full throttle. At the same time, the Prime Minister would aim to increase tax revenues. We will comprehensively mobilize our policies so far to steadily increase tax revenues and work towards achieving a primary surplus by FY2020. That is all.

(Abridged)

REPORTER: I have a question regarding China’s development of natural resources in the East China Sea. On the 1st, the Ministry of Foreign Affairs released aerial photos of the East China Sea. It has once again come to light that China is proceeding with the development of gas fields. Can you please share the comments of the Japanese Government and tell us what responses it will be taking?

DEPUTY CHIEF CABINET SECRETARY HAGIUDA: Since the beginning of this year, the Government has confirmed that a flame was emitted from the 8th structure and that superstructures were installed on the 11th and 12th structures. The photos have just been updated on the website of the Ministry of Foreign Affairs. Under the circumstances pending maritime boundary delimitation between Japan and China in the East China Sea, it is extremely regrettable that China is advancing unilateral development in the relevant seas despite Japan’s repeated protests. Japan immediately lodged protests to China through diplomatic channels. Every time Japan has found out about China’s related activities, Japan has strongly requested China to cease its unilateral development, and Japan will continue to request this. At the same time, at the Japan-China Summit Meeting held in November of last year, the two sides agreed to aim to resume consultations based on the June 2008 agreement concerning the development of natural resources in the East China Sea, the so-called 2008 Agreement. On this basis, Japan has made various requests to China through diplomatic channels. Japan will continue to request China to swiftly resume the consultations to implement the June 2008 Agreement and to swiftly implement the Agreement.

(Abridged)