Mr. Noda lays out tasks
(From The Japan Times October 29 issue)

In his policy speech Oct. 28, Prime Minister Yoshihiko Noda listed three big issues facing Japan ― reconstructing the areas devastated by the March 11 quake and tsunami, bringing the Fukushima nuclear crisis under control and accelerating the recovery of the Japanese economy.

He said that to do these things, the Diet must pass the third supplementary budget for fiscal 2011, topping ¥12 trillion, as soon as possible. Nobody would oppose the generalities he mentioned. But the Diet and people should carefully look at and evaluate his policies.

Mr. Noda said that Japan will need at least an estimated ¥20 trillion to reconstruct the disaster-hit areas over the coming five years. The Diet must consider whether this estimate is correct and scrutinize the supplementary budget to prevent unwise use of public money in the reconstruction. He said that he will help raise funds for the extra budget by trying to increase non-tax revenues while trimming wasteful spending. But his remarks cannot hide the fact that he has made up his mind to push large-scale tax increases for the sake of the reconstruction. He should pay attention to the possibility that tax increases will weaken the economy, thus lead to a decrease in tax revenues and eventually delay solving the nation’s financial mess. He should consider ways other than tax hikes to raise necessary funds, including issuing bonds whose redemption period spans several decades.

As to the Fukushima nuclear fiasco, it is urgent for the government to thoroughly decontaminate areas contaminated with radioactive substances, as Mr. Noda said. He should tell Tokyo Electric Power Co. to simplify the procedure for victims to get compensation. They are angry at long, complicated forms they have to fill out.

Mr. Noda said that he will reach a final conclusion at an early date on whether Japan will take part in talks for the Transpacific Strategic Economic Partnership agreement. But he must be careful about the issue because the TPP, a comprehensive free-trade scheme, will drastically change the shape of the Japanese economy and society. Mr. Noda should also realize that increasing domestic demand is more helpful to the economy than increasing exports.

日本語の抄訳はウィークリー11月5日号のP18に掲載されています。