Fukuda vows to continue reform in Japan
Saturday, 22 September 2007
Michiyo Nakamoto from Tokyo
Yasuo Fukuda, the leading contender to succeed Shinzo Abe as Japanese prime minister, vowed at the weekend to carry on with a reform programme and indicated he would consider raising the consumption tax in order to meet increased social welfare costs.
"We must continue to pursue structural reforms," Mr Fukuda, a senior member of the Liberal Democratic party, said at a press conference.
"The Japanese economy was able to return to a recovery path as a result of structural reforms" initiated by the former prime minister, Junichiro Koizumi, Mr Fukuda said. As chief cabinet secretary under Mr Koizumi, Mr Fukuda is closely associated with the reform programme,
But Mr Fukuda tempered his commitment to reforms by saying that he might "carefully address problems arising from reforms" in order to alleviate the negative impact of change on regional economies.
Mr Fukuda's comments came as he strengthened his position over the weekend when Taro Aso, his only rival for the party presidency, virtually admitted his chances were slim.
The two are competing to succeed Mr Abe as leader of the LDP and thereby become Japan's next prime minister.
The LDP will hold the election, in which 528 party members will vote, next Sunday.
Asked to comment on the likelihood that Mr Fukuda would win the election, Mr Aso said: "Yes, but if I drop out, the party would be criticised as having chosen a prime minister through backroom deals.
"I have decided to run if only for the sake of holding an open election," he said.
Mr Fukuda, who has won the support of factions representing a majority of LDP Diet members, is seen to be a fiscal conservative.
He indicated he would maintain the government's policy of cutting public works spending by 3.0 per cent and consider raising the consumption tax if spending cuts were insufficient to make up for higher social welfare costs.
"If spending cuts cannot cover [increased costs] it will obviously be necessary to consider other means, including raising the consumption tax," he said, without indicating the likely timing of such an increase.
But the LDP will face difficulty calling for a near-term rise in the consumption tax, given that the Upper House is controlled by the opposition Democratic Party of Japan, which is opposed to raising the consumption tax from its present 5.0 per cent level.
Both Mr Fukuda and Mr Aso emphasised the importance of extending the anti-terrorism measure, which allows Japan's Self Defence Forces to provide logistical co-operation with US forces' activities in and around Afghanistan.
But Mr Fukuda, a foreign policy dove, said Japan should adopt a flexible stance in dealing with North Korea. "We must devise some means to convey to the other side our desire and readiness to conduct negotiations," he said.
He also vowed not to visit the Yasukuni shrine, which commemorates Japan's war dead, including 14 war criminals, and suggested building a secular, national alternative memorial. Past leaders' visits to the controversial shrine have angered Japan's neighbours.
Under syndication arrangement with FE
Yasuo Fukuda, the leading contender to succeed Shinzo Abe as Japanese prime minister, vowed at the weekend to carry on with a reform programme and indicated he would consider raising the consumption tax in order to meet increased social welfare costs.
"We must continue to pursue structural reforms," Mr Fukuda, a senior member of the Liberal Democratic party, said at a press conference.
"The Japanese economy was able to return to a recovery path as a result of structural reforms" initiated by the former prime minister, Junichiro Koizumi, Mr Fukuda said. As chief cabinet secretary under Mr Koizumi, Mr Fukuda is closely associated with the reform programme,
But Mr Fukuda tempered his commitment to reforms by saying that he might "carefully address problems arising from reforms" in order to alleviate the negative impact of change on regional economies.
Mr Fukuda's comments came as he strengthened his position over the weekend when Taro Aso, his only rival for the party presidency, virtually admitted his chances were slim.
The two are competing to succeed Mr Abe as leader of the LDP and thereby become Japan's next prime minister.
The LDP will hold the election, in which 528 party members will vote, next Sunday.
Asked to comment on the likelihood that Mr Fukuda would win the election, Mr Aso said: "Yes, but if I drop out, the party would be criticised as having chosen a prime minister through backroom deals.
"I have decided to run if only for the sake of holding an open election," he said.
Mr Fukuda, who has won the support of factions representing a majority of LDP Diet members, is seen to be a fiscal conservative.
He indicated he would maintain the government's policy of cutting public works spending by 3.0 per cent and consider raising the consumption tax if spending cuts were insufficient to make up for higher social welfare costs.
"If spending cuts cannot cover [increased costs] it will obviously be necessary to consider other means, including raising the consumption tax," he said, without indicating the likely timing of such an increase.
But the LDP will face difficulty calling for a near-term rise in the consumption tax, given that the Upper House is controlled by the opposition Democratic Party of Japan, which is opposed to raising the consumption tax from its present 5.0 per cent level.
Both Mr Fukuda and Mr Aso emphasised the importance of extending the anti-terrorism measure, which allows Japan's Self Defence Forces to provide logistical co-operation with US forces' activities in and around Afghanistan.
But Mr Fukuda, a foreign policy dove, said Japan should adopt a flexible stance in dealing with North Korea. "We must devise some means to convey to the other side our desire and readiness to conduct negotiations," he said.
He also vowed not to visit the Yasukuni shrine, which commemorates Japan's war dead, including 14 war criminals, and suggested building a secular, national alternative memorial. Past leaders' visits to the controversial shrine have angered Japan's neighbours.
Under syndication arrangement with FE