Diet opens, but funds scandals could threaten passage of bills+

TOKYO, Jan. 18 Kyodo -
The Diet commenced an ordinary session Monday but funds scandals involving
Prime Minister Yukio Hatoyama and his Democratic Party of Japan's No. 2, Ichiro
Ozawa, could hamper the government's efforts to secure smooth passage of
budgets and other bills.
The Diet convened for a 150-day ordinary session through June 16 for the first
time under the four-month-old government, just after three former and current
aides of DPJ Secretary General Ozawa were arrested over the weekend in
connection with a shady land purchase.
The Hatoyama government is aiming to secure passage of a second extra budget
for fiscal 2009 ending in March, a budget for fiscal 2010 from April and other
related bills as soon as possible so that it can implement key campaign
promises including monthly allowances for families with children.
''I believe it is most important for the coalition government to demonstrate
its stance that it is trying to protect people's lives, by getting (the
budgets) through parliament,'' Hatoyama told reporters Monday morning.
Speaking before the Diet on the second extra budget, which was submitted
earlier in the day, Finance Minister Naoto Kan indicated that the economy has
shown signs of picking up, but that the situation remains bleak amid risks of
deflation and a further deterioration in labor conditions.
The extra budget will finance a fresh 7.2 trillion yen stimulus package,
including employment subsidies, incentives for consumers to buy environmentally
friendly products and expanded credit guarantees for small and midsize firms.
''The earliest possible passage of this extra budget and related bills is
necessary so that we can address the current severe economic situation and
ensure an economic recovery,'' Kan said.
Kan, who is also deputy prime minister, assumed the post of finance minister on
Jan. 7 to replace Hirohisa Fujii who stepped down citing health reasons.
The government is seeking to ensure the passage of the extra budget by the end
of this month.
But the passage may not go so smoothly, as the opposition bloc led by the
Liberal Democratic Party, which was forced from power in the August election
after ruling the country for almost half a century, is set to pursue the funds
scandal linked to Ozawa as well as a separate case involving Hatoyama during
the Diet session.
Some opposition lawmakers have suggested that Ozawa should be summoned to
provide a full account.
Natsuo Yamaguchi, head of the opposition New Komeito party, told a party
meeting, ''It is presumptuous for the leader of the main ruling party and its
secretary general, who are both embroiled in scandals, to make an appeal for
policies.''
''Mr. Ozawa has yet to make any convincing explanations, and we will strongly
press him to do so,'' he said.
Ozawa said at the DPJ's annual convention Saturday that no dubious money was
involved in the land purchase by his funds management body as suspected by
prosecutors and that he will remain in his post despite the arrests, vowing to
take on the prosecutors.
The coalition government of the DPJ, the Social Democratic Party and the
People's New Party controls an overwhelming majority in the powerful House of
Representatives and a combined majority in the House of Councillors as well.
But if the scandals erode voter support and shake the unity of the DPJ or the
three ruling parties, the prospects of the DPJ securing passage of bills will
become dim.
Among other issues, the opposition camp plans to grill the government over its
proposed issuance of new bonds worth a record 44.30 trillion yen and other
economic and fiscal policies, which the opposition claims are not in line with
the DPJ's campaign manifesto, and the stalled issue on the relocation of the
U.S. Marine Corps' Futemma Air Station in Okinawa Prefecture.
During the ordinary session, the government plans to submit a total of 61 bills
and 13 treaties to parliament.
The bills include legislation to implement measures such as the allowances for
childrearing families and free tuition at public high schools, to review the
postal privatization reform initiated by former Prime Minister Junichiro
Koizumi of the LDP and to increase the number of lawmakers serving in the
government to ensure greater control over the policymaking process.
The government is also considering submitting other bills including one to
grant permanent foreign residents the right to vote in local elections.
==Kyodo