Kan aiming to show vision for fiscal reconstruction in 2011+

TOKYO, Dec. 24 Kyodo -
Prime Minister Naoto Kan said Friday that Japan's efforts for fiscal
reconstruction so far have been insufficient so he wants to develop a vision
for the next two or three years, possibly from the beginning of 2011.
''Regarding fiscal consolidation, I don't think it is anywhere near enough,''
Kan said in a group interview with major media outlets after his Cabinet
approved a record-high draft budget of 92.41 trillion yen for the next fiscal
year.
''On such issues, I want to explain many things to the public after the turn of
the year while setting the direction by putting the next two and three years
into perspective,'' Kan said, when asked about how he hopes to restore the
country's finances and the possibility of raising the consumption tax rate.
Kan said he may touch on part of his new vision when he holds his first news
conference of 2011 on Jan. 4.
Kan, however, defended the Cabinet's endorsement of the largest-ever budget for
the year starting April, saying it was needed to revitalize Japan's economy and
society.
He called on opposition parties, which now control the upper chamber of
parliament, to cooperate for the early passage of the budget during the regular
Diet session due to begin in January.
Kan said Japan is facing a host of challenges ranging from fiscal restoration
and social welfare reform to improving its diplomatic skills and they cannot be
tackled by his Democratic Party of Japan alone.
He called for cross-party cooperation on issues deemed to be highly important
for Japan's future and said he wants to ''find some sort of foundation (for
consensus-building) before the upcoming ordinary Diet session.''
The government and the DPJ decided this month to come up with a definite plan
on how to reform the country's social security and tax systems, including the
politically sensitive consumption tax, by the middle of next year.
It remains highly uncertain whether opposition parties, which have been
increasingly on the offensive against the government, will take up Kan's offer.
Among other things, many opposition parties have said they will not hesitate to
boycott Diet deliberations next year as long as Kan keeps his right-hand man
Chief Cabinet Secretary Yoshito Sengoku in the government.
Kan avoided elaborating on whether he is considering reshuffling the Cabinet.
But Kan did indicate that he may find someone for the post of justice minister,
which Sengoku has taken on since late November.
On the diplomatic front, Kan reiterated his resolve to relocate the U.S. Marine
Corps' Futenma Air Station within Okinawa Prefecture in line with an accord
struck in late May with Washington.
But he said Japan will not put a deadline on settling the relocation issue as
strong opposition persists in Okinawa.
''The U.S. side fully understands about this point,'' Kan said, arguing that
settlement of the issue will not be a prerequisite for his planned visit to the
United States around next spring to release a joint statement with U.S.
President Barack Obama on the two countries' longstanding security alliance.
Kan also said he has yet to decide whether to replace Japan's ambassador to
Russia soon.
Government sources said Thursday that Japan is considering replacing Ambassador
to Russia Masaharu Kono as early as January following his failure to obtain the
right information beforehand on Russian President Dmitry Medvedev's visit to a
disputed island off Hokkaido in November.
==Kyodo
2010-12-25 00:10:06


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