ID :
155917
Wed, 01/05/2011 - 07:57
Auther :

Kan prods Ozawa to resign, calls for tax reform around June

TOKYO, Jan. 4 Kyodo -
Prime Minister Naoto Kan said Tuesday he will try to eradicate money-tainted
politics in Japan in 2011, prodding his rival Ichiro Ozawa to resign as a
lawmaker due to his impending indictment over a funds scandal.
Kan also called for cross-party cooperation to rebuild Japan's troubled public
finances, stating his aim to craft a clearer reform plan around June for the
tax system amid rising social welfare costs.
Despite falling approval ratings, Kan said at his first news conference of the
year that he is not considering dissolving the House of Representatives for a
general election.
Kan, however, expressed his intention to reshuffle the Cabinet prior to a
regular Diet session expected to begin later this month.
The scandal involving Ozawa, a former Democratic Party of Japan leader, is one
of many problems that have exposed Kan's government to strong criticism from
opposition parties, whose control of the House of Councillors will allow them
to delay bills important for implementing the fiscal 2011 budget in the
upcoming 150-day Diet session.
''This year, I want to overcome the problem of money in politics,'' Kan said,
adding that Ozawa, who lost to Kan in the ruling party's presidential election
in September, needs to focus on his own court battle once he is indicted over
the scandal involving his political funds management body.
Kan suggested the need for Ozawa to leave the DPJ or even resign as a lawmaker
after his indictment, expected in January.
''As a politician, he must make his future clear,'' said Kan, who has faced an
intensifying conflict within the DPJ between pro- and anti-Ozawa lawmakers over
the handling of the scandal.
He also urged Ozawa to testify on the scandal before the lower house's
political ethics panel as promised.
Ozawa, who is credited with the DPJ's rise to power in 2009, has denied any
wrongdoing.
Among economic issues, Kan said that the time is ripe for Japan to start
discussing how to reform the country's tax system, including the politically
sensitive consumption tax, to cope with increasing social welfare expenditures.
''I'd like to launch cross-party talks involving the ruling and opposition
parties on social security and financing issues at an early date, and by around
June as a target, I'm hoping to set the direction (for reform).''
Risking policy deadlock in the divided Diet, Kan, who has been in office since
June, is exploring areas in which his DPJ could cooperate with the Liberal
Democratic Party and other opposition parties.
Fiscal reconstruction is one area in which Kan has been seeking to solicit
support for the government.
But it remains very uncertain whether there is room for him to work with some
opposition parties, given his falling popularity in recent weeks and proposal
last year indicating the possibility of doubling the current 5 percent
consumption tax, blamed for the DPJ's stinging defeat in the upper house
election in July.
LDP leader Sadakazu Tanigaki said during a stump speech in Nagoya that promises
made by the DPJ-led government have already crumbled ''like a house of cards.''
''This government no longer has legitimacy,'' Tanigaki said. ''To get over the
current difficulties, we must corner the government to dissolve (the lower
house) as soon as possible. At the start of a new year, I renewed my
determination.''
To revitalize Japan's economy, Kan reiterated his resolve to promote free trade
and make 2011 a landmark year for Japan to further open up to the rest of the
world.
He said Japan's stance on whether to join talks for a regional free trade
agreement known as the Trans-Pacific Partnership must be decided by around
June, when the government plans to come up with specific measures to improve
the competitiveness of the country's agricultural sector.
==Kyodo

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