JBF shows concern about JCP electoral seats

Akahata of July 2 reported that the Japan Business Federation (JBF or Nippon Keidanren) is concerned about a possible increase in the number of Japanese Communist Party seats in the House of Councilors.

The business sector is particularly afraid of the JCP's opposition to the consumption tax increase and its call for large corporations to pay more for social services costs, as in Europe.

Sources close to the JBF say, "Both the Liberal Democratic Party and the Democratic Party of Japan are calling for the consumption tax rate to be increased as a way to secure pension funds. We are most sensitive and worried about an increase in JCP seats, as the party is opposed to the consumption tax increase and is calling for large corporations to pay more for social insurance premiums, as in Europe."

JBF President Okuda Hiroshi visited Prime Minister Koizumi Jun'ichiro at his official residence on April 26 and asked him to shift the major fund source for pensions from premiums to the consumption tax and indirect taxes.

In response to this request, the ruling LDP and Komei Party plus the DPJ from the opposition reached an agreement, and the pension bill passed through the House of Representatives with an amendment. The JBF newspaper on May 13 reported on the outcome, appreciating it as a reflection of the JBF request.

Nishimuro Taizo, JBF vice-president in charge of social services and president of Toshiba Corp., in the JBF monthly magazine for May admitted to the smaller payment by Japan's large corporations for social services compared to their European counterparts. However, he tried to justify the call for cuts in social services costs for large corporations, alleging the need for them to compete with Asian countries with far lower taxes and contributions to social service costs. (end)