Japan Press Weekly

Tweet

2011 January 26 - February 1 [POLITICS]

‘Ruling-opposition talks’ will seek grand coalition to raise consumption tax

The ordinary session of the Diet began on January 24. What are the reactions of the Liberal Democratic Party, Komei Party, and rank-and-file lawmakers of the Democratic Party of Japan to the just-convened session?

Prime Minister Kan Naoto in his policy speech spoke of his aspiration for Japan’s entry into the free-trade TPP pact and for an increase in the consumption tax rate in the name of “securing fiscal resources for expanding social security”. He called for talks to be held between the ruling and opposition parties to deal with these issues.

However, no matter how loud he lifted his voice for “ruling-opposition talks”, he could not receive loud applause from the DPJ’s chamber seats. Also, when Yosano Kaoru, State Minister in Charge of Economic and Fiscal Policy, delivered an economic policy speech, LDP members gave him boos and jeer shouting, “Do you expect us to applaud you?” Yosano used to be an influential member of the LDP, but joined the Kan Cabinet after leaving the Sunrise Party of which he was a co-founder.

For reasons of political maneuvering, the LDP has taken a stance to not easily agree to holding “ruling-opposition talks”. Some rank-and-file DPJ politicians are urging the DPJ leadership to consider amending the government budget draft in order to win the LDP’s consent although deliberations on the budget draft have not yet begun in the Diet. An amendment to the draft may be acceptable for the DPJ-led government because its draft is only slightly different from the LDP draft.

Some Dietmembers of the DPJ who are close to former DPJ leader Ozawa Ichiro are criticizing Prime Minister Kan and other DPJ leaders. During a joint meeting of DPJ members of both Houses, even a Dietmember who had voted for Kan in the DPJ presidential election last year said, “If we change our policies in line with what Yosano (ex-LDP heavyweight) says, people will distrust us even more.”

Meanwhile, LDP President Tanigaki Sadakazu at a press conference on January 24 underlined the LDP’s confrontational approach to the DPJ by calling for the dissolution of the Lower House. However, his party is only testing the waters to see if the DPJ is really serious about an increase in the consumption tax rate.

The LDP has demanded that the DPJ abandon its “manifesto”, present a proposal for tax increases, and abolish the new “child allowance system” and the “tuition-free project” for public high schools in exchange for accepting “ruling-opposition talks”.

Komei Party Chief Representative Yamaguchi Natsuo on January 24 in response to Kan’s request for “ruling-opposition talks” said, “We have always proposed that a body to hold ‘ruling-opposition talks’ be established.”

In the first place, the former LDP-Komei government in 2009 incorporated a plan to increase the consumption tax to 10% in the FY 2011 into the supplementary provision to the Income Tax Act. After the change of the government, the LDP submitted a bill to the Diet to that effect. Yosano on January 25 said, “It will be extremely significant to hold ‘ruling-opposition talks’ on this bill.”

“Ruling-opposition talks” are obviously aimed at forming a grand coalition to raise the consumption tax rate.