Japan Press Weekly

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2007 September 26 - October 2 [POLITICS]

Fukuda vows to increase consumption tax rate and continue refueling operation in Indian Ocean: policy speech

Prime Minister Fukuda Yasuo’s first policy speech on October 1 repeatedly mentioned “recovering trust in politics and the administration” reflecting the severe verdict on the ruling coalition in the recent Upper House election.

The prime minister, however, stated that his government will maintain the “structural reform” policies promoted by the preceding Koizumi and Abe governments. He also stressed the need to continue the Self-Defense Forces’ operations in support of U.S forces based on the Anti-Terrorism Special Measures Law.

Fukuda did not use the slogans Abe had invented such as “breaking away from the postwar regime” and “building a beautiful Japan” or mention constitutional revision.

He promised to engage in “sincere consultations with opposition parties” in Diet management.

In describing his cabinet’s basic principle, Fukuda used the phrase “a country of hope and reassurance” and called for examination of a medical care system for the elderly, efforts to reduce social gaps, young people’s job opportunities, and support for child-raising parents. However, he failed to propose concrete measures to cope with those tasks.

At the same time, Fukuda clearly put forward a plan to increase people’s tax burdens on the grounds of securing funds for social welfare services, stating “We will endeavor to realize fundamental reform of the taxation system, including the consumption tax.”

The prime minister pledged to carry forward “diplomacy which contributes to world peace,” proposing promotion of active diplomacy toward Asia. He stated, “The resolution of issues related to the Korean Peninsula is indispensable for peace and stability in Asia,” and called for strengthened coordination with the international community in order to achieve the “denuclearization of North Korea.”

On the other hand, Fukuda strongly advocated “maintaining the solid Japan-U.S. alliance” as his basic diplomatic policy. He made clear that he will pursue continuing the SDF’s refueling mission in the Indian Ocean and stated, “We will steadily implement the realignment of U.S. Forces in Japan.”

Despite the fact that Fukuda himself is involved in scandals in which his office submitted dubious receipts attached to its funds reports, he only stated that he has instructed cabinet members “to demonstrate full accountability when questions are raised.”