Japan Press Weekly

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2008 November 12 - 18 [FINANCE]

Government cash handouts will only cause burdens on local towns: JCP Shii

The government and the ruling Liberal Democratic and Komei parties on November 12 decided to carry out fixed-sum cash handouts to all households as part of the economic stimulus package. However, they left the decision on setting a cap for high-income earners to qualify for the cash payout to local governments, which will distribute the cash.

The cash handout program is under strong public criticism as an election-motivated initiative.

Asked to comment at a news conference on the latest agreement between the government and the ruling parties, Japanese Communist Party Chair Shii Kazuo said, “This is tantamount to saying, ‘We were unable to reach agreement on an income cap, so local governments should do as they like’ and forcing local governments to deal with possible chaos and burdens. It is unacceptable for the government to relinquish its responsibilities. The government should cancel the two-trillion yen handout program now.”

As to how effective the government cash benefits will be, Shii said, “It can produce nothing. At a time when the task is to ensure job security and secure social services, the government is doing nothing in this regard.”

He went on to say, “Just a one-time handout of two-trillion yen cannot placate ordinary people because they have already been forced to pay an additional 13 trillion yen a year in taxes and various fees since the Koizumi Cabinet. In addition, the government is considering increasing the consumption tax at a later time.”

Shii pointed out that the government has been in a state of panic over whether to impose a ceiling on higher income earners because the cash handout program is an election ploy in party politics that has nothing to do with economic recovery.

He also said, “All this proves is that the Aso Cabinet has nothing to show the public in formulating effective policies and that his government is terminally ill.”