Keidanren Chief Refuses to Assure Job, Investment Increases

Tokyo, Dec. 13 (Jiji Press)--Japan Business Federation Chairman
Hiromasa Yonekura told reporters Monday he is opposed to the idea of the
business sector making commitments to creating more jobs and expanding
domestic investment in return for a cut in corporate taxes.
Any idea that denies capitalism should not be presented, the head
of Japan's largest business lobby, better known as Nippon Keidanren, said.
His comment comes as the government considers concluding an
agreement with Nippon Keidanren and the Japanese Trade Union Confederation,
or Rengo, that the tax cut should be implemented on condition of the
business sector's promise for job creation and larger investments in the
country.
Yonekura also expressed the view that if the government fails to
cut the effective corporate tax rate by some 5 pct, it will run counter to
its new growth strategy, which seeks economic revitalization through, among
others, a corporate tax cut.
Nippon Keidanren has told the government that it will try to
increase the private sector's capital investment to 104 trillion yen in 10
years if the government cuts corporate taxes and conclude the Trans-Pacific
Partnership free trade agreement in the Pacific-Rim region.
But this is not a pledge but a target, a senior official of the
organization said. The same day, Yonekura discussed regional
revitalization measures with Internal Affairs and Communications Minister
Yoshihiro Katayama.
Specifically, Yonekura called for deregulation and a legal
framework to help build cities of the future with cutting-edge environment
technologies, saying a comprehensive special zone system is indispensable
for the future city initiative.
Katayama replied that such a special zone should be created in a
way regional autonomy can be fully exercised.