ID :
73931
Thu, 08/06/2009 - 09:36
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Shortlink :
http://m.oananews.org//node/73931
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DPJ member emphasizes support for needy, LDP raps DPJ policy
TOKYO, Aug. 5 Kyodo - A key policymaker of the Democratic Party of Japan said Wednesday that the main opposition party intends to provide ''first aid'' to needy individuals, rather than companies which the ruling Liberal Democratic Party puts emphasis on, if it takes the reins of government after the upcoming general election.
But Yoshimasa Hayashi, Japan's economic and fiscal policy minister from the
LDP, criticized the DPJ's policies, featuring cash aid for families with
children and an end to highway tolls, as being ''too costly'' and having a
''socialism touch.''
Kohei Otsuka, vice chairman of the DPJ's Policy Research Committee, said in an
interview with Kyodo News that the LDP's conventional policies based on the
belief that supporting companies will lead to improvement in family finances
have been a ''failure.''
''If we take power, we'll provide first aid to needy individuals,'' Otsuka
said. ''If their living (situation) gets better, that would boost demand and
improve the economy.''
Meanwhile, Hayashi said in a separate interview that the DPJ ''says financial
aid to households should help buoy consumption, but the party seems more like
creating a big government that collects a lot of money and then hands out a
lot. It has a strong socialism touch.''
The DPJ, which opinion polls have shown is well positioned to win the Aug. 30
House of Representatives election, unveiled late last month its manifesto,
including the creation of a monthly child allowance for families of 26,000 yen
per child.
If implemented in full, the party's initiatives would cost a total of 16.8
trillion yen in the fiscal year beginning April 2013, and the LDP has
criticized the DPJ's proposals saying the source of funds was vague.
Otsuka said that even if financial resources are lacking, the DPJ is not
planning to fall back on issuing government bonds.
''We're not considering relying on deficit-covering national bonds at this
stage because that could damage motivations to cut expenditures,'' he said.
But as for the issuance of government bonds to cover regular budgets, the DPJ
does not plan on reducing the issuance sharply anytime soon, he added.
''We intend to realize an annualized 1 to 1.5 percent growth in the real gross
domestic product in our first term in power,'' Otsuka said.
The LDP's Hayashi said the ruling party's policy platform puts emphasis on the
''departure from excessive market fundamentalism,'' as well as improving the
social security system.
The LDP's manifesto says the party aims to achieve annual growth of 2 percent
in the latter half of fiscal 2010 and boost the nation's per capita income to
the highest level in the world in 10 years' time, while it also says it will
carry out a tax system overhaul including an increase in the 5 percent
consumption tax once the economy recovers.
''We could start discussion (on raising the consumption tax) in the latter half
of fiscal 2010 if a sustainable recovery path is foreseeable,'' Hayashi said.
''We intend to carefully select the timing (of actually raising the tax) so as
to minimize impact on the economy.''
==Kyodo
But Yoshimasa Hayashi, Japan's economic and fiscal policy minister from the
LDP, criticized the DPJ's policies, featuring cash aid for families with
children and an end to highway tolls, as being ''too costly'' and having a
''socialism touch.''
Kohei Otsuka, vice chairman of the DPJ's Policy Research Committee, said in an
interview with Kyodo News that the LDP's conventional policies based on the
belief that supporting companies will lead to improvement in family finances
have been a ''failure.''
''If we take power, we'll provide first aid to needy individuals,'' Otsuka
said. ''If their living (situation) gets better, that would boost demand and
improve the economy.''
Meanwhile, Hayashi said in a separate interview that the DPJ ''says financial
aid to households should help buoy consumption, but the party seems more like
creating a big government that collects a lot of money and then hands out a
lot. It has a strong socialism touch.''
The DPJ, which opinion polls have shown is well positioned to win the Aug. 30
House of Representatives election, unveiled late last month its manifesto,
including the creation of a monthly child allowance for families of 26,000 yen
per child.
If implemented in full, the party's initiatives would cost a total of 16.8
trillion yen in the fiscal year beginning April 2013, and the LDP has
criticized the DPJ's proposals saying the source of funds was vague.
Otsuka said that even if financial resources are lacking, the DPJ is not
planning to fall back on issuing government bonds.
''We're not considering relying on deficit-covering national bonds at this
stage because that could damage motivations to cut expenditures,'' he said.
But as for the issuance of government bonds to cover regular budgets, the DPJ
does not plan on reducing the issuance sharply anytime soon, he added.
''We intend to realize an annualized 1 to 1.5 percent growth in the real gross
domestic product in our first term in power,'' Otsuka said.
The LDP's Hayashi said the ruling party's policy platform puts emphasis on the
''departure from excessive market fundamentalism,'' as well as improving the
social security system.
The LDP's manifesto says the party aims to achieve annual growth of 2 percent
in the latter half of fiscal 2010 and boost the nation's per capita income to
the highest level in the world in 10 years' time, while it also says it will
carry out a tax system overhaul including an increase in the 5 percent
consumption tax once the economy recovers.
''We could start discussion (on raising the consumption tax) in the latter half
of fiscal 2010 if a sustainable recovery path is foreseeable,'' Hayashi said.
''We intend to carefully select the timing (of actually raising the tax) so as
to minimize impact on the economy.''
==Kyodo
