Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a scheduled press conference on 19 February 2001. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
Since the last press conference held on February 5, GDP statistics for the 3rd quarter of the year 2000 was revised from +0.2% growth announced in December to -0.6%. The downward revision was expected, but not in such a big swing as GDP is one of the key government statistics in formulating financial and fiscal policies. Japan was supposed to be a country with slow but sure statistics. Now with same slowness, it is not sure any more. I have two suggestions to make the government statistics better. One is to move all statistics related administrations and accompanying budget to the Cabinet Office. Two is to move all related personnel to the Cabinet Office. It is surprising to know that of 9000 statistics related workers, 6000 are working for the Ministry of Agriculture, Forestry and Fisheries, 1,600 are handling at the Ministry of Public Management, Home Affairs, and Post and Telecommunications with only 70 are at the Cabinet Office. In past, Keidanren has been calling for a thorough overhaul of the government statistics. I hope that the government will listen to us.
(Asked how does he view the calls for Prime Minister Mori to resign)
The foremost importance to the Diet is to pass the fiscal 2001 budget. This will work as the best policy measure to sustain economy. All other important bills should be debated in the Diet after that, but not in the manner of picking dust out of corners.
(Asked how does he view the current stock market)
I am very worried of the downward trend of the current stock market. However, the total stock price of today is better than that of autumn 1998. If the government will implement a variety of policy measures to enhance the market, including allowing treasury stock scheme and to bring (non-institutional) investors back to the stock market soon enough, I think the stock market will begin to improve.
(Asked whether the Bank of Japan needs to further lower the rates)
As for the corporate sector, we find enough financial resources already available. Therefore I see no needs for the Bank of Japan to immediately lower the rate. The case will be different if commodity price and stock price will continue to plunge rapidly. Basically, including the gist of G-7 message I just read, Japan is called upon to clean up the balance sheet of its financial sector.