Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a scheduled press conference on 12 March 2001 following monthly Chairman and Vice Chairmen's meeting. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Announcing shuffle in Keidanren's top executives)
I proposed following changes to the executive posts of Keidanren to today's Chairman and Vice Chairmen's meeting and received approvals (official approval must be obtained at annual assembly meeting in May). Four outgoing Vice Chairmen are: Messrs. Kanai (Hitachi), Maeda (Toray), Suzuki (Ito Yokado) and Tsuji (Nissan). Two incoming Vice Chairmen are: Messrs. Nishimuro (Toshiba) and Yoshino (Honda); both are currently Vice Chairmen of the Board of Councillors. There are two more outgoing Vice Chairmen of the Board of Councillors: Messrs. Fukuhara (Shiseido) and Hashimoto (Fuji Bank). There will be three incoming Vice Chairmen of the Board of Councillors: Messrs. Suzuki (Ito Yokado), Takahara (Uni-Charm), and Shoyama (Hitachi).
(Asked how he views over domestic politics)
The largest problem in the politics exists on non-existence of parties capable in leading Japan except for LDP, which has already lost public confidence. So LDP should reform itself to regain public confidence. To do that, political ethics must be re-established, young politicians must be brought to the fore, and election of the next party Chairman must be instituted early in a transparent way.
(Asked how he views of announced 4th quarter 2000 GDP estimate)
The announced +0.8% GDP growth was nothing more than expected. Because of this, GDP growth for the fiscal year 2000 should reach 1.2% to 1.3%. What we should focus on is consumer spending which recorded negative 0.6% growth. This reflects growing uncertainties over the future of the Japanese economy. The government should draw a socio-economic grand design for the next 10 to 15 years so that consumers will feel at ease in spending their savings. On the part of business sector, companies must scrap excess facilities and write off bad loans to improve efficiencies on their capitals. Theoretically speaking, one must remember that while the value of Japanese Yen doubled against the U. S. dollar, it has tripled its value against most Asian currencies. This means that Japanese companies must increase their productivity three-fold to stand par with them. It is no easy goal. However, only thorough implementation of these measures by all parties concerned will lead to increase in consumer spending.
(Asked what the Bank of Japan should do now)
The problem of price deflation has been continuing for last 16 months. The central bank should further pour the money into market as abundance of money should prevent further economic downturn. It will also make the business sector to effectively implement restructuring process.