Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a scheduled press conference after monthly Chairman and Vice Chairmen's meeting on 11 June 2001. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked on how he views the real GDP growth for the fiscal year 2000 at +0.9% and the first Quarter GDP estimate registering -0.2%)
I have been feeling economic slow down since January, and now it has a statistical backing. Regarding the fiscal year 2001, a bright outcome cannot be expected. With the government having put a cap on the bond-issuing ceiling at 30 trillion yen, coupled with declined overseas demand, the result figure may be even worse. The nature of possible negative growth is entirely up to the policy design and their implementations -- I think the reforms plan under discussion at the government council is heading to the right direction: This process will accompany pain and could take more than two or three years, but without them Japan cannot revive.
Details of the reforms plan will be laid out by the end of June. What can be done now should be done. Other measures requiring legislation might have to wait until the House of Councilors election in July and LDP Presidency election in September -- meaning how Koizumi can take initiative might vary by the results. More painful reforms will become visible during drafting of the fiscal 2002 budget. In any case, the current generation must endure pain so that there will be some hope for future generations.
(Asked on how he views the government decision to review the taxes and budget reserved for road constructions)
The question at stake is a simple one: Cost against benefits. Roads effective in promoting economic activities are good but such roads are limited. The government should consider revising the purpose-specific tax rates and budget towards completion of the current five-year plan. The obvious first step is to reduce the tentative tax level, but with having tight budget expected for the fiscal 2002, the government should limit expenditures only to reduce traffic congestions at large cities.
(Asked on how he viewed Russia during his recent visit)
I cannot tell you everything by just one visit, but how President Putin is thinking about it is now clear. Russian factories went through the last decade without facilities investment and now desperately need upgrades. So I proposed two points and received approvals from Mr. Putin, who appears to have gained a great degree of domestic support. The first is to establish an investment promotion mechanism, which assists bilateral investment and offer consultations to troubled businessmen. The second is to promote Japanese technology in Russia by holding an industrial exhibit there. These ideas will be followed up by the bilateral committee, which is expected to be held in Tokyo this autumn. I asked the President to have the new generation Russian entrepreneurs to take part in this meeting so that person-to-person contact on the grass root level could begin.