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 9 July 2001. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked on how he views current state of Japanese economy)
It appears to be worsening. Consumption is low, export is dropping, inventory is rising, and production is slightly declining. The "tankan" calls for bad first half and better second half for the fiscal 2001, but this may be too optimistic. Even though I share the "tankan" view on eventual recovery, the timing can vary -- it might take a bit longer, but this doesn't mean I have to be pessimistic.
(Asked on possibility of supplement budget before drafting fiscal year 2001 budget)
Looking at political schedule, the government is not ready to form a supplement budget. GDP estimate for the second quarter 2001 will be announced early in September. If the announced figure is in negative, the government may take a step to draft a supplement budget -- not large ones with big public works spending as in the past, but rather pin-pointing to effective deregulations/restructuring measures such as Para-state agency reforms. It will be a big task of the Koizumi cabinet to restructure these agencies. The first step is to disclose their accounts, due by autumn, which will then promote further reforms.
(Asked on the Prime Minister's stance on elimination of bad-loans)
It was ex-Prime Minister Mori who outlined emergency economic measures including elimination of bad-loans, establishment of cross-holding share buy up company, etc. Mr. Takenaka has carefully transformed the issue into scrap-and-build issue so that concentration on profit centers could take place after scrapping bad-loans. I support this and it should be done even if economic stagnation will continue for next several years.
(Asked on the Japanese government stance and fate of the Kyoto Protocol)
I do not foresee any concrete effects if Kyoto Protocol will be ratified without the U. S. participation. Without the U. S., how can we ask for entry of developing countries? Meanwhile, current government stance is to put blames on promise-keeping and emission-reducing industries while not effectively dealing with transportations and personal emissions sectors. If the government is unwilling to effectively deal with these two sectors, it will have to implement industrial regulations, which will in turn reduce industrial competitiveness.