Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a press conference following monthly Chairman and Vice Chairmen's meeting on 4 February 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked of his views over drop of Prime Minister Koizumi's support rate)
Upon hearing the news on January 30, I though the support rate would come down. And the result has turned out to be just so. I think that the current level of support rate, around 50%, is a pure Koizumi support rate. The Prime Minister must conduct thorough structural reforms as he stated in his general policy speech today.
(Asked on his views over poor stock market performance)
Keidanren member companies said in recent questionnaire survey that expected Nikkei average range is between 9,500 and 12,700 yen, and yen-dollar rate between 125 and 140. Meanwhile, financial institutions must have a clear policy to write of non-performing loans (NPLs). Prime Minister said in his general policy speech that Japan will be out of the problem by 2004, but how could we confirm that with our own eyes? Moreover, banks are losing fundamental strength. Additional pumping-in of public money could be a policy alternative as a pre-emptive measure to push banks into getting rid of excess NPLs. I am not worried about collapse of the market, but NPLs disposal is too slow.
(Asked about tax reform proposals under consideration)
At this moment, Japanese tax system is a full of patchwork. The system must be simplified, made fair, and made neutral. I support such a reform, being proposed by the Prime Minister. The system should also promote global industrial competitiveness. Past reforms were directed achieving these goals, but efforts were not enough. Another area of demand-creating tax reform, without radical tax-income reduction, is to reduce tax on housing related gifts.
(Asked of Imai's expectation in Washington, D. C.)
I will visit Washington, D. C., to attend Japan - U. S. Business Council meeting on February 17 and 18. The Council meeting will have three subcommittees on telecommunications, manufacturing, and services and discuss on today's topics. I will attend services subcommittee to discuss on Japan's financial market. The expected hot issue of the U. S. is deregulation of the Japanese market, and of Japan is anti-dumping regulation of the U. S.