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 13 May 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked on his view on the current state of Japanese economy)
Export to the U. S. recovered and domestic inventory reduction has progressed quickly. As the result, fiscal 2002 turnover (ending March 2003) will be definitely better than that of 2001.
(Asked of major points of Keidanren's new tax reform proposals)
The proposal asks the government to focus on salvaging Japanese economy out of deflation during the next two-year period -- any tax increase must be waited during this period. On personal consumption front, we are asking reduction in gift tax so that huge saving pool among elders could be transferred to younger generation who spend. On corporate front, tax incentives on R&D spending must be revised. Current scheme allows tax savings on increase in R&D spending, but Keidanren wants some parts of R&D spending eligible for tax savings. Keidanren is also calling for tax saving on IT spending on hardware and software -- good for improvement in productivity -- by tax savings or accelerated depreciation.
(Asked on Imai's personal view on laws governing state of emergency)
Laws governing state of emergency is necessary, but distinction on condition yellow and condition red is very difficult. But in any case, these laws are necessary and must be discussed during the time of peace -- before these laws become necessary.
(Asked of his views over personal information protection laws)
As Japan is more equipped with IT technology, there could be a new wave of businesses using personal information. Meanwhile, the government is pushing e-government scheme in which residents' registry will be integrated nationwide on electronic media. So the government must balance out the merit and danger of information transactions over the net, where all business entity abide by a set of principles. However, Keidanren understands that freedom of speech will not be restricted if principles of the law are full practiced -- under the law, media is still free to express views.
(Asked of his views over Japan-U. S. Investment Initiative conference)
I heard that the U. S. side requested Japanese government to allow M&A using stock swapping by non-Japanese companies. I think it is a legitimate request as Japanese companies are doing it abroad. Keidanren has been calling reform on this issue in its Commercial Code reform proposals.