Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman of Nippon Keidanren, at a scheduled press conference after monthly Chairman and Vice Chairmen's meeting on 6 November 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Regarding the government's Comprehensive Measures to Accelerate Reforms (anti-deflation package))
Extent of the side effects of the measures would vary depending on how much of NPLs banks would actually write off -- as the details of the measures, neither quantity nor quality, are not announced so I could say nothing certain about it. All outstanding speculations of fear-creation mode put basis of their estimation on writing off half of outstanding NPLs or even more within a year, but such seem very unlikely. Only thing I could be certain is that the new policy package would accelerate writing off of NPLs more than existing measures -- that's all I could say.
(Likelihood of supplemental budget, timing, and the size)
Everything depends on the changing status of Japanese economy: How will be the tax income, would there be any other revenue sources, and how soon economy would plunge unless supplemental budget will be implemented, etc.
(On ASEAN+3 Free Trade Agreement)
It doesn't matter who initiate the talks, but FTA is the way to go on bilateral trade liberalization. I know that agriculture has been a touchy issue in Japan, but the government should put out an agricultural policy with promotion of FTA as the core of its policy goals.
(Regarding raising of unemployment insurance premiums)
I am very much disturbed by the Ministry of Health, Labor, and Welfare's attempt to raise the insurance premium to 1.6%. It was only in October the government raised premium. Such sporadic attempt will create concern among citizens and cause decline in consumption. The government as the whole must draw up a comprehensive package on what to expect in the future. No more surprises, please.