Following is the gist of remarks made by Hiroshi Okuda, Chairman, Nippon-Keidanren at a scheduled press conference on 23 June 2003. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Evaluation on the government's reform plan on decentralization of tax revenue)
While there seems to be some difference of interpretations between the Minister of Finance and the Minister of Public Management, Home Affairs, Posts and Telecommunications, the general policy direction has been set, which should be surely praised. From now on, the government must decide which subsidies to be cut and which tax sources to be localized.
(Expectation from visiting Europe in July)
In scheduled meetings with European business and political leaders, I hope we could learn how Europe has coped with high unemployment rate and high value added tax.
(Expected risks from power shortage this summer)
From the business side, concentration of resources means efficiency, but from the users' viewpoint spreading risks sometimes outweigh the efficiency. Businesses are always considering these factors into their operations. In this sense, it is understandable to learn that some companies are shifting their operations to non-peak hours or to factories outside Tokyo.
(Problems caused by late government action on FTAs)
For example, Japanese companies are placed at disadvantageous position because Japan is the only major trading country for Mexico without FTA. If the government delays negotiation on FTAs, Japan could lose more business opportunities.
(On stock market)
As corporate turnover is improving, and increasing number of companies are paying higher rate on dividends, ROI improves and market players are finding stocks more favorable than bonds. As the U. S. economy in the second half of 2003 expected better than forecast, I foresee no reasons in the market decline. And, as stock market improves, as proven by statistics, spending on durable goods also improves -- so it is supposed to be good for state of Japan's economy.