Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman, Nippon Keidanren, at a press conference after annually-scheduled new year party hosted by three major economic organizations on 6 January 2004. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked to forecast Japanese economy in 2004)
Recently, economic figures are favorable and I am more optimistic this year than the last. This is because of effects of long-waited Koizumi reforms that contributed towards brightening consumer confidence. Japan's businesses in general will shift towards offensive restructuring as corporate performance is improving. Negative factors include international economy and politics, including the Iraq and North Korean issue.
(Asked to on forecasting foreign exchange)
Further appreciation of Yen against U. S. Dollar would harm competitiveness of exporting companies, while strong Euro mitigates its impact for those exporting to Europe as well.
(Asked on political manifestos)
I am in favor of two-party system where both parties are capable of becoming ruling party and swap positions in certain intervals. Regarding political parties' manifesto, it has become apparent that all parties would spend more time to make their manifesto more concrete and realistic -- and that's what I expect.
(Asked if consumption tax must be raised)
I have been advocating towards raising consumption tax and am feeling that a national consensus of accepting it in future is gradually being built.
(Outlook on pension reform)
The government decided that pension premium would be raised up to 18.35% in future, but I hope that this decision would be reviewed in the process of the comprehensive tax reform including raising consumption tax.
(Asked if importing foreign laborer is a issue at a time when domestic jobless is on rise)
Japan has not yet entered days of population decline, but it will come within next few years. On the other hand, one shall not forget that while it is said that jobless among young Japanese is reaching 20%, hard-labor industries are rushing to find workers and increasingly relying on foreign workers. Nippon Keidanren made public an interim report on this issue in December, and final report is due in March.
(Asked on stance over FTAs as regards to Japan's agriculture)
Japan should of course continue to pursue WTO negotiations, but meanwhile it should pursue FTAs with neighboring countries. Nippon Keidanren has been meeting with agriculture representatives. They face the lack of international competitiveness and successors.