Following is the gist of remarks made by Hiroshi Okuda, Chairman, Nippon-Keidanren at a scheduled press conference following monthly Chairman and Vice Chairmen's meeting on 8 March 2004. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(On planned Antimonopoly Act revision)
I commend that the draft proposal on revised Antimonopoly Act announced by Japan Fair Trade Commission (JFTC) has improved by recent revision, especially on positioning of surcharges as administrative penalty, but there are still more problems on why the surcharges must be raised, how adjustment between surcharges and legal sanction would be secured, how to implement leniency system, and how to maintain necessary due processes commendable with penalties to be implemented, etc.
Nippon Keidanren is against the proposed hasty revision unless these problem areas are resolved and concrete systems are designed. Nippon Keidanren has been always proposing overall revision of the Act, but JFTC has proposed to implement revision only in the area of surcharges, lacking clear reasoning behind it. Let me reiterate that Nippon Keidanren wants JFTC to spend more time to implement overall revision of the Act so that a consensus among all concerned will be reached.
(On the state of Japan's economy, foreign exchange, and financial policy)
Current foreign exchange rate is comfortable for exporting companies. However, for those companies which trade in both Euro and dollar, effects of higher dollar are off-set by lower Euro. Local companies and SMEs do not yet feel improvement in the state of Japan's economy, but it will be gradually felt within few months. Current appreciation in raw material prices will not be immediately reflected in end product prices. Mr. Fukui, the Governor of BOJ, has been implementing timely policies and I commend his performance. Zero-interest rate policy must be continued for some time, unless stock market and/or foreign exchange will find major changes.
(On Japan-Mexico FTA)
Each should compromise on what is possible so that FTA will be achieved as soon as possible.
(On SEIBU Railway Co.'s reported business with anti-social forces (sokaiya))
As Nippon Keidanren has been communicating with its member companies to cut ties with anti-social forces since 1991 when its first Charter of Corporate Behavior was agreed amongst its membership, it is regrettable that Seibu Railway has allegedly been directly or indirectly contacting with anti-social forces. After considering report filed by Seibu Railway, Nippon Keidanren decided to ask Chairman Tsutsumi to withdraw from being the member of the Board of Directors as well as to ask Seibu Railway to voluntarily halt its membership activities, based on its Charter of Corporate Behavior.
(On new Chairman and President of Tokyo Stock Exchange (TSE))
It is welcome to find a private sector person becoming its chairman, as the current trend shift is from bureaucracy to private sector. If possible, such person must be selected from sectors without direct interest to the securities businesses.
(On arrest of Mr. Kanju Sato, former member of House of Representatives)
Political circle must take this incident seriously. Permanent supervision on necessary areas must be implemented to prevent further incidents.