Chairman Okuda's Press Conference

October 11, 2005

Following is the gist of remarks made by Hiroshi Okuda, Chairman, Keidanren at a scheduled press conference following monthly Chairman and Vice Chairmen's meeting on 11 October 2005. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(On Keidanren's policy evaluation)

As a whole, LDP was rated higher than DPJ. Keidanren will call upon its member companies to expand political donations.

(On political agenda after postal privatization)

Pending issues include social security reform and public financial institutions reform. It appears that a cabinet reshuffle will take place in November, but the government should not wait in promoting reforms. Chief executives of privatized postal operations should be discussed at the management committee.

(On tax reform)

R&D promotion tax savings, as well as IT-related investment promotion tax savings should be continued if Japan was to aim for science and technology led growth. Discussion on reviewing the system of the special Funding Source System for Road Works is still ongoing -- whether to use the funding source for general purpose or not must be decided at a later date.

(On stock purchase by "Murakami Fund" of Hanshin Electric Railway Company)

Purchase of registered company stock is a natural phenomenon in capitalism economy. I take no stance on the listing of the Hanshin Tigers baseball club. Reviewing of baseball related regulation might be necessary if they don't meet the needs of the day.


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