Chairman Okuda's Press Conference

January 10, 2006

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 10 January 2006. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(On heavy snowfall in Nagano and Niigata)

It must be tough on people living in hard hit region. The most important is to save human lives. I have high expectations for SDF. It is fortunate that the snowfall wouldn't have affected the national economy as much as I feared.

(On restructuring of the national government ministries and agencies)

Keidanren hasn't discussed on this issue. I heard that LDP's manifesto contains a clause that restructuring must be reviewed in five years time.

(On meeting with Rengo -- Japan Trade Union Confederation)

Keidanren's stance is that each company should make a decision on its own wage issue. Attempt to set industry-wide standard should be rejected. Reduction of workforce must be dealt first by effective use of elderly and women. Effective use of the Internet and Communications Technology is another area that must be promoted. All that should precede wage increase and bargain-hunting in the labor market. Decrease in consumption could be the worst part of the population decrease.

(On Keidanren's stance on corporate tax)

Japan's corporate tax is higher than that of countries in Asia. Keidanren's stance that Japan's corporate tax be reduced to comparable level is unchanged.

(On Japan's stance on diplomacy)

I would like to see the leadership meeting face to face regularly and frequently. It is necessary for all concerned to keep persuading each other to reach this level.

(On earlier report that LDP and Keidanren will jointly establish a think-tank)

The reported news is unheard of.

(On visit to Vietnam)

Keidanren plans to make a visit in February. Reports say that characteristics of Vietnamese and Japanese workers are reportedly similar so Vietnam is attracting Japanese investors. I would like to confirm the reports by my own eyes.


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