Chairman Okuda's Press Conference

April 24, 2006

Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman, Keidanren, at a scheduled press conference on 24 April 2006. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(On result of Sunday's House of Councilors' supplemental election)

Integrity is now being observed in DPJ, where Mr. Ozawa has recently become President. Meanwhile, LDP's bringing a parachute candidate was not well received -- not necessarily the result of Prime Minister Koizumi's policies.

(On high crude oil price)

As I have been saying, a temporary high wouldn't affect businesses so much while continuous high will bring in cost pressures on the global economy.

(On inflating trend of long term government bond)

Higher interest rate of long-term government bond wouldn't affect much now, but those companies with high amount of debt might be adversely affected.

(On new Corporate Law)

It is worth watching that how many Japanese companies would change their articles of constitution in order to employ anti-hostile-takeover measures. Implementation of the new law would also make opinion of outside directors and auditors bolder. It was a wise decision to postpone implementation of triangular mergers. Government should study the cases thoroughly.

(On Kubota's paying compensation on asbestos victims)

Kubota used to be the largest asbestos-concrete producer. The company's decision was quick and bold -- I appreciate the decision.

(On public employee issue)

There are three types of arguments, one is to reduce total number, two is to reduce salary, and three is to suppress new recruits. My observation is that if government suppresses new recruits for several years, the government should almost meet the committed number. Private businesses would not favor hiring outflow of public employees so there must be a legal or structural support.


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