Opinion Exchange with LDP for Job Measures/Economic Recovery
Policy Consultation on FY 2003 Budget Drafting
(2 December 2002)
On November 26, RENGO visited the Liberal Democratic Party headquarters and held policy consultations on fundamentally strengthening employment measures as well as economic recovery. On hand were nine members from the LDP including Secretary General Yamasaki, Policy Research Council Chairman Aso, Acting Secretary General Nukaga, and nine members from RENGO including President Sasamori, Vice Presidents Tsumaki and Hirasawa, and General Secretary Kusano. RENGO’s delegates pressed that “employment measures and economic recovery are the urgent issues. We want the LDP to study RENGO’s ideas to the fullest extent.” LDP officials responded saying “our party shares RENGO’s recognition over job measures and economic recovery issues. We would like to sufficiently examine each issue.”

SG Yamasaki (LDP) says “today’s meeting came at just the right moment before we study the ministries/agencies demands on the supplementary budget, FY 2003 basic budget compilation principles, and handling of the economy.”
SG Yamasaki (LDP) says “today’s meeting came at just the right moment before we study the ministries/agencies demands on the supplementary budget, FY 2003 basic budget compilation principles, and handling of the economy.”
At the outset, Secretary General Yamasaki said “today’s consultation comes at just the right moment before we begin studying the demands to the government from ministries/agencies on the supplementary budget, basic principles on FY 2003 budget compilation, and the handling of the economy. The LDP wants to learn more fully about RENGO’s idea for future reference.”

President Sasamori gave a speech in which he said “prior to this morning’s Employment Promotion Council of Government-Labor-Management, NIKKEIREN President Okuda and I met with Prime Minister Koizumi, who asked us to use labor and management’s ingenuity to solve employment problems.” He continued “I think that given the size of supplementary budget currently under study, there would be only a limited effect on both the economy and employment measures, and without preparing a safety-net for accelerating bad-loan disposal, it is incomplete. When I visited all 47 prefectures around the country in nine months, the heads of local autonomies, employers’ associations, and unorganized workers all strongly appealed to me that local economies may not last if nothing is done to solve job problems.” He further said “we made it clear at the Employment Promotion Council that it is an extremely crucial matter for government, labor and management to take their proper roles. The LDP holds the key to realize employment measures. RENGO is also working with firm resolve on the employment problems.”

Following that, General Secretary Kusano explained the content of demands including RENGO’s point of view at the Government-Labor-Management’s Employment Promotion Council. The exchanges with the LDP were as follows.


LDP: Reactions to RENGO’s Demands
The Liberal Democratic Party recognizes the issues regarding job measures such as an aid to the Emergency Response Work Sharing as well as subsidies for emergency employment measures. Reinforcing a safety net through the supplementary budget may have value but the amount is unsatisfactory. We want to beef up content and reduce unnecessary costs as much as possible to optimize effectiveness. We understand that RENGO is working with firm resolve on employment measures and we think it is crucial to cope with these problems not solely as a party but with government, labor, and management acting in unison. No one has experienced business stagnation under deflation but it is becoming a global trend and all policy measures should be measured against it. As a party, we want to consult with RENGO on their ideas.

LDP: Industrial Revitalization Corporation
The Industrial Revitalization Corporation targets not only major businesses but also small to mid-sized ones. The LDP questions if revitalization should concentrate on the IRC and not try to expand a similar function built into the Resolution and Collection Corporation.
RENGO: Industrial Revitalization Corporation
Since most small to mid-sized businesses have no main bank, it is crucial that the RCC strengthen its revitalizing function.

RENGO: Individual Demands
In the machine tool industry, many Japanese firms have been beaten by major foreign firms and are losing significant orders that have resulted in a large number of job issues. If nothing is done, the original basis of manufacturing is in danger. Distribution has been groaning under its being exposed to excessive competition while having to deal with issues including speed regulations and environmental problems. We think it is necessary to take measures on how regulations and tax systems should be conceived.

RENGO: Summary of the Discussion
In a meeting with Prime Minister Koizumi, RENGO affirmed a common understanding that “it was labor and management each performing their respective roles with government backing that stifled runaway inflation in the 1970s. Now is the time for all of us to follow that precedent and try our ingenuity at solving this crisis with unwavering resolve.” Currently RENGO has been examining the future status of its relations with political parties based on its political principles. Employment measures and economic recovery are urgent issues now and RENGO wants the LDP to study RENGO’s ideas thoroughly.

LDP: Summary of the Discussion
The LDP and RENGO share a similar recognition of job measures and economic recovery problems, and the LDP would like to study those issues fully.

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