The 155th Extraordinary Diet session is in session and RENGO has begun conducting emergency demand activities on political parties since October 18 starting with the Democratic Party of Japan. To this point, RENGO has served demands on the Liberal Democratic and New Komeito Parties on October 23rd and the government (Chief Cabinet Secretary) on the 24th. General Secretary Kusano, Assistant General Secretary Murakami, Economic and Social Policy Department Executive Director Narukawa represented the RENGO side. Chief Cabinet Secretary Fukuda, Assistant Deputy Chief Cabinet Secretary Fuseya, and Policy Planning and Evaluation Director-General (in charge of labor issues) Aoki of the Ministry of Health, Labor and Welfare represented the government at the RENGO demand activity which took place at the Prime Minister's official residence. GS Kusano asked the government to compile and implement a supplementary budget during the on-going Diet session for comprehensive measures to fight deflation, revive consumption and job measures. Responding to the appeal, Chief Cabinet Secretary Fukuda answered that there were many good points in RENGO demands and that the government hoped to actively work on them as much as possible.

 

Photo: GS Kusano appeals to CCS Fukuda "a supplementary budget is indispensable." (Oct. 24 at the Prime Minister's official residence.)

At the demand activity on the LDP, which took place in the House of Representatives on October 23, GS Kusano served Liberal Democratic Party Policy Research Council Chairman Aso with a statement. Kusano emphasized that "the biggest issue in this current Extraordinary Diet Session is employment," and asked for improvement of a sufficient safety net and for the compilation of a supplementary budget to buttress improvement. Kusano also pointed out that by accelerating disposal of bad loans, small to mid-sized businesses would especially be dealt a tremendous blow. He requested enhancing support measures for those businesses saying, "you ought to think about how you can help them survive, not collapse."

Chairman Aso responded saying, "I think that at least my ideas are closer to RENGO's than those of Prime Minister Koizumi." He also said that improving the safety net for employment "has to come with increased public spending, which will be difficult as there is a ¥30 trillion ceiling on issuing government bonds. Improvement should be carried out after changing the policies." He also added, "it is not true that the economy will recover when non-performing assets are disposed of. If the price of land were to rise by about 20%, then non-performing assets in Japan would be gone." He clearly recognized that reducing the remaining bad loans is unrelated to economic recovery and referred to problems of deregulation and falling real estate prices.
RENGO is scheduled to conduct its demand activities on the Social Democratic and Liberal Parties on October 30.