JAPAN: Yoshihiko Noda calls for tax reform, but urges against calling a snap election

Record ID: 464990

  • Title: JAPAN: Yoshihiko Noda calls for tax reform, but urges against calling a snap election
  • Date: 30th August 2011
  • Summary: TOKYO, JAPAN (AUGUST 29, 2011) (REUTERS) NEWLY ELECTED DEMOCRATIC PARTY HEAD YOSHIHIKO NODA WALKING UP TO PODIUM (SOUNDBITE) (Japanese) NEWLY ELECTED DEMOCRATIC PARTY HEAD YOSHIHIKO NODA, SAYING: "There has to be a debate about what type of tax to implement, and what sort of time scale to implement it for, as well as its effect on the economy. These things are currently being looked into by the government's tax group and they will suggest a couple of options. Those will then be submitted and I plan to wait for that before making a decision." NEWS CONFERENCE IN PROGRESS CAMERAS FILMING NEWS CONFERENCE (SOUNDBITE) (Japanese) NEWLY ELECTED DEMOCRATIC PARTY HEAD YOSHIHIKO NODA, SAYING: "I don't think it's possible to dissolve parliament at the moment. What needs to be done is recovery and rebuilding in the wake of the disasters. Everyone needs to do their jobs and work to get things done. The things we promised in our election manifesto are expected over a scale of four years. As such, I believe that it should be our goal to show a result at the end of the four-year period." NODA WALKING OFF STAGE
  • Embargoed: 14th September 2011 13:00
  • Keywords:
  • Location: Japan, Japan
  • Country: Japan
  • Topics: Domestic Politics,People
  • Reuters ID: LVA9DW3IHAGMH6A6DMW8I5FNBASK
  • Story Text: Newly-elected ruling Democratic Party head and soon to be Prime Minister Yoshihiko Noda said on Monday (August 29) that tax reforms are likely and that he has no plans to call a snap election.
    The 54-year-old finance minister, who defeated Trade Minister Banri Kaieda in a run-off vote in the ruling party, must deal with a resurgent yen that threatens exports, forge a new energy policy while ending the worst nuclear crisis since Chernobyl, and find funds to rebuild from the March 11 tsunami at a time when huge public debt has already triggered a credit downgrade.
    Noda as finance minister since June 2010 has backed the government's proposal to double the 5 percent sales tax by the middle of the decade to fund bulging social security costs and curb massive public debt.
    Japan's debt is double the size of its $5 trillion U.S. dollars economy, and Noda said the country needs to look into implementing a tax.
    "There has to be a debate about what type of tax to implement, and what sort of time scale to implement it for, as well as its effect on the economy. These things are currently being looked into by the government's tax group and they will suggest a couple of options. Those will then be submitted and I plan to wait for that before making a decision," he said.
    Noda also urged against a snap election for a nation that has had five other prime ministers in five years.
    "I don't think it's possible to dissolve parliament at the moment. What needs to be done is recovery and rebuilding in the wake of the disasters. Everyone needs to do their jobs and work to get things done. The things we promised in our election manifesto are expected over a scale of four years. As such, I believe that it should be our goal to show a result at the end of the four-year period," he said.
    The finance minister, who knocked out telegenic former foreign minister Seiji Maehara -- the favourite of ordinary voters -- in the first round, injected a rare moment of levity into the tense event.
    The jowly, stocky lawmaker compared himself to a "dojo" loach fish -- an eel-like inhabitant of the deep, and said that even if elected he wouldn't be able to quickly raise support levels.
    He emphasized that while he is not a telegenic "goldfish", he had his own abilities and would look to fulfill the election promises that the Democratic Party originally swept to power on in 2009.
    Noda is considered a safe pair of hands to lead the world's third-biggest economy but doubts run deep as to whether he will have sufficient support and stay in office long enough to tackle a long list of economic woes and cope with a nuclear crisis.
    Noda, who will be confirmed by parliament on Tuesday, will be the third premier since his ruling Democratic Party of Japan swept to power in 2009.
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