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Noda must fully explain necessity of tax hike

The environment surrounding the administration of Prime Minister Yoshihiko Noda has become harsher. The decline of the Cabinet’s approval rating, discord within the ruling Democratic Party of Japan and stalled discussions between the ruling and opposition parties are just a few of the problems it faces.

Noda no longer has the leisure to continue the attitude described as “safe driving.” He needs to go on the offensive toward realizing integrated reform of the social security and tax systems, which will determine the fate of the Noda Cabinet.

On Monday, in a speech to fellow DPJ members at a party convention, Noda touched upon the comprehensive reform.

“There will be no future for Japan and its people without carrying through the reform to the end,” he emphasized.

He also said, “I’d like to clearly declare [against opposition parties] that I will seek the verdict of the public after carrying out the things that we must do.”

He thus even touched on the possibility of dissolving the House of Representatives for a general election after bills to raise the consumption tax rate clear the Diet.

Within the DPJ, there are still members who oppose or are cautious about the consumption tax rate hike, especially among groups that support former DPJ President Ichiro Ozawa.

However, the party has already clearly confirmed the course of a tax hike through such events as last autumn’s party presidential election and approval of a draft plan for the integrated reform this year.

As a representative at a meeting of the party’s local secretaries general complained, it is quite irresponsible for Diet members of a ruling party to make statements that run counter to the government’s policy course.

Rather than taking a conciliatory intraparty stance, Noda should exercise his leadership in making specific programs for the integrated reform and create an environment for starting ruling-opposition discussions on the reform.

Regarding its manifesto for the 2009 lower house election, the DPJ’s action plan for fiscal 2012, adopted at the convention, stipulates that the party “will make the greatest possible efforts toward its realization.” This is questionable.

For the DPJ, there is no point in persisting in deceptive actions ― posturing as if to carry out a manifesto that collapsed due to a lack of revenue sources. It is important for the party to first apologize over the fact that the manifesto, created when the DPJ was an opposition party, is impossible to realize. Then, the party should promote the integrated reform.

Last summer, the party made an interim report on reexamination of the manifesto. The report vaguely acknowledged that “deliberation and validation of the manifesto were insufficient” when the party created it. The party needs to carry out a much deeper reexamination of the manifesto.

According to an opinion survey by the Yomiuri Shimbun last weekend, the Noda Cabinet’s approval rating dropped again this month, by five points from December to 37 percent. The Cabinet reshuffle did not succeed in raising the popularity of the Noda administration.

The survey also revealed that 55 percent of those who responded oppose the consumption tax hike, far above the 39 percent who approve it.

We should especially note that 85 percent of respondents agreed Noda is not fully explaining his policies and thoughts.

As Noda clearly stated he would stake his political life on the integrated reform, he should honestly tell the general public there is no choice other than asking them to accept an increased burden and thoroughly persuade them.

Of course, administrative reform should be thoroughly carried out. To do so, it is indispensable for Diet members to make efforts to accept “their own pains” through cuts in their annual pay and a reduction in the number of lower house members.

After concrete measures on these issues are compiled, there will be a good chance to move forward on the ruling-opposition talks that the Liberal Democratic Party and New Komeito have been refusing to start.

(The Yomiuri Shimbun)

(Asoa News Network)
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