Press Conference by Yuji Yamamoto, Minister for Financial Services

(Excerpt)

August 3, 2007

[Minister's Statement]

I would like to report on the Cabinet meeting. The Minister of Health, Labor and Welfare reported on a labor economy analysis for 2007. At a ministerial conference following the official Cabinet meeting, the Minister for Disaster Management made remarks on Typhoon No. 5. The Chief Cabinet Secretary made remarks on the standards for FY 2008 budget requests. That concludes my statement.

[Questions and Answers]

Q.

In response to the results of the House of Councillors election, the Prime Minister had indicated that a cabinet shuffle would be implemented in September. I think some people are calling for an earlier shuffle. Minister, what are your views on this call?

A.

Conditions may change favorably in the case of an earlier shuffle. However, some people are suggesting that the original plan may be better, due to the need for a prudent approach on diplomacy and the Diet. Each proposal contains both pros and cons. I believe that the Prime Minister is in the best position to decide, as he is best positioned for a bird's eye view of the situation.

Q.

I'm afraid of reiterating a question posed at the previous press conference. Would you discuss how the Financial Services Agency would treat bills after the reversal of power relations in the House of Councillors?

A.

Based on past experience, I can say that bills on which the ruling and opposition camps might have been divided were revised in forms that the two camps are able to support at an extraordinary Diet session last year and at an ordinary session this year. At the ordinary session, some bills that were supported by all parties in the House of Councillors were subjected to railroading by the ruling camp in the House of Representatives. Some had been expected them to die amid political disputes. Eventually, however, all bills cleared the Diet. FSA-proposed bills are destined to become cornerstones of the economy. Debates on these bills should move past the specific disputes between the ruling and opposition parties and gain the support of all parties. I think that it is important for us to pursue the ideal of unanimous support in submitting and managing bills.

Q.

Agriculture, Forestry and Fisheries Minister Akagi resigned on August 1. What are your views on this development?

A.

I respect Agriculture, Forestry and Fisheries Minister Akagi's decision following the ruling camp's House of Councillors election defeat, which was an important and positive decision. Some consider that he should have resigned before the announcement of the election or amid a series of media reports about him. Mr. Akagi, as an agricultural policy expert, had a strong willingness to tackle policies. Until the House of Councillors election results were made available, I believe that he could never have predicted the impact of criticism against him. In this sense, I believe that Mr. Akagi did a lot of soul-searching in regard to various matters prior to reaching his decision to resign. He might have had a willingness to remain in office until the shuffle so as to visit the United States and conduct World Trade Organization negotiations. However, he decided to give priority to his resignation, although feeling a certain regret. I believe he made a good decision.

Q.

After today's Cabinet meeting, you entered the Prime Minister's office. What topics did you discuss with the Prime Minister?

A.

I briefed him on the situation regarding financial services and on a new state model I uncovered during my earlier visit to Singapore. I had the opportunity to exchange views with the Prime Minister, primarily on matters pertaining to financial services.

Q.

Please permit me to inquire about former Minister Akagi once again. Mr. Akagi was called to the Prime Minister's Office and submitted his resignation after the Prime Minister offered to placate public sentiment through certain moves, including replacing Mr. Akagi. This process indicates that Mr. Akagi was forced to resign instead of being left to resign voluntarily. Would you once again give us your views on cabinet ministers' decision to remain in office or resign?

A.

Becoming a cabinet minister is never guaranteed, even if the individual in question is up for the job. The Prime Minister alone has the right to appoint cabinet ministers. Even when a cabinet formation taskforce is established, we do not know whether we are to be appointed. We only know for sure just prior to our appointment. In this sense, we have nothing but a willingness to put forth our utmost efforts in a straightforward manner to achieve the missions with which we are charged. I believe that this has been the case with Mr. Akagi. I had not heard from Mr. Akagi or the Prime Minister regarding whether the Prime Minister's offer was linked to the development on the following day. In this sense, I have no way of knowing of their relationship. As I noted earlier, I only suspect that Mr. Akagi made the decision in response to the election results and media reports that persisted even after the election about his political money problem. I don't have any more details at my disposal. Generally, the Prime Minister has the right to unilaterally appoint cabinet ministers. My conclusion is that we should not make any comments on the appointment.

(End)