Provisional translation

Press Conference by Yoshimi Watanabe,Minister for Financial Services

(Excerpt)

June 6, 2008

[Opening Remarks by Minister Watanabe]

Good morning. Please feel free to ask me questions.

[Questions and Answers]

Q.

I would like to ask you about the issue of civil servants' acceptance of gifts from taxi drivers. Yesterday, the Ministry of Finance (MOF) announced that some ministry employees who habitually go home by taxi after working until late at night have received cash and gifts from taxi drivers. What are your feelings about this?

A.

As I stated before the Committee on Financial Affairs (of the House of Representatives) yesterday, it has come to our attention that 16 FSA employees have accepted beer and snacks. So far, no employees have been found accepting, taxi tickets or product coupons. The FSA will tackle this problem by improving the efficiency of its work processes and encouraging employees to avoid working until late at night and going home by taxi.

Q.

The MOF's announcement yesterday revealed the large scale and chronic nature of this problem. What do you think about the fact that the practice of taking cash and gifts has become endemic among national civil servants throughout ministries and agencies in Kasumigaseki?

A.

At the FSA, we have found no cases of an employee taking cash, product coupons and the like.

Q.

I understand that an additional investigation concerning the taxi issue is ongoing. How will the investigation proceed?

A.

I have not yet received any reports on this.

Q.

As it is expected that the bill for the reform of the civil servant system will be enacted today, could you again explain the bill's significance?

A.

The primary purpose of the bill is to ensure that administrative initiatives will be transferred from the bureaucracy to politicians. Through the abolition of the fast-track career system and the eradication of ministerial sectionalism, this bill seeks to establish a civil servant system suited to the task of supporting a real parliamentary cabinet system, and in light of the bill's importance we have accepted a major amendment thereto. I believe that the agreement on this bill marks a milestone in the history of Japan's constitutional government.

After the bill's enactment, we must immediately begin preparations to flesh out the specifics. We are scheduled to establish a headquarters for the promotion of the reform of the national civil servant system within one month. We will be looking for candidates for the post of the secretary-general of the headquarters both within and outside of the public sector, as has been repeatedly suggested in Diet deliberations. This means that we will select a person knowledgeable about affairs relating to both the public and private sectors. As the idea of publicly soliciting candidates for this post has been suggested in the Diet, we will quickly begin preparations with this in mind.

As has been repeatedly pointed out, the essential thing will be to implement reform rather than establish the framework for reform, and so we will begin preparations for implementation.

Q.

It is expected that the bill to amend the Financial Instruments and Exchange Act will be enacted today. What is your view concerning the challenges to be overcome in order to revitalize the Tokyo market in the future.

A.

This bill is set for enactment today as a result of serious deliberations in both of the House of Representatives and the House of Councillors. The bill is being enacted with the hope of helping strengthen the competitiveness of Japan's financial and capital markets. It will ensure that the Tokyo market remains open to the outside world and attracts funds from both domestic and foreign investors, thereby injecting vitality into the Japanese economy. Also, it will enable us to create a society in which people feel affluent through investment of their money in the market. It is important to avoid creating the impression that Japan is a closed country, and as such we must make it clear to the outside world that we are continually pursuing our reform initiative while improving the market environment and infrastructure. As Prime Minister Fukuda has said, Japan is carrying out a ''quiet revolution'' in a bold manner. We would like to seek understanding in this regard as well.

Q.

As for the taxi issue, it would seem that accepting beer and snacks is inappropriate in light of the code of ethics for civil servants. What do you think about this?

A.

As I only heard about this issue yesterday, I would like to wait until I have more information at my disposal.

Q.

At today's cabinet meeting, cabinet members were clad in ''Kariyushi'' (traditional Okinawan shirts). How did you feel about this?

A.

We wore ''Kariyushi'' at a cabinet meeting last summer as well. As lawmakers, we must attain an appropriate knowledge of Okinawan culture. Wearing ''Kariyushi'' provides a good opportunity to remind us of the importance of this.

Q.

How did the Prime Minister look in a ''Kariyushi'' as opposed to his usual suit?

A.

He looked rather chic.

Q.

The Ministry of Education, Culture, Sports, Science and Technology is seeking to increase the number of teachers as it considers a basic plan for the promotion of education with a budgetary request in mind. Although this matter does not directly concern your area of jurisdiction, what is your thinking in relation to the act for the promotion of administrative reform?

A.

There was also discussion last year on this matter in relation to the act for the promotion of administrative reform. It was settled last year in a way that did not violate this act. The act for the promotion of administrative reform must be observed.

Q.

One last question: are the 16 FSA employees (who were found to have accepted beer and snacks from taxi drivers) concentrated in any particular bureau?

A.

I would ask you to consult the FSA officials in charge of this matter.

(End)

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