Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, November 25, 2011, from 8:30 a.m. to 8:38 a.m.)

[Opening Remarks by Minister Jimi]

At an informal meeting of cabinet ministers today, I strongly requested that the postal reform-related bills be enacted in the current extraordinary session of the Diet.

According to media reports yesterday, the Prime Minister mentioned his strong resolve to bring the issue of postal reform to a conclusion during the current Diet session at the Democratic Party of Japan's (DPJ's) informal joint plenary meeting of members of Both Houses of the Diet. He said, “We must make a decision when necessary,” according to news reports today. This reform was covered by a three-party agreement that was reached when we were in the opposition camp, as you know, and it was one of the six common public pledges made by the parties at the time of the change of government. In addition, in a document signed by Prime Minister Noda, who is president of the DPJ, and Mr. Kamei, leader of the People's New Party, when the Noda coalition government was inaugurated in August, it was pledged that the cabinet would do all it can to enact the bills at an early date. Japan Post Group faces problems arising from its split into five companies and the business condition of each company has weakened. In the first half of the current fiscal year, personnel costs were reduced by 59 billion yen as a result of the reduction of bonuses from 4.3 months' worth of salary to 3 months' worth. Consequently, Japan Post Group reported a small profit. As the situation has become very severe, I appreciate understanding on that.

The cabinet has already decided that the government will sell Japan Post shares, so if the bills are passed, the freeze on the sale of shares in Japan Post Holdings and other group companies will be lifted and the sale is expected to generate funds for reconstruction. Therefore, the Minister of Internal Affairs and Communications and the Minister of Finance, as the relevant ministers, recently answered questions at a session of the Special Committee on Postal Reform.

In late October or in November, three major national newspapers argued in their editorials that deliberation on the postal reform-related bills should be quickly started. In that sense, I feel that there has been a major sea change. As the Minister for Postal Reform, I strongly requested that the Prime Minister exercise strong leadership.

That is all I have to say.

[Questions & Answers]

Q.

The plan to integrate the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange (OSE) was formally announced. Could you comment on that?

A.

I believe that it is an important task to strengthen the competitiveness of the Japanese financial market as a whole through the improvement of its presence as an international financial center. I have high regard for the TSE-OSE integration plan as a measure that is in line with the goal of increasing the competitiveness of the market.

As for the future of the exchanges, I hope that the TSE and the OSE will make increased efforts to improve convenience for users and consider how to create the main Asian market with a sense of urgency.

Q.

Regarding the Olympus scandal, the three persons who played the leading role in concealing losses have resigned even though the third-party committee has not yet reached a conclusion. How do you feel about that?

A.

Basically, the Olympus case is a matter concerning an individual company, so I would like to refrain from making comments at this time. However, as I have been saying, it is a mission of a capitalist, liberal society and also a mission of the Financial Services Agency (FSA) to create a fair, transparent and vigorous market based on law and justice. Therefore, I will carefully monitor the situation.

Q.

Do you think that this issue has moved closer to a solution?

A.

As various organizations are involved, I presume that there are various thoughts.

(End)

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