Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Tuesday, January 16, 2024, 5:50 pm to 6:05 pm)

Q.

I would like to ask about support for people affected from the Noto Peninsula Earthquake. Prime Minister Kishida announced his intention to utilize the FY2023 reserve fund of more than 100 billion yen. Please explain the specific use of this fund and the additional disaster response at the Ministry of Finance and the Financial Services Agency (FSA). 

A.

In response to the Noto Peninsula Earthquake, the Cabinet decided today to change the budget for the next fiscal year to double the general reserve fund from 500 billion yen to 1 trillion yen. In addition to these measures, the government is currently studying how to prepare a package to support the lives and livelihoods of people affected from the disaster as soon as possible.
Specifically, we are considering incorporating a wide range of measures in the package, including measures to restore infrastructure and lifelines, secure temporary housing, dispose of disaster waste, and rebuild small and medium-sized enterprises, agriculture, forestry, and fisheries, and tourism.
In this context, the Prime Minister recently announced the policy that the government will decide on the use of the reserve fund in a scale exceeding 100 billion yen by the end of the month, following the decision made on January 9 about the reserve fund for push-type support. This is to surely carry out the measures one by one as soon as it is available after the compilation of the package. The Ministry of Finance will firmly respond in line with this policy.
Regarding the disaster response by the Ministry of Finance and the FSA, we request private financial institutions and the Japan Finance Corporation to flexibly deal with depositors and businesses in the affected areas, and we also have disseminated the guidelines for debt consolidation for victims of natural disasters as the debt consolidation programs for housing loans, etc., as well as support for the debt consolidation (including the exemption and reduction of housing loans, etc.) based on the guidelines. In addition, the government has reduced the interest rates on disaster recovery loans and education loans implemented by the Japan Finance Corporation, etc. as measures to accompany the designation of a disaster of extreme severity.
We will continue to work closely with the parties concerned and to take necessary measures swiftly and appropriately in order to minimize the impact by the earthquake on the lives of the people and the financial and economic sectors.

Q.

Today, the external investigation committee released a final report on the actions of Sompo Japan regarding fraudulent claims by BIGMOTOR. I would like to ask your opinion on this report, and if you know what is in it, please give us your evaluation. 

A.

As for the report you pointed out, I am of course aware that Sompo Holdings released it, but I would like to refrain from commenting on the evaluation of its contents.
In any case, we are currently conducting on-site inspections of Sompo Japan and Sompo Holdings to gain a deeper understanding of their actual situations. We would like to refer to the report published this time in this process.
And, depending on the results of the on-site inspections, we will take strict action according to laws and regulations.

Q.

I would like to ask about the introduction of a new classification of the specified small motorized bicycle in the compulsory automobile liability insurance. Have the committee members been provided with sufficient information about it? How and when did you present enough material for them to receive a proposal on Monday and to make a conclusion on Friday? The actual situation is in transition regarding this new vehicle that can be driven from the age of 16 without a license. I would like to ask your opinion as the Minister. 

A.

I recognize that your intention of this question is about the fact that electric kickboards are increasingly being used. Yesterday, at the 147th meeting of the Compulsory Automobile Liability Insurance Council, as you just mentioned, we discussed the introduction of a new classification of the specified small motorized bicycle in the compulsory automobile liability insurance rate.
In order for the Council to ensure proper deliberation, we provided each member with necessary information, including an outline of the system after the enactment of the revised Road Traffic Act in advance, and at the meeting held on the 15th, we presented a proposal for the concept of the new classification and calculation method, and gained their understanding after deliberation.
And on the 19th, we plan to discuss the issue after showing the specific rates of specified small motorized bicycle and the data that will serve as the basis for the calculation. We will continue to make efforts to provide sufficient information that is necessary for the deliberation.
It doesn’t mean that the Council must reach a conclusion on the 19th. As it is based on the deliberations of the committee members, if the committee members ask for additional materials, we would like to respond to them in good faith, and if the discussion is to continue, the Council will not make a decision until the results of the discussion emerge. I don't mean that the decision should be made on a specific date due to the schedule.