STATEMENTS

A comment to the government's "Economic rebirth measures"

November 12, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

  1. The government adopted the "economic rebirth measures" at the economic policy ministerial meeting on 11 November. The total budget is about 18 trillion yen including about 17 trillion yen for the main project and about 900 billion yen for care and nursing. The aim of the measures is to restore the economy in real terms in the last half of Heisei 12 (2000 AD) and to ensure long-term development of the economy from Heisei 13 (2001 AD). However, the measures will not resolve the high unemployment rate which is the worst since world war II. Secondly it will not resolve insecurity in peoples' lives, therefore, we cannot avoid criticising the "measures" by the coalition government.

  2. The "Economic rebirth measures" have two aims: to create new demands for real economic recovery and to determine the direction of the structural reform of the socio-economic fabric of our country. The measures include 1) promotion of medium-small size enterprises and venture businesses, 2) propulsion of strategic and selective technological development, 3) preparation of the infrastructure for life towards the 21st century, and 4) revitalization of the money market. They allocate 6.8 trillion yen for preparation of social capital such as public investment (national costs 3.5 trillion yen) and 7.4 trillion yen for financial measures for medium-small size enterprises (national costs 700 billion yen). However, the main parts of the measures are, as in the past, an expansion of public works and financial support for enterprise. The measures relating peoples' lives and employment are not sufficient at all.

  3. As for the employment measures, although the items which cost 300 billion yen are included, the main measure is to assist in the creation of employment in medium-small size enterprises (51 billion yen), and to create employment in the area which is affected by restructuring (32.1 billion yen). There are no measures like a creation of employment, in the area of education, childcare, welfare, and environment, which are socially necessary for the future. Today what is most needed is support for the employment insurance scheme, which protects unemployed workers and also creation of more than 1.4 million jobs. A budget of several trillion should be allocated to these projects.
    The support for medium-small size enterprises is limited to the finance of new businesses such as ventures and to create an appropriate environment for establishing new businesses. But useful and concrete supportive measures regarding human resource development and technological development are few. Revitalisation of medium-small size enterprises requires an improvement of the quality of employment and a preventative measure not to shift the loss on to medium-small size enterprises, rather than measures of supply. It should be promoted as "a law to protect workers when there is change or rationalization in the organisation of the enterprises" or "human resource development project in the manufacturing sector".
    With regard to welfare problems like pension reform and measures for the aging society, which has drawn high public interest, "the measure" mentioned an adjustment of the care insurance scheme with the agreement of the three parties, an implementation of the government's proposed pension reform and an introduction of a fixed contribution pension in the year of Heisei 12. However, these measures impose a burden on people and are a retrograde reform which does not provide secure and reliable social security system which people are seeking and therefore is not acceptable.

  4. As a goal for "new base for the developments in the 21st century", the items such as "a town where people can live without the car" "rapid promotion of information technology" and "improved security for people" are mentioned. However, these are limited to only "ideas" and there is no implementation plan and budgets which show a strong commitment.
    The important task for this extraordinary session of the Diet is to resolve employment problems and insecurity in peoples' lives and to restore brightness and confidence into life. Therefore, measures to improve employment and living conditions and also the restructuring of welfare and social security should be set as a priority at the base of the "economic rebirth measures". The "rebirth measures" which do not devote to the improvement of individual's life will not produce any results.

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