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Japan PM makes pitch as party struggles before poll
Source: Agencies |
July 10, 2010, Saturday
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JAPANESE Prime Minister Naoto Kan urged voters to give his party a second chance in a weekend election that could deliver a sharp setback to his government, putting his job at risk and stalling efforts at fiscal reform.
Sagging support for the Democratic Party of Japan, which surged to power for the first time just last year, jumped after Kan -- a former civic activist and Japan's fifth leader in three years -- replaced his indecisive predecessor last month.
But ratings slipped after Kan floated the long taboo topic of raising the sales tax to curb a public debt close to twice the size of the nearly US$5 trillion economy and struggled to persuade voters he had a clear plan for fixing Japan's economic woes.
Since then, Kan has been stressing that no tax hike was imminent and would not occur without seeking a popular mandate in the next lower house election, which must be held by late 2013.
"The sales tax will not be raised, not even by 1 yen, until the next election," Kan told voters in Fukui, western Japan.
"Today is the last day (of the campaign). We want you to let us implement our policies that would improve the economy, public finances and social security services," Kyodo news agency quoted the premier as saying today.
The DPJ, which ousted its long-dominant rival last year with pledges to cut waste, end bureaucrats' control over policymaking and spend more on consumers to boost growth, will almost certainly run the government whatever the outcome of tomorrow's vote because it controls the powerful lower house.
But the party needs a majority in the upper chamber to avoid policy deadlock and begin taking steps to reduce a public debt that is the worst among advanced countries.
Media surveys this week showed the DPJ would likely win around 50 or even fewer of the 121 seats up for grabs in the 242-member chamber -- short of Kan's target of keeping all 54 seats the Democrats have up for re-election.
That would deprive the DPJ and its tiny coalition partner, the pro-spending People's New Party, of a majority in the upper house. The Democrats would be forced to seek new allies, hampering the government's ability to forge ahead with the fiscal reform that Kan has put at the heart of his campaign.
It would also leave Kan vulnerable to a challenge from powerbroker Ichiro Ozawa -- a critic of his sales tax proposal -- ahead of a September party leadership vote, although few expect Kan to go without a fight.
The DPJ's current coalition partner opposes raising the 5 percent sales tax any time soon, as do some potential allies. Other opposition parties agree a hike is inevitable but would probably be reluctant to help out the rival DPJ, which has not yet mapped out any detailed tax reform proposals.
The 63-year-old Kan has called for non-partisan talks on tax reform and said any rise in the 5 percent sales tax would take at least two to three years to implement.
He is also touting a "Third Way" economic strategy that would use tax revenues to target growth areas such as healthcare and the environment, although many economists are dubious.
The leaders of two potential partners, the pro-reform Your Party and New Komeito, which partnered with the Liberal Democratic Party until its ouster last year, have rejected the idea of an alliance with the DPJ.
Analysts say they might change their tune later, but would drive hard bargains if the Democrats fare badly.
Media surveys, while focusing on the Democrats possible setback, have also noted that a hefty chunk of voters are undecided, and battles in many districts are close.
Sagging support for the Democratic Party of Japan, which surged to power for the first time just last year, jumped after Kan -- a former civic activist and Japan's fifth leader in three years -- replaced his indecisive predecessor last month.
But ratings slipped after Kan floated the long taboo topic of raising the sales tax to curb a public debt close to twice the size of the nearly US$5 trillion economy and struggled to persuade voters he had a clear plan for fixing Japan's economic woes.
Since then, Kan has been stressing that no tax hike was imminent and would not occur without seeking a popular mandate in the next lower house election, which must be held by late 2013.
"The sales tax will not be raised, not even by 1 yen, until the next election," Kan told voters in Fukui, western Japan.
"Today is the last day (of the campaign). We want you to let us implement our policies that would improve the economy, public finances and social security services," Kyodo news agency quoted the premier as saying today.
The DPJ, which ousted its long-dominant rival last year with pledges to cut waste, end bureaucrats' control over policymaking and spend more on consumers to boost growth, will almost certainly run the government whatever the outcome of tomorrow's vote because it controls the powerful lower house.
But the party needs a majority in the upper chamber to avoid policy deadlock and begin taking steps to reduce a public debt that is the worst among advanced countries.
Media surveys this week showed the DPJ would likely win around 50 or even fewer of the 121 seats up for grabs in the 242-member chamber -- short of Kan's target of keeping all 54 seats the Democrats have up for re-election.
That would deprive the DPJ and its tiny coalition partner, the pro-spending People's New Party, of a majority in the upper house. The Democrats would be forced to seek new allies, hampering the government's ability to forge ahead with the fiscal reform that Kan has put at the heart of his campaign.
It would also leave Kan vulnerable to a challenge from powerbroker Ichiro Ozawa -- a critic of his sales tax proposal -- ahead of a September party leadership vote, although few expect Kan to go without a fight.
The DPJ's current coalition partner opposes raising the 5 percent sales tax any time soon, as do some potential allies. Other opposition parties agree a hike is inevitable but would probably be reluctant to help out the rival DPJ, which has not yet mapped out any detailed tax reform proposals.
The 63-year-old Kan has called for non-partisan talks on tax reform and said any rise in the 5 percent sales tax would take at least two to three years to implement.
He is also touting a "Third Way" economic strategy that would use tax revenues to target growth areas such as healthcare and the environment, although many economists are dubious.
The leaders of two potential partners, the pro-reform Your Party and New Komeito, which partnered with the Liberal Democratic Party until its ouster last year, have rejected the idea of an alliance with the DPJ.
Analysts say they might change their tune later, but would drive hard bargains if the Democrats fare badly.
Media surveys, while focusing on the Democrats possible setback, have also noted that a hefty chunk of voters are undecided, and battles in many districts are close.
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