Japan quake relief scheme endorsed
Source: Agencies |
May 14, 2011, Saturday
|
Print Edition
Print Edition
JAPAN'S government endorsed a plan yesterday for a fund to help finance damages stemming from the crisis at a tsunami-crippled nuclear plant, using public money and mandatory contributions from utility companies.
Tokyo Electric Power Co expects a deluge of damage claims stemming from the radiation-leaking Fukushima Dai-ichi nuclear plant on the northeastern coast, in the worst nuclear accident since Chernobyl in 1986.
However, the utility is not expected to be able to pay all of them.
The government's plan, which would spread the burden for the crisis and must be referred to parliament for its expected approval, would create an entity that collects money for the compensation fund from TEPCO and other utilities that operate nuclear power plants.
The government will issue special bonds that can be cashed by the body when needed to pay claims.
Economy and Trade Minister Banri Kaieda insisted earlier this week that the compensation plan was not a bailout for TEPCO, but rather a way to ensure victims get paid.
"We want to avoid big changes in the electricity bills and contain (the public burden) as much as possible," Kaieda said yesterday.
TEPCO President Masataku Shimizu said he expects the plan to go into effect soon.
"Under this support scheme, while receiving support from the government, we will prepare to compensate those who are suffering in a fair and prompt manner," he said in a statement.
Shinichi Ichikawa, the director of equity research at Credit Suisse in Tokyo, said the plan needed to achieve three goals, including maintaining a stable electricity supply, easing financial market concern and ensuring victims of the nuclear disaster would be compensated.
TEPCO has sought a 2 trillion yen (US$24.8 billion) loan to tide it through the initial emergency period. It also expects to pay 50 billion yen in initial compensation to nearly 80,000 residents evacuated from around the radiation-leaking plant. Overall damages are expected to be much higher.
Yesterday, the operator of a nuclear plant in central Japan began suspending operations at its reactors while improving tsunami protections.
The crisis at Fukushima had prompted the government to evaluate all of Japan's 54 reactors for quake and tsunami vulnerability.
Tokyo Electric Power Co expects a deluge of damage claims stemming from the radiation-leaking Fukushima Dai-ichi nuclear plant on the northeastern coast, in the worst nuclear accident since Chernobyl in 1986.
However, the utility is not expected to be able to pay all of them.
The government's plan, which would spread the burden for the crisis and must be referred to parliament for its expected approval, would create an entity that collects money for the compensation fund from TEPCO and other utilities that operate nuclear power plants.
The government will issue special bonds that can be cashed by the body when needed to pay claims.
Economy and Trade Minister Banri Kaieda insisted earlier this week that the compensation plan was not a bailout for TEPCO, but rather a way to ensure victims get paid.
"We want to avoid big changes in the electricity bills and contain (the public burden) as much as possible," Kaieda said yesterday.
TEPCO President Masataku Shimizu said he expects the plan to go into effect soon.
"Under this support scheme, while receiving support from the government, we will prepare to compensate those who are suffering in a fair and prompt manner," he said in a statement.
Shinichi Ichikawa, the director of equity research at Credit Suisse in Tokyo, said the plan needed to achieve three goals, including maintaining a stable electricity supply, easing financial market concern and ensuring victims of the nuclear disaster would be compensated.
TEPCO has sought a 2 trillion yen (US$24.8 billion) loan to tide it through the initial emergency period. It also expects to pay 50 billion yen in initial compensation to nearly 80,000 residents evacuated from around the radiation-leaking plant. Overall damages are expected to be much higher.
Yesterday, the operator of a nuclear plant in central Japan began suspending operations at its reactors while improving tsunami protections.
The crisis at Fukushima had prompted the government to evaluate all of Japan's 54 reactors for quake and tsunami vulnerability.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
