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January 14, 2012

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Japanese PM reshuffles Cabinet posts

JAPANESE Prime Minister Yoshihiko Noda replaced five members of his Cabinet yesterday in a bid to win more cooperation from the opposition to raise the sales tax and rein in the country's bulging fiscal deficit.

Two of the removed ministers had been censured by the opposition, including former Defense Minister Yasuo Ichikawa, who claimed he was unaware of the details of a 1995 rape of a schoolgirl by three US servicemen on the island of Okinawa - an incident that continues to impact local support for the large American troop presence there.

The opposition, which controls the less powerful upper house of parliament, had threatened to reject any discussion about key tax legislation unless Ichikawa was fired.

Twelve posts were unchanged, including finance and foreign ministers. The 17-member Cabinet was formally installed later yesterday in a ceremony with the emperor.

Noda, who took office in September, says Japan urgently needs to take steps to reduce its debt burden as the nation ages and its labor force shrinks, putting a greater burden on the social security and tax systems. He has promised to submit a bill in the next parliamentary session to raise the 5 percent sales tax in two stages, to 8 percent in 2014 and to 10 percent by 2015.

The reshuffle will "strengthen our government to tackle the major policy goal of social security and tax reforms," Chief Cabinet Secretary Osamu Fujimura said.

Noda named Katsuya Okada, former foreign minister, as deputy prime minister to spearhead those efforts.



 

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