Ozawa quits DPJ in revolt over sales tax
Source: Agencies |
July 3, 2012, Tuesday
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JAPANESE political heavyweight Ichiro Ozawa, one of the key figures behind the ruling party's rise to power, led dozens of lawmakers out of the party yesterday, but the government will retain its majority in the powerful lower house of parliament.
Indeed, the departure of Ozawa, 70, and his followers could put Prime Minister Yoshihiko Noda in a better position to consolidate control on his fractious party and cut deals with the opposition, whose help he needs to pass laws since they control the upper house, which can block bills.
"I'm sure Noda has the champagne on ice. He'll be happy to see the back of Ozawa," said Jeffrey Kingston, director of Asia studies at Temple University's Japan campus.
Ozawa, known as the "Shadow Shogun" for his backroom deals, and his followers quit over a plan to double the sales tax to 10 percent in three years.
The proposal, aimed at curbing ballooning public debt, was passed by parliament's lower house last week with the help of the opposition. But 57 lawmakers in Noda's Democratic Party of Japan voted against it, with 15 others abstaining or absent.
Forty lower house members and 12 in the upper chamber will resign from the DPJ, an aide told reporters. That would bring down the ruling party's numbers in the 480-member lower house to 249 from 289.
However, Kyodo news agency said later the number had been revised to 50 in total after two lower house MPs said they would not leave the party.
Ozawa, whose smaller party merged with the then-opposition Democrats in 2003, has argued the planned tax hike violates campaign pledges made when the Democrats swept to power three years ago.
Many people are also wary of raising the tax at a time when Japan's recovery from last year's triple blow of a big earthquake, tsunami and nuclear crisis is not yet assured.
But Noda, a former finance minister, has insisted it is vital to get Japan's fiscal house in order and find ways to fund the bulging social welfare costs of a fast-aging population.
Ozawa's defection could well make it easier for Noda to cooperate with the main opposition Liberal Democratic Party and its one-time partner, the New Komeito party, in getting the bill through the upper house.
Indeed, the departure of Ozawa, 70, and his followers could put Prime Minister Yoshihiko Noda in a better position to consolidate control on his fractious party and cut deals with the opposition, whose help he needs to pass laws since they control the upper house, which can block bills.
"I'm sure Noda has the champagne on ice. He'll be happy to see the back of Ozawa," said Jeffrey Kingston, director of Asia studies at Temple University's Japan campus.
Ozawa, known as the "Shadow Shogun" for his backroom deals, and his followers quit over a plan to double the sales tax to 10 percent in three years.
The proposal, aimed at curbing ballooning public debt, was passed by parliament's lower house last week with the help of the opposition. But 57 lawmakers in Noda's Democratic Party of Japan voted against it, with 15 others abstaining or absent.
Forty lower house members and 12 in the upper chamber will resign from the DPJ, an aide told reporters. That would bring down the ruling party's numbers in the 480-member lower house to 249 from 289.
However, Kyodo news agency said later the number had been revised to 50 in total after two lower house MPs said they would not leave the party.
Ozawa, whose smaller party merged with the then-opposition Democrats in 2003, has argued the planned tax hike violates campaign pledges made when the Democrats swept to power three years ago.
Many people are also wary of raising the tax at a time when Japan's recovery from last year's triple blow of a big earthquake, tsunami and nuclear crisis is not yet assured.
But Noda, a former finance minister, has insisted it is vital to get Japan's fiscal house in order and find ways to fund the bulging social welfare costs of a fast-aging population.
Ozawa's defection could well make it easier for Noda to cooperate with the main opposition Liberal Democratic Party and its one-time partner, the New Komeito party, in getting the bill through the upper house.
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