ID :
174166
Fri, 04/08/2011 - 18:22
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https://oananews.org//node/174166
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Keidanren chief urges deregulated special zone in quake reconstruction
TOKYO, April 8 Kyodo -
Japan should remove all regulations in the regions devastated by the March 11 earthquake and tsunami to rebuild stricken towns into safer places to live, the head of Japan's largest business lobby said.
Reconstruction in such a fully deregulated environment ''can attract creative ideas and know-how from the private sector'' while helping local economies gain competitiveness, Nippon Keidanren Chairman Hiromasa Yonekura said in a recent interview with Kyodo News.
Yonekura proposed that the government designate the quake-affected regions in northeastern Japan as ''special zones for reconstruction'' and exempt residents there from income and property taxes for three years.
To help revitalize local businesses and industries, it would also be important that ''as much rebuilding of infrastructure as possible is carried out by local contractors,'' he said.
It makes sense to establish new medical facilities for the elderly in the devastated areas where the population is aging, Yonekura said, proposing the use of sophisticated telecommunication technologies to provide medical services from remote locations.
Speedy reconstruction is critical, especially for companies in industries in which they account for a large share of the global market, such as auto parts manufactureres, said Yonekura, citing the bitter experience after the major earthquake in Kobe and its vicinity in 1995.
Kobe lost its role as a key port in Asia to Busan, South Korea, as it struggled to reopen its port facilities in the aftermath of the temblor that killed more than 6,000 people.
Despite a call by the prefectural government in 1995 for a special zone, it did not materialize due to the central government's reluctance.
But the government of Prime Minister Naoto Kan is eyeing designating the quake-hit areas as special zones. These would have more deregulation and tax breaks than regular economic zones aimed at revitalizing local economies, government sources said recently.
As for rebuilding the ravaged fisheries sector, ''voices of local residents should be weighed significantly'' as their views are divided on whether their homes need to be relocated to elevated ground, he added.
Yonekura stressed the need to keep seeking Japan's participation in the regional free economic zone known as the Trans-Pacific Partnership to open up its markets and strengthen the country's economic competitiveness.
Reconstruction and the free trade agreement can coexist, said Yonekura. ''The special zones for reconstruction, if realized, can have large-scale, competitive agricultural businesses by inviting in farm corporations,'' he noted.
Likewise, the government should carry on with the discussions aimed at creating a blueprint for social security and tax system reforms by June, he said.
Kan's administration needs to review its campaign promises to make sure that the government has enough funding for reconstruction works, he said, adding that a temporary hike in the income tax is an option worth considering.
''Issuance of (additional) government bonds is the last resort'' in quake reconstruction financing, Yonekura said.
Japan should remove all regulations in the regions devastated by the March 11 earthquake and tsunami to rebuild stricken towns into safer places to live, the head of Japan's largest business lobby said.
Reconstruction in such a fully deregulated environment ''can attract creative ideas and know-how from the private sector'' while helping local economies gain competitiveness, Nippon Keidanren Chairman Hiromasa Yonekura said in a recent interview with Kyodo News.
Yonekura proposed that the government designate the quake-affected regions in northeastern Japan as ''special zones for reconstruction'' and exempt residents there from income and property taxes for three years.
To help revitalize local businesses and industries, it would also be important that ''as much rebuilding of infrastructure as possible is carried out by local contractors,'' he said.
It makes sense to establish new medical facilities for the elderly in the devastated areas where the population is aging, Yonekura said, proposing the use of sophisticated telecommunication technologies to provide medical services from remote locations.
Speedy reconstruction is critical, especially for companies in industries in which they account for a large share of the global market, such as auto parts manufactureres, said Yonekura, citing the bitter experience after the major earthquake in Kobe and its vicinity in 1995.
Kobe lost its role as a key port in Asia to Busan, South Korea, as it struggled to reopen its port facilities in the aftermath of the temblor that killed more than 6,000 people.
Despite a call by the prefectural government in 1995 for a special zone, it did not materialize due to the central government's reluctance.
But the government of Prime Minister Naoto Kan is eyeing designating the quake-hit areas as special zones. These would have more deregulation and tax breaks than regular economic zones aimed at revitalizing local economies, government sources said recently.
As for rebuilding the ravaged fisheries sector, ''voices of local residents should be weighed significantly'' as their views are divided on whether their homes need to be relocated to elevated ground, he added.
Yonekura stressed the need to keep seeking Japan's participation in the regional free economic zone known as the Trans-Pacific Partnership to open up its markets and strengthen the country's economic competitiveness.
Reconstruction and the free trade agreement can coexist, said Yonekura. ''The special zones for reconstruction, if realized, can have large-scale, competitive agricultural businesses by inviting in farm corporations,'' he noted.
Likewise, the government should carry on with the discussions aimed at creating a blueprint for social security and tax system reforms by June, he said.
Kan's administration needs to review its campaign promises to make sure that the government has enough funding for reconstruction works, he said, adding that a temporary hike in the income tax is an option worth considering.
''Issuance of (additional) government bonds is the last resort'' in quake reconstruction financing, Yonekura said.
