ID :
175702
Fri, 04/15/2011 - 19:26
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TEPCO to pay 1 mil. yen per household in provisional compensation

TOKYO, April 15 Kyodo - Tokyo Electric Power Co. said Friday that it will pay up to 1 million yen to each of around 50,000 households within 30 kilometers of the crisis-hit Fukushima Daiichi nuclear power plant in line with a government request that the utility pay provisional compensation to residents affected by the nation's worst nuclear crisis.
A government-led panel of experts on the same day started work to set compensation guidelines for the disaster, a challenging task as an unprecedented amount of damages is expected over the accident that has impacted areas ranging from farm and fisheries products to tap water, company operations and transportation.
In making the announcement about the provisional payments, Masataka Shimizu, the president of the plant operator known as TEPCO, said that he cannot tell how many compensation claims the operator of the radiation-leaking plant would eventually face in total, but added that the company would not hold back on streamlining to finance the payments, possibly through downsizing its workforce and overseas operations.
The latest development came after a government task force studying how to compensate people affected by the nuclear disaster called on the utility earlier in the day to swiftly provide short-term living expenses to those who have been ordered to evacuate or stay indoors.
Economy, Trade and Industry Minister Banri Kaieda, who heads the task force, said that TEPCO is expected to start disbursing the provisional compensation as early as this month.
Kaieda called the latest move the ''first stage'' of compensation measures especially aimed at supporting those lacking living expenses because they had to evacuate ''with only the barest necessities.''
While the payments of 1 million yen will cover households with more than one member, single-person households will receive 750,000 yen each, the minister said.
People outside the 30 km-radius would also be eligible for the compensation as long as they reside in a zone designated for evacuation due to possible health risks from remaining there for a long period of time.
But provisional compensation will not be paid for financial losses caused by the government's restrictions on shipments of agricultural products and damaging rumors, leaving room for discussion on compensation issues.
Shimizu told a press conference at the company's headquarters that possible payments to farmers and fishermen would be made in line with the compensation guidelines to be compiled by the 10-member panel of experts under the science and technology ministry.
''I understand that we are facing damages claims from various people, including those related to the farm and fisheries industry...and our basic policy is to offer fair compensation in line with the guidelines,'' Shimizu said.
But it is uncertain how swiftly those affected will be able to receive official compensation payments as it is expected to take some time before the panel compiles the guidelines.
Yoshihisa Nomi, a Gakushuin University professor who heads the panel, said its members are aiming to decide on the outline of the overall guidelines by around July.
The panel held its first meeting Friday at which the farm ministry reported that around 84,000 farmers have been affected by shipment restrictions on vegetables, raw milk and shiitake mushrooms imposed on Fukushima and four other prefectures due to radioactive contamination. The annual value of output amounts to 67.1 billion yen.
The guidelines will set out the extent and levels of compensation. Though nonbinding, the guidelines are expected to serve as a rough standard for compensation negotiations.
Its remains unclear how such massive amounts of compensation will be funded, with lingering concern that the public may end up bearing the burden, such as through increased tax or electricity bills.
Asked about the potential amount of compensation, Shimizu said, ''As we are currently working to resolve the situation (at the nuclear plant), I don't think we are at a stage to talk about our estimates at this point.''
''We will of course make every effort to raise funds (to finance the compensation payments), and we will also think about streamlining our overall management,'' he added.
TEPCO said it will set up a toll-free call center from April 28 for people who want to make inquiries about receiving compensation related to the nuclear disaster.
Reflecting the frustration among farmers living near the plant, the Fukushima prefectural central union of agricultural cooperatives on Friday demanded swift compensation from TEPCO, including provisional payments.
''Even if we become able to plant crops, we will not be freed of fears of radiation contamination and rumors until we harvest the crops and finish selling them,'' Tokuichi Shojo, head of the union, told Shimizu at TEPCO's headquarters.
Shimizu apologized, but Shojo later told reporters that he did not feel reassured that TEPCO would respond to his request sincerely.
More than one month has passed since the March 11 quake and ensuing tsunami triggered the nuclear crisis, but TEPCO is still struggling to bring the plant's crippled reactors, which have lost their key cooling functions, under control.

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