ID :
181809
Thu, 05/12/2011 - 17:45
Auther :
Shortlink :
https://oananews.org//node/181809
The shortlink copeid
Gov't postpones decision on TEPCO compensation scheme
TOKYO (Kyodo) - The government postponed on Thursday a decision on a plan to financially support Tokyo Electric Power Co. in its massive compensation burden arising from the nuclear crisis at its Fukushima plant, as some ruling party lawmakers disrupted the process by arguing that the state's responsibility in the payments should be further clarified.
But later in the day, the Democratic Party of Japan task force discussing the matter gave the green light to the government plan on the compensation scheme, which includes creation of a new body to facilitate payments, paving the way for the government to reach a conclusion on the issue as early as Friday.
The government had been expected to reach a decision during a meeting attended by Prime Minister Naoto Kan and other Cabinet members on Thursday afternoon. But Kan said in the final part of the meeting, which was made open to the media, that he would like to wait for discussions to be held Friday among ministers.
Kan also told the meeting that the government will urge the utility to provisionally pay damages swiftly to farmers and fishermen who have suffered losses because of restrictions on the shipment of their products amid the country's worst nuclear crisis in which a huge amount of radioactive substances were released into the environment.
During the DPJ meeting to discuss the impact of the crisis, held before the ministerial gathering, some lawmakers insisted that the disaster should be applied as a case in which Tokyo Electric should be exempted from its liability under a law on the compensation for nuclear damage, according to participants.
The lawmakers said that, by doing so, the government's responsibility over the compensation would become clearer, they said.
Industry minister Banri Kaieda, who is dealing with economic damage caused by the crisis, said during a press conference that ministers have shared ''a certain direction'' and attributed the delay of the decision to what he calls ''various discussions'' among the members of the DPJ task force.
But the task force held another session later in the day and decided to endorse the government plan.
Earlier in the day, Chief Cabinet Secretary Yukio Edano said the compensation scheme is intended to make Tokyo Electric shoulder the burden as much as possible through its own efforts and to avoid costs being passed on to consumers through electricity bills.
On Wednesday, Tokyo Electric, known as TEPCO, decided to accept all the conditions the government presented to the company after it asked for state support due to fears of a capital shortage that may affect the swift payment of compensation, which may total trillions of yen.
Under the conditions, TEPCO will not set an upper limit on compensation payments in advance, will make maximum cost-cutting efforts and will accept an investigation into its management by a third-party panel set up by the government.
According to a draft of the government support plan, the envisioned institution would play a role in injecting public money into TEPCO in the event it experiences a capital shortfall, and TEPCO and eight other electricity firms that own nuclear power plants would hold a stake in the body.
The government will issue and allocate to the institution a type of bond that carries no interest and can be cashed when necessary so it can secure funding to support TEPCO.
TEPCO would freeze dividend payments on its common shares, while continuing to repay the money covered by the institution within a level that would not affect its stable supply of electricity.
The company is projected to finish the repayments in 10 to 13 years, after which it is to resume operating as an ordinary private company with no state involvement.
The new body is also expected to function as an insurance entity to prepare for possible future nuclear accidents. But concerns linger that the scheme would lead utilities to raise electricity bills to make contributions to the body.
Crippled by the March 11 earthquake and tsunami that devastated northeastern Japan, the Fukushima Daiichi nuclear power plant has leaked massive amounts of radioactive substances, forcing residents around it to evacuate from their homes and damaging the agriculture, livestock and fishery industries in the region.
But later in the day, the Democratic Party of Japan task force discussing the matter gave the green light to the government plan on the compensation scheme, which includes creation of a new body to facilitate payments, paving the way for the government to reach a conclusion on the issue as early as Friday.
The government had been expected to reach a decision during a meeting attended by Prime Minister Naoto Kan and other Cabinet members on Thursday afternoon. But Kan said in the final part of the meeting, which was made open to the media, that he would like to wait for discussions to be held Friday among ministers.
Kan also told the meeting that the government will urge the utility to provisionally pay damages swiftly to farmers and fishermen who have suffered losses because of restrictions on the shipment of their products amid the country's worst nuclear crisis in which a huge amount of radioactive substances were released into the environment.
During the DPJ meeting to discuss the impact of the crisis, held before the ministerial gathering, some lawmakers insisted that the disaster should be applied as a case in which Tokyo Electric should be exempted from its liability under a law on the compensation for nuclear damage, according to participants.
The lawmakers said that, by doing so, the government's responsibility over the compensation would become clearer, they said.
Industry minister Banri Kaieda, who is dealing with economic damage caused by the crisis, said during a press conference that ministers have shared ''a certain direction'' and attributed the delay of the decision to what he calls ''various discussions'' among the members of the DPJ task force.
But the task force held another session later in the day and decided to endorse the government plan.
Earlier in the day, Chief Cabinet Secretary Yukio Edano said the compensation scheme is intended to make Tokyo Electric shoulder the burden as much as possible through its own efforts and to avoid costs being passed on to consumers through electricity bills.
On Wednesday, Tokyo Electric, known as TEPCO, decided to accept all the conditions the government presented to the company after it asked for state support due to fears of a capital shortage that may affect the swift payment of compensation, which may total trillions of yen.
Under the conditions, TEPCO will not set an upper limit on compensation payments in advance, will make maximum cost-cutting efforts and will accept an investigation into its management by a third-party panel set up by the government.
According to a draft of the government support plan, the envisioned institution would play a role in injecting public money into TEPCO in the event it experiences a capital shortfall, and TEPCO and eight other electricity firms that own nuclear power plants would hold a stake in the body.
The government will issue and allocate to the institution a type of bond that carries no interest and can be cashed when necessary so it can secure funding to support TEPCO.
TEPCO would freeze dividend payments on its common shares, while continuing to repay the money covered by the institution within a level that would not affect its stable supply of electricity.
The company is projected to finish the repayments in 10 to 13 years, after which it is to resume operating as an ordinary private company with no state involvement.
The new body is also expected to function as an insurance entity to prepare for possible future nuclear accidents. But concerns linger that the scheme would lead utilities to raise electricity bills to make contributions to the body.
Crippled by the March 11 earthquake and tsunami that devastated northeastern Japan, the Fukushima Daiichi nuclear power plant has leaked massive amounts of radioactive substances, forcing residents around it to evacuate from their homes and damaging the agriculture, livestock and fishery industries in the region.
