Gov't panel of experts discusses ways to overcome economic crisis+

TOKYO, March 16 Kyodo - Prime Minister Taro Aso on Monday held the first meeting of an expert panel to
explore fresh ideas on bolstering the flagging economy, aiming to reflect their
opinions in additional economic measures currently under discussion by the
ruling parties.

The 83 experts will divide into groups and take part in 10 rounds of intensive
discussions through Saturday on themes such as the environment, social security
and employment.
Monday's meeting at the prime minister's office was attended by Aso, Chief
Cabinet Secretary Takeo Kawamura, Finance Minister Kaoru Yosano, and Economy,
Trade and Industry Minister Toshihiro Nikai, as well as eight experts including
Richard Koo, chief economist of Nomura Research Institute Ltd.
''The world is in a deflationary recession that is exerting an influence on the
real economy,'' Aso said at the start of the 90-minute meeting. ''We would like
to listen to the opinions of experts from various fields not just those of
politicians and bureaucrats and to reflect them in our policies.''
During the meeting, Iwao Nakatani, director of Mitsubishi UFJ Research and
Consulting Co., proposed raising the 5 percent consumption tax to as high as 20
percent, redistributing some of the revenues to taxpayers and using part of
them to enhance the social safety net, a plan that he claims would help to
rectify the widening disparities between rich and poor.
Many participants, including Koo, also highlighted the urgent need to expand
domestic demand and employment opportunities and to make Japan less dependent
on exports.
Aso asked participants how the government could help to stimulate consumption
among senior citizens who are hesitant to use their savings.
Ryutaro Kono, chief economist at BNP Paribas Securities (Japan) Ltd., responded
that elderly people are fearful of spending their savings and living without an
adequate social security system, calling on the government to establish such a
system.
The series of meetings began after Aso told his ruling Liberal Democratic Party
and its junior coalition partner, the New Komeito party, last week to compile
fresh economic steps to address an unprecedented economic slump and improve
worsening employment conditions.
Immediately after the additional measures are put into shape, the government is
expected to compile a supplementary budget for fiscal 2009 starting April 1 to
pay for the measures and to submit the budget to the Diet during the ongoing
session through June 3.
Political pundits said that with the submission, Aso, whose popularity has
slumped to critically low levels, could delay the dissolution of the House of
Representatives for an election until the envisaged extra budget clears
parliament or could move toward a dissolution and seek a popular mandate for
the extra budget.
Japan has already worked out a set of fiscal stimulus steps worth a total of 75
trillion yen, involving actual fiscal spending of 12 trillion yen.
The panel's remaining meetings will be held Tuesday, Wednesday, Friday and
Saturday.
==Kyodo