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HOME  > Past issues  > 2011 April 6 - 12  > Business circles see disaster reconstruction as chance to introduce ‘Doshu’ system
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2011 April 6 - 12 [POLITICS]

Business circles see disaster reconstruction as chance to introduce ‘Doshu’ system

April 9, 2011
In an attempt to take advantage of the reconstruction work to be generated by the great disaster, Japan’s business circles and the Your Party are putting their weight behind the move to introduce a “doshu” (broader regional administrative blocs) system to further facilitate business activities.

The “doshu” system will change the present 47 prefecture system into several broader blocs. It will limit the responsibility of the central government to areas such as diplomacy, defense, and the macro economy. Other responsibilities in social services and employment will be shifted on to “doshu” regional government blocs.

The Japan Association of Corporate Executives (Keizai Doyukai) on April 9 announced its reconstruction plan calling for the “doshu” system to be established in the Tohoku region in advance of other regions.

Taking the nation’s disaster reconstruction work as part and parcel of its growth strategy, Keizai Doyukai is calling for a unified reform of tax and social service systems, with an increase in the consumption tax, and an immediate conclusion of the Trans-Pacific Partnership (TPP) free-trade pact. Holding Prime Minister Kan Naoto in check, who hinted at reviewing the corporate tax cut, Keizai Doyukai proposes introducing a reconstruction tax which will mainly be shouldered by the public.

The Japan Business Federation (Nippon Keidanren) on March 31 proposed that meetings of local government leaders with the “doshu” system on the agenda be held and that a national consensus be formed on how the burdens of reconstruction cost should be shared.

Keidanren President Yonekura Hiromasa called for a tax to compensate for damages caused by the disaster. He stated that compensation for the damage caused by the Fukushima No. 1 Nuclear Power Plant crisis should not be dealt with by the Tokyo Electric Power Co. (TEPCO) alone but should be shared by the state (Mainichi, April 8). Ex-Keidanren President Mitarai Fujio introduced the idea that a “doshu” system needs to be introduced to establish a “special reconstruction zone” in the Tohoku region so that corporations in the zone will be entitled to a preferential tax system (Nikkei, April 5).

This will mean that the cost of reconstruction will be imposed on the public and not on large corporations. It urges that the large sums of internal reserves amassed at these corporations not be used to fund reconstruction work, and to further reduce burdens imposed on large corporations.

The Your Party fully endorses and in fact mimics the call of the business circles.

The Your Party on March 26 published its own reconstruction plan. It states that a “doshu” system should be introduced in the Tohoku region as a pilot system, and that corporate taxes be cut substantially and competitiveness in agriculture be enhanced, just as the business circles call for in their reconstruction plan.
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