Ruling parties split on payout / Opinion divided on what criteria to apply to 12,000 yen stimulus cash
Written by changthai11 on Sunday, November 9th, 2008
Ruling parties split on payout / Opinion divided on what criteria to apply to 12,000 yen stimulus cash
The Yomiuri Shimbun
Details of the government’s plan to allocate cash payments as part of its economic stimulus package have been emerging since the ruling parties began internal negotiations over a proposal to give people 12,000 yen.
On Friday afternoon, Natsuo Yamaguchi, chairman of New Komeito’s Policy Research Council, met with Hiroyuki Sonoda, acting chairman of the Liberal Democratic Party’s Policy Research Council, to ask him to broaden the range of recipients.
During talks in the Diet Building, Yamaguchi asked Sonoda to include those of high school age in the payout.
Sonoda reportedly accepted the suggestion, saying this would be possible as long as the total amount paid out did not exceed 2 trillion yen.
The 2 trillion yen handout was initially proposed by New Komeito, and was one of the most eye-catching of the measures included in the economic stimulus package announced Oct. 30.
However, the specifics of the government’s policy, including age and income requirements, and details on how to distribute the payments, have changed a number of times.
New Komeito members were said to have been frustrated with the situation, with one reportedly saying: “The shine is starting to come off this attention-grabbing policy. We have to settle the issue as soon as possible.”
In previous negotiations, New Komeito insisted that 10,000 yen be added to the planned payout for those under 15 and those over 65 so that children and the elderly would get larger benefits.
However, a source in New Komeito said, “Some supporters criticized our party, asking why middle schoolers should be included but high schoolers should not.”
As a result, New Komeito prepared proposals based on its own estimates, taking into account the numbers involved and the inclusion of specific age groups.
Based on this, New Komeito suggested to the LDP the possibility of offering 12,000 yen per person, and adding 8,000 yen rather than 10,000 yen for those under 18 and those over 65.
The ruling parties are expected to begin the final round of internal negotiations based on the proposal starting this week, though a decision on criteria based on income has yet to be made.
“We are studying the payout plan and the range of recipients so that the total stays within 2 trillion yen, regardless of whether or not those on high incomes are excluded,” Yamaguchi said.
He suggested that income criteria would not be applied to the payouts, though he also reportedly believed that making it necessary to apply for the payment will in effect create a natural income barrier on numbers applying.
“Some high income earners likely won’t apply,” he said.
Members of the ruling parties are split over whether income limits should be set on recipients.
Akira Amari, state minister in charge of administrative reform, insisted an income level limit was necessary.
“It’s better that people with the ability to earn a good living are passed over,” he said at a press conference Friday.
But Seiko Noda, state minister for consumer affairs, opposed setting an income level limit, saying: “The prime minister initially said all households would be eligible. This is right.”
Many in both the ruling and opposition parties have criticized Prime Minister Taro Aso for the split in opinion, saying he has not exercised adequate leadership.
At a meeting Friday of the LDP’s General Council, former LDP Secretary General Koichi Kato expressed particular concern saying, “If the situation goes unchanged, his ability to govern will come into question.”
Meanwhile, Democratic Party of Japan President Ichiro Ozawa said at a press conference Friday: “The prime minister has talked about different things as if he were coming up with them off the top of his head. They look to me like efforts to prolong the life of his administration.”
Asked by reporters in the Prime Minister’s Office on Friday evening whether the Cabinet was divided, Aso said: “That’s not true. It’s all right for differing opinions to be voiced as long as things can be done quickly and fairly.” (Nov. 9, 2008)
