My Opinion This Week| January , 2008


My opinion of this week(559):

Question about CO2 standard

In the editorial of January 2, 2008, Nikkei Newspaper suggested that
reduction of CO2 (Carbon dioxide) has now become a big business chance 
while it was supposed to be a big burden for Japan in the past. It is
because Japan has many excellent technologies to reduce CO2.

Reduction of CO2 has been considered to be a big minus factor for economic
development. But there occurs some dramatic change about it. Reduction 
obligation of CO2 which was imposed on developed countries can be allowed
by buying obligation volume set for some other countries that can attain
their obligation. As a result, CO2 has become a kind of stocks which are
traded in stock market. 

As a matter of fact, CO2 trade markets have been born and developed in 
several places in a world. Since this CO2 trade market is now getting 
bigger and bigger, some economist referred it as CO2 standard. Japanese
trading firms are buying reduction duties from several countries that 
can attain their duties and sell these right to business firms that can
not attain their duties for the time being. 

Total reduction target of CO2 will be attained rather easily in this way
in such market system as referred to as CO2 standard. 

I knew such story before, of course, but have had some doubt about total 
mechanism to attain the final goal to reduce CO2  through such gas trading
system.
 
My doubt about such CO2 trading system was confirmed when I read a  news
article by Nikkei Newspaper on January 3, followed by the editorial of 
the same paper a day before. 

The article was about the latest reports by Japanese government on CO2 
reduction in Japan in recent years. According to the report, Japan is
not fulfilling the major CO2 reduction duties set by Kyoto agreement 
in 1997.

The rate of reduction per GDP is lower than any other developed countries 
including US. 

What's the matter with it? Japan is a country that has been considered to 
have an advanced technologies concerning CO2 gas reduction. Why can Japan
not attain their duty? Nikkei Newspaper reported only about the fact about
it and did not make any comments or add any articles about the implication
of that government report.

From my point of view, CO2 reduction duty set for Japan can only be attained 
both by supply and consumption side of economy. Nikkei article mentioned only
about supply side which are concerned with production and distribution of
economy. Japan surely has an advanced technologies to attain CO2 gas 
reduction on this side. But Japan seems to be very weak to attain the target
in consumption side of economy. 

It seems that Japanese consumers have only very weak mind about this very 
important international duties on CO2 reduction compared with Europeans and
people of other developed countries. I just mention one example about it.

My wife and I went out for shopping to a big shopping center which is one 
of the biggest shopping mall in this country. There were huge and abundant
foods and other goods available to enjoy traditional new year days. People
bought a lot and same with us. But people and our family will destroy a lot
of foods after new year days. One tenth or may be more will be destroyed 
unused. It is said about 30% of food and raw materials would be destroyed 
in this country unused at restraints and other food supply business. 

It is a big loss of energy and a big source of CO2 in other word. How can
this country can attain CO2 duties without touching area of such big waist.
If the country could  save ten or twenty percent of such waste, Japan could
easily attain CO2 gas reduction goal. 

This is only one example. There are a lot more waste to be saved in our daily
life and I believe that Japan will not be able to attain the duty without 
changing the life style of people at present.

It is now the time that the government should mention this big warning to
the people. Neither of ruling fronts and opposition fronts have ever issued
any messages concerning this very important matter. That' wrong. This should
be included for sure in their manifest in coming election campaign .

2008/1/5
Tadashi HAYASE

My opinion of this week(560):

Autocratic action by ruling fronts

MSDF refueling bill has finally been passed by getting two third of 
affirmative votes at the Lower House on Friday after noon. It was voted 
first at the Lower House but was rejected at the Upper House. The bill has
been sent back again at the Lower House and gained two third of affirmative
votes by ruling fronts the process of which is stipulated in the article
59 of constitution.

The ruling fronts said there is no problem on such process for it is 
based on the rule of constitution. However, it is only very ritual argument
itself. The will of the Upper House which represent another will of 
people is completely neglected as a matter of fact.

The article 59 of constitution exists to handle only very exceptional case
and should be applied only very exceptionally. The article require two
conditions to be applied according to my observation.

The first condition is that the theme of law in question is very important 
and urgent in nature by itself. Is MSDF refueling bill so important for 
the country now? Yes, ruling fronts thought so. But opposition fronts did not
think so. The question is will of people. According to the recent research
of popular vote, a great number of people, mostly 40%, thought the bill
is not so important for the interest of this country. 

The second condition to take such exceptional action is to check what the
most recent will of people is. Kunio Hatoyama, Secretary General of DPJ
said that the Upper House , the election of which was made in July last year 
represents the most recent will of people. 

Bunmei Ibuki, Secretary General of LDP said the Lower House represent another
will of people and and took such two third vote action at the Lower House 
based on the article of constitution. But such overwhelming seats at the 
Lower House were gained in the election made in September 2005 almost three
years ago, There is a big question when it comes whether or not the present
Lower House represent the recent will of people.

What's more, in many of research of popular votes made by several mass media
approval rate against Fukuda Cabinet is only 30% or so. It is obvious that 
their policies including MSDF oil refueling bill are not supported. Negative
votes are sometimes larger than affirmative votes in the most recent research
by mass media.

Fukuda ruling fronts made this autocratic decision even under this 
circumstances. Prime Minister Fukuda expressed that he has no idea to dissolve
the Lower House for the time being. Such tactics should never be allowed from
any points of views. 

Opposition fronts will continue to work for early election for the Lower House
but ruling fronts will just try to put off the election as far as possible. 
It is no good for the welfare of the nation. 

The only way to materialize the early election is to present a  strong will of 
people by showing further lower approval rate such as 20% against Fukuda 
Cabinet.

2008/1/12
Tadashi HAYASE
My opinion of this week(561):

DPJ (Democratic Party of Japan)should submit counterproposal budget plan

169th ordinary diet session started Friday. There will be a number of 
discussion on national budget plan for coming new fiscal year. The biggest
issue is whether or not the temporary tax rate for gasoline is to be 
abolished so that price of gasoline will be down by 25 yen. DPJ is trying
to abolish this temporary tax to realize this gasoline price cut.

Ruling parties are against this saying that there will be serious financial
effects on local prefectures for the tax is one of a main source of their tax 
revenues. 

Government budget plan and the maintenance of this temporary tax plan may be
rejected at House of Councils by majority vote of opposition fronts. But 
ruling fronts will pass the bill again by using two third of affirmative
votes at House of Representative as just happened at the last diet session on
new oil supply bill. DPJ would submit a censure motion against Fukuda Cabinet
at this time if this happens at House of Representatives. It is said that 
Prime Minister Fukuda will probably  dissolve the House of Representative if 
this censure motion is passed at House of Councilors at this time. It all 
depends on public opinion about this temporary tax issue, though. 

DPJ seems to believe that people strongly support the cut of gasoline price
by abolishing the temporary tax and they will be able to let Fukuda dissolve
House of Representative at the end of March when the temporary tax rate bill
expires. But it may be or may not. It is expected that some strong criticism
will come  from ruling parties when argument on this issue starts at the diet.
There will be some large counter attack from ruling parties which may change 
climate of public opinion.

"Gasoline is not only one issue." This is the title of editorial of Asahi 
Newspaper on Friday. The editorial warned DPJ by saying price cut of
gasoline is not the only thing that DPJ would bring up at this diet session.
The editorial suggested DPJ to show their counterproposal against budget plans
submitted by Fukuda Cabinet on any points which they do not agree with. 

I completely agree with this editorial. As a matter of fact, I wrote the same
kind of idea on my Yahoo BLOG on Thursday by referring DPJ's gasoline price 
cut tactics. 

My point in BLOG article is that cut of gasoline price is only a short time 
solution and short time tactics to draw interest of people. DPJ should show 
more long range total economic and financial plan to improve life of people.
More concretely, they should present practical counterproposal budget plan 
to replace budget plan submitted by Fukuda Cabinet. 

They were too late to submit counterproposal against new oil supply bill at
the last diet session. They should submit overall and full-scale budget plans
which should be explained to people in detail in along with budget plans 
submitted by Fukuda Cabinet at this diet session as soon as possible. 

The plan should show the long range national goal to revitalize national
economy which is completely stagnant at the moment. The plan must also show
some concrete measures to improve the life of people under such serious 
economic and financial difficulties, social securities and environmental 
problems.

It is a very difficult work but it must be done by DPJ now for Fukuda Cabinet
and ruling parties do not seem to have such capacity from any point of views.

DPJ could win the power only when they could answer to those very difficult
tasks by coming general election sooner or later.

2008/1/19
Tadashi HAYASE
My opinion of this week(562):

Misappropriation of special road construction fund

One of the biggest issue at the current ordinary diet session is whether
temporary gasoline tax to create road construction fund is to be abolished
or not by the end of March. DPJ (Democratic Party of Japan) and opposition 
bloc insist to abolish the temporary tax so that price of gasoline will 
be down by 250 yen which is a big benefit for the life of people. 

Majority of people supported the abolition of temporary tax rate for gasoline
but government and ruling parties are strongly against the idea of opposition
parties saying local government will face to some serious financial 
difficulties if the special tax rate is abolished. A number of governors and 
assembly men of local assembly started a big campaign supporting the plan
to continue the temporary tax to create special road fund. They insist that
they cannot construct any new roads or make any additional road construction
projects which are now underway. The loss of such special road construction
fund  will provide some serious shortage of revenue in their finance.

DPJ seems to face to a serious difficulties under such circumstance. Several
lawmakers of DPJ at House of Councils openly expressed their opposition 
against the Party's move to abolish the temporary tax rate. Some even 
participated in the assembly of a road construction campaign meeting 
sponsored by Liberal Democratic Party. DPJ seems to afraid the situation 
that general public who supported the idea to abolish the temporary tax at
first  may change their mind by seeing this big campaign from ruling bloc 
and local prefectures. 

Facing to this circumstance, DPJ started to change their original tactics 
which stress the importance of price cut of gasoline price. They now start 
to say that the primary importance to abolish temporary tax for gasoline is 
to abandon to make such special fund for road construction which has been 
controlled and managed by Ministry of Land, Infrastructure and Transport.
The main objective to abolish temporary tax is to change such centralized
administrative framework. DPJ insist the necessity of decentralized framework
so that local prefecture governments should be more independent to conduct 
many of administrative services including road construction. By transferring
more authority to local government, road construction may be done more 
economically and efficiently and abuse of such special road fund by Ministry
of Land, Infrastructure and Transport will be avoided in the future. It is 
true that a number of unnecessary construction projects have been conducted 
at several places of country in the past. There were  a number of corrupt 
practices involved and connected with such big construction money fund not 
only in this ministry but also in many other ministries as well. 

We have just heard the news which proves vested-interest structure of 
centralized powers. Some news paper reported that Ministry of Land used
this special road fund money to construct apartment houses for their 
employees. They also used the money to buy some sports goods for the
welfare for employees. The news say many more of such abuse of fund seem 
to exist in the Ministry. DPJ will bring up such cases at diet discussion
criticizing use of special fund money for some other purpose that are 
supposed to be used only for road construction.

Tetuzo Fuyushba, Minister of Land, said that is not against any laws.
They have used the fund for the employees who engaged in many of projects
inside of the Ministry including road construction. DPJ pointed out the
fact that the same kind of abuse of such special fund may exists in 
many other ministries including some serious cases as happened at Social
Insurance Office several months ago.

The case of such misappropriation of special road construction fund is
just a part of reason why such special fund and temporary tax to create
the fund should be abolished now. There exist several more reason why
the temporary tax rate should be abolished now. 

I think the assertion of DPJ to change the total political structure 
between central government and local governments is exactly right. The 
argument is not only the issue of price of gasoline but the desirable 
structure of central government and local government in this counrty.

People are requested to judge the validity of such argument now underway
at the diet.

2008/1/26
Tadashi HAYASE
English Home Page
Japanese Home Page