December 27, 2012

Abe administration to overhaul nuclear, monetary policies

http://ajw.asahi.com/article/behind_news/politics/AJ201212270051

THE ASAHI SHIMBUN

Prime Minister Shinzo Abe will drastically shift the direction Japan takes in monetary and fiscal affairs, and will likely overturn a pledge by the outgoing administration to pull the plug on nuclear power.

In addition, Abe is expected to strengthen Japan's alliance with the United States and try to repair ties with China.

The government of the Democratic Party of Japan declared it would shut down all nuclear reactors by the 2030s. Abe condemned the policy as "irresponsible."

There is now a strong possibility of Japan retaining nuclear power, and Abe has additionally indicated a readiness to allow nuclear reactors halted last year to fire up again. The widespread shutdown was one response to the accident at the Fukushima No. 1 nuclear power plant following last year's Great East Japan Earthquake and tsunami.

"Once the Nuclear Regulation Authority creates stricter rules, we will decide over a period of three years whether operations can resume," Abe said at a news conference late on Dec. 26, the day he formally established his Cabinet.

He added, "We will also have to consider how we are to meet demand for electricity in the short term. There is the danger of a further hollowing out of the domestic manufacturing sector."

The Nuclear Regulation Authority is not expected to compile new safety standards until after July 2013, which means any decision on resuming operations could likely only be made after the Upper House election in the summer.

During negotiations with coalition partner New Komeito, the LDP overruled New Komeito's demand that Japan go nuclear-free. And the wording in the coalition agreement was toned down to state the aim of reducing "dependence on nuclear energy as much as possible."

This lack of a specific target could allow Japan to maintain its dependence on nuclear energy indefinitely.

But a more symbolic issue concerns whether the new government will approve the construction of new reactors.

During his first news conference Dec. 27, incoming economy minister Toshimitsu Motegi said it would take "a major political decision" on whether or not to allow construction of nine reactors that currently exist only at the planning stage.

"We will not immediately be declaring 'yes or no,' but we will collect experts' opinions in order to make a major political decision in the future," he told reporters.

The DPJ government decided to withhold permission for construction of the nine units. Among them is the Kaminoseki plant in Yamaguchi Prefecture planned by Chugoku Electric Power Co.

However, Abe indicated at a Dec. 21 news conference that he would leave the question of new construction undecided for now.

Meanwhile, personnel appointments point to a greater say in policy by senior former civil servants who in the past walked in step with the LDP in promoting nuclear energy.

One of Abe's new aides is Takaya Imai, a former deputy director-general of the Agency for Natural Resources and Energy. Imai served as an administrative aide during Abe's first stint as prime minister.

Named as an administrative aide this time is Tadao Yanase, deputy director-general of the Economic and Industrial Policy Bureau at the Ministry of Economy, Trade and Industry.

Both Imai and Yanase were involved in nuclear policy when they worked at METI.

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