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2008/10/30
Indiscriminate Spending Will Not Improve Consumer Sentiment: DPJ Secretary General Hatoyama Speaks Following the Announcement of the PM's Additional Economic Stimulus Package
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On the evening of October 30, DPJ Secretary General Yukio Hatoyama held a press conference at party headquarters following the announcement of an additional economic stimulus package by Prime Minister Taro Aso.

Asked for his overall opinion on the additional measures, Hatoyama replied "[my view of these measures is] not favorable". He pointed out that consumer sentiment would not improve as a result of indiscriminate tax cuts and fixed amount tax rebates because of the government's announcement that they would raise consumption tax in 3 years time. He added that the public was very discerning and that the effect of the new measures was likely to be limited as was the case when the government had printed vouchers to stimulate the regional economy some years ago. He also strongly criticized the government for trying to muddle through by using the "buried treasures" instead of implementing policy-based economic measures, noting that the public has not been informed of exactly how the government plans to finance these measures. Hatoyama expressed his "disappointment", and raised his concerns that the planned measures would flop.

When asked about Prime Minister Taro Aso's statement that he would submit the second supplementary budget after seeing the response of the DPJ, Hatoyama noted that the DPJ could not co-operate with the government, as there had been absolutely no discussion on how it would be funded. Using the example of how a reduction in fees for expressways (freeways) is apparently going to be included in the government's new overall economic stimulus package, Hatoyama said that the interests of members with close ties to the road building industry and the interests of local governments are opposed resulting in ambiguous measures without a clear direction. As such he said the DPJ would make a judgment on the second supplementary budget when more solidly-grounded proposals were on the table.

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