Showing posts with label gasoline levy. Show all posts
Showing posts with label gasoline levy. Show all posts

Tuesday, April 16, 2013

About That Revolution You Are Fearing

The insurgency began
And you missed it...
- REM, Begin the Begin (1986)
On April March 15, this summer's House of Councillors election became irrelevant. On that Friday, the House of Councillors approved, with coalitions shifting on every vote, the appointments of Kuroda Haruhiko as Governor of the Bank of Japan and Iwata Kikuo and Nakaso Hiroshi as deputy governors.

With these nods, the House of Councillors ceased to have a part to play in governing Japan. High appointments are the only matters requiring the approval of both Houses of the Diet. All other governance issues can pass into law via the supermajority the ruling Liberal Democratic Party/New Komeito coalition holds in the House of Representatives.

The only function the House of Councillors now serves is as a brake upon constitutional revision. The LDP and the Japan Restoration Association will be campaigning hard on the issue of revision in July. However, it is impossible for the two parties to win the necessary 2/3rds of the seats in the House of Councillors.

The existing state of legislative tyranny creates the conditions for some strange requests. Last week, Prime Minister Abe had a meeting with Osaka City mayor and JRA co-leader Hashimoto Toru at the Prime Minister’s Residence. In the course of the meeting, the prime minister asked Hashimoto for JRA support of the government’s budget, stating:

"If the JRA supports the budget bill, we will earn the public’s approval, even if the bill is rejected by the House of Councillors and has to be passed using the override."

(Link - J video)

Put into less convoluted terms, the prime minister's request reads, "We are going to pass the budget using our 2/3rds majority in the House of Representatives if the House of Councillors rejects it. Can you provide the political cover for our steamrolling of the legislation?"

What is the really weird part about Abe's gambit? Not that Abe is asking the Hashist to provide a fig leaf for the ruling coalition's naked use of power. No, what is weird is that under Article 60 of the Constitution, the passage of a budget does not require an override – the budget becomes law effective 30 days after the House of Representatives gives its approval, no matter what.

True, Abe could be talking about the full package of the budget and its enabling legislation, particularly the bond issuance bills to which Democratic Party of Japan prime ministers Kan Naoto and Noda Yoshihiko both had to sacrifice their premierships. Passing the enabling legislation will require the approval of both Houses, and barring the approval of the House of Councillors, the use of the 2/3rds override majority in the House of Representatives.

Of course, that Abe even asked Hashimoto for cover reveals an interesting lack of self-confidence on the part of the prime minister and his party. This could be because the use of the override is constitutionally suspect, the product of the LDP's and the New Komeito's margin of victory in the tainted December 2012 election.

However, reticence toward use of the override extends back before the courts made clear their disgust with the inequalities of the House of Representatives voting districts. Back in 2007-08, prime minister Fukuda Yasuo and the LDP embarrassed themselves repeatedly by failing to use the override majority to keep vital pieces of legislation from becoming defunct.

Some have argued a cultural distaste for the bald use of constitutional powers. Such a proclivity may indeed exists.

A self-interest explanation for earlier restraint would be that the smart elements of the LDP sensed that the party could not use the override without triggering questions about the legitimacy of House of Representatives elections. Had earlier LDP governments used supermajorities again and again to railroad controversial or blatantly self-serving legislation through the Diet, the courts might have stepped in earlier to rectify imbalances in the sizes of the districts -- something the LDP really wanted to avoid.

Later - Thanks to reader PW for alerting me to the error in the first line.

Wednesday, August 22, 2012

A Brief Rumination On Ozawa Ichiro, With A Long Detour Through A Condemnation Of The LDP

I have been accused for being unfairly negative toward Ozawa Ichiro, both here and in private communications.

I have always found these accusations rather peculiar. I have consistently argued that Ozawa was the victim of a baseless persecution in the public sphere.I have argued repeatedly that the charges filed against him and his aides were bogus; that his shady reputation was just that, a reputation, not a fact; that he was a bugbear of The Establishment and had suffered for it.

Often the accusations come from a misreading of my characterization of Ozawa's responsibility for a particular political situation. In my post of the other day, I seemed to be intimating that the Liberal Democratic Party learned from Ozawa its knee-jerk and unpatriotic automatic naysaying to any proposal of the ruling Democratic Party of Japan, its constant calling for new elections and its criticism of every act of the governments of Kan Naoto and Noda Yoshihiko.

If this were the takeaway from my assertion, the result would be a gross misrepresentation of history. Ozawa did repeatedly call for elections during his tenure as party leader of the DPJ. He also used his party's majority in the House of Councillors to stymie government initiatives, particularly the renewal of the dispatch of Maritime Self Defense Forces ships to the Indian Ocean as a part of Operation Enduring Freedom and the renewal of the temporary tax on gasoline.

These positions were based not on an unthinking saying of "no" to every government act or policy but on fundamental principles.

After the Koizumi years, the LDP was a spent force. Execrable notions -- such as Japan could be revived as an economic and political power through the reimposition of pre-1945 respect for authority and enforced patriotism -- were not laughed out of the room but the foundation of national policies. The party's last three pre-August presidents were either the sons or grandsons of prime ministers.

After Koizumi, the LDP had no business being in power.

As for the Indian Ocean dispatch and the gasoline tax, the first challenged the constitutional limits of MSDF actions. The dispatch may have been indispensible for the maintenance of the Japan-U.S. alliance -- but it should have been explained as such, not painted over with a cavalcade of nonsense. The gasoline tax had been imposed at the height of the 1973 Oil Crisis. It had been renewed without explanation or justification for over thirty years.

In all three instances, the crucial issue was government accountability. The DPJ was demanding it because the LDP was not providing it.

However, in the basic running of the government, the DPJ, despite being the opposition party, worked with the LDP, or at least did not impede the government's delivery of basic government services. In part, this cooperation was due to the DPJ's having only limited powers, the LDP and the New Komeito together having a supermajority in the House of Representatives which could override any action or inaction of the House of Councillors, where the DPJ had the upper hand. However, the DPJ also understood that at loyal opposition had to be loyal, not just an opposition.

Once and only once did the DPJ use its legal powers to oppose the government. This was on the selection of the successor to Fukui Toshihiko as governor of the Bank of Japan. The DPJ told the LDP from the outset it would not accept as candidate an alumnus of the Finance Ministry. Out of purest contempt, the LDP sent not just one, but two alumni of the Finance Ministry as its candidates. These candidates the House of Councillors rejected. Finally, out of exasperation, the LDP proposed the academic and incumbent governor Shirakawa Masaaki, who was quickly confirmed.

What the LDP learned from these episodes were the most childish of lessons: a centrist political party had had the temerity to oppose the LDP. If the LDP is ever were in the opposition, it will oppose everything that that centrist party would propose.

Which is why we are where we are where we are today. The number of bills the government can push through during a Diet session is risible. A DPJ prime minister, in order to secure the support of three major bills (the limit it seems the LDP is willing to accept), one of which is the bill on bond issuance necessary for the government to pay its bills, must offer to resign. It happened to Kan; it is happening to Noda.

In a sense, it would be to the country's benefit for the DPJ to lose its majority in the next election. The DPJ at least has some sense of how to behave as an opposition party with some semblance of a conscience.

Of course, the LDP is even more spent as a force than when it was when it was tossed from power in 2009. It has nothing to offer to anyone, even its traditional constituencies in protected industries, big business and the rural areas.

That we are in the predicament we are in is in no small part due to Ozawa Ichiro's personal failings. His sense of entitlement, his obsessive need to be in charge, his inability to nurture talent, his incapacity to accept others as equals all contributed to his betrayal of the revolution he worked so hard to bring about. Whatever the political scientists may say about inevitable things happening inevitably, personality and individual decisions matter. Had Ozawa, when Hatoyama Yukio offered him the position of secretary-general of the DPJ in the giddy days after the August 2009 wipe out of the LDP, turned Hatoyama down with a "It's time for someone else, someone with less political baggage, to secure the gains we have made," our political today discourse would be richer and more meaningful.


Later - For a report on what looks like another episode of Ozawa's spiteful pettiness getting the best of him, please read Okumura Jun's latest, "Assassin for Kikawada? Is Ozawa Crazy? But Will the DPJ Miss a Golden Opportunity? over at GlobalTalk 21.

Friday, May 02, 2008

You Can Check Out Any Time You Like

In the first panel of the cartoon Prime Minister Fukuda Yasuo, clad in tennis wear, is preparing to serve. From outside the panel come catcalls and taunts. "Go ahead, show us what you've got! C'mon, you aren't scaring anybody."

Fukuda rears back, tosses the ball in the air, and unleashes a terrific serve.

The ball come zinging back at him as if on fire. He only just ducks down in time.

The catcalls continue, "Oh, that was brilliant! Why don't you try it again?"

Fukuda again rears back, launching an even more powerful serve.

The ball comes sizzling back, clocking Fukuda in the forehead and knocking his glasses askew.

"Whooopeee! Come on, serve it for real this time! Hit it with all you've got!"

Readjusting his somewhat bent glasses, and wiping the sweat from his forehead, Fukuda rears back even further and unleashes a monstrous serve--that comes back like a bullet, knocking him to the ground.

It is then that the frame pulls back, revealing the whole tennis court. Ozawa Ichirō, Hatoyama Yukio and Kan Naoto are all on the other side of the net, their rackets down by their sides, shouting encouragement to the PM. Ozawa leads the jeers, yelling, "Oh, please, please; one more time. That was awesome...of course, whenever you're ready to stop serving against the back wall and instead hit a ball in our direction, that would be great too!"


* * *

One would think that after all the self-inflicted wounds and humiliations over the last few months, the PM and the ruling coalition would have learned a simple lesson: get the ball out of your side of the court. For every issue, the PM and the ruling coalition have found themselves incapable of getting the ball to drop in the Democratic Party of Japan's side, forcing the DPJ and its leaders to actually do something other than just stand around shouting imprecations.

Unbelievably, it is about to happen again. On May 12, the sixty day limit on the road construction bill will expire. It will become possible for the ruling coalition to pass the bill using its two thirds majority in the House of Representatives.

Unfortunately the road construction bill coming up for override is not the road construction bill the Fukuda government wants. The bill that is up for reapproval is a public relations nightmare, an execrable promise of a decade-long matsuri of pork.

"But you know," the DPJ is saying with a huge grin on its face, "You guys passed it once already. Two months ago you thought this was an absolutely fabulous, absolutely essential bill. And you voted for it. Surely you could not have changed your minds about this bill in just two months! That would be irresponsible and unserious--and you are the serious, responsible party! Everyone knows that. So override. Pass this monstrous bill. We dare you. We double dare you."

And the PM and the ruling coalition leadership are simply stunned. They launched a laughingstock of a bill--an absurdity--over to the opposition-led House of Councillors, daring them to leave it alone--only to see their own howling creation land right at their feet, untouched and unchanged, for them to either reject (and won't that look smart--voting for a bill only to reject it only two months later) or pass using the override provision, inviting the public to go ballistic with righteous indignation.

Leaving the PM and the leadership to wonder, "How is it possible the ball is back in our court, AGAIN?"

Funny things happen when you don't play with others, choosing instead to play with yourself.


Later - We may be looking at game, set and match.

Tobias Harris notes that a snap poll by The Asahi Shimbun finds the Fukuda Cabinet's support level at a mere 20%.

Now the Tokyo Shimbun has come out with a rival poll finding support for the Cabinet at 19.8%--which, the paper, bless its leftist little heart, is calling "a support level of only 19%".

Guess folks might be upset that gasoline station owners raised prices a nice round 30 yen per liter yesterday?

(No, no, it is not price gouging to raise fuel prices 30 yen per liter during Golden Week when the tax being revived is only 25 yen per liter. Perish the thought.)

Wednesday, April 30, 2008

Alls Hell That Starts In Disarray

Once again without a single non-Communist member of the opposition in the chamber, the LDP-New Komeitō ruling coalition has used its supermajority in the House of Representatives to vote for a revival of the temporary gasoline levy.

One cannot imagine that the scenes of gasoline distributorships shutting down mid-afternoon in response to the vote in the House of Representatives will play too well on the late night, non-NHK networks--nor that the new, higher prices tomorrow will be greeted with cheers from the public.

So where do we go from here?

Not to censure, at least not immediately.

Ozawa Ichirō has moved his marker regarding the possibility of the House of Councillors censuring the Prime Minister. Rather than censure the PM for using an Article 59 override to force a reapplication of the temporary gasoline levy, Ozawa will be "keeping an eye on the road construction bill" -- i.e., the 10 year, 59 trillion yen, truly grotesque testing of the public's patience that is the next bill up for the override treatment.

The PM has promised to put the revenues from the gasoline tax go into the general fund as of next year. Unfortunately, the PM's wish is not included in the current language of the road construction bill.

This would seem to create an interesting procedural mess.

Opening up the road construction bill and rewriting it in joint committee would be one solution. Unfortunately, convening an interparliamentary committee it is not possible without at least a sister bill having been passed by the House of Councillors.

That has not happened. It will not happen.

Alteration of the legislation already passed by the House of Representatives will be, in terms of the rules, the submission of a brand new bill.

However, unless the House of Representatives votes down its own 10 year, 59 trillion bill first, the House of Representatives will be on record--as far as I can tell--as having sent to the House of Councillors two mutually contradictory bills on a single subject.

Not exactly a place where anyone wants to be.

Submitting a bill reflecting the Prime Minister's plan to move revenues to the general fund--i.e., a brand new bill--will also start the 60 day override clock all over again.

Now a clock starting in the first week of May would set the Diet up for an override in early July...which is something the PM's people and the ruling coalition would probably want to avoid given that would put a loud battle about an incredibly important bill right smack dab in the middle of the Toyako Summit--the most historic, important and environmentally correct summit ever™!

As for what the DPJ's response to today's events will be, it looks like going forward with the threatened censure motion will be a tough call. It is not necessarily significant that the PM can ignore the censure motion--the point all the newspapers harp on. The core issue is that a censure motion could be perceived as a waste of time.

Not showing up for votes--boycotting the Diet--is perfectly acceptable political theater with a long and illustrious history. Not showing up challenges the ruling party to push forward legislation using the rules of the Diet and its majority.

A censure motion, however, will be under the operational control of the opposition. The Democratic Party House of Councillors Diet Measures Chairman will have to go to Speaker Eda Satsuki and the other opposition parties to instigate the assembling of a quorum of the House of Councillors for an act that has 1) no effect as law and 2) no basis in law.

The calendar of the House of Councillors is the DPJ's ball of string--to play with or not depending on the party's reading of the mood of a public pissed off at new taxes and automatic deductions.

The public may not be in the mood for meaningless gestures--expecially ones engaged in by those living off the public purse.

Tricky thing, the public mood, what?

Good Morning, Nagata-chō!

Well now, here we are--the big day, the day when we get to see whether Kōno Tarō will pull a lion's head out of a top hat, or whether he is all bluster and no votes.

(Seriously, if he had not gone to Georgetown, would anybody still be listening to him? Well, O.K., I will admit, the liver section donation thing was very impressive...)

On the other side of the aisle of treason, Sunday Mainichi says 15 Democratic Party of Japan lawmakers in the House of Councillors are poised to jump ship over the party's opposition to road construction and other fiscal goodies. No doubt Ōe Yasuhiro and Watanabe Hiroshi already have both feet out of the party -- I swear one of the newspapers told me that Ōe went so far as to voice support for the LDP candidate in Sunday's Yamaguchi by-election, mirroring Watanabe's support of the non-DPJ candidate in Niigata one election back.

However, I still do not see how they could leave the party when their seats are a regional bloc seats assigned according to a position on a party list.

Can one walk out with a proportional seat? Or leave with it under one's arm after being expelled from the party?

Wednesday, April 16, 2008

From the Archives - Regarding the Folding of the Gasoline Tax Revenues Into the General Fund

Saturday's Tokyo Shimbun had a hilarious cartoon regarding the fight over the gasoline tax bill.

Kan Naoto, Hatoyama Yukio and Ozawa Ichirō of the DPJ try to seize the torch from a discomfitted Prime Minister Fukuda as the teal-clad Chief Cabinet Secretary Machimura Nobutaka and LDP Secretary General Ibuki Bunmei rush in to protect the gasoline nozzle topped symbol. In the background, former Prime Minister Abe Shinzō lies prostrate, a gasoline nozzle by his side.
Courtesy: Tokyo Shimbun. April 12, 2008, morning edition.

Which provides an excellent excuse to dredge up a post from the archives:

Will You Compose a Requiem for the Postwar Era?

Ostensibly, the fight is about concrete and budgets.

In reality, it is a fight about the future.


Road funds debate
The Asahi Shimbun

In recent weeks, Prime Minister Shinzo Abe has been stressing his "unwavering" commitment to reform far more frequently than before. Now, Abe faces the first major test of his political will to push through his reformist agenda. Talks between Abe and his ruling Liberal Democratic Party over a proposal to funnel tax revenues currently earmarked for road construction into general-purpose funds have reached the final phase.

The focus of the debate is what to do with the 3 trillion yen or so in gasoline tax revenue, which accounts for 80 percent of overall state tax receipts set aside for road projects. Given the nation's fiscal crunch, there is undoubtedly a strong case for scrapping this system under which a sizable portion of the government's tax take is used exclusively for building new roads.

By incorporating the earmarked tax collections into the general revenue account, it should be possible to use the funds for any purpose, including road construction and repair projects.

But this policy change is not as easy as it sounds. Former Prime Minister Junichiro Koizumi promised to do the same thing when he swept into office in 2001. But this turned out to be a formidable political challenge because of strong opposition from LDP lawmakers with ties to road construction-related companies, as well as local governments, ministries and the auto and oil industries. In the end, Koizumi's attempt was thwarted.

Late last year, amid the political euphoria that followed the ruling party's overwhelming victory in the Lower House election over the single issue of postal services privatization, the LDP agreed with the government to make the road funds available for general use.

But the task of shaping a specific policy was left to the new administration. So it came as no surprise that Abe would reaffirm this agreement when he reiterated his pledge to push through the reform late last month.

He said at the time, "We must accomplish this reform on behalf of the people to ensure we never again build unnecessary roads." Abe needs to push forward with the policy without allowing the initiative to be watered down.

Will he stick with his plans to advance structural reform or will he steer the LDP back to its old self by making unseemly political compromises with special-interest politicians?
Everyone involved in this fight knows that this is a death match. Once the gasoline tax receipts are folded into the general account, they will never be pulled out and reserved for road building again.

The "road tribe" in the Diet and most of the district seat holders from rural areas also know that this is their Toba-Fushimi. This battle that will determine whether the postwar superstructure survives or is swept away.

Sadly, it a battle the rural districts must lose if Japan is to have any future at all.

Many good things will perish, among them the laudable rough equality in living circumstances found throughout the country. Many towns and villages will die.

However, if anything has been suppressing Japan's economic recovery and reemergence from stagnation over the past 15 years, it has been the vain attempt to maintain existing political boundaries and administrative arrangements. Faced with demographic and international competitive pressures, the country drifts as a handful of prefectures struggle to subsidize the entire archipelago.

Why, pray tell, does anyone live in Saga? Why build new (roads, bridges, tunnels, dams, jetties) there?

To be sure, the system that has evolved, the one the LDP "forces of resistance" are trying to protect, is a finely tuned system, a non-disruptive system.

Parasitism, successful parasitism, works hard to not kill the host...but it still breeds lethargy, ambivalence and immobility in the host organism.

One of the recurring conundrums for the economics writers is the neverending wait for the reemergence of robust Japanese personal consumption (not that they don't have their theories). Surely after so much government stimulus, the populace must start spending its bounty?

When there is no multiplier effect--when a new road or bridge does not increase economic activity in a rural community and indeed it makes a once pretty bit of scenery ugly--fiscal and monetary stimulus leads to nothing.

Stimulus becomes at best economically neutral, like gray wallpaper.

Most of the reaches of rural Japan, even the areas close to Tokyo, live as parasites--they rely on the southern Kantō plain, Aichi and Fukuoka to provide the surplus the rural areas live on. Residents in those urban districts pay for the bizarre privilege of keeping voters from moving to regions where economic growth is taking place.

This has got to stop.

But without visionary, revolutionary and self-confident leadership, it will not stop.

The original December 7, 2006 post can be found here.

Tuesday, April 08, 2008

The Only Game in Town

You must play with the hand that has been dealt you.

On April 29, a national holiday (the miserably named Shōwa Day--as if the reign of the Shōwa Emperor in and of itself was a cause for celebration) the sixty day time limit passes for the House of Councillors to take action on the bill renewing the gasoline tax. Okumura Jun has argued convincingly that the Prime Minister and the rest of the LDP grand pooh-bahs have enough carrots and sticks at their disposal to strong arm enough Representatives into reimposing the 24 yen per liter levy.

But to what end?

If the legislation reimposing the tax were facilitating the realization of the plan the Prime Minister outlined on March 27, then all the LDP members in the House of Representatives, even ones from the five prefectures whose governors refused to put themselves on the record as demanding a reinstatement of the gasoline tax, would fall into line.

Unfortunately, the Prime Minister's plan is not the plan that is on the table.

What is on the table, set up for passage using the override provision in May, is the obscene 10 year, 59 trillion yen plan, with all the tax revenues getting sucked into road construction.

Would a Representative from let us say Kanagawa Prefecture, represented in the Diet by both Koizumi Jun'ichirō and Kōno Tarō and with a governor who does not support the gas tax renewal, vote for the reimposition of a tax without knowing whether he or she is voting for fiscal support of the Prime Minister's "one year and out" plan or for the road tribe's multi-year road construction-hogfest?

Would you, in light of the possibility of a snap election sooner rather than later, choose to trust Prime Minister Fukuda Yasuo's assurances that "no, no, the Road Tribe's plan is not the operative plan, even though it is currently the only game in town. It is my plan that you are voting to support" -- given how well he has pushed forward reform in general since he became Prime Minister and how well he has kept his other vows so far?

Well would you?

Monday, April 07, 2008

The Fukuda Future - Into The Unknowable

Over at Global Talk 21, Okumura Jun posts a brilliant counterargument to my forecasts of doom for the gasoline levy and the road construction plan.

I think both our assessments are correct.

Okumura-san assumes that factions still behave like factions; that people learn from their mistakes; and that even the holders of LDP party posts can count to three.

I believe that the factions are fictions; that the present LDP leadership has learned nothing in eight months of living with an opposition in charge of the House of Councillors; and no one in the LDP can count to three, or six or any multiple of three thereof.

Both are a reasonable set of assumptions, fully supported by historical precedent and simple logic.

Holding one set or the other as true, however, predetermines one's predictions.
------------------------------------------------

When Fukuda Yasuo became Prime Minister in September 2007, most observers assumed that that the leaders of the ruling coalition could perform a pair of simple tasks:

1) They could count to 60

and

2) They understood the concept "three to six years"

The performance of the first task would give ruling coalition leaders the ability to look at a calendar, find a red letter date by which a certain bill would have to be passed, then count backward to the date by which the House of Representatives would absolutely, positively have to pass the bill. The sixty day span is the amount of time the House of Representatives must wait for action by the House of Councillors on a bill before the House of Representatives can pass the bill using the two-thirds majority override power outlined in Article 59 of the Constitution.

The performance of the second task would give ruling coalition leaders the ability to look a multi-year calendar and understand the immense span of days stretching out before them before they could hope to win enough seats in a House of Councillors election to return the Diet to its familiar rhythms -- a state of legislative tyranny so ingrained into the body politic that the press, without reflection or irony, refers to its restitution as seijōka (正常化) - "normalization". Given that the next opportunity to overthrow opposition control of the House of Councillors is not until either 2010 (a marginal opportunity due to the large number of seats the LDP will be defending) or 2013 (far more likely scenario, given that the DPJ will be defending its 2007 gains) even the most obtuse and/or militant member of the LDP hierarchy would understand that the coalition would have to find a way to share power with Ozawa Ichirō and the DPJ.

These two basic assumptions were indeed the cruxes of the argument for Fukuda Yasuo's election as the president of the LDP. Only the managerial, mild-mannered and colorless Fukuda could play the game of seemingly abnegating himself and the LDP before the DPJ, flattering Ozawa's mighty ego, and, at the same time, keep legislation moving on track toward passage using the override provision.

Everyone believed the above formed the backdrop of political theater as it was to be played out until September 2009, the final possible date of the next House of Representatives election.

Even Ozawa Ichirō believed it. He would have never entered into negotiations exploring the formation of a coalition government--or a legislative entente or whatever it was--if he knew aforehand that the LDP would

a) care so little about the country's political paralysis that they would never engage in good faith nemawashi (prior discussions toward consensus) on the content of bills, and

b) not use the override provision with efficiency and ruthlessness, when it had to.

Ozawa expected the ruling coalition to both care about appearances and still be able to execute most of its legislative program--whether the opposition-led House of Councillors objected or not.

It turns out that Ozawa--and just about everybody else--was wrong.

The ruling coalition, in what has been an almost gleeful hanging out of Fukuda to dry, has delivered ultimatum after ultimatum to the DPJ, trying to force the DPJ at every instance to go down on bended knee and offer its submission--which the DPJ and the rest of the opposition has pointedly refused to do. Compounding the error, the ruling coalition, after delivering these ultimatums, has been unable to deliver on its threats, either losing track of the time it needs to get legislative packages through the House of Representatives using the sixty day override or worse forgetting that in the case of appointments requiring Diet approval, there is no override provision.

------------------------------------------------

Which brings me back to the original propositions in this post.

Okumura Jun believes that the ruling coalition has learned its lesson, that it will be supportive of the PM's strengths in conciliation with the DPJ while retaining a monomaniacal focus on management of the legislative calendar--that it will be able from here on out to use both carrots and sticks to govern the country in an acceptable fashion.

I believe that the ruling coalition has not adapted because it cannot adapt--that the last eight months are not a series of fluke occurrences but symptoms of the ruling coalition's hopeless, structurally determined ineptitude.

Take your pick.

Monday, March 31, 2008

Oh Bully! The reprising sequel!

The Sankei Shimbun is reporting that Prime Minister Fukuda Yasuo will be offering a formal apology for the expiration of the gasoline levy this evening.

Like one needs to apologize for a tax cut primarily benefiting the rural areas and businesses...and during an economic slowdown, too.

In other news, the compromise legislation extending all the other otherwise expiring budget-related measures for another two months swept through the Diet today as though carried aloft on wings.

Diet Passes Stopgap Bill To Extend Tax Measures Until May
Kyodo

TOKYO --The Diet passed a stopgap bill Monday to extend until the end of May various special tax measures which would have expired the same day, in a bid to avoid confusion across wide areas of commerce including used car and land sales and financial transactions in the Tokyo offshore market...
I guess the Democratic Party of Japan is willing to be flexible and responsible on matters of national importance--it just considers beyond the pale unpopular and utterly corrupted (and utterly corrupting) programs that have long deserved to die.

So there.

Oh Bully!

On the day I predicted we would witness the death of Tanakaism, Prime Minister Fukuda Yasuo has called yet another unscheduled press conference.

I wonder what he will have to say.

On the Plus Side, the Shinginko Disaster Becomes A Lot Easier to Understand

Words of wisdom from Ishihara Shintarō, governor of the Tokyo Metropolitan District, regarding the loss of road construction financing should the temporary gasoline levy be repealed:

「財源がなくなっちゃうんだから、他の事業が止まる。ガソリンが安くなったから大いに走ろう車がどこを走るのか。行き止まりみたいな道ばかりでしょうがない。」

"Because the fiscal resources are going to disappear, other activities are going to grind to halt. As gasoline becomes cheap and people drive more, what are the cars going to drive on? The roads will all come to dead ends. It cannot be helped."
I do not even know where to begin.

Quote courtesy the Asahi Shimbun of March 31, 2008, morning edition, p. 2.

Later - "Anonymous" in comments has a suggestion...

Monday, March 17, 2008

One More For The Road

While the global financial system is going to hell*, I am still obsessing about the governments's gasoline levy bill in support of road construction, a piece of legislation which, according to today's Sankei Shimbun, the ruling coalition finally admits is unsalvageable.

Still, I cannot let a day go by without a dip into the bottomless cesspit of the offspring of the old Construction and National Land ministries.

The front page of Sunday's Mainichi Shimbun featured the results of an investigation into 50 corporations affiliated with the Ministry of National Land, Infrastructure, Transport and Tourism. The 50 corporations had 7288 employees and 1063 members of the board of directors, a pretty rich 7:1 employees-to-directors ratio.

However, looking more closely, the median was a lot richer. Indeed in 16 of the 50 corporations, the number of members of the board of directors outnumbered the number of employees. The most absurd skewing was found in the National Land Policy Research Council (Kokudo Seisaku Kenkyūkai), an organization boasting 16 directors and 1 employee. Other magnificent organizations included the Tour De Hokkaidō Association (Tsūru do Hokkaido Kyōkai) with 17 directors and 6 employees; the Road Development Promotion Center (Dōro Kaihatsu Shinkō Sentā) with 21 directors and 8 employees; and the Hokkaidō Auto Resort Network Association (oh, I give up) with 24 directors and 6 employees.

Did anyone say anything about amakudari positions? A check of the 16 directors of the National Land Policy Research Council found that 9 were retired bureaucrats. Ouch.

Here is the original article.

Of course we also have today's report that the DPJ is asking questions about the 2.3 billion yen paid out over the last five years though the MLITT's "special road equipment account book" (道路整備特別会計) for taxi tickets for ministry employees traveling to and from the Ministry's eight regional equipment centers.

As much as the revision of the Constitution, as much as a reinterpretation of the ban on participation in collective self-defense, the attempt to wrestle down the road construction beast is a struggle over the identity of Japan. If the road lobby can be killed or restrained, much of what has been "Japan" and the "Japanese way of doing things" will cease to exist. Certainties will crumble...and many things considered "difficult" will suddenly become "possible."

Every little of light shone upon the monster weakens it. Every pinprick is making it bleed a little more, slowing it down.

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* The void is filled by a depressed and angry Nihon Cassandra posting up a philippic from London.

Friday, February 29, 2008

Drawing The Short Straw

"Yes, I'm tired. No, I don't give a damn anymore. Well, maybe I do. Why do you ask?"

Prime Minister Fukuda Yasuo struggles to stay awake
while waiting for a House of Representatives
Budget Committee session to resume
February 28, 2008

Image courtesy: Tokyo Shimbun

Later - The House of Representatives will be passing the budget and ancillary legislation today, one day later than House of Representatives Parliamentary Affairs Chairman Ōshima Tadamori's goal of February 28.

Since there is no agreement about any adjustment of the temporary gasoline levy or the 10 year, 59 trillion yen mid-term road construction plan, the bills now go the House of Councillors as crafted by the anachronistic bits of the ruling coalition.

The opposition coalition will tear the legislation to pieces, then leave it to die of exposure.

The budget will automatically go into effect in 30 days (Constitution of Japan, Article 60) just slipping under the wire for the April 1 start of the new fiscal year.

* * *

The Fukuda Cabinet and the four top LDP leadership posts are chock-a-block with faction leaders. These were the guys (and yes they are all guys) who were purported to have the juice within the party. They would twist arms and wring necks to get things done. As moderates, at least more moderate than the Abe Shinzō-Nakagawa Shōichi-Aso Tarō crowd, the current crop of ministers and party executives were supposed to be able to work with members of the Democratic Party of Japan to move legislation throught the Diet.

None of the above has happened. The ruling coalition is reduced to carrying out the country's business via the autopilot mechanisms built into the Constitution.

The LDP and Kōmeitō have run out of gas.

Do they know it?

Wednesday, February 20, 2008

Not ready for the Major Leagues

As the government tries to figure out why it took two hours to notify the prime minister of a collision between a fishing boat and the country's most advanced Self Defense Forces vessel--a delay making a mockery of any claims of an improvement in the country's crisis management since the inadequate response to the 17 January 1995 earthquake...or 31 August 1998 launch of the Taepodong missile over Japan...or Prime Minister Abe Shinzō's suddden incapacitation on 13 September 2007...(I think they get the picture, MTC - Editor) the Liberal Democratic Party finds itself scrambling in the Diet on the gasoline tax, stunned that the opposition refuses to abdicate its tactical advantages.

[Reversing gears for just a moment - that the MSDF Destroyer Atago's captain did not have clearance to blast an approaching fishing boat into oblivion before it could strike the very expensive bow of his very expensive ship must be disturbing to members of the coalition against terror. LDP faction leader Yamasaki Taku, always good for stating the incredibly obvious, worries that the accident may cast doubt the preparedness of Maritime Self Defense Forces deployed the Arabian Sea as regards possible small vessels suicide attacks. ]

Yesterday in the Diet, Prime Minister Fukuda Yasuo demanded that the Democratic Party of Japan take a first step toward meeting the government halfway on the renewal of the temporary gasoline levy. Only if the DPJ showed its hand--by proposing its own plan on what to do about the tax--could the two sides begin the process of coming to some sort of compromise position, the agreed-to solution to the parliamentary impasse over the bill worked out by Speaker of the House of Representative Kōno Yōhei and Speaker of the House of Councillors Eda Satsuki in a special end-of-January intervention (assen).

The DPJ response so far to the government's entreaties: go leap into a large body of freshwater.

The DPJ's position recalcitrance is not without merit. The government proposal, a 10 year, 59 trillion yen commitment, is absurd. The DPJ has not dignified it with a response--and is right to refuse to do so.

The government's absurd overreach on its bill reveals an even more fundamental and chronic problem. The demand for an opposition bill on the gas tax indicates that some 7 months since suffering a shattering reversal at the polls in the July 2007 House of Councillors election, the ruling coalition still does not understand what an opposition does. The ruling coalition, with help from the country's constipated editorialists, keeps asking the opposition to be responsible, to stop trying to score political points, to stop trying to weaken the ruling party. For some reason, the opposition is supposed to act responsibly and soberly, resign itself to its secondary status and give up on its advantages--all this for the common good, in order to further the national interest.

"Sure," the DPJ keeps telling them, "We will be incredibly responsible and work to further the national interest...just as soon as we are in control of the government."

In terms of the gasoline levy, the ruling coalition still has not grasped that the DPJ, not the ruling coalition, owns the default position. If the government cannot entice the opposition to come to a compromise, the tax will die--just as the DPJ said that it should. The government has no means of forcing the issue -- unless it offers up its own throat, the DPJ will not come out and play. Calling the DPJ "unserious" and "immature" will gain applause from some sections of the commentariat--but will only encourage Ozawa Ichirō and the rest of the DPJ to continue to play truant on the gasoline levy.

Only yesterday, I was berating the Democratic Party leadership for ceding any ground to the ruling coalition in the debate over the gasoline levy. Given the LDP's pathetic, brain dead whining over the issue, I may have been overharsh in my criticisms.

Tuesday, February 19, 2008

Ali Baba enters cave...


...finds it full of thieves.

I find myself failing to grasp the strategic logic of the recent round of Democratic Party Acting President Kan Naoto's speeches on the temporary gasoline levy. First he goes before a crowd of made men paid up members of the Road Tribe from the provinces and is booed heartily. Today he takes on a gibbering baboon the comedian-turned-governor Higashikokubaru Hideo and Aso Wataru, the governor of Fukuoka Prefecture and Chairman of the National Governors Association in a gentlemanly discussion of local finances and the road tax.

Excuse me, but we are not in college here. This is not the Oxford Debating Society. This is real life...and in real life the last thing you give to desperate, conniving fraudsters is your microphone.

Kan has sufficient star power to dominate the debate by himself. His goal in his appearances (and I can only think his innate decency prevents him from knowing it) should be to starve his opponents of every molecule of available oxygen and every iota of the attention of every journalist he can stuff into his schedule.

Why he is letting the provincials stand or sit alongside him as equals? If the point of the DPJ's argument is that these guys in the ugly suits are flim-flam artists, why is Kan giving them the least chance to muddle the discourse, weave their dark spells and purloin the public purse all over again?

The DPJ's sense of fairness, often purported to be the linchpin of its appeal, is really its greatest weakness.

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Chōja no Ana - Kofun Era lateral burial site
Kawasaki City, Kanagawa Prefecture
March 3, 2006

Tuesday, February 12, 2008

Tanakaism: The Final Days


On March 31, 2008 the Liberal Democratic Party will die.

Well, perhaps not the Liberal Democractic Party. But definitely a Liberal Democratic Party...the great, voracious beak of the octopus--the clownish, spiritually debilitating hogfest that has been the party's heart since a mawkish small-time construction company owner named Tanaka Kakuei bobbed, weaved, pocketed and disbursed his way around all the pre-war elites and grand poobahs to a place at the head of the table--the wealth-destroying bachannalia of concrete and cash so crass and transparent in its corruption that it made Abe Shinzō and the fantabulists look good by comparison.

To not appreciate the primacy of road building in the country is to not understand the country at all. The archipelago is draped in dense network of roads... a network not just of the roads themselves (and the bridges, the tunnels, the landslide-prevention measures) but of contractors, sub-contractors, subcontractors' subcontractors, former bureaucrats, part-time farmers, the postal savings system, the Ministry of Land and Infrastructure and thousands of politicians who have nothing else to do but live off the system -- that are The System.

When Inose Naoki wrote his Nihonkoku no Kenkyū (日本国の研究 - The Study of the Country Japan) he did not start with a description of the Iron Triangle of bureaucrats, industrialists and politicians. He did not talk about the lifelong employment system, about kaizen or about the prevalence of rote memorization in the schools. He did not talk about the kami, self-sacrifice, dependent behavior or the ideology of the Meiji.

He wrote about infuriating excellence of Japan's logging roads--roads without traffic, going nowhere, scarring the countryside--by design.

Over the last thirty-five years, nothing has been more important to a rural politician than the ability to dole out road construction contracts--indeed, for many politicians, securing of road construction contracts and getting reelected are the yin and the yang of government. One exists for the other--and for nothing else.

[Attending local social functions, the other mandatory activity of the rural politician, exists to prove to constituents that said politician is indeed still alive...which is not a joke, as we learned last year.]

The gasoline tax is the blood of the Tanakaist polity. So sure have politicians been of its power to motivate the base that they never even bothered to remove the zantei (interim, temporary) label from the levy. They knew, simply knew it would always be there--they indeed could not imagine political life without it.

When Koizumi Jun'ichirō set about saving the LDP by destroying it, he did so by siccing his two disrespectful, presumptuous attack dogs upon the road construction gang. His left hand loosed Inose upon the Dōro Kōdan (Japan Public Highway Corporation), forcing its breakup and the cleaning up of its finances. His right loosed Takenaka Heizō upon the Post Office, the piggy bank of the road construction state, forcing its breakup and privatization.

Since Koizumi's stepping down from the prime ministership, the road construction gang has been trying reassemble itself and get its hands back on the steering wheel. It got a huge boost of adrenaline in July of 2007 when Abe Shinzō's revisionist vision failed to entice the public into voting for the LDP. The stunning loss to Democratic Party leader Ozawa Ichirō's hoary and utterly insincere promises of transfers of wealth from the city to the countryside revived the hopes of the road construction partisans.

[Just an aside--does anyone else think that Tokyo Governor Ishihara Shintarō's promise to send 300 billion yen of Tokyo tax money to the hinterlands might have more to do with buying rural LDP member support for his son Nobuteru's run at the LDP party presidency than buying central government support for Ishihara Senior's quixotic bid to have Tokyo host the 2016 Olympics?]

Humpty Dumpty, however, is finding it hard to get back together again. Despite the full-court press of the traditional sanyaku (Koga Makoto is strangely absent from the debate) the LDP's road tribe could not get its act together in time to push the gasoline tax extension bill through the Diet. The party executive and local assemblymen staged a high-profile emergency meeting on January 23 to scare the Diet into voting for the extension...then, when that failed to have the expected effect, staged another emergency meeting on February 8, this time dragging in the prefectural governors, including the always-good-for-a-made-for-television-event Higashikokubaru Hideo of Miyazaki Prefecture.

To no avail.

The Tanaka Democracy has had an incredible run, staying a viable pantomime of electoral democracy well past the point where it descended into farce (when the both the population and the number of full-sized cars on the road are shrinking, how is it possible to argue that the country needs more and better roads?) The recent explosion in the number of talk shops, the new transparty alliances, the nervous runs for membership in the factions (I do not share all of Okumura Jun's faith in the resurgent significance of the factions. Frankly, I believe LDP politicians are joining factions for the same reason some people surf the Internet: it sure beats working), the hopped-up patriotism of the revisionists--all point to a deteriorating certainty in the ability of politicians to simply buy off the party's base.

It turns out the money is not there--Tanakaism has done to the peace-loving, low-tax Japanese state's finances what the military-media-industrial complex, outrageous defense expenditures and unending warfare have done to the finances of the United States. The gasoline tax, if it is saved, will be shoveled into the general fund, where it will be used to fill other holes than those found in road top surfaces. In the nebulous vastness of the general fund's flows--or, horror, of horrors, in a carbon-abatement levy--the link between one's local LDP politician and one's bank account will no longer be not crystal clear.

At which point, the LDP--Tanaka Kakuei's LDP--will be dead.

Wednesday, February 06, 2008

Winning by Losing

"I will not be able to sleep at night."

That was former Chief Cabinet Secretary Yosano Kaoru's reaction to his October 28 defeat at the hands of Ozawa Ichirō in a clash of the Diet's titans of the go board. The lower-ranked Ozawa had not just beaten Yosano; he had obliterated him.

Given recent news reports, it seems Yosano came up with a fine recovery strategy during his hours of staring at the ceiling. Indeed it may be possible that he did not lose the match at all.

Yesterday's Yomiuri Shimbun echoed an earlier Sankei Shimbun article* in noting that Yosano, instead of being exiled to the wilderness in the post-Abe Shinzō reorganization of the government, seems to have insinuated himself into the Kantei as the Prime Minister's go-to guy.

When a problem is tied up in knots, the PM seems to be turning to Yosano to untie it.

According to reports it was Yosano, not the PM's formal advisors or the ministers, who guided the PM to end the gyrations and evasions over the government's ability to provide compensation to the victims of blood-product borne Hepatitis C infection.

The arguments that swayed the PM to give up on the two-month extension of the temporary gasoline levy--a move that has killed any hope of continuing the present use of the levy as a sop to the road construction industry--also seem to have been Yosano's.

As for why the PM would follow Yosano's advice in this matter of vital interest to the future of the Liberal Democratic Party?

It seems that Yosano, in losing a game of go to Ozawa, won himself something more valuable than bragging rights. He and Ozawa are suddenly being referred to as nakama (comrades, boon companions)--when they had little in the way of notable interaction in the past. In December, Yosano joined the board of the Kokusai Kusa no Ne Kōryū Sentā (known in English as the John Manjirō Whitfield Commemorative Center for International Exchange) in the exalted position of Vice Chairman, second only to one Ozawa Ichirō, Chairman of the Kokusai Kusa no Ne Kōryū Sentā. The two of them naturally sat together at the organization's first board meeting of the year on January 4.

Now a back channel to Ozawa is a rare and wonderful thing. Ozawa's imperious manner and duplicitous, self-serving nature make him a very hard man to like--and he does not admit many persons as his equals.

By getting beaten in the October match, Yosano seems to have managed to entice Ozawa to lower his self protective shield a bit. Theirs seems to be a relationship that Ozawa can take pride in--where the homely country bumpkin outwits and then befriends the suave city boy with the illustrious family history.

Yosano's capacity to talk directly to Ozawa may be crucial in the next few weeks as the deeply estranged LDP and DPJ try to come to terms in the promulgation and passage of the new budget and its ancillary legislation by a March 31 deadline. The formal mechanisms of Diet debate and compromise are either frozen up from disuse or too damn hot to handle.

The question now is, with Yosano's interventions coming out into the open, whether the formal leaderships of the LDP and the DPJ will sign off on the deals worked out through the back channel.

---------------------------------------------

* I am indebted to Tobias Harris of Observing Japan for drawing my attention to this article.