Kan, Ozawa face off in public debate / Cross swords on Futenma, govt spending

Ayako Hirayama / Daily Yomiuri Staff Writer

Prime Minister Naoto Kan and his opponent Ichiro Ozawa clashed over key policy issues during a public debate Thursday in the runup to the Democratic Party of Japan's leadership election.

One day after official campaigning for the Sept. 14 election began, Kan reiterated his goal of replacing "old politics" with "clean and open politics," an apparent criticism of Ozawa, who has been engulfed in political funds scandals and could face mandatory indictment.

"Politics has been plagued by a murky relationship with money. I want to make politics clean and open, so everyone can take part in policy discussions," Kan said in the debate at the Japan National Press Club in Tokyo.

Kan, who took office three months ago, said that in the old style of politics, it was money and the number of supporters that mattered.

"But if you have a strong spirit and work hard, you can be involved in politics without much money," he said. "The process and meaningful discussions are more important than numbers."

However, Ozawa took his own swipes at Kan, saying that his handling of budget planning for the next fiscal year is akin to the political style of the Liberal Democratic Party, the party the DPJ wrested power from about a year ago.

The Kan administration approved guidelines for 2011 budget requests that call for cuts of 10 percent in policy-related spending, despite the opposition of some DPJ officials and Cabinet members who argued that flexibility in spending is necessary.

"The way it's being handled is no different than before," Ozawa said. "I'm very worried. I'm afraid what the DPJ is doing is not what we pledged to the people."

Ozawa, who played a key role in leading the DPJ to a landslide victory in last year's House of Representatives election, maintained his position that the ruling party should stick to its election pledges. This stance was particularly clear on the consumption tax issue.

Ozawa said he would keep the promise made by the administration of former Prime Minister Yukio Hatoyama that the government would hold off on raising the sales tax, trying to cut wasteful spending instead. Kan, whose mention of a possible tax hike is widely viewed as being behind the DPJ's poor performance in July's House of Councillors election, countered that he hopes a discussion on tax reform would be held among the parties before the next extraordinary Diet session.

Although Kan claimed Japan should build a society where people paid taxes to make life easier for everyone, Ozawa expressed skepticism that a welfare system similar to those in Scandinavian countries would work here.

Ozawa said the government should hand over more money and more authority to local governments so they can manage social welfare services.

"Each municipal government faces a different situation. It would work better if local governments take the lead," he said.

With the economic recovery showing signs of slowing, both candidates said bolstering the economy is urgently needed. Kan said he would place priority on creating jobs.

"First is employment, second is employment and third is employment," he said. "I believe creating jobs is the key to stemming public anxiety and breaking economic stagnation."

Ozawa agreed with Kan that the labor market needed revitalizing, but he also said the nation's economy should be supported by domestic demand.

"People used to say when the United States sneezes, Japan catches a cold. This is still true," Ozawa said.

On diplomatic issues, Ozawa said he had no intention to completely restart negotiations with the United States over the relocation of the U.S. Marine Corps' Futenma Air Station, after indicating at a press conference Wednesday that Japan needs a new solution to the issue.

He admitted he does not have a specific alternative plan, but said implementation of the current agreement would be difficult as it faces strong opposition from people in Okinawa Prefecture.

"The government should talk to local people and the United States and come up with a wise decision that is acceptable to both parties," he said.

Kan rebuffed the idea. "To continue talks that went back and forth for a year would damage not only ties with the United States, but also affect work in other policy areas," he said.