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Monday, 4 June 2012 - Japan PM sacks five ministers to win tax-plan backing |
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See the best of Reuters photography.  See more | Photo caption  Long live the Queen Britain gets ready to celebrate Queen Elizabeth's Diamond Jubilee.  Slideshow  The autistic mind Scenes from a home with two autistic children.  Slideshow  Japan PM sacks five ministers to win tax-plan backing Tweet Share this Email Print Related News UPDATE 5-CP Rail strike won't end until Friday at earliest Wed, May 30 2012 Fitch cuts Japan as politics hinders debt plan Tue, May 22 2012 Serbian right tied for power with liberals Sun, May 6 2012 Analysis & Opinion Essential reading: Boehner sticks to no tax-hike pledge, and more Essential reading: Medical device tax repeal gains ground, and more Related Topics World » Japan » Japan's Prime Minister Yoshihiko Noda speaks at a news conference to announce new cabinet members at his official residence in Tokyo, June 4, 2012. Credit: Reuters/Kim Kyung-Hoon By Stanley White TOKYO | Mon Jun 4, 2012 2:13am EDT TOKYO (Reuters) - Japanese Prime Minister Yoshihiko Noda replaced five cabinet ministers on Monday hoping to smooth the way to a deal with the opposition on doubling sales tax in spite of a rift in the ruling party over the plan. By removing the ministers, who the opposition has criticized for not performing properly, Noda hopes to persuade the biggest opposition party, the Liberal Democratic Party (LDP), to back a package of tax bills including the sales tax increase. He needs opposition support to bet bills through a divided parliament. The increase in sales tax, which would bring it to 10 percent by 2015 from 5 percent now, is seen as essential in an effort to curb Japan's snowballing public debt. The debt exceeds the value of two years of economic output, the highest among industrialized nations and ratings agency Fitch cut its credit rating last month, citing scant progress in coping with swelling social security costs. "This reshuffle is to strengthen the cabinet and ensure that the government can make progress on several different policies, including tax and welfare reform," Noda said at a news conference. "I cannot allow this bill to be defeated. I will do my best to make sure this bill gets passed." The LDP has long tried to force Noda to call an early election by threatening to block the bills in parliament's upper house, which the opposition controls. However, in the past weeks the LDP has indicated a compromise was possible if the ruling Democrats agreed to drop parts of the tax and social security reform that could lead to more spending. Noda is increasing efforts to narrow the gap with the opposition, and at the same time struggling to unite his own Democratic Party after a second round of talks in a week with the party's power broker, Ichiro Ozawa, fell apart on Sunday. NODA AIMS FOR VOTE THIS SESSION The opposition reacted coolly to the cabinet reshuffle. LDP upper house secretary general Kensei Mizote said any talks on a compromise on welfare reform had nothing to do with Noda's decision to shake up his cabinet, according to Kyodo News. Noda replaced the defense minister, Naoki Tanaka, and the transport minister, Takeshi Maeda, who were both censured in April by the upper house, along with three others who have faced criticism. Tanaka's replacement is Satoshi Morimoto, a conservative academic and well-known expert in security policy who has served in the Foreign Ministry and the air force. Yuichiro Hata, who previously served as the Democrats' head of parliamentary affairs in the upper house, is the new transport minister. Banking Minister Shozaburo Jimi, who heads a small coalition partner but whose ability has been questioned in parliament, has been replaced by Tadahiro Matsushita, vice minister for reconstruction after a 2011 earthquake. Farm Minister Michihiko Kano will also be replaced. He has been connected with a Chinese diplomat who is suspected of espionage. The justice minister was also replaced. Without the votes of a group of legislators loyal to Ozawa, the Democratic Party's biggest faction, Noda needs opposition help to pass bills through the lower and upper houses of parliament. A former finance minister, Noda has staked his career on the tax increase, pledging to force a vote in this session of parliament which ends on June 21. (Additional reporting by Rie Ishiguro; Editing by Tomasz Janowski and Robert Birsel) World Japan Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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