Subcommittee on Local Autonomy (Fourth Meeting)

Thursday, June 6, 2002

Meeting Agenda

Matters concerning local autonomy

After a statement was heard from Governor KATAYAMA Yoshihiro concerning the above matters, questions were put to him; this was followed by discussion among the members.

Informant

Members who put questions to Governor KATAYAMA


Main points of Governor KATAYAMA's statement

Issues pertaining to the realization of local autonomy

1. Heads of local government and their organizations

>> The current Local Autonomy Law defines in detail the organization and structure of local government and obstructs the development of diverse, local and flexible organizations and structures. Therefore, the law should be revised.

>> Power is concentrated in the hands of heads of local government. In the case of persons serving multiple terms, this power is frequently diverted towards personal objectives and gives rise to various problems. Therefore, term limits should be placed on heads of local government.

2. Independent administrative commissions

Members of independent administrative commissions, such as the Board of Education and the Public Safety Commission, are neutral in their position but lack expertise and decision-making capability and accountability. Hence, they are left in a limbo state of uncritically accepting the policies of the central and prefectural governments. The following measures should be considered for developing decision-making capability and introducing democratic principles: (a) place such commissions under the jurisdiction of elected local government heads; (b) determine commission members through public election.

3. Local government assemblies

>> Local government assemblies are frequently reduced to empty skeletons by rampant backroom pre-arrangements and the exchange of prepared questions and answers in the deliberation process. Such practices should be reformed and a healthy sense of tension should be introduced in the relation between local government heads and assemblies.

>> The Local Autonomy Law prescribes uniform rules concerning the number of seats in local assemblies, the frequency of ordinary meetings and other matters. The law should be revised to eliminate these uniform rules and to make way for greater diversity and self-determination in the form of local assemblies.

>> Changes should be made to allow for ordinary citizens, such as teachers, businessmen and others, to serve on local assemblies while retaining their jobs and professional status.

4. Audit systems

>> Audit systems are so crucially important that a healthy sense of tension should be developed between auditors and those being audited. Public election of members of auditing committees and other measures should be considered.

5. Local finance

>> The current breakdown of local finances is due to the fact that the central government pressured local governments to undertake public works projects with the promise that Local Allocation Tax grants would be allocated for the redemption of local government bonds.

>> The central government has used subsidies and other means to direct local governments towards public investment focused on infrastructure projects, such as dams. However, what local governments really need is "software" investments for developing human resources for the environment, education and other needs. Local finances should be left neutral as regards policy-making by local governments.

6. Local taxes

>> Corporate enterprise taxes, the leading source of prefectural government revenues, are easily affected by business conditions. Hence, other revenue sources should be developed, such as the introduction of tax assessments based on business size. Another possibility would be to transfer corporate enterprise taxes to the national government in exchange for the transfer of personal income taxes to local governments.

7. Relation between central and local governments (severing the apron strings)

>> The relation between central and local governments should be based on the principle of "what local governments are capable of doing should be left to local governments" and "the central government should perform its own duties." Local governments should stop depending on the central government, while the central government should concentrate on performing the things that constitute its essential duties.


Main points of questions and comments to Governor KATAYAMA

ITO Kosuke (Liberal Democratic Party)

>> The introduction of independent local taxes is essential to structural reform aimed at moving the central government. It also provides an opportunity to bring the matter of taxation closer to the public. What is your view of this matter from your perspective as governor?

>> The Minister of Public Management, Home Affairs, Post and Telecommunications recently announced a proposal for transferring \5.5 trillion in national taxes to local tax coffer. Local fiscal reform needs to be considered in light of the Local Allocation Tax grants. What is your view on the fundamental reform of the Local Allocation Tax grant system?


NAKAGAWA Masaharu (Democratic Party of Japan and Club of Independents)

>> Local government heads wield strong powers while local government assemblies remain weak: I believe this to be the legacy of an age when prefectural governors were government appointees. One solution could be to introduce a parliamentary cabinet system on the local government level. What is your view on this matter?

>> The transfer of tax bases in the process of decentralization may exacerbate regional disparities. What type of fiscal adjustment mechanism would you propose for coping with this issue?

>> There are two opposing views concerning the proposed re-organization of Japan into a "do-shu" system which would integrate the prefectures into a small number of states. One view holds that such state governments should perform functions that are close to those of the national government. The other view is that state governments should be restricted to a complementary role in a system placing emphasis on basic autonomy units. Where do you stand on these two approaches?


EDA Yasuyuki (New Komeito)

>> Regarding the fiscal system, you subscribe to the principle of "quantitative restraint" in which government revenues (tax yields) are determined on the basis of projected expenditures which in turn are determined on the basis of estimates of the administrative load. You have argued that abiding by this principle will allow local governments to take greater initiative in policy discussions. As governor, how have you put this theory into practice, and what results have you achieved?

>> Even if the Local Allocation Tax grant were to be fundamentally revised, there would still be a need for a horizontal fiscal adjustment mechanism which is built into the Local Allocation Tax grant system. What are your views on the balance between Local Allocation Tax grants and independent tax revenue sources?


TAKEYAMA Yuriko (Liberal Party)

>> In decentralizing the education system, I believe the hiring of school teachers should be transferred from the prefectural to municipal governments. What is your view on this matter?

>> One of the reasons that school principals are unable to exercise leadership is said to be that principals do not have authority over personnel matters pertaining to teachers. What is your view on this matter?

>> I believe political centralization has deprived Japan of local diversity in various fields, including education, and has led to uniformity. In your opinion, what is the root cause of this problem?


HARUNA Naoaki (Japanese Communist Party)

>> In performing your duties as prefectural governor, what is your understanding of the Constitution?

>> I believe that the housing reconstruction support program that you introduced following the Western Tottori Earthquake of October 2000 represents an implementation of the principle of the people's right to "minimum standards of wholesome and cultured living" as enunciated in Article 25 of the Constitution. In undertaking such a program, what human rights needs will government agencies have to meet in light of the provisions of the Constitution?

>> The government is currently promoting a program for the merger of municipalities. This program cites a goal for the total number of municipalities and includes preferential fiscal treatment within a certain timeframe. What are your views on the government's promotion of municipal amalgamation? How is the Tottori Prefectural Government involved in municipal amalgamation?


KANEKO Tetsuo (Social Democratic Party)

>> Can municipal amalgamation really solve the various problems of under-populated regions?

>> Tottori Prefecture is engaged in "Pan-Japan Sea Exchange," an international exchange program undertaken by local governments. In your opinion, what kind of role can local governments perform in Northeast Asia?

>> From the perspective of human rights and local autonomy, what are your views concerning the three emergency-response bills currently under deliberation in the Diet?


NISHIKAWA Taiichiro (New Conservative Party)

>> To promote decentralization, I believe it will be necessary to provide local governments with the independent right of taxation. What are your views on this matter? Local governments have been considering the introduction of "bank taxes" and "hotel taxes." What are your views on this development?

>> Unlike the Diet, I believe local government assemblies are called on to engage in matters that have a direct bearing on the lives of local residents. What are your views on the revitalization of local assemblies?


MORIOKA Masahiro (Liberal Democratic Party)

>> Are there any points that should be revised in the current laws concerning the relation between the heads of local governments and local assemblies? If so, what are they?

>> You have stated that members of Boards of Education should be determined in public elections. Would this not inject ideological conflicts into the Boards of Education? What are your views on a system in which teachers receive half of their pay from the central government?


NAGAI Eiji (Democratic Party of Japan and Club of Independents)

>> In promoting decentralization, is there not a necessity for the National Governors' Association and other regional organizations to take the initiative?

>> I believe that autonomy should be given to the administrative wards of cabinet-ordered designated cities. What is your view on this matter?


WATANABE Hiromichi (Liberal Democratic Party)

>> In performing your duties as governor, what do you interpret the "principle of local autonomy" to mean?

>> What problems do you think exist in the current Local Autonomy Law?

>> The Local Allocation Tax grant system is extremely complicated and I believe it should be simplified. What is your view on this matter?


Main points of comments made by members of the Subcommittee (in order of presentation)

NISHIKAWA Taiichiro (New Conservative Party)

>> The central government should trust the capabilities of local governments and transfer power to them. This matter should be examined in amending the Constitution.


NAKANO Kansei, Deputy Chairman

>> In the United States, extensive powers have been assigned to local governments in such areas as finance and education. In certain instances, municipalities have adopted the system of city managers. We need to re-examine the system of local autonomy in Japan as well with reference to these models.

>> I believe provisions for the transfer of power to local governments should be included in the Constitution.


KONNO Azuma (Democratic Party of Japan and Club of Independents)

>> According to Article 81 of the Self-Defense Forces Law, the prime minister may order the deployment of security forces upon request of a governor. However, under the emergency-response bills currently being debated, the national government will be authorized to exercise this power on behalf of local governments. This proposed provision is in violation of local autonomy.


ITO Kosuke (Liberal Democratic Party)

>> We do not have adequate legal provisions concerning recovery and reconstruction from natural disasters. Laws should be enacted to support disaster victims in rebuilding their homes and recovering from disasters.


HIRAI Takuya (Liberal Democratic Party)

>> From the perspective of respecting local initiative and self-reliance, it is no longer necessary to ensure the availability of the same level of administrative services throughout the country. Nor is it any longer necessary to emphasize balanced development of the national land. Such matters as municipal amalgamation and the introduction of electronic government should also be left to the discretion of local governments.


HARUNA Naoaki (Japanese Communist Party)

>> Thanks to the persistent efforts of the victims of the Great Hanshin-Awaji Earthquake, financial aid has become available under the Socioeconomic Rehabilitation Aid for Victims Law. As a result, the government's adamant position that "individuals will not be given support for losses inflicted by natural disasters" is now crumbling. Article 25 of the Constitution also assigns to the government the responsibility of guaranteeing the livelihood of individuals in a natural disaster.


KANEKO Tetsuo (Social Democratic Party)

>> The national government bears a responsibility for compensating the damages suffered in natural disasters. Similarly, the government is politically responsible for damages suffered by the people in war, and therefore should be responsible for compensating members of the general public who have suffered in war.


TATEYAMA Yuriko (Liberal Party)

>> In comparison with the United States, members of local government assemblies, etc. in Japan lack the willingness to stand in the shoes of the average citizen, to develop an accurate understanding of the needs of the public and to take the required action. This problem must be rectified.


NAKANO Kansei, Deputy Chairman

>> The concepts of State and local autonomy differ from one country to another. This point merits examination in the course of our discussion of local autonomy.