Subcommittee on Local Autonomy (Fifth Meeting)

Thursday, July 11, 2002

Meeting Agenda

Matters concerning local autonomy

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

Informant

Members who put questions to Gov. KITAGAWA

Main points of Gov. KITAGAWA's statement

1. People in their daily lives as the starting point

>> Until now, government has viewed things from the standpoint of those who administer the use of tax money. In future, I believe that government needs to make policy by adopting the viewpoint of those who pay the taxes and judging whether they are receiving satisfactory administrative services. In other words, we need to take people in their daily lives as the starting point.

2. The approach of providing information

>> When one takes people in their daily lives as the starting point, public access to information becomes essential. In Mie Prefecture, we do not merely release the results of policy-making on request. We provide information to the public of our own accord, including information on the deliberative and decision-making processes; further, our goal is "information sharing" with residents. I believe that this enables us to collaborate with Mie Prefecture's citizens, which, in turn, leads them to be aware of their own responsibility for government.

3. The introduction of "New Public Management" (NPM)

>> In order to make people in their daily lives the starting point of government, Mie Prefecture has adopted "New Public Management" (NPM), an approach to public administration which introduces private-sector management methods and principles. By taking this approach, we have shifted: (a) from emphasizing targets to emphasizing results; (b) from a compartmentalized to a "flat" organization; (c) from budget-oriented to balance-sheet-oriented thinking.

4. Promoting decentralization

>> Local governments need to correct their systemic dependence on the central government. Further, by breaking away from a reliance on centralized authority and bureaucratic rule toward decentralization and local autonomy, we can become a "mosaic nation" which makes the most of the distinctive features of each of its regions, thereby enhancing their potential for development.

>> The Comprehensive Decentralization Law has brought about a major change in local governments' relationship of subordination to the central government. What is required now is a relationship between equals, not of opposition but of cooperation.

5. Some comments from my experience as a Diet Member and governor

>> Having been a member of the House of Representatives before I became Governor of Mie Prefecture, I am keenly aware of the differences in standpoint between a governor and a Diet Member. Local public bodies and Diet Members should share their insights on how to achieve local autonomy through discussions and other exchanges.


Main points of questions and comments to Gov. KITAGAWA

WATANABE Hiromichi (Liberal Democratic Party)

>> According to yesterday's press reports, you are one of the founders of the "Decentralization Research Group" that was launched yesterday. I would like to know more about the background to the establishment of this group and about its work. Also, what do you mean when you advocate a "mosaic nation"?

>> You have said that local governments' systemic dependence on the central government should be corrected. However, some people question whether the municipalities can function effectively as the recipients of decentralized power. What is your view on this point?

>> Municipal mergers are being promoted by the Special Law on Mergers of Municipal Authorities, which has a March 2005 deadline. What is your view of the current status of these mergers?


YAMADA Toshimasa (Democratic Party of Japan and Club of Independents)

>> Your ideas and principles are being put into effect in the government of Mie Prefecture. Do you work these out on your own, or do you have a "brain trust"?

>> In realizing your ideas, it cannot have been easy to change the old ways of thinking and the old system within the prefectural government. What was the key to bringing about these changes?

>> There is much duplication of duties among the central, prefectural, and municipal governments, e.g., operating the same subsidy programs. In light of this situation, to what extent do you think the central government should transfer its authority in the process of decentralization?


EDA Yasuyuki (New Komeito)

>> I believe that we need to transfer taxation and fiscal resources to local governments in order to make it easier for taxpayers to see how their taxes are being used, and to overcome the sense of impasse at the regional level. What are your views in this regard? Also, how do you evaluate concrete plans such as the proposal by Mr. Katayama, the Minister of Public Management, Home Affairs, Posts and Telecommunications, to transfer 5.5 trillion yen in tax revenues to local governments?

>> In Mie Prefecture, you are carrying out reforms that point the way for the central government, such as information access and citizen assessment of the administration. This is truly a case of a local government spurring the central government to make reforms. What reforms are you considering for the future?


TAKEYAMA Yuriko (Liberal Party)

>> For many years, both the central government and local governments have been talking about decentralization but have not acted on it. From your perspective as one actively engaged in local government, what do you think is the reason for this?

>> A governor has strong powers similar to those of a president. What are your views with regard to the governor's powers?

>> At present, the prefectural governments hold the right to make personnel decisions relating to schools. However, I believe that this should be the right of the municipalities, which are closer to the actual classroom situation. What are your views on this point?


HARUNA Naoaki (Japanese Communist Party)

>> What do you think is the significance of Chapter VIII (Local Self-Government) of the existing Constitution, which was not present in the Meiji Constitution? Also, I believe that the provisions of Article 25, on the right to minimum living standards of wholesome and cultured living, are important in the actual practice of local government. What measures have you taken to reflect the principles of Article 25 in the day-to-day running of the prefectural government?

>> In my view, New Public Management, which introduces private-sector management practices to the public sector, cannot be applied in fields that do not lend themselves to market principles, for example, welfare administration in such areas as home nursing care, or the administration of the education system. What are your views in this regard?

>> Mie Prefecture has decided to pay subsidies of up to 9 billion yen over fifteen years to a private company, the Sharp Corporation, but some people seem to think that public funds of this kind should be used to foster local industries, such as pearl cultivation or other types of agriculture, forestry, and fisheries. What are your views regarding the balance between these two?


KANEKO Tetsuo (Social Democratic Party)

>> In promoting decentralization, I think it is important to have an effective mechanism for reflecting regional opinion in the central government. What are your views in this regard, including your assessment of the existing mechanism?

>> Even if local governments were permitted to have their own sources of revenue, disparities in their fiscal strength would inevitably arise. What are your views on securing autonomous revenue sources for local governments?

>> With the forestry industry in recession, how far do you think prefectural governments should go in undertaking the kind of "green employment projects" that you have proposed, that is, public forestry management and similar projects with the goal of preserving the natural environment?


INOUE Kiichi (New Conservative Party)

>> Has your concept of prefectural government truly gained wide acceptance among the prefecture's employees? Also, what steps have you taken to ensure that it does?

>> In my view, securing high-quality employees is important to decentralization. Does Mie Prefecture still allow amakudari appointments of former top officials who have retired from ministries in the central government?

>> As municipal mergers proceed, the abolition or amalgamation of the prefectures, which are a mid-level entity, will become a pressing issue. What are your views of this?

>> As a politician, what parts of the Constitution of Japan do you think should or should not be revised? Also, what do you think is the proper form of Article 9 and the guarantee of fundamental human rights?


ITO Kosuke (Liberal Democratic Party)

>> I believe that, instead of the form of local assemblies (e.g., the number of members) being determined uniformly by law, each local body should be free to make its own decisions on these matters. What is your view of this based on your experience as governor?

>> In view of the recent scandals involving politicians and bureaucrats, I believe that the system of bidding for public works should be reformed. There have been some experiments of this type, such as Yokosuka's electronic tender system. What are your views on the ideal bidding system for public works?


NAKAMURA Tetsuji (Democratic Party of Japan and Club of Independents)

>> Competition among local bodies is currently attracting attention. In what ways do you think Mie Prefecture excels over other prefectures?

>> Taking into consideration the possible introduction of a do-shu system, which would integrate the prefectures into a small number of states or provinces, I believe that there will be a shift of emphasis from competition to cooperation among local bodies. What are your views on cooperation among prefectures?

>> In realizing local autonomy, what relationship do you think there should be between members of the Diet and prefectural governors?


YASUOKA Okiharu, Chairman of the Subcommittee

>> In my view, Japan today has lost sight of the goals it should aim for, and hence we need to rebuild our ideal concept of the nation and the system for its realization. From your perspective as governor, what are your views on a new vision of Japan?

>> Once municipal mergers have proceeded, and once authority and fiscal resources have been transferred to the basic units of local government, I believe that the prefectures, as mid-level entities, should be eliminated and do-shu system introduced. What is your view of this?

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

ITO Kosuke (Liberal Democratic Party)

>> I think that decentralization is being held back by the practice of seconding national civil servants from central-government ministries to important posts in local governments, including Mie Prefecture. Instead of relying on transfers of national civil servants, we should consider a system that allows hiring from the private sector.


MORIOKA Masahiro (Liberal Democratic Party)

>> Mie Prefecture's efforts toward "balance-sheet-oriented thinking" should be taken up in the Diet also. We should change the nature of the Budget Committees and the Committees on Audit and Oversight of Administration, which have become focused on investigating scandals and are not conducting deliberations on the budget or audits.


NAKANO Kansei, Deputy Chairman of the Commission

>> In Japan, while professing democracy, at some point we created walls out of the rules of democracy and convinced ourselves that protecting these walls is what democracy is all about. It is time to make democracy truly democratic, and decentralization and freedom of information are essential means to that end.

>> With regard to the bicameral system, there is a need to consider such measures as assigning separate roles in the budget and audit deliberation process to each of the Houses, and establishing a difference in the way their Members are elected.


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

>> Japan's local public bodies have a nationally uniform system of government that resembles a presidential system; moreover, the heads of local governments have far greater powers than the local assemblies. It is questionable whether such a system is truly appropriate. There is a need to study an optimal system, placing importance on resident participation.


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

>> Through its postwar development, Japan has become a nation with a huge population and great economic strength, and its domestic administration, in particular, has bloated to grotesque proportions. In future, it will be important to clearly distinguish the roles of the central and local governments in order to bring balance to the nation.


YASUOKA Okiharu, Chairman of the Subcommittee

>> Japan should aim to become a mature society by becoming a nation with transparent local autonomy. We should make this a national goal.

>> If decentralization proceeds and powers are transferred to the municipalities, the prefectures will have less and less reason to exist. Thus, I think it is very meaningful that the Council for Decentralization Reform has begun to study the do-shu system.


HARUNA Naoaki (Japanese Communist Party)

>> Self-government by residents is extremely important to local autonomy. I am concerned that, if the do-shu system is introduced, it may be more difficult to reflect residents' opinions as the new units will be larger than the existing prefectures.