Subcommittee on Ideal Government and Organizations (First Meeting)

Thursday, February 13, 2003

Meeting Agenda

Matters relating to ideal government and organizations (local autonomy)

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

Informant

Members who put questions to Governor MASUDA

Main points of Governor MASUDA's statement

1. The regional partnership of the three prefectures of northern Tohoku

>> Traditionally, prefectural governments have always tended to look to the central government and not to cooperate with their neighbors, but since the governors of the three prefectures of northern Tohoku (Aomori, Akita, and Iwate) held a summit meeting in September 1997, we have recognized that there are many issues which the three prefectures should address together, and we have developed an increasingly close partnership in such fields as tourism, the environment, and industrial waste. To give a concrete example, our joint projects include setting up "antenna shops"- information plazas for product marketing.

>> At the start of the partnership, we pursued economies of scale in the form of cumulative results, but we have now reached the point of dividing roles among us in a number of fields. In the future, we intend to formulate a grand design for the three prefectures, to issue local bonds jointly, to share roles with regard to social capital, and so on. Further, we hope to expand the partnership to include all six prefectures in the Tohoku region.

2. The basic approach to reform of the local government system

>> In the basic approach to local government, it is important to pursue self-determination and self-responsibility to the fullest possible extent. To that end, it is necessary to bear in mind the principle of complementarity. That is to say, whatever can be done at the municipal level should be done at that level as far as possible; what cannot be done by the municipalities should be done by the prefectures; and what cannot be done by the prefectures should be done by the national government. On that basis, among other measures, steps should be taken: (a) to achieve economic independence after securing fiscal resources at the local level; (b) to radically rethink the division of roles among the municipalities, the prefectures, and the national government from the perspective of residents; (c) to secure human resources.

>> The role of the prefectures in the above process is to support the smaller-scale local governments, to provide liaison and coordination between the municipalities and the central government, and to address broad regional issues.

>> In recent years, an increasing number of governors are in favor of prefectural mergers.

3. What is required of wide-area local governments

>> The scale of regional units should be adjusted to accommodate changes such as the falling birthrate and aging society (population decline), internationalization (offshore movement of companies), and the fact that residents' daily lives today extend over a wide geographical area.

>> To that end, it is necessary: (a) to ensure the economic independence of regional units; (b) to share functions among prefectures; (c) to adjust public finances horizontally in bloc units; (d) to transfer duties to the regions; and (e) to outgrow the prefecture-based "full set" mentality, in which each prefecture is expected to provide a complete set of social capital, etc.

4. Wide-area local government systems: the do-shu system, prefectural mergers (amalgamations)

>> Building a system of wide-area local governments is a national task which will involve reviewing the duties of the national, prefectural, and municipal governments.

>> In building a local government system for the future, we will need to work together with residents on the system design, while adopting a flexible "one nation, multiple systems" approach.

5. Conclusion

>> With regard to the do-shu system and prefectural mergers, a diverse array of options reflecting the views of those involved at the practical level should be presented and the regions should be offered a choice among them. I believe there are many possible measures that fall within the scope of Article 92's "principle of local autonomy."


Main points of questions and comments to Governor MASUDA

TANIKAWA Kazuo (Liberal Democratic Party)

>> You mentioned holding a governors' summit in the course of promoting a regional partnership among the three prefectures of northern Tohoku. At the summit, was it felt that the local autonomy provisions in Chapter VIII of the Constitution are an insufficient basis for moving toward a future do-shu system or prefectural mergers, or was it felt that progress can be made without problems under the existing Local Autonomy Law and other relevant legislation?


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

>> Supposing that a do-shu system were introduced, I think there are two images of the relationship that would exist between the do-shu and the basic units of local government: (a) the do-shu would play a coordinating role as local government bodies situated between the national government and the basic units of local government; (b) in addition to playing a coordinating role, the do-shu would act as a repository for powers devolved from the national government. Which of these two images of the do-shu system do you have in mind?

>> The present system requires that the heads of all local governments be chosen by direct election. In future, since there will likely be greater diversity among the basic units of local government, I believe that the ideal system of local government should not be uniformly determined nationwide, but that there should be room for diversity, e.g., the introduction of a system of city managers (nonelected chief executive officers). What are your views in this regard?


SAITO Tetsuo (New Komeito)

>> You noted that providing a "full set" of infrastructure in every prefecture is not compatible with economic efficiency, but do you think that the do-shu is the smallest rational unit for providing a "full set"?

>> Some people argue that the education system should be reformed to give the responsibility for education to the basic units of local government or related bodies, instead of the present nationally uniform system in which the national government plays the central role. What do you see as the position of education within the do-shu debate?

>> As a member elected from the Chugoku bloc of proportional representation electorates, I have been made aware of the need to address issues that affect districts extending across prefectural borders. How do you view the relationship between the proportional representation blocs and the do-shu system?


TAKEYAMA Yuriko (Liberal Party)

>> Could you explain the reason why the state-centered, centralized system of local government established in the Meiji period has withstood criticism and remained in place to the present day?

>> With regard to education, I believe that if the system of hiring teachers were reformed so that appointments were made by the municipalities or other local bodies, instead of the prefectural governments, children could be taught the traditional culture and other aspects of their local heritage. What are your views in this regard?

>> You said that half the duties presently handled by the prefectures could be transferred to the municipalities. Could you give some examples of duties that could be transferred?

>> You spoke of "economic independence" for local governments. Would you please explain the substance of this in detail?


YAMAGUCHI Tomio (Japanese Communist Party)

>> Have there been any changes in your thinking on the ideal form of local government since you became Governor, as compared with when you held a post in the Ministry of Construction?

>> As an example of regional partnership, you cited the sharing of functions in advanced medical care. The availability of pediatric emergency care has become an issue following the recent incident at Ichinoseki, in Iwate Prefecture, in which an eight-month-old boy died after being refused treatment at one emergency hospital after another. With regard to the pediatric emergency care system, to what extent do you think the prefectures should be responsible, and what form of cooperation with the national government do you envisage in future?

>> I understand that Iwate Prefecture has a low proportion of independent fiscal resources. You have pointed out the need for an extensive transfer of fiscal resources and establishment of autonomy in levying taxes, but what steps do you think should be taken to pave the way for securing fiscal resources?

>> I believe that with regard to municipal mergers, self-determination by the municipalities should be respected. How do you evaluate the private proposal by Professor NISHIO of the Local Government System Research Council, which has been much criticized from this point of view?


KANEKO Tetsuo (Social Democratic Party)

>> It seems to me that the current series of municipal mergers is being promoted at the initiative of the central government and with the emphasis on fiscal issues. I believe that mergers can only succeed where there are preexisting regional partnerships at the level of day-to-day cooperation. Do you agree with this view?

>> In many municipalities, even if a wider area is brought under a single local government through mergers, population growth cannot be expected, and the trends toward a lower birthrate, aged society, and depopulation will continue. In view of these facts, will it not be difficult to secure independent fiscal resources at the municipal level?

>> In recent years, there is a trend toward holding residents' referendums on important issues and enacting ordinances to make such referendums possible. What are your views in this regard?


INOUE Kiichi (New Conservative Party)

>> When one considers that social and economic conditions today are very different from those of 1890, when the prefectural system was introduced, together with the view that authority should be vested in a small number of bodies, I believe that the time has come to create a new system of government. In mapping out a new system, I believe that we should do away with the prefectures and place the basic units of local government at its center. What are your views in this regard?

>> Could you give examples of the duties that you think should remain under prefectural jurisdiction if the concept of wide-area local governments that you advocate becomes a reality?

>> Do you think that the Constitution's provisions on local self-government (Chapter VIII) are adequate? If they were to be revised, how do you think they should be changed?


SATO Tsutomu (Liberal Democratic Party)

>> In promoting a partnership among the three prefectures of northern Tohoku, are you considering the possibility of a future merger, or do you think that you should strengthen the partnership by developing a closer cooperative relationship along the existing lines?

>> Based on your experience of promoting a regional partnership, are there any points that you feel are inadequate in the existing system?

>> In the process of promoting the partnership among the three prefectures of northern Tohoku, how do you think municipal mergers should be further advanced?


FURUKAWA Motohisa (Democratic Party of Japan and Club of Independents)

>> Judging by the examples of administrative and fiscal reforms that have succeeded in other countries, I think that Japan is taking on too difficult a task in attempting to carry out administrative and fiscal reforms that involve the nation as a whole, as this is far too large a scale. I believe that if we rationalize the scale of government and public finances by promoting larger regional units or introducing a do-shu system, both local governments and the central government will function more efficiently, and Japan as a whole will be revitalized. What are your views in this regard?

>> I recognize the importance of fiscal issues, particularly those involved in compilation of the budget, in thinking about government management. I believe that we should revise the present policy of compiling budgets on an annual basis and introduce, for example, a framework that would enable compilation of a budget extending over several fiscal years. What are your views in this regard?


FUKUI Teru (Liberal Democratic Party)

>> I believe that "establishment of the individual" is an essential prerequisite in the debate on local autonomy. In Iwate Prefecture, what direction is being taken with measures to promote "establishment of the individual"?

>> You spoke of the measures you are taking in Iwate Prefecture to utilize human resources, for example, seconding prefectural employees to municipal governments. While I recognize the importance of securing skilled workers as a resource, in light of my personal experience, I think that transferring personnel in this way alters individuals' own plans for their lives. In Iwate Prefecture, what measures have been taken with regard to the relationship between securing human resources and the life planning of individuals?

>> If larger regional units of government are promoted or a do-shu system is introduced, what do you think should be the role of regional branch offices of the national government?


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

ITO Kosuke (Liberal Democratic Party)

>> Today, the bloated size of the national government is a target of criticism, and various reforms are under way, such as review of the Japan Highway Public Corporation and cutbacks of national civil service personnel. But is it not true that local governments are also bloated? As the fiscal situation will become increasingly difficult in future due to the aging of the population and related trends, we must adopt a new approach at both the national and the local levels, cutting back wherever possible on conventional expenditures, and then taking new initiatives on that basis.


KANEKO Tetsuo (Social Democratic Party)

>> I agree that the bloating referred to by Mr. ITO needs to be dealt with decisively, but, in keeping with the "principle of local autonomy," should it not be our first priority to determine how to secure the autonomy of local governments and what powers and fiscal resources should be transferred to achieve that goal?


TANIKAWA Kazuo (Liberal Democratic Party)

>> The fiscal crisis we are experiencing at the local level is a phenomenon unique to Japan. I attribute it to the fact that the methods adopted in the era of rapid economic growth, when local governments were regarded as branch offices of the central government, and the central government led the way in promoting all kinds of projects, are no longer suited to the times. It has become necessary to rethink our vision of the nation and its ideal system of government.


FURUKAWA Motohisa (Democratic Party of Japan and Club of Independents)

>> We should study whether it is necessary for government to remain responsible for every aspect of the public sector, as in the past. While smaller government is a good thing, the public sector must not be reduced. In future, in thinking about the ideal system of government as we endeavor to create a diverse society in which each region has its own distinctive features, I suggest that we should situate NPOs, NGOs, and similar organizations within that system as actors responsible for the public sector.


YAMAGUCHI Tomio (Japanese Communist Party)

>> Listening to Governor MASUDA, I was reminded of the importance of looking closely at what is actually being done in local government. Also, I agree with the Governor's point that there is scope for many possible approaches adapted to particular local conditions, as Chapter VIII of the Constitution lays down only the basics of local government, leaving the details to be provided for by law.

>> The situation regarding local self-government has changed greatly since the enactment of the Comprehensive Decentralization Law. I would like to consider the ideal form of local government in 21st century Japan from the following viewpoints: (a) how should roles be allocated between the national and local governments? (b) how can fiscal resources corresponding to the workload be guaranteed? (c) how can the way be opened for resident participation?


SAITO Tetsuo (New Komeito)

>> Listening to Governor MASUDA, I felt that we should examine whether some intermediate structure is needed between the national government and the basic units of local government, and, if so, what form it should take. For my part, I think that the prefectures as an intermediary have begun to show structural fatigue, and that we should consider the do-shu as a possible alternative. If we adopt this alternative, I believe that provision should be made in the Constitution for such matters as the status and powers of the do-shu.


NAKAYAMA Taro, Chairman of the Commission

>> I believe that, in thinking about economic issues today, even as members of local partnerships like the one being developed by the three prefectures of northern Tohoku, we must adopt an international perspective that goes as far as China. From that viewpoint, I would suggest that Japan has been slow in adapting to the borderless age, in which capital and technology move freely across prefectural and national boundaries. I would like us to discuss a vision for Japan ten years from now, asking ourselves what role the nation and the prefectures should play within the Asian region and the world.


FURUKAWA Motohisa (Democratic Party of Japan and Club of Independents)

>> As Chairman NAKAYAMA has suggested, in conducting debate in the central government and the Diet, we should seek a broad overview from the perspective of pursuing the national interest. For that reason, we should slim down the central government and reduce its role, adopting the standpoint of "regional sovereignty."

>> The question of what unit of regional government to adopt, including the possible introduction of the do-shu system, should be discussed in conjunction with the question of relocating the functions of the capital.

>> In thinking about the system of government, from the viewpoint of offering quick solutions to local problems, we should study the question of decentralizing not only the executive and legislative branches, but also the judiciary.