Hirano aims to allocate Y2 tril to disaster-hit areas to use as they see fit
TOKYO —
Disaster reconstruction minister Tatsuo Hirano says he wants to allocate 2 trillion yen from the third supplementary budget for disaster-hit regions to use as they see fit, rather than have the central government dictate how the money should be spent.
The government hopes to enter into negotiations with the opposition parties this week with the aim of passing the supplementary budget by late October or mid-November.
Hirano told a news conference that he has also asked municipalities around the country to rethink their disaster contingency plans and not depend on embankments and tsunami walls, Fuji TV reported.
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0
troyinjapan
Is this a good idea? Is so, please explain it to me. I am not too comfortable with the government just giving the money to local governments and allowing them to spend as they see fit. There needs to be a watchdog in place set up by the government to make sure that people don't get sticky fingers and then we have to read in six months how someone got their fingers caught in the proverbial cookie jar.
-1
some14some
only Y2 tri...? Maybe Hirano forgot to put one zero, should be Y20 tri.
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Christina O'Neill
OK ,2 trillion yen, that will do for starters, whats for afters?
0
zichi
¥2 trillion will only be about 1/10 of the total cost so I'm supposing the central government will be taking responsibility for how the other ¥18 trillion will be used? Local governments will have a better idea where the money will be the most effective?
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smithinjapan
zichi: "Local governments will have a better idea where the money will be the most effective?"
While the central government has no clue, I have no doubt, I'm not sure the local governments are any better. Worse is that it's easier for local governments to be in cahoots with bid-rigging firms, and I can see the funds being prioritized in terms of cozy ties instead of where the money SHOULD go.
1
zichi
smithinjapan,
There's always an element of risk when giving a fist full of dollars to anyone. I lived in Nagano four years before the start of the 1998 Winter Olympics when construction for the games was still going on. I stayed there for four years after the games.
All money needs to be accounted for. But left up to the central government it will take much longer to start the reconstruction, they are too busy with in-fighting. If they are fortunate enough to have good governors will help.
There will be local elections during the reconstruction period, including governors.
0
globalwatcher
Only 2 trillion yen? LOL.
This is a drop in bucket while actual cost of restration of Tohoku (domestic spending) has been estimated to 50 trillion yen by world economists.
Be bold and spend more while Yen has been appreciating too much too fast instead of selling yen in global currency market. I still do not understand Japan is not considering this option ( a Japanese version of QE).
1
shanabelle
If you let the elders decide...lots more ground golf parks....
0
JapanGal
As long as the cash does not go past Ozawa's office, it should get there.
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zichi
According to the central government's basic reconstruction plan released July 29, reconstruction costs will total at least ¥23 trillion over the coming decade.
-2
Jared Norman
the cash is most likely going to Ozawa's new $120 million place in Beverly Hills, he is already applying of asylum.
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globalwatcher
zichi, Japanese government figure is TOO conservative, the world economists have nothing to lose to tell the truth. They are estimating 50 trillion yen. I am not sure that includes to clean up Fukushima Nuke clean up costs.
0
troyinjapan
Let the local governments have the measly amount that is being allocated to help in reconstruction, but set up a system that monitors every yen that comes and goes. Let the locals decide where they are going to spend the money and then hand in there findings to an independent watchdog group of people to monitor them.
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globalwatcher
A great idea, troyinjapan.
J. governments and bureaucrats have been stealing tax payers money over decades and nobody even questioned their financial abuse. How do you do that?
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troyinjapan
To be honest, I would use the same group of tax attorneys that crawl up my backside every time I go to file my taxes at the ward office. Those guys are monsters and want to know what every yen I use is about in my business. Use those guys to check into everything that they are doing. Maybe you could even have them sequestered like a jury.
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