Report No.221201

NEWS

- Domestic -

The Cabinet Meeting Decides the Hone-Buto no Hoshin [strong bones policy] for Compilation of Fiscal 2006 Budget

On June 21, the Cabinet Meeting decide the Hone-Buto no Hoshin [strong bones policy] or "the Basic Policies for Economic and Fiscal Management and Structural Reform" that lays a framework for compiling the fiscal 2006 government budget, which had been drafted by the Council on Economic and Fiscal Policy chaired by prime minister Koizumi. For the agricultural sector, the strong bones policy sets out explicitly that the government should draft a basic plan for the promotion of food awareness education and that the related government ministries and agencies promote it in their concerted efforts based on the Basic Law for Food Awareness Education. The strong bones policy also stipultes that the following structural reform and other goals should be pursued to nurture strong and competitive agricultural, forestry and fisheries industries based on the new Basic Plan for Food, Agriculture and Rural Areas:

(i)	Non-product specific measures (for the stabilization of farming business of core farmers etc.) are to be made available only to farming business entities above certain size, for which a system that will be instituted is to be drafted in detail by the autumn of 2005 so that a bill could be submitted to the Diet (Japanese parliament) by the end of fiscal 2005. Also, a new entry into agriuclture by individuals and joint stock companies etc. is to be encouraged and the concentration of the use of farmland in the hands of farmers whose business management is efficient and stable is to be promoted.
(ii)	The functions of municipal level agricultural committees, which coordinates the use of farmland, is to be adjusted and their working relations with the relevant government bodies is to be strengthened so as to further promote efficient use of farmland.
(iii)	Competition amongst various agro-related service providers including JA agricultural cooperatives is to be promoted and reform of JA organizations should be promoted with a view to facilitating more rational and efficient distribution.
(iv)	Farming, forest and fishing villages are to be reivigorated by promoting symbiosis and exchange between rural and urban areas, preserving farming environment and natural resouces, by expanding the use of woods, securing of core workers in forestry business following after the measures to encourage "Green Employment" program, by renovation of fishery business, sustainable use of fishery resouces and encouraging young people to make new entry in fishing business.

Also included in the strong bones policy are the promotion of activities to expand exportation of agricultural, forest and fishery products, and science-based measures to secure food safety and consumers' trust on foods including countermeasures against BSE (bovine spongiform encephalopathy), reviewing of the food labeling standards, stronger measures to ensure safety of imported foods and so forth.

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