Japan PM vows more economic measures in key speech

Japanese Prime Minister Taro Aso smiles at Lower House of Parliament in Tokyo, AP – Japanese Prime Minister Taro Aso smiles at Lower House of Parliament in Tokyo, Japan, Tuesday, Jan. 27, …

TOKYO – The Japanese prime minister vowed Wednesday to create 1.6 million jobs over the next three years and take other steps to pull Japan out of its economic crisis, as his opponents seek to thwart him in Parliament and force elections to test his public mandate.

Prime Minister Taro Aso's new proposal on jobs was aimed at easing the impact of massive job cuts announced by companies including big names such as Toyota Motor Corp. and Sony Corp., as he mapped out key measures in a major policy speech at the lower house of parliament.

He promised to create 1.6 million jobs over the coming three years by encouraging workers to enter growing areas, such as nursing care, while turning temporary positions into full-time jobs to give more workers job security and benefits.

Aso, who has seen his public support ratings nosedive since taking office in late September, has pumped out a series of stimulus measures worth 75 trillion yen ($842.7 billion).

He also vowed to make basic tax reforms, including a consumption tax increase, by fiscal 2011 as part of government measures to turn around the economy.

Aso's speech comes the day after his ruling Liberal Democratic Party rammed through a contentious extra budget of 4.8 trillion yen ($54 billion) after hours of wrangling with the opposition bloc.

Aso hopes the budget, the second in a series, will spur consumer spending and garner support for his embattled government, but his administration continues to teeter. His administration now plans to pass the main fiscal 2009 budget — totaling a record 88.5 trillion yen — by the end of March, prompting political wrangling over the possibility of national elections.

A dispute over an unpopular 2 trillion yen ($22.5 billion) cash payout plan, widely panned as a lavish waste of money, also highlighted a rift in the ruling party and led a senior party member to quit in a high-profile embarrassment to Aso.

Opposition leaders have balked at Aso's planned cash handouts and other economic measures as attempts to buy votes. They demand that Aso quickly call elections and test his mandate. Elections can be held at any time, but must take place by September.

"He's hopeless," Social Democratic Party leader Mizuho Fukushima said of Aso. "It was totally an empty, laid-back speech when he should be alarmed by growing calls for his resignation. We'll drive him into a corner so he would have to call elections promptly."

The embattled Aso also has repeatedly come under fire for gaffes and a lack of leadership during the global economic crisis. His approval rating has plunged to about 20 percent since taking office late September.

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