Discussion among Parties on Political Reform Starts

Seven parties in the Diet had the first meeting for revision of Political Funds Control Act, which Shigeru Ishiba administration needs to deal with to keep public trust on the leadership of the Liberal Democratic Party (LDP). The key issue seems to be whether donation from private companies and organizations to the parties. While the opposition parties, except the Democratic Party for the People (DPP), demand complete abolition of the donation, the leading coalition defends the system as arguing it is necessary to promote politics. No prospect of reaching an agreement before the end of this year is seen so far. 

The LDP proposed its own idea on political reform. It included abolition of the policy activities fund of each party, which does not require reporting on what purpose the fund was spent, disclosure of allowance from the Diet to its members, and establishment of third-party organization to oversee treatment of political funds.

 

However, the LDP did not show any intention to abolish donations from private companies and organizations. The leading opposition party, Constitutional Democratic Party of Japan (CDPJ), insisted on abolishment of the donation, calling it the biggest talking point for political reform. Japan Innovation Party, Other opposition parties, Japan Communist Party and Reiwa Shinsengumi, also proposed terminating the donation, which consists of financial basis of the LDP.

 

One party independent from concerted efforts of the opposition parties was DPP. “We do not take a position that donation from companies is wrong and that from individuals is right,” reiterates the party. It is the same argument as what the LDP is making.

 

But it is a rhetorical argument. Who said that donation from individuals would be right? The point here is whether donations from private companies, which have been supporting for the LDP, should be allowed under current system. And there is an argument whether individual donations are always appropriate or not.

 

An undeniable truth is that the LDP can pass a bill of revised Political Funds Control Act, if it is able to achieve at least DPP’s approval on their idea. DPP is discussing tax reform with the LDP. A framework of discussing policies with the LDP has already been established. It would not be preferrable for the DPP to damage the relationship with the LDP by eroding LDP financial basis too much.

 

There is a possibility the LDP will accept some compromise on the treatment of donations. Mainichi Shimbun reportedthat the LDP was considering raising upper limit of donations from a company or an organization. Although a company can annually donate as much as 7.5–100 million yen according to the size of each business, the LDP is discussing to lower the threshold to 50 million yen.

 

The CDPJ proposed its own idea for the reform. It included introducing the donation of political organization, as a replacement of abolishing donation of companies and organizations. The DPP opposed the idea, arguing it would be making another loophole in political funds control.

 

While LDP proposed establishing the third-party organization in the Diet, its coalition partner, Komeito, opposed the idea, being afraid of loose check by lawmakers, and demanded it in the government for independence from the legislative branch. The discussion is diffusing, rather than converging.