Kishida kept five out of 19 ministerial-level officials in a reshuffle yesterday, while granting another five posts to those who previously served in the cabinet.
Energy supply tops the agenda. “We’ll thoroughly assess our options including the use of nuclear power,” Kishida told reporters yesterday, referring to his plans of restarting reactors to deal with a looming power crunch this winter.
Kishida chose Yasutoshi Nishimura as the new economy, trade and industry minister, who will be responsible for steering energy policy. Nishimura began his career at the ministry, and has served as minister in charge of economic and fiscal policy.
“The broad plan is to restart nuclear reactors that meet safety requirements,” Nishimura said yesterday.
Generally, a reserve electricity generating capacity of 3% is required to ensure a stable supply. But areas served by Tokyo Electric Power Co. Holdings and Tohoku Electric Power, which includes the greater capital region, are expected to have a 1.5% buffer in January. Those served by six other major utilities, including the cities of Nagoya, Kyoto and Osaka, are expected to have a buffer of 1.9%. The government aims to have nine nuclear reactors running this winter and to restart fossil fuel power plants to meet demand.
Japan currently has no plans to build new nuclear reactors. But a council under the ministry of economy, trade and industry has drafted a road map for developing fast reactors and other cutting-edge nuclear power technology. The government faces a difficult decision between public opinion, which turned against nuclear power after the 2011 Fukushima Daiichi disaster, and bolstering its electricity supply.
The supply of liquefied natural gas is a concern as well. Russia is moving to take control of the Sakhalin-2 oil and gas project since invading Ukraine, raising concern that LNG shipments to Japan could be severed.
In terms of Covid-19, Kishida said he will consider reclassifying the coronavirus under the infectious disease control law “within an appropriate window.”
Kishida has entrusted a team of three experienced cabinet members to lead the Covid-19 response. He chose Katsunobu Kato to lead the ministry of health, labor and welfare for a third time. Kato was also involved in the coronavirus response as chief cabinet secretary to former Prime Minister Yoshihide Suga.
The coronavirus is currently designated in the second-most serious category of infectious diseases out of five in Japan. Some have advocated for moving the virus into the least serious category, like the seasonal flu, allowing the government to scale back its response and reduce assistance for medical care.
The government is expected to soon decide whether to continue requiring all cases to be reported to health authorities. With fewer patients experiencing severe symptoms, there is debate on whether to prioritise curbing the spread or reopening the economy.
Daishiro Yamagiwa retained his post as minister of state for economic and fiscal policy to oversee special legislation governing coronavirus-related measures, while Hirokazu Matsuno stayed on as both chief cabinet secretary and minister in charge of promoting vaccines.
Inflation is another pressing concern. In addition to Yamagiwa, Kishida kept Shunichi Suzuki as finance minister to handle budgetary requests for fiscal 2023 to be submitted by government ministries and agencies in late August, as well as a possible supplementary budget for fiscal 2022.
These economic officials will be asked to flesh out Kishida’s vision for a “new capitalism” by the end of the year. A plan compiled in June included an initiative to double capital income in Japan, through such initiatives as encouraging individuals to invest savings.
Shoring up Japan’s defence, framed as a “top priority” by Kishida, will also require swift action. The government is set to update defence policy documents, outline plans to increase defence spending and prepare for a crisis in the Taiwan Strait by the end of the year.
New defence minister Yasukazu Hamada also held the post during North Korea’s missile tests in 2009, when he ordered the Self-Defense Forces to shoot down any missiles that might fall on Japanese territory. In addition to his experience with a real-life crisis, he holds clout within the LDP on national security issues.
Though Nobuo Kishi, who enjoys support from the LDP’s conservative wing, stepped down as defence minister for health reasons, he will serve as a national security adviser to the prime minister. “It’s a sign of Kishida’s plan to bolster Japan’s defence,” a defence ministry official said.
Economic security minister Sanae Takaichi and Taro Kono, the digitisation minister, also have served in previous cabinets. Takaichi chaired the LDP’s policy research council before taking on her new role, and had called for bolstering legislation on economic security passed in May.
Kono promoted digitisation efforts as minister in charge of administrative reform under Suga. Kishida aims to push harder for digitisation in response to critics, who say such efforts have fallen to the wayside compared with Suga’s tenure.