More on misuse of disaster money

October 28, 2012

Noda meets with Iwate gov. on funds

http://www.yomiuri.co.jp/dy/national/T121027001982.htm

MORIOKA (Jiji Press)--Facing mounting criticism that government funds for postdisaster reconstruction have been used for projects outside affected areas, Prime Minister Yoshihiko Noda stressed he will give the highest funding priority to those areas.

Meeting Saturday with Iwate Gov. Takuya Tasso in Morioka, Noda expressed his willingness to review allocation of the funds earmarked after the March 2011 earthquake and tsunami by examining how the money is actually used.

He is determined to deal with the budget allocation problem "under the policy of placing top priority on disaster-hit areas," Noda said.

In reply, Tasso said, "Reconstruction [of the disaster areas] will lead to the revival of Japan as a whole."

At the meeting, Noda explained new government measures to push forward reconstruction efforts, such as "group subsidies" to be provided from fiscal 2012 budget reserves to help damaged small and midsized companies restart operations.