Prefectural gov't pressed to compensate loss of donations

October 29, 2013

Aomori municipalities ask prefecture to cover lost 'power industry money'

http://mainichi.jp/english/english/newsselect/news/20131029p2a00m0na007000c.html

AOMORI -- A group of municipal governments in Aomori Prefecture have petitioned the prefectural government for financial relief in place of donations that the power industry is going to discontinue from spring.

The group handed over the request to Aomori Gov. Shingo Mimura on Oct. 28. While the city of Aomori and 24 other municipalities in the prefecture have received donations from the power industry in return for hosting nuclear energy-related facilities, the donations are set to be terminated at the end of fiscal 2013 due to the deteriorating business environment of power companies in the aftermath of the Fukushima No. 1 Nuclear Power Plant disaster.

The massive donations were initiated in fiscal 1994 by the Federation of Electric Power Companies of Japan -- comprising 10 power companies -- and Japan Nuclear Fuel Ltd in return for Aomori Prefecture's hosting of nuclear fuel cycle facilities. The municipalities utilized the donated money in regional promotional projects such as local festivals and fireworks events. Over the past 20 years, a total amount of some 13 billion yen was paid to those municipalities, which was distributed by a public utility foundation. The donations were renewed every five years. Following the Great East Japan Earthquake, the donations totaled 1.37 billion yen in fiscal 2011 and 2012, respectively. Around 872 million yen is scheduled to be contributed to the municipalities this fiscal year.

On Oct. 28, Aomori Mayor Hiroshi Shikanai, chairman of a group of 10 mayors in the prefecture, and Itayanagi Town Mayor Ichiro Tateoka, chairman of a group of 30 towns and villages in the prefecture, visited Gov. Mimura and requested that a new support system be created in place of the donations. In response, the governor said, "I'm aware that prefecture-wide promotion is necessary. I take your request seriously, but will make a decision in a comprehensive manner while taking our financial status into account."

The power industry has made the donations to "show consideration" for the 25 municipalities, which are not eligible for the central government's subsidy system under the so-called three laws for hosting power plants. The Aomori Prefecture village of Rokkasho -- the host of the Rokkasho Reprocessing Plant -- and 14 other municipalities in the prefecture benefit from the subsidy system.

Commenting on the municipalities' request, one senior prefectural government official said, "We've been financially-strapped. I wonder if we can obtain understanding among prefectural residents."

Professor Shuji Shimizu at Fukushima University, who is versed in local finance issues in municipalities hosting nuclear plants, said, "The financial structure, in which municipalities complain about the termination of donations, is distorted and problematic in itself. I must say the prefectural government, which has promoted such a structure, deserves the outcome, where it is pressed to make up for the money."

Takeshi Fukui, a lecturer at Fukui Prefectural University, said, "Aomori Prefecture is burdened with exceptional circumstances as it also hosts nuclear fuel cycle facilities. Measures to ease the drastic changes are necessary."