Government Given Qualified Support for JT Sale Plan

Source from:  Tobacco Reporter 10/11/2011

Japan's second-largest opposition party is open to the government's selling some of its stake in Japan Tobacco Inc. to fund the rebuilding necessary in the wake of the March 11 earthquake and tsunami, according to a Bloomberg Businessweek story. "We can accept selling some JT stock for reconstruction as the potential asset value is high," Natsuo Yamaguchi, head of the New Komeito party, was quoted as saying. "But rapid sales of the entire stake should be debated cautiously to avoid confusion and damages to tobacco farmers and retailers." Yamaguchi added that his party favored reducing the government's share in JT to one-third. Prime Minister Yoshihiko Noda's cabinet has approved the Democratic Party of Japan's (DPoJ) plan to raise ¥9.2 trillion through temporary tax increases. And it has agreed to 'consider' selling the state's holding of just over 50 per cent in JT. Noda's DPoJ needs support from New Komeito and the main opposition Liberal Democratic Party (LDP) to get the funding plan and a ¥12 trillion disaster aid package through the parliament. But LDP lawmakers have expressed reservations about completely privatizing JT, saying it would reduce crop demand and hurt farmers. Enditem