AJapanese government panel—Dispute ReconciliationCommittee for Nuclear Damage Compensation—in charge of compensation for people affected by thenuclear crisis at the Fukushima-ken (Fukushima Prefecture) Dai-ichi (Big One) nuclear facility is still not yet ready to hand out compensation to those displaced by the disaster.
While its recent second set of guidelines is a step in the proper direction, the committee has beencriticized for leaving important tasks undone.
The guidelinesadopted on May 31, 2011 will offer financial compensation for losses to the agricultural,fish and tourism industries because of actual and fear of radiation emitted by the nuclear facility. However, experts say it's not enough, noting that there are no guidelines in place to actually calculate compensationfor the tourism industry, though there are for fisheries and agriculture.
Although the panel will complete its guidelines by July 1, 2011, there are still concerns.
The panel said losses incurredby farmers due to harm to their products' image (consumers stopped purchasing food products suspected of being irradiated has caused numerous broken business deals... broken deals that should allow for compensation by TEPCO (Tokyo ElectricPower Company), the owner and operator of the Fukushima facility.
The panel's guidelines state that compensation covers cases: "in which it can be recognized as rational for an averageconsumer to have aversion [to products] due to concerns overradioactive contamination."
The compensation committee decidedthat all farm products for human consumption that were restricted fromFukushima-ken, Ibaraki-ken, Tochigi-ken and Gunma-ken, plus threemunicipalities in Chiba-ken would all be eligible for damagepayments, but that farm products from other areas were out of luck, and that lossesincurred in May or afterward would not be covered.
Previously in 1999 after an incident at JCO Co.'s nuclear fuel conversion facility inTokaimura, Ibaraki-ken, Japan did not restrictfarm shipments, but compensation schemes covered losses due toproducts' damaged images across the prefecture.
Because the 2011 nuclear disaster is far more serious and potentially more devastating financially, the panel's compensation target is too narrow.
In the JCO accident,evacuation instructions were issued for residents within 350 meters ofthe site for only three days--but at the time of this writing, the Fukushima nuclear facility is still emitting some radiation.
Some 15,000 rice farms and 3,400 vegetable farming households eligible forcompensation lie within 30 kilometers of the nuclear facility, and these farmers, because of their inability to sell their products need government compensation soon.
The panel's recent guidelines also managed to leave out Chiba-ken, which has upset farmers there. They feel that its farmers are also affected as they are no longer able to achieve a decent price for its goods because of their proximity to the nuclear facility.
Thepanel decided to recognize damage to the tourism industry caused byharm to the areas' image—but only in Fukushima-ken, saying lossesdue to cancellations and some other factors would be compensated. However, no specific criteria to determine paymentamounts were concocted as no one could determine to whatextent the losses were due to the nuclear accident. The panel felt that other factors thatcould have caused tourism cancellations, like: simple fear of the area, or a disruption of public transportation and other services due to the eartyhquake and tsunami on March 11, 2011.
The panel had considered providing different levels ofcompensation for psychological trauma according to where evacuees weresettled, such as public shelters or relatives' homes. But after Kanno Norio (surname first) mayor of Iitatemura-shi, Fukushima-ken, notes that how long peoplehave been evacuated should be more important than where they were sent,the panel decided not to include details on the scheme.
In theinterim guidelines expected to be out by July 2011, it is expected to offer rules denoting the range of compensation. However, at this time, the panelstill must determine if it should expand tourism losses out to other prefecture; as well as how to deal with damage to industrial producersbecause their products were believed to be contaminated and otherknotty issues.
Ibaraki Governor Hashimoto Masaru states that any losses caused by damage to a products' and places'image should be included in compensation schemes as long as the cause canbe established.
But other government officials have been cautiousabout setting generous limits, as the government would need to financeany compensation TEPCO is unable to shoulder.
"If everything wereeligible for compensation, even 100 trillion yen wouldn't be enough," asenior Finance Ministry official said.
Japan's government has said it intends to make psychological trauma and lossesdue to damage to products' images eligible for compensation. Butsome government officials have expressed concern that payouts may bedelayed due to rocky discussions at the compensation panel.
"Thegovernment intends to ask the panel to work quickly, and to providehelp, if necessary," reveals Chief Cabinet Secretary Edano Yukio. "The panel's guidelines will not be decidedpolitically, but will be devised objectively by third-partyexperts...Politics will not be involved in the process."
Observershave said the government's early announcement that it would providewide-ranging compensation was to show the public that politicians weretaking the initiative over bureaucrats. Some government officials,however, have grumbled about the process.
A senior official ofthe Education, Culture, Sports, Science and Technology Ministry, whichhas jurisdiction over the panel, said, "Politicians say, 'Do it,quickly,' but it's not easy to draw up guidelines that can anticipatepossible court cases."
TEPCO wants to limitthe amount of emergency compensation to be paid to victims of damagecaused by its ongoing nuclear crisis to ¥120 billion (approximately US/Cdn $1.4 billion) companysources said. This dollar/yen amount is equal to the amount ofcompensation that will be made by the government under the Law onCompensation for Nuclear Damage.
TEPCO's move reflects itsconcerns that the utility could run short of money if it agrees to payshort-term compensation at a time when the government has yet toestablish a framework for its assistance to the firm's reparationscheme.
Last week, TEPCO began making provisional compensationpayments to farmers and fishermen who have been told by authorities torestrict shipments of their products due to safety concerns overradiation. As well, the company also began accepting applicationsfor compensation from small and midsize companies that have been hithard by the crisis triggered by the March 11 earthquake and tsunami.These firms will receive up to ¥2.5 million yen (~US/Cdn $30,500).
By the end of the first day of issuing payments, TEPCO had already used about ¥47 billion (~US/Cdn $574,000,000) for provisional payments to evacuees of about 50,000 households. Whencompensation payments to businesses affected by the nuclear crisis moveinto full swing, the utility's funds are likely to run out.
Economy,Trade and Industry Minister Banri Kaieda said Tuesday the governmentaims to promptly submit legislation on the nuclear crisis-relatedcompensation to the Diet. However, the current Diet session isscheduled to close on June 22, and unless thesession is extended, submission of the legislation would be delayeduntil the extraordinary Diet session that is expected to be convened inAugust.
In light of this, some members of the government as wellas members of both ruling and opposition parties are now weighing anidea that would see the government advance the provisional compensationpayments. But such a measure also requires the government to formulatea bill.
With opposition parties preparing to file a no-confidencemotion against the administration of Prime Minister Kan Naoto,prospects for TEPCO's compensation payments remain uncertain.
And the people of Japan get further screwed.
While its recent second set of guidelines is a step in the proper direction, the committee has beencriticized for leaving important tasks undone.
The guidelinesadopted on May 31, 2011 will offer financial compensation for losses to the agricultural,fish and tourism industries because of actual and fear of radiation emitted by the nuclear facility. However, experts say it's not enough, noting that there are no guidelines in place to actually calculate compensationfor the tourism industry, though there are for fisheries and agriculture.
Although the panel will complete its guidelines by July 1, 2011, there are still concerns.
The panel said losses incurredby farmers due to harm to their products' image (consumers stopped purchasing food products suspected of being irradiated has caused numerous broken business deals... broken deals that should allow for compensation by TEPCO (Tokyo ElectricPower Company), the owner and operator of the Fukushima facility.
The panel's guidelines state that compensation covers cases: "in which it can be recognized as rational for an averageconsumer to have aversion [to products] due to concerns overradioactive contamination."
The compensation committee decidedthat all farm products for human consumption that were restricted fromFukushima-ken, Ibaraki-ken, Tochigi-ken and Gunma-ken, plus threemunicipalities in Chiba-ken would all be eligible for damagepayments, but that farm products from other areas were out of luck, and that lossesincurred in May or afterward would not be covered.
Previously in 1999 after an incident at JCO Co.'s nuclear fuel conversion facility inTokaimura, Ibaraki-ken, Japan did not restrictfarm shipments, but compensation schemes covered losses due toproducts' damaged images across the prefecture.
Because the 2011 nuclear disaster is far more serious and potentially more devastating financially, the panel's compensation target is too narrow.
In the JCO accident,evacuation instructions were issued for residents within 350 meters ofthe site for only three days--but at the time of this writing, the Fukushima nuclear facility is still emitting some radiation.
Some 15,000 rice farms and 3,400 vegetable farming households eligible forcompensation lie within 30 kilometers of the nuclear facility, and these farmers, because of their inability to sell their products need government compensation soon.
The panel's recent guidelines also managed to leave out Chiba-ken, which has upset farmers there. They feel that its farmers are also affected as they are no longer able to achieve a decent price for its goods because of their proximity to the nuclear facility.
Thepanel decided to recognize damage to the tourism industry caused byharm to the areas' image—but only in Fukushima-ken, saying lossesdue to cancellations and some other factors would be compensated. However, no specific criteria to determine paymentamounts were concocted as no one could determine to whatextent the losses were due to the nuclear accident. The panel felt that other factors thatcould have caused tourism cancellations, like: simple fear of the area, or a disruption of public transportation and other services due to the eartyhquake and tsunami on March 11, 2011.
The panel had considered providing different levels ofcompensation for psychological trauma according to where evacuees weresettled, such as public shelters or relatives' homes. But after Kanno Norio (surname first) mayor of Iitatemura-shi, Fukushima-ken, notes that how long peoplehave been evacuated should be more important than where they were sent,the panel decided not to include details on the scheme.
In theinterim guidelines expected to be out by July 2011, it is expected to offer rules denoting the range of compensation. However, at this time, the panelstill must determine if it should expand tourism losses out to other prefecture; as well as how to deal with damage to industrial producersbecause their products were believed to be contaminated and otherknotty issues.
Ibaraki Governor Hashimoto Masaru states that any losses caused by damage to a products' and places'image should be included in compensation schemes as long as the cause canbe established.
But other government officials have been cautiousabout setting generous limits, as the government would need to financeany compensation TEPCO is unable to shoulder.
"If everything wereeligible for compensation, even 100 trillion yen wouldn't be enough," asenior Finance Ministry official said.
Japan's government has said it intends to make psychological trauma and lossesdue to damage to products' images eligible for compensation. Butsome government officials have expressed concern that payouts may bedelayed due to rocky discussions at the compensation panel.
"Thegovernment intends to ask the panel to work quickly, and to providehelp, if necessary," reveals Chief Cabinet Secretary Edano Yukio. "The panel's guidelines will not be decidedpolitically, but will be devised objectively by third-partyexperts...Politics will not be involved in the process."
Observershave said the government's early announcement that it would providewide-ranging compensation was to show the public that politicians weretaking the initiative over bureaucrats. Some government officials,however, have grumbled about the process.
A senior official ofthe Education, Culture, Sports, Science and Technology Ministry, whichhas jurisdiction over the panel, said, "Politicians say, 'Do it,quickly,' but it's not easy to draw up guidelines that can anticipatepossible court cases."
TEPCO wants to limitthe amount of emergency compensation to be paid to victims of damagecaused by its ongoing nuclear crisis to ¥120 billion (approximately US/Cdn $1.4 billion) companysources said. This dollar/yen amount is equal to the amount ofcompensation that will be made by the government under the Law onCompensation for Nuclear Damage.
TEPCO's move reflects itsconcerns that the utility could run short of money if it agrees to payshort-term compensation at a time when the government has yet toestablish a framework for its assistance to the firm's reparationscheme.
Last week, TEPCO began making provisional compensationpayments to farmers and fishermen who have been told by authorities torestrict shipments of their products due to safety concerns overradiation. As well, the company also began accepting applicationsfor compensation from small and midsize companies that have been hithard by the crisis triggered by the March 11 earthquake and tsunami.These firms will receive up to ¥2.5 million yen (~US/Cdn $30,500).
By the end of the first day of issuing payments, TEPCO had already used about ¥47 billion (~US/Cdn $574,000,000) for provisional payments to evacuees of about 50,000 households. Whencompensation payments to businesses affected by the nuclear crisis moveinto full swing, the utility's funds are likely to run out.
Economy,Trade and Industry Minister Banri Kaieda said Tuesday the governmentaims to promptly submit legislation on the nuclear crisis-relatedcompensation to the Diet. However, the current Diet session isscheduled to close on June 22, and unless thesession is extended, submission of the legislation would be delayeduntil the extraordinary Diet session that is expected to be convened inAugust.
In light of this, some members of the government as wellas members of both ruling and opposition parties are now weighing anidea that would see the government advance the provisional compensationpayments. But such a measure also requires the government to formulatea bill.
With opposition parties preparing to file a no-confidencemotion against the administration of Prime Minister Kan Naoto,prospects for TEPCO's compensation payments remain uncertain.
And the people of Japan get further screwed.
