JAPAN'S FIVE YEAR ECONOMIC DEREGULATION PLAN:

'WELCOME, BUT COULD HAVE GONE FURTHER" - McMULLAN

The Minister for Trade, Senator Bob McMullan, today welcomed the announcement of Japan's five year deregulation plan, but said he was disappointed the plan was not as far-reaching as Australia had hoped.

"Japan had the opportunity to open its economy to greater competition and free business from the costly burden of red tape," Senator McMullan said.

"This would have been consistent with Japan's strong commitment to trade liberalisation in the multilateral context, and in APEC.

"Given the Japanese Government's stated commitment to the deregulation process, it is disappointing that the five year plan does not indicate a greater sense of urgency about the need for deregulation.

"A positive development in recent years in Japan is the increasing recognition of a need for economic reform and a lessening of government regulation in order to reduce the high costs faced by Japanese consumers and stimulate the Japanese economy.

"Australia welcomed the transparent way the Japanese government drew up its deregulation plan and appreciated the opportunity to make a submission containing Australian proposals for inclusion in the plan.

"This submission was made in early December 1994, and has since been followed up with representations by the Australian Embassy in Tokyo.

"Only a relatively small number of the sixty-nine specific requests contained in the Australian submission were seriously addressed in Japan's five year plan, but we accept that this is only the first step in a major process of change.

"We will encourage Japan to continue the process of deregulation, particularly in areas of direct interest to Australian business. We will also be seeking the resolution of more of our concerns in the revision of the five year plan, which is expected next year."

The Australian submission on deregulation was drawn up in close consultation with industry groups. The Government will be advising these groups of progress in their areas of specific interest in Japan's five year plan.

Further information: Senator McMullan's office - John Flannery, (06) 277 7420

DFAT - Steve Moran, (06) 261 3364