Suga appointments hint at major reforms

Suga, who launched his Cabinet on Wednesday after being named prime minister, wants to demolish bureaucratic sectionalism, with the establishment of a new "digital agency" being the centerpiece of this plan.

On Wednesday afternoon, Suga called Takuya Hirai into the Prime Minister's Office and handed him a document outlining his job as the minister for digital reform. "Don't hold back in this task," Suga encouraged Hirai.

Establishing a digital agency is a key policy of the new administration. Hirai, who joined Dentsu Inc. and served as president of Nishinippon Broadcasting Co. before becoming a member of the House of Representatives, is known as one of the foremost experts on information technology within the Liberal Democratic Party. Hirai also has extensive personal connections with start-up business operators.

His advocacy of the necessity for a so-called digital transformation agency, which would promote the wider adoption of digital technologies, apparently caught Suga's eye.

In his previous post as chief cabinet secretary, Suga decided on a one-time payment of 100,000 yen ($960 U.S.) for every resident in Japan to alleviate the impact of the coronavirus pandemic. However, a spate of problems occurred with applications made using My Number social security and taxation identification cards, which gave Suga a stinging reminder that central government ministries and agencies had been tardy in adopting digital technology.

A proposal is being floated within the government that a digital agency might be set up as an external agency of the Cabinet Office. This agency would combine and centralize the Cabinet Secretariat's Information and Communications Technologies Comprehensive Strategy Office and relevant departments in the Internal Affairs and Communications Ministry and the Economy, Trade and Industry Ministry.

"This is a mission with no blueprint, so the prime minister told me just to give it everything I've got," Hirai said to reporters after his meeting with Suga.

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This agency plan is expected to face strong resistance because the affected ministries will have their budgets and authority cut. Suga has expectations Hirai will smash through any opposition - and he has similar expectations for Taro Kono, who was named minister for administrative and regulatory reform in the new Cabinet.

Kono's career has been dedicated to eradicating wasteful government spending and operations. After being appointed minister in charge of administrative reform by former Prime Minister Shinzo Abe in 2015, Kono pushed ahead with a review of administrative works and projects. He slashed about 100 billion yen ($9.6 million U.S.) from nuclear power-related budgets, as well as expenses in other areas. "He was scarier than the opposition parties," one bureaucrat admitted. Suga has been impressed by Kono's ability to shake things up.

However, Kono also created major ripples within the administration while he was defense minister. Kono led the decision to scrap deployment of the Aegis Ashore land-based missile defense system this year, but a perceived lack of prior consultation on this issue ruffled many feathers. Even so, Kono appeared undeterred. After his latest appointment, Kono told his close aides he will "eliminate all waste from everything." Some observers are concerned Kono could stir up further friction with his approach.

New Chief Cabinet Secretary Katsunobu Kato, who is responsible for calibrating the policies of government ministries and agencies, is regarded as a coordinator who leans towards the ministries' side. Despite this, Suga boasted to a close aide, "In the end, I should make those calls myself." This reflects Suga's pride in having the most experience in knocking holes in bureaucratic sectionalism and promoting regulatory reform.

Suga, who previously was internal affairs and communications minister, also has a deep attachment to the public administration of telecommunications and local autonomy. Newly appointed Internal Affairs and Communications Minister Ryota Takeda has had little to do with policy fields related to this ministry. When Suga telephoned Takeda on Tuesday evening to tap him for the position, Takeda's response was reportedly to blurt out, "What?"

Some in the LDP have expressed concern about Suga's approach.

"The prime minister might intend to take the initiative also on internal affairs ministry matters himself, but if he takes on too many jobs, it could cause confusion in the running of the administration," a former cabinet member said.