The government will postpone a decision on the IR Basic Policy until after July, the Nikkei reports. However, the Nikkei does not reveal its source and there has been no confirmation as yet from the government itself.
The government’s basic policy was initially scheduled for January of this year, but has been delayed for almost six months due to the IR bribery scandal and COVID-19.
The Basic Policy will be based on the IR Development Act and by law must have an effective date “within a range exceeding no more than two years from the date of promulgation” (the act was promulgated on 26 July 2018). In other words, the policy must be decided and published by 26 July 2020.
According to a report in the Nikkei on Thursday, “There is strong opposition to a casino stemming from concerns about gambling addiction. A government official involved in IR said, ‘There will be great public opposition if we rush through IR preparations during the COVID-19 pandemic.’ ”
On 26 May, the government responded to a document titled, “Written questions regarding priority being given to COVID-19 measures and regarding whether IR casino work should be abandoned,” submitted by Yuki Waseda, a member of the House of Representatives.
To the question, “[In view of the impact of COVID-19] should the IR promotion process, including the postponement of the certification application period, be fundamentally reviewed and consideration given to abandoning promotion of IR casinos in Japan?” the administration responded, “At this point, we have not received any request from the prefectures to change said period,” and made it clear there will be no changes. Changing the application period would require new legislation and they may want to avoid unnecessary trouble in a time of crisis.
This year’s regular Diet sessions ends 17 June, with the intention of focusing on COVID-19 for the remaining part of the month. However, if only the Basic Policy is postponed with the central government application period (4 January to 30 July 2021) left unchanged, the burden for local governments looking to apply will continue to increase.
The central government maintains it won’t change the application period without a request from local governments, but it seems that would be a sensitive issue for local governments and businesses to bring up.
Local governments who are ahead on this project risk losing their lead through a delay, Tokyo’s potential entry into the IR race following its gubernatorial election in July or even a resumption of Hokkaido’s interest after previously dropping out of the race. All of these possibilities could be on the cards.
The government is treading carefully on its path towards IRs. There is no room for mistakes in this phase and in an economy ravaged by COVID-19.
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