East-run political campaign: The future of the Kansai Expo, where expenses are increasing. Who will pay for Osaka? Takenori Noguchi | Weekly Economist Online

2023-10-29 15:01:19

The future of the 2025 Osaka/Kansai Expo is becoming increasingly uncertain, and the ruling and opposition parties are already beginning to shift blame.

The cost of holding the event was around 200 billion yen (including 120 billion to 130 billion yen for venue construction and 69 to 74 billion yen for operating costs), the number of attendees was over 30 million, and the economic ripple effect was approximately 6.4 trillion yen. .

The basic concept draft presented by Osaka Prefecture in 2016 had rosy numbers. However, the weak outlook is being exposed one following another. Venue costs continue to rise, and construction of overseas pavilions is progressing slowly. The public’s interest in the event has not increased, and concerns are growing over ticket sales. At this rate, it may end up being just a calculation.

Venue construction costs doubled than expected

One of the most problematic issues is the increase in expenses. On the 20th, the organizers of the Japan World Expo Association announced that construction costs for the venue on the artificial island “Yumeshima” (Konohana Ward, Osaka City) floating in Osaka Bay are expected to rise to as much as 235 billion yen. .

In December 2020, the amount was raised to 185 billion yen, regarding 1.5 times the original estimate. At that time, heat countermeasures, water quality improvements, and plan changes were among the factors. Furthermore, this is the second increase due to factors such as the soaring cost of labor costs and construction materials, making the rate approximately double what was initially expected. The venue construction costs will be shared equally by the national government, Osaka prefecture/city, and the business community.

Governor Hirofumi Yoshimura of Osaka Prefecture (co-representative of the Nippon Ishin no Kai and representative of the Osaka Ishin no Kai), who came to Tokyo on October 6, met with Minister of Economy, Trade and Industry Yasutoshi Nishimura and others, and said, “As a local government, we are aware of the issues, and we are also working with the national government.” We would like to move forward together,” he said, requesting support. The government plans to include a portion of the country’s additional burden in the supplementary budget bill for fiscal 2023, which is likely to become a point of contention during the extraordinary Diet session in the fall.

At a press conference, Constitutional Democratic Party representative Kenta Izumi cited former Osaka City Mayor Ichiro Matsui (former Meiji Restoration representative) and Mr. Yoshimura, saying, “There were poor arrangements.If we simply accept the increase in expenses, the burden will be on the people.” It will increase,” he said. Secretary-General Katsuya Okada also said, “I want Osaka Prefecture and cities to hold this in place.”

In response, Ishin representative Nobuyuki Baba argues, “The Expo is a national event for Japan.It is only natural that the country should take the lead in bearing the burden.”

Prime Minister Fumio Kishida finally took action in September, but there is no sense of enthusiasm. There is a sense of caution within the Liberal Democratic Party, with some saying, “If they succeed, they will claim credit for the Restoration, but if they fail, they will shift the responsibility to the government and the Liberal Democratic Party.”

In the first place, it was Mr. Matsui and former Osaka Mayor Toru Hashimoto, who was a representative of the Meiji Restoration, who advocated hosting the World Expo. Since then, Mr. Yoshimura and others have made the success of the Expo an issue in their campaign promises and won.

However, it seems like a scene I’ve seen somewhere before, when people pretend to have a rosy future, only to find out that their plans have poor prospects.

Regarding the Osaka metropolitan plan, which was the signature policy of the Meiji Restoration, Messrs. Hashimoto and Matsui initially announced the following…

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