Nuclear Power and Fukushima Finances 3

Mutual Dependence & Mutual Profit


Over its 45-year lifespan, a nuclear power reactor will bring in about 121.5 billion yen (about $1.6 billion at 78 yen/dollar) in government subsidies to the prefecture and municipalities around its location. This funding system is deeply entwined in the region.


Among the Three Power Source Development Laws, the "Power Source Location Promotion Grants" effectively excluded prefecture governments. Host prefectures across Japan reacted against this and grants for power-exporting prefectures were established 10 years later in 1981. Fukushima Prefecture used these funds, for example, to buy land for the Soma Industrial Park and for residential planning in the Futaba area. Later, it bought research equipment for Koriyama's High Tech Plaza, built the Zyododaira Rest House on Mt. Bandai, and bought an IMAX projector for Koriyama's Big Palette Fukushima Hall.

Nonetheless, applications of these funds were still restricted. Funds could only be applied to "boxes," in other words, to building facilities. They could not be used for maintenance or administration. After persistent lobbying under the premise mutual dependence-mutual profit, this restriction was removed in 2003.

This relationship between electrical power and money followed strong wishes of the localities, and grew both in amount and uses. The central government's fear of spreading anti-nuclear sentiment also influenced this policy. The prefectures, municipalities and residents became strong beholding and lost their ability to develop without nuclear power as centerpiece.


Previous post in series: Nuclear Power and Fukushima Finances 2
Next post in series: Nuclear Power and Fukushima Finances 4


Note about series:


Fukushima Minpo is the oldest and most established newspaper in Fukushima Prefecture. The series of articles on which this post is based explores the financial side of being host to electric power plants. I am excerpting it for this blog because it is written by and for the people most affected by the Fukushima Daiichi accident. This perspective is rare, if not nonexistent, in English reporting about the accident.


Comments are welcome if they constructively add insight to the perspective of this series. Unless submitted by residents of Fukushima or people otherwise directly affected by the accident, advocacy comments will be deleted without acknowledgement.


Source:
Fukushima Minpo, 「【攻防　電力マネー3】地方は「交付金依存」　国、立地へ使途拡大, "[Offense & Defense: Electric Power Money 3] Region's 'Dependency on Grants', National Government Broadens Uses," 2011-12-22, http://www.minpo.jp/pub/topics/jishin2011/2011/12/post_2817.html, Accessed 2012-1-5