TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy Heizo Takenaka said structural reforms will go ahead as scheduled even after the terrorist attacks in the US. "Even after the terrorist attack, I don't think the schedule of structural reform will be changed," Takenaka told a regular press briefing. Prime Minister Junichiro Koizumi also reaffirmed at this morning's Cabinet meeting that the speed of reforms will not slow following the attacks, he said. Japan's economy has the potential to support global markets after the attack so it is important to proceed with structural reforms as planned, he cited Koizumi as saying. Takenaka said the government should urgently set up a social safety net and carry out stockmarket and financial system reforms, as well as structural measures to boost new employment, under its existing programme. "The creation of the safety net is the first priority in this programme and I expect that it will carry the largest weight in the overall budget," he said. Takenaka said the prime minister issued orders to create an employment safety net, including vocational training, stockmarket and financial system reform, as well as the launch of the planned new capital-gains tax system. In addition, the government aims to introduce an annual check of bad debt conditions at the banks, compared with the current two year inspection system, with follow up investigations every six months. The government plans to normalise the bad debt problem after three years, as well as an expansion of the role of the Resolution and Collection Corp, which is currently involved in the recovery on non-performing loans. The prime minister also asked Cabinet members to ease restrictions in the six fields of medication, welfare, employment, education, the environment and urban development. Takenaka said he will attend the Bank of Japan policy board meeting scheduled for next week but he declined to provide details of what he plans to say. "Global markets may change after the opening of the New York market. I would like to consider what I will say after this," he said.