TOKYO - NEW Japanese Prime Minister Taro Aso, his eyes on a snap poll, went on the offensive on Monday, pledging tax cuts, blasting the opposition for blocking policies and urging his rivals to help pass emergency economic steps.

Mr Aso also said his diplomatic priority was to strengthen ties with close ally Washington while working with China and other neighbours for regional stability, and called for extending a naval mission in support of US-led operations in Afghanistan.

Mr Aso, an outspoken nationalist who took office last week after his predecessor abruptly quit, is expected to call an early general election to try to break a stalemate created by a divided parliament, where the main opposition Democratic Party and its smaller allies control the upper house and can delay bills.

But his new cabinet was backfooted this weekend when his transport minister quit over a series of verbal gaffes after just four days in the job, giving the opposition fresh ammunition for an election already expected to be a close fight.

'From start to finish, the Democratic Party's stance was to put political manoeuvring first and the people's livelihoods second and third,' Mr Aso told the lower house in a prepared speech.

'The Democratic Party's motto is 'Politics is for the sake of protecting the people's livelihoods' ... To truly realise that aim, we must create rules to reach agreements,' he said.

'Is the Democratic Party prepared to do that? Or, by refusing to make decisions in this session of parliament and once again putting the people's livelihoods second, will it betray its own principles?'

Opposition parties delayed a number of key bills in the last session of parliament and twice rejected the government's pick for Bank of Japan governor, leaving the seat vacant for weeks.

Chief Cabinet Secretary Takeo Kawamura acknowledged that the speech appeared designed with an election in mind. 'It's a bit different from previous policy speeches, probably because of the election,' he told a news conference.

Budge in focus
Mr Aso, 68, pledged to implement temporary income tax cuts as emergency support for households struggling with an economic recession and high prices and said he would take extra steps if needed to deal with fallout from the US financial crisis.

He urged the opposition to help pass a 1.8 trillion yen (S$24 billion) economic package to help ease the pain of high energy and food prices. The steps, unveiled last month, include support for the elderly and credit guarantees for small firms.

'Once again, I ask the Democratic Party and other opposition parties for your cooperation in parliamentary affairs.'

Analysts and domestic media have said Aso could use a refusal by opposition parties to pass the extra budget quickly as an excuse to dissolve the lower house and call a snap poll.

Mr Aso said he would put priority on economic growth ahead of efforts to rein in Japan's bulging public debt, the worst among advanced countries at some 150 per cent of GDP, but added he would 'make efforts' to meet a target of balancing the budget by 2012.

'Without economic growth there can be no fiscal reform,' Mr Aso said. 'It is impossible.'

His stance has raised concerns among economists about a slowdown in efforts to slim down public debt.

Calling for a Japan that was both strong and cheerful, he also pledged to eradicate public anxiety about pensions and health care for Japan's fast-ageing population but stopped short of clarifying how to fund a creaking social welfare system.

Most economists say a rise in the 5 per cent consumption tax is inevitable, but politicians on both sides are wary of angering voters by spelling out their stance.

Mr Aso attacked the Democrats for opposing Japan's refuelling mission in the Indian Ocean in support of US-led operations in Afghanistan and questioned party leader Ichiro Ozawa's insistence on UN approval for overseas military missions.

A law to extend the naval refuelling mission expires in January. The government was forced to halt the operation for three months starting late last year after stalling by opposition parties over a previous bill to continue it.

'The exit from the fight against terrorism is by no means in sight,' Mr Aso said.

'At this time, Japan as a member of international society does not have the option to withdraw from such activities,' he said.

'Democratic Party, even so, do you think that is okay? I ask your views.' -- REUTERS