The current Diet session will be asked to approve a supplementary fiscal 1999 budget and other legislation that would finance a package of job-creating measures and implement steps aimed at reviving Japan's industrial competitiveness, Chief Cabinet Secretary Hiromu Nonaka said Friday.

It was earlier believed the government would wait until the fall before submitting the package to an extraordinary session. But Prime Minister Keizo Obuchi now appears determined to act swiftly.

The estimated 500 billion yen emergency package, which targets more than 700,000 jobs, was adopted earlier in the day at a government task force meeting on industrial restructuring and employment, headed by Obuchi.

Speaking to reporters following the adoption of the package, Obuchi said the government must swiftly prepare a budget and legislation to implement the package.

"Once necessary figures for the emergency employment package come out, we will submit the budget to the Diet as early as possible for approval," he said.

Although government officials have not confirmed a possible extension of the current Diet session, which is slated to close Thursday, it is widely expected that the government will substantially extend the session.

Nonaka hinted that leaders of the government and the ruling parties will hold a meeting Monday to discuss the remaining Diet schedule and a possible extension.

Friday's scheme calls on the central and local governments to create more than 300,000 jobs by contracting public service projects to the private sector.

Of the remaining 400,000 in the target figure, some 150,000 would come from a government subsidy program that would pay companies in 15 fast-growing industries — such as the medical, welfare and telecommunications sectors — to hire midcareer workers who have lost their jobs.

The government also plans to increase its existing emergency job-creation fund, which subsidizes companies that hire middle-aged people forced out of work due to corporate restructuring.

The plan also hopes to encourage companies to restructure and strengthen their competitiveness, as well as to help small and medium-size companies and venture businesses.

The measures include the introduction of new laws that would allow stock swaps in buyouts, which would make it easier for companies to establish holding companies or to carry out mergers and acquisitions.

They also include a new bankruptcy law to make it easier for ailing companies to rebuild themselves. A so-called debt-for-equity system is also in the works to allow near-bankrupt corporate borrowers repay their debts by instead issuing new shares to their creditors.