While the Japanese as a whole have generally been conservative in regards technology adoption and use, this recommendation by prefectural government of Aichi is asinine in the most descriptive sense.
If exorbitant costs of upgrading to newer Windows OS, which would most certainly required newer hardware purchases is not possible, why can't these people consider a wholesale move to Linux as was done very successfully by the cities of Munich, Germany, Vienna, Austria and several other municipalities and even large countries' governments.
After all, very careful evaluations and studies by those migrating to Linux have shown that Windows 7/8 upgrade is not only ridiculously costly without any appreciable productivity gains, but also provide very little additional security functionality over that which Aich has presently.
Not jumping into the latest technology trends is one thing, but mired mentally in the nineteenth century in regard lack of common sense and innovative thinking is something else all together.