Govt council eyes boosting OTC services at post offices
The Council on Economic and Fiscal Policy resumed full-fledged debate on the privatization of the postal services, which Prime Minister Junichiro Koizumi considers the “centerpiece” of the structural reform he champions.
At the meeting, the council members agreed on the need to have a diverse range of over-the-counter services available at the nationwide network of post offices as a “fourth function,” in addition to the three current key services of mail delivery, postal savings and kampo life insurance.
Some members of the council called for the physical distribution service of mail delivery to be strengthened and developed into an international business.
Japan Post, created in 2003 as a public corporation to take over the state-run postal services from the governmental Postal Services Agency, is banned from conducting international business. The idea of allowing the entity to spread its wings abroad, particularly in Asia, may become a key future challenge for its top management.
Attendees at the Tuesday meeting included Japan Post President Masaharu Ikuta and economic commentator Naoki Tanaka, who previously chaired an advisory panel to the prime minister on the postal services.
While explaining the current situation surrounding Japan Post, Ikuta spelled out the idea of having the nationwide network of post offices act as “one-stop shops” in offering diverse services to local residents.
He also emphasized the need for Japan Post to launch overseas operations to strengthen its overall business.
As part of making diverse services available at post offices, Ikuta also sought the council members’ understanding of the need for his organization to launch OTC sales of investment trust products, a move opposed by private financial institutions.
Meanwhile, Tanaka pointed out the need from an investor’s viewpoint for further restructuring at Japan Post.
The council, which is chaired by the prime minister, is scheduled to discuss the privatization of the postal services once or twice every month and plans to compile an interim report in April.
However, the council plans to discuss the general principles first, according to Heizo Takenaka, state minister in charge of economic, fiscal and financial policy.
