LDP sets Sept deadline for Japan postal reforms plan

The Liberal Democratic Party–in a move seen as a switchover from strong skepticism to a more conciliatory outlook toward Prime Minister Junichiro Koizumi's postal services privatization initiative–decided Monday to draw up its own privatization plans for the services by the end of September.

The move apparently is in line with government plans to work out a draft program on the specifics of privatizing the postal services by the end of September.

Fukushiro Nukaga, chairman of the LDP's Policy Research Council, said in a program broadcast Monday on NHK, "Our party will launch full-scale discussions (on postal services privatization) in August to single out major problems relevant to the issue, and draw up a framework proposal in September."

Due to the many party members strongly opposed to having the postal services go private, the LDP leadership earlier planned to hold intensive debates on the government plans in an extraordinary session of the Diet to be convened in late September.

The Koizumi administration is considering privatizing Japan Post–the public corporation in charge of three major duties of mail delivery, postal savings and postal life insurance–over five to 10 years from 2007.

In an apparent preemptive strike against LDP forces opposed to the privatization, Koizumi declared on July 22 his intention to appoint candidates "with a willingness to cooperate with my postal services privatization plans" in a planned September reshuffle of the Cabinet and party executive personnel.

Koizumi also is LDP president.

LDP senior members, in light of Koizumi's resolve to give priority in the coming Cabinet and party personnel changes to candidates willing to help him push through the privatization, have concluded it would be advisable to hold debates on the matter in accordance with the government timetable, party sources said.

Based on the party's policy changeover, the LDP will hold a meeting of its special panel on postal services reform in early August to summarize key discussion points concerning postal services privatization, they said.

The LDP will then hold a series of hearings with local government representatives to ensure their views are reflected in the planned reform proposals, according to the sources.

High on the agenda in the discussions will be:

— How to maintain the network of post offices throughout the country.

— What portion of funds collected from the public in the forms of postal savings and postal life insurance premiums, which total more than 350 trillion yen, should be used for private-sector lending activities.

— What steps should be taken to reduce the portion of the postal savings and postal life insurance funds used for purchasing government bonds.

Regarding the nationwide post office network, Nukaga said on NHK, "The existing system of postal services designed to provide services of the same quality at uniform rates should be kept intact (even after the privatization)."

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Preparatory panel lineup set

One staff member was added to the government's preparatory body for the privatization of the postal services Monday, bringing the body to full strength of 83 personnel.

The last staffer of the Cabinet Secretariat's Office for Privatization of Japan Post is on loan from East Japan Railway Co., officials said.

Of the 83, 15 were plucked from the private sector in line with Koizumi's instruction to employ as many private-sector people as possible, they said.

The 15 mainly are from the distribution and banking businesses, the fields Japan Post will attempt to make inroads into after privatization.

The privatization preparatory body was launched in April with 23 staffers. They have been joined by 60 others to make preparations for drafting a set of bills for the postal services privatization.

The secretariat officials said the members from the private sector were selected on the basis of three criteria:

— Having 10 or more years experience working at a private company.

— Having the mental and physical strength to endure hard work.

— Having creativity and flexible thinking.

The 15 are all men in their early 30s who have been loaned out by their respective companies as part-time employees of the central government, the officials said.

Copyright 2004 The Daily Yomiuri