JAPAN GOVT PANEL TO STUDY PRIVATE DELIVERY OF MAIL

A study group set up by Posts Minister Toranosuke Katayama plans to examine opening up mail collection and delivery to private companies as it discusses the planned 2003 transformation of the post office into a public corporation.

The group held its first meeting Thursday. It decided that future meetings would debate whether the postal savings and insurance operations of the post office should be subject to inspection by financial authorities.

Currently, the delivery of mail addressed to specific individuals and corporations, including letters, direct mail, utility bills and items containing credit cards, is monopolized by the post office. The main focus of future discussions will be allowing private door-to-door parcel delivery firms to also handle letters.

Prime Minister Junichiro Koizumi is on record as saying, “What can be handled by the private sector should be left to the private sector.” Nobuya Minami, head of the study group and president of Tokyo Electric Power Co. (TSE:9501), said Thursday, “The government should handle areas that cannot be covered by the private sector.” To ensure fair competition with the private sector, the group will also discuss making the new postal corporation subject to corporate and other taxes and permitting it to invest in or tie up with foreign distribution companies.

Previously, the Posts Ministry has argued that it will not able to offset revenue declines brought about through restructuring if a wide range of postal operations are opened up to the private sector. It has also warned that it will be forced to raise postal charges in unprofitable, less populated areas.

The ministry is only likely to agree to open up the collection and delivery of letters above a certain weight to the private sector, when the corporation is established in 2003.

The study group will draw up specific proposals by December.

(Nikkei)

ASIA PULSE, 31st August 2001