Privatization of mailing service eyed in step-by-step manner (Japan)

KYODO NEWS INTERNATIONAL 28th October 2001
PRIVATIZATION OF MAILING SERVICEEYED IN STEP-BY-STEP MANNER

TOKYO, Oct. 28 (Kyodo) _ The Ministry of Public Management, Home Affairs, Posts and Telecommunications plans to open the mailing service to private businesses in a step-by-step manner in fiscal 2003 when a new public entity is to take over the state-run postal service, ministry officials said Sunday.

At present, the Postal Services Agency monopolizes the mailing service, drawing strong calls from parcel delivery firms and other businesses to open the service to the private sector.

The ministry plans to hammer out a specific timetable for the privatization of the mailing service by the end of this year so that it can be incorporated in a bill to create the public entity to an ordinary Diet session starting in January, the officials said.

The ministry wants to initially limit the opening of the mailing service, fearing it could undermine the financial health of the public entity as the loss-making mailing service depends heavily on direct mailing for earnings, they said.

The privatization of the postal service is one of key reforms initiated by Prime Minister Junichiro Koizumi under his slogan, “Everything that can be done by the private sector should be open.”