Draft definition limits private firms handling of direct mail

A draft definition made public by the posts ministry Wednesday limited the scope of mail private companies can handle under the planned deregulation of state-run postal services by excluding most direct mail from the category.

The Public Management, Home Affairs, Posts and Telecommunications Ministry showed the definition in a draft ministerial ordinance it submitted to the committee concerned at the House of Representatives.

The draft ordinance also showed that private firms will be required to set up a total of 99,000 mail boxes across the nation to be authorized as full-scale entrants into the service.

The draft was sent to the lower house commission following the submission by the government and coalition parties of a set of bills on postal service deregulation to the house.

Under the planned deregulation of the now state-run mail service, private firms are to be allowed to handle certain types of mail such as packages, books, magazines and newspapers as well as other printed materials including catalogues.

Mail such as postcards, letters, bills and receipts are categorized in the types to be exclusively handled by a proposed public corporation for mail service and private entities that enter the service on a full-scale basis with government authorization.

But there are types of mail that fall into a gray zone between the two categories, such as direct mail, which accounts for about 25% of overall mail service at present.

Thus the government was urged to give a clear definition of the types of mail private companies can handle.

According to the draft definition, direct mail will mostly remain in the hands of the public corporation and authorized private companies.

Direct mail such as flyers whose messages are addressed to the general public, credit card mail and other items like merchandise coupons for the promotion of the local economy will be included in the types allowed for private companies.

At present, some private companies have announced their interest in entering the mail service on a limited scale.

But no companies plan to enter the service on full-scale basis. Initially interested companies, including Yamato Transport Co., abandoned their plans when they had found that the conditions for business qualification would be strict and less flexible than anticipated.

Given the draft definition, the scope of mail private companies will handle is likely to be limited, despite the purpose of Prime Minister Junichiro Koizumi’s principle of opening up the mail service to the private sector as much as possible.

AP-NY-07-03-02 0456EDT

FDMSKYviaNewsEdge

Copyright 2002 Federal Document Clearing House

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