Japanese Internal Affairs gain ‘greater say’ over Postal reform

Internal Affairs and Communications Minister Taro Aso is gaining a greater say in discussions between the government and the Liberal Democratic Party [LDP] over the privatization of the postal services. LDP members are complaining about the debate being promoted under the leadership of Postal Services Privatization Minister Heizo Takenaka. "He is conducting discussions all by himself, without taking into consideration the situation within the LDP," said a senior LDP official. It turned out that Aso volunteered to "serve as a mediator" between the LDP and the government. However, Aso, if he increases his stance of compromising with the party, may create an impression that Prime Minister Junichiro Koizumi's reform line has regressed. It seems likely that the power balance between Takenaka and Aso will have a subtle impact on the future of the postal service reform.

"The majority view within the LDP is that the Finance Ministry will not take all the profits from the sales of stocks after the postal privatization."

Internal Affairs and Communications Minister Taro Aso is gaining a greater say in discussions between the government and the Liberal Democratic Party [LDP] over the privatization of the postal services. LDP members are complaining about the debate being p

Referring to the mood within the LDP, Aso was quick to give a warning when Finance Minister Finance Minister Sadakazu Tanigaki explained about the "concept of establishing a fund" at a meeting with New Komeito on the night of 29 March.

The proposed concept is designed to use a portion of profits from selling stocks, including those of the postal savings bank, for establishing a fund, which will cover expenses needed for the maintenance of financial services [provided by privatized post offices]. Finance Minister Tanigaki said, "Since the profit from selling stocks will belong to the people, the fund should be limited to the minimum necessary." But many people in the LDP are saying that the scale of the fund should be expanded as much as possible." Aso spoke for the party without thinking that his remarks might create "discord among the cabinet ministers."

Reflecting the LDP's intent, Aso proposed at an unofficial meeting with the LDP on 19 March the idea [of including in the proposed postal reform bills] a "review clause," which can delay the full privatization of the postal services. Recently, he has been frequently holding talks with the prime minister after cabinet meetings or on other occasions. Aso is reportedly seeking progress in discussions [between the party and the government] while sounding out the prime minister's true intention.

In the background of Aso's gaining a greater say lies a backlash against Takenaka, mainly from the LDP upper house members. To the LDP, which does not approve of the government's fundamental policy, the presence of Takenaka, who appeals to the public for the privatization on the strength of the basic policy, has the effect of rubbing the party the wrong way. Many people are saying that "Takenaka's way of doing things will escalate the confusion," according to a senior LDP official.

Aso has been refraining from making in-depth remarks since last September, when the cabinet approved the fundamental policy. But some people are of the view that "Aso, anticipating that the coordination under Takenaka's leadership will face difficulties, has been looking for a chance to speak out," said someone concerned with the party. However, some people are taking the harsh view that "Aso will become a target of criticism if the privatization gets watered down following the government's hasty attempt to reach an agreement with the party," said a government official.