Japan Post share sales to be voted down

A bill to freeze the planned sale of government-owned shares in Japan Post Holdings Co. was headed Wednesday for defeat.

The bill was rejected Tuesday by a Lower House committee and faces another rejection in the chamber’s plenary session Thursday.

The bill was proposed by the Democratic Party of Japan and two smaller parties in the opposition camp, which controls the Upper House. But the bill is expected to be voted down by a majority vote in the ruling coalition-controlled Lower House.

It cleared the House of Councilors last December but was carried over to subsequent sessions for further deliberations in the Lower House.

While some LDP lawmakers had sought to compromise on the issue with the opposition by revising the bill, they dropped the idea partly because of resistance from those supporting postal privatization.

On Tuesday, several LDP members supporting postal reform, including former Prime Minister Junichiro Koizumi, formed a new group pressing Prime Minister Taro Aso not to deviate from the current plan.

The 10-year process to privatise the postal services started in October 2007 when four companies were created under Japan Post Holdings.