Localities favour (Japanese) postal privatization

Local government chiefs in favor of privatizing postal services outnumber those who oppose it, according to a recent survey by Kyodo News and its member newspaper publishers nationwide.
But the survey also showed a region-based disparity, with local government heads in urban areas supporting the planned privatization with the hope that costs will go down and services will improve and those in in rural areas opposing it on concerns of paying more to receive the same services.

According to the survey, 1,238 local government leaders, or 38.1 percent of those polled, are in favor of Prime Minister Junichiro Koizumi’s plan to privatize three postal service operations — mail, postal savings and insurance.

But 1,068, or 32.8 percent, said they are against such a move, while 914, or 28.1 percent, said they cannot respond positively or negatively.

The survey also showed that 51.8 percent of heads of local governments in Tokyo, Osaka and Nagoya — the three major urban areas in Japan — are in favor of privatizing the services, but 48.4 percent of chiefs of towns and villages with populations of less than 5,000 opposed the privatization.

Kyodo and its member newspapers conducted the survey in November and December by sending questionnaires to the chiefs of 3,293 municipalities. Of these, about 99 percent responded.

According to the survey, 61.8 percent of local government chiefs favoring privatization said they expect intensified competition that will bring about lower costs and better quality of customer and postal services.

About 43 percent said the privatization would promote reforms in postal savings and insurance services that are often criticized as providing finances to inefficient public corporations.

Of those opposing the privatization, 71.6 percent voiced concerns that the move would lead to higher costs and lower quality of customer and postal services.

Also, 58.8 percent said the privatization would force the closure of post offices in mountainous areas and remote islands.

The survey said these figures may become higher in municipalities with lower populations and a higher percentage of the elderly.

Prefectural governors and mayors of major cities refrained from giving a clear answer, with 70 percent indicating they cannot respond positively or negatively.

The Japan Times: Jan. 8, 2002