Koizumi Postpones Post Privatization Report

“Prime Minister Junichiro Koizumi told the head of his private advisory panel on postal privatization Tuesday he would not set a specific date for the panel to finalize a report on the issue, which initially had been scheduled to be submitted at the end of June, government officials said. The remarks of the prime minister, who is a strong advocate of the privatization of the three post office services of mail delivery, savings and insurance, effectively instructed the panel to postpone the finalization of its report. After calling economist Naoki Tanaka, the panel’s head, to the Prime Minister’s Office, Koizumi asked him to present several specific plans for privatizing the state-run Public Postal Corporation, to be established in April, that the public could understand, the officials said. The situation surrounding the postal privatization is seen to be worsening, with some Liberal Democratic Party members strongly opposed to a bill that sets conditions for private firms to start offering mail delivery services. In addition, Yamato Transport Co., Japan’s largest home delivery service firm, recently announced that it would not enter the mail delivery business even if the bill was passed into law. By postponing the finalization of the report, Koizumi seems to be altering his strategy for the privatization. The plans will include a proposal to privatize all sections of the Public Postal Corporation and another to privatize only some of the corporation’s businesses, the observers said. When the panel held its first meeting in June last year, it decided to finalize a report on the issue within a year.”