Tag: Asia

Prime Minister Junichiro Koizumi’s government sternly urged Parliament to approve legislation Tuesday to create the world’s largest bank by privatizing the sprawling state-run postal system, which handles trillions of yen (dollars) in savings and insurance deposits. The powerful lower house was scheduled to vote on the bills later Tuesday, amid infighting in the ruling Liberal Democratic Party that has pitted calls for reform to streamline the financial system against fears that privatization will reduce jobs and services. The vote was crucial for Koizumi, who has made the project the centerpiece of his government since winning re-election last year. Koizumi has argued that reform is needed to make more efficient use of Japan Post’s 330 trillion yen (USD3 trillion; EUR1.8 trillion) in savings and insurance deposits.

A set of bills to privatize Japan Post passed the House of Representatives ad hoc committee Monday on the strength of the ruling bloc, clearing the way for a vote at a lower house plenary session Tuesday. The six privatization bills and four bills to amend them cleared the Special Committee on Postal Privatization as the ruling Liberal Democratic Party and its coalition partner, the New Komeito party, supported it against opposition from the opposition camp. The ruling parties now aim to pass the bills through the full lower house on Tuesday before Prime Minister Junichiro Koizumi leaves for the summit of the Group of Eight nations to be held Wednesday through Friday in Scotland. Koizumi aims to pass the bills during the current Diet session through Aug. 13.