Postal reform just the start
(From The Japan Times Oct. 25 issue)

小泉政権の課題

    In the previous Diet session, the Lower House passed the postal reform bills by a margin of five votes and the Upper House killed them by a margin of 17 votes. A mere two months later, a vastly different picture has emerged in the current Diet session, testifying to the strong power base Mr. Koizumi gained through his overwhelming victory in the Sept. 11 snap elections. The Lower House passed the bills by a margin of 200 votes and the Upper House by a margin of 34 votes. The Diet members who changed their minds over the bills before and after the elections face criticism for their opportunism. The Upper House's decisions before and after the elections differed even though the composition of the Upper House has remained virtually the same, raising questions regarding its trustworthiness in its relations with voters and its stability as a legislative body.

    Although the enactment of the postal reform laws is a dream come true for Mr. Koizumi, the legislation will not necessarily lead to complete operational freedom for the companies that emerge from the privatization of Japan Post. In October 2007, half a year later than the original bills envisaged, Japan Post will be divided into four firms — mail, savings, insurance and network operations — that are placed under a holding company. By the end of September 2017, the holding company will dispose of its shares in the savings and insurance companies. But it can buy them back. The government will possess at least one-third of the shares of the holding company. The network operation company can also buy shares in the savings and insurance companies.

    The government hopes that some of the ¥330 trillion in postal savings and insurance will find its way into the private financial market, helping to stimulate the economy. Depriving the postal workers of their status as public servants, meanwhile, is supposed to contribute to the realization of small government. Revisions to the laws may become necessary if the huge savings and insurance companies suppress business opportunities for other financial companies, and if post office closures in depopulated areas inconvenience local residents.

    After the passage of the postal reform bills, one issue after another waits to be addressed — reform of the eight government-affiliated financial institutions, reduction of the nation's medical spending, integration of different pension systems, abolition of some government subsidiaries and a transfer of money from the central government to local governments, reductions in the number of public servants and a transfer of revenues from special-purpose taxes for road improvements to a general account. Resistance from bureaucracy and vested interests is expected as discussions deepen to touch on the details of each issue.

    Such resistance has surfaced already in the issue of abolition of government subsidies. The government wants to reduce such subsidies by ¥4 trillion and free up ¥3 trillion for use by local governments. Decisions have been made on the transfer of ¥2.4 trillion. The focus is now on a reduction of subsidies that match the remaining ¥600 billion. Six associations composed of people linked to local government operations, including governors, have proposed a reduction of ¥1 trillion in subsidies. But the government ministries concerned have replied that they will not reduce any subsidy in question.

    Mr. Koizumi will have to exercise his leadership. But at the same time, he must be careful and avoid excesses. He is calling for reductions in the number of public servants at the central and local governments by 20 percent in 10 years. Utmost care should be taken to avoid a deterioration in services carried out by the public sector. If a drastic cut in personnel does not work, a drastic reduction in wages for public servants may be another solution — this is what many private-sector workers have experienced. But higher taxes may also be necessary. Even so, reforms should be advanced in a manner that gives the people a strong sense of security for their future.

The Japan Times Weekly
Oct. 29, 2005
(C) All rights reserved

    前国会で衆院は郵政民営化関連法案を5票の差で可決したが、参院は17票の差で否決した。9・11総選挙における自民党圧勝後の今国会では、衆院200票、参院34票の差で同法案を可決した。

    この結果、日本郵政公社は07年10月に郵便事業、郵便貯金銀行、郵便保険、窓口ネットワークの4事業会社に分割され、各社は持ち株会社の傘下に入る。持ち株会社は17年9月までに郵便貯金銀行、郵便保険会社の全株を処分するが、株を買い戻すこともできる。政府は持ち株会社の3分の1以上の株を保有し、窓口ネットワーク会社は郵便貯金銀行、郵便保険会社の株を買うこともできる。

    政府は、330兆円にのぼる郵便貯金、郵便保険の資金が金融市場に還流して国内経済を活性化することを期待している。

    郵政民営化関連法案の国会成立後の重要課題として、政府系8金融機関の改革、医療費改革、年金制度の一元化、政府補助金の一部廃止、三位一体の改革、公務員の人員削減、道路特定財源の一般財源化などが挙げられる。

    政府は補助金を4兆円削減して、3兆円の税源を地方自治体に移譲することを目指している。すでに2兆4000億円の税源移譲が決まっており、残り6000億円の取り扱いが問題になっている。

    小泉首相は、これらの問題について極端な措置は避けるべきだ。首相は国家・地方公務員を10年間で20%削減することを提案しているが、行政サービスを低下させてはならない。大幅人員削減ができなければ、給与削減を検討すべきだ。増税も必要になるかもしれないが、改革は国民が安心する方向で進めるべきだ。