Aso willing to review split-up of postal services

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TOKYO, Feb. 5 Kyodo -
Prime Minister Taro Aso said Thursday he is willing to review a planned
four-way split of Japan's postal services being considered under the postal
privatization initiatives launched by former Prime Minister Junichiro Koizumi.
Aso's remark comes ahead of a planned check in March by a government panel on
postal privatization on the progress of privatization as legislation for
privatizing the postal system stipulates that progress must be reviewed by the
end of March and every three years thereafter.
His remark also appears to reflect some opinions within his ruling Liberal
Democratic Party that areas such as unifying mail-delivery and over-the-counter
services be reviewed in order to improve services and management.
''I suppose it is time to review once again whether splitting (the postal
services) into four (companies) is really good in terms of efficiency,'' Aso
told a House of Representatives Budget Committee session.
''After they are privatized, a system which does not make profits won't
work...I think it is right to say we will improve it rather than review it,''
Aso said.
Aso, who was internal affairs and communications minister in the Koizumi
administration, said he was not in favor of postal privatization, although he
eventually approved it as a member of the Cabinet.
Regarding the government's economic management in the future, Aso expressed his
intention to ''break away from market economy fundamentalism,'' in responding
to a question linked to structural reforms pursued by Koizumi.
Chief Cabinet Secretary Takeo Kawamura told a news conference that the
privatization ''needs to go in a way that is beneficial,'' adding he thinks Aso
is trying to ''elevate the reforms.''
The top government spokesman added that there is no way the postal services
will come under state control again.
Meanwhile, Internal Affairs and Communications Minister Kunio Hatoyama said at
the budget committee session that any kind of review is possible as long as it
is not meant to rescind the privatization process.
Aso later told reporters that the government's committee is considering
reviewing the postal privatization process and he is in a position to receive
recommendations from the panel.
''I'm not in a position to say what to do in terms of the content,'' he said.
The government started a 10-year postal privatization process in October 2007
by creating Japan Post as the holding company of four business units.
The holding company, which is wholly owned by the government, is scheduled to
gradually reduce its stakes in two of the four companies -- Japan Post Bank and
Japan Post Insurance Co. -- to zero by September 2017, according to legislation
for postal privatization.
In November last year, Aso expressed his intention to review the postal
privatization plan and the LDP has set up a project team to study the matter.
==Kyodo
2009-02-05 21:29:57