ID :
113300
Thu, 03/25/2010 - 06:03
Auther :
Shortlink :
https://www.oananews.org//node/113300
The shortlink copeid
Gov`t plan to change postal services backpedals from full privatization+
TOKYO, March 24 Kyodo -
Postal reform minister Shizuka Kamei revealed Wednesday an outline of a postal
reform bill under which the government would retain its grip on the state-run
postal financial system to some degree, stepping back from the full
privatization sought by previous governments.
Under Kamei's outline, the government would retain more than one-third of its
shares in Japan Post Holdings Co., and Japan Post's postal banking and
insurance units, in which the holding company would maintain stakes, could
raise the caps for deposits and insurance coverage.
Pending Cabinet and parliamentary approval, the plan will allow the Democratic
Party of Japan-led government, which took power last September from the
long-ruling Liberal Democratic Party, to overturn the postal privatization plan
spearheaded by former Prime Minister Junichiro Koizumi, the champion of
structural reforms for a more market-oriented economy.
Under the previous plan, Japan Post's financial units were to be fully released
from government control by September 2017.
The proposed changes have already drawn fierce criticism from commercial banks
and insurance companies, saying increasing the caps would trigger a flight of
funds to Japan Post that would be implicitly guaranteed by the government.
Prime Minister Yukio Hatoyama pointed out Wednesday evening that his Cabinet
had not yet endorsed the outline of the bill, suggesting that changes could
still be made.
The plan outlined by Kamei is ''competent,'' Hatoyama told reporters at his
office, but added, ''It has not been endorsed by the Cabinet yet.''
However, sources close to the matter said the plan would be altered in minor
ways but its framework would largely remain unchanged.
Outlining the proposed details of a government bill to change the postal
privatization process, Kamei, who is also financial services minister, and
Internal Affairs and Communications Minister Kazuhiro Haraguchi said in a joint
statement that the bill would allow Japan Post's banking unit to accept
deposits up to 20 million yen per person, instead of the current limit of 10
million yen.
The bill would also raise the limit of postal insurance coverage from the
current 13 million yen to 25 million yen.
By holding a stake of more than one-third in Japan Post, the government would
have the power to veto any major management decisions at the holding company.
Kamei said, based on the proposed changes, a bill is planned to be submitted to
parliament in April.
Senior Vice Financial Services Minister Kohei Otsuka said Wednesday the hikes
in deposit and insurance coverage caps would be implemented after the bill
clears parliament, possibly in June, and the necessary organizational
realignment is expected around April 2012.
The government has planned to require that the Japan Post group offer uniform
banking and insurance services throughout the country, in addition to the
current requirement for uniform mail services.
''We made the bill's outline with the aim of ensuring that Japan Post will
sufficiently offer universal services throughout the nation,'' Kamei said.
Kamei has sought to give regular employment status to about 100,000 of the
Japan Post group's approximately 200,000 nonregular workers, saying it is
necessary to stabilize their employment.
To realize this, however, a major issue for Japan Post has been how to
strengthen its earnings to cope with an expected increase in personnel costs.
Japan Post currently owns four units that operate mail delivery services,
manage the nationwide post office network, and provide banking services and
insurance schemes.
As part of its review of postal privatization, the latest plan seeks to realign
the group's structure by integrating the holding company, mail and parcel
delivery unit Japan Post Service Co. and post office operator Japan Post
Network Co.
The group's banking and insurance units -- Japan Post Bank Co. and Japan Post
Insurance Co. -- would be brought under the wing of the newly merged company
and stakes of more than a third in the two units would be held by the parent
company, according to the plan.
The government would maintain part of an earlier plan to have the state hold a
stake of more than one-third in Japan Post. The government would have the
holding company and its banking and insurance units go public in the future,
but the timing of the listing is yet to be decided.
==Kyodo
Postal reform minister Shizuka Kamei revealed Wednesday an outline of a postal
reform bill under which the government would retain its grip on the state-run
postal financial system to some degree, stepping back from the full
privatization sought by previous governments.
Under Kamei's outline, the government would retain more than one-third of its
shares in Japan Post Holdings Co., and Japan Post's postal banking and
insurance units, in which the holding company would maintain stakes, could
raise the caps for deposits and insurance coverage.
Pending Cabinet and parliamentary approval, the plan will allow the Democratic
Party of Japan-led government, which took power last September from the
long-ruling Liberal Democratic Party, to overturn the postal privatization plan
spearheaded by former Prime Minister Junichiro Koizumi, the champion of
structural reforms for a more market-oriented economy.
Under the previous plan, Japan Post's financial units were to be fully released
from government control by September 2017.
The proposed changes have already drawn fierce criticism from commercial banks
and insurance companies, saying increasing the caps would trigger a flight of
funds to Japan Post that would be implicitly guaranteed by the government.
Prime Minister Yukio Hatoyama pointed out Wednesday evening that his Cabinet
had not yet endorsed the outline of the bill, suggesting that changes could
still be made.
The plan outlined by Kamei is ''competent,'' Hatoyama told reporters at his
office, but added, ''It has not been endorsed by the Cabinet yet.''
However, sources close to the matter said the plan would be altered in minor
ways but its framework would largely remain unchanged.
Outlining the proposed details of a government bill to change the postal
privatization process, Kamei, who is also financial services minister, and
Internal Affairs and Communications Minister Kazuhiro Haraguchi said in a joint
statement that the bill would allow Japan Post's banking unit to accept
deposits up to 20 million yen per person, instead of the current limit of 10
million yen.
The bill would also raise the limit of postal insurance coverage from the
current 13 million yen to 25 million yen.
By holding a stake of more than one-third in Japan Post, the government would
have the power to veto any major management decisions at the holding company.
Kamei said, based on the proposed changes, a bill is planned to be submitted to
parliament in April.
Senior Vice Financial Services Minister Kohei Otsuka said Wednesday the hikes
in deposit and insurance coverage caps would be implemented after the bill
clears parliament, possibly in June, and the necessary organizational
realignment is expected around April 2012.
The government has planned to require that the Japan Post group offer uniform
banking and insurance services throughout the country, in addition to the
current requirement for uniform mail services.
''We made the bill's outline with the aim of ensuring that Japan Post will
sufficiently offer universal services throughout the nation,'' Kamei said.
Kamei has sought to give regular employment status to about 100,000 of the
Japan Post group's approximately 200,000 nonregular workers, saying it is
necessary to stabilize their employment.
To realize this, however, a major issue for Japan Post has been how to
strengthen its earnings to cope with an expected increase in personnel costs.
Japan Post currently owns four units that operate mail delivery services,
manage the nationwide post office network, and provide banking services and
insurance schemes.
As part of its review of postal privatization, the latest plan seeks to realign
the group's structure by integrating the holding company, mail and parcel
delivery unit Japan Post Service Co. and post office operator Japan Post
Network Co.
The group's banking and insurance units -- Japan Post Bank Co. and Japan Post
Insurance Co. -- would be brought under the wing of the newly merged company
and stakes of more than a third in the two units would be held by the parent
company, according to the plan.
The government would maintain part of an earlier plan to have the state hold a
stake of more than one-third in Japan Post. The government would have the
holding company and its banking and insurance units go public in the future,
but the timing of the listing is yet to be decided.
==Kyodo
