Dispute grows within Hatoyama Cabinet over postal reform

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TOKYO, March 25 Kyodo -
A dispute within the Cabinet of Prime Minister Yukio Hatoyama over a postal
reform proposal by postal minister Shizuka Kamei grew bitter Thursday, leading
Hatoyama to declare that proposed increases in the ceilings of postal savings
deposits and life insurance coverage are not final.
''The plan has been reported as if it is something that the government has
decided on, but we have not yet decided on the caps, among other matters,''
Hatoyama told reporters in the evening.
Kamei, minister in charge of banking and postal services, unveiled Wednesday
plans to double the ceiling of deposits at Japan Post Bank Co. to 20 million
yen per person and raise the life insurance coverage ceiling at Japan Post
Insurance Co. to 25 million yen from 13 million yen.
But other Cabinet ministers including national policy minister Yoshito Sengoku
are calling for reconsideration of the proposal or at least further discussions
within the Cabinet.
While calling Kamei's proposal a ''likely'' plan, Hatoyama admitted there had
not been any discussions among Cabinet members and that he has not given a
go-ahead for the plan despite Kamei's claim to the contrary.
Kamei, who leads the People's New Party, one of the two smaller coalition
partners of the ruling Democratic Party of Japan, told reporters Thursday that
his plan has already been fixed based on approval from the prime minister,
while also indicating he is ready to listen to opinions from anyone.
Kamei later said on Thursday night, ''I got the OK for everything (from the
premier).''
According to Hatoyama, he and Kamei talked over the phone Tuesday.
Kamei then released the plan Wednesday also after talks with Internal Affairs
and Communications Minister Kazuhiro Haraguchi the previous day.
Kamei, an outspoken political bigwig, has held strong sway over the Hatoyama
Cabinet since its launch in mid-September.
His postal reform plan is now causing a new headache for the already
beleaguered Cabinet. Kamei is looking to adopt a postal reform bill for
submission to the Diet in April for enactment into law in June.
Sengoku called for the proposed ceiling increases to be reconsidered, telling
reporters Thursday, ''It's a matter that involves the Cabinet as a whole. Open
discussions should be carried out on Japan Post Bank and Japan Post
Insurance.''
Sengoku expressed concern that the state-run Japan Post group would secure
funds from depositors to the disadvantage of private-sector banks. ''The
economy may shrink unless a mechanism is created to funnel funds to
private-sector companies and industries,'' he said.
Motohisa Furukawa, senior vice minister for economic and fiscal policy, said at
a press conference that the government should consider whether the postal
savings ceiling increase is advisable.
The ceiling increase could allow the postal system to expand funds for
government debt purchases, leading to the loss of public confidence in the
government's fiscal policy, Furukawa said.
It could also affect commercial banks' competitiveness vis-a-vis the state-run
postal system, he said.
Senior Vice Finance Minister Yoshihiko Noda agreed.
''The increase could put pressure on the operation of the private sector,'' he
said at a press conference. ''We have to be really careful about it.''
Furukawa also noted that the DPJ had a plan in 2005, when it was in opposition,
to downsize the financial division of the postal system.
Kamei left the Liberal Democratic Party, which is currently the largest
opposition party, in 2005 in protest at the postal privatization process
spearheaded by then Prime Minister Junichiro Koizumi of the LDP.
LDP President Sadakazu Tanigaki on Thursday criticized the squabbling in the
Hatoyama Cabinet, saying at a press conference it has ''only helped shed light
on Prime Minister Hatoyama's lack of leadership.''
He also dismissed Kamei's proposal as a mere campaign strategy to secure votes
from postal services-related workers.
==Kyodo
2010-03-25 23:20:26