Postal savings cap to be reviewed if funds shift from banks: Kamei

FUKUOKA, March 29 Kyodo -
Postal reform minister Shizuka Kamei said Monday a new cap on postal savings at
the Japan Post group could be reviewed after legislation is implemented if a
fund shift from commercial banks actually occurs.
Kamei made the comments in connection with the outline he unveiled last week of
a bill aimed at scaling back the nation's postal privatization process, which
includes a plan to double the cap on postal savings at Japan Post Bank Co., the
banking unit of state-run Japan Post Holdings Co., to 20 million yen per
person.
After meeting with local finance industry leaders in Fukuoka City, including
chief executives of regional banks and credit unions, Kamei told reporters that
many of them voiced strong concerns about raising the limit on deposits that
would have an implicit repayment guarantee by the government.
Kamei, who is also in charge of financial affairs, said he told them the higher
ceiling could be reviewed depending on the amount of deposits that will be
shifted to Japan Post from commercial financial institutions.
Kamei's proposal has drawn strong opposition from commercial banks and has
caused a feud among members of the Cabinet of Prime Minister Yukio Hatoyama.
The situation could further cut into public support levels for the Hatoyama
Cabinet, which have fallen to about half of the 70 percent levels it enjoyed
just after being launched last September.
On a TV program over the weekend, the outspoken Kamei quarreled with Deputy
Prime Minister and Finance Minister Naoto Kan over the postal reform plan. Kan
said he had not been told in advance of any of the specific contents of Kamei's
proposal, while Kamei said he had told him and that Kan must have a problem
with his ears.
Hatoyama, president of the ruling Democratic Party of Japan, told reporters
Monday evening that ministers concerned will get together Tuesday to work out a
government plan based on the proposal compiled by Kamei along with Internal
Affairs and Communications Minister Kazuhiro Haraguchi.
''I don't think it takes that long, but not everything will be decided
tomorrow,'' Hatoyama said.
Kamei, who leads the tiny People's New Party, one of the DPJ's two coalition
partners, has aimed for a drastic review of the postal privatization process
former Prime Minister Junichiro Koizumi spearheaded when he led a Liberal
Democratic Party government.
==Kyodo