2ND LD: Gov't skirts LDP demands in 1st talks on postal privatization

Japan Policy & Politics, Jan 31, 2005

TOKYO, Jan. 26 Kyodo

(EDS: CLARIFYING 8TH GRAF)

The government told the ruling Liberal Democratic Party that it will ''seriously consider'' the party's proposals concerning the government's planned legislation for postal privatization but stopped short of going into details when the two sides had their first negotiations over the matter Wednesday.

The talks thus failed to satisfy the LDP, most of whose members are opposed to the government's policy of privatizing Japan Post in April 2007 by splitting the public corporation into four business units, party lawmakers said.

The party proposals, made in December, include a request to oblige the privatized firms to offer not only mail delivery but also savings and life insurance services throughout Japan, so as to prevent closure of many post offices, particularly those in remote areas.

During Wednesday's talks, the government provided its response to the party proposals in the form of a document. The document mostly elaborated the government's privatization outline calling for ''more convenient'' postal services. The outline was adopted in September without LDP support.

LDP policy chief Kaoru Yosano told reporters after the meeting, ''It is important that the government adopts a stance of discussing rather than simply sticking to its basic policy.''

Separately in a press conference, Deputy Chief Cabinet Secretary Seiken Sugiura said from the government side that the day's meeting was only their first and the two sides will start ''serious discussions'' from now on.

In the document, the government stated its readiness to ''consider'' an LDP request that the planned bills require the nationwide network of post offices be maintained at the current level.

As for services to be provided at those offices, Prime Minister Junichiro Koizumi said at a House of Councillors plenary session Wednesday that, although the government does not plan to require the privatized entities to offer savings and insurance services on a nationwide scale, this will be guaranteed to some extent as they will be entrusted to the post offices network.

The government also reiterated in the document that its plan to split Japan Post into four business units is feasible, although it is one of its thorniest issues with the LDP.

On the status of Japan Post employees, it said it will consider ways to boost their morale and ensure their jobs are not threatened when their status changes from public servants to private workers.

Chief Cabinet Secretary Hiroyuki Hosoda, postal services privatization minister Heizo Takenaka and other related ministers represented the government in the meeting, while LDP participants included policy chief Yosano and Hiroyuki Sonoda, head of an LDP intraparty group in charge of postal reforms.

The government aims to submit bills in mid-March for passage during the ongoing Diet session so as to realize the planned 10-year privatization from April 2007 with four units run under a holding company.

The government plans to hold meetings with the LDP two or three times a week to draft the bills, government officials said.