STATEMENTS

Comment on the cabinet meeting's decision on the rationalization plan of public corporations

20 December, 2001

Tadayoshi KUSANO
General Secretary, RENGO

  1. The government approved the rationalization plan of public corporations at the cabinet meeting on 19 December 2002, which suggests privatizing 45 public corporations such as Japan Highway Public Corporation, and abolishing/amalgamating 17 corporations such as Housing Loan Corporation. However, the plan does not show standards, such as the role of public service, and postpones deliberations on contents of concrete services and their organizational structure. It roughly gives a priority to a structural change or unconditional abolishment/amalgamation.

  2. Rengo has demanded, through both ruling and opposition parties that the plan should review policies and services assigned to each public corporation, consult with a trade union concerned and take every possible measures to secure jobs for its employees.

  3. Concrete measures to deal with 7 corporations, which should be the first to be privatized, including Japan Highway Public Corporation and other three "road" corporations, is said to be determined by the end of the year 2002 on the assumption@of privatization. However, these corporations are faced with serious problems, such as huge debts and "the redemption term of 50 years". It was also determined that Housing Loan Corporation be abolished within 5 years and a new housing loan service will be determined when establishing a new organization. However, there is still a high demand for low-interest, long-term housing loan and there should be a public support to meet such demand. Eight governmental finance corporations, including National Life Finance Corporation, are said to be discussed by Council on Economic and Fiscal Policy (CEEP). However, the deadline for concousions have not been fixed.

  4. From the viewpoint of the stability and improvement in the life of the people, Rengo calls for clarification of the role of public services, reexamination of a governmental policy decision system, abolition of amakudari or the appointment of a former government official to a high position in a corporation, disposal of "family corporations" and disclosure of financial information. Rengo also calls the government to listen to voices of trade unions concerned, secure prior consultation with them and bear the responsibility of job security.

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