2 August 2001, 08:10  Japan ministries voice opposition to Koizumi reform initiatives

TOKYO (AFX-ASIA) - Government ministries voiced their staunch opposition to Prime Minister Junichiro Koizumi's plan to slash fiscal spending by 1 trln yen by revamping public corporations, the Nihon Keizai newspaper reported. The relevant government ministries and agencies all argued for the continuation of programs that the reform task force has proposed cancelling, citing reasons such as public well-being, it said. The task force has proposed that the Housing Loan Corp's lending operations be entrusted to private-sector financial institutions. However, the Ministry of Land, Infrastructure and Transport said: "At present, that would be difficult because such a market is not adequately established." It also argued against a plan to abolish the use of government funds to make up for the low interest on the housing loans that it offers. "They are necessary to ensure that mid-career workers are able to buy homes with an appropriate level of financial burden," the ministry said. The proposal to the Japan Highway Public Corp to scale back or shrink the number of road construction projects, including freezing those currently in progress, was also met with opposition. "We will proceed with our projects while we thoroughly check their profitability," the ministry stated. Meanwhile, the Health, Labor and Welfare Ministry opposed a reform that would allow private companies to examine bills sent by medical institutions for their services to corporate health insurance plans. Currently, such examinations are monopolized by a special public corporation affiliated with the Health Ministry. "It is more efficient to have the corporation carry out all such duties," the ministry said.

© 1999-2024 Forex EuroClub
All rights reserved