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.
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