The government should be more flexible in leasing or selling state property to help reduce huge fiscal deficits, an advisory panel to the finance minister proposed Friday.
The proposal, made by the Central National Property Council, paves the way for the sale of unused and other plots of land owned by the state. The land, which totals 15 sq. km, has a book value of 1.63 trillion yen as of March 31, 1997.
The report also suggests that the government promote economic efficiency by introducing private-sector money and knowhow in designing, building and managing public facilities.
The panel has been discussing the handling of state property since last September, following Prime Minister Keizo Obuchi's order to Cabinet ministers to review the issue.
Whether to sell unused state land should be decided after examining individual cases, the report says.
The government should sell plots of state land only if there would be less to be made in keeping them. National land should otherwise remain in the state's possession, the report says.
Even if land is not sold, a temporary lease should be considered, it says.
Government facilities — such as parks, schools and apartments for officials — would be better managed if they were leased to private businesses, the report says.
The report also calls for wider disclosure, on the Internet, of information about government property.
In response, the Finance Ministry will launch an information site on the Internet next year, officials said. The site will include detailed information — such as location, size, and book value — about state-owned property.