A leading conservative within the Liberal Democratic Party has given a public corporation reform deal reached last week between Prime Minister Junichiro Koizumi and LDP elders a lukewarm reception.
Makoto Koga, chairman of the LDP's Research Commission on Highways, told a news conference that, "Although (the agreement) was not the best, it was inevitable to make such a decision when there were various opinions within the party."
Koizumi and senior LDP members agreed last week to redeem the interest-bearing debts of Japan Highway Public Corp. in 50 years -- rather than in 30 years as Koizumi had initially sought -- and to stop injecting the entity with taxpayers' money.
Koga said that shortening the redeemable period to 30 years would have meant freezing ongoing and future expressway construction plans -- a scenario that was impossible to accept.
He said that the 50-year plan will guarantee the construction plans in question, along with the current system of pooling toll fees gathered by four expressway-related firms and injecting those loss-making organizations among the four with any profits that are generated.
The four firms are Japan Highway Public Corp., Metropolitan Expressway Public Corp., Hanshin Expressway Public Corp. and Honshu-Shikoku Bridge Authority.
Koga also said that Honshu-Shikoku Bridge Authority should not be merged with the three other highway firms.