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Internal affairs minister Kunio Hatoyama on Tuesday pressed Japan Post Holdings Co. to submit a turnaround plan by June for its money-losing Kampo no Yado resort inn network.

Hatoyama earlier refused to approve Japan Post’s overall business plan for fiscal 2009 starting Wednesday, complaining about a projected loss of some ¥3.8 billion for the nationwide inn network for Kampo postal life insurance customers.

He approved the business plan on condition that Japan Post presents its strategy for the inn network by June.

The strategy is expected to include reductions in personnel costs and increased rates to use the inns.

Earlier this year, Hatoyama killed a plan by Japan Post to sell the network to leasing company Orix Corp.

Hatoyama on Tuesday also approved a fiscal 2009 business program of the holding company’s Japan Post Service Co. unit on condition it drop a deal to integrate its parcel delivery services with those of Nippon Express Co. in October.

A joint venture, JPExpress Co., was to take over the two firms’ separate parcel delivery services while leaving unprofitable rural services to be handled by Japan Post Service.

Interpreting the deal as unfavorable for Japan Post Service, Hatoyama called for raising fees that the joint venture would pay to Japan Post Service for rural services.

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