With the Diet's Oct. 14 passage of the postal-services privatization bills, Prime Minister Junichiro Koizumi has reaped a reward for his daring decision to dissolve the Lower House. But the postal privatization is only the first of many issues that the government has to address to streamline its operations and prevent the country from going bankrupt. Since Mr. Koizumi appears to be determined to step down as prime minister in September 2006, he must present to the public as soon as possible a timetable and road map for his agenda so that sufficient public debate can be held on the issues.
In the previous Diet session, the Lower House passed the postal reform bills by a margin of just five votes and the Upper House killed them by a margin of 17 votes. A mere two months later, a vastly different picture has emerged in the current Diet session, testifying to the strong power base Mr. Koizumi gained through his overwhelming victory in the Sept. 11 snap elections. The Lower House passed the bills by a margin of 200 votes and the Upper House by a margin of 34 votes. The Diet members who changed their mind over the bills before and after the elections now face criticism for their opportunism. The Upper House's decisions before and after the elections differed even though the composition of the chamber has remained virtually the same, raising questions regarding its trustworthiness in its relations with voters and its stability as a legislative body.
Although the enactment of the postal reform laws is a dream come true for Mr. Koizumi, the legislation will not necessarily lead to complete freedom in operation for companies that emerge from the privatization of Japan Post. In October 2007, half a year later than the original bills envisaged, Japan Post will be divided into four firms -- mail, savings, insurance and network operation -- and placed under a holding company. By the end of September 2017, the holding company will dispose of its shares in the savings and insurance companies. But it can buy them back. The government will possess at least one-third of the shares of the holding company. The network operation company, a wholly-owned subsidiary of the holding company, also can buy shares in the savings and insurance companies.