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On the afternoon of February 20 during intensive deliberations of the House of Representatives Budget Committee meeting, DPJ Vice President Seiji Maehara asked about the management of the Kampo no Yado inns and the government’s dam policies.
“Various opinions have emerged on the process of selling the Kampo no Yado inns, and Internal Affairs and Communications Minister Kunio Hatoyama has made severe comments”, Maehara said, in posing the question to Japan Post President Yoshifumi Nishikawa. While noting that direct management of the inns is leading to improved management, Maehara asked if the group companies, which are the sub-contractors of the Kampo no Yado, are making a profit, when the parent company itself is in the red.
Nishikawa replied that he did not know the extent of the profit the sub-contractors are making, but said that they are probably making a reasonable amount of profit as they are very dependent on the parent company. To this reply, Maehara noted that the parent company is currently generating losses of 4.6 billion yen. “This is a case of bureaucrats being complacent and inefficient,’’
he said. “Has this system of letting the parent company go into the red and having the contracted group companies make a profit being going on just because the money from Kampo, or Postal Life Insurance, can be used?” Maehara asked. Nishikawa replied, “Profits are not being deliberately transferred.”
Maehara asked that Japan Post Holdings Co., present a list showing the number of people from the former Ministry of Posts and Telecommunications, the Ministry of Internal Affairs and Communications, and from entities related to Kampo who work at the group companies.
The Committee Chair said the request would be deliberated at the Budget Committee Directors meeting. Maehara also pointed to the large number of people in management positions as well as the numerous staff working at the headquarters of the Kampo no Yado inns, and said that if improvements are made in this area, the Kampo no Yado would become profitable. Internal Affairs and Communications Minister Hatoyama said he was convinced that if inefficiency was reduced, the Kampo no Yado would become profitable.
Maehara argued, “Due to the bureaucratic complacency, the postal life insurance, which is the asset of the people, has been squandered, with just the group companies being supported, and too many people being employed. It is necessary to break through this situation and rebuild something new that is of strong value.
Prime Minster Taro Aso said, “Regarding the sale (of Kampo no Yado), care will be taken so that no suspicions will be raised. That is the most important thing.“ Aso added he would like the Internal Affairs and Communications Minister to firmly handle the matter.
Maehara also touched on public projects. “With the passing of time, the circumstances and the environment change,” he said, talking about the plan for the Kawabegawa River dam. “When the DPJ takes over, we will check everything one by one to assess whether this dam is really necessary.”
On the Kisogawa River channel plan, Maehara criticized the system of endlessly implementing public projects. He said that the rationales for the plan – the estimation given that water demand will rise even though the population in the three surrounding prefectures is declining, as well as the argument that the project will be a measure against drought – do not stand to reason. He said that by revising water rights, steps should be taken to avoid building facilities as much as possible, and that wasteful public projects should not be implemented. Maehara pointed out that the place for carrying out this particular plan should not be predetermined. Finance Minister Kaoru Yosano replied, “We will properly consider what you have said.”
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