Posted on 08/04/2005 1:30:34 PM PDT by Righty_McRight
TOKYO - With a contentious vote to privatize Japan's postal system hanging in limbo for lack of support, Prime Minister Junichiro Koizumi on Thursday tried to rally lawmakers around the bill by indicating again his intent to disband Parliament and call a general election if lawmakers reject the plan.
Privatizing Japan Post, with $2.9 trillion in savings and insurance deposits, would create the world's largest bank.
Koizumi, which has made the bill a centerpiece of his economic policy, had hoped for a vote on privatization by Friday, but his ruling Liberal Democratic Party is now shooting for Monday amid resistance from a unified opposition and some members of his own party, news reports said.
Koizumi argues that the postal reform is needed to make the trillions of dollars deposited in the postal savings system open to more efficient investment, providing a jump-start to a country that is only now emerging fitfully from a lengthy slowdown triggered by the bursting of the "bubble economy" of the 1980s.
Opponents argue privatization will reduce postal services in rural areas and lead to layoffs among the 400,000 postal system workers. They also say the new bank created will drive private financial institutions out of business.
Parliament's more powerful lower house approved the privatization bill last month on a razor thin margin. Japanese media have reported that 12 of the 114 LDP members in the upper house have vowed to vote against the package. With the opposition against the reforms, 18 LDP defectors would be enough to reject the bill.
Koizumi has said failure of the package would be tantamount to a no-confidence vote and has strongly suggested he will break up the lower house if the upper chamber votes it down. Snap elections, which would be held after the normal two-week campaign period, are an unpleasant option for allies and foes alike, who fret being thrown into costly and tumultuous campaigns.
"The only thing I can say now is that we need to do our utmost to have the bill passed, so the house won't be dissolved," Koizumi said Thursday. "If the bill is passed, then the house won't have to be dissolved."
Leaders from the LDP and its New Komeito Party ally agreed Thursday to push the vote to Monday in order to line up more support, media reports said.
The bill is still stuck in committee with opposition members saying Koizumi is trying to ram the bills through Parliament and that more debate is needed.
"We should not cower before the Koizumi Cabinet and the Liberal Democratic Party executives who are now threatening to dissolve the Parliament," said Yoshio Hachiro, chairman of parliamentary affairs committee for the Democratic Party, the largest opposition bloc.
How does a postal system get 2.9 trillion dollars?
Really expensive stamps.
More than StampsThe Postal System in Japan operates like the U.S. Postal Service delivering mail, selling stamps, offering next day express service, etc. However, one thing that sets them apart from its U.S. counterpart is the financial services it also offers. The Post Office in Japan takes in deposits from customers. It has nearly 250 trillion yen in deposits. That is equal to $2.3 trillion. That means every man, woman and child in Japan has an average of $18,000 on deposit with the post office. To put the total amount in perspective, the Japanese postal system could fund nearly half of the U.S. national debt. What could be more convenient, people have to go to the post office to buy stamps, why not make a deposit also instead of making an extra trip to the bank. In fact, many people do take advantage of this government run depository institution due to its incredible convenience. It boasts the largest network in Japan with branches and ATMs in every city, town and village throughout the country. No bank can even come close to matching its breadth.
And they don't pay any interest on savings ( unless you call 0000.1% interest ! ) ...COL ( crying out loud ! )
I believe everybody's retirement savings is required by law to be kept in the postal system over there. I also believe that the government has borrowed all that money. Maybe that's why they feel like they no longer need to control it. The raid is over.
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