Lawmakers Reject Bid to Divide, Sell Japan Post

Share this content:
Japanese lawmakers rejected legislation to split up and sell the nation's postal service yesterday, leading Prime Minister Junichiro Koizumi to call snap elections for Sept. 11, according to news reports.


The showdown could shake the ruling Liberal Democratic Party's grip on power, since defections from Koizumi's LDP helped defeat the postal plan on a 125-108 vote in the upper house of Parliament.


Koizumi has long sought to privatize the postal service's savings and insurance businesses and open their $2.9 trillion in deposits to private investors. He hoped the move would boost the struggling economy, which only now is emerging from a decade-long slowdown.


The legislative package would have created the world's largest private bank, but opposition was strong among lawmakers who said the measure would cut postal services to rural areas and lead to layoffs among the 400,000 postal system workers. They also said the huge new private bank would drive other financial institutions out of business.


Parliament's lower house approved the postal bill last month by a thin margin. The package would have privatized Japan Post by 2017, dividing it into private companies handling mail delivery, banking and insurance.


The $2.9 trillion in savings and insurance deposits held by the postal service have financed the massive public works projects that are central to the LDP's pork-barrel system, while the network of unionized postal workers has long been a bastion of support for the party.


close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here