Editorial
Japan Post president furore a sign of Aso Cabinet's incompetence
Prime Minister Taro Aso's failure to settle the dispute over the reappointment of the Japan Post Holdings Co. president has raised questions about his leadership ability.
Internal Affairs and Communication Minister Kunio Hatoyama, who has jurisdiction over Japan Post Holdings, has declared that he will not approve the proposed reappointment of its president, Yoshifumi Nishikawa. However, unless Aso clarifies the problems over the reappointment and settles the dispute, it will damage the public's confidence in not only his administration, but in Japanese politics as a whole.
There are two points of contention. The first is how Nishikawa's strengths, abilities and weaknesses should be evaluated.
The Internal Affairs and Communications Ministry issued a business improvement order to the corporation over the sale of the Kanpo no Yado chain of inns to Orix Corp., due to various problems during the bidding process. Moreover, two employees of Japan Post Service Co. have been arrested for helping businesses abuse a postal service discount system for organizations supporting disabled people. Law enforcers are still investigating the case.
On the other hand, he was praised for his management ability, after Japan Post group registered as much profit as the Nippon Telegraph and Telephone (NTT) group in fiscal 2008.
However, attention should be paid to not only its past accomplishments, but also to its future potential. It posted profits, but fell short of achieving its initial target. And it's essential to consider carefully exactly who should serve as president of the postal holding company, as it is required to create a business model to maintain its network of 24,000 post offices across the country, and its 230,000-strong workforce -- in a sustainable manner -- or restructure it.
In addition to the policy aspect, there is also a factor that could lead to political instability. The Aso Cabinet has been in favor of the proposed reappointment of Nishikawa, but Hatoyama, who is the minister in charge, has repeatedly voiced opposition, revealing a split within the Cabinet.
Unless the dispute is settled, it could lead to an unprecedented situation in which the government, which has a 100 percent stake in Japan Post Holdings, will vote to reappoint Nishikawa at a shareholder meeting on June 29; but the minister in charge will refuse to approve it.
Aso's response to the dispute has been extremely slow and hands-off, leaving the chief Cabinet secretary, the finance minister and the internal affairs and communications minister to settle the affair between themselves. Some ruling coalition politicians have expressed the hope that Nishikawa will step down voluntarily before the dispute develops into serious confusion within the government, but it is deplorable.
It has been pointed out by some that the ruling Liberal Democratic Party (LDP) has lost the ability to coordinate conflicting interests between government offices, between legislators, between politicians and bureaucrats and between the political and business worlds and work out clear policies.
Needless to say, it is not a problem involving Prime Minister Aso alone. It should also be pointed out that the function of government organizations that coordinate policies at the instruction of the prime minister has declined. Still, it is the prime minister's duty to use his subordinates in an effective and efficient way, and Prime Minister Aso is urged to overcome his administration's embarrassing lack of governance ability as soon as possible.
(Mainichi Japan) June 6, 2009