EDITORIAL: Postal reform decision

Prime Minister Yukio Hatoyama flubbed badly with his support of proposed legislation to turn back the process of postal privatization.

Over objections from several state ministers, Hatoyama approved the postal reform plan at Tuesday's Cabinet meeting. It was compiled at the initiative of Shizuka Kamei, minister in charge of postal reform.

The plan would raise the ceiling on individual deposits in the Japan Post Bank to 20 million yen ($214,000), double the current amount. Also, the maximum benefit of life insurance policies issued by Japan Post Insurance for an individual would be raised to 25 million yen from the current 13 million yen. This is a simplistic plan aimed at expanding the scale of the postal system's financial services so as to bolster earnings.

It is easy to see the harmful effects the planned steps would produce. A huge amount of money is deposited in postal savings, most of which, in turn, is invested in government bonds. A massive shift of assets from private-sector financial institutions into postal savings would result in a shortfall of funds available for corporate capital spending and other productive investment, thereby weakening the nation's economic vitality.

New Komeito leader Natsuo Yamaguchi had a good point when he said the bill would make life tougher for small and midsize companies.

Hatoyama's Democratic Party of Japan originally called for downsizing postal savings operations and scrapping the postal insurance service. Why has Hatoyama accepted a plan that goes squarely against his party's policy?

Hatoyama apparently had to factor in political calculations. He probably didn't want to antagonize Kamei, who heads the People's New Party, a junior coalition partner, and trigger a crisis. Hatoyama was also concerned that a rift within the Cabinet on the issue would further erode public trust in his administration.

On the other hand, he apparently thought that currying favor with the postal lobby--the association of postmasters of tokutei post offices and Japan Post labor unions--would benefit the ruling coalition in the Upper House election this summer.

Clearly, Hatoyama was intent on putting politics before policy integrity.

His leadership appears to be so weak and flawed that his qualifications as the nation's leader must be called into question. That sentiment was expressed by Liberal Democratic Party President Sadakazu Tanigaki. We agree with it.

During his one-on-one Diet debate with Hatoyama on Wednesday, Tanigaki argued that Hatoyama's own words were the primary cause of problems concerning policy issues. It is a thoughtful criticism.

One good example is Hatoyama's flip-flopping on the issue of relocating the U.S. Marine Corps Air Station Futenma in Okinawa Prefecture. Hatoyama initially "promised" to craft the government's proposal by the end of March. As the deadline drew near, he backtracked, saying it was not a legal commitment. He went so far as to say that failing to meet the deadline by a day or two is "no big deal."

Doesn't he know the old saying "An imperial mandate is like perspiration" (once released, it can never be taken back)? His wavering is hardly likely to inspire voters. They will have a hard time believing Hatoyama's pledge to stake his political life on finding a solution to the Futenma issue by the end of May.

As for this sticky issue, Hatoyama said he already has a plan in his mind and claimed it is backed by consensus within the government.

He made these remarks just after Foreign Minister Katsuya Okada said it was impossible to narrow down the options to a single plan. What's going on here? Don't they talk to each other at all?

Once again, we urge Hatoyama to be more careful in his public utterances. He seems indifferent to potential political ramifications with his missteps. As the nation's leader, the prime minister is expected to define the direction of policy and build consensus within the government by making responsible comments. This is what it takes to lead.

Public expectations for Hatoyama as qualified to be prime minister are wearing thin.

--The Asahi Shimbun, April 1