The chairman of a study panel on highway construction on Monday questioned the effectiveness of Prime Minister Junichiro Koizumi's proposal to integrate four state-backed construction entities.
Ken Moroi was commenting on a proposal made by Koizumi on Sunday that Japan Highway Public Corp., Metropolitan Expressway Public Corp., Hanshin Expressway Public Corp., and Honshu-Shikoku Bridge Authority be integrated in the course of privatizing them.
"It is questionable for a newly privatized corporation to take care of the losses and long-term debts of Honshu-Shikoku Bridge Authority," Moroi told reporters after a meeting of the panel, an advisory commission to the Land, Infrastructure and Transport Ministry.
On integrating the other three entities, Moroi, who is also an adviser to Taiheiyo Cement Corp., said they are all running losses and there is little point in their merging.
He proposed the government first privatize the three, then consider integration if it sees any benefit.
Moroi's panel was expected to compile a draft proposal today for the privatization of Japan Highway Public Corp.
Reforms of the road sector, particularly reviews aimed at saving money, have drawn strong opposition from the old guard in Koizumi's Liberal Democratic Party.