Prime Minister Junichiro Koizumi expressed his determination Wednesday to reform loss-making public corporations despite strong opposition from within his ruling Liberal Democratic Party.
During a one-on-one debate with opposition leaders, Koizumi said he plans to scrap and privatize seven major special-purpose entities, including Japan Highway Public Corp., Urban Development Corp. and Japan National Oil Corp.
The prime minister said he plans to abolish Government Housing Loan Corp. within five years and implement sufficient tax-relief measures so low income earners will continue to be able to afford housing.
He also reiterated his plan to integrate and privatize four highway-related organizations.
In fiscal 2002, the government will stop pumping 300 billion yen into Japan Highway, he said.
"Plans mapped out in the past may not be carried out," Koizumi said, hinting at the possibility of partially freezing a nationwide expressway construction plan. "We have to consider which expressway is necessary based on its future profitability."
Koizumi also noted that he will not give up reform even if LDP members are openly critical, as they will be a minority voice in the party.
"Some say unless Koizumi is replaced, the LDP will die out. But they have not realized that if I am replaced, the LDP will die out," he said. "I want to ask party members whether they are determined to go so far as to replace me (as party president) in order to stop me from implementing reform."
Yukio Hatoyama, leader of the Democratic Party of Japan, openly praised Koizumi and said that his real supporters are within the DPJ, not the LDP.
"If it is for the best of public interest, we will offer support even if the ruling coalition parties turn out to be a resistance force," Hatoyama said.