Prime Minister Junichiro Koizumi has instructed Cabinet ministers to consider integrating the various information technology sections of different ministries, possibly into a new ministry, to reduce red tape, sources familiar with the issue said Saturday.

Chief Cabinet Secretary Yasuo Fukuda, however, told reporters the same day that Koizumi is not asking ministers to create a new ministry immediately.

"The prime minister said lateral cooperation among ministries and agencies is necessary," Fukuda said.

Officials at the ministries concerned said the issue is still undeveloped. It is uncertain whether an IT ministry will actually be realized.

According to the sources, telecommunications minister Aso Taro said Friday that if Japan wants to overcome international competition in the field, it will be necessary to review the administrative structure. At present, both his ministry and the industry ministry have separate sections in charge of IT affairs.

The Public Management, Home Affairs, Posts and Telecommunications Ministry is in charge of regulations and supervision, while the Ministry of Economy, Trade and Industry oversees development of the IT industry.

Aso made the remarks at a meeting of the Council on Economic and Fiscal Policy in response to a comment that better cooperation among ministries and agencies is needed to promote Koizumi's reform measures.

Other Cabinet ministers agreed about the importance of improving Japan's competitiveness in the IT field, citing the success of South Korea, where the administrative structure was integrated.

After hearing his ministers' opinions, Koizumi mentioned the possibility of integrating the IT sections and later met separately with Aso and METI chief Shoichi Nakagawa.

One government source said Aso's remark was "a strategy to snatch the IT section from METI in exchange for cooperation in the privatization of postal services."

Analysts believe Japan needs an administrative structure that can respond swiftly to changes in the industry, such as through deregulation, as it faces fierce competition from other countries over the development of software and IT technology.