Prime Minister Junichiro Koizumi said Wednesday he is confident his contentious package of postal privatization bills won't be rejected by the House of Councilors and there will be no need to dissolve the House of Representatives.

But he didn't rule out dissolution if the bills get rejected.

The prime minister's remark came as the Upper House began debating the bills Wednesday morning. Koizumi has the right to dissolve the Lower House and call for a snap election if the bills are rejected.