New Prime Minister Naoto Kan's government had its first casualty Friday as financial services minister Shizuka Kamei stepped down in protest because the Diet session won't be extended to act on his controversial pet bill to scale back the postal system privatization.

But Kokumin Shinto (People's New Party), which Kamei heads, will remain in the Democratic Party of Japan-led ruling coalition and support Kan's new Cabinet, saving the administration from a potential crisis as it barely holds a majority in the Upper House. The ruling bloc holds 122 of the chamber's 242 seats, including six held by Kokumin Shinto.

Kan appointed Shozaburo Jimi, Kokumin Shinto's secretary general, to fill Kamei's post.