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With the rapid decrease of children along with the fast aging, the critical financial situation standing on the worst level among the major developed nations, the lost trust in administration due to the occurrence of scandals, and so on, the environment surrounding administration is extremely serious.
Further, while a new international order is being sought after the end of the cold war structure, the deepening of interdependent relations as well as the rapid development of globalization have become major streams so that Japan has rushed into the age of global mega competition. Moreover, the swift advancement of high information and telecommunication technology is going to drastically change not only people's daily life but also the mode of businesses and services. Those are great changes that generate new administrative needs and require the administration to fundamentally switch its traditional skills and conceptions.
We can say that it is exactly because of such situation as above that today when the arrival of the 21st century is just around the corner, the necessity has been increased more than ever before for realizing, after making a re-inquiry into the role of administration, the administrative reform capable of creating an administrative setup or administrative system primarily for the people.
When seeing the administrative reform presently pursued by the Government, the Administrative Reform Program (Cabinet Decision of December 25, 1996) and the Basic Law on the Administrative Reform of the Central Government (Law No. 103 of 1998) are essential. Of these, while detail explanation will be given in Section 2 regarding the Basic Law on the Administrative Reform of the Central Government, the following explanation will be made mainly about the Administrative Reform Program.
It is mentioned in the Administrative Reform Program "to attempt to realize a real administration primarily for the people". This represents an idea that in recognizing again that the people are taxpayers and are, at the same time, the beneficiaries of administrative services, the subjectives who build up communities, and the main players of various social and economic activities, the realization of an administration is sought with importance attached on the people and business entities more than ever by largely converting from the administration which has so far been often criticized as being centralistic or government-initiated.
In promoting the administrative reform attempting to realize the administration primarily for the people, it is particularly necessary to promote it while obtaining the people's understanding. Whereas the past Fundamental Principles of Administrative Reform were compiled as focusing on the measures to be taken during the following fiscal year, the Administrative Reform Program, as making in principle the remainder of the present century its objective period, presents in an easily understandable way, (i) for what purposes, (ii) what reforms will be promoted, (iii) by when, and (iv) how, and is characterized as a comprehensive plan indicating the following four viewpoints:
| A. |
A simple and efficient administration responsive to the new age (such as the administrative reform of the central government; the management of staff numbers; the consolidation and rationalization of public corporations; personnel management; and the consolidation and rationalization of subsidies, etc.) |
| B. | An administration letting the people take their own initiative (such as deregulation; decentralization; and the review of the areas of activities for public and private sectors) |
| C. | An administration open and trustworthy to the people (such as the promotion of the disclosure of administrative information; and the restoration of trust in administration and public employees) |
| D. | An administration capable of providing high-quality services to the people (such as the reduction of burden on the people related to application and other procedures; and the informatization of administration) |
Let us summarize the characteristics of the administrative reform presently being pursued in respect of such three points as the contents of the reform, the setup for its promotion, and its scheduled implementation:
The contents of the reform presently being tackled are characterized by the fact that it is very extensive and that it contains a great deal of reforms related with the basis and nucleus of the administrative systems.
Some of particular examples thereof are (i) the administrative reform of the central government, (ii) promoting deregulation, (iii) promoting decentralization, (iv) the curtailment and consolidation of public corporations, etc., and (v) efforts for establishing a legal system of information disclosure.
The setup for promoting the administrative reform is characterized in that the Cabinet is making a united cooperation where in particular the Prime Minister and the other Ministers are demonstrating the leadership to pursue the reform.
For instance, with respect to the administrative reform of the central government as the main task of the ongoing administrative reform, the Headquarters for the Administrative Reform of the Central Government was established in the Cabinet in June 1998 in order to deal concentratedly and unitedly with core matters required for promoting the transition to the new setup resulting from the reform. The Headquarters for the Administrative Reform of the Central Government consists of the Prime Minister as the head and all the other Ministers as the members, and as such has been set up so that the Prime Minister and the other Ministers may demonstrate their direct leadership.
In addition, the fact that attempt is being made to promote deregulation mainly by the Headquarters for the Administrative Reform established in the Cabinet (Prime Minister as the head; Chief Cabinet Secretary and the Director-General of the Management and Coordination Agency as the vice heads; and all the other Ministers as the members) can be cited as another example.
Social and economic situations surrounding the administrative reform are undergoing extremely rapid changes. On the other hand, the contents of the reform are not only extensive but also fundamental. Key to the success in the administrative reform lies in how fast and orderly it can be pursued. It is characteristic that for this reason, its scheduled implementation is being attempted by expressly indicating schedules as to the respective measures for the administrative reform.
The Basic Law on the Administrative Reform of the Central Government requires concerning the administrative reform of the central government that the transition to a new setup be commenced as targeted, if possible, for January 1, 2001. The Government is, based on the said Law, conducting the preparation of bills as to the related laws such as the Cabinet Law, the National Government Organization Law, and the laws for establishing the respective Ministries, Agencies, etc. so as to have them definitely drawn up as targeted by April 1999. Moreover, the Government is also promoting the reform by clearly indicating the time schedules for the various tasks of the administrative reform as can be seen in The Three-Year Deregulation Program (Cabinet Decision of March 31, 1998) and the Decentralization Promotion Plan (Cabinet Decision of May 29, 1998).
In the foundation of the ongoing efforts for the administrative reform there lie the results gained from the efforts since the Provisional Commission on Administrative Reform ("PCAR") and the Provisional Council for the Promotion of Administrative Reform ("PCPAR"). The Administrative Reform Committee is also an organ that can be observed in the stream since PCAR and PCPAR. The said Committee was established in the Prime Minister's Office on December 19, 1994 in accordance with the Administrative Reform Committee Establishment Law (Law No. 96 of 1994) in response to the final report to the Third PCPAR, etc., and was dissolved as of December 18, 1997 as it finished its three-year long activities.
The Administrative Reform Committee was an organ that was supposed to (i) monitor the implementation status of the deregulation, (ii) monitor the implementation status of the other items of the administrative reform, (3) investigate and deliberate the legal systems relating to the disclosure of administrative information, and, based on the results thereof, submit its opinion to the Prime Minister. It was characteristic that the Committee was highly independent and autonomous in that it made active and autonomous monitoring as well as investigation and deliberation as opposed to the past way where report had been made in answer to inquiries made by the Prime Minister. Let us reflect the activities of the Administrative Reform Committee in the following:
For the purpose of making a specific study on deregulation, the Administrative Reform Committee established its Deregulation Subcommittee in April 1995. As a consequence of studying the report submitted by the Subcommittee, the Administrative Reform Committee submitted its "Opinion concerning the Promotion of Deregulation" to the Prime Minister twice in December 1995 and December 1996, respectively.
Further, for the purpose of making a specific study on the disclosure of administrative information, the Committee established its Administrative Information Disclosure Group in March 1995. Based upon the results of deliberation made by the Group, the Committee submitted to the Prime Minister in December 1996 its "Opinion concerning the Establishment of the Legal System for Information Disclosure" containing, among others, a draft gist of the Information Disclosure Law.
In addition, the Administrative Reform Committee, considering it necessary, as a consequence of its monitoring activity, to lay out, first of all, criteria for its judgment in consolidating the areas of activities to be shared by the public and private sectors, established in March 1996 its Public and Private Activities Sharing Subcommittee as intended to make a specific study for such purpose. After having received the results of the Subcommittee's study, the Committee submitted its "Criteria for the Manner of Administrative Involvement" to the Prime Minister in December 1996.
Even after the submission of the above-mentioned opinions, the Administrative Reform Committee continued to pursue its study centered around the Subcommittees regarding the two themes, namely deregulation and the sharing of activities between the public and private sectors, and on December 12, 1997, submitted to the Prime Minister its "Final Opinion" compiling all in all its three-year long activities focusing on the results of the two Subcommittees' studies. The Final Opinion represented its suggestions on the promotion of deregulation, the mechanism of evaluating and monitoring administrative involvement, as well as the ways of how to promote the administrative reform in the future, including particularized discussions as to each sector such as land and housing, public work, and agricultural and fishery produces. As for this Final Opinion, the Government made on December 20, 1997 a Cabinet decision to put utmost priority to it, and thus has since been attempting to realize it.
In response to the "Three-Party Policy Agreement toward New Political Power" made on October 31, 1996 by the three ruling coalition parties, namely the Liberal Democratic Party, the Social Democratic Party of Japan, and the New Party Sakigake, the Government inaugurated the Administrative Reform Council on November 21 of that year for the purpose of investigating and deliberating basic and comprehensive matters related with the promotion of the reorganization and consolidation of the national administrative organs required for flexible and appropriate response to complex and extensive administrative issues. The Administrative Reform Council consisting of the Prime Minister himself as the chairman, the Minister in charge of the administrative reform (Director-General of the Management and Coordination Agency) as the acting chairman, and 13 other council members, made intensive deliberations with respect to such main study items as (i) the way how the national functions should be in the 21st century, (ii) the way how the reorganization of the central government should be based thereon, and (iii) particular measures to strengthen the functions of the ministerial official residences with a view to reaching a definite conclusion of proposal to be made within one year after the inauguration.
After having released to the public on September 3, 1997 its Interim Report compiling the results of its deliberations to that date, the Administrative Reform Council further repeated its deliberations, and after its 52 times of deliberations including those by its subcommittees, compiled its Final Report on December 3 of that year. Aiming at the creation of a society full of vitality and self-confidence from the perspective of the future of Japan, the Final Report made it its basic ideal to switch over to such a 21st century type administrative systems as are suitable for the formation of a much freer and fairer society by thoroughly revising the Japanese administrative systems that have become unfit for the current times after the passage of 50 years since the end of the War, and toward its realization, incorporated extensive contents such as the strengthening of the Cabinet functions, the way how new the central government should be, the reduction and making efficient of administrative functions, and the reform of the public service system.
On December 4, the day immediately following its receipt of the Final Report of the Administrative Reform Council, the Government made a Cabinet decision to give utmost priority to it, and besides, decided to introduce into the next ordinary session of the Diet the bills of basic laws for the reorganization, etc. of the central government and ensure that they would be passed thereat. Also, in order to get prepared therefor, the Government immediately established in the Cabinet the Preparatory Committee for the Reorganization, Etc. of the Central Government headed by the Prime Minister and consisting of all the Ministers as the members.
Subsequently, the Government conducted the work mainly by the said Committee and on February 17, 1998 submitted to the 142nd Diet (ordinary session) the bill of the Basic Law on the Administrative Reform of the Central Government faithfully incorporating the contents of the Final Report of the Administrative Reform Council. The bill began to be deliberated by the House of Representatives on April 10, and was, after the deliberation by the House of Representatives' special committee concerned with the administrative reform, passed the plenary session of the House of Representatives on May 12. Further, it began to be deliberated at the House of Councilors on May 22, and after having been deliberated by the House of Councilors' special committee concerned with administrative and financial reform, tax system, etc., was passed and adopted by the plenary session of the House of Councilors on June 9. Incidentally, more than 90 hours of deliberation was made throughout both Houses.
The Basic Law on the Administrative Reform of the Central Government (hereafter in this Section referred to as the "Basic Law") was promulgated on June 12 of that year and came into effect on the same day.
The Basic Law has, giving utmost priority to the Final Report of the Administrative Reform Council dated December 3, 1997, put it into the text of its articles, the contents of which clarify the basic ideal concerning the reform, and include the strengthening of the Cabinet functions, the reorganization of the national administrative organs, the reduction and making efficient of administration, and the reform, etc. of the related systems such as the public service system. Among other things, as regards the reduction and making efficient of administration, provisions have been made for such issues as the reform of non-clerical operations, the creation of a system for independent administrative juridical persons, the simplification of organizations, and the reduction of the staff numbers. The skeleton of the said Law is as follows:
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< Points of the Basic Law on the Administrative Reform of the Central Government >
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In order to deal concentratedly and unitedly with core clerical matters required for promoting the transition to the new setup resulting from the administrative reform of the central government, the Basic Law provides that the Headquarters for the Administrative Reform of the Central Government be established in the Cabinet, which was inaugurated on June 23, 1998. The Headquarters consists of the Prime Minister as the head, the Chief Cabinet Secretary and the Minister in charge of the administrative reform as the vice heads, the other Ministers as the members, and the Deputy Chief Cabinet Secretary as the assistant to the head. Besides, in the Headquarters has been formed an Advisory Council consisting of knowledgeable persons (chaired by Mr. Takashi Imai, President of the Federation of Economic Organization), which is supposed to deliberate important issues related to the measures taken in accordance with the Basic Law and give its opinions to the head.
As regards the targeted timing for the transition to the new system, the Basic Law provides that the transition to the new system be commenced not later than five years after the coming into effect thereof, preferably targeted for January 1, 2001. In line with the Basic Law, the Government is presently conducting, as targeted for around April 1999, the preparation of the Cabinet Law, the National Government Organization Law, the laws for establishing the respective Ministries, etc., and other related laws, along with the laying out of the basic plans such as the reduction and making efficient of the national administrative organizations, etc.
Regarding the administrative machinery, the Government has not only long endeavored to simplify and make efficient the existing machinery, but also maintained an expansion-curbing policy for the formation of new organs based on the so-called "scrap and build" principle.
In the final report of the Provisional Commission on Administrative Reform ("PCAR") (Second) as well, measures for the consolidation and rationalization of the administrative machinery were suggested in various areas, by pointing out that the administrative organizations "must be fully responsive to changes, ensure totality and consistency, be simple and efficient, and ensure fairness and neutrality so as to maintain the people's trust".
In response to the same, the Government has formulated the policies of reform in the series of the Fundamental Principles of Administrative Reform and the Administrative Program, and in line therewith taken necessary measures each time.
The present status of the administrative machinery and the trend of reform thereof are as follows:
The basic administrative organs as stipulated in the National Government Organization Law are Office and Ministry, as well as Commission and Agency formed as the external organs of the former two, the establishment, revision and abolition of which are provided by the laws.
As regards the number of central governmental organs of Japan, while there were two Offices, 11 Ministries, one Headquarters, and 39 Commissions and Agencies when the National Government Organization Law came into effect (on June 1, 1949), an organizational reform was made aiming at getting rid of the Allied Occupation and building an autonomous and independent setup which resulted in one Office, 11 Ministries, and 29 Commissions and Agencies. Thereafter, in close response to the emergence, expansion, etc. of new administrative demands associated with the changes in social and economical situations (such as environmental protection and the comprehensive development of the national land in the decade starting 1965) as well as the necessity of strengthening totally coordinating functions, the reorganization of administrative organs has been being implemented (such as the establishment of the Management and Coordination Agency in July 1984 (resulting from the consolidation and reorganization of part of the central office of the Prime Minister's Office and the Administrative Management Agency), and the consolidation of the Central Labor Relations Commission and the Government Labor Relations Commission in October 1988). In June 1998, the Financial Supervisory Agency was inaugurated in the Prime Minister's Office as an organ in charge of the inspection and oversight of private financial institutions, etc., thus resulting in one Office, 12 Ministries, and 32 Commissions and Agencies (including one Commission and eight Agencies headed by Ministers) as of July 1998.
Fig. 1-1-1 Change in the number of central government
Secretariat and bureaus as the internal subdivision of the respective administrative organs are key organizations having primary responsibility of performing the duties of each organ.
In this respect, a trend of marked increase in number was observed during the first half of the 1960s in order to comply with the rising demand for new administrative services under the high economic growth. However, as a consequence of having maintained the expansion-curbing policy such as taking a step to reduce one bureau per one Ministry, Agency, etc. (including the bureau of the National Police Agency) in 1968, the number of secretariats and bureaus has not increased since FY 1979 though a slight increase was seen in relation to the establishment of the Environment Agency and the National Land Agency.
Fig. 1-1-2 Change in the established number of secretariat and bureau
| Notes: 1. | Those secretariats and bureaus covered by Article 25 of the National Government Organization Law are indicated. |
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2.
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The increase of 15 bureaus in 1957 comprises four bureaus established in the Home Affairs Agency, three in the Administrative Management Agency, and four in the Economic Planning Agency, attributable to the revision of the National Government Organization Law (enabling any external organ headed by a Minister to form bureau instead of department). |
In 1984, in response to the Third Report of the Second PCAR, partial amendment of the National Government Organization Law (effective July 1, 1984) was made to allow for more flexible regulation, etc. of administrative organizations -See Note below- to help realize an efficient administration closely responsive to the changes in demand for administrative services, which made it possible to establish or abolish major organizations such as secretariat, bureau, and department by a Cabinet order instead of the amendment of the Law as previously prevailing. The Government has properly implemented such step to make flexible the regulation of administrative organizations, thereby carried out reorganization covering 14 Ministries/ Agencies and 36 bureaus in total by FY 1997 after the amendment of the Law.
Incidentally, regarding divisions, etc. established to share the performance of the duties of any secretariat or bureau, the Government has endeavored to curb the expansion thereof, by carrying out 240 cases of consolidation and reorganization (including 116 cases of reduction) in line with the comments in the Report of the Second PCAR during five years from FY 1984 to FY 1988.
| Note: | Along with such measure to increase flexibility in the regulation of administrative organizations, an upper limit (128) was set on the total number of secretariat and bureau, intended as a brake for the expansion of administrative machinery, and in addition, a list of organizations of the national administrative machinery began to be published in the official gazette once a year, in order to get the understanding of the public. Moreover, the establishment and abolition of organization that was newly made to be provided by a Cabinet order thanks to the said flexibility measure from the viewpoint of adjusting with the right of deliberation of the Diet, report was required to be made to the Diet, and based thereon 38 times of reports have been made up to the 143rd session. |
In the Basic Law on the Administrative Reform of the Central Government enacted in June 1998, it is provided that the total number of secretariat and bureau "be wherever possible as close as 90 at the time of any Office or Ministry being organized" and that division and quasi-divisional chamber presently totaling slightly less than 1,200 "be in the neighborhood of 1,000 at the time of any Office or Ministry being organized" and "should be reduced as a target by about one-tenth thereof in five years after the organization of the Office or Ministry, and should be made as close as 900 wherever possible", as such more slimming efforts being intended.
Councils are collegiate organs founded with the aim of reflecting public opinions in various areas on the administration, introducing expertise into it, and so on.
As part of the administrative reform, the Government has since endeavored to liquidate or rationalize anyone of councils, etc. whose activity is significantly dull. Based on "Regarding Progress of Administrative Reform" (Cabinet Decision of December 1977), measures have been taken to liquidate or consolidate 48 councils, etc. (36 having been reduced due to dull activity) and to reduce about 1,000 council members and the like, as a consequence of which the number of established councils, etc. has been substantially decreased from 277 in FY 1965 (at the peak in number) to 212 as of July 1998, as such the consolidation and rationalization being in progress.
Besides, in the Basic Law on the Administrative Reform of the Central Government, it is also provided that such consolidation and rationalization be made as abolishing in principle any council, etc. having little result of activity.
Fig. 1-1-3 Change in the established number of council, etc.
Incidentally, in respect of the operation of councils, etc., based on "the Guidelines concerning the Management and Other Matters of Advisory Councils, as well as Round-Tables (Kondan-kai) and Other Meetings on Administrative Operation" (Mutual consent among the related Ministries and Agencies for laying out guidelines on councils, etc. dated June 6, 1994), the Inventory of Advisory Councils has been kept by each Ministry or Agency stating the matters in the charge of any council, etc., the names of its members, the records of its past activities and made available to the public for inspection, thus attempt having been made to ensure the transparency of operation thereof. Further, on September 29, 1995, in order to secure a transparent administrative operation and to ensure the simplification and making efficient of administration, "Regarding the making transparent, reviewing, etc. of councils, etc." was made by a Cabinet decision, and in accordance with this Cabinet decision and others the Government has determined to further promote the review of appointment of members, etc., the opening to the public of meetings and minutes thereof, and so on.
The Management and Coordination Agency is, in cooperation with the Cabinet Secretariat, conducting a follow-up investigation concerning the status of the promotion of opening to the public of the meetings of councils, etc., and according to the result of investigation compiled in March 1998, in almost all of the councils subject to the said Cabinet Decision any of the proceeding of meeting itself, its minutes or the digest thereof is made open to the public, and in addition various other good ideas are being put into practice by the respective councils, and Ministries and Agencies, such as publishing the digest of the proceeding of meeting on internet and other computer networks, conducting a press conference after each meeting.
Each Ministry or Agency has established a great variety of its associated organs as facilities, such as testing laboratories and research institutes, inspection and accreditation organs, educational and training centers, medical treatment and rehabilitation facilities, correctional institutions, and workshops. In addition, as special organs there are the National Police Agency, the Public Prosecutor's Office, overseas embassies, and so on. As regards these so-called auxiliary organs, etc., reorganization and rationalization have been implemented consistent with the intent of the Report of the Second PCAR.
Moreover, as pointed out by the Second PCAR, each Ministry or Agency is required to review on its own its own organization as well as operations and activities, and to promote the improvement thereof. Toward this end, a series of review was implemented for auxiliary organs by annual plans, whereby 20 Ministries and 135 organs were subjected to review from FY 1984 through FY 1991, and based on the result thereof such necessary improvement measures were taken as the consolidation of the Vegetable and Ornamental Crops Research Station with the National Research Institute of Tea.
In the Basic Law on the Administrative Reform of the Central Government it is provided that regarding organs as facilities, anyone other than those needed on the part of the nation be promoted to be shifted in the control of the private sector or any local public entity or to be abolished while even those considered necessary be promoted to be consolidated in conformaity with the organization of Office or Ministry in question and further be studied to be switched to an independent administrative juridical person consistent with the character of an organ as a facility, etc. in question, and even special organs be reviewed as to their necessity and the way how they should be, in consistency with the characters thereof.
Local branch offices can be roughly divided into those established at the regional block level, those established at the prefectural level, and the other ones (such as substations, sub-offices, sub-branches, liaison offices, etc.). As for their established numbers, there were 233 block organs, 599 prefectural-level organs, and approximately 25,600 other organs as of the end of FY 1997 (about 5,500 excluding post offices), and about 60% of national public employees are working in these local branch offices.
As for local branch office, the Government has been attempting to promote the streamlining and rationalization of organizations and services thereof, as well as the curtailment of staff numbers, the making appropriate of their location, and so on.
In particular, taking into due consideration such situations as the recent progress of transportation and communication means, the modernization of office work, and the changes in other conditions, the Government has been promoting the following reforms in line with the report of the Second PCAR.
A. Block Organs
As for block organs having broader jurisdictional areas as the primary organs among the local branch offices, the Government has determined to endeavor to make appropriate small jurisdictional areas, to put their established number in good order, and to consolidate their organizational lines. From FY 1984 through FY 1996, the Government has promoted the reorganization and rationalization in line with the intent of the report of the Second PCAR, by abolishing 57 organs through the consolidation of the Land Transport Bureau and the Marine Transport Bureau in the Ministry of Transport (resulting in the establishment of a new District Transport Bureau), the consolidation of the Local Postal Savings Bureau and the Local Postal Life Insurance Bureau of the Ministry of Posts and Telecommunications into the Local Bureau of Postal Services, and so on.
B. Prefectural-level Organs
In line with the intent of the report of the Second PCAR to the effect that prefectural-level organs established under block organs be wherever possible consolidated into the block level except any locally limited services, the Government abolished in FY 1984 the Regional Administrative Inspection Bureau of the Management and Coordination Agency, the Local Public Security Investigation Offices of the Ministry of Justice, the Local Finance Offices of the Ministry of Finance, and the Local Postal Inspection Bureau Branch Offices of the Ministry of Posts and Telecommunications, and formed in their place smaller organs enough to perform minimum locally required services. As linked with this, the Government has endeavored to reduce the staff number of those organs. Furthermore, the Ministry of Agriculture, Forest and Fisheries has since FY 1995 been promoting consolidation and reorganization concerning the Local Food Agency Offices, and also the Government has determined to make continued efforts for reorganization and rationalization and the reduction of the staff number as to the same Ministry's Statistics and Information Offices, etc.
C. Sub-branches, Liaison Offices, etc.
As to sub-branches, liaison offices, etc., planned reorganization and consolidation have been made, such that 644 spots were reorganized or consolidated in accordance with the Cabinet Decision of May 1983, and 276 spots were further reorganized or consolidated in accordance with the Fundamental Principles of the Administrative Reform of FY 1989.
Incidentally, in the Basic Law on the Administrative Reform of the Central Government it is provided that the necessity of operations and activities of local branch offices be reviewed taking account of the changes in social and economic situations, etc. whereby measures necessary for the reorganization and rationalization thereof, such as relocation, consolidation and abolition, should be taken.
In the examination of the request for new organization in FY 1998, the Government made a rigorous examination based on the budget compilation policy as decided by the Cabinet on December 20, 1997, whereby the Government endeavored to build a setup responsive to the diversification of demands for administrative services through the reasonable reorganization of the existing organizations while rigorously curbing the expansion of the entire organization.
As the examples of the result of examination of the main requests for organizations in FY 1998, there were the additional establishment of one Deputy Chief Cabinet Secretary and one Parliamentary Vice-Minister of the Ministry of Foreign Affairs, respectively, the new establishment of the Deputy Chief Cabinet Secretary for Crisis Management, the organization of the Financial Supervisory Agency (Deputy Director-General, the Director-General's Secretariat, the Inspection Department, and the Oversight Department), and the establishment of the Financial System Planning Bureau and the International Bureau of the Ministry of Finance (the abolition of the Securities Bureau, Bank Bureau, and the International Finance Bureau).
In the midst of current situations surrounding administration and finance that are much severer than ever before, the rigorous management of the fixed numbers of personnel is essential in order to realize reasonable location of fixed numbers responsive to the changes in demand for administrative services while curbing the expansion of administrative organizations. In particular, under the circumstances where the environment surrounding finance is still severe, the rigorous management of the fixed numbers of personnel is strongly requested from the standpoint of curtailing personnel cost as well.
The Government has been attempting to reduce the number of the national public employees through the enforcement of the Law concerning the Fixed Number of Personnel of Administrative Organ (Law No. 33 of 1969; hereinafter referred to as the "Total Staff Number Law") and the implementation of a series of the Personnel Reduction Plans (See (1) A below), and has determined to take the measure of curtailing 3,700 persons through such steps as strictly curbing any new increase while pursuing the continued steady reduction of staff numbers in accordance with the Ninth Personnel Reduction Plan (Cabinet Decision of July 30, 1996) (See Table 1-1-1).
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Table 1-1-1 Recent status of staff numbers assessed
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(Expressed in number of person)
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As a consequence, the number of both clerical and non-clerical personnel of the various Ministries and Agencies totals approximately 849,000 persons (not including Self Defense Force officials) as of the end of FY 1998 of which 533,000 persons are clerical workers (including about 325,000 in regular Ministries, Agencies, etc., about 135,000 persons in national schools, about 54,000 persons in national hospitals, national sanatoriums, etc., and about 19,000 persons as regional officials, etc.) while 316,000 persons are non-clerical workers (including about 301,000 persons in postal services, about 8,000 persons in national forestry services, about 6,000 persons in printing services, and about 1,000 persons in currency printing services). This represents a restraint at a level about 50,000 persons less than the staff number as of the end of FY 1967 as the base year of the Total Staff Number Law (or about 58,000 persons less if excluding about 8,000 persons covered by the Okinawa Reinstatement Special Measures Law (Law No. 129 of 1971) (representing a net increase resulting from the reinstatement of Okinawa) (See Table 1-1-2).
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Table 1-1-2 Change in the numbers of clerical and
non-clerical workers
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(Expressed in number of persons)
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A. The Total Staff Number Law and the Personnel Reduction Plans
The prime objective of the current staff number management is the appropriate placement of personnel throughout the Government to respond to changing demands for administrative services so as to realize an efficient duty handling system that will be trusted by the public, while restraining the expansion of the total number of the national public employees. This is carried out by reducing the staff number of departments stagnant in receiving demand for administrative services or those needing rationalization while providing departments having rapidly increasing demand for administrative services with an increase of personnel to the degree of a minimum necessity. Basic arrangements therefor are the Total Staff Number Law and the implementation of the Personnel Reduction Plans thereunder as well as annual request for increase of personnel and examination thereof, whereby the reduction of personnel of the Government as a whole is being ensured in the midst of increasingly complex and diversified demands for administrative services associated with changes in social and economic situation.
The basic law concerned with the number of the national public employees is the Total Staff Number Law. This Law sets the upper limit on the total number of "regularly working personnel to be assigned to positions needed to be constantly placed" to perform the duties of the Ministries and Agencies concerned.
Before the Total Staff Number Law was enacted, the number of personnel in each Ministry or Agency had been stipulated by each Ministry or Agency establishment law, and after the Total Staff Number Law was enacted, the number of the respective Ministries and Agencies have come to be specified by cabinet order under the Cabinet's responsibility within the maximum extent of the total number of personnel provided in the Total Staff Number Law (See Note below). This made it possible to lay a prerequisite for implementing a dynamic and flexible placement of the number of personnel responsive to changing demands for administrative services.
| Note: | The number of personnel subject to the upper limit set by the Total Staff Number Law includes all clerical personnel of the National Government less personnel of the administrative organs located in the area of the Okinawa Prefecture, personnel of the newly established national medical colleges, local officials, etc. |
Incidentally, as to the number of non-clerical personnel who are not subject to the upper limit under the Total Staff Number Law, rigorous management is also being carried out in that their numbers are fixed by the respective laws and regulations concerned (See Table 1-1-3).
Personnel Reduction Plan is to prefix the target of reducing personnel during several coming years so that each Ministry or Agency may in a planned manner reduce the number of personnel in departments which can be rationalized as a consequence of the streamlining, simplification, making efficient, etc. of its services or operations or such departments with decreasing services or operations.
The Personnel Reduction Plans have been laid out and implemented at nine times since FY 1968 including the currently ongoing Ninth Personnel Reduction Plan, thereby having so far reduced approximately 302,000 persons.
Further, when the Cabinet decided on a Personnel Reduction Plan, it also decides to take measures applicable to the personnel of public corporations such as Koko (public finance corporation) and Kodan (public corporation), corresponding to the Personnel Reduction Plan applicable to the national public employees, taking due account of the actual status of the business operations of the corporation in question, and in addition requests local public entities to take measures corresponding to the national Personnel Reduction Plan.
Moreover, as for the Diet, the Courts, the Board of Audit, and the National Personnel Authority, in his speaking at the Cabinet meeting on the occasion of deciding the Plan, the Director-General of the Management and Coordination Agency asks the Chief Cabinet Secretary to request that they take measures corresponding to the said Plan.
Incidentally, the current Ninth Personnel Reduction Plan, which has been laid out in accordance with "Regarding the Management of the Number of Personnel in and after Fiscal Year 1997" (Cabinet Decision of July 30, 1996), provides that 35,122 persons (equivalent to 4.11% of the staff number as of the end of Fiscal Year 1996) be reduced in a planned way during five years from FY 1997 through FY 2001.
B. Trend of Staff Number
As a consequence of the foregoing, the number of the national public employees of the Ministries and Agencies including both clerical and non-clerical employees has resulted in a net decrease of about 50 thousand persons in total during 15 years after the report of the Second PCAR (from FY 1982 through FY 1997), irrespective of the progress of internationalization and the increase of demand for administrative services such as the enrichment of educational and welfare measures, which represents a very small number of public employees per population as compared with the major foreign countries.
Inter-departmental personnel reshuffling has been pursued since FY 1980 as a new trial of the staff number management in that it contributes to the rationalization of the placement of the number of personnel in the Governmental departments and facilitate the efficient utilization of human resources familiar with interdepartmental circumstances, etc.
Table 1-1-3 Staff numbers by various legal systems of staff number management
|
Category
|
Controlling law
|
Classification of coverage
|
Kind of applicable laws and regulations | Staff number as of the end of FY 1998 | |||||||||||||||||
| Clerical | Fixed number of personnel of Ministries and Agencies controlled within the upper limit under the Total Staff Number Law | Law on the Number of Personnel of Regular Staff of Administrative Organizations (Upper limit: 509,508) |
|
|
Number of person 484,945 |
||||||||||||||||
| Fixed number of personnel of the national administrative organs located in Okinawa | Okinawa Reinstatement Special Measures Law | Fixed number of personnel of the respective external subdivisions
of each Ministry and the Prime Minister's Office (Subsequent items being same as the above case with the fixed number of personnel under the Total Staff Number Law) |
Cabinet order |
8,395
|
|||||||||||||||||
| Fixed number of national public employees who are local officers (personnel related to social insurances and employment security) and local police officers working in prefectures pursuant to the provisions of Local Government Act |
Supplement to the Local Government Act The Police Law |
Fixed numbers of personnel by respective services Fixed number of personnel |
Cabinet order
|
|
|||||||||||||||||
| Fixed number of personnel of newly established national medical colleges, etc. | The National School Installation Act | Fixed number of personnel | Law |
20,095
|
|||||||||||||||||
|
Non-clerical
|
Law on the Number of Personnel of Regular Staff of Administrative Organizations | Fixed number by respective non-clerical services | Cabinet order |
316,442
|
|||||||||||||||||
|
Total
|
849,177
|
||||||||||||||||||||
| Self Defense Force officials | Defense Agency Installation Act | Fixed number of officials of Gland, Marine, and Air Self Defense Forces | Law |
267,280
|
|||||||||||||||||
| Special posts such as Ministers, Parliamentary Vice-Ministers, and Commission members | Respective law concerned | Fixed number of personnel | Law |
148
|
|||||||||||||||||
| Special organs |
|
|
|
|
4,085
24,922
|
||||||||||||||||
|
Total
|
30,972
|
||||||||||||||||||||
|
Grand total of national public employees
|
1,147,577
|
||||||||||||||||||||
| Local government employees | Local Government Law | Fixed number of personnel of respective local governments | Ordinance |
(As of April 1, 1997)
3,267,118 |
|||||||||||||||||
As part thereof, interministerial personnel reshuffling is conducted with consultations being made among Ministries and Agencies at the Reshuffling Promotion Liaison Meeting, whereby the interministerial personnel reshuffling of 3,158 persons was carried out during the period from FY 1980 through FY 1997.
With respect to postal service, it is intended that further rationalization and making efficient of its management be promoted along with the appropriate operation consistent with the purpose of its service, by pursuing countermeasures to the changes in the conditions of domestic and foreign environments surrounding its management, financial liberalization, and so on, and attempting to streamline and enrich its management foundation such as endeavoring for the efficient expenditure of cost and securing proper earnings, in line with the Final Report of the Third PCAR. Efforts for the rationalization and making efficient of management are also continued in FY 1998 in that a net decrease of 1,547 persons has been attained in terms of the staff number of the entire postal service.
As for the improvement of national forestry service, management improvement plans have been laid out at four times since FY 1978, and at present, improvement is pursued with a view to achieving the balance of earnings and expenditures of its regular operations by FY 2000, in accordance with the "Fundamental Principles for National Forest Improvement" (Cabinet Agreement of December 18, 1990) and the "Plan for Improvement of National Forestry Service" dated July 5, 1991. Under these circumstances, the status of the rationalization of organization and staff number from FY 1978 through FY 1997 related to the national forestry service is as follows:
| (i) | Organization | |
| Regional Forestry Office :14 offices decreased to 9 offices and 5 branch offices | ||
| District Forestry Office :351 offices decreased to 229 offices | ||
| Local Forestry Office (in charge of assigned area):2,333 offices decreased to 1,256 offices | ||
| (ii) | Staff number | |
| Personnel subject to staff number :35,279 persons decreased to 8,991 persons | ||
However, in respect of the national forestry service, it was required in the "Administrative Reform Program", in view of its severe financial condition (having cumulative liabilities amounting to 3,522.8 billion yen as of the end of FY 1996), that (i) fundamental improvement policies be studied and laid out within 1997, and (ii) a bill of any necessary law be submitted to the ordinary session of the Diet of 1998, and it was decided in the "On Promoting Structural Financial Reform" (Cabinet Decision of June 3, 1997) that "efforts be made for the fundamental reform as to how its management should be, its organization, and so on", and further it was decided in the "Regarding Particular Measures for the Treatment of Long-term Liabilities of the National Railways and the Fundamental Reform of the National Forestry Service" that for the purpose of promoting the fundamental reform of the national forestry service, "necessary steps therefor be taken such as submitting a bill of necessary law to the next term of the Diet", and thus a special measures bill for the reform of the national forestry service, etc. were introduced into the 142nd Diet, and adopted in October 1998.
Incidentally, as part of this fundamental reform, it is intended the Management Department and Business Department presently located in the main office of the Forestry Agency will be consolidated into a National Forest Department (named provisionally yet) (six divisions will be curtailed down to four at the same time, and that 14 regional forestry offices (including branch offices) will be reorganized into seven forest management bureaus in terms of blocks while 229 local forestry offices will be reorganized into 98 forest management offices in terms of river basin, and in addition the staff number as of the end of FY 1998 is to become 7,934 persons, down 1,057 persons as compared with that as of the end of FY 1997 (8,991 persons).
As regards national hospitals and sanatoriums, for the purposes of entrusting general medical services to public and private medical institutions as far as possible and attempting to clarify the functions performed on the part of the nation, the "Basic Guidelines for the Reorganization and Rationalization of National Hospitals and Sanatoriums" (hereinafter referred to as the "Basic Guidelines") was laid out in March 1985, based on which the consolidation and abolition of facilities, the transfer of management, etc. were pursued previously, but in those times the reorganization as a whole could not gain progress as planned partly because it took much time to get the understanding of local municipalities, etc.
For this reason, revisions to the Law Concerning Special Measures for the Reorganization of National Hospitals, etc. were made in May 1996, and in accordance therewith measures for reducing the assets of the national hospitals and sanatoriums and increasing the transferees thereof were taken.
In addition, the Basic Guidelines were revised in November 1996 providing that (i) as to any facilities which were not finished yet its consolidation or abolition, or transfer of its management, countermeasures including the abolition of facilities be decided not later than the end of FY 2000, which should be implemented promptly, (ii) as for any facilities not subject to reorganization, anyone incapable of performing their roles as a national medical institution be studied so as to be added to the facilities subject to consolidation or abolition, or transfer of management, and so on.
Moreover, it is also required in the Administrative Council's Final Report and the Basic Law on the Administrative Reform of the Central Government that further reorganization be accelerated.
Incidentally, of late, as a result of those measures and the efforts to date, the number of cases where consolidation or abolition, or transfer of management is actually carried out is increasing.
Furthermore, as regards the management of national hospitals and sanatoriums, the rationalization and making efficient thereof have been pursued so far by the clarification of criteria for carry-over from the General Account, the layout of an operation plan as to each facility, the furtherance of entrusting any jobs of common control type to private enterprises, and so on.
So-called public corporations, such as Koko (public finance corporation), Kodan (public corporation), and Jigyodan (public agency), are any juridical person incorporated directly pursuant to any law, or any juridical person to be incorporated through a special incorporating act pursuant to any law (such act concerned with the incorporation as is done by an incorporating commissioner or commissioners appointed by the Government), in case the Government intends to do any necessary business, and if the nature of jobs thereof is fit for enterprising management and should it be placed in the charge of any ordinary administrative organ, efficient management thereof is not expected due to various institutional restrictions, or if it is not fit for enterprising management but it is deemed appropriate to have it done by any juridical person other than the Government, or otherwise.
Public corporations were incorporated in a large number after the War, in particular during the high economic growth period in the decade starting 1955, so as to cope with rising demands for administrative services, such as the preparation of infrastructure, the welfare of the people, and the like. However, it has become necessary to review the necessity or adaptability relating to public corporations and their businesses in response to the changes in social and economic situations, and to attempt the curtailment and rationalization thereof from the viewpoint of the simplification and making efficient of administration.
Toward this end, the Government, after coming into the decade starting 1965, pursued the curtailment and rationalization of public corporations in accordance with a series of Administrative Reform Plans, and coped with any new establishment based on the scrap-and-build principle as far as possible. As a consequence, the total number of public corporations got leveled off in FY 1967 and after, and turned to tend to decline in the middle of the decade starting 1975 and after, thereby resulting in a net decrease of 32 corporations during the period from FY 1975 when the total number of public corporations was the highest with 113 corporations, same as in FY 1967, through the present (81 corporations) (See Fig. 1-1-4).
Fig. 1-1-4 Changes in the number of public corporations
| Note: | Thanks to the enforcement of the three laws related to the consolidation, etc. of public corporations adopted at the 142nd and 143rd Sessions of the Diet, the number of public corporations has become 81. |
As for public corporations, the Management and Coordination Agency is conducting examination concerning any new establishment, change of purpose thereof, and the revision and abolition of any system therefor. In the case of FY 1998, it was intended to deal with anything based on the policy that, except ones arising from the rational reorganization of any existing organization, no new establishment be made, in accordance with the budget compilation policy decided by the Cabinet on December 20, 1997.
With respect to the examination of the consolidation and abolition of public corporations, it has been decided, based on "Regarding the Curtailment and Rationalization of Public Corporations" (Cabinet Decision of February 24, 1995) and others, to accept the requests for (i) the consolidation of Institute of Developing Economies into the Japan External Trade Organization, (ii) the abolition of the JNR Settlement Corporation, (iii) the reorganization of Power Reactor and Nuclear Fuel Development Corporation into Japan Nuclear Cycle Development Institute, (iv) the complete privatization of Kokusai Denshin Denwa Co.
Focusing on the Three Corporations, namely the Japan National Railways ("JNR"), the Nippon Telegraph and Telephone Public Corporation, and the Japan Tobacco and Salt Public Corporation, the Third Report of the Second PCAR suggested, as to each of these Corporations, particularized reform measures including the way how management style thereof should be, with the understanding that not a mere stopgap repair of the existing system but the fundamental reform of corporation system itself should be pursued so as to rectify it into a private enterprise or any similar management style.
Taking due account of the intent of the said Report, two of The Three Corporations, namely the Nippon Telegraph and Telephone Public Corporation and the Japan Tobacco and Salt Public Corporation were each reorganized, as of April 1, 1985, into a special company from their status as a public corporation, and were inaugurated anew as Nippon Telegraph and Telephone Corporation ("NTT") and the Japan Tobacco Inc. ("JT"), respectively. Also, in the case of JNR, eight laws concerned with the reform thereof were adopted, on the basis of the JNR Reform Committee's "Opinion on the Reform of Japan National Railways" of July 1985, whereby JNR was split and privatized on April 1, 1985, so that six stock-issuing Japan Railway Company ("JR") and one similar type Japan Freight Railway Company ("JR Freight") were newly inaugurated.
Thanks to those approaches, the reform of the Three Public Corporations, which had so far remained one of the most important tasks of the administrative reform since the setout of the Second PCAR, was realized, and the stocks of each privatized company have been being sold to the public in line with the purport of the reform. The post-privatized management of each of the Three Public Corporations has since kept by and large stable and sound.
The JNR Settlement Corporation, which had been disposing of the long-term liabilities of JNR with the assets held by it, but as circumstances arose that the increase of liabilities which would finally remain was inevitable with the previous scheme maintained, the "Bill concerning the disposition of liabilities of the JNR Settlement Corporation, etc." providing, among others, that the interest-bearing liabilities of the Corporation be succeeded to by the General Account was introduced into the 142nd Diet, and adopted in October 1998. As a consequence of the enforcement of the said Law, the JNR Settlement Corporation was abolished and its jobs such as the disposition of the assets have been taken over by Japan Railway Construction Corporation.
As for NTT, a bill for its reorganization into the Nippon Telegraph and Telephone Corporation as a holding company, and two regional companies (the East Japan Telegraph and Telephone Corporation and the West Japan Telegraph and Telephone Corporation) and one long-distance telephone company, was presented to the 140th Diet, where it was passed in June 1997. On the other hand, as far as JT is concerned, its monopolized salt sales system was abolished in April of that year, and its monopolized salt sales business has been privatized.
In response to the Fifth Report of the Second PCAR as well as the Final Report of the First PCPAR, the Government laid out, in the series of Fundamental Principles of Administrative Reform, a course of action for implementing the measures related to the consolidation and abolition, transition to a private corporation, and shrinkage of business, in addition to activation, of public corporations other than the Three Public Corporations and so-called authorized public corporations (Ninkahojin) -See Note below- (hereinafter collectively referred to as "public corporation, etc."), and thus has pursued the curtailment and rationalization of public corporations, etc. in a planned way.
| Note: | So-called authorized public corporations, which are incorporated in a limited number in accordance with any special law, are formed, unlike public corporations, on private initiative. However, the Second PCAR, from the consideration that certain of authorized public corporations are substantially identical with public corporations, regards both public corporations and authorized public corporations as being "public corporation, etc." in one and the same way and thus suggests extensive curtailment and rationalization measures. |
As a consequence, regarding the corporations pointed out by the said Reports, the Government carried out, by 1991, consolidation and abolition of 19 corporations in 13 cases, and privatized 17 corporations (See Note below). Further, as to two corporations, it was determined in the Fundamental Principles of Administrative Reform, to pursue the independence of their management by such steps as abolishing investment from the nation.
| Note: | "Privatization" refers to eliminating institutional monopoly of business by any public corporation, etc. concerned based on the principle of pursuing independence of public corporations, etc. laid out in the Fifth Report of the Second PCAR, and attempting to secure the independence of their management through implementing such necessary revisions of the system as (i) abolishing institutional or actual investment by the nation and the like, (ii) institutionalizing autonomous selection of their own executives, and (iii) abolishing subsidies and the like from the nation, etc. |
Moreover, activating measures are being promoted covering all the aspects common to public corporations, etc., including personnel management and budget and accounting work operations, through such steps as conducting at times the administrative inspection by the Management and Coordination Agency, in line with the series of Fundamental Principles of Administrative Reform.
In 1995, the Government and the ruling parties tackled, in unison, reviewing public corporations, and as a result, reached a Cabinet decision to the effect of carrying out the rationalization and making efficient of business of all such corporations, and further consolidating 16 corporations into 8 and implementing abolition, privatization, or the like as to five such corporations (on February 24 and March 31).
In the said Cabinet decision, in addition to the above, there were incorporated such reforms as (i) the making open of financial status to the public, (ii) the making appropriate of personnel management, (iii) monitoring system, (iv) countermeasures to cope with employment problems, and (v) restraint on subsides, etc.
Furthermore, as for authorized public corporations, review thereof was made by each Ministry and Agency in accordance with the Fundamental Principles of Administrative Reform of December 1994, and thus measures for the rationalization and making efficient of businesses were decided in the Fundamental Principles of Administrative Reform of December 1995.
The Government has steadily pursued the curtailment and rationalization of public corporations in line with the above-mentioned 1995 policy, and so far submitted bills concerned with the consolidation, abolition, privatization, and the like of 17 corporations, all of which have been adopted.
In addition, in 1997, in parallel with the discussions on the administrative reform of the central government, a study was conducted by the ruling parties concerning new curtailment and rationalization, resulting in the layout of the measures for the curtailment and rationalization of public corporations, etc. at three times, namely on May 27, September 10, and December 19. In response to this, the following Cabinet decisions were reached:
| (i) |
Cabinet Decision of June 6, 1997, "Regarding the curtailment and
rationalization of public corporations, etc." |
| (ii) |
Cabinet Decision of September 24, 1997, "Regarding the curtailment
and rationalization of public corporations, etc." |
| (iii) |
Cabinet Decision of December 26, 1997, "Regarding the curtailment
and rationalization of public corporations" |
Moreover, also in the Basic Law on the Administrative Reform of the Central Government, it is provided that the curtailment and rationalization of public corporations be pursued based on the purport of the administrative reform of the central government (Article 42), and under the circumstances the Government is in process of steadily promoting those curtailment and rationalization policies and tackling the reviewing of the businesses of public corporations through such steps as enumerating such reviewing and the rationalization of their management as important issues in the Administrative Inspection Program (April 1, 1998).
Disclosure of public corporations (making open of financial status, etc. to the public) is an important task, also with a view to deepening the people's understanding of, and seeking to secure their trust in, the business activities of public corporations, which have public nature in both respects of job contents and financial foundation. For this reason, the Management and Coordination Agency is making strenuous efforts in unison with various Ministries and Agencies.
On the basis of the "Recommendations based on the results of investigation concerning public corporations -Focusing on the making open of financial status to the public, subsidiary companies, etc.-" (December 24, 1996) and the "Administrative Reform Program", a "Bill concerning the Promotion of the Preparation and Making Open to the Public of Financial Statements of Public Corporations" was submitted to the 140th Diet, which was promulgated and came into effect in June 1997.
Following the enforcement of the said Law, which provides the basic framework for pursuing the disclosure of public corporations, the completion of ordinances of the Prime Minister's Office and ministerial ordinances was achieved covering the matters that must be entered and made open to the public in the business report and its accompanying detailed statements. Thanks to these efforts, the real status, which has so far not always been made clear, including not only the contents of management of any public corporation itself, but also the flow of fund, work, and persons from the public corporation to its subsidiary company and the like, has now been made to be openly clarified in detail.
These new disclosures have been in practice starting with the settlement of account for the business year 1996, and financial statements, etc. are already made available for inspection at the head office or branch offices of each public corporation.
Also, the financial statements, etc. of all public corporations are altogether made available for inspection at the Public Corporations Reference Room of the Management and Coordination Agency (located at the first floor of No. 4 Building of the Chuo Godo Chosha (Central Consolidated Governmental Office Buildings), Kasumigaseki, Chiyoda-ku).
It is demanded that the fundamental structural reform of the international economic society of Japan be sought so as to become a free and fair economic society standing on the self responsibility principle and the market principle, and that regarding the way how administration should be, conversion from administration of prior regulation type to the one of expost facto regulation type be achieved. For this reason, the Government is tackling deregulation aggressively and in a planned way, and has so far decided the "Deregulation Action Program" (Cabinet Decision of March 31, 1995; hereafter in this Section referred to as the "Previous Program") as well as "The Three-Year Deregulation Program" (Cabinet Decision of March 31, 1998; hereafter in this Section referred to as the "New Program"). The Previous Program had been supposed to be "reviewed by the end of every year and revised by the end of every fiscal year", and pursuant thereto was revised for the first time on March 29, 1996, and revised again on March 28, 1997, and the predetermined period of the Previous Program ended as of FY 1997. The New Program, which stands in succession to the Previous Program, is explained in the following as to the history of laying out the same and the outline thereof.
At the Cabinet Meeting on October 31, 1997, the Director-General of the Management and Coordination Agency spoke out in effect, "We are considering making a new Governmental decision as targeted for within this fiscal year concerning particularized measures for the promotion of deregulation after the current planned period, focusing on any matters incorporated in the Deregulation Action Program measures for which are not finished within the planned period, along with the Opinion of the Administrative Reform Committee scheduled for December".
Further, as a policy of the Government to cope with the "Final Opinion" of the Administrative Reform Committee in December 1997, the following were incorporated in "Regarding the promotion of deregulation, etc." decided by the Cabinet on December 20:
Pursuant to this, the Government had the New Program decided by the Cabinet on March 31, 1998.
The New Program has in principle succeeded to the Previous Program as to the basic structure in promoting deregulation in that it is based on the meaning, results, and effect of the Previous Program, that its system is comprehensive as is the case with the Previous Program and is a yearly plan system, and that it adopts a rolling system whereby it is, even after it has been laid out, to be always reviewed and revised as of the end of every fiscal year.
On the other hand, the utmost feature of the New Program different from the Previous Program is that it has also been made to tackle the transverse study and review throughout the various administrative fields so as to promote the reform by finding out as new tasks such matters that have not been subjected to review in the previous promotion of deregulation. This aims at demonstrating the effect of accelerating furthermore the relaxation and abolition of regulation, by implementing the deregulation matters of individual administrative fields and conducting the transverse study and review of individual administrative fields.
The outline of the New Program is as follows
A. Promotion of Transverse Study and Review
| (i) |
Review of regulation against participation in business |
| (ii) |
Review of authorization, notification, etc. |