Gov't advisory panel calls for wide-ranging deregulatory steps

The government advisory panel studying regulatory reform has proposed a
comprehensive deregulatory package.

The panel's report submitted to Prime Minister Koizumi Jun'ichiro on
December 11called for easing regulations on employment, welfare, and medical
services.

Abolishing as much regulations on corporations as possible is what the
"report" is calling for.

Alleging that the present regulations are hampering free competition,the
panel calls for substantial cuts in public subsidies and government funding
for jobs or public health.

As regards jobs, the report proposes legislation that would make it
easier for employers to dismiss workers in an era of "higher labor
mobility." For example, it proposes further easing regulations on the use of
temporary workers. Taken together, these steps will only help increase job
insecurity.

In the fields of social services, including child care, the report
proposes that long-term nursing homes for elderly people should charge
lodging costs and that child care centers be operated by joint stock
companies.

The report proposes that the government had better slash funding for
medical insurance and allow insurance companies to enter into market
competition instead.

Akahata on December 12 questioned who will benefit from these
deregulations and the use of market forces.

The answer should be found in the panel's proposal to further ease
conditions for the establishment of holding companies that do not engage in
business themselves but control companies as stockholders.

Akahata criticized the panel report for helping large corporate groups
increase their control over the market, which by turn will dismiss more
workers. (end)