deregulation

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Review life-threatening deregulation in order to maintain transport safety
Akahata editorial

"Something wrong is going on," people are feeling insecure about Japan's transportation because of frequent accidents, including a series of aircraft troubles and a derailment on JR West.

The frequency of accidents is no coincidence. The root cause is a policy that provides "free market competition while lifting restrictions that stand in the way."

Frequency of transport accidents

A drop-off of two front tires from Japan Airlines (JAL) aircraft and a wrong-altitude flight by All Nippon Airways (ANA) aircraft may have been catastrophes. It is necessary to conduct a thorough investigation to determine the cause of these accidents.

Why have such troubles occurred in succession? It is the airlines' profit-first management policy that puts more priority on cost reduction than safety and consigns the mechanic sector to sub-contractors or abroad amid intensified competition.

Behind these moves are the government's deregulations. It has eased regulations on new entries into the aviation industry as well as airfare, and has allowed airlines to outsource inspections and maintenance of their aircraft.

Regarding the derailment of a JR West train, the company's management attitude is questioned as it has focused on the profit-first policy and effectiveness by providing speedy operations with excessively congested time schedules.

"Effective management structure" was the aim when the former national railways were privatized. The government promoted efficiency by deregulating safety measures. At the time of the inauguration of JR in 1987, the government abolished a regulation that required major private railways to be equipped with the speed reducing-type of automatic train stop system (ATS). This is part of the background that caused the accident.

It is serious that the government loosened restrictions on public transportation that were supposed to put emphasis on safety.

In the taxicab industry, after the deregulation of the number of cabs in service and in taxi fares, the number of cabs increased by more than 13,000 from about 260,000 across the country in the past three years. Under competition for a massive increase in the number of cabs in service and cheaper fares, taxi accidents increased by 50 percent in the last decade.

In the last several years, many fatal multiple truck accidents have occurred.

Even since the deregulation began in 1990 to make it easier to start up trucking businesses and allow fares to be offered without restrictions, the number of transport firms increased 1.5 times and traffic accidents increased 1.4 times.

These deregulations were in response to the arrogant demand of business circles and the government's basic transport policy.

Regarding the deregulation as "part of the national restructuring," the government's Administrative Reform Committee in 1995 called for "pushing the competition race using the law of the jungle."

The Japan Association of Corporate Executives (Keizai Doyukai) in its 1997 "Manifesto for a Market-Oriented Economy" said that Japan can only win the world-wide competition by dismantling the "high cost structure" through deregulation and by abolishing all supply adjustment clauses relating to production, volume, and facilities. The Japan Business Federation (Keidanren) has called for a "cut in distribution costs" and "promotion of competition based on market forces."

In 1996, the government announced that the supply adjustment that barred newcomers from starting doing business and required a unified fare rate will be basically abolished within a set time.

This marked a 180 degree change in government policy because the government asserted that free competition in the transport industry will cause excessive competition, undermining safety and the quality of services for users. Deregulation since has become prevalent in many fields.

Public transport must ensure safety

While safety regulations are being eased and the quality of services degraded, major transport companies, including public transportation systems, are making huge profits. Now that the failure of reckless deregulation is clear, the deregulation-first policy must end immediately.

Mass transit companies must give safety top priority. They have a specific social responsibility to maintain safe transport and increase public welfare.

The need now is for the government to establish rigorous traffic regulations to force companies to fulfill their missions so that users' lives and safety will be ensured. -- Akahata, June 17, 2005