Government decides to call for bids on 9 public services

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Government decides to call for bids on 9 public services

The Koizumi Cabinet on September 5 approved the "Public Service Reform Basic Plan" that calls for "market testing" bids on nine public services, including the Social Insurance Agency's national pension premiums collection and unemployment offices' employment assistance services in regions with high rates of unemployment.

In the "market testing" competitive bids both government agencies and private companies are supposed to take part, but in six public services out of the nine, the government has already decided not to participate, showing that the "market testing" is not a competition between public and private sectors as the government claims but a genuine step towards privatization of public services.

The Basic Plan puts forward a policy to constantly review if a particular service needs to be conducted by the public sector and to abolish the public service if it is considered to be "unnecessary".

In addition, when the private sector is deemed to be able to carry out a service, the government will take deregulating measures to make it easier for private companies to take part in the service.

The government plans to make available to "market testing" bids more public services, including services affecting the safety and privacy of the public such as air traffic control, municipal office counter work, and passport issuance on the grounds that private companies are requesting they be opened to the private sector.
- Akahata, September 6, 2006