January 31, 2023

Akahata 'Morning breeze' column

The Kishida government has been promoting a Private Finance Initiative (PFI) scheme which uses private funds and know-how in the area of public services. Regarding public cultural facilities, the government in its 2023 budget draft has earmarked about 60 million yen for the PFI promotion for the Cultural Affairs Agency.

Under this scheme, municipal authorities, while retaining ownership of their public cultural facilities, grant a 10-year concession (exclusive right to operate public facilities) to specific private companies.

For example, a private entity has been awarded a concession to operate the Nakanoshima Museum of Art in Osaka City. As the museum recently opened, sales of its entrance tickets have been good so far, but with time, the number of visitors will return to normal or may be below the predicted figure. According to the operating firm, expenses for the museum's utilities were double the budget due to the recent sharp rise in electricity rates.

Public cultural facilities and social educational facilities organize events to attract local residents to visit, and of course, to increase revenues from entrance fees. Apart from that, their basic activities are education and dissemination, exhibition, research, and collection and storage of items which are all important for the community.

On the other hand, regarding private companies, their No.1 priority is to "make money". If the operation of a public facility does not generate profits, they will withdraw from the venture. In that event, it is the municipal government that will pay for it.

The central government should create a supplementary budget so that municipal authorities can operate their own facilities on their own without relying on private funds.