Japan Press Weekly

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2009 June 10 - 16 [LABOR]

Law change sought for stronger control on taxis from deregulation

The House of Representatives Committee on Land and Transport on June 10 unanimously approved a bill to impose stronger regulations on the taxi industry.

The legislation is noteworthy as a shift away from the “structural reform” policy of easing regulations and encouraging more competition to one of tightening regulations in order to ensure greater safety.

All parties supported the bill after amending the government proposal to reinforce the provisions regarding taxi fare.

After the Road Traffic Law was enacted in 2002 to ease regulation of the taxi industry, the number of cabs increased dramatically, bringing about a glut on the market. This caused declines in drivers’ incomes to below 3 million yen a year, forcing drivers to work for longer hours that led to an increase in accidents.

When the law was adversely revised in 2000, only the Japanese Communist Party opposed the deregulation because it would invite excessive competition and compromise safety.

The bill will be enacted by the end of the current session of the Diet, but many tasks remain, including how the taxi glut should be resolved, an adequate wage system to be established, and drivers’ wages and working conditions improved.