Interim Report of Implementation Plan for Reform of Administration-Commissioned Public Service Corporations (Subsidiary-related) [Summary]

1. Reform of Subsidies for Public Service Corporations

• Improvement of Subsidies of the "Third-Party Distribution"
  (Corrections will be made for instances in which more than half of the amount of a subsidy is distributed to a third party.)
  • Targets of Reform (Cases that require measures from FY2001) - 208 cases
    

    (1) Abolition of subsidies - 98 cases (52 cases)
    

    (Examples)

    Subsidies for Assistance Projects for Promoting Shorter Working Hours National Federation of Labor Standards Associations Project for Promoting Rationalization of Rice Dealing and Distribution National Rice Association Study of Technology for Hydroelectric Power Generated Through Pumping of Groundwater New Energy Foundation

    
    

    (2) Direct Subsidies from the Government - 25 cases (18 cases)
    

    (Examples)

    Subsidy for Assisting the Development of Areas Surrounding Facilities Association for Development of Areas Surrounding Defense Facilities Project for New Industrial Technology Development in Agriculture, Forestry and Fisheries Society for Techno-innovation of Agriculture, Forestry and Fisheries

    (3) Improved to less than 50% - 49 cases (40 cases)
    

    (Examples)

    Subsidy for Projects to Assist and Improve Employment of Care Workers Care Worker Support Center Foundation Subsidy for Assistance for Industrial Development of Electric Power Supply Regions Center for Development of Power Supply Regions

    (4) Others - 36 cases
    

    (Examples)

    Subsidy for Projects to Ensure a Sufficient Blood Supply Yuai Welfare Foundation Subsidy for Expenses for Measures to Prevent Motor Vehicle Traffic Accidents Foundation for Orphans from Automobile Accidents

  
  

• Improvement of "Subsidy-dependent" Public Service Corporations
  (Corrections will be made to the system, under which more than two-thirds of the annual revenue of public service corporations are from the Government.)
  
  • Targets of Reform (more than two-thirds of revenue comes the Government at the end of FY2000) - 87 public service corporations
    

    (1) Abolition of subsidies - 9 public service corporations (5 public service corporations)
    

    (Example)

    Japan Taxation Association

    
    (2) Improvement for less than two-thirds - 49 public service corporations (27 public service corporations)
    

    (Examples)

    Association for Development of Areas Surrounding Defense Facilities The Foundation for Children's Future

    
    (3) Others - 29 public service corporations
    

    (Example)

    Institute for World Politics and Economy Interchange Association

    
    

• Abolition of Subsidized Compensation for Directors
  
  • Targets of Reform (those for which budgetary measures have been taken in FY2001) - 32 cases
    
    • Abolition - 31 cases (13 cases)
    • Others - 1 case
      Interchange Association

  (Note) Numbers in parentheses are numbers for which necessary measures will be completed in FY2002.

2. Improvement of Transparency of Subsidies for Public Service Corporations ("New Rules")

In line with the compilation of the "Interim Report," "New Rules (subsidiary-related)" have been formulated with the following content.

• Regarding subsidies related to the "Third-Party Distribution" and "Subsidy-dependence"
  
  1. Disclosure of the degree to which reform has been accomplished (dissemination via Internet)
     Strict examination of policy necessities (implementation of policy assessment every three to five years)
     

  2. Strict examination of policy necessities (implementation of policy assessment every three to five years)

• Regarding all subsidies for all public service corporations, disclosure via Internet of information about the amounts, summary of projects and primary uses of subsidies and how recipients of subsidies are chosen.

* It is envisaged that these new rules will be adopted by Cabinet Decision at the end of FY2001, together with an overall implementation plan that includes rules related to inspections and will be implemented by each ministry and agency.