Fat-trimmers target Kansai airport grants

The Japan Times: Tuesday, Nov. 17, 2009

Kyodo News

A government panel charged with cutting waste sought Monday to freeze grants to debt-laden Kansai International Airport until a new bailout plan is worked out, as part of the panel's efforts to sort out overspending in ministries' budget requests for fiscal 2010.

Rather than green-light the proposed ¥16 billion in grants to help lower high landing fees at the Osaka Prefecture-based airport, which is saddled with more than ¥1 trillion in interest-bearing debts, the Government Revitalization Unit demanded that demand-boosting measures be devised, such as a review of the roles played by the Kansai region's three airports.

On the fourth day of its nine-day, open-door investigation that started last Wednesday, the panel also called for cutting about 10 percent from the Land, Infrastructure, Transport and Tourism Ministry's ¥42.5 billion request for projects to maintain local airports.

The panel likewise recommended the ministry's ¥6.7 billion request for its noise-reduction and other improvement projects for areas around airports be cut by 10 percent to 20 percent.

The proposal, however, drew a mixed reaction. Senior vice transport minister Sumio Mabuchi said the ministry will continue to request that the Finance Ministry earmark funds for the grants next fiscal year, which starts April 1.

Kansai International Airport Co. President Shinichi Fukushima expressed disappointment with the panel's verdict, while Osaka Gov. Toru Hashimoto said it would be good for the Kansai region in the long run.

The panel, comprising lawmakers of the ruling Democratic Party of Japan and outside experts, also called for cuts of around 10 percent to the transport ministry's ¥42.5 billion request for projects to maintain local airports.

The panel's three working groups screened 24 projects Monday, including welfare, education and agricultural projects.

They proposed cutting ¥300 million in requested subsidies by as much as a half for training teachers when they renew their licenses, in view of the administration's desire to scrap the teaching license renewal system.

The panel also said the education ministry's ¥2 billion vocational training program should be delegated to local governments.

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