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@ @Although transport by the JNR rose steadily during the high growth period,
its competitive edge over other transport systems has been gradually lost as
a result of the changing transport structure, as seen in the development of
automobile transport. The JNR's passenger transport has been decreasing since
fiscal 1975, and its freight transport has also been decreasing since 1970 when
it reached a peak. The JNR's share in all transport systems has gone down substantially
(Figs. 11 and
12).
@ @Since a single-year deficit was recorded in fiscal 1964, the JNR's earnings
have continued to deteriorate until it recorded a huge deficit of 900 billion
in fiscal 1975. At the end of fiscal 1975, the JNR had an accumulated deficit
of more than 3 trillion. Despite such measures as the shelving of debts in
fiscal 1976 and 1980, the JNR's annual loss has exceeded 1 trillion over the
past several years. Consequently, the JNR had an accumulated deficit of 7,586.8
billion at the end of fiscal 1981. The JNR's long-term loans totaled l6 trillion
at the end of fiscal 1981. The payment of interest for these loans has pressed
hard on the JNR's financial position (Table
11).
@ @Under the Management Improvement Program (the so-called final program) ,
authorized on May 21,1981 by the Minister of Transport on the basis of the JNR
Reconstruction Promotion Special Law (see Note, page 26), the JNR is endeavoring
to promote various reconstruction plans with emphasis on a financial improvement
and the trimming of management (Fig.
13).
@ @In fiscal 1981, the Management Improvement Program was carried out in the
following aspects:
@@@The JNR's transport in fiscal 1981 decreased in both passengers and freight
from the previous fiscal year. Particularly, freight transport fell far short
of the year's target set under the Management Improvement Program (Table
12).
A@@The JNR suffered a deficit of 1,085.9 billion in fiscal 1981, since its
earnings dropped by 77.5 billion from the previous fiscal year because of losses
from the operations of local railway lines and buses, and also because of the
payment of increased pensions and retirement allowances for its aging employees
(Table 11).
@ @Under the Management Improvement Program, the following measures have been
specifically implemented (Table
13):
@@@One hundrend and nine freight handling depots have been merged or reduced
in size ; six yards have been abolished.
A@@To prepare the openings of the Tohoku and Joetsu shinkansen lines, 2,890
employees were recruited. However, through the establishment of unattended stations,
the modernization of maintenance work, the contracting out, and other rationalization
measures, 14,890 employees were reduced. On balance, a total of 12,000 employees
were reduced. The year's target, set under the Management Improvement Program,
was thus achieved.
B@@Two hundred and fifty sections and rooms in local agencies, which account
for 15% of the total, have been abolished or reduced in size.
C@@Of the local railway lines (175 lines covering a total distance of about
10,160 km), considered appropriate to use buses from the standpoint of the national
economy because of scant demand for transport, 40 lines covering a total distance
of about 730 km were initially chosen for study in September 1981. As of November
11,1982, negotiations were opened with local residents over 38 lines scheduled
to be abolished during fiscal 1983.
@ @The Ad Hoc Commission on Administrative Reform, which was established at
the end of fiscal 1980, is now tackling a wide range of subjects concerning
the nation's structure, system, and administrative policy. Keeping in mind the
fact that the JNR's financial position has already passed crisis proportions
and has reached a state of bankruptcy, the Commission has hammered out a policy
of dividing the JNR and transferring its management to the private sector so
as to end the present status of public corporation and introduce a system capable
of performing its operation in a responsible and efficient way.
@ @Before the JNR is transferred to a new system, the Commission also suggested
the following measures to be taken immediately:
@@@workshop discipline to be maintained, and personnel administration strengthened:
A@@recruitment of freshmen to be suspended in principle, and personnel to be
rationalized thoroughly:
B@@investment in facilities and equipment to be restricted:
C@@freight transport to be streamlined:
D@@abolition of local lines to be stepped up.
@ @In addition, the Commission suggested creation of a Ministerial Council for
the JNR Reconstruction within the Cabinet and a Supervisory Committee for the
JNR Reconstruction within the Prime Minister's Office.
@ @In response to these suggestions, the Government made a Cabinet decision
to abide by the Commission's recommendations as far as possible and decided
to establish a Supervisory Committee for the JNR Reconstruction in the Prime
Minister's Office, as well as create a Preparatory Room for the Establishment
of a Supervisory Committee for the JNR Reconstruction in the Cabinet to have
it make necessary preparations.
@ @In a "Government statement on the JNR reconstruction" on September 24, the
Government issued an emergency declaration on the state of the JNR, and within
the framework of the "specific measures for administrative reform," which was
approved by the Cabinet on the same day, the Government made clear the following
schedule for the JNR reconstruction:
@@@In accordance with the report filed by the Ad Hoc Commission on Administrative
Reform concerning the JNR reconstruction, overall plans for its rejuvenation
will be worked out within five years, and efforts will be made to translate
the plans into action.
A@@A bill to create a Supervisory Committee for the JNR Reconstruction will
be submitted to the next session of the Diet, and preparations will be made
for the enactment of related laws.
B@@A Ministerial Council for the JNR Reconstruction will be established.
C@@In view of the fact that the JNR is financially in a state of crisis, policies
for implementing the immediate measures should be formulated as quickly as possible,
and these should be translated into action step by step.
@ @The Ministerial Council for the JNR Reconstruction will be established in
the Cabinet and will be presided over by the Prime Minister. In accordance with
the "Immediate Measures to be Implemented for the JNR Reconstruction," which
were approved by the Cabinet, the Government decided to take the following actions
in line with the guidelines set forth in the Commission report :
@@@workshop discipline to be maintained:
A@@recruitment of freshman to be suspended in principle:
B@@investment in facilities and equipment to be restricted:
C@@freight transport to be streamlined:
D@@abolition of local lines to be stepped up:
E@@the free-pass system to be reexamined:
F@@the fare system to be adjusted:
G@@the system permitting JNR personnel to double as members of local asset-blues
to be reexamined:
H@@revenue to be increased by, for instance, stepping up disposal of assets:
I@use of automobiles, factories and hospitals to be rationalized thoroughly.
@ @The businesses operated by the JNR are to be studied mainly by the Supervisory
Committee for the JNR Reconstruction, which is scheduled to be set up shortly,
regarding how these businesses should be operated in the most efficient way.
In accordance with the September 24 Cabinet decision, the Ministry of Transport
on the same day inaugurated the JNR Reconstruction Promotion Emergency Headquarters,
with Vice Minister of Transport as Director, to materialize the various plans
@
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