## 3 Promotion of Local Administrative Reform Through the New Local Administrative Reform Guidelines

In order to solidly promote local administrative reform, the Ministry of Internal Affairs and Communications compiled the New Guidelines for the Promotion of Administrative Reform in Local Governments (the New Local Administrative Reform Guidelines) and notified local governments of them on March 29, 2005.

As a result, local governments have compiled and disclosed intensive reform plans indicating specific efforts, such as the reorganization and arrangement of administrative work and projects and the promotion of private-sector consignment, to be undertaken in general until fiscal 2009.

## Specific Examples of Intensive Reform Plans

## • Reduction of number of employees

• Reduction of 7.8% (about 2,800 persons) in the six years from FY 1999 to FY 2004

• Reduction of 6.9% (about 2,300 persons) in the five years from FY 2005 to FY 2009

## • Restraint of salary expenses

• Pay-rise period extension measure (12-month extension)

Period: FY 1999-2003

• Salary-cut measure (7% for department heads and bureau heads, 5% for office heads, 3% for other staff)

Period: FY 2004-2006

## Promotion of private-sector consignment, etc

• Fundamental revision of all nonclerical work (17 businesses, 361 persons)

Private-sector consignment, etc. of security work, road inspection work, kitchen work, telephone operator work, etc.

• Introduction of designated manager system

FY 2005: 19 facilities, FY 2006: 131 facilities (of which, prefectural housing: 118 facilities)

## • Reduction of internal management expenses

• Reduction of facility management expenses by 25% compared with the initial budget for FY 2003 by FY 2006

• Reduction of administrative expenses by 40% compared with the initial budget for FY 2003 by FY 2006

## • Reduction of ordinary construction project expenses, etc

Planned reduction of public works

• Reduction of both subsidized and unsubsidized public works (construction) by 20% compared with the initial budget for FY 2003 by FY 2006

• Reduction of unsubsidized public works (maintenance) by 10% compared with the initial budget for FY 2003 by FY 2006

• Reduction of direct obligations by 10% compared with the initial budget for FY 2003 by FY 2006

☐ Reduction of investment expenses other than public works in a planned manner by 20% compared with the initial budget for FY 2003 by FY 2006

Standardization of projects and progress adjustment

## • Reduction of number of employees

• Reduction of number of employees by about 1,700 persons (about 11.5%) through efforts in the five years from FY 2005 to FY 2009 (reduction of 324 persons in FY 2006 due to efforts in FY 2005)

## • Formation of new salary system

• Revision of pay scale in response to work stages and shift to salaries that reflect job and work responsibility

## • Formation of new personnel system

• Promotion of personnel system reform to make maximum use of the abilities of employees through the operation of a new personnel evaluation system, compilation of a human resource development plan, etc. (full-fledged implementation of new personnel evaluation system from April 2006)

## Promotion of private-sector consignment, etc

• Promotion of shift to method of providing public services through utilization of the private sector through utilization of the designated manager system, etc. (system introduced at about 170 facilities as of April 2006)

## Promotion of equity corporation reform

• Clarification of new reform targets for equity corporations, including their integration and abolition, and steady promotion of reform (one corporation abolished in FY 2005)

## Promotion of soundness of public enterprises

• Regarding the four projects for the full operation of the Local Public Enterprise Law, compilation of individual new medium-term management plans and promotion of efforts toward establishment of financial structure to enable management through independent settlement

## Efforts toward financial soundness

• Efforts to build a sustainable financial structure to achieve an account balance without borrowing from the sinking-fund in FY 2009