# Chapter 1: New MLIT Policies Accommodating the Needs of the Times

## Section 1 – MLIT Policies Accommodating the Needs of the Times

### 1. Efforts on Development Strategy by MLIT

Confronting the anxious factors of the future, such as a declining population, rapid aging with fewer children (low birthrate) and large long-term debt, it is important to utilize outstanding resources, such as talent, technological capability and tourism resources and to improve international competitiveness for Japan to keep building a sustainable country in the future. Therefore, in order to establish a development strategy, the 1 $ ^{st} $ MLIT Development Strategy Conference, which was comprised of experts, was held on 26 $ ^{th} $ October 2009. The studied topics were from 5 areas, 1) Ocean; 2) Tourism; 3) Aviation; 4) International Development/Partnership between citizens and government; 5) Housing/Town. By the end of March 2010, 10 meetings in total were held for the study of development strategy in MLIT. A summary of the suggestions is scheduled towards the end of May of the same year and the budget for strategy implementation will be reflected in the budget request of FY 2011. Moreover, MLIT aims to summarize the opinions regarding the Basic Act on Transportation which prescribes the basic items about traffic – the foundations for supporting development, and related policies, in May ~ June 2010. While carrying on with the preparation for submission of the bill to the ordinary Diet session, MLIT plans to reflect this in the budget request of FY 2011.

### 2. New Relationship Between the Central and Local Governments

In order to realize “Regional Autonomy Reform”, on the important issues directly linked to people’s lives, such as formation of a healthy economic society and region and ensuring safety/security, MLIT is promoting measures that must be taken on a nationwide scale or from a nationwide viewpoint. At the same time, MLIT is also planning to build partnerships with prefectures and municipalities, on the basis of appropriate role sharing between the central and local governments.

For instance, in response to the regional actualities with the forecast of increasing disparity in terms of population and financial power, it is necessary to establish a flexible standard (implementation of local rule), which enables appropriate selections. Thus, MLIT is implementing the introduction of “1.5-lane road development” though it is planning on cost reduction.

Furthermore, “Burden Charge Scheme of Direct-Controlled Business” is a system, based on laws and regulations, requesting the benefited regional public organization to bear a certain amount of the expenses of the direct control business. It is because the business’ results relate concretely to the regional public organization; though the direct control business is carried out from the nation’s viewpoint.

Starting from FY 2010, based on the “Act on the related Law Preparations for the Abolition of the Burden Charge of Maintenance Management for Prefectures related to National Direct-controlled Business”, the burden charge scheme related to maintenance management was abolished. However, having considered the decrease in business volume, the burden charge, regarding the necessary maintenance management (specified maintenance management which requires immediate action for ensuring security and safety, etc.) expenses for specified business, will still be levied within FY 2010 as an interim measure. Moreover, business management charges such as the personnel cost included in the burden charge of direct control business in addition to the grant administration expenses related to public projects were abolished. Furthermore, starting from FY 2009, the regions have not been requested to bear the burden charge of direct-controlled business including the resignation allowance and the building repair and accommodation charge.

### 3. Utilizing the Ideas of the Private Sector

Under the constraints of a declining population, an aging society with fewer children (low birthrate) and financial deficit, it is necessary to promote the essential infrastructure development with strategic focus, including maintenance management, by utilizing $ PPP^{2}/PFIs^{3} $ . In addition, in order to enter the overseas PPP/PFI market, expanded by the construction and transportation industries, it is important to acquire the know-how in our own country first. Therefore, cooperating with the related ministries and government offices, MLIT is carrying out the review of system improvement of a Public Private Partnership/Private Finance Initiative scheme (PPP/PFI) for bettering the partnership between the private sector and the government and active introduction of PPP/PFIs towards MLIT social capital improvement, through discussion in the MLIT Development Strategy Conference.

Furthermore, MLIT is implementing regulations from the viewpoint of ensuring citizen's safety/security in the area of transportation, housing and land. The regulations have been reviewed as necessary, in order to respond precisely to the changes of the socio-economic situation. As for the structural reform special region, a total of 20 exceptional measures were set up and around 200 special regions were authorized throughout the country as of the end of March 2010. Moreover, on the basis of achievements in special regions, MLIT carried out regulation reform on a nationwide scale on about 14 exceptional measures, such as enlargement of vehicles for the charged transportation of NPO volunteer transportation.