Analysts have attacked the bill, arguing that it does not go far enough toward making BOJ a truly independent agency. The finance minister and the head of the Economic Planning Agency not only will be members of the Policy Board, but they also can seek a delay in implementing any Policy Board decision. Lifting the postwar ban on holding companies remains controversial despite the LDP's determination to push ahead. Large Japanese multinational firms welcome the proposed change, saying that it will help them remain internationally competitive. Although the LDP has submitted legislation to the Diet to drop the holding company ban, key related issues still must be resolved.
Corporate executives maintain that holding companies are pointless without the group tax advantage.
Government corporation disclosure - Also on March 11, the Hashimoto cabinet submitted a bill that would force government corporations to disclose seven types of financial information. Recent scandals involving ministries and agencies have made the public and politicians skeptical about the government's honesty. Telecommunications market reform - The cabinet voted March 14 to send to the Diet a bill that would restructure the nation's biggest telecommunications firm. The pending restructuring of NTT is another milestone in Japan's efforts to make both the domestic telecommunications market and industry players more competitive. The breakup remains controversial, however, because of its wide-ranging impacts.