Sunday May 27, 2012

Noda orders freeze on Saitama housing facility for public servants

TOKYO —

Prime Minister Yoshihiko Noda on Monday ordered that the construction of a housing complex for public servants in Asaka, Saitama Prefecture, be halted for at least five years as the government looks for ways to raise extra revenue to fund reconstruction efforts.

Noda visited the site Monday. After returning to Tokyo, he instructed Finance Minister Jun Azumi to freeze construction of the 10.5 billion yen complex, NTV reported. Noda came under fire from opposition lawmakers during questioning in the Diet last week over the housing facility which was described as a waste of taxpayers’ money.

Noda also told reporters that the government will review the status of housing for public servants nationwide by the end of the year, NTV reported.

The Asaka project was frozen in 2009 after the DPJ came to party. A budget screening committee included it in a list of projects to be halted. However, work began again last year under the government of Prime Minister Naoto Kan, while Noda was finance minister.

Meanwhile, NHK reported that there are around 218,000 housing units for public servants and bureaucrats nationwide. In Tokyo, there are about 3,000 units.

Japan Today

  • 4

    globalwatcher

    Abolish the housing for public servants nationwide forever to cut government spending.

    These public servants need to live like everyone else in Japan.

    These public servants seem to have a different mind set; a welfare mentality. Japan needs to be bold for drastic changes in public spendings, these public servants will eventually tank Japan to a default. Get rid of non performing bureaucrats , agencies and politicians by 10-15% before tax hikes. That's the leverage the voters should ask in exchange of tax hikes to restore Tohoku.

  • 5

    Yubaru

    Where I live it used to be that government employees could live in public housing regardless of their income. I knew one family where the father, mother, and 2 sons, were all government employees and were only paying something like 40,000 per month rent, while their total income was well over 1,000,000 yen per month.

    Truly needy people, poverty level incomes, living on pensions, the disabled, were unable to move into the public housing because of folks like this.

    The city got smart and started making everyone who lived in public housing pay rent based upon the total household income. Needless to say the family I mentioned first moved out in days after the new regulations went into effect. I heard from a friend that they paid cash for a new house that they had built in one of the more expensive areas of the city.

    Government subsidized housing should be reserved for those who are truly needy and not given as a perk for working on the backs of the taxpayer. They continually forget who pays their paycheck and are many times arrogant as heck when dealing with the public that supports them. It's nice to see Noda doing something constructive!

  • 0

    some14some

    It's nice to see Noda doing something constructive!

    ? just delayed by 5 years. construction/housing plan is not scrapped. I do agree with your comment 'in principle' but not practical in any capitalist country.

  • 0

    globalwatcher

    They continually forget who pays their paycheck and are many times arrogant as heck when dealing with the public that supports them

    Yubaru, right on.

    Serving for public is a previledge, not an entitlement. There are many non performers in public sector who have been getting away with murder. You guys need to overhaul BIG from public sector and government subsidary entity such as TEPCO. Otherwise, a 200% sovereign debt of Japan (Greece-160%) will be severe and bigger like tons of iron bars hung around your necks prohibiting Japanese economy from moving forward. Hope Noda and his cabinet members are courageous enough to cut these non performing public employees and their benefits.

  • 2

    hatsoff

    Just been watching the report on this news on TV. The TV crew went to another site in Marunouchi (central Tokyo), where the proposed 3LDK apartments would be rented to public servants for just 40,000 yen per month. The crew confirmed with a local real estate agent that commercial rents would be at least 200,000 yen per month.

    Kudos to Noda for stopping this. Now we need to see the plan scrapped completely.

  • 1

    globalwatcher

    not practical in any capitalist country.

    some14some, many newly elected US congressmen are using their offices in Washington DC as a place to sleep and live.They set up mattresses and sleep right next to their computers, telephones, coffee makers, shaving kits on their desks. They take a shower in the capitol building. It is so amazing to learn these Japanese public servants are getting special treatments. Only in Japan, not in USA,

  • 1

    Serrano

    Does this mean the start of the end of the free ride for public servants?

  • 1

    globalwatcher

    Serrano, I hope this is a beginning of end for free riders in public sector. Social justice will come to Japan. Let's freedom ring!!

  • 1

    CrazyJoe

    Up to another 4 billion yen in taxpayers money will be wasted to pay for damages (compensation) to the contractors (companies) involved. Get rid of the government subsidies for political parties.

  • 0

    marcelito

    I hope you guys are right and something will change...the public service leeches have kept perks like this for themselves as if Japan was still prospering like in the bubble era...but hey ,,,TIJ so we shouldn,t expect too much

  • 0

    globalwatcher

    where the proposed 3LDK apartments would be rented to public servants for just 40,000 yen per month. The crew confirmed with a local real estate agent that commercial rents would be at least 200,000 yen per month.

    Y200,000-Y40,000=Y160,000 each

    Who pays? You pay!

  • 1

    gyouza

    paying something like 40,000 per month rent, while their total income was well over 1,000,000 yen per month

    Not doubting that some reach this level, but not the vast majority - would be interested in your source of info though.

    The whole system is the issue. As I understand it, salaries are kept low and this is seen as a housing susidy. The way it is supposed to work is that he employee pays less in tax as their base is low, and they don't get taxed on this benefit. Many companies offer similar schemes, and even a few still actually own housing blocks to house their staff (there are some across the street from me) and these are definitely NOT luxury items. Where things fall down though, and it doesn't seem to be picked up here, is that the management infrastructure of this outweighs the benefits. So they need staff to actually run the scheme, making it more expensive than just giving the money as part of the employees salary (and the knock on effect of tax revenues as well!).

    More companies are now realising the burden, and shifting strategies, and even the government too. They recently shut down the finance ministry homes in Toshima ku. I thought it was a slum it was that run down. I certainly wouldn't choose to have lived there.

  • 1

    Scrote

    If building the apartments is a waste of money now, surely it will still be a waste of money in five years time.

    They should build the apartments now, make TEPCO pay the construction costs and use them to house people evacuated from Fukushima.

  • 0

    BurakuminDes

    Public servants here have had their snouts in the trough for far too long. I hope Noda cuts their benefits and entitlements with a sharp razor - all over Japan. There is a culture of "the country/government owes me a living until I die" here - and in other rich countries - which must be stopped.

  • 0

    Elbuda Mexicano

    These so called public servants are a bunch of lazy no good parasites!!!

  • 2

    CrazyJoe

    Public servants annual salary (average) in 2010 was 6.58 million yen. By the way, NHK employees annual salary (average) in 2010 was 10.41 million yen.

  • 1

    Yubaru

    Not doubting that some reach this level, but not the vast majority - would be interested in your source of info though.

    If you read my post I told you their total income was over 1,000,000 yen per month for 4 people. Dad was Bucho class, Mom was a JHS vice principal, 1st son was kakari-cho level, and 2nd son worked as a cop. They had money.

  • 0

    Patrick Smash

    CrazyJoe, was that before overtime, bonuses and cheap housing were factored in though? Just curious as I know some public servants on very high salaries who get subsidized housing, and I know where they live. Their mansions have gyms, restaurants and swimming pools in them...

  • 1

    smithinjapan

    I say build it... and let the people still stuck in shelters live there until they can prop themselves up. Don't allow public servants to live there at the cost of half of what their normal apartments would be while their salaries are quadruple that of the needy who can't find a decent place to stay at all.

  • 1

    Michael J. Morris

    Hatsoff, I think the price of Y200 000 for a 3LDK in Marunouchi, is way off. I think it would be more like Y500 000. I know people living in one room mansions paying Y90 000, and not in the center of Tokyo. Crazy Joe, where did you get those numbers, not that I don't believe that NHK workers get a lot of money, but I think that public servants average much more than that. I understand that a long time ago, soon after the war, public servants needed help finding housing, but that was half a century ago, times have changed, so should the gov't.

  • 0

    CrazyJoe

    @Patrck Smash

    Annual income here means total income including bonuses, etc. Income before taxes.

  • 0

    CrazyJoe

  • -2

    Disillusioned

    Oh, but Japan is such a rich country! NOT!

  • 0

    GW

    Folks do you know that it was NODA himself who as minister of Finance OKAYED the start of this just recently, now he is putting a stop to it ..............

    Its long high time civil thieves were made to pay their own bloody way, this is all part of the waste & thieving I rant on about, its unfair as hell & I no longer wanna pay for this crap!

  • 0

    ubikwit

    a contrarian comment.

    no one has touched on the fact that some public servants are transferred from station to station, and if there are no pre-established housing that facilitates such transitions, the tax payers are going to end up paying ridicules funds to cretins like real estate brokers (large yakuza presence) to make housing arrangements for public servants in the areas they are newly stationed.

    so, there may be a positive side in terms of cost-benefit analyses to maintaining some sort of government housing for public servants.

    incidentally, not all public servants live in government housing at present. in fact, in my personal experience only a small percentage do--perhaps those who work for higher level ministries who do get transferred aound a lot because they perform supervisory functions for the central government.

    so, in the case of marunouchi, by owning a building and housing public servants near their offices, there are various efficiencies involved. and not the least of which is keeping real estate speculators in check, preventing them from trying to influence policy in order to capitalize at the expense of the public. and it reduces the governments carbon footprint by reducing the commute times/distances of the public servants.

    in the case of the current facility will spur development in the area in which the development is being made. the government doesn't generally by land in overpriced areas. the buildings in maunouchi have probably been owned by the government since the end of wwii.

  • 0

    theeastisred

    Public sector workers living in these places should be given a bit of warning, and possibly some compensation in extreme cases, and then given a choice of moving out, paying a commercial rent, or buying the property for a commercial price. In some cases it won't make sense to rent out or sell units individually, so the whole property should then be sold for redevelopment. An alternative use would be to divert some units, with their low rents, to provide social housing for the needy. But no new such developments should be built, and the goal would be to end up with the government no longer owning any of these properties, except the ones retained as social housing. Result: some sale proceeds, more revenue, less management time needed, more social housing. It would require management of the process initially, but this would not be an ongoing burden. We all win.

  • 1

    hatsoff

    Folks do you know that it was NODA himself who as minister of Finance OKAYED the start of this just recently, now he is putting a stop to it

    GW, spot on. But what a palava the whole affair is - first, the LDP started the project, then DPJ Hatoyama stopped it, then DPJ Noda started it again, then the LDP protested against starting it again, then DPJ Noda stopped it. This is from the other JT:

    The construction plan was suspended once in November 2009 under then Prime Minister Yukio Hatoyama when a budget-screening panel launched by the Democratic Party of Japan-led ruling bloc decided the housing was unnecessary.

    But last December, the Finance Ministry, then headed by Noda, decided to resume the project, promising to slash overall construction of new housing for public servants at the same time. Construction restarted last month.

    This drew fire from the opposition parties, among them the conservative Liberal Democratic Party, which got the ball rolling on the housing complex before the DPJ finally ousted it from power after five decades of virtually unbroken postwar rule.

    On Wednesday, LDP member Yasuhisa Shiozaki said to the Lower House Budget Committee: "Why the construction at this time? Among the Group of Seven industrialized nations, Japan is the only one providing housing to public servants and members of the legislature. The construction should be stopped right now and the funds used for reconstruction."

    I find the point about Japan being the only country in the G7 that subsidizes housing for public servants and members of the legislature in this way interesting.

    Ubikwit's post above is also interesting, but those who get transferred to different areas tend to be higher ranking public servants with correspondingly higher salaries. I don't see why taxpayers should subsidize them. They can easily commute from the suburbs each day like everyone else. A few more people on the train won't make a difference to energy costs.

    CrazyJoe points out that the average public servant salary is 6.58million per year, and if memory serves me correctly, the average national salary is around the 3 million mark (sorry if I'm wrong). I'd prefer to see lower-paid essential workers like nurses and care workers for the elderly benefit from subsidies rather than public servants.

  • 0

    zichi

    I find the point about Japan being the only country in the G7 that subsidizes housing for public servants and members of the legislature.

    Japan isn't the only country which subsidises housing for the legislature. This happens in other countries too, for instance in Britain, and last year several politicians went to prison for lying over their housing expense claims.

    The unique part in Japan is the way workers can so easily be transferred to a new location.

  • 1

    Ranger_Miffy2

    If all the subsidized housing was banished, I predict a sudden end of the many usurious rental practices here. Just dreaming my little dream, although I did refuse to pay the one-month fee just for the privilege of renewing my rental contract last year...and also refused to pay the guarantor fee again. Everyone, stand up against those evil practices! Or, go work for the gummit... :-)

  • 1

    kurisupisu

    When will he unfreeze it I wonder?

  • 0

    JeffLee

    "Some public servants are transferred from station to station"

    But the vast, vast majority are not. People in the private sector tend to be uprooted and bounced around more than those in the public sector. If fees to agencies ("yakuza") are to be paid, then let the workers themselves paid it out of their own pockets. That's what I've had to do throughout my working life.

  • 1

    PT24881

    The public servants' housing project and the reconstruction for Tohoku -- one can hardly observe how Japan, yes Japan the G7 member nation, will have to squeeze the proportionally limited housing budget for reconstruction-- cannot really understand, the then finance member Mr. Noda who allowed the project to be resumed under the MP Naoto KAN, he put a halt to the project were it not for a political show ( may be I am too suspicious ! )..

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