The government is making adjustments to provide financial support to JR Hokkaido, which continues to be difficult to manage, over 130 billion yen over the next three years, and to JR Shikoku at around 100 billion yen over five years.
JR Hokkaido and JR Shikoku, which have many unprofitable routes, are becoming more difficult to manage due to the influence of the new corona, but the financial support of the country based on the law will expire this year.
The government plans to continue financial support to both companies from next year onward, and according to the people concerned, the scale is
▼ about 130 billion yen for JR Hokkaido in the three years from next year, and
▼ 1000 for JR Shikoku in five years. It
means that adjustments are being made in the direction of
more than 100 million yen
.
Specifically, the independent administrative agency "Railway and Transportation Organization", which owns all the shares of both companies, will make additional investment and exchange the debts held by both companies for newly issued shares. It is being considered to carry out the conversion and to subsidize the interest to be repaid to financial institutions.
In addition, we will continue to support the "Management Stability Fund," which is being operated to fill the deficits of both companies, to secure a certain amount of investment profit, and also to subsidize the repair costs of the Seikan Tunnel and Seto Ohashi Bridge.
The government will announce these policies on the 25th, and will submit a bill to amend the law necessary for continuing support to the ordinary session of the Diet in January next year.