Minister of Land, Infrastructure, Transport and Tourism Akabane officially announced that he will provide financial support to JR Hokkaido, which continues to be difficult to manage, for more than 130 billion yen in three years from next year, and to JR Shikoku for more than 100 billion yen in five years.
JR Hokkaido and JR Shikoku, which have many unprofitable routes, are becoming more difficult to manage, with the interim settlement of accounts for this year becoming the largest deficit in the past due to the influence of the new coronavirus. Financial support will expire this year.
At a press conference after the Cabinet meeting on the 25th, Minister of Land, Infrastructure, Transport and Tourism Akabane officially announced that he would submit the necessary amendments to the law to the ordinary session of the Diet in January next year in order to continue support from next year onward.
According to this, JR Hokkaido will be provided with financial support of 130.2 billion yen in three years from next year, and JR Shikoku will be provided with financial support of 102.5 billion yen in five years.
Specifically, the independent administrative agency "Railway and Transportation Organization", which owns all the shares of both companies, will make an additional investment, and "debt equity conversion" will be exchanged for the newly issued shares of both companies. And to subsidize the interest to be repaid to the financial institution.
In addition, we will support the "Management Stability Fund" that is being operated to fill the deficit of both companies so that a certain amount of operating profit can be secured, and subsidize the repair costs of the Seikan Tunnel and Seto Ohashi Bridge.
On the other hand, JR Hokkaido will consider continuing support for the railway lines that JR Hokkaido wants to maintain while demanding a burden from the local governments and the national government along the railway lines.
Minister of Land, Infrastructure, Transport and Tourism "Support for a considerable amount of money Do everything in your efforts to improve management"
Minister of Land, Infrastructure, Transport and Tourism Akabane said, "We have no choice but to support the country as a local public transportation system. Frankly speaking, it is a considerable amount of money, but I would like you to accept the meaning of the support and make every effort to improve management." Said.