Cabinet decision on amendment to expand financial support to JR Hokkaido and JR Shikoku Government

The government decided at a cabinet meeting on the 29th to revise the law to expand financial support to JR Hokkaido and JR Shikoku, which continue to be difficult to manage.

JR Hokkaido and JR Shikoku, which have many unprofitable routes, are becoming more difficult to manage due to the influence of the new coronavirus, but the financial support of the country based on the law will expire this year.

For this reason, the government has put together a bill to amend the law necessary to extend the deadline and expand support, and a cabinet decision was made on the 29th.

In the amendment, the independent administrative agency "Railway and Transportation Organization", which holds all the shares of both companies, will make an additional investment and "debt equity conversion" to exchange the debts of both companies for newly issued shares. It includes what you do and subsidize the interest you pay back to your financial institution.

In addition, the Management Stability Fund, which is being operated to make up for the deficits of both companies, will support the securing of a certain amount of investment profit and will also subsidize the repair costs of the Seikan Tunnel and Seto Ohashi Bridge.

Through these measures, the government will provide JR Hokkaido with financial support of 130.2 billion yen over the next three years and JR Shikoku with 102.5 billion yen over the next five years.

This amendment will support the opening of the Hokuriku Shinkansen between Kanazawa and Tsuruga, which will be affected by another year, and will invest in the third sector, which operates parallel conventional lines in Fukui and Ishikawa prefectures. It also includes what to do.

The government intends to submit an amendment to this law to the ordinary session of the Diet, which is currently being held, with the aim of enacting it.

Minister of Land, Infrastructure, Transport and Tourism Akabane "Supporting more than ever"

Minister of Land, Infrastructure, Transport and Tourism Akabane The lowest since 2013 was at a press conference after the Cabinet meeting on the 29th, "How to protect tourism resources and the legs of the region, not whether it is a country or a region, but a united effort. We will go even further and provide support, "he emphasized the need to expand support.