A bill to amend the law to expand financial support for JR Hokkaido and JR Shikoku, which continue to be difficult to manage, was passed and passed at the House of Councilors plenary session on the 26th.
The country will be able to continue to provide financial support to both companies until 2030.
As a support measure, the independent administrative agency "Railway and Transportation Organization", which holds all the shares of both companies, will make an additional investment in both companies, and "debt equity" will be exchanged for the newly issued shares of both companies. It includes what to do and subsidize the interest that both companies repay to financial institutions.
In addition, we will support the "Management Stability Fund" that is being operated to fill the deficit of both companies so that they can secure a certain amount of investment profit, and also subsidize the repair costs of the Seikan Tunnel and Seto Ohashi Bridge.
Through these measures, the government will provide JR Hokkaido with 130.2 billion yen in three years from the new fiscal year, and JR Shikoku with 102.5 billion yen in five years, both of which are the largest financial support ever.
Both companies, which have many unprofitable routes, are suffering from worsening management due to the influence of the new coronavirus, and the focus will be on whether they can use this support to pave the way for independent management.