As Japan Post explores ways to offset losses through new businesses using vacant space and online medical consultations, debate is spreading over the use of public funds to maintain local public services.
As the volume of mail declines, Japan Post is working to make effective use of vacant space and considering new businesses, including the installation of self-storage facilities. The decline in mail due to digitization is cited as a factor behind the widening losses, and the company is described as continuing to face difficult financial conditions even after privatization.
Post offices in Tokyo have launched a vacant-home monitoring service. Available from ¥4,280 per month, the service has post office employees visit properties to check keys, inspect the grounds for abnormalities and tend to overgrown weeds. The company is emphasizing its intention to expand its new businesses while refining them through trial and error.
An example of online medical consultations being provided inside a post office in a rural area is also introduced. In areas without a doctor, the post office serves as the point of contact, with post office employees assisting by checking health insurance cards and supporting consultations as the medical service is provided.
The government has decided to provide Japan Post with approximately ¥65 billion a year in grants to maintain the regional postal network. Experts say it is difficult to reconcile public services with private-sector profitability, and point out that the appropriateness of using public funds and the impact on competition with other companies require discussion.