A government panel on devolution submitted its first set of recommendations to Prime Minister Yasuo Fukuda in May, the main pillar of which was the call to transfer in principle the power to manage national highways and large river systems from the Land, Infrastructure and Transport Ministry to prefectural governments. Prefectural governors, however, do not appear to be enthusiastic about gaining this power and responsibility.
Behind the prefectural governors’ reluctance is a traditional view that the central government should be in charge of such matters. Another factor is a fear among governors that the transfer of management may not be accompanied by the necessary amount of money and personnel.
Prefectural governors still feel the sting of their past fight for financial resources. To accelerate financial reconstruction, the central government reduced tax-funded grants in aid to local governments by more than ¥5 trillion from fiscal 2004 to fiscal 2006. As a result, local governments are in financial difficulty. The governors likely want assurances that they will receive sufficient funds to manage national highways and large river systems.
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