The Council for Promotion of Regulatory Reform, Japanese Government’s advisory panel, fixed on December 6 “an intensive promotion period for reforms of agricultural cooperatives (JAs)” as five years from June 2014 to May 2019, focusing a reform of ZEN-NOH (National Federation of Agricultural Cooperative Associations) or a national business organization of agricultural cooperatives.
On the other hand, the Revised Agricultural Cooperatives Act states in its supplementary provision that amendments of its related provisions and regulations regarding associate members’ patronage of the business services provided by an agricultural cooperative should be considered on the basis of performance of reforms by agricultural cooperative organizations within five years since the revised Act is enforced in April 2016.
The time schedule stipulated in the supplementary provision of the Revised Act has been confirmed by the ruling Liberal Democratic Party (LDP). The announcement made by the Government’s advisory panel on December 6 clearly showed a difference on views regarding the reform schedule of JAs’ organizations between LDP and the Government. Stakeholders are growing concerns that the difference will spark the controversy in a near future.
At a press conference held on the same day, the panel’s chairperson, Hiroko Ota, stressed that ZEN-NOH would be required to complete its reforms by May 2019.
She avoided a definite statement on the reform schedule of other JAs’ organizations. The advisory panel chaired by her will possibly continue to press JAs’ organizations for their radical reforms during years to come.