8. 2　Reconstruction Measures

8. 2. 1　Flexible Operation of Railroad Tariff System

　 　On 9 Desember 1977, the 83rd Diet amended the Japanese National Railways Tariff Law and the Japanese National Railways Law to permit JNR to change its tariffs when- ever necessary and to permit it to engage in a wider scope of activities than that previously permitted by law. Unfettered from the formalities which have to be followed to act, JNR has now become an independent autonomous body.

8. 2. 2　Implementation of Administrative Improvement Plan by JNR

　 　Encouraged by a partial amendment of the Japanese National Railways Law in November 1976, JNR formulated an Administrative Improvement Plan upon approval of the Transport Minister. The plan identifies the measures to be implemented by JNR itself by fiscal 1980. Achievements in 1977, the first year, were far below the target, however.

8. 2. 3　Administrative and Fiscal Measures

　 　In FY1977, the government gave subsidies to JNR for construction work and con- struction and reconstruction of traffic facilities in major cities, special grants for local lines, etc. In FY1978, five subsidies including that for disaster prevention work, were planned for JNR. It is necessary to establish rules concerning subventions to JNR after determining the causes of structural deficits.

8. 2. 4　Basic Policies for Reconstruction of Japanese National Railways (Decided by the Cabinet)

　 　On 29 December 1977, the Cabinet decided Basic Policies for Reconstruction of Japanese National Railways. It intends to formulate basic concepts for JNR's reconstruction from perspective strategies, and to identify goals and objectives.
　 　Functional policies win be established in FY1978 and 1979 with a view to balancing the income and expenditure around the turn of the century.