Leaders of the ruling coalition on Thursday approved Prime Minister Junichiro Koizumi's blueprint to abolish or privatize seven major government-backed corporations.
New Komeito leader Takenori Kanzaki and New Conservative Party chief Takeshi Noda gave their consent to Koizumi's plan during a tripartite meeting at the Prime Minister's Official Residence.
The reform plan targets seven loss-making, government-affiliated firms -- four highway construction companies, a housing construction firm, a housing loan firm and an oil company. The Koizumi administration hopes it will save up to 1 trillion yen in annual government spending.