THIS ARTICLE SURVEYS THREE MAJOR GOVERNMENT POLICY INITIATIVES AFFECTING SWEDISH RAILWAYS (SJ) BETWEEN 1979 AND 1988, ALL OF WHICH SOUGHT TO ADJUST PRODUCTIVITY, DEGREE OF SELF FINANCING AND MARKET SHARE IN PASSENGER AND FREIGHT TRANSPORT. AS A RESULT OF THE 1979 INITIATIVE, THE NATIONAL RAILWAY NETWORK WAS DIVIDED INTO A COMMERCIAL NETWORK 'AFFARSBARENATET', AND A GOVERNMENT SUBSIDIZED NETWORK OF LINES MAINTAINED FOR SOCIAL REASONS, THE 'ERSATTNINGSBERATTIGADE'. A LOW-FARE POLICY WAS INTRODUCED, RESULTING IN A PASSENGER KILOMETRE INCREASE OF 30% FROM JULY 1979 TO JUNE 1980. THE GUIDELINES FOR RAILWAY POLICY, 1985, GAVE SJ FREEDOM TO SET PRICES; A SPECIAL COMPANY WAS FORMED FOR COMBINED TRANSPORT WITH A SEPARATE DIVISION FOR ORE TRAFFIC. BY 1985 SJ'S SHARE OF THE LONG-DISTANCE FREIGHT MARKET HAD INCREASED TO 45%. 'TRANSPORT POLICY FOR THE 1990'S', THE GOVERNMENT BILL OF 1988, PROPOSED THE DIVISION OF SJ INTO A RAILWAY AUTHORITY, 'BANVERKET', RESPONSIBLE FOR RAILWAY INFRASTRUCTURE AND 'AFFARS-SJ', A MAINLY COMMERCIAL RAIL TRANSPORT ENTERPRISE OF 4 DIVISIONS, WHICH WILL RUN THE SERVICE ON BANVERKET'S TRACKS, AND WOULD BE CHARGED FOR DOING SO. THE COUNTIES WILL EXTEND THEIR RESPONSIBILITY FOR PUBLIC TRANSPORT BY ROAD TO INCLUDE REGIONAL PASSENGER TRAIN SERVICES. THERE IS TO BE AN ENQUIRY TO CONSIDER THE POSSIBLE MERGING OF VAGVERKET, AND NATIONAL ROAD ADMINISTRATION, AND BANVERKET.
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