A day after the formation of a historic government that ousted the Liberal Democratic Party from power, new Cabinet members started work Thursday on reversing government policies ranging from a controversial dam project to postal privatization.

In line with the party's campaign pledge to review wasteful public works projects, newly appointed transport minister Seiji Maehara said the government plans to scrap the Yamba Dam project in Gunma Prefecture and consider offering compensation to local residents by passing a new law.

Maehara also said the ¥265 billion Kawabe River Dam project in Kumamoto Prefecture also will be scrapped.