Major cuts in the air as jet plans grounded

THE growing economic crisis crash-landed plans to buy a new Government jet yesterday, but the cancellation of the order signals a spate of cutbacks in the months ahead.

The Cabinet agreed yesterday not to spend the estimated 50 million it would cost to replace the Gulfstream IV, in light of the poor state of the nation’s finances, just as the Central Bank delivered a blow to the Government’s budget planning by cutting its forecasts for economic growth.

Significantly, the decision not to proceed with buying the 40-seater jet was attributed to Taoiseach Bertie Ahern, but a second smaller plane, a nine-seater Bombardier Lear Jet made in Belfast, will still be bought for around 10 million.