Storm clouds gather over Government

AS Government ministers headed for the beach after yesterday’s final Cabinet session, clouds were gathering over their plans for a long, relaxing holiday stretching well into autumn.

The first clouds began to gather as ministers sipped morning coffee in the luxurious surroundings of Farmleigh House when it emerged the National Pension Reserve Fund had lost almost 750 million over 16% of its value due to the poor performance of stock markets.

In the afternoon, the clouds thickened when the Central Bank issued a gloomy economic forecast pitching economic growth at 1.5%. Taking the optimistic view, this still represents growth but it is substantially down on the 6% level recorded in 2001.