The Government has abandoned plans to replace the Government jet, only five months after it decided to buy a new 40-seater aircraft at a cost of more than €50 million.
In a move reflecting the deterioration in the public finances, the Taoiseach, Mr Ahern, had stopped the purchase "in the context of a review of expenditure and budgetary issues", a Government statement said.
However, the Government is pushing ahead with the purchase of a new eight-seater aircraft from Bombardier at a cost of about €10 million.
The Government said the new aircraft would be purchased through savings this year in the Department of Defence budget.
The Learjet 45 has a maximum flying range of 1,900 nautical miles with a full complement of passengers, meaning that it can travel to Moscow or Istanbul from Dublin. It would be sufficient to enable Ministers reach virtually all parts of the EU during the Irish presidency of the union in the first half of next year.
Such a range is far greater than that of the aging five-seater turbo-prop Beechcraft used since 1980. In addition, the Government is known to have been approached by the US-owned NetJets company, which provides an aircraft-leasing service.
The Minister for Defence, Mr Smith, said last night the decision to abandon the sale was "part of a general effort on the part of the Government at this time to ensure that we live within budgetary contraints". He said the Government was not prepared to compromise the delivery of front-line services by meeting "fairly heavy" transport requirements.
The original decision to replace the 14-seater Gulfstream IV was criticised as an extravagance by the Opposition. The criticism was renewed last night.
Labour's transport spokeswoman, Ms Roisin Shortall, claimed the purchase of the 40-seater was cancelled only because "the Government found that it could simply not secure a new jet" in the five months before the EU presidency begins.
"I am not convinced that this is a case of the Government seeing sense at a late stage," said Ms Shortall. "The plan to acquire a lavish new jet would have been an outrageous waste of taxpayers' money at a time when crucial public services are being cut back."
The Fine Gael defence spokesman, Mr Dinny McGinley, said he regretted that the Government had persisted with its plan for so long. "It would have been economic madness and highly irresponsible to commit an expenditure of €70 million, when essential services are being cut back in every area," he said.
The Government had planned to keep the Gulfstream in service for the duration of Ireland's EU presidency. It will now remain in service after the presidency.
Confirmation that the Government would not be buying a 40-seater came before yesterday's Cabinet meeting broke up.
"Tenders for the supply of the large jet had been sought and were in the course of being examined," the Government said. "The purchase will not now proceed."
While the new Bombardier jet is estimated to cost in the region of €10 million, the Department of Defence said the actual purchase price would be determined in the course of a negotiation. The aircraft can be reconfigured to carry nine passengers.
With detailed negotiations to start immediately, it is expected that the new aircraft will be operational before the end of the year.
A Department of Defence spokesman said about 80 per cent of the price would come from savings made this year through the early settlement scheme for Army deafness cases.
The remaining sums would be taken from savings due to the reduction in overseas contingents.
The Department said the contract was subject to the negotiation of satisfactory arrangements with Bombardier.
The Canadian-owned company organised the bid from its Belfast office. It said the fuselage, representing 50 per cent of the aircraft, was designed in Belfast, with parts sourced throughout Ireland.
"This has been a tough contest that has been conducted in a very thorough and competent manner by Irish Government officials," the company said.
