The Government today scrapped plans to buy five Sikorsky helicopters on economic grounds. Three of the cancelled machines were to have been used by the marine search and rescue service.
Defence Minister Mr Michael Smith announced the move as part of a general reduction in spending by his department.
Mr Smith said: "For the last six months of the year, I have to reduce expenditure by €40 million.
"I did not have the option of looking at areas where I had already signed contracts, so the only places I could seriously look for real money were the cases where contracts for major projects had not been signed."
The Sikorsky Aircraft Corporation said in a statement afterwards that they were "surprised and disappointed by the decision to cancel the process of ordering medium-lift helicopters for search and rescue for the Air Corps."
The company added that they were now considering and reviewing their options. The Government decision was condemned by the Labour party Defence spokesman Mr Joe Sherlock, calling it "a betrayal of the Irish Air Corps and the search and rescue service."
He declared: "This is a shocking U-turn on the part of the Government that will have very serious implications for the viability of the Air Corps and for the effectiveness of our search and rescue service. Lives may well be lost as a result of this decision."