Treasury Suspends $12.6 Billion in Spending Projects, Axes Other Programs - D'OH!
U.K. Chief Secretary to the Treasury Danny Alexander suspended 12 projects costing 8.5 billion pounds ($12.6 billion) announced by the previous government and cut completely other programs totaling 2 billion pounds.
Most of the money affects one contract, to supply search- and-rescue helicopters to the defense ministry and the Department for Transport. The 7 billion-pound project, which will now be reviewed, is with the Soteria group made up of CHC Helicopter Corp., Thales SA, Royal Bank of Scotland Group Plc, and Sikorsky, a subsidiary of United Technologies Corp. Deliveries under the planned 25-year deal were scheduled to start in 2012.
“These decisions will significantly relieve burdens on departmental budgets that will be significantly under pressure,” Alexander told lawmakers in Parliament in London today. He said the contracts canceled “do not represent good value for money.”
The announcement comes five days before Chancellor of the Exchequer George Osborne is scheduled to make an emergency budget speech in Parliament setting out measures to reduce Britain’s record budget deficit. [...] go read the rest
Bummer. What's that about socialism? Everyone runs out of other people's money?
The Snooper Report.
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