MercoPress. South Atlantic News Agency

Peru intent on austerity, to auction a “frivolity symbol”

The Peruvian government has decided to auction the presidential aircraft as part of its austerity policy announced cabinet chief Jorge del Castillo. Earlier in the week President Alan García described the aircraft as a “frivolity symbol”.

"We need an aircraft that is safe but also economic to run: no luxuries, no privileged spaces, we want to do the right things without sacrificing the scarce resources of the Peruvian state", said del Castillo. The operation will be under the responsibility of four outstanding and respected figures in Peru: public utilities rates' regulators. The Boeing 737/500 was purchased in 1996 at a cost of 25 million US dollars and has flown 3.873 hours. Del Castillo said that the selling price of the "frivolity symbol" will be invested in a new children's hospital. President Garcia said the aircraft was a symbol of frivolity of the administrations of his two predecessors, Alberto Fujimori (1990-2000) and Alejandro Toledo (2001-2006). The aircraft was purchased under the Fujimori administration with his brother Santiago Fujimori acting as the broker, who faces a trial on claims of over pricing. President Toledo was also very keen of the Peruvian Air Force 1 having flown to the exclusive sea resort Punta Sal in northern Peru 97 times according to official records. The Peruvian treasury has spent so far 54 million US dollars in keeping the aircraft in flying conditions. In related news, President Garcia's support dipped to 50%, 13 points less than when he was inaugurated six months ago according to the latest survey published Sunday in Lima's main newspapers. Disapproval of Garcia has climbed to 37% and confirms the descending support curve since the last survey in December. However in Lima President Garcia's support is closer to 60% Overall the Peruvian Executive has a 55% approval and 40% disapproval. Congress 35% positive and 50% negative and the Judicial branch 20% positive and 69% negative. As to the Peruvian politicians with a future the opinion poll has Lima's mayor Luis Castañeda leading with 53%; Social Christian leader and twice presidential candidate Lourdes Flores, 38%; populist leader Ollanta Humala 24% and Keiko Fujimori, a member of Congress and daughter of former president Fujimori 19%. Meantime Peru's Statistics Institute revealed that the economy expanded 8% in 2006, the highest in ten years. Peru has thus completed eight years (66 months) of uninterrupted growth. Construction, retailing and services were the most dynamic sectors in 2006 having expanded 14.74%, 12.11% and 8.25%. Growth forecasts for 2007, both from government specialized offices and the private sector, are in the range of 7%.