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Dáil Éireann debate -
Wednesday, 15 May 1996

Vol. 465 No. 4

Adjournment Debate. - Jet Contract Award.

The main point at issue in this matter is why the Government has placed a contract for the supply of an executive jet with a British company for the duration of the EU Presidency when an Irish company has tendered and is suitable and cost effective. The EU Presidency is the attraction holding the Government together — the political super glue for the three parties who have more interest in perks than the welfare of Irish companies. Every effort should be made to ensure that Irish companies derive maximum benefit and exposure from the prestigious EU Presidency.

While it is a direct insult to Wester Aviation to have been treated in such a cavalier fashion, it also illustrates grave insensitivity to the needs of Irish companies that the Government chooses to be ferried around Europe under the flag of another State while jobs which could be created in an Irish company based at Shannon are spurned. Wester fears a threat to its existing business by this signal from Government. Prospective customers will wonder what is the problem. I have taken the trouble to check with some of its customers and they have no complaints. However, the Minister must also clarify the issue.

It is strange that tenders were sought as the service is only to be used on an "if and as required" basis. The Government could have shopped around and made use of available services as the UK company will do.

The second point at issue relates to the specification which accompanied the Department of Defence tender documents. Item 7 required full details of the proposed crews and item 12 sought the date when the aircraft would be in the tenderer's possession. My information is that the successful UK company, Hunting Aviation, does not own or operate any executive jets. How will it comply with these conditions? It will have to sublease whatever aircraft may be available and whatever crew can be obtained.

During the last Irish EU Presidency a US jet was chartered and crewed by the Air Corps. Other States when leasing jets for Government work get over the difficulty posed by EU competition laws by inserting a security clause which effectively subjects crew members to a state security check and, generally, favours their own nationals. Was it too much to ask that the Government do likewise? Does the national interest mean anything anymore?

On the specifications, the main question is whether changes were made when the process of tendering was completed. Were concessions made to a UK company which were not granted to Wester? I hope the Minister will clarify the matter and withdraw any perceived slight on Wester.

The third point at issue is the reasons offered for rejecting Wester. First, it was indicated that its executive jet was unsuitable as it was restricted at some airports from 11 p.m. to 6 a.m. and, second, it was stated that no back-up was available. Neither requirement was mentioned in the tender specifications nor raised in discussions with Wester. Neither posed an insurmountable difficulty and if other contract conditions could be breached to accommodate a UK company, Wester should have been given the same opportunity. One wonders about the likelihood of flights during the restricted hours and on the rare occasions they might have occurred, Wester could have provided a suitable jet. The fact that back-up was available was known to the Department.

When these two reasons for awarding the contract outside the State began to run aground, a new one surfaced — that the contract was awarded to the company which could provide the best value for money. I have established that the cost differential in favour of Wester, as opposed to a major UK company, for a flight to Heathrow, comparing like with like, is approximately 60 per cent — £3,100 for Wester as against £8,000 for the UK company. This arises mainly because of extra costs due to positioning aircraft from a UK base.

Would the leader of any other EU state use an Irish registered jet to fly his Ministers around Europe? Is it too late in this case for the Government to support the Irish company? The Minister should examine the matter thoroughly and ensure this does not recur.

I welcome the opportunity to clarify this matter. The main obligation on any Presidency is to ensure an efficient and effective approach to the discharge of the business of the European Union. The issues which will be priorities for the European Union and for Ireland during our Presidency are set out in the White Paper on Foreign Policy. Dealing with these issues will necessitate the attendance of Government Ministers at a range of meetings in various countries during the course of the Presidency. In this context, it is expected that there will be a substantial increase in the level of air transport to be undertaken by Ministers this year.

In 1990, when Ireland last held the Presidency of the EU, the Air Corps operated three aircraft for ministerial air transport. These aircraft were a HS 125, a Beechcraft and a leased Gulfstream III with transatlantic capabilities. Following the purchase of the Gulfstream IV aircraft, the HS 125 was disposed of and the Gulfstream III was returned to its owners. Since then, the Air Corps has provided the ministerial air transport service using the Gulfstream IV and the Beechcraft.

Taking into account the experience of the EU Presidency in 1990 and the expansion of the Union since then, it is clear that these aircraft will not be able to meet all the ministerial air transport demands which will arise in the build up to, during and immediately following the period of the Presidency. Having considered a range of options, including the possible lease of an aircraft to be flown by the Air Corps, it was decided that the use of an air taxi service would be the most suitable way of meeting all additional requirements.

A tender competition was held by the Department of Defence in accordance with EU competition regulations for the provision of an air taxi service capable of carrying up to eight people to all major cities within the European Union. The competition was advertised in the European Journal in February 1996 with a closing date for the receipt of tenders of 11 April 1996. In accordance with EU requirements, the award criteria were set out as being the most economically advantageous offer in terms of price, quality of service offered and ability to meet the specification. A total of 18 sets of tender documents were issued to interested parties by the Department of Defence and seven tenders were received. Does the Deputy seriously suggest that we should not or must not put such a service out to tender? His expression that we should have "shopped around" smacks of a typical Fianna Fáil attitude to something like this. Definite procedures are in place which must be complied with and followed. That is what occurred in this case.

Look after the British.

The tenders were fully evaluated on financial and technical grounds by the Department of Defence. The Deputy referred to value for money which was the sole criterion which governed the decision to put this service out to tender. This evaluation involved consultation with the Irish Aviation Authority and the Air Corps. Following the evaluation, the contract was awarded on the basis of the award criteria to which I have already referred. It is not the practice to disclose details of any particular tender received. The overall cost of the air taxi service will be dependent on the number of flying hours involved.

The criteria for the use of Air Corps aircraft for the transport of Ministers have been set down by successive Governments. The use of Air Corps aircraft for ministerial transport takes into account many factors such as the priority of the Ministers' engagements, the demands of Ministers' schedules and the availability and suitability of other travel arrangements. These factors will also be taken into account when a request for use of the air taxi service by the Ministers is received. The air taxi service will mainly be used when the Gulfstream IV and the Beechcraft are already in use or when they cannot fulfil the requirements of a particular mission.

The subject of the air taxi service was raised during consideration of the 1996 Defence Estimates at yesterday's meeting of the Select Committee on Legislation and Security. On behalf of the Minister for Defence I will take this opportunity to correct certain erroneous reporting of his reply to a question raised by a member of the Committee. Specifically, when dealing with the question as to whether consideration was given to leasing an aircraft to be operated by the Air Corps, the Minister indicated that this had been considered and that the cost of this option could be some 30 per cent dearer than the air taxi option. It has been reported that the Minister made a statement regarding the relative cost of tenders received for the provision of the air taxi service. This is not the case.

There are considerable demands and pressures placed on any Government dealing with the Presidency of the EU. I am confident that the provision of an air taxi service will prove a valuable and most cost-effective asset in assisting Ministers to deal with the many tasks which will arise during what we hope will be a very successful Presidency from Ireland's point of view.

Deputy Cowen was selected by me to raise a matter on the Adjournment. However, as the Deputy was ordered to withdraw from the Dáil, the matter may not now be raised.

The Dáil adjourned at 9.05 p.m. until 10.30 a.m. on Thursday, 16 May 1996.

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