The decision to cancel the tender competition for the acquisition of medium lift helicopters for the Air Corps in July 2002 was taken due to budgetary constraints which meant that the level of Defence expenditure had to be reduced. Any decision to acquire medium lift helicopters for the Air Corps in the future can only be taken as the financial resources permit.
The decision to cancel the tender competition was an extremely difficult one for me. I regarded the acquisition of the helicopters for the Air Corps as a priority. When the decision was made, I asked my officials to initiate a review of the provision of helicopters services, in conjunction with the Department of Communications, Marine and Natural Resources, to determine how best to meet the State's obligations in search and rescue, while taking account of the current financial position.
An inter-departmental working group was established to seek alternate solutions to the funding issue, such as public private partnerships or leasing arrangements, with a view to providing helicopters for the Air Corps by other means. The PPP unit in the Department of Finance is also involved in assessing possible solutions. This work is at an early stage.