Call for probe into air sea rescue deal
Senator urges delay in awarding €1billion tender to copter firm
CALLS have been made to pause the awarding of a €1billion Sea Air Rescue contract pending a review of the last one.
It was worth more than €1million a week to Canadian Helicopter Corporation Ireland.
Senator Gerard Craughwell said he had a number of questions about the old contract and he is calling for a halt as CHC is the frontrunner to win the new tender too.
He claims the previous deal included payments for the depreciation of five new Sikorsky helicopters that will now stay with CHC Ireland as the contract ends.
The copters could still be worth tens of millions depending on the resale value.
The Dail’s Public Accounts Committee is being urged by Mr Craughwell to examine in detail the previous contract and to stall the renewal of it to CRC.
The independent Senator and former Defence Forces member also wants the Air Corps to be considered for the new contract.
Mr Craughwell has written to the chairman of the PAC, Brian Stanley, and Taoiseach Micheal Martin about the issue.
He said in the letter: “The current Search and Rescue contract with CHC will run out in 2022.
“The contract which was originally costed at €523million but will run to over €600million when it ends.
“It will be, for all intents and purposes, a scandal similar to the National Children’s Hospital without the hospital as an end product.
“I understand that the 2023 contract is due to go to tender in the very near future.
“I respectfully request that the Public Accounts Committee immediately review the last contract which I believe was far from value for the Irish taxpayers in order to inform the outcome of the next contract.
“I understand that in 2012 the cabinet signed off on a contract with CHCI for Search and Rescue Services using five helicopters.
“The winning tender CHCI was concerned about the capital costs of taking on the contract and sought an upfront capital payment which I find extraordinary as surely the company should have had the resources to take on the contract and provide the aircraft or they did not.
“The contract awarded was for the sum of €523million over 10 years but as already stated it will run to several million beyond this.
“Notwithstanding the upfront capital investment by the Irish Government on behalf of CHC, if this company fail to retain the Irish contract for SAR in 2023 they walk away with an asset [the helicopters] which may be worth some €125million on top of whatever profits they have already earned.”
In his letter to the Taoiseach, Mr Craughwell added: “I, along with others have been advocating for the use of the Air Corps in SAR. Taking this approach will I believe open up the tender process for a greater number of civilian SAR operators tendering for the contract.
“This I’m sure you will agree provides greater value for money to the Irish Taxpayer.”
The Department of Transport and CRC Ireland have both been asked for comment.