AUSTRALIA will salvage nearly $40 million from the failed Seasprite helicopter program that has swallowed $1.3 billion of taxpayer funds.
The Federal Government and US defence company Kaman have satisfactorily agreed to cancel the project on mutually agreed terms.
The Government today signed an agreement with Kaman which seeks to sell the 11 Seasprite helicopters, plus spares and training equipment, on the open market.
Under the agreement, the Australian Government will receive at least 50 per cent of the proceeds from any sale.
There would be a guaranteed financial return of $39.5 million, Defence Minister Joel Fitzgibbon.
"In addition, a further $30 million worth of spares will be retained for use on the Seahawk and Black Hawk helicopter fleets," he said in a statement.
The Government had also saved $150 million which would otherwise have been spent on this project. That now would be available for use in other projects, Mr Fitzgibbon said.
Earlier this month, the Government cancelled the long-running Seasprite contract which would have delivered 11 advanced helicopters to operate from navy frigates.
Major technical difficulties meant it ran a decade late.
The rebuilt Seasprites, initially slated to enter service in 2001, faced problems with their automated flight control and computerised combat system.
As a result, the Government advised the helicopters would not be ready for service until 2011.
Mr Fitzgibbon said he was pleased the early finalisation of the contract had removed any uncertainty surrounding the project.
He said a legal and financial framework was in place to provide a reasonable return to the Australian taxpayer.
"This is considered the best outcome for the Government as well as the personnel affected by the decision," he said.
"The Government is assisting Kaman with the transition of their personnel in a sector that is short of qualified and experienced people."
The Government had taken the tough decision and acted decisively to achieve the necessary outcome without a protracted legal dispute, he said.
"We have learned some valuable lessons from this project that we can apply to better ensure the success of future projects and make sure the taxpayers receive value for their money," he said
Source: h*tp://www.news.com.au/couriermail/story/0,23739,23407846-5003402,00.html
|