CLICK
THE "HOME" TAB ON ANY PAGE IN THIS SITE
TO RETURN TO THE MAIN NAVIGATIONAL PAGE
OR CHOOSE FROM THE LEFT NAV MENU
[TVOTW
Insert - If the destination page or web site for the link below does
not function - it has either been removed or closed down on
the orders or instructions of persons or entities unknown to TVOTW
for reasons that can only be speculated upon - having
regard to the content or revelations contained herein.]
TVOTW
- PAGE INDEX
FROM:
http://www.abc.net.au/am/s491735.htm
$700mil
for choppers that can't be used
AM - Wednesday,
February 27, 2002 8:21
LINDA
MOTTRAM: The Defence Department has admitted
that it's paid $700 million for helicopters it can't use because of
technical problems and which will be out of date in three years anyway.
The Super
Sea Sprite choppers were supposed to be in the air by the middle of
this year but software glitches mean that the earliest they'll be up
and running is December 2004.
The Navy has already
taken delivery of six of the helicopters but it's refusing to use them
and while the choppers are on a flight to nowhere, the Commonwealth
is still paying for them with another $800 million
instalment due later this year.
From Canberra, Mark Willacy.
MARK WILLACY: For years
the Coalition teased and tormented Labor over the hapless Collins Class
Submarine but in politics what goes around comes around and just like
the Collins Subs, the Government's purchase of eleven Super Sea Sprite
helicopters has been delayed by technical problems and the problem with
that is the delay is at least three years and the Government is already
out of pocket $700 million, with another $84 million to be paid this
year.
CHRIS EVANS: No Australian
business who ran their business like that would stay in business for
more than a couple of weeks.
MARK WILLACY: Labor's
Defence spokesman, Chris Evans, teased the Super Sea Sprite revelations
out of Defence Force officials at Senate Estimates Hearings.
While the Navy's already
taken delivery of six of the choppers, it won't use them until it has
confidence that the software control system is in place.
Labor's Chris Evans.
CHRIS EVANS: Well my
main concern is that we've spent $800 million of taxpayers' money and
got nothing to show for it. We paid over the money and we haven't got
the helicopters and so yes there are doubts about the ongoing viability
of the contract, but more importantly they've got taxpayers money that
could have been used to fund schools, hospitals and aged care and we
haven't got anything in return.
MARK WILLACY: That may
be Chris Evans' main concern, but another worry is the failure of the
Defence Department and the Minister, Robert Hill, to ensure the taxpayer
is protected by a watertight contract.
CHRIS EVANS: Well I would
have thought it was basic business practice to have a liquidation clause
or something that protected your interests.
What the Defence and
Minister Hill are saying to us is that there is no protections for the
Australian taxpayer and that the $800 million has been handed over,
we've got nothing in return and there's nothing we can do about it.
That is, in my view,
disastrous contract management. It shows the lack of professionalism
and I think a lack of political will from the Government to tackle these
issues and make sure that we get better value for taxpayers' money.
MARK WILLACY: At Senate
Estimates, the bureaucrat in the hot seat, the Under Secretary for Defence
Material, Mick Roche, admitted things could have been done a whole lot
better.
MICK ROCHE: Put bluntly
Senator, the contract is not the sort of contract that we would wish
to draw up these days.
The prime contractor
has been left with a major sub-contractor who walked from a contract
to deliver the mission control system but in the meantime the progress
payment arrangements that were in the contract meant that we were legally
obliged to pay as various progress points were reached.
LINDA MOTTRAM: Defence
Department Under Secretary, Mick Roche. That report from Mark Willacy
in Canberra.
FROM:
http://www.abc.net.au/am/s491735.htm
