By Michael Dugher MP, Shadow Minister for Defence Equipment and Support

Reports in today’s Sunday Mirror and Sunday Telegraph say that Liam Fox is to press ahead with a sell-off of Britain’s Search-and-Rescue operations in a multi-billion pound, 25 year, private finance initiative (PFI).  The obvious question is this: why is a government that has cut the Defence budget by 8%, cancelling key capabilities like carrier-strike until 2020 and making thousands of our service men and women redundant, about to spend £7billion on American helicopters?

This is about a contract to provide helicopters for search and rescue to replace the existing Sea King aircraft flown by Prince William.  The Sea King helicopter, built in Britain, has provided remarkable service both here and around the world.  In fact, it is so popular that the private sector is said to be “snapping them up” as they go out of military service.  Upgrade kits are commercially available to significantly extend the service life of the helicopter and many countries see this as a sensible and economic way of obtaining helicopters at a much lower cost than buying new.

This PFI contract was a product of the last Labour government and, in truth, the product of a completely different fiscal backdrop.  If Labour is to be a responsible opposition, then we have to be prepared to look for savings too, especially if we continue to be rightly critical of some of the more worrying, and arbitrary, cuts that potentially weaken our defences.  This PFI has been subject to a long review by the Treasury as the coalition Government has looked for cost savings right across government.

So far however the two departments responsible, the Ministry of Defence and the Department for Transport, have not announced what they plan to do, but the go-ahead is expected imminently.  With both departments facing big budget cuts it seems hard to understand why they would even be considering going ahead with this long term and expensive arrangement.  How will the Ministry of Defence explain that it cannot afford to keep the British built Sea Harrier but it can afford expensive American helicopters?  How will the Department for Transport explain to tired hard pressed commuters that the massively increased cost of their daily commute is paying for a service that will only be used from time to time?  Indeed how will the Government as a whole explain to people that have lost their jobs because of spending cuts here, that they are paying  to provide jobs in the United States, rather than boost the economy at home?

Of course there is an alternative.  The answer is to do what the coalition Government has been doing elsewhere – scrap the long term PFI deal and find a cheaper solution to save the taxpayer money. Fortunately, there is an offer on the table to do just that.  Apparently, AgustaWestland have said that they could, at a modest cost, upgrade the Sea Kings to extend their service life and give the Government a lot more time to consider longer term alternatives.

The helicopter world is increasingly considering ways in which different emergency services can be integrated.  A search-and-rescue helicopter could be equipped to respond to medical emergencies.  In the right circumstances, it could take on policing duties, not least in those parts of the country that cannot currently afford a dedicated police helicopter.  It would seem very strange if a dedicated search-and-rescue helicopter was sitting on the ground during a medical or policing emergency in the area it served.  It would be much better to have an integrated contract that encouraged such action.

This is precisely the kind of joined up, cross government solution that Francis Maude and other Cabinet Office Ministers are supposed to be bringing forward.  Here is a great chance to show that they mean business.  An integrated “Blue Light” helicopter emergency service would be of real benefit to communities up and down the country.  Unfortunately, I fear the Government will miss this opportunity to think again.

Reports on this story can also be seen at the BBC News and the Daily Mail.