Wallaby,
Why do you think government's go to private (commercial) type companies to run these services? As you mention if you look at the 'real' cost to the Vic Government to run Polair, I think you would see that a private (meaning non-government) operation be it CHC, Bristow, Jayrow will be a cheaper service to run than if they did it themselves (Capital costs of NEW airframes/spares parts etc etc (see standing charge/flying hour charge).
How may 4 axis machines are QR running?????? (I mean actually using the auto-hover function, possibly Spida may use it occasionally) CHC run 5 at the moment. With regard to 'crews working a reasonable number of hours' - this is where the FRMS dictates what a reasonable number of hours a pilot should perform.
PS: And the crew/s would get paid more than the QR guys but that's another story).