Labor cleans up Seasprite 'mess'
Billion-dollar dud: A Navy Seasprite goes through its paces (
www.navy.gov.au)
The Federal Government has cancelled Australia's $1 billion commitment to the Royal Australian Navy's controversial Seasprite helicopter project.
Defence Minister Joel Fitzgibbon made the announcement at a visit to a Newcastle engineering firm this morning.
The $1 billion Seasprite fleet was due to enter service in 2001 but was indefinitely grounded in 2006.
An upgrade of a 1960s airframe with 21st century avionics, the helicopters are unable to be operated reliably in poor visibility conditions and at night.
A statement from the Defence Department said discussions with the contractor would start immediately.
"Today's announcement demonstrates our determination to make tough decisions whenever required for the security of the nation and the safety and capability of our Defence Force," Mr Fitzgibbon said.
"The decision taken by the Rudd Labor Government is one that should have been taken by the Leader of the Opposition, Brendan Nelson, when he had the opportunity last year.
"But his Government decided to put its own political interests ahead of the national interest. Consequently, the responsibility of cleaning up the mess they created falls to us."
Coalition defence spokesman Nick Minchin says Mr Fitzgibbon must explain what it will cost to drop the Seasprite contract, and what legal action the contractor Kaman will take.