http://www.news.com.au/story/0,23599,23323052-2,00.html
The Federal Government is cancelling the troubled $1 billion Seasprite helicopter project, Defence Minister Joel Fitzgibbon has announced.
The Labor Government began a review of the Seasprite helicopter project late last year and, after careful consideration, had little option but to cancel the project, Mr Fitzgibbon said.
"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 Government would instead improve the current Seahawk fleet and investigate replacing the ageing aircraft later.
"We are determined to ensure that the defence force receives the capability it needs, and Australian taxpayers receive value for their money,” Mr Fitzgibbon said.
The Government would have discussions with the contractor over legal and financial issues and announce the details when they were agreed.