Can't comment on the marinisation issues for the Mk3 but if the re-training of aircrew is too expensive & the pot of gold is not actually available, why not just move the RAF's Merlin fleet in to CHF as a job lot & tell 'em to get on with it. I'm sure that with the help of a a few existing exchange officers used to the amphib environment they'll soon pick it up. As personnel leave in the natural course of events they will be replaced by RN/RM staff suitably trained through the existing system on a trickle drafting basis.
No, I think I see a flaw in that plan.