but why cannot the current C-130 fleet which we, the taxpayers own, actually be utilised in the dropping of fire retardant 'packages' / 'balloons'
The RAAF C-130 fleet is already over utilised carrying out operational tasks and training for operations, let alone being held to the beck and call of state fire organisations. Fatigue life would increase, more assets would be required, and the cost would be enormous.
Much cheaper to hire contracted services.