Dick Smith is understandably annoyed that the $2 million helicopter he offered to the ACT as a rescue craft has been sitting idle in a hangar for 10 months while he has had to pay insurance and maintenance. He has decided to take it back to Sydney.
Mr Smith put the ACT Government in a bind 10 months ago. Not to accept the gift might have been seen a churlish or a stupid waste. But having accepted it, the Government should have had put in place a cogent plan to use the helicopter quite quickly in rescue work. The issue was complicated by a review of aero-medical services in NSW with the result that NSW decided to put a second rescue helicopter in the air based in Canberra. That would cost about $1 million a year, of which the ACT would pay between $100,000 and $150,000. That is a much cheaper solution that accepting Mr Smith helicopter, refitting it and paying full running costs.
In any event, the ACT Government should have mapped out a strategy 10 months ago and told Mr Smith of its expectations. Mr Smith’s action to take the helicopter back is a major embarrassment. It also gives credence to the simplistic view that the public sector does not do things quickly or cheaply compared to the private sector.
Of course, helicopter rescues or dramatic incidences in which a helicopter would save a life stick in the public consciousness. Few are willing to do the cost analysis in these circumstances because of the myth that no expense should be spared when dealing with lives. Yet daily we expose ourselves to risk in order to benefit from convenience; or government rations spending to deal with preventing loss of life or saving it.
The economic costs of maintaining a rescue helicopter were probably always higher than the one or two rescues a year would warrant. But the ACT Government should have made that assessment 10 months ago.