New £7bn helicopter rescue service on hold

Published on Thursday 17 June 2010 23:17

A £7 BILLION project to replace ageing Sea King helicopters that support Britain's mountain rescue teams has been suspended by the UK government, amid warnings of a wave of "brutal" cuts coming to Scotland.

• One of the projects suspended or scrapped – new rescue helicopters. Picture: PA

Chief Secretary to the Treasury Danny Alexander announced yesterday that the government had cancelled or frozen 10.5bn of projects announced in the dying days of the previous Labour administration.

The suspension of the helicopter contract was by far the biggest cut in a list that includes roads, libraries, sports funding, court buildings and education scholarships.

After reviewing 217 projects that were approved between January and May this year, the government accused Labour of trying to buy the election. Twelve projects that would have cost a total of 2bn have been scrapped. A further 12, which would have cost some 8.5bn, have been suspended.

The cuts were announced as the new Scottish Secretary, Michael Moore, used his first visit to Holyrood to issue an apocalyptic message about the scale of the cutbacks coming north of the Border. "None of us at the moment can escape the brutal reality of the state of the public finances," he told MSPs.

Latest figures indicate the annual deficit is now 155bn – that is the amount between actual public spending and the taxes raised to fund them.

"That's 2,500 for every man, woman and child across the United Kingdom," Mr Moore said.

He went on: "It's a staggering sum of money, and it's no surprise in that context that the major priority of the United Kingdom is to tackle that deficit.

"For the Scottish Parliament and the Scottish Government, you're going to be dealing with real cuts over the next few years. That's going to be tough – it's going to be tough for all of us."

The Liberal Democrat MP for Berwickshire, Roxburgh and Selkirk made the comments as he was grilled by Scottish Parliament conveners and party business managers over funding for services.

However, he made it clear there would be no review of the Barnett formula, which allocates spending between different parts of the UK, including Scotland.

Mr Moore's chilling message about cuts had already started to hit home last night, with the shelving of plans for the part-privatisation of Britain's search-and-rescue helicopters.

A replacement programme – due to start in 2012 – would have seen the familiar yellow Sea Kings of the RAF and the red and grey craft of the Royal Navy replaced by faster Sikorsky helicopters with a greater operational range.

Moray SNP MP Angus Robertson warned that, with Nimrod surveillance aircraft no longer in use, the search-and-rescue capability had taken on added significance in tracking ships in trouble.

Mr Robertson, who is the SNP leader at Westminster, said: "My concern is that the Tories and Liberal Democrats are planning to significantly downgrade search-and-rescue."

Na h-Eileanan an Iar SNP MP Angus MacNeil said: "Search-and-rescue helicopters are literally a lifeline service, and I sincerely hope that this suspension will not have an operational impact on responses.

"The Liberal-Tory coalition should not be seeking to cut costs or corners with essential services, which could have the potential to put lives at risk.

"I have asked the government for guarantees about this, despite what they may decide about contracts in longer term."

However, Ayrshire Labour MP Brian Donohoe said the suspension of the contract was "fantastic news", as he believed it would have threatened the long-term future of HMS Gannet in Prestwick. He said he would be making "early representations to the UK government" to ensure the privatisation was cancelled completely.

Mr Alexander claimed a Treasury review had exposed a raft of "cynical" pre-election commitments made by the outgoing administration using "money they simply didn't have".

None was affordable, good value, or in line with government priorities, he said.

In the Commons, he told MPs: "We are determined to tackle the unprecedented budget deficit and bad financial management we have seen over the past decade, but are equally determined to do this in a way that is fair and responsible.

"As a result of the poor decisions made by the previous government, I have taken the decision to cancel certain projects that do not represent good value for money and suspend others pending full consideration in the spending review."

Among the spending to have been spared the axe was that for flu pandemic medicines, some hospital projects, support for post offices and spending on "crucial military equipment" for Afghanistan.

Many of the other projects axed were south of the Border, including 25 million for a Stonehenge Visitor Centre, an 80m loan to engineering firm Sheffield Forgemasters and 450m to build the North Tees and Hartlepool Hospital.

The coalition government's cutbacks, which will also affect roads projects and employment schemes, come ahead of Chancellor George Osborne's emergency Budget on Tuesday.

Mr Osborne is expected to announce plans to slash spending during his statement in the Commons, with more cuts expected in a spending review to come this autumn.

The Scottish Government said Mr Alexander's announcements would have an impact north of the Border. A spokesman said: "There will likely be an impact on individuals in Scotland. The announcement covers some UK-wide programmes, and we will press the UK government for clarity about their intentions and the impact for people living in Scotland. Where spending on projects was planned to continue into future years, we expect that the implications of their cancellation will be reflected within the overall outcomes of the UK comprehensive spending review."

Aberdeen North MSP Brian Adam, the SNP's chief whip at Holyrood, said after the meeting with Mr Moore: "It was clear from this session that Scotland is in line for severe budget cuts as a result of the economic mess left by the previous Labour government.

"On economic issues, it was crystal clear that we will face unprecedented challenges from these cutbacks to deal with the debt built up by Labour.

"The key to boosting Scotland's economy and to bringing an end to the economic picture he spelled out of serious budgetary threats as a result of the actions of the Labour government is a real financial responsibility for Holyrood, and Mr Moore must be open to that discussion."

Labour MP Jim Murphy, the Shadow Scottish secretary, said the cuts would "devastate families in Scotland".

He went on: "Cuts to support for young people getting into work are cruel cuts.

"To see a Cabinet of millionaires taking support from unemployed Scots is shameful.

"People who voted Lib Dem did not expect them to be the voice of painful Tory cuts, which go far beyond what is necessary to reduce the deficit."

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