TheMinister for Defence, Mr Smith, says there will be "no delay" in the State purchase of new Air Corps helicopters from the US company, Sikorsky, in spite of a threat of legal action by the French bidder, Eurocopter.
A team from his Department is due to fly out to the US this weekend, and "serious negotiations" will begin in "the next couple of weeks", the Minister said yesterday in Galway when he reviewed 44 troops bound for East Timor.
Mr Smith said he was still awaiting legal advice from the Chief State Solicitor's office in relation to a request from Eurocopter.The French company has been seeking a "letter of comfort" from the Minister's Department in relation to requests it has submitted for information.
The company - which submitted the bid favoured by an expert review group - wants to review fully the criteria which led to the final choice, under the Freedom of Information Act. It has also raised questions about the final decision under EU competition rules.
Last night Eurocopter said in a statement that it had received assurances from the State that no contract would be signed with Sikorsky before it (Eurocopter) has received all of the documents it requires "to fully review the procedures carried out in reaching the decision announced on January 19th".
Eurocopter said it was reserving its right to take legal action and it was likely that it would be pursuing a full legal challenge to the State's decision to award the contract in the manner it did.
Speaking earlier yesterday in Galway, the Minister said that "the rules had been adhered to" in relation to the selection from a shortlist of four companies. The total value of purchasing three air/sea rescue helicopters, and an optional two more for troop carrying, was about €100 million , he said.
The Minister declined to disclose details of the final offer by Sikorsky, but said that there was "about €1 million" in the difference, along with "other aspects of the contract" which would have implications in the future. Sikorsky had met "four of the six criteria" set out by the expert review group, the Minister said. These criteria included technical merit, maintenance support, cost and ready availability of spare parts, tender prices and life cycle costs.
His Department has already emphasised that there was "no offset deal" with Sikorsky in relation to FLS Aerospace, the north Dublin company. Sikorsky, and subsequently Eurocopter, had pledged to create work at the north Dublin plant formerly run by TEAM Aer Lingus in exchange for the helicopter contract. North Dublin TDs lobbied heavily in Sikorsky's favour on this basis.
The Minister said that there had been "phenomenal interest" in the helicopter contract, and it had been a "keen contest" - akin to an All-Ireland championship involving his home county, Tipperary. He said he could understand the disappointment of anyone who had lost out "by fractions".
The Minister told the troop review in Galway that he wanted to see the Defence Forces maintaining their "long and proud tradition of service" with the United Nations, and there was "nothing in European security and defence policy, or in the EU treaties, including the Nice Treaty, that pointed Ireland in the direction of participating in a European army".
The 44 troops flying out for a four-month tour of duty in East Timor serve with the 1st Infantry Battalion, An Chéad Cathlan Coisithe, based in Dún Uí Mhaoilíosa barracks at Renmore in Galway.
The majority of the troops are from Cos Galway, Roscommon, Mayo and Sligo, and 60 per cent are travelling on their first overseas service.
Training included jungle combat operations, tracking skills, survival techniques, search and sweep operations and helicopter operations.