Sikorsky deal held until court action ends

The Minister for Defence has undertaken before the High Court not to sign a contract for the purchase of helicopters from the…

The Minister for Defence has undertaken before the High Court not to sign a contract for the purchase of helicopters from the Sikorsky company pending the outcome of legal proceedings due to open next week.

The undertaking was given to Mr Justice McKechnie yesterday by Ms Mary Finlay SC, for the Minister. She said Eurocopter of Marseille, France, an unsuccessful tenderer for the contract, will receive a letter from the Minister today setting out his reasons for accepting the Sikorsky tender.

Last week, Eurocopter secured leave to bring proceedings against the Minister, Ireland and the Attorney General in which it is seeking a declaration that the Minister, in failing to provide the company with full details of the tender selected, has failed to comply with a European Council directive.

It was also given leave to apply for a declaration that the Minister is guilty of a breach of the "principles of transparency, fairness and good faith" which underpin and govern the implementation of council directives.

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That hearing has been fixed for next Friday. Mr Justice McKechnie also adjourned until then other applications for injunctions brought by Eurocopter. These seek to direct the Minister to give Eurocopter detailed particulars and documentation in relation to the characteristics as well as the advantages of the Sikorsky tender and to give reasons for the rejection of Eurocopter's tender and the award of the contract to Sikorsky. CHC Scotia and EH Industries Ltd are also believed to have tendered for the multi-million-euro helicopter contract.