The Government has insisted that the offer of a massive contract to FLS Aerospace by Sikorsky had "no influence" over its decision to buy €130 million worth of helicopters from the US company.
The Department of Defence is expected to sign a contract with Sikorsky within weeks for the purchase of three medium-range helicopters for search and rescue purposes, with an option for two further helicopters for general-purpose military transport.
Sikorsky won out over three other companies, Eurocopter, France, EH Industries Ltd, UK, and CHC Scotia. However EH Industries threatened legal action before Christmas if the Government took into account the offer of aircraft maintenance work being made to FLS, formerly TEAM Aer Lingus, based at Dublin airport.
The offer to FLS led to intense lobbying of the Minister for Defence by North Dublin Fianna Fáil deputies to accept the Sikorsky deal. Local deputies from other political parties also asked Mr Smith to accept the deal.
A Sikorsky spokesman said yesterday the offer was made as "an incentive" and was in line with tendering practice in many other states. The practice known as "offset" involves the offer of various incentives as part of a tender.
However a spokesman for the Minister insisted the offer, which will help safeguard the 1,500 jobs at the plant and may create 50 more, "was of no relevance to us".
The Department of Defence had set out a number of criteria which those tendering for the contract had to fill, and the provision of "offset" elements was not among them. The spokesman said the decision had been made on the basis of points awarded to each offer under seven headings, and the competition was won by Sikorsky, whose offer was also the cheapest.
It had always been made clear that "incentives" would have no impact and that Sikorsky had won on the overall quality of its tender.
Dublin North Fianna Fáil deputy Mr G.V. Wright welcomed the decision to open negotiations with Sikorsky on the helicopter contract. "I hope that in the event of successful negotiations, the choice of Sikorsky will also ensure the long-term future of the 2,000 workers in FLS Aerospace at Dublin airport".
Sikorsky now plans to give about €150 million worth of aircraft maintenance work to FLS involving the conversion for cargo use. This opens up the possibility of conversion work on 120 other aircraft being given to the company, work that would be worth some €8 billion over a decade.
FLS Aerospace last night welcomed the deal, saying it would "help to underpin the security of employment at FLA Aerospace when it comes on line late this year/early 2003, as it is expected that it will generate 50 new jobs."
Mr Smith said the purchase of medium-lift helicopters was "a positive indication of the Government's commitment to ensure that all branches of the Defence Forces - Army, Air Corps and Naval Service - are fully equipped to carry out their day-to-day roles".