Government comes to aid of air ambulance

By MARTIN JOHNSTON and STUART DYE

The ChildFlight Trust was last night thrown a lifeline after the Government promised funding to the service.

Crucial talks today will decide the exact package to save ChildFlight, which transfers sick and injured children and babies from throughout the country to hospital.

The trust was on the brink of being wound up after running into financial difficulties.

It has been sucked into the troubles of sister organisation the Auckland Rescue Helicopter Trust.

The two bodies rely heavily on $4 million a year from poker machines, but the High Court ruled last week that the Internal Affairs Department could withdraw the gaming licences of pubs owned by a rescue trust subsidiary.

Former rescue trust members are accused of fraudulently misdirecting part of the pokies' profits back to a group of hotels.

ACC Minister Ruth Dyson said last night that ChildFlight was too important to be allowed to collapse.

"My priority is to ensure this service continues and there is no risk of children not having access to this important resource."

Ms Dyson was confident a temporary solution could be arranged and a long-term solution found. She would not reveal the nature of the plans until after today's meeting.

"It's also been very distressing for the employees and their families so I am keen to sort it out as soon as possible."

Up to 50 people would lose their jobs if the trust was wound up.

Ms Dyson and other Government health officials will meet ChildFlight chief executive Rea Wikaira today.

Speed is crucial as an extension to the service by Airwork, which operates the trust's leased planes, runs out tomorrow.

Barbara Phoenix, the charity's operations co-ordinator, cautiously welcomed the news.

"I won't believe anything until I see it but, fingers crossed, it sounds good."

The trust would carry on "full throttle" with its campaign to save the service until there were cast-iron guarantees in writing, she said.

The future of the helicopter operation, which carries critically ill adults, remains precarious. Mr Wikaira said he would ask the Government for more time.

"I have told the Government we want a stay of execution until the end of the next financial year to be able to work through our restructuring plan ... and reduce our high dependence on the gaming money.

"If that is not an option for the Government, we would be looking to the Ministry of Health, through district health boards, to come to the party."

ChildFlight's annual budget is about $4 million, half from slot machines and the rest mainly from health boards and insurance companies.

The boards pay a third to a half of the cost of children's air-ambulance flights. It costs about $16,000 to fly a sick child from Invercargill to Auckland.