Rescue chopper trust wrestles with dispute

One of the BayTrust Rescue Helicopters. Photo / APN

A dispute has broken out among organisations on the Hawke's Bay Rescue Helicopter Trust.

It regards the suitability of Skyline Aviation, the operator contracted to provide the helicopter service, to have a representative on the Trust.

Yesterday Lowe Corporation managing director Andy Lowe, via a written statement, said when the company renewed its sponsorship two years ago, it was done on the basis the trust's structure was reviewed to ensure it had the right mix of skills and transparency required of what was a public service organisation, "especially when large sums of public and sponsorship money are involved".

The Lowe Corporation Rescue Helicopter service relies on community funding.

"In particular, we felt it important for the trustees to review the trust's relationship with the helicopter operator to ensure that it was objective and transparent," he said.

Changes to the trust's structure recommended by an independent specialist were appropriate, he said.

These included changing from a "membership-based structure to a community-appointment based structure" and "the helicopter operator should not have a right to appoint a trustee".

"Presumably this was to avoid the risk of a perception that the operator could influence the direction of the trust or use the trust to its own advantage. Skyline's response was that if it could not appoint a trustee then neither should LCL [Lowe Corporation] or the HB District Health Board," Mr Lowe said.

He believed Lowe Corporation was in a quite different position to Skyline Aviation. Mr Lowe said until the structure was changed for the reasons recommended, Lowe Corporation was concerned about perceptions "valuable funds are being wasted or benefiting third parties beyond what is fair and commercially realistic".

Skyline Aviation managing director Mike Toogood said yesterday his organisation had signalled to trust chairman Andy Train it was happy to relinquish its rights to appoint a trustee. Its appointee, John Roil, was a well-respected businessman tapped for his community links and business skills and was not an employee of the company.

Mr Toogood noted sponsor Lowe Corporation also had a representative on the trust.

"He also has a sign off on the contractor's payments," Mr Toogood said.

"He has to be in agreement with what we're being paid so there's no smoking gun. There is no lack of transparency."

There was a signed service agreement between the trust and Skyline Aviation which dealt with contract arrangements, including the basis which Skyline was paid for its services.

"The Skyline representative on the trust is excluded from any part of those negotiations," Mr Toogood said.

"As the trustees approve the entire content of the service agreement with the operator, including the basis of payment, it is incredulous for any party to suggest a proper process is not in place."