By AUDREY YOUNG
Defence chiefs have been given a stern message about shutting down expectations of a sale of the Air Force's 19 Skyhawks.
Prime Minister Helen Clark said yesterday: "We do not consider ourselves in sale mode because, if we were to cancel the F-16s, we may well wish to
keep the Skyhawks."
She said Defence Minister Mark Burton had told the Chief of Defence Staff, Air Marshal Carey Adamson, that the Government was not considering selling the Skyhawks.
She acknowledged that defence officials might have been talking about a sale. "Nothing officials either do or say ever surprises me, particularly in this area."
Act leader Richard Prebble said on Wednesday that the US was trying to "sweeten" the $700 million deal for New Zealand to lease 28 F-16 fighter planes - an arrangement now under review.
Washington would finance the Philippines' purchase of the Skyhawks and look at how it could change the lease-to-buy deal.
In Parliament on Wednesday, Mr Burton denied knowledge of any negotiations.
Yesterday he was more equivocal, making it clear that if there was talk, it was without authority.
"I have been assured by my colleague the Minister of Foreign Affairs [Phil Goff] that there is no such negotiation taking place as alleged by the member, with any mandate, by any official.
"There is no negotiation taking place between Governments."
The Philippines has already expressed interest in buying the Skyhawks.
Helen Clark said that, when the National Government agreed to the F-16 deal, it commissioned accountants Ernst & Young to assess a possible sale of the Skyhawks.
"We haven't stopped that work with Ernst & Young. And who knows what chatter arising from officials has occurred in the course of that?
"No doubt they have been talking to the Filipinos."
Former Act MP Derek Quigley is due to hand his review of the F-16 deal to the Government early next month.