$1.4m in fees for delayed plane deal

The Air Force has paid about $1.4 million in fees to those involved in the sale of the Skyhawk fighter bombers and Aermacchi aircraft.

This includes just over $1 million to international accountants and business consultants Ernst and Young, who brokered the deal, which is not yet done and dusted.

The American company buying the 17 mothballed Skyhawks and 17 Aermacchi training jets said last month the $155 million deal was not in trouble and delays were due to normal bureaucracy.

A spokesman for Defence Minister Phil Goff said the sale was waiting on congressional approval.

No money has changed hands as the deal has to be finally confirmed by the United States State Department.

National MP Murray McCully has put written questions to the minister over the total amount paid in fees, disbursements and other costs to any parties involved in the attempted sale of the Skyhawks and Aermacchis.

In his response, Mr Goff said the total amount paid by the Air Force was $1,401,961, excluding GST.

Ernst and Young had received $1,037,064, made up of an establishment fee and reimbursement of actual costs incurred brokering the sale.

Forge Technologies had received $36,653 for logistics assistance, and Russell McVeagh had received $328,244 for legal advice on the terms of the sale contract, Mr Goff said.

Multiple payments had been made in line with contractual arrangements or when services were provided, he said.

Mr Goff's spokesman said the fees incurred were consistent with deals of this nature. Besides the fees, the aircraft cost about $300,000 a month to maintain.

Mr Goff last night told TV One news that he hoped Foreign Affairs Minister Winston Peters would raise the Skyhawks deal as an issue when he met US Secretary of State Condoleezza Rice.

"I think it may well be on the list of things that he could raise in his meeting with the Secretary of State and I hope if he has time that he's able to do that," Mr Goff said.

The Skyhawks were scrapped in 2001 by the Labour Government when the Air Force's combat wing was axed.

- NZPA