The Age from Melbourne, Victoria, Australia • Page 7

NEWS THZAGE TUESDAY JULY 25. 2000 NEWS jHfieflpam.au 7 Dash to save little boy ends in tragedy Diaries teUof MAS events Rising costs feed fear of inflation goods rose by 5.5 per cent over the year while imported goods posted a 3.5 per cent increase. However, the extent to which these higher input prices will le passed on to consumers and add to inflation and the probability of an interest rule rise depends on whether producers absorb costs or pass them on to consumers. Bankers Trust economist Chris Caton suggested producers might seek lo pass on much of their increased costs. "Some of the increase (in producer prices) in a passed on.

Consumers By GREG ROBERTS On Sunday night, five-year-old Anthony Sherry was struggling to breathe. His parents telephoned for an emergency helicopter rescue learn lo pick him up at their remote Queensland property. Hours later, Anthony, his mother and his three would-be rescuers were all dead, the victims of a helicopter crash apparently caused by heavy fog. The Sherrys' cattle property, Kenella Park, is more than 100 kilometres south-east on rough bush roads from the nearest town, Marlborough, in central Queensland. At 1 1.40pm, ambulance communications in Rockhampton, another 100 kilometres south of Marlborough, received the call for an emergency helicopter evacuation.

The Capricorn Helicopter Rescue Service, funded and supported by the local community, had been established for such an emergency. Rockhampton's Lieutenant Colonel Paddy O'Brien, 58, a respected helicopter pilot with 35 years experience in civil and military flying, was on call as a relief pilot. He was joined in the five-seater Bell Long Ranger helicopter by crewman Bill Birch, 52, who doubled as an ambulance officer, and a paramedic, Craig Staines, 30. At Kenella Park, Mr Birch and Mr Staines worked to stabilise Anthony an only child apparently conceived through IVF and decided he needed to be moved to Rockhampton Base Hospital. Anthony and his mother Susan, 30, joined the return flight.

Halfway to Rockhampton, they were enveloped in thick fog. After exchanges between Mr O'Brien and ambulance communications, a decision was made to land in Marlborough and transport Anthony and his mother by road to the hospital. It was planned to land in the town's school oval, but because of the poor visibility, it was decided to put down in a paddock next to the highway outside Marlborough. During radio communications, Mr O'Brien expressed concern that he might run low on fuel while looking for somewhere to land. The wreck of the rescue service helicopter that crashed yesterday.

Pictures apn news and media By SUE CANT The senior bureaucrat charged with overseeing emergency services was kept informed of "palace coups" at Intergraph and discussed potential management replacements. Geoff Spring's diaries, parts of which were read to the Metropolitan Ambulance Service Royal Commission yesterday, revealed close relations between himself and the company he was charged with monitoring. Mr Spring is the chief executive officer of the Bureau of Emergency Services Telecommunications. Peter Simonds, the general manager of Intergraph, which runs ambulance dispatch communications, told Mr Spring there were no "palace coups" under way in the organisation. Mr Simonds told him this was because the managing director, Greg Batchelor, would not make a decision and "cannot keep his mind on the Mr Simonds had suggested a replacement for Mr Batchelor but Mr Spring had rejected the suggestion.

"I tell Simonds (former head of operations Gary) Bertuch would be an unacceptable appointment which shocked him," the diary said. The diary also stated that Mr Simonds told Mr Spring that the company was "running at break even or just in the black corporate overheads are killing the Under cross-examination from Peter Clark, counsel for the MAS, Mr Spring conceded he had made "unflattering" comments in his diary about emergency services executives. But he agreed that there were no unflattering comments about Mr Simonds. Mr Spring told the commission he saw it as his role to collect information on the organisation he oversaw. The commission is investigating MAS contracts, alleged phantom calls made to boost Intergraph's performance and other related matters.

The inquiry before Lex Lasry, QC, is continuing. nave oum iifi a history of being resistant lo price increases. Bui their guard may he down these days so perhaps more of the price increase will be passed through than a a been the case a year ago." CPI figures due out tomorrow may be the highest in four years. By JOSH GORDON CANBERRA Inflationary pressure in the economy is moonling. wilh the cost ol producing goods in Australia rising by per cent in the year to June, the Bureau of Statistics reported yesterday.

Rising world oil prices and the low value ol the Australian dollar have been principal forces behind the iiillaiionary pressure, which has added to the risk of another rise in interest rates. Economists are predicting that Consumer Price Index figures, to be ri'leased tomorrow, will show that the annual increase in the cost of living has topped per cent lor the first time in four years. This would exceed the Hcservc Bank's desired inflation rate range of between and per cent over the medium term, and will lead the Heserve to consider a r.ite rise when its hoard next meets in early August. Economists were divided yesterday on whether the Heserve would lift rales. I hey said they would wait to see the impact of the Inly I introduction ot the GST on a range of economic indicators, including wages and retail sales.

A report released yesterday by I a a a consultants l.contech said prices rose by 1 per cent in the first lew weeks of. the new lax system. I he estimate is slightly below the federal iovernmenl's prediction that the (iST would cause a per cent U'l increase in the September quarter. I he Reserve Bank has said it would ignore this one-off prices impact when assessing the level of interest rates. Yesterday's Bureau of Statistics report on producer prices provides a measure of input costs faced by producers.

Domestically produced 1 Chris Caton i. Pilot Paddy O'Brien Anthony Sherry Paramedic Craig suffered croup. Staines Kenny visited the site yesterday but declined to comment. Referring to the service, local MP Rod Schwartcn said: "When we started it back in 1996 we thought it would save lives. We never expected it to cost lives and that seems to lie the general reaction in the community." The service's executive officer, Kay Becker, said the three personnel were highly respected professionals.

"These people would do whatever had lo be done. They were all very well known and this is an absolute tragedy," she said. Police spokesman Brian Swift knew Mr O'Brien personally. "He was incredibly experienced," Mr Swift said. "Ills reputation was known nationally.

He'd done it all." An Australian Transport Safety Bureau spokesman said it could be several months before the accident cause was determined. More onttne rr thence rnrn an he said. "What the data suggest is one more cause for concern that inflation may he continuing on its upward creep." Commonwealth Bank economist Michael Blythe said he believed there was a chance of a rate rise soon. "Upstream price pressures are now flowing through into the final price level. The risks on the growth and inflation front are on the upside.

I he odds of another rate rise are pretty high at the moment," he said. I he Heserve Bank will also he watching the Australian dollar, which has failed to sustain itself above (id US cents in the past three months. Economists blamed the low dollar for a per cent surge in import prices during the past year. Police lit beacons on the road to guide the helicopter and waited with the local ambulance. About 2.20am, they heard a crash.

All on board are believed to have died instantly. It was another hour before the wreckage was found, scattered over an area of several hundred square metres. Three bodies had been thrown from the helicopter, which did not catch fire or hit any obstacles. First on the scene was local Viv lenklnson. "I think you could say that those poor people wouldn't have felt anything," Mr lenklnson said.

"I'd heard the helicopter In town. It sounded like it was taking off, then it got quieter, like it was going away. Then there was a loud bang. By the time I got there, there was nothing I could do." Grant Kenny Ocean Air Hell-copters, which is owned by former ironman Grant Kenny, had leased the helicopter to the Capricorn Helicopter Rescue Service. Mr www.accorhotel.com Accor.

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