Questions are swirling as to why ORNGE officials sought to place a helicopter base at the Oshawa airport and if Finance Minister Jim Flaherty made an attempt to influence the decision.

The government committee investigating the ORNGE air ambulance scandal has heard testimony from Rick Potter, the agency’s former aviation boss, that putting a satellite operation in Oshawa was something he would not recommend.

But a decision was made to operate a base in Oshawa anyway, over Peterborough, and put another in Hamilton. Why Oshawa was chosen is an issue that is likely to come up at the all-party public accounts committee probe Wednesday.

The move to east and west of Toronto would split up the Toronto Island base, which is staffed with two crews and two helicopters.

However, the shift is now on hold.

More: Leaked documents suggest government lawyer warned against Chris Mazza plan

ORNGE told the Star in a statement Tuesday that “the decision to move to Hamilton and Oshawa are both under review and no final decisions have been made yet.

“At this time, the Oshawa project is in the early stages. No renovation work on the hangar has been completed. Interim CEO Ron McKerlie is still gathering information about which decisions made under previous leadership are in the best long-term interest of ORNGE.”

More on the ORNGE investigation

The committee’s probe is examining suspect business practices and questionable multi-million dollar contracts at ORNGE, an agency that receives $150 million a year in public money. The Ontario Provincial Police are also investigating a $6.7-million marketing agreement made with the Italian helicopter firm AgustaWestland and ORNGE.

For months in the Legislature, the Liberals and the Progressive Conservatives have both pointed the finger of blame at each other for what has gone wrong at ORNGE. Both have hurled allegations that Tory- or Liberal-tied lobbyists have had undue influence in the air service.

Potter testified he thought it was strange that the decision was made to put a satellite operation in Oshawa.

“As a matter of fact, Oshawa was certainly not an airport of my choice — on the analysis,” Potter told the committee on public accounts earlier this month. “It doesn’t have an instrument landing system.”

Oshawa also has one of the loudest noise-complaint communities of any of the airports Potter said he has dealt with.

Three emails obtained by the Star from Liberal government sources imply Flaherty was interested in where ORNGE was going to relocate.

The first email dated Saturday, June 11, 2011, and sent by ORNGE staffer Matthew Ellis to Lisa Kirbie, the agency’s director of government relations, said: “Jim Flaherty is eagerly waiting a decision on whether or not we’ll be going to Oshawa.”

Ellis sent another email to Kirbie on Sat., June 18, 2011, stating: “Any answer on Oshawa base? I’m being confronted by two Flahertys, Chris Alexander, and several candidates at an event.”

Alexander is the Conservative MP for the riding of Ajax-Pickering.

Kirbie responded back on Saturday June 18, 2011, and said simply: “Tell them decision is imminent and they’ll be the first call you make.”

Before Ellis arrived at ORNGE, he was a senior adviser to federal Heritage Minister James Moore in policy and then parliamentary affairs. Years ago, Ellis worked for Flaherty at Queen’s Park as his general assistant.

Ellis, who is now director of communications for Prince Edward Island’s Conservative Leader Oliver Crane, told the Star he believes Flaherty was told by Oshawa city council members that the base was coming to the city.

Putting a base in the eastern Greater Toronto Area would give the area much needed air ambulance coverage, Ellis said.

“My recollections of exactly the chain of events, I can’t be sure. That was a year ago now,” he said.

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In June 2011, ORNGE was simply the air ambulance service for Ontario and not an issue of controversy, said Chisholm Pothier, Flaherty’s director of communications.

“Minister Flaherty — and other community leaders — were encouraging ORNGE to locate a hangar at the Oshawa airport, which is in the minister’s riding,” he said in an email to the Star.

“The issue was not jobs for the area, the issue was increased health services for their constituents. As an elected representative of Whitby-Oshawa, he takes every opportunity to encourage improved services for their constituents.”

Progressive Conservative MPP Christine Elliott (Whitby-Oshawa), who is married to Flaherty, said the event in Ellis’ email was the campaign office opening for Todd McCarthy, the PC candidate running in the last provincial election in Ajax-Pickering.

Elliott is the other Flaherty mentioned in Ellis’ email. She said she just asked Ellis what the status was of the helicopter base and she did nothing wrong. “It was a conversation we had at a social event. I was just inquiring on the status,” she said.

Elliott also sent a letter to Health Minister Deb Matthews on May 16, 2011, to “encourage” the ministry to bring a “crucial” emergency service to Durham Region.

Potter told the committee ORNGE founder Dr. Chris Mazza first supported the Hamilton decision but then reconsidered. Potter said ORNGE’s Steve Farquhar, vice-president of operations, and Tom Lepine, the fired ORNGE chief operating officer, “pushed Oshawa.”

Lepine is to testify at the hearing Wednesday.

With files from Robert Benzie

More on the Star:

Leaked documents suggest government lawyer warned against Chris Mazza plan

ORNGE ran $14.5-million deficit, documents show

ORNGE founder Chris Mazza issued final summons to appear before committee