The Albion Park-based aeromedical service is set to move to Nowra.
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The Mercury understands the service will remain on the South Coast but the crew could be transferred out of the Illawarra to provide greater coverage of the region.
Yesterday, Kiama MP Gareth Ward said his priority was keeping the service on the South Coast and indicated he would consider a move to Nowra a victory.
"My fight has always been to keep this service in our region and not Sydney," Mr Ward said.
"If more lives are going to be saved by having it better positioned in our region, if that is the decision that's made, then I'm satisfied with that move," he said, adding the flight time from Nowra to the Illawarra by helicopter was three or four minutes.
"This is not about politics, it's about saving lives. We need the service in the best possible locations in order to do that."
Mr Ward said the government had to use its resources to do the "greatest good for the greatest number".
"However, nobody will convince me that locating a helicopter service in Sydney will best serve residents on the South Coast and Illawarra."
The South Coast Labour Council has called on NSW Health Minister Jillian Skinner to immediately end speculation the Albion-Park service would move from its existing base.
"We hear speculation every day about another service that will be cut and moved," secretary Arthur Rorris said.
"We can't control what the greedy bean counters plan to do, but what we can do is issue a very stern warning to the government that we will not cop another 20 minutes in travelling time to this region from the north or the south," he said.
"That is not a solution. If they wish to base another helicopter down that way [Nowra] we would welcome it with open arms.
"But we are not in the business of robbing Peter to pay Paul and we will fight this all the way."
An independent review by Ernst & Young says the government could save millions of dollars each year by moving the Albion Park-based helicopter to Sydney and cutting helicopters at other bases, without "significantly affecting" response times to patients.
Since the January report, the government has also considered other base sites within the Illawarra and Shoalhaven.
Yesterday, Mrs Skinner said that "aeromedical services will be enhanced across the state, including in the Illawarra Shoalhaven region".
"The government is presently examining the responses to the independent panel's review and will announce our plan for aeromedical services later this year," she said.
"We've noted the significant number of submissions we have received from members of the Illawarra-Shoalhaven community, particularly Gareth Ward and other MPs."