Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I am pleased to appear before the select committee after the long gap of time since I was last before it dealing with important financial and other issues. Today the committee is considering the 2014 Estimates for Defence and Army Pensions. I intend to give a short opening statement as opposed to a long statement, after which I will be happy to take questions from members. I know that members are generally familiar with the background.
The combined Estimates for Defence and Army pensions for 2014 provides for gross expenditure of €898 million. Of that sum, €677 million will be spent on Defence and €221 million on Army pensions. Over 74% of the Defence Vote goes towards providing for the pay and allowances of 9,500 Permanent Defence Force personnel, 625 civilian employees and 350 civil servants. The remaining allocation provides mainly for the replacement and maintenance of essential equipment and operational costs.
The re-organisation of the Permanent Defence Force which was initiated in July 2012 has been successfully completed. The re-organisation was required to accommodate the PDF strength of 9,500 within a revised two-brigade structure. I am pleased to state the re-organisation has met its intended objectives and will continue to deliver a high level of capability and efficiency within the Defence environment. Targeted recruitment was undertaken in 2013 and will continue in 2014. In total, there was an overall intake of 404 PDF personnel in 2013, comprising 353 general recruits, 34 cadets, nine engine room artificers for the Naval Service; seven Air Corps apprentices, and one medical officer. Members will be pleased to note that it is intended to commence a new recruitment campaign in March 2014. An induction of Air Corps apprentices and Naval Service engine room artificers is also planned during 2014. I think we will have to change that word "artificers" and see if we can invent a term that is from the 21st century as opposed to from the 18th century. We will vigorously engage in that appropriate initiative. Any suggested changes will be welcome.
Despite the difficult economic climate prevailing, the continued application of a prudent approach to equipment purchasing and maintenance programmes has ensured the Defence Forces continue to have access to modern equipment. The costs of procuring two new Naval Service vessels, scheduled for delivery in 2014 and 2015, are being met from the Defence allocation. The first ship floated out in November 2013. I should say it floated back again, otherwise we would all be in trouble. The fitting out of equipment is taking place. Sea trials are scheduled for the first week in February 2014 and the vessel should be ready for handover in the first week of March 2014. The keel laying ceremony for the second ship took place in November 2013 and the work continues apace. It is expected that the new vessel,LE Samuel Beckett, will be formally commissioned into service in April 2014.
Ireland will continue its long-standing commitment to overseas missions. Currently, 412 personnel are serving in 14 different missions throughout the world. These missions embrace a range of activities, including conflict resolution, peacekeeping, humanitarian missions, crisis management and strengthening international security. The two largest contingents are serving with the United Nations Interim Force in Lebanon, UNIFIL, with 210 personnel, and the United Nations Disengagement Observer Force, UNDOF, in the Golan Heights, with 119 personnel.
At home, the Permanent Defence Force will continue to provide an efficient military operational response to both the civil power and civil authorities, as required.

This work is ongoing and will encompass a broad range of diverse activities and services, including explosive ordnance disposal duties, maritime patrol, search and rescue missions and cash in transit escorts.

Following the value for money review of the Reserve Defence Force, a new organisational structure came into effect at the end of March 2013. A revised strength ceiling for the Reserve of 4,069 personnel is now in place. Work is continuing on the implementation of the reorganisation effort and the development of the single force concept. A review of the number of active members of the RDF is being compiled in this context. As part of this process, the criteria for participation in the RDF are also being reviewed and updated and a recruitment plan is being developed. The revised structure has improved access to equipment, expertise and appropriate training for Reserve members. It has also allowed for a significant reduction in the number of PDF personnel required to administer and train the Reserve on a full-time basis. This means we are now using our resources more effectively.

I intend to publish a new White Paper on defence in 2014 and work has commenced in that regard. In support of this, a Green Paper on defence was published in July 2013. The Green Paper has provided a useful consultative basis for the White Paper, which will set out defence policy for the coming years. It is anticipated that the draft White Paper will be submitted to Government for approval later this year. I thank the members of this committee who made submissions in response to the Green Paper, either on their own behalf or on behalf of their parties.

The Defence Vote also makes provision for certain costs related to the Civil Defence. The Civil Defence Board was disestablished and its functions integrated into the Department from January 2013. Civil Defence continues to develop its role of providing supports to front-line emergency services. In 2013, it supported the Garda Síochána in almost 100 searches for missing persons and was actively involved in supporting hundreds of community events across the country. I fully expect that Civil Defence volunteers throughout the country will continue to provide support to both front-line services and local communities in responding to emergencies throughout 2014.

I conclude by referring to the Army pensions Vote and the increasing numbers and costs in that regard. Expenditure from this Vote is primarily non-discretionary and demand-led. Currently, there are some 12,000 pensioners of all categories paid by my Department under the Vote. Reflecting recent public service trends generally, retirements on pension from the Permanent Defence Force more than doubled from 2007 to 2012. During that period, expenditure on military pensions increased by 31%. In recent years, any shortfall arising on the Army pensions Vote provision has been met from payroll and other savings on the Defence Vote. In other words, there has been no extra demand on the Exchequer in respect of the Defence Vote group. An additional sum of €10 million has been provided to meet the anticipated increased expenditure requirements this year.

I commend both Revised Estimates to the committee and look forward to dealing with any questions members wish to raise.