Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

It too early to say what the shortfall will be by the end of this year. I reiterate what I said to the Deputy on the ship investment. We will revert to the Deputy if we are seeking a Supplementary Estimate. There will be savings elsewhere and there will not be an extra cost to the Exchequer. If the Supplementary Estimate is required, as we expect, we will come back to the Deputy.

We would like to be able to get a budget from the Department of Public Expenditure and Reform to fulfil all the commitments regarding pension entitlements. There will be negotiations between my Department and the Department of Public Expenditure and Reform to increase the pension Vote. There are particular differences unique to the Defence Forces in terms of predicted retirement and turnover patterns which contribute to greater-than-expected expenditure in any year. Bearing in mind operational manpower, this is due, among other things, to the early payment of pension benefits immediately on retirement after relatively short periods of service and the fact that the timing of a person's departure on pension is largely of his or her own personal choice. This makes forecasting for the Department of Defence's and Defence Forces' expenditure on pensions very difficult from year to year. The position on the Army pensions funding is being monitored closely. If a Revised or Supplementary Estimate is required, we will revert to the committee before the end of the year.

It is absolutely my intention to seek additional funding as part of the overall future budgetary negotiations so the Army pension Vote will be provided for adequately. However, we have to deal with the resource envelope we have been given over recent years. There has been an increase. On the Deputy’s first comment, it is not that there are more people but that there is also an increase in the pension rate, and that has to be taken into account.