Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

Thank you. I welcome this opportunity to engage with the Select Committee on Foreign Affairs and Trade and Defence, to consider the 2017 Revised Estimates for Vote 35, Army Pensions and Vote 36, Defence. I have a short opening statement which will set out the overall position and update the members on some of the main developments within the defence sector over recent times. Before I conclude my opening statement, I will refer to the tragic events related to the loss of Rescue 116 off the west coast.

The defence sector is made up of two votes – Vote 35, Army Pensions and Vote 36, Defence. The high level goal of both Votes is to "provide for the military defence of the State, contribute to national and international peace and security and fulfil all other roles assigned by Government’". Accordingly, defence sector outputs are delivered under a single programme in each Vote. The combined Estimates for Defence and Army Pensions for 2017 provides for gross expenditure of some €922 million.

The Defence Vote of €692 million includes a pay and allowances allocation of some €497 million, while the remaining non-pay allocation of €195 million provides mainly for the renewal and maintenance of essential equipment, infrastructure and operational costs.

The Army pensions Vote makes provision for retired pay, pensions, allowances and gratuities payable to or in respect of former members of the Defence Forces. The 2017 Estimate provides a gross sum of €230 million for the Army pensions Vote. More than €220 million of this allocation covers expenditure on all superannuation benefits for former members of the Permanent Defence Force and their dependants. It is primarily demand-driven and non-discretionary.

Having outlined the broad financial parameters of both Votes, I will now address some of the main features of the single programme on the Defence Vote, programme A, defence policy and support, military capabilities and operational outputs.

The defence pay allocation provides for the pay and allowances of a Permanent Defence Force strength of up to 9,500, 550 civilian employees, 350 civil servants, 18 chaplains and 14 Army nurses. This level of funding provides the defence organisation with the resources necessary for it to deliver effectively on all its key domestic and international responsibilities.

An ongoing and increasing level of recruitment has been taking place within the Defence Forces in recent years. To this end, I recently launched the 2017 recruitment campaign for the Defence Forces which targets the induction of some 860 new entrants across the Army, Air Corps and Naval Service this year. Permanent Defence Force strengths are not yet at the target levels. However, funding is in place, and this year's recruitment programme highlights my commitment to a Permanent Defence Force strength of 9,500. These recruits will avail of the highest levels of training and, in return, the Defence Forces will benefit through the injection of energy and enthusiasm, which every organisation, particularly the Defence Forces, needs. Promotions are also ongoing, with over 1,400 promotions across all areas of the Defence Forces since 2014.

The budget allocation also provides for a Reserve Defence Force, RDF, pay allocation of more than €2 million which will provide for 26,000 training days in 2017. I acknowledge and appreciate the commitment and enthusiasm of the RDF members who provide voluntary service throughout the country and I welcome the fact that this allocation provides a minimum of seven days' annual paid training for all effective members of the reserve, as well as providing for 14 days' paid training for all additional personnel recruited to the reserve in 2017. In line with RDF priorities, this will also facilitate selected members to participate in career and specialist courses, as required.

The defence non-pay allocation comprises current and capital elements. The current expenditure allocation of €121 million provides mainly for expenditure on essential and ongoing Defence Forces' standing and operational costs, such as those relating to utilities, fuel, catering, maintenance, information technology and training.

The capital expenditure allocation of €74 million provides for the necessary procurement and upgrading of defensive equipment and infrastructure and represents a welcome increase of €7 million on the 2017 defence allocation contained in the capital investment programme for the period 2016 to 2021. This increase is essential to ensure that the Defence Forces have the necessary levels of equipment in place to allow them to fulfil all roles assigned to them by Government. Among the main equipment programme priorities planned for 2017 are the continuation of the naval vessel replacement programme; the armoured personnel carrier, APC, mid-life extension programme; the aircraft replacement programme; the purchase of armoured utility vehicles; and the acquisition of armoured logistic vehicles for overseas missions.

The Defence Forces built infrastructure allocation of €14 million has increased significantly over the 2016 position and will facilitate continuing infrastructural developments across military locations. A number of projects are planned for 2017, which are progressing on a phased basis, to upgrade and maintain the infrastructure essential for the Defence Forces.

Last year, in the context of the 2016 Estimates, I informed the committee that a contract had been signed with Babcock International for the provision of a fourth ship under the naval vessel replacement programme at a cost of €67 million. I am delighted to say that significant progress has been made since, and on 28 February last I attended the keel-laying ceremony at Babcock's shipbuilding yard in Devon, where I announced that the ship would bear the name of the renowned Irish playwright George Bernard Shaw. Payments of €28 million under this contract are scheduled for 2017, and by 2018 the naval vessel replacement programme will have delivered four new ships at a cost of some €266 million. The naval vessel replacement programme represents excellent value for money, and these ships will be of major benefit to the State and a further significant enhancement of defence capabilities. The acquisition of these new ships has facilitated the participation of the Naval Service in its deployment to assist with rescue missions arising from the migrant crisis in the Mediterranean. To date, these missions have led to the rescue of more than 15,600 migrants.

Last year, I commissioned the new Defence Forces International Operational Service Medal to recognise the service of Defence Forces personnel who have been deployed on overseas missions by direction of the Government where no other mission medal has been awarded. This medal was awarded to all personnel who took part in search-and-rescue activities in the Mediterranean during 2015 and 2016.

I will now briefly outline some of the key roles and outputs delivered under the defence programme. The Defence Forces continue to make a considerable contribution in their international peace and security role, and at 1 March 2017 Ireland was contributing 585 Defence Forces personnel to ten different missions across the globe. In addition, personnel are deployed to a range of international organisations and national representations.

The main overseas mission on which Defence Forces personnel are currently deployed is the United Nations Interim Force in Lebanon, UNIFIL, with 378 personnel. Since 22 November 2016, when Ireland assumed the lead of the joint battalion in UNIFIL from Finland, Ireland's contribution to UNIFIL has increased by some 150 personnel. Ireland is also contributing 136 personnel to the United Nations Disengagement Observer Force, UNDOF, in the Golan Heights. I have already referenced the contribution made by the Naval Service in its deployment to the Mediterranean, and the issue of a further deployment in 2017 will be considered shortly.

The Department of Justice and Equality and the Garda Síochána have primary responsibility for Ireland's domestic security, supported, as required, by the Defence Forces as part of their aid to the civil power function. This role is multifaceted and in 2016 included a varied set of tasks such as Garda air support missions, Central Bank security guards, prisoner escorts, explosive ordnance disposal call-outs and Naval Service diving operations.

The Defence Forces also provide assistance to the principal response agencies tasked with responding to major emergencies. By way of example, in 2016, the Defence Forces were deployed on a number of missing persons searches, the Naval Service conducted fisheries boardings and the Air Corps undertook a number of emergency aeromedical support missions. The professional competence shown by the Defence Forces in undertaking these roles is greatly valued and appreciated by all stakeholders.

Last year was of huge historical importance and, in this context, I express my sincere gratitude to the Defence Forces for their outstanding contribution to the many ceremonial events undertaken. Their input contributed significantly to numerous ceremonial highlights throughout 2016, with the full military display involving 2,500 military personnel undertaken on Easter Sunday, rightly receiving universal acclaim for its dignified, respectful and inclusive salute to our historic past. I feel it was only right and fitting, therefore, as part of the Ireland 2016 centenary programme and in line with the programme for Government commitment, that all serving members of the Defence Forces were presented with a specially commissioned medal to mark their role in these ceremonies.

Civil Defence is also funded from the defence Vote and remains a vital component within each local authority's emergency response arrangements. During 2016, Civil Defence volunteers provided ongoing support and front-line emergency assistance at many commemorative events throughout the country. In recognition of their efforts, I commissioned a specially-designed medal to be presented to all members of Civil Defence who were in active service between 1 January 2016 and 31 December 2016.

Finally, I turn to programme A, provision for Defence Forces' pensions benefits, of Vote 35. Expenditure under Vote 35 is demand-driven and non-discretionary, with superannuation benefits - pensions and gratuities - and disability pensions, etc., accounting for 99% of all expenditure. Pension benefits granted are, for the most part, statutory entitlements once certain criteria are met.

Some 2,700 military personnel have retired on pensions from January 2010 to date and currently 12,250 pensioners are paid from the Army pensions Vote. There is a net increase of 1,250 since 2007. All the indications are that this underlying trend will be maintained in the coming years. For the years 2017 to 2019, inclusive, current projections are that 1,000 military personnel will retire on pension. Last year, 2016, saw 330 Defence Forces members retire on pension, with a similar number anticipated in 2017. As the committee is aware, it has been my stated intention to seek extra funding for military pensions as part of the overall budgetary negotiations, and some progress has been made on that front. As announced in budget 2017, the gross allocation for Army pensions has been increased by €6 million to €230 million for this year, a welcome change.

I have broadly outlined the key inputs, outputs and performance indicators for the defence sector. Committee members have been provided with briefing material on the individual subheads for the Defence and Army pensions Estimates. I look forward to positive engagement on any issues the committee may wish to discuss.

Before I conclude I want to comment on the tragic events off the west coast. I want to express my deepest condolences and sympathies to the families of Captain Dara Fitzpatrick, Chief Pilot Mark Duffy, winchman Paul Ormsby and winchman Ciarán Smith - the crew involved in this tragic incident - as well as to the staff of the Irish Coast Guard. I recognise the efforts of everyone involved in the recovery operation in a dangerous environment. In particular, I acknowledge the Defence Forces personnel who are assisting with the recovery operation through the provision of Naval Service ships and Air Corps aircraft. Naval Service divers are also contributing their skills to the rescue mission. It is important that those involved in the investigation process are given time and space to complete their work and to establish the full facts of this tragic event.