Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am conscious of the fact that I do not want to read to the committee things it already knows, but it is no harm to put some of this on the record with regard to expenditure. The combined Estimates for defence and Army pensions for 2015 provided for gross expenditure of approximately €898 million. Of that sum, €677 million was allocated to Vote 36, which is the Defence Vote. More than 70% of the Defence Vote goes towards providing for the pay and allowances of up to 10,500 public service employees. The remaining non-pay allocation provides mainly for the replacement and maintenance of essential equipment 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 2015 Estimate provides a gross sum of €221 million for the Army pensions Vote as a whole. More than €211 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.

Today’s meeting is primarily about expenditure relating to 2015, and I take this opportunity to reflect on the importance, both financially and operationally, of having an effective strategic planning framework in place. In a changing security climate, it was imperative that a strategic assessment of the security environment was undertaken. This assessment ensures Ireland’s defence policy framework is in a position to respond to emerging security challenges and contribute to international peace and security. After an extensive collaborative process involving multiple stakeholders, I was very pleased to launch the White Paper on Defence in August. This document reflects the current realities faced within the wider defence and security policy environment, acknowledges the increasingly complex nature of security threats in the world today and emphasises the need for a comprehensive response.

The White Paper sets out the roles the Government has assigned to the Defence Forces and considers associated capability requirements. It sets out proposals on the replacement of major equipment platforms for the next decade and other priorities for the Army, Air Corps and Naval Service.

It provides clear direction and a pragmatic approach to defence and ensures that we can continue to rely on the service provided by the Defence Forces to the security of the State. I would also like to highlight some of the other defence-related milestones and achievements throughout the year.

As of 15 September 2015, Ireland was contributing 482 Defence Forces personnel to 12 overseas missions throughout the world. This level of overseas deployment reflects Ireland’s ongoing contribution to international peace and security. The main overseas missions in which Defence Forces personnel are currently deployed are the United Nations Interim Force in Lebanon, UNIFIL, with 198 personnel, and the United Nations Disengagement Observer Force, UNDOF, with 141 Defence Forces personnel. The Minister of State is on his way out to visit them at the moment.

In response to the refugee crisis in the Mediterranean and following Government approval, Ireland’s overseas deployments now also include the Naval Service deployment to the Mediterranean. The LE Eithnearrived in the south central Mediterranean on 23 May 2015, to assist the Italian authorities in humanitarian search and rescue operations. The specific role of the Irish naval vessel is to provide a search and rescue capability and to undertake humanitarian rescue operations at sea in the Mediterranean.

TheLE Eithne, during her deployment to the mission from 18 May to 17 July, rescued a total of 3,377 migrants from the waters between Libya and Sicily. The LE Niamhwas subsequently deployed and to date has been involved in the rescue of 4,020 migrants. In total, 7,397 migrants have been rescued by the Irish Naval Service to date. I think that number has risen since this was written. Undoubtedly, this is a tragic and highly complex issue but the actions of both the LE Eithneand LE Niamhhave highlighted the capability and commitment of Ireland’s Naval Service to respond effectively to crisis situations. Their outstanding efforts have saved lives, and, to that end, I am pleased to say that the LE Samuel Beckett, which departed the naval base, Haulbowline last week, will continue to assist the Italian authorities in this ongoing humanitarian operation. In the event of any further deployment beyond November 2015, I will revert to Government with proposals.

The White Paper reaffirmed my commitment to maintaining the permanent Defence Force personnel at a level of 9,500. In that regard, a very active recruitment campaign is under way. Already, in 2015, 194 personnel have completed, or continue, in training, and that number is expected to increase significantly by year end. In addition, there have been 517 promotions across all ranks of the permanent Defence Force to date in 2015.

The Defence Forces continue to provide a military operational response to both the civil power and civil authorities, as required. This is a vital public service role which highlights the attributes of the Defence Forces across a broad spectrum of areas including prisoner escorts, explosive ordnance disposal duties, air ambulance services, emergency aeromedical support roles, search and rescue missions and maritime patrols.

As we advance towards 2016, I expect the Defence Forces to play a very central role in the commemoration events that will take place. Already in 2015, under the decade of centenaries commemoration programme 2012-22, the Defence Forces have participated in several events including the State commemoration of the funeral of O’Donovan Rossa in August. Additionally, the Defence Forces recently commenced the delivery of the national flag to all primary schools in the country. This event started on 14 September 2015 and is scheduled to be completed before Proclamation day, 15 March 2016.

The recently published White Paper on defence also considered the further development of the Reserve Defence Force, RDF. It outlines a range of measures which will be progressed during the next few years. These measures build on the value for money review on the RDF and aim to improve on the overall effectiveness of the RDF. They should also contribute significantly to recruitment. If the RDF is doing more, more people will want to be part of it. The truth is that it is more difficult to get into the RDF now. There are fitness and other tests. When people do get in, they are well trained and they are a resource we need to use more and will use more.

The naval vessel replacement programme has continued, and the LE Samuel Beckett was added to the fleet in 2015, joining the LE James Joyce which was delivered in April 2014. A third ship purchased under this programme, theLE William Butler Yeats, is scheduled for delivery in July 2016. The progressive and prudent approach taken to these purchases is testament to the value for money ethos prevailing within the Department of Defence and the Defence Forces, with these vessels all procured without recourse to additional funding. This has been achieved by careful management of financial resources and re-allocation of funding to meet additional requests for equipment and supports.

The Department works closely with the Defence Forces to ensure that they retain the capabilities to fulfil all roles assigned by Government, both at home and overseas. In this context, the 2015 allocation allowed for the acquisition and upgrading of a range of priority defensive equipment.

The capital envelope for defence also makes provision for infrastructure development works. The 2015 Estimate made provision for expenditure of €18.5 million on new building works and ongoing maintenance of existing buildings and also included funding for the military archives building at Cathal Brugha Barracks.

Over the 2016-21 timeframe of the capital investment programme, significant capital funding will be expended on replacement programmes for defensive equipment across the Army, Naval Service and the Air Corps, including payments arising under the naval vessel replacement programme. It will also provide for the ongoing refurbishment of a diverse Defence property portfolio and the provision of replacement or additional facilities, where required. This capital funding envelope also provides for the development of a new institute for peace support and leadership training building on the UN training school in the Curragh. The institute is intended to provide a new international resource in the area of conflict resolution, conflict prevention and peace-building. If the committee wants to set up a separate meeting on that particular issue, I would be very happy to do it. We have a very ambitious approach to developing something very special in Ireland over the next few years and I would happily spend an hour or two talking to the committee about it if it wants that.

Before concluding, I want to refer again to Vote 35 - Army Pensions. This Vote, which is demand-led, has funded the payment of military pension benefits of all categories to some 12,000 pensioners, including retirement pensions and gratuities, disability pensions, spouses’ and children’s pensions. Owing to the continued underlying increase in the numbers of retirement pensioners being paid from the Vote and the ongoing impact on pension payments of the exceptionally high numbers of retirements on pension in previous years, a net shortfall of some €9 million is projected for 2015, as it was last year. Therefore, I would like to advise the committee that a Supplementary Estimate will be required later in the year. Similar to other years, this shortfall on the Army Pensions Vote will be met from savings within the Defence Vote. We are not asking for extra money, we will make the necessary savings and arrangements in our own Vote 36 to be able to deal with this, as we did last year, and we debated it then.

In summary, across the combined Votes, expenditure is broadly on target. Provision has been made to ensure the required funding is available within the Defence Vote to meet the Army pensions shortfall without recourse to any further Exchequer funding requirement. If anyone has any comments or questions I will happily try to address them.