Simon Coveney (Cork South Central, Fine Gael)
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I welcome the opportunity to engage with the Select Committee on Foreign Affairs and Defence to consider the 2021 Revised Estimates for public services, Vote 35 - Army Pensions; and Vote 36 - Defence. In this opening statement, I will set out the overall position and update members on some of the recent developments within the defence sector.

As members will know, the defence sector comprises 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 2021 provide for gross expenditure of more than €1.07 billion, an increase of over €32 million, or 3%, on last year. The 2021 provision comprises €810 million for Vote 36, which is all of the broader defence issues, and an increase of €29 million on 2020 and more than €262 million for Vote 35 - Army pensions, an increase of €3.5 million. The Army pension Vote is a single programme entitled, provision for Defence Forces pension benefits. It makes provision for pay, pensions, allowances and gratuities payable to, or in respect of, former members of the Defence Forces and certain dependants. The 2021 Estimate provides for a gross sum of €262.7 million for the Army pension Vote, of which €253 million covers expenditure on superannuation benefits. Pension benefits granted are, for the most part, statutory entitlements once certain criteria are met.

During 2020, 290 Defence Forces members retired on pension. There are currently 12,780 pensioners paid from the Army pension Vote and this number continues to rise year-on-year as people are living longer. Against that background, I am pleased to inform members that the gross allocation for Army pensions increased by €3.5 million to almost €263 million for 2021. This builds on the previous funding increase of €10 million achieved in last year's Estimates. On the issue of pensions, I am pleased to say that I recently secured the approval of my colleague, the Minister for Public Expenditure and Reform, Deputy Michael McGrath, to pass on to the qualifying military pensioners the benefit of the increase in the military service allowance, effective from 4 July 2019. This increase was awarded to Defence Forces personnel on foot of the 2019 report of the Public Service Pay Commission. The work is ongoing on the calculation on the pension arrears involved.

I will turn now to Vote 36 - Defence, which is delivered under a single programme entitled, defence policy and support, military capabilities and operational outputs. The Revised Defence Estimate of €810 million for 2021 includes a pay and allowances allocation of more than €534 million. The pay allocation provides for the pay and allowances of up to 10,440 public service employees, including Permanent Defence Force personnel, civil servants and civilian employees. It provides for all outstanding commitments arising from the Public Sector Stability Agreement 2018-2020, along with the restoration of the 5% cut in Permanent Defence Force allowances imposed under the financial emergency measures in the public interest, FEMPI, legislation. The non-pay allocation comprises current and capital elements and the Revised Defence Estimate provides a non-pay current expenditure allocation of more than €144 million for 2021. This allocation provides, in the main, for expenditure on ongoing and essential Defence Forces standing and operational costs such as utilities, fuel, catering, maintenance, information technology and training.

The capital allocation provided in the Revised Defence Estimate is €131 million. This allocation has increased over recent years and demonstrates the Government's commitment to capital investment in the Defence sector. It will facilitate an ongoing programme of equipment replacement and infrastructural development. Comprehensive multiannual plans completed through joint civil-military work in the form of the defence equipment development plan and infrastructure development plan were published last year and are delivering on the White Paper on Defence policy commitments.

The White Paper on Defence has identified that demands on future capability will need to take account of climate change objectives. In that regard, defence remains fully committed to incorporating green procurement practices into all defence organisation procurements, in line with the overarching climate action plan objectives and in accordance with all applicable obligations in the fields of environmental law applying under national and EU law, as well as various international conventions on environmental law matters. The principal demand drivers of defence capital funding are the ongoing renewal, retention and acquisition of military equipment, along with the development of military infrastructure and information and communications technologies. The acquisition of military equipment is pursued through the equipment development plan and is based on White Paper objectives and provides a consolidated, structured basis for investing in military equipment to maintain and develop the necessary capabilities.

At present, a significant number of defence equipment programmes and projects are at various stages of development and include the ongoing upgrade of the Army Mowag armoured personnel carriers, the maritime patrol aircraft replacement programme, the purchase of military transport vehicles and the mid-life refit of two Naval Service vessels. In addition, an ongoing schedule of capital investment across a broad range of force protection, transport, communications, information technology, weapons and ammunition systems continues in 2021.

Similarly, an infrastructural development plan sets out the requirements for essential infrastructure development works over the medium term. This infrastructural investment, which has a strong regional or local dividend in terms of local enterprise and employment, seeks to ensure that all Defence Forces installations are fit for purpose, taking account of operational security and health and safety considerations. A significant level of defence built infrastructure projects, many of which involve buildings with historical significance and encompass accommodation, training and storage facilities, are at various stages of development from design and tender to construction. Those include: an upgrade of training facilities in Sarsfield Barracks, Limerick, and Stephens Barracks, Kilkenny; upgrades of accommodation facilities and various military installations, including the Defence Forces' training centre in the Curragh Camp and Defence Forces student accommodation in Galway, which is badly needed, McKee Barracks and the Naval Service base in Haulbowline; an upgrade to aircraft hangars in Casement Aerodrome, Baldonnel; and the remediation of Spencer Jetty in Haulbowline. I called in to look at the progress at the jetty in the past ten days or so.

I will now briefly reference some of the many outputs to be delivered by the Defence Forces from the Defence Vote throughout 2021. The 2021 allocation will allow Defence Forces personnel to meet Government commitments on our overseas peace support missions and proudly represent Ireland abroad in diverse and often challenging locations around the world. As of 10 May, there were 561 Permanent Defence Force personnel serving in ten overseas missions around the world. This level of overseas deployment reflects Ireland's ongoing contribution to international peace and security and I thank our Defence Forces for their professionalism and commitment to their overseas roles. I hope to visit some of those missions by mid-summer.

At home, the funding provision allows the Defence Forces to continue to provide essential support for An Garda Síochána as requested across various roles, such as explosive ordnance disposal call-outs, Garda air support missions and Naval Service diving operations. It also enables the Defence Forces, as part of their aid to the civil authority role, to provide support to local authorities and to the HSE in their emergency response efforts. In what has been an unprecedented challenge to our country, the defence organisation has contributed and played a leading role in the national response to Covid-19 throughout 2020 and in 2021. This collective defence response involved Permanent Defence Force personnel, members of the Reserve, Civil Defence volunteers, civil servants and civilian employees within the Department. I thank them all for their resilience and support throughout what has been an anxious and uncertain period for us all. They have shown remarkable flexibility and professionalism in what they have been asked to do. I say that of the Department as well as the Defence Forces because members of both organisations have been phenomenal at a time of significant need when there have been big asks of them across multiple areas. I am happy to take questions about that, if committee members want me to.

Throughout the pandemic the Permanent Defence Force has continually provided significant and essential support to the HSE in areas such as contact tracing, patient transportation, logistics, vaccinations and Covid-19 testing. In terms of the financial impact, more than €18 million has been expended from the Defence Vote to date in response to the Covid-19 pandemic. This expenditure was incurred across a broad range of areas and includes, for example, the payment of additional aid to the civil authority allowances, to Defence Forces personnel, the acquisition of a new Pilatus PC-12 utility aircraft, additional expenditure on medical, engineering, building, personal protective equipment, audiovisual information technology, communication and transport requirements, and other additional Civil Defence and departmental requirements. All Covid-19-related expenditure was met from within the overall Defence Vote allocation in 2020 and to date in 2021.

The Defence Vote provides funding of more than €4 million for the Civil Defence in 2021. This funding supports Civil Defence units throughout the country by way of central training and the supply of vehicles, boats, uniforms and personal protective equipment for volunteers. Civil Defence volunteers provide essential support to efforts of the front-line services and had a highly visible role in dealing with the Covid-19 pandemic.

The Government also values the support of the Reserve Defence Force and the White Paper on defence highlights that there is a continued requirement to retain, develop and, I hope, grow the Reserve in the months and years ahead. On behalf of the Government, I commend the voluntary effort made by members of the Reserve Defence Force and thank them for their ongoing dedication and enthusiasm, particularly those who assisted in the Covid-19 response.

As members will be aware, pursuant to a commitment in the programme for Government, the Government established the independent Commission on the Defence Forces last December. The role of the commission is to examine structures for governance, joint command and control, the arrangements for the effective defence of the country and the composition of Defence Forces and their pay and allowance structures. The commission has been busy to date and I was delighted to observe a very productive and positive interaction between the committee chairperson and members of the Joint Committee on Foreign Affairs and Defence at the meeting in April.

In addition, as a further part of a broad, ongoing consultative process, the commission is reviewing more than 500 submissions from individuals and organisations on matters relevant to the terms of reference. This level of response highlights the significant level of public interest in the broader issues with which the commission is being asked to deal. It is my hope that the commission's report, when published, will assist the Government in ensuring that our Defence Forces remain agile, flexible and adaptive in response to dynamic changes in the security environment, including new and emerging threats, such as from climate change and cybercrime, and in terms of seeking to develop a longer-term strategic vision for the Defence Forces. That applies not only to the Defence Forces' role in protecting the State and their international role, but also in presenting the Defence Forces as offering an attractive career path for people who want to choose them as a career option.

Aligning with the commission's role, I also want to advise members of the strategic review and development process currently under way within the Department. There is, in many ways, a parallel process here. There is a commission on the future of the Defence Forces and there is a review process of the Department, which is serious and robust. Both will report and conclude at the same time, which is appropriate for many reasons. This process, which will include, inter alia, a very comprehensive independent organisation capability review of my Department, allows for an objective assessment of the Department's capabilities and capacity to deliver on objectives and presents an opportunity for my Department to take positive action to address any gaps that may emerge from this review process. This process will be ongoing throughout the year.

The onset of the pandemic has forced a significant recalibration for all of us, as individuals and as organisations. However, through a combination of innovation, resilience and sacrifice, the collective national response, which encompassed significant defence inputs, has helped us to turn a corner. We can now start to look forward with real optimism to an easing of restrictions and a return to some semblance of normality across society.

I am very pleased with the significant overall level of funding of more than €1 billion provided to the defence sector for 2021. This allocation ensures that the Defence Forces will have the necessary level of resources to enable them to fulfil all the roles set by the Government and within the White Paper on Defence. Committee members have been provided with briefing material on both the defence and Army pension Estimates and I look forward to a positive engagement and to addressing any of the questions committee members might have. If there are technical or detailed questions that I cannot address today, perhaps committee members could send such questions on in writing or, as with previous meetings, if they want to follow up with telephone calls or meetings with me and various experts in the Department, we would be happy to do that.

That was quite a long introduction but hopefully it answers some of the questions from earlier on.