Willie O'Dea (Limerick East, Fianna Fail)

I thought the Deputy was worried that the percentage is decreasing. Looking at overall expenditure on defence in the context of the budget, we were able to reduce expenditure as a percentage of GDP because we had money coming in from savings as a result of reductions in personnel and the sale of surplus property. Defence expenditure would not have made any major difference to our economic performance in the past ten years.

In 1994, the gross expenditure on defence was €546 million and in 2004 it will be €900 million. Inflation between 1994 and 2004 was 40%, whereas the gross expenditure on the defence and Army pensions Votes increased by about 65% in the same period, a substantial increase. I accept Deputy McGinley's point that the sale of property and other one-off funding sources is drying up but I have no plans to sell any more barracks. There may be some minor property sales but no more barracks will be sold. I must now go back to the Estimates system to get money to ensure the substantial improvements to equipment, infrastructure, efficiency and training are maintained. The House can rest assured that I will fight my corner at the Cabinet table to ensure sufficient resources are forthcoming for those purposes.

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