Tom Kitt (Dublin South, Fianna Fail)

I propose to take Questions Nos. 6 and 19 together.

The Naval Service provides the maritime element of the Defence Forces and has a general responsibility to meet contingent and actual maritime defence requirements. In the 2000 White Paper on Defence, the Government decided that the Naval Service would be based on an eight-ship flotilla and committed to a modernisation and replacement strategy to maximise the operational capacity of those eight vessels. The White Paper specifically provides that "new vessels will be brought on stream to replace older ones as these fall due for replacement". Naval Service vessels are generally replaced when they have come to the end of their useful life, which is normally approximately 30 years. Three ships will fall due for replacement over the next few years — LE Emer, commissioned in 1978, LE Aoife, commissioned in 1979 and LE Aisling, commissioned in 1980.

Following a detailed examination of the needs of the Naval Service a vessel replacement strategy has been put in place to cover the period up to 2012. The vessel replacement strategy combined with a continual process of refurbishment will ensure that the operational capability of the Naval Service is commensurate with the roles assigned to it.

Following Government approval in July 2007 to go to tender, notice of a competition for the purchase of replacement vessels for the Naval Service was sent to the EU Journal on 24 August 2007. The competition for the purchase of two offshore patrol vessels, with an option of a third and one extended patrol vessel, with an option on a second, will be subject to a restricted procurement procedure in accordance with EU procurement directives. The process comprises two stages — stage 1, a request for proposals, and stage 2, an invitation to tender. The closing date for stage 1 - receipt of proposals — was 26 October 2007. Following evaluation of proposals, a detailed specification will issue to those invited to participate in stage 2. The evaluation of stage 1 proposals and the preparation of the detailed specification for stage 2 is ongoing. The invitation to tender is expected to issue in May 2008, with tenders due in July-August. Following detailed tender evaluation, it is intended to award a contract in late 2008-early 2009. To ensure the integrity of the competition process, I will not release details relating to the numbers and-or names of the respondents to the request for proposals until the entire competition process has concluded.

The decision to proceed with the final award of contract to purchase the vessels will be subject to further Government approval and agreement on funding, the full requirement for which will not be known until the tender competition has concluded, and, therefore, financing arrangements have not been put in place. It is expected the cost of the three new ships will be of the order of €180 million, excluding VAT. Once details of costs are known, funding arrangements will be a matter for further consideration in consultation with the Minister for Finance in the context of the Estimates process. It is expected the vessels will be delivered on a phased basis between 2010 and 2012.

See this speech in context