Willie O'Dea (Limerick East, Fianna Fail)

The operating cost of this State must be sustainable. This means moderating our spending and driving the value-for-money agenda harder. Second, we will continue to invest in the productive capacity of the economy. We will improve our national infrastructures even further by continuing to invest in roads, communications, education and public services.

My over-riding priority as Minister is the modernisation of the Defence Forces. We have maintained and must maintain modern Defence Forces capable of meeting the needs of Government and the public and delivering value for money. I have witnessed the tremendous work being done by members of the Permanent Defence Force at home and in various overseas missions, most recently during my visit to Chad. I know that everyone in this House will join me in thanking the members of Óglaigh na hÉireann and their families for the great sacrifices they make in the service of the State. The development and modernisation of the Defence Forces over the past decade has been a major public sector success. The Defence Forces and the Department of Defence have led the way and will continue to do so. Seeking the delivery of more productivity, value for money and excellence is now hard-wired into the ethos of the Defences Forces organisation.

The Government is fully committed to Defence and to ensuring our ability to meet our commitments at home and on the international stage. In recent years we have made considerable progress in regard to a number of matters, a few of which I want to mention. As part of our policy of securing value for money I concluded an agreement with the Irish Banking Federation in May 2005 to ensure banks pay the costs incurred by the Defence Forces in the provision of cash escorts. This agreement runs up to 2010. From 1995 to 2004 the banks paid an annual fixed contribution of €2.86 million. That was increased to €6.03 million in 2005; €6.47 million in 2006 and €7.34 million in 2007. My Department continues to examine and review its property portfolio with a view to disposing of those lands deemed surplus to military requirements.

An important policy area has been the provision of greater opportunities for enlisted personnel to advance into the officer corps. I point to recent progress in this area with the commissioning on 10 June last of 24 personnel from the enlisted ranks. I am pleased to say that a career in the Defence Forces is seen as an extremely attractive and popular option. The number of applications received far exceeds the number of positions available. In 2007, for example, there were 25 applicants for every cadet vacancy and seven applicants for every general service recruit vacancy.

Significant investment in equipment and personnel has taken place in recent years across all facets and elements of the Defence Forces. We have acquired 80 Mowag APCs since 2001 at a combined cost of some €120 million. More than €13.5 million has been invested in the provision of an integrated protection and load carrying system for individual soldiers. In addition, six utility AW 139 helicopters are being acquired from Agusta Westland at a cost of €75 million, inclusive of VAT.

We have also introduced several other important reforms. Action on equality, dignity and bullying has been implemented in a manner that will prove a useful model to other State and commercial operations. The creation of an independent Ombudsman for the Defence Forces and the comprehensive reform of military law have further advanced the equality and fairness agenda. All these important reforms and improvements leave the entire Defence Forces organisation well placed to address the adjustments and savings needed to ensure sustainable defence expenditure in the years to come.

To set the 2008 defence expenditure savings in some context, the €4.6 million saving we are making this year is just slightly more than the additional €4.48 million paid by the banks for cash escorts in 2007. We will secure the €4.6 million in savings under several headings. Approximately €2 million will come from payroll savings, a further €500,000 will come from the deferral until 2010 of the proposed Reserve Defence Force information and recruitment campaign, while the balance of approximately €2.1 million will be secured in savings in the building, refurbishment, equipment and administrative budgets. I assure the House that the savings will not impact on the ongoing operations of the Defence Forces at home or overseas.

What I certainly do not propose is to take lessons on economic responsibility from the economically illiterate.

See this speech in context