Tony Killeen (Clare, Fianna Fail)

I propose to take Questions Nos. 28, 69 and 71 together.

In common with all areas of the public service, the Department of Defence and the Defence Forces will operate with reduced funding for 2011. The gross Estimate for Department of Defence and Army pensions combined in 2011 is €933 million, an overall reduction of 4% on the 2010 Estimate. Defence spending at €725 million, including capital, will be reduced by €30 million or 4% on the 2010 Estimate. The provision for Army pensions for 2011 is €208 million, which is, of course, non-discretionary expenditure.

It should be noted that a very significant proportion of defence spending is accounted for by pay and allowances. The bulk of the non-pay element is spent on items such as fuel and utility costs and the maintenance and replacement of essential stores and equipment.

The expenditure reductions in 2011 will be achieved mainly through the reduction in the cost of participation in overseas missions, in addition to savings delivered through the postponement of expenditure on equipment and capital works across the Defence Forces. The 2011 capital Estimate of €12 million reflects a 25% reduction on the 2010 provision. Capital spending will focus on building works to improve the accommodation and facilities of the Defence Forces.

While there have been reductions in the overall defence budget, steady investment since 2000 means that the Defence Forces are well placed to address the challenges for 2011.

The administrative efficiencies of €3 million in 2011 will be achieved chiefly through reduced employee numbers and related costs. The full year yield of €21 million on administrative efficiencies referred to in budget 2011 relates primarily to payroll savings across the Vote that will accumulate by 2014.

Expenditure in every area of Defence Forces activity is being critically appraised. The priority now and into the future is to maintain the capability of the Defence Forces to deliver effective services across all the roles assigned by Government.

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