Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I would not accept Deputy Crowe's assertion on that. Ireland recognises that for certain EU member states, defence is a significant contributor to their economies and represents an industry of €100 million, with 1.5 million people employed directly and indirectly. As I have previously told the House, for Ireland to have well-equipped and capability-driven defence forces we must support funding for defence research. That is exactly what this is about. Ireland may not have a defence industry but it does not stop Ireland tapping into funding through our well-established companies in the dual use, product and technology sectors. Under the development and acquisition strand of the proposed defence fund, Ireland welcomes that a proportion of the overall budget proposed for projects involving cross-border participation of SMEs. This may give Irish industry and opportunity to participate in this proposed programme. Ireland's position will continue to develop through the interdepartmental group established to examine the implications of the defence fund for Ireland and to ensure a consolidated position on the proposals before us. The defence industry development programme proposed under the capability window will now be referred to the EU Parliament and Council for their consideration and the Commission hopes that this programme will be agreed and in place for the period 2018-2019. On the 2017 preparatory action under the research window, my Department is working closely with the Department of Jobs, Enterprise and Innovation and Enterprise Ireland to ensure Irish industry and academia are well informed about opportunities that may arise from this programme. This has no influence whatever on our policy of neutrality.

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