Joe Sherlock (Cork East, Labour)
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Question 11: To ask the Minister for Defence his views on the halving of the national defence budget during the past ten years; if his attention has been drawn to the fact this budget has fallen from 1.3% to 0.7% as related to gross national product in that period; his further views on whether this decrease is compromising Ireland's defence capabilities; and if he will make a statement on the matter. [31990/05]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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Question 27: To ask the Minister for Defence the gross annual budget of his Department in 1995, 2000 and 2005; and if he will make a statement on the matter. [31887/05]

Willie O'Dea (Limerick East, Fianna Fail)
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I propose to take Questions Nos. 11 and 27 together.

The gross allocation for the Defence and Army Pensions Votes was €566 million in 1995, €789 million in 2000 and €934 million in 2005. The level of expenditure on defence in any particular country is influenced by a variety of factors, including that country's political and security environment, its history, demography and economy. While defence spending in this country has fallen as a percentage of GNP in recent years, this is not due to any reduction in the level of defence expenditure, but rather because of the massive increase in GNP.

There has been an unprecedented level of expenditure on infrastructure and equipment for the Defence Forces in recent years. This was made possible by the Government's decision that pay savings arising from the reorganisation of the Defence Forces set out in the White Paper 2000, along with proceeds from the sale of surplus properties, would be fully reallocated for investment in modern facilities and equipment. More than €192 million was spent on the capital investment programme for the upgrade of barracks, accommodation and other facilities between 1997 and the end of 2004. This year's Defence Estimate includes a further €19 million for such capital works.

Substantial progress has also been made in recent years with the acquisition of modern equipment for the Army, Air Corps and the Naval Service. During the past six years, more than €200 million has been expended on the purchase of 65 armoured personnel carriers and the Javelin missile system for the Army, new patrol vessels for the Naval Service and new trainer aircraft for the Air Corps. Last January, I signed contracts for six new helicopters for the Air Corps costing more than €60 million. Planning is well under way on the replacement programme for the next Naval Service ships to reach the end of their economic life and a further 15 armoured personnel carriers, APC, will be added to our fleet. It is expected that the contract for the additional 15 APCs will be signed by the end of the year. Further details of the re-equipment programme are contained in a reply to a later question on the Order Paper.

Joe Sherlock (Cork East, Labour)
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I wish to ask a brief supplementary question, and I request a brief reply from the Minister. Is it true that the budget has decreased from 1.3% to 0.7% of gross national product during that time?

Barry Andrews (Dún Laoghaire, Fianna Fail)
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Statistics can prove anything and the Minister dealt with this in his earlier comments. Is the reduction in Army personnel which occurred during the past few years a pattern and, as referred to in my question, can the increase in spending be identified during that period? I listened to this debate for the past while. On the one hand the Labour Party calls for increases in defence spending, while on the other hand the Green Party, its purported partner in Government, seeks a reduction in defence spending, and is frightened about the constitution for Europe and battle groups.

Joe Sherlock (Cork East, Labour)
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The time for this question is almost up. We want the Minister to reply if he will do so.

Barry Andrews (Dún Laoghaire, Fianna Fail)
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It proves a certain amount of incoherence.

Billy Timmins (Wicklow, Fine Gael)
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The same as between the Government parties.

Barry Andrews (Dún Laoghaire, Fianna Fail)
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Is the Minister satisfied that the statement released to the media regarding the Southern Command and activities that occurred during a period of years is the end of the matter? Does he think it more appropriate to carry out an investigation?

Joe Sherlock (Cork East, Labour)
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A question was not asked.

Billy Timmins (Wicklow, Fine Gael)
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The Reserve Defence headquarters will be in Dún Laoghaire.

Willie O'Dea (Limerick East, Fianna Fail)
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The answer to Deputy Sherlock's question is that similar to every other EU country since the fall of the Berlin Wall, our expenditure on defence as a percentage of GDP has decreased. Nevertheless, in real terms, our expenditure on defence has increased.

To answer Deputy Andrews's question, during the past ten years we have increased expenditure in real terms by approximately 25% over the rate of inflation. I am not absolutely satisfied by the statement issued yesterday on behalf of the Southern Command. That report has not yet come to my desk. When it does I will decide what has to be done with it, and if I have any suspicion that a crime was committed I will take action and forward the report to the appropriate authorities.