Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 40: To ask the Minister for Defence if he will make a statement on the meeting of EU Defence Ministers in Innsbruck, Austria, on 6 and 7 March 2006 during which it was decided to create a common defence research and technology fund to reduce the gap between EU and US spending on high-tech military equipment. [12076/06]

Willie O'Dea (Limerick East, Fianna Fail)
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The steering board of the European Defence Agency, EDA, met in Defence Ministers formation in Innsbruck, Austria, on 7 March 2006 and one of the items discussed was the need for a new mechanism for joint investment in research and technology projects. The EDA is proposing to establish a category A or opt-out programme with an associated budget. The first area of joint work being considered is force protection and the detection and neutralisation of a range of threats to military personnel, vehicles and installations in the context of ESDP missions. The agenda item was premised on the view that category A or opt-out programmes would enable more member states to contribute to the overall research and technology effort, would allow each member state to take its own decision on whether to contribute to such a programme and would leave control firmly in the hands of member states that choose to contribute.

While discussions took place at the meeting on the outline concept of such a programme, significant further elaboration and refinement is required before decisions can be taken, probably at the next steering board meeting in May. Participation in any EDA programme is a matter for each member state on a case-by-case basis and the EDA does not have the authority to force states to contribute to, or participate in, any particular programme.

The main focus of the EDA is on obtaining better value for existing spending levels and securing improvements and greater efficiency, especially in the area of research, technology, manufacturing and procurement. Ireland has advocated that the EU should prioritise the development of qualitative aspects of capability development. This view, and a recognition of the need for greater efficiency and effectiveness in defence expenditure, is shared by many of my ministerial colleagues at EU level at a time when the majority of member states, including Ireland, have no plans to increase their defence spending.

The EDA is an important forum through which the EU can seek to improve competitiveness and efficiency in the defence equipment sector which has been notable for fragmentation and duplication. While Ireland is not a major consumer of defence equipment in relative terms, we should encourage developments which improve market efficiencies or which may yield some economies of scale for equipment procurement for the Defence Forces.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I agree with greater efficiency and better value but I am concerned about the concept behind the research and technology fund. Is the Minister aware that Javier Solana, the EU foreign policy chief, stated that the purpose of the fund is to spend more together and more efficiently on research and technology? The press release stated that the Ministers reviewed three possible approaches to increasing spending and collaboration on defence research and technology. How does that square with the Minister's claim that the commitment to the EU will not involve increased military spending? Will the Minister make a commitment that the State will not participate in this fund and increased spending in the future? If he is not giving that commitment, how much money does he intend to spend on the first aspect he mentioned and will this research and technological forum cover aspects of military nuclear research?

Willie O'Dea (Limerick East, Fianna Fail)
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In his question Deputy Ó Snodaigh referred to this matter being decided in Innsbruck on 6 and 7 March. This is incorrect. No decision was taken. It was discussed in a general way and the view around the table was that it will have to be teased out more before any decision, even a decision in principle, is taken. If a decision is taken at the May meeting or a subsequent meeting to go ahead with this programme it will be for each state to decide whether to participate. Deputy Ó Snodaigh referred to a statement by Mr. Javier Solana. While I am aware of Mr. Solana's views and he has his own brief, the defence ministries of the member states have no plans, collectively or individually, to increase expenditure in the short term. Ireland is no exception.

What is proposed is a system to get better value for the money we are spending. The defence equipment, research and technology markets are fragmented. Individual countries purchase their equipment, research and technology. The goal of the EDA is to create a centralised market whereby they purchase together in the hope of getting greater value for money. It is not a matter of spending more but of maximising the value we are getting from existing expenditure. On the surface it appears we have no great reason to join this because what is proposed is joint investment in research and technology, initially in force protection such as body armour. As far as I am aware there will be no nuclear aspect to that.

Ireland spends no taxpayers' money on military research and technology. However the technology and research used by civil firms, particularly in computing and communications, is increasingly being integrated into military technology. Items produced by civil companies may be used by the military, for example truck gear boxes made by a civil company could end up in army trucks although that was not the initial intention. A number of Irish companies supply components for other companies which finish up in military hardware produced elsewhere. If Irish companies could achieve economies of scale as a result of the joint approach proposed by the EDA, I would look positively on it. It is not immediately apparent that the benefits will be sufficiently significant. We must return to the drawing board at the next meeting, in May, which I will attend, and see precisely what is proposed. I will examine it from the perspective of private Irish companies rather than that of the Government because it spends no money on military research and technology and has no intention of doing so.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Will the Minister make a commitment to present the proposals to the Oireachtas before a decision is taken in principle?

Willie O'Dea (Limerick East, Fianna Fail)
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I presume Deputy Ó Snodaigh suggests that if it is decided in Innsbruck to develop the concept, before we opt in I should bring it back to the Oireachtas.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Yes.

Willie O'Dea (Limerick East, Fianna Fail)
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Okay.