Brian O'Shea (Waterford, Labour)
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Question 67: To ask the Minister for Defence the cost-benefit analysis that has been undertaken regarding the potential net savings to the Exchequer arising from the planned closure of St. Bricin's Military Hospital and four military barracks; and if he will make a statement on the matter. [42931/08]

Willie O'Dea (Limerick East, Fianna Fail)
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The closure of barracks and the consolidation of the Defence Forces formations into a smaller number of locations is a key objective of the White Paper on Defence. The consolidation process is designed to facilitate collective training and improved training standards, while also freeing up under-utilised resources and personnel for operational duties. The dispersal of personnel over an extended number of locations is a major impediment to essential collective training. It also imposes increased and unnecessary overheads on the Defence Forces in terms of barrack management, administration, maintenance and security.

As I have said in response to many questions in this House, Defence Forces properties are kept under constant review so as to ensure the most appropriate organisation of the Defence Forces, taking account of the operational requirements. The development and increased capability of the modern Defence Forces, when taken together with the improved security situation along the Border, has removed the rationale for having seven barrack posts along the Border and provided the opportunity for consolidation of units in a smaller number of locations. Four barracks at Monaghan, Longford, Lifford and Rockhill will be closed under the current consolidation plans.

The closure of St. Bricin's Military Hospital is a separate matter and arises from the Government decision to relocate the Defence Forces headquarters to the Curragh. Under the arrangements, services for the Defence Forces generally, which are currently provided by St. Bricin's Military Hospital, will transfer to the Curragh. St. Bricin's will remain in operation as a military medical facility, MMF, serving the eastern brigade until a modern facility suitable for the brigade is provided. Planning for the new facility has just begun.

The current plan has been put together in close consultation and co-operation with the Defence Forces general staff. It provides an overall package that will serve the needs of the Defence Forces into the future. A detailed cost-benefit analysis was compiled by the Department on the overall package of consolidation proposals. The immediate costs which will be incurred in preparing the barracks to receive the troops will be approximately €3.2 million, against annual recurring savings estimated at €2.7 million. Over a three year period, with the disposal of the properties, the net benefit to the Defence Forces will amount to some €23.6 million.

In the case of St. Bricin's, the upgrading of the military hospital in the Curragh will amount to some €2 million while the provision of the new medical facility in Dublin will amount to some €750,000. The funds realised from the disposal of St. Bricin's will be used to offset these costs and for further investment in Defence Forces equipment and infrastructure. In accordance with Government policy, receipts from the sale of military installations which are surplus to requirements will be reinvested in the Defence Forces.

Brian O'Shea (Waterford, Labour)
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Listening to the Minister one would think this was a strategic decision. Do the closures not arise from the fact that the Minister had to achieve economies in his budget this year? The real reason this is happening is to save money. Although there may be side benefits, such as those the Minister outlined, this would not have happened if he had not been asked to achieve economies. What evaluation has been done on the properties to be disposed of? Was any evaluation done before the budget announcement? Will we reach a situation such as the Minister's predecessor reached in October 1998 when he had to admit to the House that private security in Ballincollig was costing €1,400 per day? In these recessionary times there is very little demand for any properties here, to say the least. These could be on the Minister's hands for quite some time and a high security bill could be involved. What is his response to PDFORRA's estimate that the additional facilities that need to be provided at Dundalk, Finner Camp in Ballyshannon and Custume barracks in Athlone could cost approximately €3 million?

Willie O'Dea (Limerick East, Fianna Fail)
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One of the first things I received when I came into the Ministry of Defence was a request from the military to close further barracks on the basis that peace had arrived in Northern Ireland and there was no justification for seven Border posts. The British were already in the process of beginning to close their Border posts. The point was very forcefully made to me about the necessity for consolidated training. The missions we take on are more and more dangerous so it is important for troop safety that they train together. That was a consideration and there was also a cost element. I resisted the pressure from the military for quite some time but in the new economic environment I have had to look anew at what they said. Deputy O'Shea is correct that I had to achieve savings in the Department of Defence, like the other Departments. I could not have achieved these savings with the number of barracks we have, four of which are due to be closed.

The approximate estimated value of the four barracks is €21 million. For commercial reasons, I do not want to give the individual figures for each barracks. We have done a detailed cost-benefit analysis on the situation and over the next three years we estimate the change of station allowances, the cost of transport for 18 months, security in the closed barracks and all the other costs we will meet will come to approximately €23.5 million less than what we will save through recurrent savings on maintenance, administration, utilities, etc., and the potential value of the property we are getting back. That cost-benefit analysis is being given to the Comptroller and Auditor General or the Committee of Public Accounts — I am not sure which — and will appear in the public domain in the very near future.

Brian O'Shea (Waterford, Labour)
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I am pleased the cost-benefit analysis will be published — I was going to ask that question next. Is it realistic in the current climate to anticipate that the properties will be sold for any kind of a decent price? PDFORRA sees the change of station allowance as costing the State approximately €2 million and travel allowance for an 18-month period as costing approximately €3.7 million. That does not tally with the Minister's figures. I take it that he contests those figures vigorously. PDFORRA says that to provide the facilities its members will need at the locations to which they are being transferred would cost approximately €30 million. The Minister did not respond to that in general but would also contest it. Deputy Deenihan asked earlier when the facilities will be ready. Has the Minister any idea when the proper facilities will be available?

Willie O'Dea (Limerick East, Fianna Fail)
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I contest those figures. I am told that €500,000 is all that is necessary to immediately spend on the barracks to which the troops are going because there are extensive facilities available in those barracks already. I am taking into account the various allowances, the cost of transportation and that €500,000. We envisage spending another €2.5 million on infrastructure over the next three years and that brings the figure up from €3.2 million to €5.9 million. I cannot understand how anybody can come up with a figure that says closing barracks will cost us more than keeping them open, especially when we have experience in the past of the savings we have got from barrack closures. That makes no sense.