Pearse Doherty (Donegal South West, Sinn Fein)
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Question 57: To ask the Minister for Defence the total cost for the provision of two new off shore patrol vessels for the Naval Service. [38662/11]

Paul Kehoe (Wexford, Fine Gael)
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The contract price for the provision of two new offshore patrol vessels for the Naval Service is €99 million, exclusive of VAT, and subject to contract terms and final agreed costs. In addition, the cost of providing a weapons system for the ships, similar to the systems on LE Roisin and LE Niamh, will be €7.8 million, exclusive of VAT. The contract for the two ships was placed with Babcock Marine UK in October 2010. Payments on the contract are scheduled over a period of eight years, 2010-17, and are being funded from within the annual defence budget.

A total of €38.7 million has been paid over to date on the contract, including VAT payments to the Revenue Commissioners. The next stage payment of €12 million is scheduled before the end of March 2012 with an accompanying VAT liability of €2.7 million falling payable.

Preparations for the construction of the ships have commenced in Appledore, UK, and the first cutting of steel took place in November. The first ship is scheduled for delivery in early 2014. The second ship will follow one year later. I am advised that the production schedule is on time and in accordance with the contract and that to date there are no difficulties foreseen.

The acquisition of these modern new vessels is a priority for the Defence Forces. The Deputy should note that Naval Service vessels are replaced when they have come to the end of their useful life, which is normally around 30 years. These acquisitions, combined with a continuous process of refurbishment and repair, will ensure that the operational capability of the Naval Service is maintained at a satisfactory level in the coming years.

Jonathan O'Brien (Cork North Central, Sinn Fein)
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The two new ships are set to replace the LE Roisin and the LE Niamh. The first one is due in early 2014. Are there any other outstanding requests from the navy for equipment which we are unable to meet because of the new economic situation in which we find ourselves?

Paul Kehoe (Wexford, Fine Gael)
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I am not aware of any outstanding equipment for which the Naval Service is waiting. I am not sure if the Minister, Deputy Shatter, has been made aware of any such request. I can assure the Deputy that the two new ships will be put to very good use. They are needed within the Naval Service. We are all aware of the excellent work it carries out on a daily basis in very difficult and dangerous circumstances, for which it has to be commended. The first ship is scheduled for delivery in early 2014 and the second will follow in early 2015. I can assure the Deputy that any moneys spent have been spent very wisely by the Naval Service.

Jonathan O'Brien (Cork North Central, Sinn Fein)
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Can I confirm that €12 million is due in 2012?

Paul Kehoe (Wexford, Fine Gael)
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Yes, the next staged payment is €12 million and is scheduled for the end of March 2012, with an accompanying VAT liability of €2.7 million falling payable.

David Stanton (Cork East, Fine Gael)
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The LE Eithne and LE Deirdre are being replaced, not the LE Roisin and LE Niamh. They are the new ships. Conditions in the Atlantic have become harsher and more difficult over the past number of years. The Naval Service provides a very important function in terms of fishery protection, drug detection, rescue and combatting human trafficking, among other functions. Its work often takes place over the horizon and is not seen.

Its work is essential and must be supported 100%. Will the Minister of State indicate when the next two ships are planned to be replaced?

Paul Kehoe (Wexford, Fine Gael)
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I am not certain when the next two ships are planned for replacement. However, as a person from a coastal county myself, I assure the Deputy that I am mindful of the very important job carried out by the Naval Service. The Taoiseach recently travelled on one of the naval vessels and was greatly impressed by the extensive work carried out and the important nature of that work, whether in fisheries, drug interceptions or otherwise. The general public is probably not aware of the extent of the work carried out by the Naval Service. On a recent visit to Haulbowline, at which Deputy Stanton was in attendance, I was very impressed by the duty and dedication to their work of the staff, who conduct themselves in a very professional manner in sometimes difficult and dangerous circumstances at sea.

Dara Calleary (Mayo, Fianna Fail)
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I endorse everything the Minister of State and Deputy Stanton said in regard to the Naval Service. I commend Commander Mark Mellet and everybody involved. Given the role the Naval Service plays in fisheries protection and in drug seizures on an EU basis, is any contribution being made from the EU to the cost of these ships?

Paul Kehoe (Wexford, Fine Gael)
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A sum of €900,000 was recently approved for that purpose and paid by the Commission. It is unlikely that further funding will be available from the EU, but this will not deter the Department or the Naval Service from seeking further moneys. I assure the Deputy that we will seek to maximise any funding possibilities that arise. When buying ships or other equipment, we will always investigate any financial assistance that might be available. I join Deputy Calleary in commending his fellow countyman, Commander Mellet, on his work at Haulbowline.