Dáil debates

Thursday, 14 March 2013

Ceisteanna - Questions - Priority Questions

Defence Forces Spending

4:30 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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To ask the Minister for Defence the way Ireland's defence expenditure as a share of GDP compares with those EU nations who are not members of NATO; and if he will make a statement on the matter. [13268/13]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I am taking these questions on behalf of the Minister for Defence who is out of the country. Each country pursues a defence policy that reflects its particular requirements and there can be significant differences in the proportion of funding that differing states allocate to defence. My colleague, the Minister for Defence, is committed to ensuring that the Defence Forces can continue to meet this State's defence policy requirements. The latest comparable figures obtained from the European Defence Agency show that Ireland's 2010 defence expenditure, including Army pensions, at 0.59% of GDP was the lowest of the six non-NATO EU member states. With regard to the other non-NATO EU members, the figures are as follows: Malta, 0.71%; Austria, 0.86%; Sweden, 1.23%; Finland, 1.50%; and Cyprus, 2.06%.

The current economic conditions have necessitated reductions in public sector expenditure in Ireland, including defence expenditure. Having regard to these resource constraints, the Minister has initiated a broad range of measures aimed at maintaining the operational capacity of the Defence Forces. Arising from the comprehensive review of expenditure, the Minister secured the agreement of Government to stabilise the strength of the Permanent Defence Force, PDF, at 9,500 personnel. Within this strength ceiling, a major re-organisation of the Defence Forces was initiated. This has prioritised operational capability and re-deployed PDF personnel from administrative and support tasks to operational units. A major re-organisation of the Reserve Defence Force is also currently underway. In addition, equipment procurement continues to prioritise Defence Forces operational requirements. Together, these measures are ensuring that the Defence Forces remain fit for purpose. The Chief-of-Staff has confirmed that the Defence Forces can continue to meet all operational requirements at home and overseas.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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I welcome the Minister of State. I think this is the second year in succession that he has been here for St. Patrick's week. I do not know whether he is averse to travel or keeps drawing the short straw.

His answer indicates clearly that Ireland's expenditure on defence has been very low as a proportion of GDP compared to other non-NATO members. I would like to explore by way of a supplementary question the impact of the Croke Park agreement on defence expenditure. One of the significant aspects of this is the reduction in pay and allowances for members of the Defence Forces. We explored this at the last Question Time with the Minister for Defence. I put it to him that it was important for the Minister to become an advocate for members of the Defence Forces who had already participated in reviews and reform long before many other areas of the public service did. We talked about allowances and the Minister accepted that they were an integral part of the pay of defence force members. Yet we saw a significant cut that impacts adversely on the lower ranks of the Defence Forces. I think the figures used are 14% for privates and 6% for generals.

It appears the Minister abandoned the commitment he made here, or I thought he made, to become an advocate for members of the Defence Forces and to defend their pay and conditions. Will the Minister of State comment on that and tell us how this will impact on expenditure as part of GDP?

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I thank the Deputy for his welcome. With respect, the question he asked concerned the way Ireland's defence expenditure as a share of GDP compares with those of other EU nations which are not members of NATO. The briefing I have refers to the question put down for answer as a priority question and does not mention the other issues raised by the Deputy. Notwithstanding the comments the Deputy made about Ireland's spending being lower than that of others, if one compares the non-NATO countries about which he asked with the Defence Forces' complement, Ireland is doing quite well in that we have about 9,950 full-time Army personnel and spend about €901 million on our armed services. If one compares this with other countries, one can see that Malta has 2,000 personnel. While its defence expenditure takes up a higher proportion of GDP, it spends much less than us at €44 million. Austria, which has a complement of 28,000 full-time army personnel, spends €2.4 billion. Sweden has a very large army of 259,000 full-time personnel and spends €4.2 billion. Its defence expenditure as a percentage of GDP is 1.23%. Finland has 35,328 full-time personnel and spends €2.7 billion. Cyprus has 12,000 personnel and spends €361 million. Notwithstanding the very difficult situation in which we find ourselves and the cuts that have taken place as a result of the comprehensive review of expenditure across all Departments, I reiterate that the Chief-of-Staff has confirmed that the Defence Forces can continue to meet all their operational requirements at home and overseas.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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I am anxious to discover how these income reductions will impact on the percentage of GDP that is expended. The Minister conceded here last month that quite a number of Defence Forces members are in receipt of income support through the family income supplement. I doubt this is true of defence force members in other EU member states. On top of that, if Defence Forces personnel are to experience as a result of Croke Park II further cuts of 14% for those at the lowest level of pay, surely that will have a devastating impact on them and their families.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I repeat that this was not in the question put down for priority answer. Having raised it, I will bring the points raised by the Deputy to the attention of the Minister and Department for direct reply.