Lisa Chambers (Mayo, Fianna Fail)
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45. To ask the Taoiseach and Minister for Defence the preparations the Government is making to pursue industrial and employment opportunities arising from the European Defence Fund; and if he will make a statement on the matter. [7345/17]

Paul Kehoe (Wexford, Fine Gael)
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The College of Commissioners adopted the European Defence Action Plan on 30 November and it must go through the wide-ranging and extensive EU procedures before any part of it becomes a reality.

The aim of the plan is to explore how EU policies and instruments can ensure that the EU's industrial and skills base will be able to deliver required defence capabilities in view of current and future security challenges. As part of this plan, the Commission has proposed the creation of a European defence fund. The purpose of the fund is to promote research and innovation and contribute to the strengthening of the European defence technological and industrial base. It is also designed to stimulate further the development of key defence capabilities.

For many member states, the defence sector is a significant contributor to jobs, growth and innovation. In the EU, the defence industry makes an economic contribution of €100 billion, with 1.5 million direct and indirect employees. While Ireland does not have a defence industry, we have particular strengths in the area of dual use and civil commercial technologies that can support defence capabilities and contribute to the Irish economy.

In this regard, the Government approved arrangements in July 2011 whereby Enterprise Ireland would support the Department of Defence and the Defence Forces' capability development through engagement with Irish-based enterprise and research institutes on the use and application of innovative civilian technologies in the military sphere. The Government's decision allows for greater engagement with Enterprise Ireland and Enterprise Ireland-supported companies, which contributes to the Defence Forces' capabilities across the full range of their activities.

A co-ordinated approach will be required from Departments to ensure that Ireland is optimally positioned to avail of the industrial and employment opportunities that may arise from the Commission's proposals. In this regard, officials from my Department are co-ordinating with their counterparts in other Departments, including the Departments of Finance, Public Expenditure and Reform and Jobs, Enterprise and Innovation.

Lisa Chambers (Mayo, Fianna Fail)
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Last year, the EU made proposals on establishing a European defence fund. This fund consists of two financial structures: a research window to fund collaborative defence research projects at EU level and a capability window to support the joint development of defence capabilities commonly agreed by member states. This will be financed through the pooling of national contributions and, where possible, supported by an EU budget.

There are also proposals to foster investment in SMEs, startups, mid-caps and other suppliers to the defence industry as a key part of this. Clearly, it represents a large opportunity for Irish SMEs. What is the Government doing to make Irish companies aware of this potential and will the Minister of State provide further detail of the liaisons he has had with other Departments on this matter?

Paul Kehoe (Wexford, Fine Gael)
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The action plan will be sent to the European Parliament, the European Council, the Committee of the Regions and the European Economic and Social Committee for formal response. We need to consider how best Ireland can benefit from the action plan. Industries need to be positioned to avail of the research funding opportunities that will arise under the preparatory action and the Commission's proposed European defence fund. The Department of Jobs, Enterprise and Innovation has advised that, in conjunction with its agency, Enterprise Ireland, it is assessing the potential for Irish companies to secure contracts under the proposed research window.

Regarding the forthcoming first call under the preparatory action, the national support network of Horizon 2020, led through Enterprise Ireland, will seek to identify specific companies to respond to the call once it has been published.

Pat Gallagher (Donegal, Fianna Fail)
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I thank the Minister of State.

Paul Kehoe (Wexford, Fine Gael)
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In conclusion, the network will support participating companies-----

Pat Gallagher (Donegal, Fianna Fail)
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A final supplementary question. I have been more than lenient.

Paul Kehoe (Wexford, Fine Gael)
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-----in making applications.

Lisa Chambers (Mayo, Fianna Fail)
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This presents a major opportunity for Ireland. We have never seen the development of a fund like this before. The research window presents significant opportunities to liaise with European colleagues in research areas like communications, cybersecurity, etc. We would be foolish not to consider the capability window funding. We have severe deficiencies in our capabilities as regards equipment and so on. We must put a plan in place so that, when this funding comes on stream, we are ready to apply. I am asking the Minister of State not to miss this opportunity and to work hard with his Department. I am sure that other Deputies will be available to assist. We cannot miss this opportunity. Clearly, we do not have the funds to get our capabilities up to where they need to be ourselves.

Paul Kehoe (Wexford, Fine Gael)
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I agree with the Deputy opposite that this is a significant opportunity for Ireland. My Department will be assisting in every way possible. Beyond the Department of Defence, a range of other Departments and agencies, specifically Enterprise Ireland, are involved. While Ireland may not have an arms industry, a number of companies are involved in the development of new technologies and capabilities that have dual military and civil application.

This is an opportunity for Ireland to put its best foot forward and draw down some of the available funding. There are major job opportunities for Ireland in that regard.