Michael D Higgins (Galway West, Labour)
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Question 98: To ask the Minister for Defence his plans for joint procurement of arms and equipment for the Defence Forces and the military forces of other States; and if he will make a statement on the matter. [6696/05]

Willie O'Dea (Limerick East, Fianna Fail)
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A decision to establish an intergovernmental agency in the field of defence capabilities development, research, acquisition and armaments, known as the European Defence Agency, EDA, was formally adopted at the General Affairs and External Relations Council meeting on 12 July 2004.

The overall aim of the agency is to support member states in their efforts to improve European defence capabilities in support of European security and defence policy. To achieve this, the agency has been ascribed four functions, relating to: defence capabilities development; armaments co-operation; the European defence technological and industrial base and defence equipment market; and research and technology.

At its meeting on 6 July 2004 the Government agreed that Ireland would participate in the framework of the agency. Participation in individual projects of the agency will be a matter for national decision on a case-by-case basis. Ireland is not involved in any projects at this stage.

The agency, which is still in the early stage of development, will be an important forum by 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, I believe that we should encourage developments which improve market efficiencies or which may yield some economies of scale for equipment procurement for the Defence Forces.

Ireland paid a contribution of €21,733.07 towards the agency's initial general budget for 2004. A provision of some €315,000 has been sought in respect of the agency for 2005, which includes a contribution to "once off" capital costs in respect of accommodation and facilities.