Eamon Ryan (Dublin South, Green Party)
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Question 44: To ask the Minister for Defence if he will report on the voluntary code to boost cross-border competition in military equipment, which is to be agreed in November 2005 by EU Defence Ministers; and if he will make a statement on the matter. [17563/05]

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.

I attended a meeting of the EDA steering board on Monday last where the head of the EDA, Secretary General-High Representative Solana, presented the first report on the activities undertaken by the EDA since its establishment. The report outlined progress made on the agency's work programme for the year. The early priorities mainly concerned the setting up of the agency, appointments made to the agency's staff and office premises. The early work programme focused on relations with external entities such as member states, NATO and the defence industry.

The agency has also initiated research work and studies on the European defence equipment market with a view to reducing the level of fragmentation in the market and supporting greater co-ordination in the area of research, technology and procurement. Part of the agency's plan on the European defence equipment market is the development of a voluntary code of conduct on arms procurement which would seek to eliminate or reduce the use of Article 296 and the use of offsets and other market distortion instruments.

I believe the agency 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 we should encourage developments which improve market efficiencies or which may yield some economies of scale for equipment procurement for the Defence Forces.