Emmet Stagg (Kildare North, Labour)
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Question 65: To ask the Minister for Defence if his attention has been drawn to the fact that the Defence Forces budget has almost halved in the past 10 years as a percentage of GNP; if he has satisfied himself that the Defence Forces can fulfil their domestic and international obligations on such a reduced budget; and if he will make a statement on the matter. [38189/06]

Willie O'Dea (Limerick East, Fianna Fail)
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Expenditure under the Defence and Army Pensions Votes has increased from €646 million in 1997 to an estimated outturn of €958 million in 2006. This represents an increase in defence spending of some 48% over that period.

The level of expenditure on defence in any particular country is influenced by a variety of factors, including that country's political and security environment, its history, demography and economy. While defence spending in this country has fallen as a percentage of GNP in recent years, this is not due to any reduction in the level of defence expenditure, but rather because of the massive increase in GNP.

There has been an unprecedented level of expenditure on infrastructure and equipment for the Defence Forces in recent years. This was made possible by the Government's decision that pay savings arising from the reorganization of the Defence Forces, set out in the White Paper 2000, along with proceeds from the sale of surplus properties, would be fully reallocated for investment in modern facilities and equipment.