Brendan Howlin (Wexford, Labour)
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Question 100: To ask the Minister for Defence if his attention has been drawn to the fact that the rate of inflation has now reached 5.2% and that the increase in the Estimates for his Department was only 4.6% and that this represents a reduction in real terms on the 2006 estimates; his plans to ensure that cutbacks in defence spending do not occur; and if he will make a statement on the matter. [8881/07]

Willie O'Dea (Limerick East, Fianna Fail)
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The gross 2007 Estimate (capital and current) for the Defence Vote represents an increase of 4.9% on the 2006 Estimate and an increase of 6.4% on actual expenditure in 2006. The corresponding percentage increases for the Army Pensions Vote are 5.3% and 4.4%, respectively.

The Department of Finance forecast for Consumer Price Index (CPI) inflation for 2007 is an annual average increase of 4.1%. It should be noted that a significant portion of the increase in CPI inflation during the past year is due to increases in interest rates, which have no bearing on defence expenditure.