Michael McGrath (Cork South Central, Fianna Fail)
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Question 478: To ask the Minister for Defence the position regarding the procurement of new naval vessels for the Naval Service. [23967/07]

Willie O'Dea (Limerick East, Fianna Fail)
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The Naval Service provides the maritime element of the Defence Forces and has a general responsibility to meet contingent and actual maritime defence requirements. In the 2000 White Paper on Defence, the Government decided that the Naval Service would be based on an 8-ship flotilla and committed to a modernisation and replacement strategy to maximise the operational capacity of those 8 vessels consistent with the roles assigned to the Naval Service. The White Paper specifically provides that "New vessels will be brought on stream to replace older ones as these fall due for replacement". Naval Service Vessels are replaced when they have come to the end of their useful life, which is normally around 30 years. Three ships will fall due for replacement over the next 3 to 5 years — LE Emer, commissioned in 1978, LE Aoife, commissioned in 1979 and LE Aisling, commissioned in 1980.

Following a detailed examination of the needs of the Naval Service a vessel replacement strategy has been put in place to cover the period up to 2012. The vessel replacement strategy combined with a continuous process of refurbishment will ensure that the operational capability of the Naval Service is maintained at a very high level. Following Government approval in July 2007 to go to tender, notice of a competition for the purchase of replacement vessels for the Naval Service was sent to the Official Journal of the European Union on 24 August 2007.

The competition is for the purchase of two Offshore Patrol Vessels, with an option of a third and one Extended Patrol Vessel, with an option on a second. The options provide an effective value for money opportunity, at locked in prices, to provide replacements for Naval Service vessels which will reach the end of their service life in the years immediately following the current replacement programme. The competition uses a Restricted Procedure which comprises two stages — Stage 1, a Request for Proposals and Stage 2, an Invitation to Tender.

The closing date for Stage 1 — receipt of Proposals is 26 October 2007. Following evaluation of Proposals a detailed specification will issue to those invited to participate in Stage 2. The evaluation of Stage 1 Proposals and the preparation of the detailed specification for Stage 2 will be carried out between November 2007 and April 2008. Depending on the quality of the proposals received there will be a maximum of 7 companies invited to tender. This invitation to tender is expected to issue in May 2008, with tenders due in July/August. Following detailed tender evaluation it is intended to award a contract in late 2008.

The decision to proceed with the final award of contract to purchase the vessels will be subject to Government approval and agreement on funding, the full requirement for which will not be known until the tender competition has concluded. However, it is expected that the cost of the three new ships will be of the order of some €180m. The funding arrangements for this will obviously be a matter for further consideration, in consultation with my colleague the Minister for Finance in the context of the Estimates process. It is expected that the vessels will be delivered on a phased basis between 2010 and 2012. The Government is committed to continuous investment in the equipment needs of the Naval Service to enable it to carry out the roles assigned to it.