Darragh O'Brien (Dublin North, Fianna Fail)
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Question 120: To ask the Minister for Defence the major equipment purchases planned for 2008 and 2009; the progress being made in sourcing new equipment and vehicles; and if he will make a statement on the matter. [25475/08]

Willie O'Dea (Limerick East, Fianna Fail)
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The acquisition of new equipment for the Defence Forces continues to be a key focus for me as Minister for Defence. Significant investment has taken place in recent years across all facets and elements of the Defence Forces. This investment has been assisted by pay savings arising from the reduction in the strength of the Permanent Defence Force in the context of the White Paper of 2000, which have been re-invested in the provision of equipment and infrastructure for the Defence Forces.

A tender competition has been initiated for the acquisition of Light Tactical Armoured Vehicles and tenders are due back next week. The intention is that the LTAV will complement the Mowag Armoured Personnel Carriers (APCs) in the conduct of conventional and Peace Support Operations and will fill a gap that exists between soft-skinned vehicles and the Mowags.

The proposal is to acquire an initial twenty-seven vehicles (17 for overseas mission and 10 at home for training). The tender competition will allow for two additional options, for another twenty-seven vehicles. There is a sum of €6m in this year's Estimates provision as a down payment on an LTAV contract.

The Department has acquired eighty Mowag APCs since 2001 at a combined cost of some €120m. The final stage payment of just over €6m was paid last January. A contract was entered into with Mowag last year for the provision of a stock of strategic spares to cover all areas where the APCs are deployed. The value of the contract is over €8m spread over three years (2007 to 2009).

In recent years, significant work has been carried out on the acquisition of an Integrated Protection and Load Carrying System for individual soldiers. This system includes Body Armour, Helmets, Back Packs (Rucksacks) and Battle Vests. 8000 units of Body Armour, 12,000 Helmets and 12,000 Rucksacks have been delivered in recent years at a combined total cost of €13.5m.

To complete the modern integrated protection and load carrying system, an order has been placed for the supply of 12,000 Battle Vests at a cost of some €2.2m. The Battle Vests are used for the carriage of essential items such as ammunition, personal radio, water and ancillary equipment. The order will be completed shortly.

A further 500 General Purpose Machine Guns have been ordered from FN Herstal in Belgium for delivery late this year. A sum of €3.8m is provided in 2008 to complete the purchase.

With regard to the Air Corps, a total of six utility AW 139 helicopters are being acquired from AgustaWestland, Italy at a cost of €75m, inclusive of VAT. Two AW 139s were delivered in November 2006, two were delivered in 2007 and the final two will be delivered in 2008. The final stage payments for the two helicopters will be made in 2008 at a cost of circa €13.5m.

A contract was signed with EADS, Spain, for a major mid-life upgrade for the Air Corps two CASA maritime patrol aircraft in late 2006 at a cost of €16.456m, inclusive of VAT. The upgrade on the first aircraft was completed in 2007. The upgrade on the second will be carried out this year and a final payment in the region of €5.3m will be made.

The issue of the replacement of the Air Corps Cessna Fleet is under active consideration at present. The question of funding the replacement programme has to be considered in tandem with the overall equipment requirements of the Defence Forces generally and the funding available for this.

On the Naval Service front, a tender competition for the purchase of replacement vessels for the Naval Service commenced in 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 comprising two stages — the first stage a Request for Proposals and the second stage an Invitation to Tender.

The closing date for stage 1 was 26 October 2007. The evaluation of proposals has now been completed. Detailed specification development for the vessels is nearing conclusion. It is expected to issue the invitation to tender for the second stage of the competition for the OPV in August this year. Tender evaluation will take place in October and it is intended to award a contract in late 2008.

In relation to the larger EPV, my Department intends to undertake further analysis of the proposals in relation to the EPV project before the second stage is initiated. Once this has been completed, my Department will review the matter with a view to initiating the second stage of the EPV competition, probably later in the year.

The purchase of the vessels will be subject to Government approval on funding. This matter will be reviewed in detail following the conclusion of the tender competition at which point detailed costings will be available to inform the Government decision. It is expected that the vessels will be delivered on a phased basis between 2010 and 2012.