Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 116: To ask the Minister for Defence if agreement on funding and approval has been received to award a contract for the purchase of two offshore patrol vessels for the Naval Service; when a decision will be made on this matter; and if he will make a statement on the matter. [3623/09]

Liz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 121: To ask the Minister for Defence the expected timetable for the acquisition of three new vessels for the Naval Service; and if he will make a statement on the matter. [3508/09]

Willie O'Dea (Limerick East, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 116 and 121 together.

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 eight-ship flotilla and committed to a modernisation and replacement strategy to maximise the operational capacity of those eight 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 coming 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 within my Department, a vessel replacement strategy for the Naval Service was put in place to cover the period up to 2012. The strategy, combined with a continuous process of refurbishment, will ensure that the operational capability of the Naval Service is maintained at a satisfactory level.

Following Government approval in July 2007, notice of a tender 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 (OPV's) with an option of a third and one Extended Patrol Vessel (EPV) 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.

Following Stage 1 of the tender competition for the OPVs, Stage 2 of the competition commenced on the 12th September 2008 with the issue of an Invitation to Tender to the shipbuilders who had been short-listed as part of the Stage 1 process. This document included a very detailed ship specification. The detailed tender responses were returned to the Department by the shipbuilders on the 11 November last. Tender evaluation commenced immediately and is still ongoing. It is expected to continue for a number of weeks. Subject to Government approval on funding, it is intended to award a contract for the OPVs to the preferred bidder during the first half of this year.

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 evaluation of all tenders has been completed.

Subject to Government approval on funding, it is expected that the new vessels will be delivered for acceptance by the Naval Service on a phased basis between 2011 and 2013. It is expected that the delivery date for the first OPV will be approximately 30 months after the date of signing of the contract whilst the specified delivery date for the second OPV will be approximately 37 months after the date of signing of the contract. If the Department exercises its option of purchasing a third OPV, a mutually agreeable delivery date shall be negotiated. These timelines are indicative and do not prejudice the right of the Department to adjust or alter the delivery schedule at the contract negotiation stage.

In the current difficult economic environment, it is important that we look to the efficiencies which all parts of the public sector can make so as to continue to deliver high quality public services within a more constrained financial resource envelope. However, it is also important that we continue to invest in public services so as we can maintain service levels into the future. Within the resources available to us, to maintain capacity, we need to continue the process of modernisation and reinvestment in the Defence Forces generally, into the future. The Naval Service Ships Programme is part of this process.

The acquisition of these modern new vessels will ensure that the Naval Service will be fully equipped to carry out its day to day roles in enforcing the State's sovereign rights over our waters and our fisheries and meeting Ireland's obligations in the area of maritime safety and security and fisheries protection.

In relation to the larger EPV, the Department intends to undertake further analysis of the proposals received following Stage 1 before the second stage is initiated. As with the OPVs, any decision to award a contract for the purchase of an EPV must be approved by the Government.