The depth and gravity of the current economic difficulties means that all areas of the public sector must deliver greater efficiencies and operate within a reduced resource envelope. All elements of Defence expenditure have been critically reviewed in order to deliver the required savings. Some of the measures to reduce costs in the past three years have included reductions in the number of military and civilian personnel, the further rationalisation and consolidation of the Defence property portfolio and reductions in paid training for members of the Reserve.
Equipment procurement has been curtailed in line with priority operational requirements and the Defence Organisation is fully participating in central initiatives to deliver further efficiencies such as procurement reform and shared services initiatives.
Arising from the Comprehensive Review of Expenditure in 2011, the Government decided to stabilise the strength of the Permanent Defence Force at 9,500 personnel. A major reorganisation of the Permanent Defence Force is ongoing and this will ensure that within the reduced strength, the operational effectiveness of the Permanent Defence Force is maintained. This is being achieved through the rationalising of headquarters, administrative and support functions and re-balancing force elements in favour of “front line” operational Units.
The Defence Organisation is a leader in public sector reform and has acquired experience and a proven track record for successful reform and ongoing modernisation. The required savings of recent years, in both pay and non-pay, have necessitated a flexible and adaptive approach from the Defence Organisation. A key focus has been the prioritisation and maintenance of Permanent Defence Force operational capacity in order to ensure that the Permanent Defence Force retain the capacity to fulfil all roles assigned.
In total, these measures have facilitated a reduction in the Gross Provision for the Defence Vote (36) from €756m in 2010 to €727m in 2011 and €688m in 2012.
I am satisfied that the Permanent Defence Force will remain a well trained and well equipped military organisation which is capable of meeting the roles laid down by Government both at home and abroad.
