I thank the committee for the opportunity to discuss the 2022 appropriation account for Vote 35 and 36 along with the chapter 12 report on stock management in the Defence Forces and Reserve Defence Force, RDF, matters. I hope my brief opening statement will provide some context to members on the main issues impacting on the Department of Defence in 2022.
For 2022, expenditure on the defence Vote, comprising both the Army pensions and defence Votes, was €1.1 billion. The high-level goal of both Votes is to provide for the military defence of the State, contribute to national and international peace and security, and fulfil all other roles assigned by Government.
The high-level goal of both Votes is "To provide for the military defence of the State, contribute to national and international peace and security and fulfil all other roles assigned by Government."
Turning first to the Defence Vote, overall gross expenditure on defence in 2022 amounted to €836 million, of which €516 million related to the pay and allowance costs of 8,003 Permanent Defence Force, PDF, personnel, 414 civilian employees attached to units of the Defence Forces and 381 civil servants working in the Department of Defence. Overall non-pay expenditure of €321 million encompassed both capability development and operational aspects and has current and capital elements. Non-pay current expenditure of €177 million provided mainly for essential and ongoing Defence Forces standing and operational costs on utilities, fuel, catering, maintenance, information technology and training. Capital expenditure of €144 million provided for ongoing defence equipment purchasing and renewal and the upgrading and refurbishment of military barracks and facilities across the country.
In terms of operational outputs, throughout 2022 the Defence Forces continued to provide essential support for An Garda Síochána, when requested, across various roles, such as explosive ordnance disposal call-outs, Garda air support missions and Naval Service diving operations. In addition, as part of their aid to the civil authority role, the Defence Forces provided ongoing support to local authorities and the Health Service Executive in their emergency response efforts, which was a task that assumed even greater importance in 2022 owing to pandemic exigencies.
As part of its overseas role, a total of 1,674 PDF personnel served overseas in 2022, with 538 personnel deployed overseas to 11 missions in 12 countries. This level of overseas deployment reflects Ireland’s ongoing commitment to international peace and security. These deployments are often undertaken in volatile security environments. Having been in Lebanon at the weekend with the Tánaiste, I can attest that the current environment there remains very challenging. This visit to Lebanon was to visit the troops who are currently on rotation there and to hold political meetings to stress the need to bring those responsible for the killing of the late Private Seán Rooney to justice. I again express my deepest sympathy to the family, friends and colleagues of the late Private Rooney who tragically lost his life while serving with the 121st Infantry Battalion in Lebanon in December 2022. I take this opportunity to acknowledge his colleagues who were injured, including Trooper Shane Kearney. I understand that, thankfully, Trooper Kearney is recovering well.
Civil Defence is also funded from the Defence Vote. Its hugely important community role, especially during the pandemic, was recognised with the presentation of specially commissioned Covid-19 medals to more than 1,500 Civil Defence volunteers at a ceremony in Croke Park in November 2022. A grant of €975,000 was provided from the Defence Vote to the Irish Red Cross Society in 2022.
The Reserve Defence Force, RDF, comprises of the Army Reserve, the Naval Service Reserve and the First Line Reserve. At the end of 2022, total RDF strength was 1,798 personnel and expenditure was €1.92 million. RDF volunteers come from all walks of life and the added value they provide to Ireland’s defence capabilities has been acknowledged extensively in the 2019 defence White Paper upgrade and more recently in the commission report. It is also fair to acknowledge that challenges exist. As outlined in the detail of the 2023 defence strategic framework document, however, an RDF regeneration plan is now under way, which, when implemented, will revitalise the RDF and augment PDF capabilities even further.
The Army Pensions Vote is demand-led and non-discretionary in nature. Expenditure of €278 million in 2022 provided for the payment of some 13,100 pensioners, including dependants. This is all managed from our Galway office. A Supplementary Estimate of €9.3 million was provided in 2022, largely to cover the costs arising from increases under the extension of the Building Momentum pay agreement. Expenditure on Army pensions has been increasing in recent years due to an increasing number of pensions, rising rates of pension and demographic factors.
The year 2022 was one in which the nation emerged from the worst stages of the global Covid-19 pandemic. In 2022, the Report of the Commission on the Defence Forces was published with the Government approving a move to level of ambition 2, as set out in the commission report, with defence funding to be increased to €1.5 billion by 2028, at 2022 prices. This milestone development was a major achievement that initiated a period of significant transformation, which continues today. Other policy achievements included the establishment of the judge-led independent review group and the publication of the Department’s organisational capability review. The Defence Women’s Network was officially launched in 2022. It continues to thrive. The year 2022 also saw the beginning of the war in Ukraine, which has and continues to impact on our lives in many different ways, creating social, political and economic pressures in Ireland and across Europe.
I will turn now to the chapter 12 report on stock management in the Defence Forces. The Defence Forces maintain a substantial quantity and variety of stock valued at €255 million. This significant amount of stock is managed via a network of almost 400 stores accounts of varying size across multiple military locations throughout the country and abroad and is reported on by me annually through the appropriation accounts for the Defence Vote. It is important to state that the Department has strong governance structures in place to manage and maintain these stores. We are very conscious of our responsibility to continuously examine these systems and implement improvements, as necessary. I, therefore, welcome this report from the Comptroller and Auditor General and accept all the recommendations that have been made. I have put in place a working group, which has developed a work plan and which will oversee the implementation of the recommendations. Significant work on the recommendations has already been undertaken and implementation remains broadly on target.
As already stated, defence is going through a period of significant transformation, which is highly resource intensive. However, notwithstanding this and cognisant that defence, owing to its unique role, necessarily maintains significant stock volumes, effective stock management has always been, and will continue to be, an organisational priority. In that regard, the key departmental and Defence Forces stakeholders involved are wholly committed to ensuring that all the remaining report recommendations are fully implemented in the shortest timeframe possible.
In closing, I would like to thank the members of my management team, management group and all staff in my Department in our multiple locations for their commitment to public service and outstanding work ethic to deliver our objectives. I also extend thanks to the Chief of Staff and his teams in the Defence Forces for their support. I welcome any questions members may have.