Vol. 482 No. 4
67 Mr. Broughan asked the Minister for Defence his views on the fact that the restructuring of the Defence Forces is actually being exploited to cut the wage bill of his Department; and if he will make a statement on the matter. [18218/97]
I cannot agree with the Deputy's contention. Indeed the restructuring of the Defence Forces was undertaken under the previous Government. The cost of the voluntary early retirement scheme for members of the Defence Forces in 1996, 1997 and 1998, means that the first phase of the reorganisation process involves additional expenditure through the "front loading" of the cost of the scheme. This expenditure is firm evidence of the Government's commitment to the success of the reform process.
In its review of the Defence Forces, Price Waterhouse Management Consultants identified the ratio of pay and non-pay Defence expenditure as one of the problems to be addressed as part of the reform and reorganisation of the Defence Forces and suggested that an appropriate ratio of pay to non-pay expenditure for the Defence Forces should be 70:30, rather than 80:20. Accordingly, one of the objectives of the Defence Forces Review Implementation Plan is to achieve an improved ratio of the pay and non-pay expenditure.
During the first phase of the plan, the total overall strength of the Permanent Defence Force will fall by approximately 1,300 personnel. This will reduce the total Defence Forces payroll and it has been agreed with the Minister for Finance that a substantial amount of these savings will be available for investment in the Defence Forces infrastructure and equipment from 1999 onwards.
