Dáil Éireann debate -
Tuesday, 7 Dec 1999

Vol. 512 No. 3

Written Answers - Defence Forces Equipment.

Frances Fitzgerald

Question:

123 Ms Fitzgerald asked the Minister for Defence the situation in relation to armoured personnel carriers for the Defence Forces; the way in which the costs will be met; and if he will make a statement on the matter. [26323/99]

Minister for Defence (Mr. M. Smith)

I am pleased to announce that a contract was entered into last week between my Department and Mowag of Switzerland for the supply to the Defence Forces of 40 armoured personnel carriers, initial spares, special tools and training courses. The signing of the contract on 30 November 1999 was the culmination of a lengthy competitive process to select the vehicle most suited to the needs of the Defence Forces.

The total cost of the contract, which will be spread over five years, is in the region of £40 million, including VAT. The payment schedule is as follows:

Year	Amount
1999	IR£8.0m.
2000	IR£8.0m.
2001	IR£5.0m.
2002	IR£8.0m.
2003	IR£3.9m.
Total	IR£32.9m.

The balance of the total cost of the contract is made up of VAT payments.

Funding for this purchase programme is available as a result of the reduction in the strength of the permanent Defence Force. There will be net pay savings of the order of £15 million a year and it has been agreed that from 1999 onwards 50% of the pay savings will be made available to provide additional funding for equipment and infrastructural programmes for the Defence Forces.

The first two vehicles will be produced towards the end of next year and will undergo rigorous inspection and acceptance testing. The full production run will commence in June 2001 and I am delighted to say that all of the vehicles will have been delivered by January 2002 – almost two years ahead of previous expectations.

The purchase of modern APCs forms an integral part of the ongoing re-equipment programme and is regarded by the Defence Forces as the most urgent equipment requirement to enable them carry out all of the roles assigned by Government.