Dáil Éireann debate -
Thursday, 17 Feb 2000

Vol. 514 No. 5

Written Answers. - Defence Forces Vehicles.

Ivan Yates

Question:

95 Mr. Yates asked the Minister for Defence the status of the contract to supply armoured personnel carriers; when the first armoured personnel carriers will be delivered; the cost to date; the way in which these will be funded; and if he will make a statement on the matter. [4607/00]

Minister for Defence (Mr. M. Smith)

Last November a contract was entered into 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 40 vehicles, known as Piranha 111H 8 x 8, will be manufactured as 34 troop carrier variants, four command variants, one recovery variant and one ambulance variant.

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

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. The reduction in manpower was mainly achieved by means of a voluntary early retirement scheme which was availed of by over 1,500 personnel in the period 1996 to 1998, at a cost of over £65 million in retirement benefits. From 1999 onwards, payroll savings of approximately £15 million have begun to accrue and 50% of these savings have been made available for investment in additional new equipment. In that regard a total of £15.2 million has been provided in the years 1999 and 2000 to assist the funding of the purchase of armoured personnel carriers.

The first two vehicles will be produced towards the end of this 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.