At this stage it is expected that the outturn of expenditure on the different subheads of the Defence Vote will show gross savings of €43.5 million, excess of €3.5 million and surplus appropriations-in-aid of €1 million, resulting in overall net savings. The main areas in which savings will be achieved are: compensation, €14.5 million; Air Corps, €14 million; and pay and allowances, €13 million.
The savings on compensation are due to the fact that the number of settlements of loss of hearing cases this year is less than had been anticipated. In that regard, the rate at which such cases are finalised is governed by variable factors which make it difficult to forecast the number of settlements.
The savings under the Air Corps subhead are mainly due to the decision announced by the Minister in July not to proceed with the tender competition for the purchase of medium lift helicopters.
The savings on pay and allowances are due to the rate of recruitment being less than anticipated and a reduction in the number of PDF personnel serving overseas consequent on the withdrawal from UNIFIL in 2001.
While the decision regarding medium lift helicopters was difficult and painful, the Minister is fully satisfied that the other ongoing programmes of investment in equipment and infrastructure, which are unprecedented in the history of the Defence Forces, will be maintained this year and in the years ahead.