I am pleased to appear before this committee again in my capacity as Minister for Defence. Last year, our first opportunity to debate the Defence and Army Pensions Estimates under the committee system proved to be a very valuable and worthwhile exercise. The Minister of State at the Department of Defence, Deputy Noel Dempsey, and I will be happy to provide the committee with whatever assistance they may require in their consideration of the 1994 Estimates for Defence and Army Pensions.
I shall begin by reviewing some of the important developments taking place in the Defence Forces which may be to the advantage of the committee.
A little over a year ago, the Government decided to undertake a major initiative to prepare the Defence Forces for the years ahead. As a first step, the roles of the Defence Forces—which had remained unchanged since 1981 — were updated to take account of the realities of the nineties. The stated primary role, defence against external aggression, had begun to look increasingly incongruous in the light of both the changed international environment and the day to day work of the Defence Forces. In June last year, the Minister of State addressed this committee on the review of the roles. The Government approved a revised statement of roles for the Defence Forces in September 1993. The operational roles of the Defence Forces have remained fundamentally unchanged, reflecting the tasks undertaken by the Defence Forces on a day to day basis. However, the contingency role has been redefined so as to reflect more accurately and realistically the priorities and functions of the Defence Forecs, having regard to the current security situation both internally and worldwide.
As a second stage in the review process, the Government requested the Efficiency Audit Group to undertake a fundamental review of the organisation, structures and deployment of the Defence Forces based on a revision of the roles. To conduct this stage of the review, a firm of professional management consultants, Messrs. Price Waterhouse, assisted by a number of international military experts, were engaged under the aegis of the Taoiseach's Department. The consultants commenced work in January and are expected to report to the EAG before the end of next month.
The range of issues to be considered by the consultant is not new. The Gleeson report, published in 1990, identified a number of shortcomings in the organisation of the Defence Forces. In particular, the report highlighted the excessive number of expensively trained military personnel working in administrative and support areas and suggested that there might be scope for the elimination of duplication within the military organisation. There is also need to take a fundamental look at the organisation and structure of the Defence Forces with a view to ensuring that they are focused on operational tasks and that maximum use is made of their most valuable resource — trained personnel. Reform and reorganisation are necessary, not only to provide increased efficiency and effectiveness: they are also a positive development for those who choose a career in the Defence Forces.
While the report of the Efficiency Audit Group is not yet available, it is likely that its conclusions will form the basis for a long term programme of change and development of the Defence Forces. The emphasis of any programme adopted by the Government will be on enhancing the effectiveness of the military organisation to perform the important roles assigned to it by Government. The Defence Forces of the future should be provided with appropriate resources in terms of staff and equipment. Having been given a clear statement of roles, the review process is designed to ensure that the Defence Forces will be provided with the appropriate means to carry them out. This is not a cost cutting exercise. The intention is to obtain optimum benefit from the use of available resources.
Given the important roles of the Defence Forces, the Government has been mindful of the need to ensure their full participation in the review process. To that end, a steering group established by the EAG to oversee the review includes high level military representation. Defence Forces personnel have worked with the consultants in the course of the review. The associations representing military personnel have been afforded the opportunity of making submissions to the EAG and meeting with the consultants to discuss matters of concern to them. In summary, every care has taken to ensure that the Defence Forces have a substantial input into the review process.
While much work remains to be done in terms of reorganisation of the Defence Forces, I would like to remind the committee that a number of important changes have already taken place. The Efficiency Audit Group has completed two reports in the defence area dealing with the civil branches of the Department of Defence and administration in the Defence Forces. Arising from these reports, the Government has approved the implementation of proposals to give greater financial authority to the military authorities; control and responsibility for seven subheads in the procurement area have been assigned to the military authorities with effect from January of this year. The question of delegating additional subheads to the military authorities will be addressed in the light of experience gained in 1994 and in the forthcoming EAG report.
There has been positive action in other areas. Earlier this year I was very pleased to be in a position to announce a recruitment drive for the Permanent Defence Force which marks a first step towards addressing the rising age profile of military personnel which has become a cause for concern. Five hundred personnel are being enlisted — 420 to the Army and Air Corps and 80 to the Naval Service. These recruits are being enlisted for a fixed period, extended from three to five years following discussions with the Permanent Defence Forces Other Ranks Association — PDFORRA. They will receive pay and allowances on the same basis as existing personnel. They will also have the same opportunities to undergo training courses and to serve overseas.
The fixed term contracts will allow greater scope for regular intakes of new recruits and thus contribute to a lowering of the age profile of non-commissioned personnel. The average age of privates in the Permanent Defence Force has risen from 24 in 1981 to over 31 years now. The Defence Forces need a regular injection of "young blood" to maintain their operational effectiveness, and fixed term contracts are a step in the right direction.
Without the past week, Deputies will have seen advertisements in newspapers inviting applications for the 1994 intake of cadets. The exact number to be appointed is being discussed and is openended but I hope there will be a considerable number of cadets at the end of the day. For the first time in the history of our Naval Service, women are eligible to compete on an equal basis for cadetships. This should have been possible years ago, but I am pleased that women are now eligible to compete on an equal basis for cadetships in the Defence Forces.
I am pleased to announce that the distinctive and separate uniform for the Air Corps will be available later this year. All Deputies and Senators will agree that since the foundation of the State effectively the Air Corps has been wearing an Army uniform. My view, supported by the Secretary of the Department and by Defence Forces generally, was that a new departure in this area was required to give the Air Corps a distinctiveness and a separateness in a uniform and presentation context. I saw models of the proposed blue uniform. The people who modelled the uniform were very satisfied with it and the general public will also be satisfied with the appearance of the Air Corps when the uniform is worn.
On Wednesday last, the subject of Irish military participation in United Nations missions was debated in the Dáil as a separate and specific matter, as is required under statute. As I indicated then, the Government remains committed to the principle of military participation in United Nations operations in the cause of international peace. Consistent with the safety of our troops, which is an overriding consideration, this commitment will continue, representing a practical and exemplary manifestation of our support for the highest ideals of the United Nations.
I pay tribute to the Defence Forces who have participated in peacekeeping operations since 1958. They have done so worldwide in a very brave and courageous fashion, and from time to time they were required to lay down their lives in the defence of international peace.
I will now highlight briefly some of the principal features of the Defence Estimate. The 1994 Estimate is for a gross sum of £372.479 million — an incrase of more than £17 million on the 1993 figure. Pay and allowances for the Defence Forces account for £289 million, or approximately 80 per cent of the Estimate. The net sum required for 1994 is £354.229 million. That estimate is based on an average total strength of 12,980 in the Defence Forces, comprising 1,560 officers, 11,300 non-commissioned officers and privates, 55 cadets and 65 members of the Nursing Services. Provision is also made for the training of approximately 9,000 FCA and Slua Muirí personnel.
Non-pay expenditure totalling £70.7 million is detailed in 21 subheads. A brief synopsis of the subheads has been circulated to Members of the committee. Almost £20 million of the non-pay element will be used towards the purchase and maintenance of aircraft and related equipment. Later this year two new purpose built maritime patrol aircraft, CASA CN 235's, will be delivered to the Air Corps. These aircraft, which are 50 per cent funded by the European Union, will be used primarily for fishery protection duties. The introduction of the CASAs and the continuing excellent work being done by our seven Naval Service fishery protection vessels will ensure that our valuable natural resources are adequately protected and we are capable of fulfilling the obligations incumbent on us as a member of the European Union.
I pay tribute to the various elements of the Defence Forces — Army, Air Corps and Naval Service and the Reserve Defence Force — for their work at home and abroad. Irish troops serving overseas have attracted commendation and acclaim for the consistently high standards they have maintained over the years as peacekeepers, often in difficult and hazardous circumstances. Their proud record redounds to the credit of our country and they deserve our congratulations. I know the committee will join with me in paying tribute to them.
The day-to-day operation of seven of the non-pay subheads is now the responsibility of the military authorities. The subheads are subhead I — mechanical transport; subhead N — clothing; subhead O — provisions; subhead T — petrol and oils; subhead U — transportation; part of subhead X — equitation and subhead Y — military educational courses and visits. The total amount involved in these subheads is £17.3 million. In addition, responsibility for allowances amounting to £27.9 million has been delegated to the military authorities.
The army pensions Estimate for the year ending 31 December 1994 is for a gross sum of £55.76 million, the net figure being £52.98 million. This figure represents an increase on last year's outturn of approximately 6 per cent. Details of this Estimate have also been circulated to committee members. Almost 91 per cent of the Estimate will be spent on service pensions and retirement and death gratuities for former Defence Forces personnel and also for pensions and allowances payable to spouses and children of personnel.Approximately 7,850 former members and their dependants are involved.
That concludes my overview of the Estimates. Both the Minister of State, Deputy Dempsey and I will be pleased to assist the members of the Committee in addressing any questions they may have on the Estimates. If the information is not readily available now I will undertake to give them information subsequently.