Chairman, Deputies, I am pleased to be appearing before this committee for the first time in my capacity as Minister for Defence. It is important to have an opportunity to debate the Defence and Army Pensions Estimates within the committee system. We have dealt with the Estimates in this manner over the last three years. It gives us an excellent opportunity to look in some depth at the roles of the Defence Forces and the time necessary to appreciate what is being achieved and the good value we are getting for the moneys expended under the two Defence Votes.
It is timely that we look at these Estimates now. We are at a point which marks a watershed in the development of the structure and organisation of the Defence Forces. The first phase of the implementation plan for reform of the organisation is under way. This reform is based on a set of roles which were laid down by the Government in 1993. These roles are as follows: to defend the State against armed aggression, this being a contingency, preparations for its implementation will depend on ongoing assessment of threats; to aid the civil power, meaning in practice to assist when requested, the Garda Síochána who have primary responsibility for law and order, including the protection of internal security of the State; to participate in United Nations missions in the cause of international peace; to provide a fishery protection service in accordance with the State's obligations as a member of the European Union and to carry out such other duties as may be assigned to them from time to time, for example, search and rescue, air ambulance service, ministerial air transport service, assistance on the occasion of natural or other disasters, assistance in connection with the maintenance of essential services and dealing with oil pollution at sea.
Up to the point where the roles were redefined the divergence between the stated primary role and the actual work of the Defence Forces was obvious. The lack of clarity over their role had been unfair to the Defence Forces and it hindered management planning to the detriment of overall efficiency. Now the redefinition of roles to reflect modern day conditions and the reform of the structure and organisation will enhance the effectiveness of the Army, Air Corps and Naval Service.
There is widespread agreement on the need to modernise the structure and organisation of the Defence Forces. Its basic underlying framework has remained unchanged for decades. The review of the Defence Forces, undertaken by the Efficiency Audit Group, on behalf of the Government provides an opportunity to address many issues in the Army, Naval Service and Air Corps which require attention.
There were a number of significant factors which led to the review of the Defence Forces being carried out in the manner which is being followed at present. Aside from the revision of roles arising from the changed international environment, to which I have referred already, there was the very evident problem with the rising age profile which would lead to long term difficulties if not addressed in a co-ordinated manner.
The report of the Commission on Remuneration and Conditions of Service in the Defence Forces, that is, the Gleeson report, also highlighted a number of shortcomings in the organisation and structure with excessive numbers employed in non-operational tasks. Similar structural problems were again highlighted by a subsequent review of military administration by the EAG.
It was against a background of general acceptance, not least by the military authorities themselves that reform of the organisation was very necessary, that it was decided to ask the EAG to conduct this root and branch examination. The external consultants, Price Waterhouse, who were engaged by the EAG to assist them in their work, had the required military expertise available to them and they worked in close consultation with our own military authorities in drawing up the plan which, in turn, led to the publication by the Government in February this year of the report of the implementation group. The implementation group's report sets out the measures to be taken during the first three years of the reform process. I expect the entire process to take about ten years to complete.
The plan is essentially strategic in nature and sets out the parameters and objectives within which the reform of the Defence Forces will take place. It does not attempt to go into the fine detail. This will be worked out at a later stage when all current relevant factors can be taken into account.
On the age profile problem a two-pronged approach is being adopted in an effort to make the necessary overall adjustment. A voluntary early retirement scheme is being introduced alongside a programme of planned recruitment of young personnel over the period of the implementation plan. At this point I want to stress, lest there be any misunderstanding, that there will be no compulsory redundancy or forced retirements, under any guise, in any section of the Defence Forces. To lay another fear to rest, let it be abundantly clear also that the financial benefits which will accrue to members of the Permanent Defence Force who avail of the voluntary early retirement scheme are in addition to the already very favourable superannuation arrangements which have been in place for many years.
A booklet giving the details of the scheme was launched on 22 April and applications were invited from 29 April, with the closing date set at not later than 7 June. The success of the scheme is borne out by the fact that the response has, even at this early stage, exceeded all expectations. To date, almost 1,000 applications have been received. These applications are representative of practically all ranks in the Permanent Defence Force.
With regard to recruitment in the context of addressing the age profile problem, the idea of introducing young personnel into the Defence Forces is vital in order to maintain the lifeblood of the organisation. I intend making an announcement on general service recruitment later in the year. As the committee will appreciate, it is appropriate and prudent that recruitment measures should be harmonised and synchronised with the voluntary early retirement scheme and the reform plan in general. Already this year the competition for the award of apprenticeships in the Army and Air Corps is under way. In addition, the advertisements for the award of cadetships in the Permanent Defence Force were placed in the national press last Sunday week and a tremendous response is envisaged, as usual.
There are just a few specific issues that appear to be still causing undue anxiety with which I would like to deal before I leave the subject of the EAG process. The first is the question of barrack closures. This subject still surfaces regularly despite the fact that I have pointed out on more than one occasion that there is absolutely no reference in the Government decision on the EAG to barrack closures. I made this point only a fortnight ago in my statement to the Seanad on the reorganisation of the Defence Forces. There will be a study of accommodation requirements for the Defence Forces in the course of the three year plan. In the conduct of this study full regard will be had to the socio-economic importance of local barracks.
There was some considerable speculation about the position of the Army bands. I have already made it quite clear that there will be no reduction in the number of Army bands. For many years the Army School of Music has made an invaluable contribution to the life of the Defence Forces. Army bands have an important role on many State ceremonial occasions. They also make a valuable contribution to the life of the community. They are in constant demand to give public performances at major events throughout the country. For many years Army musicians have maintained an admirable standard of excellence. The presence of an Army band has contributed a unique lustre to important national events. They have an important role in maintaining the esprit de corps of the Defence Forces.
I would like to make special mention here of the Equitation School in the context of the EAG process. There is no question, contrary to what has been suggested in some quarters in the past, that the Equitation School will be closed or downgraded. In the course of implementing the EAG report, the focus will be on ensuring that the school has an adequate supply of first class horses and riders. The school has a long and distinguished record in showjumping at home and overseas. I am addressing the question of how best to maintain this impressive record and to ensure that the school continues to produce top class riders and horses to represent Ireland in the international showjumping arena.
There are a number of areas which require further study during the course of the first phase of the implementation plan. Some of these, such as the Reserve Defence Force, civilianisation and accommodation requirements, will be dealt with on an in-house basis while two major studies, on the Air Corps and the Naval Service, will be the subject of a report by external consultants. The Efficiency Audit Group is currently examining tenders which have been received from a number of companies offering to carry out the required studies. I expect the EAG will be in a position to commence work on these studies very shortly.
The fact that the Naval Service and the Air Corps are to be the subject of in-depth studies reflects the importance which is attached to the functions which they carry out. The main day to day role of the Naval Service is to provide a fishery protection service in accordance with the State's obligations as a member of the European Union. The Naval Service's efforts in this regard are complemented by assistance provided by the Air Corps.
Over the past 20 years a growing appreciation of the value of our marine resources has coincided with a period of growth and development for the Naval Service and Air Corps. In particular, the extension of our exclusive fishery limit to 200 miles offshore, undertaken in 1977, marked a turning point in our appreciation of the importance of the sea as an economic asset.
Under the new EU five year programme on fishery enforcement measures an element for operational costs has been included for the first time. With regard to the 1996 element of the programme agreement has been reached recently with the EU Commission on our submission for assistance. The measures which have been agreed in the context of the package, in the main, relate to the implementation of the new entry/exit requirements which came into force on 1 January last. The total amount of expenditure under the programme for 1996 for both the Department of Defence and the Department of the Marine is £5.8 million, of which £4.3 million will be met by the EU. The total amount of expenditure under the programme in relation to Defence will be of the order of £3.45 million, of which about £1.04 million is for operational costs.
The proposals for expenditure in 1997 under the package have to be submitted to Brussels by the end of June of this year. These proposals will include expenditure as a down payment for the acquisition of a new ship for the Naval Service. Experience on the lead-in time for the acquisition of a new ship would suggest that it will probably take about two years to complete the acquisition process and commission a vessel.
We now have a fleet of seven modern ships available to us to protect our 130,000 square miles of exclusive fisheries. Shipboard operations from the L.E. Eithne by the Air Corps are now a routine feature of maritime surveillance work. Vessels at sea are backed up by advanced communications and information technology systems. The Air Corps Casa maritime patrol aircraft are an invaluable addition to the whole effort.
I would like to pay a personal tribute to the work of the Naval Service. From my experience of my Marine portfolio I am well aware of the task that is faced daily in enforcing our fisheries laws. The work goes on 24 hours a day in all weather conditions. The role the service plays is at times both difficult and dangerous but its professionalism is second to none. Because the duties of the Naval Service are performed at sea, out of sight of the public, it may not have always received the recognition it deserved. However, its continuing success in fishery protection and search and rescue and its important role in dealing with oil pollution threats have resulted in a much wider appreciation of the outstanding dedication of the personnel.
While the Air Corps is heavily involved in the fishery protection role by virtue of its operation of the Dauphin Naval Variant helicopter and the Casa maritime patrol aircraft it also carries out many other diverse tasks. The Air Corps performs vitally important functions in search and rescue, air ambulance, security operations and from time to time it assists in non-military operations such as the relief of distress in emergencies arising from natural disasters. Since the beginning of this year the Air Corps has been providing an enhanced night helicopter coverage on the east coast. It is working towards providing a dedicated 24 hour search and rescue capability by the end of the summer with a night flying helicopter located in Baldonnel.
Both the Naval Service and the Air Corps have in recent times been effective in aiding the civil power in combating illegal importation of drugs. In this task the Defence Forces work in close co-operation with the Garda Síochána and the Revenue Commissioners in attempting to stamp out this insidious crime.
I have recently returned from a visit to the Irish Battalion serving with UNIFIL in southern Lebanon. The men and women of the 78th Battalion carried out heroic work in difficult circumstances for them throughout the period of "Operation Grapes of Wrath", as it was known. I saw at first hand how our troops are contributing to the work of UNIFIL in trying to fulfil the mission there and also in delivering humanitarian aid to those in need. They are once again displaying the courage and professionalism which we know they possess. I wish the men and women of the 79th Battalion, who have just taken over from their colleagues, a safe and successful tour of duty and I am sure all Members of this committee join with me in this wish. As I have said on many occasions in the recent past, the safety and well being of our troops will always be the first and foremost concern of the Government.
I pay a special tribute to the work of the Defence Forces in their peacekeeping role. Wherever they serve, the patience, diplomacy, discipline and military professionalism of Irish soldiers have won international acclaim. We are completely dependent for our continuing contribution to international peacekeeping on the willingness of our military personnel to volunteer to serve as peacekeepers. I place on record the appreciation of the Government for the courage and dedication shown by the men and women of the Defence Forces in the cause of peace.
The end of the Cold War has transformed the international environment and greatly enhanced the scope for intervention by the United Nations and as a consequence the demand for peacekeeping missions has greatly increased. It says something about the character of the Army, Naval Service and Air Corps that whenever new missions arise the number of volunteers inevitably exceeds the number of available places. The contribution made to peacekeeping missions has enhanced the prestige of Ireland internationally and has been a source of pride to all Irish people.
Lest there be any concern in the matter I want to make it clear that the reformed Defence Forces organisation will be in a position to meet all of its commitments in the peacekeeping context. This has been laid down as a guiding principle for those involved in the reorganisation process.
Before I deal with the detail of the 1996 Estimates I will make final brief comments in relation to the EAG process. This review should not be seen as a cost cutting exercise — it is far from that. These Estimates contain an additional £13 million to front-load the reforms. In deciding the future of the Defence Forces the Government is fully conscious that any decisions reached will have farreaching consequences. The Defence Forces are called upon to perform a variety of important roles, many of which I have touched upon already. In order to ensure that these roles continue to be carried out effectively, it is necessary to examine critically, from time to time, the structure and organisation of the Defence Forces and the Efficiency Audit Group review is part of a process aimed at doing just that. The objective of such an examination must be to enhance efficiency and effectiveness and ensure that in the years ahead the public continues to be served by professional, disciplined, well trained, appropriately organised and effective personnel.
The key to the success of this plan is that the military authorities themselves want to take possession of this process and make the necessary changes to their structure and organisation. They recognise the importance of having control of their own reform process rather than being presented with an imposed solution. Their overall objective, as adverted to in previous studies, is to make more personnel available for operational duties.
Finally, I believe consultation is an important element in this process. There are many issues on which the associations may negotiate as a matter of right, in accordance with the scope of representation. These are the rules which have been laid down for the conduct of representative association business and to which the associations themselves agreed at the setting up of the organisations by legislation in 1990. Within these rules come the various issues which would generally be described as pay and conditions of service.
There are other issues relating to the EAG process which clearly do not fall within the scope of representation but on which I feel the representative associations should be consulted. I have done this extensively because it is my firm belief that the best way to effect the reforms which the Defence Forces need is by securing the commitment and co-operation of the personnel. I have met representatives of PDFORRA on a total of five occasions since taking office and I have also met RACO and REDFRA. In addition there have been frequent meetings at official level and another such meeting is arranged for Thursday. As a result of this comprehensive process of consultation the original recommendations for reform in the Price Waterhouse report were extensively reviewed. The proposals eventually brought forward by Government were heavily modified to take account of the views already expressed by the associations.
The Defence Estimate for the year 1996 is for a gross sum of £393 million, an increase of more than £9 million on the 1995 figure. The bulk of the Estimate —£308 million or approximately 80 per cent — provides for pay and allowances. The high proportion of the Defence Vote expended on this item is one issue which will be addressed over the entire period of the reorganisation plan. The objective is to achieve a situation where a greater proportion of the Defence Vote can be allocated to discretionary expenditure. One way this will be realised will be through savings in the payroll area on foot of the reduction in overall strength to 11,500 by the end of the first phase of the plan. I am aiming towards a more favourable ratio of 70 per cent pay to 30 per cent non-pay in the long term. This will enable us to make a more significant investment in new accommodation and equipment for the Defence Forces.
This year's Estimate for pay represents an increase of £11 million on last year's outturn. The Estimate includes provision for an average other ranks strength of 11,000 and an officer strength of 1,525. Provision is also made for the training of approximately 9,000 FCA and Slua Muirí personnel.
Non-pay expenditure totalling approximately £85 million is detailed in 30 subheads. A synopsis of the subheads has been circulated to Members of the committee. About £14 million of the non-pay element will be used for building and maintenance works in barracks around the country. The majority of this will be spent on major building and refurbishment works in Cathal Brugha Barracks and McKee Barracks in Dublin arising from the closure of Collins Barracks.
Another major programme of investment is ongoing in the acquisition of state of the art VHF communications equipment. Over £3 million will be spent on the acquisition of the latest secure frequency-hopping VHF radio communications equipment which will enhance the operational capability of the Defence Forces.
I would like to draw the attention of Members to the provision in the Estimates of £2.45 million for Civil Defence. The Civil Defence organisation runs on the voluntary and unpaid service of thousands of volunteers throughout Ireland. I will not dwell on the subject as my colleague, the Minister of State, who has special responsibility for Civil Defence, may have an opportunity to address you later on the topic and will be pleased to deal with any questions you may have.
The last item in the Defence Estimate is Appropriations-in-Aid. This is the estimate of the revenue which will be received by the Department in the course of 1996. Income arises from a number of sources, including the sale of surplus property, assistance from the EU in respect of the costs of fishery protection and payments from the banks for cash escorts. Provision is also made for the reimbursement from the United Nations for the costs of Irish troops serving with United Nations missions. Last year approximately £4.5 million was received form the United Nations. Almost £13 million remains outstanding and no effort is spared in attempting to have the appropriate payments made to us. The difficulty, as always, lies with the non-payment of dues to the United Nations by the major powers although they have in recent years made some inroads into those arrears.
I would now like to turn to the Army Pensions Estimate for the year ending 31 December 1996. The Estimate is for a gross sum of £73 million representing an increase of £18 million or 33 per cent on the 1995 outturn. Details regarding this Estimate have also been circulated to Members of the committee.
The bulk of the expenditure from the Estimate falls under the subhead E1 and covers pensions and gratuities granted under the Defence Forces pensions schemes to former members of the Defence Forces and their dependants. These items account for 86 per cent of the total Estimate with approximately 6,600 pensioners. The significant increase this year in this subhead is accounted for by the fact that payments under the voluntary early retirement scheme to which I referred earlier in the context of the EAG review of the Defence Forces, will be made under this heading.
That concludes my overview of the Estimates and I would like to thank you for your attention. I will be pleased to assist Members of the committee in addressing any questions they may have on the Estimates.
