Dáil Éireann Debate, Tuesday - 21 November 2023
54. Deputy Matt Carthy asked the Tánaiste and Minister for Defence the annual capital investment required to meet Level of Ambition 2 of the Report of the Commission on the Defence Forces; and the amount allocated in each of the years 2021, 2022, 2023, 2024. [50878/23]
View answer59. Deputy Rose Conway-Walsh asked the Tánaiste and Minister for Defence the reason the capital investment in Defence spending in Budget 2024 is far below the target set in document level of Ambition 2; and if he will make a statement on the matter. [50894/23]
View answerI propose to take Questions Nos. 54 and 59 together.
The Government approved a move to Level of Ambition 2 (LOA2), as recommended by the Commission on the Defence Forces in July, 2022. As part of that decision, the Government committed to increasing the funding allocated to defence to €1.5 billion (at January 2022 prices) by 2028, through the annual Estimates process. Delivery of this objective will allow the required transformation and investment in Defence recruitment, equipment and infrastructure that was identified by the Commission. It is worth noting that the Commission Report included an approximation of the likely annual capital costs of LOA2 rather than an outline of annual capital investment targets to be achieved during the transition to that level.
I remain fully committed to delivering on this strategic funding objective as evidenced by the fact that the Defence Vote Group allocation for 2024 has increased by €114 million (10%) since 2022, when the Government approved the Commission Report.
In any given year, the Defence budget allocation is determined within an overarching budgetary framework which encompasses existing NDP multi-annual capital allocations and remains cognisant of the level of resources available, commensurate with defence policy requirements. It is within this context that the annual Estimates discussions have taken place with the Department of Public Expenditure NDP Delivery & Reform, to include full consideration of Defence capital investment priorities for 2024 and beyond.
Budget 2024 provided a capital investment allocation of €176 million to Defence, an allocation which ensured that the capital budget for Defence is maintained at its highest ever level. The principal demand drivers of Defence capital requirements are the ongoing acquisition and renewal of military equipment, along with the development and upgrade of Defence Forces built infrastructure and ICT capacity. The primary return on Defence capital investment is the maintenance and development of necessary military capabilities, which provide the means by which the Defence Forces contribute to national and international peace and security and fulfil all other roles assigned by Government.
I should also note that Defence will be seeking further capital funding for 2024 as part of the allocation of €0.25 billion earmarked for 2024 to be funded from exchequer windfall receipts, as set out in the Summer Economic Statement and, beyond that, will ensure that further progress is made through strong positive engagement with DPENDPDR on an anticipated review of Sectoral NDP multi-annual capital allocations for the medium term, set to commence in 2024.
The capital allocation provided to Defence over the 2021 to 2024 timeframe is as follows –
- 2021 - €131 million;
- 2022 - €141 million;
- 2023 - €176 million, and
- 2024 - €176 million.
This level of capital funding demonstrates the Government’s strong commitment to support the transformation of the Defence Forces into a modern, agile military force, capable of responding to increasingly complex security threats.
