, Limerick West): I move:
That a supplementary sum not exceeding £3,700,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1988, for the salaries and expenses of the Office of the Minister for Defence, including certain services administered by that Office; for the pay and expenses of the Defence Forces; and for the payment of certain grants-in-aid.
The Estimate for the Financial year ending 31 December 1988, which was passed by the Dáil in May last, was for a net sum of £252,144,000. The Supplementary Estimate for Defence which I am now introducing is for an additional sum of £3,700,000. The Supplementary Estimate provides for additional expenditure mainly on new naval vessels and fishery protection communications facilities and also on transport, defensive equipment, medical equipment and building work. The gross extra expenditure requirement is £16,820,000. This is partially off-set by savings and increased Appropriations-in-Aid amounting to £13,120,000, thus reducing the net supplementary requirement to £3,700,000.
The main item of additional expenditure is £13,800,000 under Subhead P in respect of the acquisition of two Peacock class patrol vessels for the Naval Service. The additional expenditure also caters for the installation of a computerised information system for use in fishery protection activities.
The new vessels, which came on the market recently, have been acquired from the British Ministery of Defence and will be re-named L.E. Orla and L.E. Ciara. They were taken over by personnel of the Naval Service on 27 October 1988. These vessels are relatively new and are in very good condition. They are replacements for the minesweepers which were taken out of service in 1987 because they had become unseaworthy. As in the case of the minesweepers, the role of the new vessels will be of a fishery protection nature. The vessels have an effective operational range of 3,000 nautical miles and have a maximum speed of 26 knots, which is considerably faster than the speed of our existing patrol vessels.
In conjunction with the acquisition of the new craft. I have made arrangements for an intake of 100 recruits to off-set wastage and to enable the Naval Service to meet the extra staffing requirements arising from the purchase of these vessels.
An additional sum of £1 million is included under Subhead P for the provision of a modern communications and information system for the Naval Service. The facilities are being provided in connection with the fishery protection activities of the Naval Service. They comprise communications, radar and data-processing equipment.
The installation of a satellite communication link between the naval base and each patrol vessel will considerably improve communication facilities and provide a high quality voice and telex link with vessels irrespective of weather, position, or time of day. Four of the patrol vessels are being refitted as necessary with more powerful radars, thereby increasing their detection range. A modern data-processing system is being installed at the naval base which will have data links with the patrol vessels and the Air Corps at Casement Aerodrome, Baldonnell. In addition four of the patrol vessels are being provided with all-weather boarding boats.
This programme of improved fishery surveillance facilities, which will significantly enhance the efficiency of the fishery protection service provided by the Naval Service, has been approved by the European Commission. The total cost involved will be over £2 million, of which about £1 million is due for payment this year. It is expected that part of the cost involved will be recouped from the European Commission.
Provision for an additional sum of £1,500,000 for the purchase of vehicles is included under Subhead J. Some additional expenditure arises under Subhead H in respect of defensive equipment which is now expected to be available before the end of this financial year at a cost of £840,000. Similarly under Subhead I, an earlier than originally planned for expenditure of approximately £180,000 on X-ray equipment for St. Bricin's military hospital and other medical supplies is provided for.
The year 1988 has been a good year for making progress on building works — probably because of the favourable weather conditions. As a result, expenditure on the construction and maintenance of buildings has been heavier than expected in the year to date. Some essential building works were undertaken and completed ahead of time. It is anticipated that an additional sum of £500,000 will be required under Subhead S by the end of the financial year.
The total increase of £16,820,000 is partially off-set by savings amounting to £9,220,000 and increased Appropriations-in-Aid amounting to £3,900,000. Apart from the savings on the pay subheads, the main savings arise on Subhead O2 dealing with aircraft, where a saving of £3,300,000 is anticipated due to aircraft maintenance requirements being less than expected.
The increase of £3,900,000 under Appropriations-in-Aid consists of additional receipts from the United Nations in respect of arrears due. This arises mainly because of a change of heart by one of the major powers in regard to paying its arrears of contribution to the UN fund for the United Nations interim force in Lebanon.
Now I turn to the Supplementary Estimate for Army Pensions for the year ending 31 December 1988. The Estimate for Army Pensions for the current year was also passed by this House last May and was for a net sum of £40,385,000. The Supplementary Estimate is for an additional sum of £2,350,000 net and is required to enable my Department to make payment of the December 1988 issue of pensions and allowances under the Army Pensions Acts and the Defence Forces pensions schemes in the middle of the month instead of at the end of the month.
The proposed early payment will facilitate the introduction during 1989 of a new system of payment of pensions and allowances by payable orders instead of by warrants. The change will bring my Department's system of payment into line with that in operation for other public service pensioners such as civil servants and gardaí. I might also mention that the maintenance of the present system of payment, which involves daily settlement with the Central Bank in respect of warrants presented for payment through the commercial banks, would create considerable difficulties in the context of the decentralisation of the Finance, including Pensions, Branch of my Department to Galway in mid-1989.
The December issue of pensions and allowances would ordinarily be made at the end of the month and would fall to be met from the following year's Vote. This is because, unlike payable orders, which are charged against the Vote on the basis of the date of issue, warrants are not charged against the Vote until they have been presented for payment. Thus, the early issue of the December pensions and allowances will result in 13 months issues, instead of the usual 12, being charged against this year's Vote and hence the need for the Supplementary Estimate.
The gross extra expenditure requirement is £2,740,000. This is again partially off set by savings, including increased Appropriations-in-Aid, amounting to £390,000, thus reducing the net Supplementary requirement to £2,350,000.
I commend both Estimates to the favourable consideration of the House. If Deputies require more information on any points I have raised, I shall be glad to respond within the time available.