Seán Power
Ceist:6 Mr. Power asked the Minister for Defence the savings, if any, the voluntary early retirement scheme will bring about; and when these savings will be spent on infrastructure and new equipment for the Defence Forces. [23960/96]
Priority Questions. - Defence Forces Savings.
In accordance with the Defence Forces Review implementation plan, the strength of the Permanent Defence Force will reduce by approximately 1,300 over the three years 1996 to 1998. Due to the cost of the voluntary early retirement scheme, net savings arising from the reduction in strength will not begin to accure until 1999. From that year onwards savings are estimated to be in the order of £15 million per year. It is the intention that the savings accruing from the reduction in numbers in the PDF should be shared between the Exchequer and the Defence Forces. The precise details remain to be finalised but I am confident a significant portion of these savings will be available for investment in infrastructure and new equipment for the Defence Forces commencing in 1999.
I am disappointed with the Minister's response. We all realise a restructuring of the Defence Forces is necessary. On a number of occasions the Minister has asked members of the Defence Forces to take ownership of this plan if it is to be successful. Their biggest concern and frustration is that so many changes are necessary major sacrifices will have to be made. However, until now, the only sacrifices have been by the members and there appear to be no benefits accruing to them for making them.
The Minister mentioned savings of £15 million per year from 1999 onwards due to reduced numbers. He was able to make changes to the voluntary early retirement package to facilitate a certain number of people this year. Can the Minister do something similar with the savings to be made in 1999, and spend them now? Nothing is more necessary in our Defence Forces than an injection of capital to improve infrastructure and equipment. Members of the Defence Forces know major investment is badly needed. If the Minister could indicate that he has such a plan in mind, it would do a lot for morale in the Defence Forces.
If the Deputy looks at the Book of Estimates he will find there is an increase in the money available to the Defence Forces, particularly for capital projects this year. We are making improvements to the 80:20 ratio of salaries and wages to equipment and capital works. The Deputy asked what would happen with savings, if any, and I said they will be spent on equipment and new infrastructure for the Defence Forces. The savings will not be available until 1999. Next year alone we will include £30.5 million for a voluntary early retirement scheme. This year we spent in the region of £13 million which makes a total of nearly £44 million in two years. There are no savings there but when they arise they will be given back to the Defence Forces. It is my policy — and I hope that my successor will follow it — to move towards a ratio of 70:30 instead of 80:20 as at present. That is precisely the reason new efficiencies and greater streamlining will result in members of the Defence Forces having the equipment and infrastructure they deserve to do their job properly.
I am responding positively to the Deputy's question. I cannot do anything about the fact that there will not be savings until 1999. That will be a matter for the Government. I am looking for a commitment that at least the savings will be shared until the cost has been returned. I hope that in future any savings that arise will go into necessary infrastructure and equipment.
Does the Minister agree he is postponing the efficiencies we are all seeking if a smaller number of people are asked to do the same number of duties?
I am not postponing any efficiencies. There are no savings. The Deputy's question asks whether the savings, if any, will be spent on infrastructure and new equipment. They will, but the savings will not arise until 1999 so we are not postponing anything. There are additional costs at the moment because of the VER scheme but when that has been completed the savings arising will be spent on infrastructure and equipment.