I reject the Deputy's allegation that the president of RACO criticised me. He did not. He expressed concern about the level of consultation between him or his organisation and the military authorities but he accepted that I have met RACO on nine occasions in the past twelve months. I have had ongoing consultations with both RACO and PDFORRA.
I also reject the suggestion that this process is a cost cutting exercise. It is the first time since the foundation of the State that anything has been done to restructure the Defence Forces. It is not about reducing numbers. Its objective is to make existing numbers more effective, efficient, younger and more capable of performing the tasks expected of them.
Both the EAG's and the consultants' reports clearly established the Defence Forces had an age profile problem, with a huge number of personnel in medical category C who were unable to perform normal duties. Our job is to run the Army, the Naval Service and the Air Corps and they have specific tasks to perform. We have, in a humane way, offered those forces voluntary early retirement at considerable expense to the taxpayer. After this year, the Government will have spent up to £45 million on the voluntary early retirement scheme. In addition, we have taken in 400 recruits in two months and we hope to take in another 200 within the next three months as part of the programme of older personnel leaving and young people joining.
The Army has a job to do and I do not want trained soldiers carrying out functions that can be carried out by civilians. I want trained soldiers to do the job for which they joined the Force and for which they are trained. Frustration arises when trained soldiers are asked to do menial tasks which can be done by others without the soldier's skills being wasted. When one endeavours to carry out major reform in any organisation the initial stages will be upsetting. That is only natural. People have been doing things in the same way for the past 50 or 60 years. It will take up to ten years for major changes to be established and to achieve the required result. We knew that from the outset.
I reject the suggestion that there is a morale problem in the Defence Forces. In the past two weeks I visited six barracks on the Border. I did not find low morale in the course of those visits, I found concerns. In many cases I could allay those concerns and, in some cases, I undertook to examine them. I will continue to do that.
Please do not suggest this scheme is a cost cutting exercise. We have given a commitment that at least 50 per cent of the savings that will arise at the end of the voluntary early retirement scheme will be invested in new equipment. I hope we can secure an agreement from the Department of Finance that, when it has recovered the moneys spent on the scheme on behalf of the taxpayer, we will receive 100 per cent of the savings. However, there will be no savings in the Defence Forces following implementation of the plan until 1999. This year we will spend £30 million on the VER. Last year, £13 million was spent on it while next year at least £30 million will be spent. We are not talking about savings yet. However, savings will begin to come on stream in 1999. The Defence Forces want us to give a guarantee that those savings will be invested in equipment, refurbishment and so forth. That commitment has been given and will be given in the future.
If the Deputy wants me to deal with every item raised by the president of RACO, I will be here until 5 p.m. However, I will forward my reply to the Deputy so he can see my response to the various points made by the president. If the Deputy is not satisfied, I will be pleased to return to the House next month and answer any questions he might have about that reply.