Gay Mitchell
Ceist:49 Mr. G. Mitchell asked the Minister for Defence the money which has been re-invested in equipment from the voluntary early retirement scheme; and the percentage of total income from the scheme this represents. [4628/00]
Written Answers. - Defence Forces Retirement Scheme.
Gerry Reynolds
Ceist:96 Mr. G. Reynolds asked the Minister for Defence the savings which have accrued from the voluntary early retirement scheme; the way in which these savings were used; and if he will make a statement on the matter. [4495/00]
Frances Fitzgerald
Ceist:113 Ms Fitzgerald asked the Minister for Defence the money which has been re-invested in equipment from the voluntary early retirement scheme; and the percentage of total income from the scheme this represents. [4654/00]
I propose to take Questions Nos. 49, 96 and 113 together.
During the three year period 1996 to 1998 a total of about 1,500 personnel availed of a voluntary early retirement scheme at a cost of £65 million in lump sums and pensions. From 1999 onwards, net pay savings arising from the reduction in numbers began to accrue. These savings are estimated at £15 million in 1999 and at £15.4 million in 2000. It was agreed that half of these ongoing pay savings would be retained in the Defence Vote for investment in equipment and infrastructure and that the other half of the savings would go to the exchequer in order, among other things, to repay the initial cost of the VER scheme.
The pay savings allocated to the Defence Vote arising from the VER scheme will fund the purchase of 40 armoured personnel carriers over the next few years.