I am pleased to have the opportunity to discuss with the committee the Revised Estimates for my Department's group of Votes and the annual output statement for 2009. The annual output statement is designed to match key outputs and strategic impacts to financial and staffing resources for the financial year. Information on performance against targets for 2008 is contained in the statement. The output statement describes the joint outputs of the military and civil elements of the defence organisation, with outputs grouped under five distinct programmes. The estimated expenditure on each of the five programmes represents the costs for the anticipated levels of activity for the current year and the associated outputs under each of the programme headings. I am pleased to announce that the outputs set in last year's statement were, in general, achieved to a high standard. Further details of the five programmes are contained in the output statement circulated to members.
The combined Estimates for my Department provide for gross expenditure of €1,031 million in 2009. As in other areas of public expenditure, the level of expenditure on defence this year must take account of the very difficult state of the public finances. The gross Estimate for Vote 36, pertaining to the Department of Defence, represents an overall reduction of 6% compared with last year's spend. However, the impact of this reduction is mitigated to some degree by several factors, including the substantial investment in modern equipment, training and infrastructure for the Defence Forces which has taken place in the past ten years, and the reduced cost to the Defence Vote in 2009 of the Chad mission arising from its changeover from European Union to United Nations command in March of this year. The Defence Estimate includes provision for the pay and allowances of an average of some 10,200 Permanent Defence Force personnel, 800 civilians employed with the Defence Forces throughout the State and 370 Civil Service staff. It also provides for the pay of members of the reserve while on full-time training. Vote 37, pertaining to Army pensions, provides for the payment of more than 10,000 service-related pensions and some 1,100 disability-related benefits to former members of the Defence Forces and their spouses and children.
The recent Government decision on measures to achieve reductions in public service numbers is being implemented in the Defence Forces. From 27 March 2009 to the end of 2010, no public service vacancy, however arising, may be filled by recruitment, promotion, or payment of an allowance for the performance of duties at a higher grade. Prior to the decision of 27 March, recruitment to the Defence Forces was suspended in late 2008, with the exception of medical officers. That was necessary to meet the reduction of 3% in payroll costs for 2009 which applied to the Defence Forces in common with other areas of the public service. This step was taken pending a review of the best means by which to achieve this reduction. The implications of the Government decision for the Defence Forces are under consideration in consultation with the military authorities and the Department of Finance. Clarification is being sought, for example, with regard to advancements in rank. These include the commissioning of cadets and advancement to three-star private of apprentices on completion of their apprenticeship. The terms of the employment contracts of certain categories of personnel with regard to fixed-term promotion are also being clarified. The effects of the measures are constantly monitored, with particular regard to the operational requirements of the Defence Forces.
The Defence Forces have improved in every respect since 2000 through the implementation of the White Paper. This represents a significant public service success story. The organisation is in a healthy state both in terms of personnel and equipment. It is intended, within the resources available, to maintain the capacity of the organisation to operate effectively across all roles. This will represent a significant challenge in the coming years. The men and women of the Defence Forces have over the years risen admirably to that challenge of change and modernisation. They are now being asked, with other public servants, to rise to this challenge and I am confident they will do so with the same sense of public service they have displayed in the past. The input of the representative associations will continue to be sought in the period ahead. Significant developments have taken place on the equipment front in recent years that have spanned the Army, the Air Corps and the Naval Service. The equipment programmes have been instrumental in ensuring Defence Forces personnel have the most modern equipment to undertake tasks assigned to them by the Government.
Despite the current very difficult economic environment, the allocation in the Defence Estimate will allow us to make further real progress on the ongoing programmes of investment in equipment and infrastructure. On the equipment front, the main focus in 2009 is on the procurement of light tactical armoured vehicles, LTAVs, and general purpose 4 x 4 vehicles for the Army, and the ship replacement programme for the Naval Service. Significant investment has been made in replacing the aircraft in the Air Corps in recent years, with new trainer aircraft, a new helicopter squadron and a significant mid-life upgrade to the CASA maritime patrol aircraft.
The acquisition of the LTAVs is a top priority for the Defence Forces, given the extensive nature of their roles on overseas peace support missions, the threat from improvised explosive devices and the potential for hostile fire in certain operational environments. Force protection remains a key issue in overseas peace support operations and it is very important that vehicles such as these are available to our personnel. A contract for the supply of 27 vehicles to the Defence Forces was awarded to BAE Systems based in South Africa in December 2008. The LTAVs will complement the Mowag armoured personnel carriers, APCs, in the conduct of conventional and peace support operations and will fill a gap that exists between soft-skinned vehicles and the Mowag APCs. The contract will run over a period of three years from 2008 to 2010 and has a value of €19.6 million, inclusive of VAT. An initial down payment of €8 million was made in 2008 and a further stage payment of €7.5 million will be made this year, with the balance due to be paid in 2010. Sixteen of the vehicles will be delivered towards the end of this year and 11 in 2010.
With regard to the Naval Service, following the first two stages of the tender competition for two offshore patrol vessels, a preferred bidder has been selected and contract negotiations are expected to conclude shortly. The matter will then be brought to the Government for approval on financing. Subject to that approval, it is expected that the new vessels will be delivered for acceptance by the Naval Service on a phased basis between 2011 and 2013. If the Department exercises its option of purchasing a third offshore patrol vessel, a mutually agreeable delivery date will be negotiated. The first stage in the procurement process for a larger extended patrol vessel, EPV, also has been completed. However, it is intended to complete the negotiations on the two offshore patrol vessels before initiating the second stage of the EPV competition. The acquisition of these modern new vessels will ensure that the Naval Service will be fully equipped to carry out its day-to-day roles in enforcing the State's sovereign rights over our waters and fisheries and in meeting Ireland's obligations in the area of maritime safety and security and fisheries protection.
As I noted earlier, together with the extensive investment in Defence Forces equipment, we also have made substantial investment in infrastructure, accommodation and training facilities. This investment programme will continue in 2009. The provision for capital building works this year is €14.6 million, as well as a carry-over of €2.5 million from 2008. Major projects will shortly be completed in the Naval Base, Haulbowline; Aiken Barracks, Dundalk; the Defence Forces Training Centre, Curragh; Casement Aerodrome, Baldonnel; Custume Barracks, Athlone; and Kilworth Camp, Cork. Major projects are under way or due to start this year in a number of other locations. As members will recall, a small number of barracks were closed earlier this year. The consolidation of the Defence Forces formations into a smaller number of locations will improve their overall efficiency, reduce overheads and provide better opportunities for essential collective training. At the time of the closure, I indicated there would be a need for some upgrade of facilities at the receiving barracks. The planned investment in Custume Barracks and Aiken Barracks is part of the upgrade plan and will provide improved gymnasium facilities to all the troops based in both locations.
Turning now to the Reserve Defence Force, the plan to enhance the reserve is ongoing and significant progress has been made to date in implementing the plan. The reserve has been reorganised along similar lines to the Permanent Defence Force and there has been increased investment in the reserve with new equipment, clothing and opportunities for improved training. A pilot scheme for the integrated reserve was run in 2007 and continued into 2008 and approximately 300 reservists completed the pilot programme. Options for developing the integration concept further are being considered.
The primary objective in the current year is to consolidate the significant gains that have been made in developing the reserve. All members must be afforded the opportunity to undertake training, as outlined in the Reserve Defence Force review implementation plan. This will be undertaken, to the greatest extent possible, within the current budgetary constraints. It was necessary to cap the strength of the Army reserve and the Naval Service reserve earlier this year until the budgetary position for the year was known. However, following a review and examination of reserve personnel numbers and budgets for 2009, I am now satisfied there is sufficient provision to allow for paid training for the current strength of the Army and the Naval Service reserve. Accordingly, I recently approved the commencement of limited recruitment to fill vacancies which may arise due to existing reserve members resigning or being discharged during 2009, in the normal manner.
The reduced budgetary provision and the Government moratorium on recruitment to the public service have prevented the recruitment of members of the reserve to the Permanent Defence Force for the purpose of overseas service and this project has been postponed for the foreseeable future. The Reserve Defence Force has been selected for review as part of the 2009 to 2011 phase of the Government's value for money and policy review initiative. It is anticipated that this review will assist in informing decisions regarding the future of the reserve.
I now wish to refer to Ireland's commitment to overseas operations. Ireland's participation in peace support operations, including those under the EU umbrella, represents a continuation and enhancement of our long and honourable tradition of support for international peace and security in support of the United Nations. The Defence Forces have brought great honour to Ireland through their participation in peace support operations throughout the world.
At present, Ireland's main overseas commitment is to the United Nations Mission in the Central African Republic and Chad, MINURCAT. When the mandate of the EUFOR mission expired on 15 March 2009, it was replaced by MINURCAT, which was established under the authority of UN Security Council Resolution 1861. MINURCAT assumed operational control of the United Nations force of 2,085 personnel, including 1,877 troops re-hatted from eight EUFOR contributors. The Irish contingent, which had been deployed in Chad with EUFOR, transferred to the authority of MINURCAT on 15 March 2009.
The Defence Forces currently deploy a mechanised infantry battalion in Goz Beida, south-eastern Chad, consisting of two mechanised manoeuvre companies and support elements. The contingent comprises a total of 408 personnel. An additional 13 personnel serve in the force headquarters in Abeche. I am pleased to state that an Irish officer, Brigadier General Gerald Aherne, has been appointed deputy force commander of MINURCAT.
At present, the other main Defence Forces deployments on UN-authorised missions are to the NATO-led operation in Kosovo, KFOR, with 239 personnel and to the EU-led operation in Bosnia and Herzegovina, called Operation Althea, with 44 personnel. In Kosovo, 221 Irish personnel comprising an APC mounted infantry company group serve as part of a multinational task force. The other 18 Irish personnel deployed with KFOR are serving at force headquarters. The Irish contingent serving with Operation Althea is located at the headquarters in Camp Butmir, Sarajevo. This mission is expected to change later this year from its current configuration of some 2,200 troops to a support and training operation which will involve some 200 military personnel, at which stage the Irish troops will be withdrawn.
I wish to turn to EU security and defence developments. European security and defence policy, ESDP, is an integral part of the Common Foreign and Security Policy. It includes the EU's international obligations to the maintenance of international peace and security. The ability of the European Union to contribute to conflict prevention, peacekeeping and crisis management continues to be of primary importance to member states and is carried out within the context of ESDP. The tasks to be carried out under ESDP are the Petersberg Tasks, which were originally agreed in the Amsterdam treaty of 1999. These tasks have been further elaborated in the Lisbon treaty to include disarmament operations, military advice and assistance in the context of security sector reform, conflict prevention and post-conflict stabilisation. I am of the opinion that this provision more accurately reflects the type of military and civilian missions the European Union is now undertaking and may undertake in future.
Ireland's participation in the development of ESDP is fully consistent with our policy of military neutrality and our commitment to international peace and security. It also enhances our position on the international stage as it is aimed primarily at conflict prevention, peacekeeping, humanitarian missions and crisis management. In this regard it is appropriate at this time to mention that ratification of the Lisbon treaty will not affect Ireland's policy of military neutrality. The Lisbon treaty does not alter the essential features of ESDP.
There are significant safeguards for Ireland's position of military neutrality in the Lisbon treaty. First, it states "national security remains the sole responsibility of each Member State". Second, all decisions on ESDP must be taken by unanimity, which means Ireland has a veto on ESDP issues and deployments. The treaty contains explicit provisions that ESDP "shall not prejudice the specific character of the security and defence policy of certain Member States", which was inserted at Ireland's request to protect our policy of military neutrality. Moreover, under the Lisbon treaty the adoption of any common defence arrangement would require the unanimous approval of all member states, including Ireland. As we are all aware, Ireland remains constitutionally debarred from participation in an EU common defence without the prior consent of the people in a specific referendum on the issue.
Our main priority in terms of the European Security and Defence Policy, ESDP, is the continued improvement of the EU's capability to undertake peace support operations as reflected in the agreed range of tasks to meet the objectives of the Headline Goal 2010. The most high profile aspect of the headline goal was undoubtedly the decision of the EU to acquire the capacity to deploy force packages at high readiness, commonly known as battle groups, in response to a crisis. The EU battle group provides a mechanism by which the Union can respond with direct and immediate action to an evolving crisis.
Ireland participated in the Nordic battle group, which was on standby from 1 January 2008 until 30 June 2008. Other contributors were Sweden, acting as framework nation, Finland, Norway and Estonia. With regard to Ireland's participation in future battle groups, we are committed in principle to participating in the Nordic battle group in 2011. It will be on standby for the first six months of 2011. As yet, the contribution that Ireland will make to it has not been finalised. Preliminary discussions have also taken place regarding our possible participation in the proposed Austrian-German battle group that will be on standby in the second six months of 2012. Ireland's participation in battle groups is a further development in the capabilities of the Defence Forces. It reflects our desire to be able to respond across the whole spectrum of operations in support of and in response to requests from the UN for capable and interoperable forces.
The investment that the Government has continued to make in the Defence Forces since the 2000 White Paper means that the modern Defence Forces have the capacity and professional capabilities required to be able to contribute to higher end, more mobile and more deployable forces such as battle groups. This would have been an impossible challenge for the Defence Forces a mere ten years ago. Indeed, without the targeted investment strategy and concerted modernisation programme implemented under the White Paper over the past ten years, we could never have had the successful deployments to Liberia and, more recently, Chad. We are now reaping the benefits of greater efficiency, effectiveness and capability across the modern defence organisation as a whole. The planned 2009 expenditure is designed to build on this success so as to maintain and consolidate the capability of the defence organisation to meet future challenges and to undertake all the roles assigned by the Government.
Ireland continues to contribute effectively and efficiently to operations, both military and civil, in the ESDP area. We also aim to foster and encourage the ongoing development of EU-UN co-operation in the areas of humanitarian action, crisis management, peacekeeping and conflict prevention. In this regard, it should be noted that all military operations launched by the EU were supported by or in support of the United Nations.
The capacity of the Union to deploy military forces is but one element in the full range of policy instruments available to the EU, which includes diplomatic, political, financial and economic instruments. While the EU conducted 12 operations across three continents in 2008, only two of those were purely military crisis management operations. Of the 28 operations launched to date by the EU under the ESDP, 20 were defined as being civilian missions and only eight were military operations.
I would like to update the committee on the office of emergency planning in my Department. The office has recently developed a revised and expanded roles and responsibilities document, which forms part of its strategic emergency planning guidance and identifies the lead Department concept as one of the central principles of strategic emergency planning. The revised document sets out the lead Department and those Departments that have a supporting role in more than 40 different emergency scenarios. It will bring clarity to the responsibilities of Departments and will also help them in preparing and updating their emergency plans.
The Government task force on emergency planning continues to meet on a regular basis and recently received a comprehensive presentation from the Department of Health and Children on the public health situation with regard to human swine influenza. The task force will continue to monitor the situation in conjunction with the Department and the Health Service Executive.
I wish to inform the committee that preparations for the decentralisation of my Department's Dublin-based staff to Newbridge are at an advanced stage. The number of posts to be relocated is approximately 200 civil servants and 45 military personnel. Over 90% of the Civil Service staff are now in place in anticipation of the move. The new building to house the Department in Newbridge is under construction and is scheduled to be completed in December 2009.
The Government decision on decentralisation also provides for the transfer of Defence Forces headquarters staff to the Curragh, County Kildare. A site has been selected and planning permission obtained. The Office of Public Works has advised that it expects to be in a position to invite tenders for this project over the coming months. The building is expected to be completed by the end of 2011.
I commend the defence and Army pensions Estimates to the committee and will be happy to respond to any questions that members might have.
