Chairman, thank you for facilitating this meeting. I am pleased to be appearing before this comittee for the first time in my capacity as Minister for Defence. I will be happy to accept your invitation to discuss the Price Waterhouse report, the EAG report on it and the Government's decision at a future date.
It is a valuable and worthwhile exercise to debate the Defence and Army Pensions Estimates under the committee system. Moreover it gives us time to consider in some detail the manner in which resources are deployed and managed in the business of maintaining the Defence Forces. It also gives us the opportunity to have a preliminary look at some of the important steps being taken at the moment with a view to reshaping the Defence Forces. These changes will mark a watershed in the development of the organisation.
There is widespread agreement on the need to modernise the structure and organisation of the Defence Forces. Its basic underlying framework has remained unchanged for decades. The review of the Defence Forces, initiated by the previous Government, which has been undertaken by the EAG provides an opportunity to address many issues in the Army, Naval Service and Air Corps which require attention. A number of issues have been the subject of public debate for a considerable period of time.
What is now contemplated is a structured set of reforms to modernise the Defence Forces, both in terms of organisation and skill levels. This programme of modernisation will be introduced on a carefully planned basis in order to allow the current organisation to adapt to the necessary changes.
The Government will shortly consider the report of the EAG on their review of the Defence Forces. The EAG's examination is the most comprehensive study of the Defence Forces since the foundation of the State. I think a distorted view of the review process has emerged. I would like to place on the record the actual terms of reference given to the EAG when the review was initiated by the last Government. They are as follows:
To develop feasible options for the overhaul of the Defence Forces structures and systems having regard to the statement of roles as approved on 21 September, 1993 with the aim of achieving: the most efficient and effective procurement, deployment and use of resources, recognising resource constraints and with particular reference to geographic location; the optimum command, grading and management structures and systems (including arrangements in respect of the interaction between the Defence Forces and the civil side of the Department of Defence); and the appropriate level and composition of administrative and operational strength and equipment.
External consultants were engaged by the EAG to conduct the detailed work of the review. To ensure that the consultants had the necessary military expertise, senior officers of the Defence Forces were involved at every stage of the selection process. The selected firm, Price Waterhouse, provided a team which included Major-General Lewis Makenzie, the ex-UN commander in the former Yugoslavia, and other Canadian military experts. The Canadian military team was accepted by the Irish military authorities as having the necessary and appropriate military competence to conduct the review. Furthermore, the EAG appointed its own separate military adviser, a recently retired Air ViceMarshal of international repute, from New Zealand. The military authorities were involved in the steering group for the study. Much of the detailed research and technical studies were carried out by military officers under the supervision of the consultants.
The review should not be seen as a mere cost-cutting exercise. The EAG was not asked to review the Defence Forces to produce a programme of cutbacks and closures. Key words which appear in the terms of reference are "feasible", "efficient", "effective", "optimum" and "appropriate". "Optimum" implies best, for the achievement of a result. This is precisely what the Government wants for the Defence Forces; an organisation that is best suited for the discharge of the assigned roles. A key objective is to release more personnel for operational duties. This is also what military personnel themselves want.
While praising military personnel for their excellent record of service, the EAG has identified weakness in structures, practices and organisation which it will be necessary to address. I met the Defence Forces representative associations on a number of occasions, briefed them on the general thrust of the EAG's findings and recommendations and obtained their views on those matters which fall within the agreed terms of the conciliation and arbitration scheme.
The recommendations of the EAG will be carefully considered by Government before any definite steps are taken. It will be necessary to establish an implementation group to prepare a fully costed implementation plan for Phase 1 of the proposals which will address the more important issues, including structure, personnel and resources. I envisage the implementation group taking approximately three months to prepare such a plan, given the size and diversity of the military organisation. The committee will be kept informed of decisions in this regard. I look forward to having further discussions with the committee at a future date. I wish to deal now with some specific items which seem to be causing undue anxiety based on rumour and speculation.
An important element in the organisation of the Defence Forces is their deployment in barracks throughout the country. There has been some alarmist talk in relation to the question of closure of Army barracks. While the Government have yet to consider the report of the EAG, I have decided that in the context of Phase 1 of the implementation process there will be no barracks closures as part of the three year plan which it is proposed to formulate. However, there will be a study of facilities occupied by the Defence Forces in the three year plan. In conducting this study, full regard will be had to the socio-economic importance of local barracks.
With regard to military bands, Price Waterhouse recommended that the number of bands should be reduced from four to one. This proposal, as it stands, is not acceptable to me and I do not believe it will be acceptable to the Government. For many years the Army School of Music — and generations of military musicians who received their training there — has made an invaluable contribution to the life of the Defence Forces. Army bands have an important role on many State ceremonial occasions. They also make a valuable contribution to the community. They are in constant demand to give public performances at major events throughout the country. For many years Army musicians have maintained an admirable standard of excellence. The presence of Army bands has contributed a unique lustre to imporant national events and have an important role in maintaining the esprit-de-corps of the Defence Forces. I will ask the implementation group to take cognisance of the importance of Army bands when proceeding with its work.
Following the unauthorised publication of extracts from the Price Waterhouse report in July last year, there was a degree of speculation about the Army School of Equitation. No decisions have been taken concerning the equitation school and it has been made clear that there is no question of it being closed. In implementing the EAG report, the focus will be on ensuring that the school has an adequate supply of first class horses and riders. The school has a long and distinguished record in showjumping at home and overseas and has played a major role in promoting the non-thoroughbred Irish horse. Deputy Barrett, in his role as Minister of State at the Department of Defence, is paying particular attention to the equitation school and addressing the question of ensuring that a continuing supply of horses will be available for teams competing in the international arenas. The question of how best to achieve this is being examined. One possibility is the introduction of sponsorship arrangements. I am also anxious to ensure that the school will continue to produce top class riders to represent Ireland. I might mention that in this year's intake of cadets, two cadetships are being specifically reserved for the equitation school.
The rising age profile of military personnel has been the subject of public comment for some time. It is one of a number of issues which will have to be addressed in implementing a programme of reform in the Defence Forces. It is envisaged that a voluntary early retirement scheme will be introduced but there will be a process of consultation with the representative associations before the details of any scheme are drawn up. It would be premature, therefore, to engage in speculation about the details of a scheme. It has already been made clear, however, that there will be no compulsory redundancies.
There will be a further intake of recruits for general service in 1995. I will be making an announcement in that regard in due course. As the committee will appreciate, it is appropriate and prudent that recruitment measures should be harmonised and synchronised with the reform plan, particularly in the context of the overall age profile. Interviews are taking place at present for the award of 35 apprenticeships in the Army and Air Corps. In addition, advertisements for the award of cadetships in the Army, Air Corps and Naval Service were placed in the national press recently. It is envisaged that about 35 cadetships will be awarded this year.
The main day to day role of the Naval Service is to provide a fishery protection service in accordance with the State's obligation as a member of the EU. The Naval Service's efforts in his regard are complemented by assistance provided by the Air Corps. In addition to surveillance work undertaken by Dauphin helicopters, working in conjunction with LE Eithne, two new CASA aircraft have been acquired for the Air Corps for aerial maritime patrols. With the new arrangements on fishery control measures, which will arise in 1996, the workload of the Naval Service is set to increase. I am conscious that additional resources, including ships, are required to enable the Naval Service to patrol our waters more effectively and to enforce the new fishery control measures coming into place.
I expect that a new EU fisheries surveillance package will be available, the details of which may be available at the Fisheries Council in June. I am hopeful that, for the first time, such a package will include an element of funding for operational costs for Ireland. An essential ingredient in the new package, as far as Ireland is concerned, with the provision of additional ships for the Naval Service. Discussions have been ongoing between officials from both of my Departments to determine how best to meet the enforcement requirements of the new control measures, and to prepare a detailed case for funding which I will present to the Commission in the near future.
Responsibility for the prevention of illegal importation of drugs rests primarily, with the Garda Síochána and the Revenue Commissioners. The Defence Forces respond to requests from the civil authorities for assistance, including assistance in combating the illegal importation of drugs and will continue to do that. The Minister for Justice is formulating proposals designed to secure the best arrangements for achieving a cohesive and co-ordinated response to the drug trafficking problems by existing law enforcement agencies and I understand that these proposals will be submitted to Government shortly.
I expect that these proposals will include provision for the designation of certain Naval personnel as enforcement officers for the purposes of part V of the Criminal Justice Act, 1994. The designation of Naval personnel as enforcement officers will empower those members of the Service to take effective action where drugs offences come to their notice in their normal fishery patrols and in the absence of either the Garda or Customs Service. At present, the Naval Service are precluded from making an arrest without having a Garda present which is frustrating for them.
I would like to briefly highlight some of the principal features of the Defence Estimate. The Estimate is for a gross sum of £389,862,000, an increase of more then £17 million on the 1994 figure. Pay and allowances in respect of the Defence Forces account for £296 million or approximately 80 per cent of the Estimate. The net sum required for 1995 is £373,662,000 and the Estimates is based on an average total strength of 12,975 in the Defence Forces comprising 1,550 officers, 11,300 non-commissioned officers and privates, 60 cadets and 65 members of the army nursing service. Provision is also made for the training of approximately 9,000 FCA and Slua Muirí personnel.
Non-pay expenditure totalling some £93 million is detailed in 21 subheads. A synopsis of the subheads has already been circulated to Members of the committee. Almost £19 million of the non-pay element will be used for the purchase and maintenance of aircraft and related equipment. The two new purpose built CASA CN 235 maritime patrol aircraft which were delivered to the Air Corps at the end of last year are now operational and are proving to be very effective in the detection of fisheries offences. The capital cost of these aircraft is part funded — 50 per cent — by the EU. Their introduction and the continuing excellent work being done by the Naval Service fishery protection vessels will ensure that our valuable natural resources are better protected and that we are capable of fulfilling the obligations incumbent on us as a member of the European Union.
I take this opportunity to pay tribute to the various elements of the Defence Forces — Army, Air Corps, Naval Service and the Reserve Defence Force — for their work at home and abroad. Irish troops serving overseas have attracted commendation and acclaim for the consistently high standards they have maintained over the years as peacekeepers, often in very difficult circumstances.
I was delighted to have an opportunity — my first as Minister for Defence — in March last to visit our troops in their peacekeeping role in Cyprus and the Middle East. They have a proud record and tradition and they are deserving of our congratulations. I am sure that the committee will join me in paying tribute to them. It is particularly in the role of peacekeeping that the professionalism of members of the Defence Forces comes to the fore. Irish soldiers have built up an enviable international reputation as peacekeepers. Service with the United Nations demands a wide range of skills and personal qualities. Frequently, patience and diplomacy may be as necessary as the conventional military skills of the soldier. Decades of experience have shown that Irish soldiers have these qualities in abundance and the number of requests the Government receives from the United Nations confirms the high regard in which Irish soldiers are held. The contribution made to peacekeeping operations has enhanced the prestige of Ireland internationally and has been a source of pride to all Irish people.
Since Ireland first contributed troops to the UN in 1958, Irish soldiers have participated in over 35 individual missions. Over 9,000 personnel who currently serve in the Defence Forces have completed a tour of duty in an overseas mission. This proud record is built on voluntary service. It says something about the character of our Defence Forces that, whenever new missions arise, the number of volunteers invariably exceeds the number of available places.
Our single biggest contribution to the United Nations in terms of personnel continues to be the UNIFIL mission in Lebanon. For many years it seemed that there was no hope of an end to the conflict which engulfed Lebanon. However, peace is now beginning to take hold. The Middle East peace process is making its impact on life in the region and the hope is that the situation in Lebanon will return to a point where the presence of UNIFIL will no longer be required. However, I feel that that point will not be reached for some years yet. Requests for the United Nations to contribute to peacekeeping missions will of course always be considered carefully and sympathetically as they arise and as our resources permit.
The United Nations School in the Curragh is a repository of expertise on peacekeeping built on the experience gained over many years by members of the Defence Forces. Requests by many overseas military authorities including the United States, the United Kingdom and more recently Lebanon to participate in courses here is a recognition in itself of the high regard in which our Defence Forces are held on the international peackeeping front.
The Army pensions estimates for the year ending 31 December 1995 is for a gross sum of £55,730,000, the net figure being £52,945,000. This figure represents an increase on last year's outturn of approximately 1 per cent. Details regarding this Estimate have also been circulated to the committee. Almost 91 per cent of the Estimate will be expended on service pensions and retirement and death gratuities for former Defence Forces personnel and also for pensions and allowances payable to spouses and children of personnel. Approximately 8,000 former members and their dependants are involved.
I wish to pay tribute to Mr. Sean Brosnan who is retiring this month. He has given outstanding service to the State and to me, since my appointment as Minister about six months ago. I will be pleased to answer any questions Members may have.