Chairman, Deputies, I am pleased to put before you today the Defence and Army Pensions Estimates for 2000. I look forward to a constructive and worthwhile debate on these Estimates which constitute a substantial amount of Exchequer funds - a total of £608m. As the Committee will be aware, the first White Paper on Defence in this country was published earlier this year. The White Paper sets out a comprehensive strategy for the management and development of defence for the next decade.
This strategy includes a major new £250m investment programme in equipment and infrastructure. This will ensure that we have a modern and sustainable defence organisation with the depth and flexibility to respond to future demands. In relation to the Defence Forces the broad goals of the White Paper were - To provide a light infantry based force with an appropriate level of all-arms capability To provide sufficient forces and capabilities to meet needs at home and to make a significant contribution abroad To put in place a more cohesive and better equipped force than exists at present, and To provide significant additional resources for equipment and infrastructure broadly within the existing level of financial allocation. I am glad to be able to tell the Committee that the task of implementing the decisions set out in the White Paper is moving ahead quickly and positively. The most important element of this is the organisation and resourcing of the Defence Forces. In that regard I recently requested the Chief of Staff to draw up a draft implementation plan for my consideration and approval which will give effect to the organisational elements of the White Paper. I informed the Chief of Staff that I considered it important that the draft plan should adopt a long term view of the Permanent Defence Force organisation to reflect the ten year time frame of the White Paper. The new organisation will be based upon an overall PDF strength which will not exceed 10,500 with the option of an additional 250 recruits in training. The implementation plan will provide for the maintenance of existing barracks and will be broadly consistent with the proposals for the reorganisation of the Reserve Defence Force set out in the White Paper. It has also been decided that an updated Defence Forces Personnel Management Plan should be prepared as a matter of priority. This Plan will include a continuation of the policy of regular recruitment which is now in place in order to achieve an improved age profile in the Defence Forces. The Chief of Staff will manage recruitment to maintain the 10,500 strength and, to this end, funding for a recruitment advertising campaign was recently delegated to him. A campaign to recruit an additional 750 personnel, including 130 Naval Service recruits, commenced recently. In addition, a competition to recruit 60 cadets, including 12 Air Corps and 16 Naval Service cadets, is ongoing. The most important element of the White Paper is the reallocation of substantial resources to improved equipment and infrastructure. I have already announced decisions in relation to major new equipment programmes which are a key element of the White Paper. Air Corps capabilities will be augmented through a special £55m investment programme over the next three years, with the procurement of new helicopters being given special priority. The Naval Service vessel replacement programme has already commenced. A new state-of-the-art offshore patrol vessel, L.E. Roísín, was delivered in late 1999 at a cost of some £22m. Recently I signed a contract for the acquisition of another similar vessel which will be delivered in 2001. I also announced a multi-million pound investment programme for the Army, worth an estimated £25m over the next three years. The package includes the purchase of Light Infantry Tactical Vehicles, modern effective anti-armour weapons, night vision equipment, engineer equipment and medical field equipment. This is in addition to the programme for the acquisition of 40 Armoured Personnel Carriers which are due for delivery by early 2002 at a total cost of £40m. This equipment will be of considerable benefit to the Army in carrying out its roles at home and overseas.
As regards the provision of living, operational and training accommodation for the Defence Forces, a special reinvestment programme was initiated in 1999 to complement expenditure on the normal range of building and engineering works. The special programme is centred on the Curragh Camp and on Collins Barracks, Cork, and is expected to result in the investment of more than £50 million in additional funding in the period to the end of 2003. It is estimated that the combined cost of all new buildings and projects for the up-grading of existing buildings throughout the Defence Forces will exceed £100 million by that date. Investment of the scale which I have outlined confirms that the White paper represents a serious response by the Government to a sustained case advanced by the military authorities to develop the Defence Forces into a world-class military organisation. We have ensured that the funding that this ambitious project will require will be available in the years ahead.
The significant investments which I have outlined for the Air Corps and the Naval Service will take place against the background of the 1998 Price Waterhouse report which set out a range of recommendations for more effective and efficient air and sea services. While some of these recommendations could be proceeded with fairly quickly, it was recognised that others would take longer to implement. I am satisfied that the final Implementation Plans for the Air Corps and the Naval Service will be of a positive nature aimed at ensuring the ongoing development of these services consistent with the needs of the State and the taxpayer. The White Paper also sets out an overall strategy for the development of the Reserve Defence Force based on the report of a special Steering Group which I established in January, 1998. The Group produced its report in September, 1999, and the recommendations contained in the report have been accepted as a general basis on which the development of the Reserve Defence Force can proceed. The blueprint for the new Reserve Defence Force will involve replacing An Fórse Cosanta Áitiúil with an Army Reserve which will consist of two elements. One element will provide personnel who will integrate with Permanent Defence Force units to bring them up to full operational strength in a contingency situation. Personnel who opt for a period of integrated service will be provided with enhanced military training and career development opportunities and will be provided with appropriate equipment. The other element will provide the overall army Reserve, will be organised into three Brigades and the personnel will be trained on standard military lines. The White Paper recognised that a feature of the existing FCÁ organisation is that it has a country-wide geographical spread which will in general be retained. The full organisational and establishment details of the new Reserve Force will be determined in the implementation process which will consist of the development of a Reserve Defence Force Review Implementation Plan based on the Steering Group's report. The implementation of the structural and reorganisation changes will take place over a period of six years. There will be a requirement for the military authorities to consider and recommend detailed proposals for the restructuring of Reserve units within each Brigade area and such proposals are being drawn up at present. An Slua Muirí will be developed to improve the capacity of members to provide a genuine Naval Reserve capability based on a revised overall strength of up to 400 personnel. As a rationalisation measure the two Dublin based companies of An Slua Muirí will be amalgamated. The Naval Service, in conjunction with the Director of Reserve Forces, will formulate specific proposals to develop an integration role for the reorganised An Slua Muirí and I am advised by the military authorities that with that in mind a process of briefings and visits to the various companies of An Slua has already commenced. As a first step in the provision of enhanced resources for Reserve training, I am pleased to say that an additional allocation of £1½m has been provided under subhead D of the Defence Estimate. This will allow a significant increase in the number of man-days for annual training and full-time courses in the current year. I intend that the allocation for training will be further increased in the years ahead as the reorganisation process develops.
There are at present 873 personnel of the Defence Forces serving with 15 missions under the auspices of the UN, the EU and the OSCE. The recent withdrawal of Israeli forces from South Lebanon has heralded significant developments which will have implications for the future role of the United Nations Interim Force in Lebanon (UNIFIL). UNIFIL was established in 1978 to confirm the withdrawal of Israeli forces, restore international peace and security and assist the Government of Lebanon in ensuring the return of its effective authority in the area. In terms of UNIFIL troop strength, the UN Secretary General has indicated that the confirmation process may require an increase in strength of the Force. Also, arising from a formal request from United Nations Headquarters for an increase from four to eight in the number of Armoured Cars in the Irish Battalion an additional four Panhard AML 90's are on their way by sea and are due to arrive in the mission area later this week. UNIFIL propose to supply the Battalion with an additional five armoured personnel carriers to meet their patrol tasking. The military authorities estimated that this extra equipment would result in the need for 50 additional personnel to provide crews and maintenance for vehicles. Last week the Government gave authority to deploy the 50 additional personnel with the 87th Infantry Battalion in UNIFIL until the end of its tour of duty in October 2000. Furthermore, should the exigencies of the operational situation on the ground so require, an engineer party comprising some 60 personnel together with necessary equipment to undertake essential construction work in the IRISHBATT area of operations will also be assigned. Such deployment will only take place on receipt of satisfactory assurances concerning the safety of the UNIFIL mission. The safety of our personnel is of paramount importance at all times and in that regard I am monitoring very closely the situation in Lebanon. At this juncture I would like to take the opportunity to once again acknowledge the contribution the Defence Forces make to Irish society. As a nation we take pride in the excellent work carried out by the Defence Forces at home and overseas. Following the ratification of the Amsterdam Treaty, the EU Common Foreign and Security Policy will encompass a new role for the EU in the fields of peacekeeping and the prevention and management of international crises through the inclusion in the Treaty of the Petersberg Tasks. The Petersberg Tasks include humanitarian and rescue tasks and peacekeeping tasks. EU Member States who are not members of any military alliance including Ireland will be entitled to participate in such missions on a case by case basis, if they so wish. The question of what contribution Ireland can make will be considered in the context of this process, taking account of the voluntary nature of peacekeeping tasks, current overseas commitments and security requirements at home. Ireland joined Partnership for Peace (PfP) on 1 December 1999. Our proposed participation in PfP activities is set out in the Presentation Document which was presented to the NATO Secretariat upon signature by Ireland of the PfP Framework Document on 1 December 1999. In consultation with the NATO Secretariat, an Individual Partnership Programme will shortly be developed which will cover a two year period initially and which will set out the level and extent of proposed participation in such areas as co-operation in peacekeeping principles, doctrine, training and exercises and inter-operability in peacekeeping operations. This two year programme will be developed having regard to the State's own requirements in relation to the roles of the Defence Forces as set out in the White Paper and taking account of resource implications. I now turn to the sale of Army barracks.
The Government, on 15 July 1998, approved a programme of evacuation and sale of six Barracks which were considered surplus to military requirements. The barracks in question are located at Fermoy, Ballincollig, Naas, Kildare, Castleblayney and Clancy Barracks, Dublin. Five of the barracks have been vacated by the Defence Forces while the sixth - Clancy Barracks - will be vacated later this year. Fitzgerald Camp, Fermoy, is being sold to Cork County Council for economic development of the site in conjunction with the IDA. The agreed price is £767,000. The lands will be developed and marketed as a strategic industrial site to attract inward investment. This development will greatly assist in the continuing revitalisation of Fermoy and will enhance its potential for future industrial development. With regard to Ballincollig, the independent consultants appointed to draw up an Integrated Action Area Plan for the former Barracks, undertook a rigorous process of public consultation as part of their commission. The Integrated Plan for the property has been completed and provides for a wide range of community, amenity, residential and commercial uses in the future development of this substantial property. My Department has submitted the Integrated Plan to Cork County Council for consideration in the context of a variation to the existing Cork County Development Plan. The property will be put on the market following its adoption into the Cork County Development Plan.
As regards Devoy Barracks, Naas, agreement has been reached between my Department and Naas Urban District Council on the transfer of part of the property to the Council for local purposes. The balance of the property has been rezoned for housing in line with the Development Plan for Naas U.D.C., which was adopted on 29th May, 1999. Following a public tender process, a selling agent was recently appointed to undertake the sale of the property which will proceed as soon as possible.
The vacated Magee Barracks, Kildare, has been used to accommodate Kosovar refugees since May of last year. The arrangements in relation to the Kosovars will be reviewed in the near future. Provision is now also being made for the accommodation of asylum seekers at that site. I did not anticipate the problems that have arisen as far as the housing of asylum seekers is concerned. I appreciate the co-operation of the local community and the public representatives in Kildare, notwithstanding their disappointment, and mine, that we were unable to proceed with the Area Action Plan. However, there is a wider national obligation to the Kosovars and the asylum seekers. I intend to keep the matter under review and I will keep the local representatives informed. In relation to Castleblayney, it has been decided to sell the site to the North Eastern Health Board for £600,000. Pending completion of the legal and financial formalities, a caretaker's agreement has been completed between the North Eastern Health Board and my Department and the former barracks was handed over to the Board on 9th February 2000 on foot of this agreement. It is envisaged that the childcare project proposed by the Health Board for the site will provide for forty five permanent appointments and a sum in excess of £1 million will be invested on the provision of the necessary facilities. In addition, the annual revenue to the town is estimated to be in the region of £1.2 million. The proposed development of the site by the Health Board includes a gymnasium, an all-weather pitch and a swimming pool. I understand that these facilities will be made available to the local community when not in use for childcare purposes.
In total it is expected that in excess of £50 million will be realised from the sale of the properties. The monies raised will mainly be used on the provision of new accommodation and facilities for the Defence Forces. I wish to take this opportunity to update the committee in regard to hearing loss compensation claims. Deputies will already be well aware of the huge burden in terms of costs and resources that Army hearing loss litigation has been for my Department, the Defence Forces and the legal system. You will also be aware of my long standing intention to remove these claims from the Courts and to dispose of them for amounts of compensation which are fair to both the taxpayer and to plaintiffs. To date, over 15,000 claims have been received, of which approximately 5,600 claims have been dealt with at a total cost, including plaintiffs legal costs, of £112.5m. However, the average quantum of damages for which claims have been settling is now less that £8,000 per claim, reduced from an average of over £30,000 per claim in 1996. New claims are still being received at an average of about 60 per month.
I believe that since the judgement of the Supreme Court in the Hanley case which was delivered on 7 December, 1999, it is now possible to establish a mechanism whereby the 9,400 outstanding claims may be removed from the Courts. In order to establish such a mechanism, meetings have taken place on 3 February and 1 March 2000 between officials of my Department, the Chief State Solicitors Office and representatives of plaintiffs solicitors. These meetings were convened with the assistance of the Incorporated Law Society who also chaired the meetings. As a result of the meetings, it was agreed that Army hearing loss claims which were due to come before the High Court in Dublin during the Easter Court Term which commenced on 4 May, 2000 might be adjourned. This adjournment was granted by Mr Justice Johnson on 14 April 2000. Similar adjournments were also granted in Kilkenny, Limerick and Dundalk. The adjournment of court cases has provided the State with the opportunity of establishing a system on a pilot basis whereby offers of settlement can be made to plaintiffs solicitors based on the terms laid out in the Hanley Supreme Court judgement. If the exercise is successful, it will mean the relatively speedy disposal of claims with reduced levels of expenditure on legal costs. The progress of the pilot exercise will be the subject of a review by my Department, the Chief State Solicitor's Office and the representative group of plaintiffs solicitors in the very near future, following which I am hopeful that the pilot exercise can be extended. Finally, I turn to the very important area of Civil Defence which this year celebrates the 50th Anniversary of its foundation. A number of special events are planned to mark the occasion and a special allocation of £500,000 is included under subhead W of the Defence Estimate. Civil Defence is important for a number of reasons but to me a key reason is that it provides a unique opportunity for people to give voluntary service within their own communities. I wish to express my appreciation and that of the Government for the significant contribution which Civil Defence volunteers make to their local communities. As outlined in the White Paper the Government have decided that the Civil Defence mission should continue to facilitate, through the Local Authorities, Civil Defence responses for emergency relief and support to ensure the operation of vital services and the maintenance of public life and to provide other community supports as directed by the Government. Civil Defence will continue to focus its efforts on enhancing its capacity to respond to emergencies as a high-quality second line service while also facilitating community support activities. The voluntary ethos of the organisation will be preserved, the training given to civil defence members will continue to be revised and updated in line with best practice, and equipment and infrastructure needs will be addressed. Details of both the Defence and Army Pension Estimates have been circulated to members of the Committee. I do not propose, therefore, to make any further comment on individual subheads at this stage but I will be pleased to answer any queries and assist the Committee in any way I can in its consideration of these Estimates.