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Statement by the Minister for Defence, Mr. Tony Killeen, T.D., on Defence Budget 2011

“In 2011 the Department of Defence and the Defence Forces, like all areas of the public service, will operate on a reduced budget. The gross allocation in 2011 for Defence and Army Pensions combined is €933m, an overall reduction of 4% on the 2010 allocation. Defence spending at €725m (including capital spending) will be down by €30m (4%) on the 2010 Estimate. The provision for Army Pensions (Vote 37) for 2011 is €208m, which is a non-discretionary expenditure.
Vote 36 (Defence) and 37 (Army Pensions)
Gross Expenditure
2010 Budget Allocation
2011 Budget Allocation
Difference
(Defence and Army Pensions)
€m
€m
€m
- Current
958.3
921.4
36.9
- Capital
15.6
12.0
3.6
- Total
973.9
933.4
40.5

The expenditure reductions will be delivered through the reduction in participation in overseas peacekeeping, particularly the withdrawal from Chad and the reductions in numbers serving in Kosovo and Bosnia- Herzegovina. Savings will also be achieved through the postponement of expenditure on equipment and capital works across the Defence Forces.

There are currently 2 aircrafts available for the Ministerial Air Transport Service. The Gulfstream IV aircraft is in service for almost 20 years and no provision has been made in the Estimates for a replacement or for any major structural repair. The Learjet aircraft will continue in operation.

While there have been reductions in the overall Defence budget, steady investment since 2000 means that the Defence Forces are well placed in addressing the challenges for 2011 and the adjustments required under the National Recovery Plan.

The procurement of two new naval vessels will continue within the reduced allocation for Defence spending.

All of the main savings indentified in the Special Group on Public Service Numbers and Expenditure Programmes have already been implemented or alternative savings identified.”

“The priority in the coming year will be on maintaining the capability of the Defence Forces to deliver effective services across all of the roles assigned by Government.

Ireland remains open to participation in peace keeping operations with such participation reflecting the reduced budgetary resources. The Defence Forces retain the capacity to deploy overseas. No decisions have been made by the Government in relation to new peace keeping operations.” added Minister Killeen.

ENDS

7th December 2010

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