As you are aware the Government, on the 15th July, 1998, approved a programme of evacuation and sale of six barracks which were considered surplus to military requirements. This decision is part of the relocation, refurbishment and re-equipment of the Defence Forces, as recommended in the context of the Price Waterhouse Report regarding the rationalisation of military institutions generally. The Government remains fully committed to this important programme.

 It is expected that well over £50 million will be raised from the sale of the six barracks and this revenue will be invested in the redevelopment of other military installations and new equipment.

 The recent closure of barracks has freed up important sites in the towns concerned. Plans for important new community, health, industrial and housing initiatives are in progress. With the increasing demand for social housing and related programmes and the Government's new decentralisation initiative, it is quite likely that freeing up military locations for alternative uses would assist these Government programmes.

 EQUIPMENT

It is Government policy to ensure that the Defence Forces are adequately equipped to undertake the roles assigned to them. Establishing realistic equipment requirements and priorities for procurement forms a major element of strategic planning activities within the Department of Defence and the Defence Forces. The objective is to acquire, maintain and manage equipment, weapons and ammunition for the Defence Forces at the appropriate level of operational readiness in a cost effective manner. The strategic focus of the investment programme for the period 2000-2010 is the acquisition of a broad range of equipment in order to achieve a balanced increase in operational capacity throughout the Defence Forces. It will be necessary to prioritise and reconcile the equipment requirements for the Army, the Air Corps, the Naval Service and the Reserve Defence Force within the total resources available. Basic to the plan is a multi-annual budgetary strategy which is vital to achieving value for money.

 CLANCY BARRACKS

Clancy Barracks, formerly known as Islandbridge Barracks, dates from about 1857. It is sited on the south bank of the river Liffey and close to one of the most westerly of Dublin city's bridges, Islandbridge, formerly known as Sarah Bridge. The barracks has had a long association with artillery, cavalry, and ordnance.

 The barracks was taken over by the Irish Army on the 15th December 1922 when a rifle company commanded by Captain Condon was sent to take over Islandbridge Barracks. In that Company was Captain Robert Fitzgerald who was the first Officer Commanding.

 It was renamed Clancy Barracks in 1942 after Peader Clancy, a County Clare man killed during the War of Independence in 1920.

 The barracks has been associated with various military events including the Crimean War, the Boer War, World War 1, and the 1916 rising.

 SALE OF CLANCY BARRACKS

It was accepted at the time of the decision to dispose of the six barracks that the relocation of the Units currently at Clancy Barracks to other Dublin Barracks and the Curragh would take some time. It is anticipated that this process will now be completed before the end of this year.

 On the 16th July, 1998, following on the Government decision Dublin Corporation were requested that the zoning designation on Clancy be changed to provide for housing and or commercial development at this location. On the 6th July, 1999, Dublin Corporation confirmed that the land was zoned Z1 - 'to protect, to provide and improve residential amenities'.

In the interim on the 16th November, 1998, Dublin Corporation requested that they be given first opportunity to acquire the property.

 On the 16th June, 1999, at a meeting with Dublin Corporation, the Department of the Environment and Local Government and my Department, the Corporation sought clarification regarding the date of closure of the Barracks, the area involved, and expressed a wish to have the property made available to relieve the housing crisis in the Dublin area. They indicated that they would be prepared to pay full market value and requested permission to inspect the Barracks. The Barracks was inspected by the Corporation on the 1st July, 1999.

 Further visits to the property were undertaken on the 27th July and 22nd October, 1999, and on the 1st November, 1999, at a meeting between my Department and the Corporation, it was indicated by the Corporation that they were anxious to acquire the property for a mixture of affordable/social housing. They indicated that the Barracks contained a number of listed buildings which would pose architectural problems in matching up the old with the new. They requested further plans outlining internal and external services, including drains, sewerage etc. These were supplied on the 8th December, 1999.

 On 8th February, 2000, the Corporation informed my Department that their Planning Officer had indicated that a large number of buildings on the site were of architectural merit and may be required to be retained on redevelopment. The Corporation notified the Valuation Office of their report from their Deputy Planning Officer.

 On 24th March, 2000 the Valuation Office valued the property to be in the region of £40 million. It must, however, be borne in mind that the actual price to be realised will be determined by the market.

 On the 14th April, 2000, the Corporation were informed of the value in respect of Clancy. The Corporation indicated that it would consider the valuation and discuss its implications with the Department of the Environment.

 On the 7th July, 2000 the Department of the Environment and Local Government indicated that it was the Corporation's view that the acquisition of the Barracks for redevelopment by them to provide social housing did not offer an attractive proposition because of the limited capacity to provide low rise social housing. It was their view that the pubic interest would probably be best served from a housing and planning point of view by my Department offering the property for sale on the open market, having regard to the very significant range of conservation challenges.

On the 10th July, 2000, in response, my Department noted the Corporation's views and informed them that I now intended to dispose of the property on the open market as soon as possible.

On the 31st July, 2000, Dublin Corporation advised my Department that the optimal solution would be for the land to be sold on the open market subject to a brief to be agreed between the Department and the Planning Authority. The brief could cover key requirements such as appropriate mix of uses and the requirement to yield 20% social and affordable housing under Part V of the Local Government (Planning and Development) Act, 2000.

 At a meeting on 9th April, 2001, between the Department of Defence, the Department of the Environment and the Corporation, it was indicated that the site offered more potential for a private developer who could have a mix of developments on the site rather than have it purchased by the Corporation for social housing.

 Following a tender competition my Department appointed selling agents Hamilton Osborne King, to offer the barracks of 13.65 acres for sale by public tender on 14th June, 2001. In my Department's instructions to the Selling Agents it was agreed that a Planning Consultant's Report should be commissioned for the site having regard to its architectural merit, conservation challenges and planning requirements.

I wish to add that my Department, the Department of Environment and Local Government continue to liaise on all land disposals to ensure that as each disposal arises the relevant Local Authority is made aware of the sale and examines the land for suitability for housing development. In this regard, Naas UDC has acquired the lands at Devoy Barracks in Naas which will include future housing development. Also, an Integrated Action Area Plan for Murphy Barracks in Ballincollig is completed and housing development will be a significant part of this development. In addition, my Department will be discussing the future potential of Gormanston lands with the relevant local authority.