An unpublished Government review recommends a £235 million investment in Naval Service and Air Corps equipment over the next decade, but says the military wings will have to become more efficient and commercially driven.
Otherwise, key functions such as fisheries protection and air-sea rescue could be contracted out to private bidders, the consultancy review by Price Waterhouse for the Efficiency Audit Group warns.
The review, which has been seen by The Irish Times, also recommends an increase in Naval Service staff, and a 10 per cent cut in Air Corps numbers.
It also recommends greater independence for the Navy and Air Corps from the Army - including separate budgetary control and relocation of Naval Service and Air Corps headquarters from Dublin to Haulbowline and Baldonnel aerodrome respectively.
Neither of the defence wings can continue to function without re-equipment, the review says. It believes that the Naval Service requires at least eight ships to meet fishery protection requirements demanded by the Department of the Marine and Natural Resources.
The "multi-tasking" approach towards fishery protection, search and rescue, drug interdiction and pollution control is still the most effective, it says - effectively supporting the case made by both the Naval Service and Air Corps that both have a primary service role.
An eighth ship is already on order at a cost of £20 million for delivery by September of next year. However, the LE Deirdre, the oldest in the seven-ship fleet, will be due for decommissioning by the time it arrives.
The consultants recommend complete fleet replacement at a cost of £195 million over a decade.
The consultants also recommend an increase in Naval Service staff to 1,144, with additional personnel for the eighth ship depending on final agreement on crew complement. Purchase of a tug for salvage, diving support and pollution control is also mooted.
A cut in Air Corps numbers to 930 should be concentrated at engineering/maintenance levels, the review says. It recommends purchasing four medium-lift helicopters to enable the Air Corps to bid for search and rescue - currently, medium-lift cover is provided on contract to the State at an annual cost of £4.5 million, with no assets accruing in terms of equipment.
The review also recommends replacement of the existing helicopter and Cessna fleet with smaller numbers of more appropriate aircraft, and warns that the current Air Corps fleet cannot provide the required back-up to the Garda Siochana's air wing when there is downtime or excess demand on the force's existing Squirrel and Defender aircraft.
The review, which was presented to the Efficiency Audit Group last February, is due to be considered by Cabinet shortly.
