I thank the Minister of State, Deputy Dooley, for coming to the House to take this matter, which relates to the participation framework in the defence procurement process. Senator Ahearn has four minutes to set out his stall.

I welcome the Minister of State. I also welcome the opportunity to raise the issue of defence and security procurement, in particular the importance of ensuring meaningful local participation as Ireland increases its investment in this area. It is clear that public understanding of Ireland's defence and security environment is evolving. There is growing awareness of our vulnerabilities, our responsibilities within the European Union and the reality that decades of underinvestment in defence capability must now be addressed. As this expenditure increases, it must be seen as an opportunity not only to strengthen sovereign capability but to deliver tangible economic and regional benefits across the State.

Ireland already has a growing number of indigenous SMEs operating in these areas. There is a clear need to strengthen local participation within defence procurement policy in a manner fully consistent with EU procurement rules. We must ensure Irish firms are engaged early in capability planning and delivery whether through maintenance, training, logistics, research and development, systems integration or long-term life cycle support. Early engagement with domestic industry delivers three clear benefits. First, it strengthens national resilience by ensuring critical knowledge, skills and support capacity exist within the State. Second, it delivers better long-term value for the taxpayer by reducing life cycle costs and dependency risks. Third, it de-risks the delivery of major programmes at a time when the Defence Forces increasingly require private sector expertise to support complex systems. As these negotiations progress, there must be clarity on how industrial participation measures are being embedded and how Irish SMEs and third level institutions can play a meaningful role in these programmes. This approach is also fully aligned with Ireland's obligation to contribute to the European defence technology and industrial base. Bringing non-traditional dual-use Irish companies into European defence supply chains strengthens not only Ireland's position but Europe's collective security and resilience.

There is a strong case for ensuring that Enterprise Ireland supports are aligned with the specific needs of defence and security-related innovation, including support for research and development collaboration with the Defence Forces and European partners. With the right alignment, Irish firms can scale, develop, export potential and contribute more effectively to national security objectives. We are increasing defence spending. We are already committed to buying major capabilities. The question is why would we not ensure Irish companies and our research and innovation sector benefit from that investment. We should be making absolutely sure that a proportion of this expenditure remains within the Irish economy, supporting Irish businesses, skills and local communities. That can only be achieved through a clear and dedicated local participation policy framework.

We have heard positive statements from the Government on the floor of the Dáil and in the media. The Tánaiste stated:

While Ireland does not have a traditional defence industry ... we do have industry that could have a defence application ... Irish industry should be in a position to take advantage of the significant growth opportunities in this sector.

I strongly encourage the Minister of State and the Government to do two things. First, formally introduce local participation requirements in defence procurement - make it a requirement that Irish SMEs must be involved. Second, publish a clear policy framework setting out how this will be delivered. Doing so will strengthen our Defence Forces, support Irish enterprises, deliver better value for the taxpayer and ensure that increased defence investment builds lasting national resilience.

I am responding on behalf of the Minister for Defence who unfortunately cannot be present today. She sends her apologies.

On the Minister's behalf, I welcome the opportunity to respond to Senator Ahearn and thank him for raising this important matter. I know of his interest generally in such affairs. He has taken a great interest in and support for Ukraine after the Russian invasion. If I am not mistaken, I think he was in Kyiv and showed a great understanding of that particular matter. It does not surprise me that he is raising a matter like this. The importance of ensuring a strong local participation framework within Ireland's defence procurement process is timely. As the Senator is well aware of, the programme for Government committed to strengthening Ireland's defence by increasing investment in our capabilities and thereby safeguarding our citizens.

The 2026 budget demonstrated that commitment in the most practical manner by allocating €1.49 billion to defence expenditure. In addition, the national development plan sets out a longer term capital investment in defence totalling €1.7 billion from 2026 to 2030. This significant funding increase reflects the Government's commitment to continue to increase investment in our Defence Forces. It will enable targeted progression on key elements of Government commitments from the report of the Commission on the Defence Forces. As recently outlined by the Minister, Deputy McEntee, the report aims to speed up the modernisation of the Defence Forces and improve defence capabilities across land, air, maritime and cyber domains.

The potential for increased local participation in Ireland's defence procurement process is a timely issue, particularly in the context of a changing security environment, the increased investment in defence capability and the continuing need to ensure value for money for the State. With that in mind, it is important to emphasise that defence procurement is not simply about the acquisition of equipment. It is about the delivery of long term, sustainable capabilities for the Defence Forces. For this reason, the Department has adopted a whole-of-life cycle approach to procurement, encompassing design, acquisition, maintenance and upgrade. Local participation has the potential to play a significant role across each of these phases.

As an island nation, Ireland must also consider the practical and strategic implications of overseas dependencies. Transporting platforms or systems for critical components across the Continent for routine maintenance, repair or upgrades can introduce unnecessary costs, extended downtime and operational risks. This is particularly relevant for naval and air assets where availability and responsiveness are critically essential. Where it is feasible, the component with EU and international procurement obligations, local or regional maintenance and support arrangements can specifically reduce turnaround times and improve operational resilience.

A sustainable procurement model also supports the development of indigenous skills, expertise and industrial capacity. By embedding local participation requirements such as in-country maintenance, training, technical support or supply chain involvement, the State can help foster specialist eco-systems around key defence assets. Over time, this builds institutional knowledge, reduces reliance on external providers and enhances sovereign capability in critical areas.

Furthermore, local participation contributes to broader Government objectives, including regional development, high-value employment and skills retention, particularly in engineering, technology and advance manufacturing. These outcomes align with the whole-of-government approach to resilience and economic sustainability, while remaining consistent with our policy of military neutrality.

The Minister, Deputy McEntee, is conscious that any such framework must be proportionate, legally robust and deliver clear value for money. It must also balance openness and competition with long-term strategic benefit. Work is ongoing to ensure that future defence procurement fully considers life-cycle costs, sustainability and opportunities for meaningful local participation.

In light of ongoing geographical tensions and the lessons learned from Covid-19, supply chain resilience and security of supply have become increasingly important in the context of national security. With that in mind, the Minister will look to ensure an appropriate amount of diversification among suppliers to ensure a resilient, efficient and secure supply chain.

A well-designed local participation framework is both pragmatic and beneficial. It strengthens defence capabilities, improves availability, supports resilience and ensures the investment in defence delivers lasting benefits for the State and Irish society as a whole.

I thank the Minister of State, Deputy Dooley, for his comments. Like me, he has visited Ukraine many times and has a keen interest in the country. I welcome the line from the Minister, Deputy McEntee, that a well-designed local participation framework is both pragmatic and beneficial to Ireland and Irish companies.

This is common practice in other EU states. Spain requires significant industrial participation in defence contracts. Finland mandates industrial co-operation for large procurements. Denmark links industrial co-operation obligations to contract value. Germany embeds domestic industry involvement in major programmes. This happens right across the European Union. We would not be an outlier. What we are essentially saying is that the increased investment in defence should remain in Ireland.

Here is a simple analogy that the Minister of State will understand well. There are sports capital grants coming out some time this year. I hope some Tipperary applicants will be successful, including my local GAA club and the Minister of State's in Clare. If they are successful, we want local builders to get the jobs so the money stays local. It is no different in defence spending. If money is being spent, it should be spent in Ireland.

The Senator has rightly identified the positive that can come from this. The Minister outlined previously that her priority is to ensure that the operational capability of the Defence Forces is maintained and developed. This will enable the Defence Forces to carry out its roles as assigned by Government. In addition, the Government is going to provide for the development of a full spectrum of defence capabilities that will bring Ireland in line with similar sized European countries, as the Senator has identified.

Over the coming years, substantial expenditure will be directed towards infrastructure development, capability enhancement and technological innovation. While these investments will enhance Defence Forces capabilities, they will also have the potential to unlock opportunities for Irish industry and create pathways for SMEs operating in the dual use area to grow. As the Senator is aware, Ireland has a strong and highly innovative SME base, no more so than in light engineering, which is very much part of the local economy in the Senator's county, Tipperary, with many firms active in advance technologies relevant to defence and security.

The continued structured engagement with these enterprises will broaden co-operation, support innovation and strengthen the domestic contribution to Ireland's defence capabilities. By fostering that collaboration with the Defences Forces, industry and our European partners, the State can ensure that the increased investment in defence delivers lasting benefits, both in terms of operational readiness and, importantly, as the Senator keeps emphasising, the wider economic resilience of those communities.

I propose that we suspend as the Minister of State, Deputy Buttimer, is in the Dáil. Is that agreed? Agreed.