The defence Estimates have risen as the military begin a major re-equipment programme with the acquisition of new ships, armoured vehicles and helicopters.
The Estimate for 2001 is more than £610 million, almost 20 per cent up on this year's figure of £518 million.
The Estimates include provision for £57 million, almost 10 per cent of the budget, for compensation payments to serving and retired military personnel claiming hearing damage.
Most of the additional expenditure next year is attributed to extra capital spending. The Estimate for defence equipment includes part-payment for 40 Mowag armoured personnel carriers (APCs). Their full contract price is over £40 million, and the first are due for delivery in January.
The Estimates also include over £17 million for aircraft. Next year the Air Corps begins a major re-equipment programme with the acquisition of new aircraft. The Department of Defence is considering the purchase of three medium-lift search-and-rescue (SAR) helicopters and possibly a further two troop-carrying helicopters.
Tenders from six companies for the helicopter contract are being considered.
The Naval Service is also to receive another new ship to upgrade its ageing fleet. Some £16.48 million is allocated for naval equipment.
The Defence Forces are also engaged in a major programme of refurbishing barracks and providing new buildings for the new equipment. A further £16 million is allocated to building costs.