Smith seeks SSIA cash to boost navy

[Goldie fish]

http://www.irishexaminer.com/pport/w...aewFBADppk.asp

10/09/04
Smith seeks SSIA cash to boost navy

By Mary Dundon
DEFENCE MINISTER Michael Smith will be seeking a share of the €14 billion funds in the SSIA schemes to finance the expansion of the naval service — particularly more high-speed drug trafficking interception boats.

Mr Smith said the department's own funds, which have bankrolled major improvements in the naval service, had been well tapped and it was now time to explore new ways of funding.

He is seeking, in discussion with the Department of Finance, to have some of the proceeds of the SSIA funds, due to be redeemed in 2006/2007, invested in new Defence Bonds.

"A lot of people who invested in this scheme will not want to cash in their savings and will be looking for future similar attractive investment options that will give them an equal return and the Defence Bonds would give them that," the minister said.




These bonds would first be used to finance the purchase of a €30m naval vessel due to come on stream in 2007, more modern air-sea rescue helicopters and high-speed drug interception boats.

The minister made the announcement at the commissioning of 13 new naval officers at the naval base in Haulbowline, Co Cork, yesterday.

The 11 men and two women were the largest class of naval cadets to be commissioned at Haulbowline.

The award for best overall cadet was presented to Ensign John Minehane from Bantry by Colonel John Ryan on behalf of ARCO the Association of Retired Commissioned Officers.

The minister said: "Today's ceremony is a culmination of two years of hard work and dedication by these young people and the invaluable experience they gained on their Baltic Sea trip will stand to them in their future careers."

All the new naval officers will continue their training at the new National Maritime College at Ringaskiddy, which is due to open shortly.

It will cater for 750 Irish and internationals, and is a public-private partnership between the Departments of Defence and Education, the Cork Institute of Technology, the naval service and private sector.

Also present at the commissioning ceremony in Haulbowline yesterday were: Chief of Staff Jim Sreenan and Flag Officer Commanding Naval Service Commodore Frank Lynch.

Six of the other new naval cadets commissioned yesterday were from Cork.

These included: Sean Linehane; Gavin McCarthy, Gillian Power, James Harding, Donnacha Cahalane and James Cotter.

And the other new naval officers are: Andrew Bugler, Scarriff, Co Clare; Elizabeth Barrett, Skerries, Co Dublin; Alan Flynn, Tuam, Co Galway; John O'Riordan, Kilkenny; Robert Lynch; Leixlip, Co Kildare and James Walden, Bonmahon, Co Waterford.

[sledger]

SSIA investors advised to put money into defence assets

SSIA investors advised to put money into defence assets

Irish Independent
10/09/2004

DEFENCE Minister Michael Smith has proposed that investors use monies from their multi-billion euro SSIA (Special Savings Investment Account) accounts to fund key defence assets, such as a new €25m vessel for the Naval Service.
Under an adapted form of Public-Private Partnership (PPP), SSIA holders could provide a state-of-the-art vessel for the Naval Service - and reap lease payment benefits over a number of years, as well as the future return of the ship to private ownership.
Mr Smith - speaking at Haulbowline Naval Base in Cork, in what could be one of his last major functions as minister - said that imaginative new avenues of funding major defence assets need to be examined, given the Exchequer's funding priorities for health and education.
"We've stretched ourselves as much as we can in terms of getting the resources for the LE Niamh and the LE Roisin.
"I'm now planning for the next phase of development and I would hope we would have our next new ship by 2007," he explained.
"It will take about two years to build and the planning and tendering process also has to be taken into account."
Mr Smith said that until now, he had tried to put as little pressure as possible on the Exchequer.
Mr Smith said that after the sale of lands owned by his department, and cash injections from the Exchequer, new forms of financing defence spending must be examined. While €100m has been garnered from the sale of defence force land assets, major property sales in the future are now unlikely.
"As far as the new investment in the ship is concerned, I have to look at new ways of doing it. One way I'm considering is that revenues which will accrue from the SSIA schemes could be invested in a project of this kind," he explained.
The British Royal Navy has, for a number of years, used a similar bond-type scheme to fund its ships. "Obviously it (the scheme) has to be attractive to the investors - but it's a safe bet as far as I'm concerned.
"This is one of the ideas I have and we're going to explore it in the context of this particular development.
"We've had some experience of public-private-partnerships with some of our road developments. This would be something a little bit similar."
The minister stressed that such a proposal would, ultimately, require the sanction of the Department of Finance.
However, he argued that, by taking SSIA money and diverting it into long-term investment products, it would also assist in avoiding any threat of over-heating the economy through the immediate spending of the cash windfall.
Minister Smith added that ongoing investment is now vital in Ireland's Defence Forces - despite the Army receiving new MOWAG armoured personnel carriers, the Navy receiving two new ships and the Air Corps receiving new trainer-light strike aircraft.
That is matched by major investment in Defence Force buildings and accommodation complexes.
"We have in the last number of years, since the White Paper on Defence was introduced, set about a major refurbishment programme - and it's not a day too early."

Ralph Riegel

[hptmurphy]

Why buy ships at all and operate the lease back option that the RN have put into place with the new river Class PVs. Woder what relation Young Minehane is to Minehanes pub in bantry......Also the MEO Mario Minehane....

[ex pat 007]

Re: SSIA investors advised to put money into defence assets

Originally posted by sledger

Minister Smith added that ongoing investment is now vital in Ireland's Defence Forces - despite the Army receiving new MOWAG armoured personnel carriers, the Navy receiving two new ships and the Air Corps receiving new trainer-light strike aircraft.
That is matched by major investment in Defence Force buildings and accommodation complexes.

Ralph Riegel

Is Ralph implying that the DF has no need for any more expensive equipment?Why 80 APCs,
2 "war"ships , a couple of prop driven trainers and some new buildings are enough for Irelands defence!!!

[Goldie fish]

he is media..they are all peacnik crusties

[Big Al]

http://www.unison.ie/irish_independe...issue_id=11409

MICHAEL Smith's proposed SSIA defence bonds are "as likely as flying pigs," a consumer watchdog has warned.

Consumer watchdog Eddie Hobbs strongly attacked the proposal that saving scheme funds be used to bankroll the Army and Naval Service and said there was not a chance of it working out.

Mr Smith announced that his Department's own funds had dried up and he proposed using new sources of cash, including SSIA funds, to put money into the forces. He is currently in negotiations with the Department of Finance with a view to set up new bonds to be used mainly to buy drug-trafficking interception boats.

Said Mr Hobbs, finance spokesperson for the Consumers' Association: "The poor fellow - to think we can all help him to invest in armaments!

"It's not going to happen. You could say I am talking to a pig farmer to propose we invest in flying pigs.

"I think he needs to change his tablets. People are not looking at the Army in the Curragh and thinking 'I'd love to give one of those lads a new armoured car. Or how about a helicopter so I could see it once in a while on TV?'"

Mr Hobbs said that other SSIA bonds, including school bonds as previously advocated by Noel Dempsey, could work.

"SSIA savers could take out bonds on a school in their area that was run down, for example if the toilets are rotten, and it needed funding.

"No one is going to invest in something that buys arms," he added. "It is different if you are asking them to invest in their local school because they are investing in their own children's education."

The minister made his announcement about the €14bn SSIA scheme funds at the commissioning of 13 new naval officers.

Anne-Marie Walsh

[andy]

AnDefence bonds likely as flying pigs, says expertne-Marie Walsh

Defence bonds likely as flying pigs, says expert
Anne-Marie Walsh
The Irish Independent
11-September-2004
***************************

MICHAEL Smith's proposed SSIA defence bonds are "as likely as flying pigs," a consumer watchdog has warned.

Consumer watchdog Eddie Hobbs strongly attacked the proposal that saving scheme funds be used to bankroll the Army and Naval Service and said there was not a chance of it working out.

Mr Smith announced that his Department's own funds had dried up and he proposed using new sources of cash, including SSIA funds, to put money into the forces. He is currently in negotiations with the Department of Finance with a view to set up new bonds to be used mainly to buy drug-trafficking interception boats.

Said Mr Hobbs, finance spokesperson for the Consumers' Association: "The poor fellow - to think we can all help him to invest in armaments!

"It's not going to happen. You could say I am talking to a pig farmer to propose we invest in flying pigs.

"I think he needs to change his tablets. People are not looking at the Army in the Curragh and thinking 'I'd love to give one of those lads a new armoured car. Or how about a helicopter so I could see it once in a while on TV?'"

Mr Hobbs said that other SSIA bonds, including school bonds as previously advocated by Noel Dempsey, could work.

"SSIA savers could take out bonds on a school in their area that was run down, for example if the toilets are rotten, and it needed funding.

"No one is going to invest in something that buys arms," he added. "It is different if you are asking them to invest in their local school because they are investing in their own children's education."

The minister made his announcement about the €14bn SSIA scheme funds at the commissioning of 13 new naval officers.

[Groundhog]

Who is Ann-Marie Walsh and what is she an expert in? The implication from Eddie Hobbs is that the investors are giving their money to the DF. Obviously any investor buying Defence Bonds or Education Bonds or whatever will expect a return on his money. Therefore for the neutral investor, and I suspect that most SSIA investors will not have children attending a run-down NS, the bond with the greatest return will be the most attractive. The question is why is Mr Hobbs panicking?

[mutter nutter (again)]

Originally posted by Groundhog
Who is Ann-Marie Walsh and what is she an expert in? The implication from Eddie Hobbs is that the investors are giving their money to the DF. Obviously any investor buying Defence Bonds or Education Bonds or whatever will expect a return on his money. Therefore for the neutral investor, and I suspect that most SSIA investors will not have children attending a run-down NS, the bond with the greatest return will be the most attractive. The question is why is Mr Hobbs panicking?

I thought the same thing, anyone investing in the SSIA's will want a return, and they really don't care where it come's from,whether an oil well sunk in the middle East or a Defence bond, all they want is the return

[Goldie fish]

Am I the only one who thinks Mr Hobbs sounds a tad crusty?

"No one is going to invest in something that buys arms,"

Indeed....

[sledger]

Mr. Hobbs seems to like to make broad sweeping statements as quoted by Goldie above, and yes I agree he seems to be very crusty!

I for one would be interested in investing in such a scheme, anyone else?

[Groundhog]

I for one would be interested in investing in such a scheme, anyone else?


Depends on the return.

[hedgehog]

I for one would be interested in investing in such a scheme, anyone else?


I may as well, seeing as I have bought most of my own gear I may as well have a share in my barracks and maybe an auld ship or 2

[Goldie fish]

At least you would know where your money is going... Who knows where the banks and pension funds are sticking your cash that they have..

[ForegoneReality]

Originally posted by Goldie fish
At least you would know where your money is going... Who knows where the banks and pension funds are sticking your cash that they have..

Surely in things we'll never be 'privaledged' enough to see.

:D