Several of the biggest Irish technology firms are benefiting from higher sales to the US and European defence industries as the prospect of war against Iraq increases.
The companies are providing a range of technologies and components that will enable US military forces to, among other things, fire Tomahawk cruise missiles and undertake simulation research for the US army's tank command.
ParthusCeva, Iona Technologies and SkillSoft all confirmed to The Irish Times yesterday they had signed recent deals with organisations closely connected to US or European defence agencies. Other firms, including Baltimore Securities, are also believed to be close to signing defence deals, following a huge increase in military spending by the US administration.
The disclosure comes as the Government released new figures yesterday which show it issued 64 military export licences last year to firms that sold military products made in the State. Export licences were issued to companies exporting to the US and a host of other states, including the Lebanon, Nigeria, Yugoslavia and Iran.
The type of goods which are exported under military licences include weapons, ammunition and a range of software that can be used in the defence industry.
The Department of Enterprise, Trade and Employment also issued hundreds of dual-use export licences during 2002 to firms which export components that could be used for either commercial or military uses. The names of the firms which are granted military or dual-use export licences are withheld by the Government due to "commercial sensitivities".
It is believed many of the biggest Irish software firms and some of the biggest multinationals based in the State, such as Analog Devices in Limerick, develop such "dual-use" products. Although the number of military export licences granted in 2002 increased to 64, up from 60 during 2001, a spokesman for the Tánaiste, Ms Harney, said it would be unwise to draw the conclusion that Irish military exports were increasing.
He said the number of export licences issued could be affected by a range of factors. The Department of Enterprise, Trade and Employment could not release figures detailing whether the value of military exports had increased over recent years, he added. But recent deals signed by some of the biggest Irish technology firms suggest the value of components exported for use in the defence sector is increasing.
Iona's chief executive, Mr Barry Morris, told The Irish Times this week that although the prospect of war with Iraq was a potential negative effect on confidence in an economic recovery, it had also created opportunities. "Typically in one quarter about 10 per cent of our business is in defence. But in our September quarter results this increased to 15 per cent, representing a significant increase in our defence business."
In October 2002, the US Senate approved a $355 billion military budget against the background of an attack on Iraq. Many analysts are predicting President Bush will ask Congress for $410 billion for the next fiscal year.
Iona set up a subsidiary last year to win contracts from the US Department of Defence. This firm was staffed by US citizens only so as to qualify for US defence clearance. Its software links disparate computer systems together and is used in a range of defence applications, including the firing mechanism of missiles and in simulations for the US tank command.
A British police officer was stabbed to death and four others were wounded yesterday in a "counter-terrorist" raid in Manchester linked to the recent discovery of ricin in London, police said. One officer was attacked and received multiple knife wounds to the chest, of which he later died. Three men were arrested in the operation.