The solution proposed in the alleged Ammunition Act is intended to let for the creation of a mechanics for the financing of large-caliber ammunition by the national arms industry. This is intended to dramatically increase national production possible in this strategical area of the arms industry. I would stress that this law only applies to financial engineering, that is to say, the establishment of sources and methods of financing investments expanding the production possible of ammunition, in Poland and not outside our territory.
Government preparation of this very crucial bill and then Parliament's adoption, is linked to the geopolitical situation and is the consequence of the threat of a possible “disappointment” of the conflict that is taking place behind our east border. The context of the adoption of this law is highly important. There is inactive a hazard that the aggression of the Russian Federation to Ukraine may endanger Poland and another countries of our region. Poland, therefore, as a state lying on the east flank of NATO, must think peculiarly about its security. The proposal to finance the arms investments which the legislature has voted on is 1 of the elements of reasoning about the safety of Poles and Poles. This is besides an example of how we learn from the war in Ukraine.
This is serious. According to various reports, Russia can fire up to 60,000 rounds of ammunition a day towards Ukraine. Meanwhile, Ukraine, armed by many countries, is able to respond to Russia's aggression, utilizing only about 10,000 rounds of ammunition a day. This shows how large the disparities in the ongoing armed conflict are, and it besides makes us aware of the tremendous possible that the state must have in terms of its own ammunition production.
For years, European countries, including Poland, have lived in the belief that peace on our continent is not threatened. They thought about development, about science, about building the prosperity of their own nations. They did not live the desire for conflict and war as Russia did. Therefore, there was no reason to make a large stock of ammunition. In the current situation, Europe, including Poland, must take urgent but liable action to rapidly increase its defence capabilities. Own manufacturing ammunition is 1 of the foundations of reasoning about safety. It is not adequate to buy equipment or ammunition abroad. The experience of the pandemic that broke out in 2020 shows how rapidly supply chains could break and how painful the consequences are. Therefore, Poland must do everything to be self-sufficient in the production of a large part of its armed forces, including large-caliber ammunition, without which no military has the chance to effectively defend itself against aggression.
The Act in question creates a mechanics for financing the production of large caliber ammunition. This is to be done by transferring funds to the Capital Investment Fund to recapitalisation companies liable for manufacturing ammunition in Poland. What is very crucial – it will be funds supporting only those plants that have production lines in our country. The Capital Investment Fund will receive about PLN 3 billion for this purpose. With nearly 2 billion coming from the Ministry of Defence budget. The remainder is to be transferred in the form of fiscal securities held by the Government strategical Reserve Agency.
In simple terms, the money that the FIK will have will be utilized to get or embrace by the Treasury – represented by the Minister of State Assets – shares and shares in individual ammunition companies. This will enable the Treasury to influence the kind and volume of 155 mm and 120 mm ammunition, depending on current needs.
Experts estimation that within 3 years the capacity to produce 155 mm caliber ammunition will increase to around 150 000 units per year. In the case of 120 mm caliber ammunition – up to 70 1000 pieces per year. I will remind you that, as the Ministry of State Acts states, the current production capacity of the Polish Armed Forces Group, as far as 155 mm is concerned, is 5 times smaller and is only about 30 1000 units per year.
To date, the capabilities of the national defence manufacture have not been developed, among others, and due to the fact that ammunition production companies have not received public procurement. The Deputy Minister of State Assets informed Senators that for 8 years past the Ministry of National Defence ordered only 42 000 pieces of specified ammunition. That's amazing! Today, therefore, we urgently request to increase and make these capabilities. due to the geopolitical situation, the threat from Russia, but besides due to commitments to our allies. These say that European countries should have a reserve of 1 million artillery ammunition combined.
I am convinced that the solutions adopted in the Act will become an impulse to build fresh and make existing ammunition production lines in Polish plants.
