The Armed Forces of Malta have been allocated €2.5 million to upgrade an Alouette III helicopter and an Islander fixed wing aircraft, Prime Minister Law-rence Gonzi said during the passing out parade of recruits yesterday.

The AFM is also waiting for four brand new patrol boats to be delivered from a shipyard in Australia, and is due to buy a new aircraft next year.

Dr Gonzi thanked outgoing army commander, Brigadier Car-melo Vassallo, who retires early next year.

"I thank you for your service to the army over the years. Under your leadership, the army made great progress in its modernisation. The army we have today owes most of its successes to you," he said.

He added that Brigadier Vassallo had a wealth of experience which he hoped he would apply to other sectors.

The Prime Minister also paid tribute to Gunner Matthew Psaila, who lost his life during army training earlier this year. Gunner Psaila was involved in a passing out parade only a year ago.

Dr Gonzi added that recruits should be admired for choosing to serve their country through army life, which is tough and disciplined.