€2.5 million have been allocated to the AFM to upgrade an Alouette III helicopter and an Islander fixed wing aircraft, the Prime Minister said today.

The service will also be taking delivery of four new patrol boats shortly, and will purchase a new aircraft next year.

Speaking at the passing out parade of recruits, Prime Minister Lawrence Gonzi thanked outgoing army commander Brigadier Carmelo Vassallo, who ends his long army career in the beginning of 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.

Dr Gonzi said Brig. Vassallo had vast and he hoped he would be able to uses his services in other sectors.

The Prime Minister also paid tribute to Gunner Matthew Psaila and his family. Gunner Psaila, who lost his life during army training earlier this year, was one of the recruits in a similar passing out parade a year ago.

Dr Gonzi said Gunner Psaila was a committed soldier.

The Prime Minister said the fact that the recruits had opted to serve the country through the tough and disciplined army life deserved the nation's admiration.