Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I give the Deputy every assurance that I have great respect for the fantastic achievements in recent years made within the Department of Defence and the Defence Forces in the areas of modernisation, effecting change and effecting substantial cost savings, which are evident right across the board. The Department of Defence is a model for public service reform that could well be replicated in other Departments. A great deal has been achieved. In the short time I have been Minister, which is less than two years, we have had the reorganisation of the Defence Forces, moving from a three to a two battalion structure. We have had the closure of Army barracks with which we have dealt now, happily, and that will not be revisited. Four Army barracks have been closed. There is also the reorganisation of the Reserve Defence Force. Substantial efficiencies have been effected by all of the events that have happened in implementation. We have also had the very beneficial decision made many years ago that now applies whereby when the Defence Forces sell property owned by them the proceeds can be reinvested to provide proper resources.

I am very conscious of the reality that some members of the Defence Forces are resorting to supplementary welfare allowance to supplement their finances. It is important we acknowledge that basic line pay and military service allowance constitute core play in the Defence Forces.

The question of what other allowances might be considered to be part of core pay is a matter for discussion between the Department and representative associations for the Defence Forces. It is important to understand that the term "allowances" in the defence sector covers a variety of payment types that are different from each other. Some are intended to reimburse expenses and do not actually form part of remuneration at all. Some payments are made in recognition of particular technical or professional qualifications while other allowances recognise particularly onerous duties, whether at home or overseas, which fall outside the norms taken into account in setting basic pay, while also reflecting the fact that the Defence Forces do not receive overtime.

I assure the Deputy that I am very conscious of this issue and that, in the context of the public finances and the savings to be achieved, it is important that we engage and look constructively at savings that may be effected. I very much welcome the constructive engagement of the representative bodies. One key decision that was made was that the strength of the Defence Forces would be maintained at 9,500. The Government made the decision, at my request, in the lead-in to the 2012 budget. That decision was designed to ensure that we maintained the strength of the Defence Forces but maintaining the strength leads to certain consequences, namely that we must have the funding available to meet the basic and core pay requirements. Nevertheless, it is important that we constantly examine where savings can be effected. There is a remit from the Department of Public Expenditure and Reform to engage and constructive engagement is taking place. I do not want to say any more about that but I hope that we will, in the context of that engagement, be able to identify savings that can be implemented and applied without in any way undermining the effectiveness or the strength of the Defence Forces.

See this speech in context