Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

With regard to defence spending, Government policy is defined within the parameters of our national budgetary process and the role of Dáil Éireann. Within the European Union, it is accepted that defence and security is a national competence, including national spending on defence and security. We alone continue to decide on defence investment and deployment of our Defence Forces.

As part of Ireland's participation in Permanent Structured Cooperation, PESCO, which we joined in December 2017, Ireland has committed to increase our defence budgets regularly in real terms.

It should be noted that "regularly" does not mean "annually" but in the medium term. The allocations for defence announced in budget 2019 mean that Ireland's defence expenditure will increase in real terms in the coming three years.

Joining PESCO does not involve an additional cost to the Exchequer. Additional costs may arise in respect of participation in specific PESCO projects similar to the case where the Defence Forces participate in European Defence Agency projects. The projects where Ireland has confirmed our participation relate to the ongoing development of Defence Forces' capabilities for peace support and crisis management operations. Costs associated with participation in these projects will be incurred in the normal course and will, therefore, be met from within the defence Vote.

Similar to other sectors in the public service, the pay of Permanent Defence Force personnel was reduced as one of the measures to assist in stabilising the national finances during the financial crisis. The recovery in the economy has provided the fiscal resources to provide for a fair and sustainable recovery in public service pay scales. Pay is being restored for members of the Defence Forces and other public servants in accordance with public sector pay agreements. The focus of the increases is weighted in favour of those on lower pay. Members of the Permanent Defence Force have received the pay increases due under the Lansdowne Road agreement. In addition, in 2017, following negotiations with PDFORRA, improved pay scales for general service recruits and privates who joined the Permanent Defence Force after 1 January 2013 were implemented.

In 2016 the Government established the Public Service Pay Commission to provide objective advice for it on public service pay policy. Following the publication of the Public Service Pay Commission's report in May 2017, the Government initiated negotiations on an extension to the Lansdowne Road agreement. The public service stability agreement 2018 to 2020 provides for increases in pay, ranging from 6.2% to 7.4%, over the lifetime of the agreement. The focus of the increases is weighted in favour of those on lower pay. The increases due from 1 January and 1 October 2018 have been paid to Permanent Defence Force personnel. Further increases in pay are scheduled for 2019 and 2020.

Additional information not given on the floor of the House.

By the end of the current public service pay agreement the pay of all public servants, including members of the Defence Forces, earning under €70,000 per annum will have been restored to pre-FEMPI legislation levels. The restoration of the 5% reduction in allowances cut under the FEMPI legislation is also scheduled in the agreement. New entrants who joined the Defence Forces since 2011 will also benefit from the measures recently announced on interventions at points 4 and 8 of the relevant pay scales for all such new entrants to the public service. This measure, should it be accepted by the Permanent Defence Force representative associations, will be effective from 1 March 2019.

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