Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I am delighted to have the opportunity to contribute to the debate. Once again, the Government is demonstrating its commitment to the Defence Forces by increasing defence spending year on year, providing more money pay and pensions and significantly increasing the capital investment in barracks, equipment and force protection.

Budget 2020 provides an additional €32.3 million towards our continual investment in the Defence Forces - people and infrastructure. For the second successive year, I have secured more than €1 billion for defence. The overall total of €1.04 billion includes €780.4 million for Vote 36 - Defence, which is an increase of €22.3 million on the 2019 provision.

As we have continuously recognised, recruitment and retention of our personnel have posed significant challenges for the Defence Forces. It is for that reason the Government asked the independent Public Service Pay Commission to examine these issues in close detail. Those recommendations have been accepted in full and will result in real and tangible benefits to our soldiers, sailors and air crew. The budget provides additional funding of €15 million for increases due under the public service stability agreement 2018 to 2020, as well as the implementation of the recommendations of the commission. The Government's commitment to actioning the report is underpinned by our implementation plan which sets out clear timelines and objectives, providing a detailed and ambitious road map to strengthening the Defence Forces. Among the measures being worked on is a review of technical pay grades 2 to 6 for specialists, with an initial focus on certain pinch points in the Army, the Naval Service and the Air Corps. The Government's approach ensures that, once again, defence remains fully funded for the established strength of 9,500 personnel at pay rates set through long-established processes and negotiated agreements.

I recognise the decision of the Representative Association of Commissioned Officers, RACO, to accept the Public Service Pay Commission's recommendations and can confirm that the increases in allowances will begin to be paid to its members in the coming weeks. The Permanent Defence Force Other Ranks Representative Association, PDFORRA, is considering the commission's recommendations and I hope it will view positively the proposals, together with our implementation plan, in order that the increases will be paid to its members as soon as possible.

We will provide €259.1 million for Defence Forces pensions, an increase of €10 million, ensuring sufficient funding to meet the retirement benefits of some 12,640 former members and their dependants. The Government's commitment to defence is further demonstrated by the significant capital envelope in 2020. The capital allocation will increase by €7 million to €113 million in 2020. The overall capital allocation tor 2018 to 2022 is €541 million. This will provide funding for a range of projects, including the continued mid-life upgrade of armoured personnel carriers; the purchase of three new utility aircraft, which are scheduled for delivery in 2020; the replacement of two maritime patrol aircraft, the tender process for which is nearing completion; a mid-life refit of two Naval Service vessels; and €19 million for building projects with a further €9 million for ongoing maintenance and running costs.

We are also providing more than €2 million for the Reserve Defence Force. The Defence group Votes also include over €4 million for civil defence supporting the excellent work of volunteers and civil defence officers across the country.

Since 2016, I have secured increases in Defence Votes of more than €134 million or 15%. These increases have allowed us to increase starting pay for three star privates from €21,800 when I was appointed in 2016 to more than €28,000 and implement outstanding adjudications, meaning €50 per week more for Army rangers, €13.52 for cooks, €65.80 for certain account holders and a saving of €43.63 for recruits and apprentices. These are just some of the many improvements we have made in the past three and a half years.

I would like to address the assertion that this equates to the €32 million increase that I secured to an underspend in the pay subhead. This House and the entire country knows that Fianna Fáil has a reckless past when it comes to managing money. Here we see another example of a party that is populist, that selectively ignores the reality of the public sector pay process and that simply does not understand public finances. I thank the Minister for Public Expenditure and Reform for his work during the negotiations.

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