Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I propose to take Question Nos. 13, 50 and 276 together.

There are many reasons individuals may leave the Defence Forces, ranging from individual personal circumstances to career opportunities, having fulfilled their contract or retirement on age grounds. The Defence Forces offer significant career opportunities and while pay has been highlighted as an issue, there has been significant progress in recent years.

Public service pay policy is determined by the Department of Public Expenditure and Reform having regard to public sector pay agreements. The Department of Defence does not have discretion to award separate pay increases, as Deputies understand. The Defence Forces have received pay increases in line with the Public Service Stability Agreement 2018-2020, the most recent of which was a 2% increase on annualised salaries from 1 October 2020. The restoration of the 5% cut in allowances imposed under the financial emergency in the public interest, FEMPI, legislation was also restored from 1 October 2020.

In addition to the general round of pay increases awarded to public servants, members of the Defence Forces have also benefited from the implementation of increases in Defence Forces allowances as recommended by the Public Service Pay Commission. These included a 10% increase in military service allowance; the restoration of a 10% cut applied to a number of Defence Forces allowances under the Haddington Road pay agreement; the restoration of premium rates for weekend security duty allowances; and the restoration of a service commitment scheme for pilots.

The introduction of a new seagoing service commitment scheme for Naval Service personnel, which came into effect from 1 January 2021, is aimed at retaining highly trained and experienced personnel and incentivising seagoing duties within the Naval Service. The seagoing naval personnel tax credit of €1,270 was applied in the 2020 tax year for members of the Naval Service who served 80 days or more at sea on board a naval vessel in 2019. This tax credit has been extended for a further year and is increased to €1,500 for the 2021 tax year.

Negotiations on a new public service agreement were held in late 2020 with public service trade unions and representative associations. A new agreement, Building Momentum - A New Public Service Agreement 2021 - 2022, has subsequently been ratified by the overwhelming majority of public sector unions. The Permanent Defence Force representative associations have yet to ballot their members and, accordingly, advise the Workplace Relations Commission, WRC, of formal acceptance, or otherwise, of this agreement. The agreement provides for a further increase in pay to all public servants, including members of the Defence Forces, should the representative associations advise the WRC of formal acceptance of the agreement. It includes a general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, in October 2021; the equivalent of a 1% increase in annualised basic salaries to be used as a sectoral bargaining fund, in accordance with chapter 2 of the agreement, on 1 February 2022; and a general round increase in annualised basic salaries for all public servants of 1% or €500, whichever is greater on, 1 October 2022.

The Government remains fully committed to addressing pay and conditions in the Defence Forces and this is reflected in the programme for Government. This provided for the establishment of a commission on the Defence Forces, which was established on the 15 December 2020. After completion of the commission’s work, I will consult the Minister for Public Expenditure and Reform on the establishment of a permanent pay review body for the Defence Forces.

I know there are problems with recruitment and retention across the Defence Forces. I am very aware of these and we are working on them. It is not true to say there has been no progress on pay and allowances. There has been considerable progress is many areas. We need to do more and we will continue to look at those issues. We have to assess the recruitment and retention issues in the round. Pay and allowances are part of that but other factors must also be taken into account.

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