Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

Rates of pay and conditions of employment in the public service have traditionally been set by, among other things, reference to relative levels of pay across the various sectors of the public service. Like other areas within the public service, the pay rates of members of the Permanent Defence Force were reduced during the financial crisis. These decisions were not taken lightly but were necessary at the time. The Government’s economic policy has led to economic recovery and a resumption of economic growth. This has provided the fiscal resources to provide for a sustainable and fair recovery in public service pay scales.

In 2016, as set out in the confidence and supply agreement, the Government established the independent Public Service Pay Commission to provide an objective analysis and advice on the most appropriate pay levels in the public service, including the Defence Forces. Following the publication of the report of the commission, the Government initiated negotiations on an extension to the Lansdowne Road agreement. Both the Representative Association of Commissioned Officers, RACO, and the Permanent Defence Force Other Ranks Representative Association, PDFORRA, were invited to the negotiations which were held under the auspices of the Workplace Relations Commission. They were afforded equal standing to other public sector trade unions and representative associations during the negotiations.

Defence Forces pay is increasing in accordance with public sector pay agreements. The focus of the increases is weighted in favour of those on lower pay. Following the revisions of pay under the Lansdowne Road agreement, the first point of the pay scale for a corporal, including the military service allowance, is approximately €37,000. The first point of the pay scale for a sergeant, including the military service allowance, is just under €40,000 per annum. In addition, as a result of successful negotiations with PDFORRA, the pay of general service recruits and privates who joined the Permanent Defence Force after 1 January 2013 was increased further. The starting pay for a newly qualified three star private and the Naval Service equivalent saw an increase from €21,800 to €27,000 in gross annual earnings, inclusive of the military service allowance, with scope for further income from duty allowances.

Further increases in pay will arise from the Public Service Stability Agreement 2018 to 2020. The agreement provides for increases in pay, ranging from 6.2% to 7.4% over the lifetime of the agreement, with the focus once again on the lower paid. Arrangements are being made to process the first increase due under the agreement of 1% of annualised salary, effective from 1 January 2018. Permanent Defence Force personnel should see the effects of the increases in their pay scales in the next few weeks.

The Department of Defence, in conjunction with the Defence Forces, raised recruitment and retention issues for specialists as part of the submission to the Public Service Pay Commission. The commission has prioritised the defence sector for a more extensive examination of these issues. I understand both PDFORRA and RACO have been invited to make submissions to the commission. Defence management is also preparing a submission. The Public Service Pay Commission is due to complete this exercise in the second half of 2018. The findings and proposals made will be considered at that time.

The actions being taken are in line with the confidence and supply agreement; the recommendations of the Public Service Pay Commission are being followed and that process should he allowed to continue. So far, this approach has resulted in pay increases for members of PDFORRA and new pay scales for three star privates which were backdated to 2016 and paid in 2017. Also, in line with the public service stability agreement, further increases for all members of the Defence Forces are commencing this year.

I am satisfied that the processes I have outlined are appropriate in consideration of the matters raised by the Senator and delivering results for members of the Defence Forces. I know that the Senator raised the issue of members not receiving their pay increases in early January. The reason was their representative body had been late in signing up to the public service stability agreement. A process had to be gone through, but I understand they will receive their increases shortly.