Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I might be a little over the eight minutes. I might ask for leniency. I very much welcome the opportunity the Senators have given me to speak about our Defence Forces and the actions that the Government is taking to develop the Defence Forces as outlined in the White Paper on Defence 2015.

Defence is a very serious matter and there is a strong danger that overstating the issues facing the Defence Forces will ultimately damage the Defence Forces. In today’s information age, an individual with a smartphone can reach a wide audience and the material that is being disseminated does not undergo quality assurance. I want to deal with facts and I look forward to engaging with Senators on that basis this evening.

At the outset I want to again restate my admiration for the men and women of Óglaigh na hÉireann. They provide important and vital supports both at home and overseas. In early March we all witnessed one aspect of this work when the Defence Forces contributed to our national efforts in responding to Storm Emma. When deployed overseas the Defence Forces represent the very best of this country. They serve with pride and distinction, continuing to enhance an impressive reputation that has been earned over 60 years of continual contributions to international peacekeeping. Today Ireland has over 600 members of the Defence Forces serving in ten different missions, including our ship in the Mediterranean. I want to thank those individuals and recognise their families, for it is not just those who serve overseas that make sacrifices, their deployment also impacts on their partners, children, families, friends, parents and all family members.

I have always acknowledged the challenges that face the Defence Forces and I have taken a wide range of measures to begin to address these. The steps that have been taken include initiatives on pay, recruitment, increased opportunities to serve overseas, reviewing contracts and reviewing the conciliation and arbitration scheme. The fact is that the Government continues to demonstrate its commitment to ensuring that the Defence Forces are equipped and well trained to the best international standards to meet operational requirements both at home and overseas.

The budget allocation for 2018 delivered an additional €25 million. An additional €98 million for capital expenditure has been provided out to 2021. One of my priorities as Minister of State at the Departments of the Taoiseach and Defence is to ensure that our Defence Forces continue to have access to modern equipment and technologies. The acquisition of new equipment and equipment upgrades for the Defence Forces is considered in the context of the White Paper on Defence as part of the capability deployment and equipment priorities planning processes. Significant investment in equipment is taking place in the coming years in this context.

The ongoing capital investment in the Defence Forces is providing the maintenance and development of key capabilities. I visited the General Dynamics Europe Land Systems, Mowag, facility in Switzerland recently where we have a programme under way for the maintenance and upgrade of our current fleet of armoured personnel carriers, APCs. I also visited the Pilatus facility where we have placed a contract for three new PC-12 aircraft. In terms of capabilities, these new aircraft will be specially equipped with intelligence, surveillance, target acquisition and reconnaissance, ISTAR, tasks and will represent a significant enhancement of existing capabilities. Planning has also commenced recently for the replacement of two CASA maritime patrol aircraft. A fourth new ship for the Naval Service, to be named LÉ George Bernard Shaw, will be delivered later this year, bringing investment in the new ships programme to over €250 million. There is very significant work under way and the Government remains committed to continuing our significant investment in the Defence Forces to meet existing and emerging challenges in the defence and security environment both domestically and overseas.

I want to address human resources, HR. Human resources are the key component of capability. We face HR challenges, similar to other areas of the public service, in recruitment and retention of certain personnel. The Defence Forces climate survey was commissioned on foot of a recommendation contained in the third and most recent report of the independent monitoring group. The comments arising from the survey cover a wide range of issues on human resource management including, among others: pay and conditions, particularly pay for the lowest paid members of the Defence Forces; vacancies; recruitment; retention; promotion systems; performance management; leadership; culture; morale; stress; and work-life balance.

The opinions expressed highlight a number of challenges for the Defence Forces in human resource management across the areas of leadership, communications, organisational culture and the working environment. While work to progress many of the issues was already under way or planned as part of the implementation of the White Paper on Defence, I have directed that certain projects be brought forward and that work commence on these immediately. I am also acutely aware that many of the issues raised challenge assumptions regarding existing approaches, some of which were previously agreed following a detailed consultation. This is a challenge for both management and staff and I am very much aware that there has been ongoing work across a range of HR issues.

It is worth noting that although pay is just one of the issues raised in the climate survey, it is the one which has received the most attention. It must also be noted that the climate survey pre-dated acceptance by the Permanent Defence Force Other Ranks Representative Association, PDFORRA, of the Lansdowne Road agreement and the pay increases that ensued. Similar to other areas within the public service, the pay of the Permanent Defence Force, PDF, was reduced during the financial crisis. The reduction in pay was on a graduated basis with increased rates of deductions for those on higher earnings. This action was one of the measures necessary to be taken to stabilise the financial situation which faced the country at the beginning of this decade. Memories cannot be so short that people have forgotten the crisis that we were in at that time. It must also be remembered that a number of cuts to certain allowances were agreed by the representative associations as part of the pay deals. Accordingly, their unwinding is encompassed within this process. The success of Government policies is apparent in the improvements within the economy which has provided the opportunity to begin the unwinding of the public service pay cuts imposed under the Financial Emergency Measures in the Public Interest Acts, otherwise known as FEMPI legislation.

The Defence Forces pay is increasing in line with recent public sector pay agreements. The focus of these increases is weighed in favour of those on lower pay. Members of the Defence Forces received increases in pay in 2017 under the Lansdowne Road agreement. In addition, in a deal agreed with PDFORRA, improved payscales for general service recruits and privates who joined the Permanent Defence Force post 1 January 2013, were backdated to 1 July 2016 and paid in August 2017.The Public Service Stability Agreement 2018-2020 provides for further increases in pay ranging from 6.2% to 7.4% over the lifetime of the agreement, with the focus of the agreement once again being on the lower paid. By the end of the agreement, the pay scales of all public servants, including members of the Permanent Defence Force, earning up to €70,000 will be restored to pre-FEMPI levels. The restoration of cuts to allowances will also be considered in the context of the agreement. An increase of 1% on annualised salaries due from 1 January 2018 has been paid to members of the Permanent Defence Force.

There is a persistent narrative which suggests that those in the Defence Forces are the lowest paid members of the public sector. In an organisation like the Defence Forces where the organisational design is that just over 48% of the establishment is comprised of privates, there is a requirement to ensure that any statistics cited, such as average pay, are contextualised. I suggest that it is more appropriate to consider the pay on offer for each job, having regard to what is on offer elsewhere for positions requiring similar skills and qualifications. The Defence Forces offer competitive starting salaries and excellent career opportunities for any young person thinking about joining. Following the series of pay increases in the past 12 months, a young three-star private on completion of training starts on €27,527, inclusive of military service allowance. This is an increase of €5,700, 25%, on the starting pay scale in the last 12 months. This starting pay compares very favourably with other entry level pay rates across the public service. A newly commissioned officer starts on a salary, inclusive of military service allowance, in excess of €35,000 per annum following 15 months training. If officers are already graduates, they start on a salary in excess of €40,000 per annum, inclusive of military service allowance. These rates compare favourably with the average graduate salary across all sectors. In general service promotion ranks, for Defence Forces personnel paying class A PRSI, the starting pay for a corporal, including military service allowance, is almost €39,000 per annum. The first point on the pay scale for a sergeant, including military service allowance, is just under €42,000 per annum. For officers who are promoted and who pay class A PRSI, including military service allowance, the first points on their pay scales are as follows: captain, €51,033; commandant, €63,644; lieutenant colonel, €76,060; and colonel, €86,579.

These figures represent basic pay, including military service allowance. Members of the Defence Forces also benefit from additional pay rates and allowances. These include technical pay, which, depending on the job of the individual member, ranges from €420 to €7,000 extra annually. In March, 3,680 members of the Defence Forces - approximately 40% of serving personnel - were in receipt of technical pay. Members of the Defence Forces also receive a range of duty allowances depending on their assigned taskings.

In the past two years, we have increased the opportunities for serving personnel to serve overseas. The average overseas payment received by general service personnel was just over €8,000 and the average paid to officers was almost €10,300. These are significant and deserved tax-free payments that are made to personnel who serve Ireland with pride and distinction.

Given the unique and demanding nature of military life, there is understandably a relatively high level of turnover among Defence Forces personnel. This is not new and the Permanent Defence Force has always had a level of turnover that far exceeds other areas of the public service. Some 2,832 personnel left the Permanent Defence Force in the last five years, from 2013 to 2017, inclusive. This figure looks stark and paints a bleak picture if it is taken out of context and considered in isolation from the long-term trends. The selective use of short-term statistics can lead to confusion and misunderstanding. This short-term information does not show that the numbers departing the Permanent Defence Force in recent years are, with some exceptions, broadly consistent with the long-term trend. An analysis of data dating back a number of years shows very similar numbers. For example, in the five years 2008 to 2012, a total of 2,935 personnel left the Permanent Defence Force. Some 2,889 left in the five-year period from 2003 to 2007. Within these figures, on average approximately 22% of general service recruits do not complete their induction training.

In order to balance personnel turnover, there is significant ongoing recruitment at both enlisted and officer level. During 2017, 751 personnel were inducted into the Permanent Defence Force. It is anticipated that approximately 800 personnel, including general service recruits, apprentices, cadets and direct entry officers, will be recruited to the Permanent Defence Force in 2018.

The success of Government policies is clearly evident in the economy, which is continuing to grow strongly, providing far more job opportunities than we have seen in recent years. Nonetheless, a career in the Defence Forces is still a very attractive proposition. It is pleasing that the number of applications to join the Defence Forces exceeds the numbers that were applying prior to the economic crash when there were similar employment opportunities. However, I am also aware that the number finally inducted relative to the number of applicants is lower than in the past and this must be considered.

I have previously outlined particular challenges in certain specialist posts, such as those relating to pilots, air traffic controllers and certain technicians. These specialists can prove difficult to retain where, as in the current economic circumstances, there are competing private sector and commercial semi-State sector job opportunities. The extensive professional training that such specialists receive within the Defence Forces makes them very attractive within these sectors. This is not a unique challenge for the Defence Forces, it is also faced by military forces elsewhere. The issue of specialist vacancies throughout the Permanent Defence Force is being addressed by means of a range of recruitment methods that include direct entry competitions for specialist positions. The scope to further expand direct entry is being considered. Civil and military management have been directed to develop proposals to facilitate former Permanent Defence Forces personnel with appropriate skill sets to re-enter the Defence Forces.

The Public Service Pay Commission was a central component of the confidence and supply agreement between Fine Gael and Fianna Fáil. It established an agreed process for looking at public sector pay taking cognisance of the needs of all sub-sectors. In 2017, under my direction, the Department of Defence raised recruitment and retention issues as part of the submission to the Public Service Pay Commission. In a further acknowledgement of these issues, the Government tasked the Public Service Pay Commission with examining these challenges in the defence sector in more detail. The Minister for Finance and Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, has prioritised the health sector and Defence Forces so that issues relating to recruitment, retention and specialist pay will be considered by the pay commission. It has commenced its work and has asked the Department of Defence to provide it with hard data and detailed information. It is important that the commission is given the opportunity to do its work and I have already outlined the pitfalls of misinterpreting data. For this reason, I do not wish to engage in lengthy debate regarding what the statistics do or do not show. That is for the Public Service Pay Commission to consider and I do not wish to pre-empt its work. The Department of Defence is continuing to work in close collaboration with military management with the aim of jointly preparing the material requested. The military authorities have produced a paper which is being considered by my Department having regard to the hard data and information requested by the Public Service Pay Commission. It is proving more difficult than anticipated to source the information requested, particularly in the context of specialist personnel but it is important that the full range of data is submitted. The Department has forwarded an initial tranche of information to the Department of Public Expenditure and Reform and will forward the remaining data and information in the coming weeks when it becomes available.The Public Service Pay Commission is due to complete its exercise in the second half of 2018. The findings and proposals arising will be considered at that time.

In conclusion, in addition to the preparation of material for the Public Service Pay Commission, there is an ongoing programme of HR development within the defence organisation. A number of initiatives have been instigated, including the review of the conciliation and arbitration scheme, a review of the criteria governing contracts for enlisted personnel and a comprehensive skills gap analysis across the Defence Forces. These measures address a range of issues and are aimed at ensuring that the Defence Forces retain the capabilities to undertake the roles assigned by Government and remain a career of choice for anyone who wants to work in a challenging and varied environment which provides opportunities for lifelong learning and self-development.