I move:
That a sum not exceeding £264,487,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1989, for the salaries and expenses of the Office of the Minister for Defence, including certain services administered by that Office, and for the pay and expenses of the Defence Forces.
The Defence Estimate for the year ending 31 December 1989 is for a net sum of £264.5 million. This is an increase of £4.4 million on the corresponding outturn figure of £260.1 million for 1988. The gross provision in the 1989 Estimate is £274.9 million.
The major part of the 1989 Estimate — 82 per cent or £217.5 million — provides for pay and allowances and this represents an increase of £17.8 million and the outturn for 1988. The non-pay items amount to £57.4 million; the comparable 1988 figure was £73.1 million but it included exceptional expenditure amounting to approximately £14 million on the purchase of two patrol vessels for the Naval Service and the installation of a computerised information system for use in fishery protection activities. In addition, provision for grants-in-aid totalling £.54 million in respect of the Irish Red Cross Society and Coiste An Asgard was also included in the 1988 figure. In 1989, this expenditure will be funded from the national lottery.
The provision of £10.4 million for appropriations-in-aid shows a decrease of £2.2 million on the 1988 outturn.
The Estimate for 1989 is based on an average total strength of 12,910 in the Permanent Defence Force comprising 1,560 officers, 50 cadets and 11,300 other ranks. The averages for 1988 were 1,590 officers, 40 cadets and 11,600 other ranks.
This year's Estimate makes provision for the special increase in pay and allowances for members of the Permanent Defence Force awarded by the Government following consideration of the recommendations of the Inter-departmental Committee on Defence Forces Pay, Allowances and Conditions.
Since 1969 the main preoccupation of the Defence Forces has been with internal security matters. Primary responsibility for internal security rests with the Garda Síochána and the involvement of the Defence Forces in this field derives from their role of rendering aid to the civil power. The employment of Army personnel and resources in aid to the civil power involves the Defence Forces in patrolling, with the Garda, in the road network along the Border area, in the provision of assistance at joint Garda-Army checkpoints, in the provision of escorts for explosive and blasting operations and in the provision of specialist personnel to deal with requests for bomb disposal. In addition, vital non-military installations have the protection of military guards or patrols, while the Defence Forces also supply military parties to escort civilian prisoners and cash in transit and to help in searches for arms and explosives.
Demands made on the Defence Forces in regard to internal security matters continued at a high level during the past 12 months and indications are that there will be no significant reduction in the demands made in the security field in the foreseeable future.
There are a number of points which I would like to make with regard to Defence Forces pay. First, the pay of the Defence Forces has for many years been linked to the pay of certain Civil Service grades and the benefit of all increases — both round increases and appropriate special increases — has been passed on to the Defence Forces as a matter of course. Accordingly, the pay of military personnel has broadly kept pace with that of the public service generally.
Secondly, the review of the remuneration of members of the Defence Forces had to take full cognisance of the general condition of the economy and of the particular provisions of the Programme for National Recovery which deal with public service pay. My colleague, the Minister for Finance, has already spoken of the need to maintain strict control of the public service pay bill which currently stands at approximately £3,000 million a year. Should the cost of pay in the public service run our of control, all of the gains which have been made in the last few years would be eroded. Our economic targets would become unattainable and all our sacrifices would have been in vain. For this reason, the programme strikes a fair balance between the legitimate right of public servants to just pay levels and the need to control spending. Attempts to isolate the pay of the Defence Forces from the wider picture are unrealistic.
Thirdly, the Defence Forces' pay structure is quite unlike that of other public servants. Instead of a simple system of pay scales, military personnel are paid a combination of basic pay, additional pay, daily allowances and weekly allowances. When the committee reviewed the remuneration of the Defence Forces, they looked at the total package of remuneration, and not just basic pay.
The recommendations of the committee have been implemented in full with one minor exception. In addition to the committee's recommendations, Defence Forces personnel will also receive the general round increases provided for by the public service pay agreement. All in all, the total remuneration of the other ranks personnel was increased by an average of about 9 per cent from 1 January 1989. By 1 July 1989 the average increase reached around 15 per cent rising to slightly more than 21 per cent on full implementation. The cost of these increases in 1989 will be about £12.5 million. If no review had taken place, the cost of special increases would have been £2.5 million. This is the factual position with regard to Defence Forces pay and allowances.
At a time when all areas of the public service are being asked to exercise restraint, the increases which I have just outlined could not be considered unreasonable. In the longer term, however, it is intended to restructure the Defence Forces pay system completely so as to increase basic pay levels and reduce the dependence of soldiers on special allowances.
The previous Government decided to set up a special committee to carry out a review of pay, allowances and conditions. In order to ensure better representation of the military position, the Government appointed two former members of the Permanent Defence Force to the committee. The intention was that the military authorities would continue to be afforded every opportunity of presenting their views to the committee and to meet the committee for the purpose of elaborating on the various aspects of their case.
As the House will be aware, the question of forming an association in the Permanent Defence Force has been raised. A number of non-commissioned officers and men have recently intimated that they are contemplating the formation of an association with the objects of having the right of consultation in matters relating to pay and allowances and to make recommendations for the improvement of conditions of other ranks. The association would also have a role in several other areas including welfare and educational matters and professional standards.
On any occasion on which this matter has previously been considered the official view has consistently been that the formation of an association such as that contemplated, having a system of organisation and control separate from that of the Defence Forces, would be incompatible with the system of command essential to our Defence Forces. Whatever about the acceptability or otherwise of the objects of an association such as that contemplated, a fundamental issue of principle does arise in the case of the Defence Forces.
Obviously this is an area which requires very careful examination to get the balance right. It is important that members of the Defence Forces feel that they can make their views known in regard to their conditions of service. It is equally important to ensure that any developments in this area will not be incompatible with the system of command in the Defence Forces and will not compromise good order and discipline. This matter requires careful and mature examination to try to accommodate the legitimate requirements of the members of the Defence Forces. Recognising, however, that there is a difficulty to be resolved, I intend to have the situation examined in a thorough-going way and to do so as quickly as the complexity of the subject will allow.