SPEECH BY THE MINISTER FOR JUSTICE, EQUALITY and DEFENCE
MR. ALAN SHATTER, T.D.,
BEFORE THE SELECT COMMITTEE ON
JUSTICE, DEFENCE AND EQUALITY 2012 ESTIMATES FOR DEFENCE
AND ARMY PENSIONS
Wednesday, 23 May, 2012.
Chairman, Members, I am pleased to appear before the Select Committee today and I welcome the opportunity to constructively engage on all aspects of the Defence and Army Pensions Estimates for 2012.
2012 represents the first year in which the Defence and Army Pensions Estimates will be evaluated within a ‘Performance Budgeting’ context. I welcome this development, which is a cornerstone of the overall Government initiative to transform and modernise the delivery of public services.
Reform of Budgets/Performance Budgeting
The combined Estimates for Defence and Army Pensions for 2012 provide for gross expenditure of some €903 million. This compares with actual expenditure in 2011 of €927 million.
The Government’s commitment to modernising the Estimates process has strengthened the focus upon performance and delivery. The Revised Estimates now include key output and context/impact information together with the normal financial and human resource inputs. This will improve transparency between Strategy, Programme outputs and costs.
The Defence Organisation shares a single high level goal, which is:
To provide for the military defence of the State, contribute to national and international peace and security and fulfil all other roles assigned by Government.
Strategies and performance indicators associated with delivering this goal are laid out in the Department of Defence and Defence Forces Strategy Statement for 2011-2014, which was published in April 2012.
The outputs of the Defence Organisation are encompassed in a single programme within Vote 36. This programme has three distinct but complementary strategic dimensions. These are: Defence policy, ensuring the capacity to deliver and Defence Forces operations. High level performance information and targets are included in the Revised Estimates and detailed information regarding the outputs from these three strategic dimensions will be contained in Annual Reports.
In line with the new approach to the estimates process, the two context indicators shown in the 2012 Revised Estimates are Defence Expenditure as a percentage of Gross Domestic Product (GDP) and the percentage of Defence Forces personnel serving overseas on Peace Support Operations.
The data published by the European Defence Agency (EDA) on an annual basis illustrates that of the 26 participating EU Member States, the percentage of GDP that Ireland spends on Defence (both Army Pensions and Defence Votes), has remained among the lowest of the member States. The 2011 data will be available from the EDA later this year.
Within the available resource envelope, Ireland has focussed on continuing to meet our responsibilities in the International community through participation in peace support operations. Throughout 2009 and 2010, Ireland deployed a significant number of military personnel overseas, while also maintaining a high level of operational activity at home.
Permanent Defence Force Strength and Recruitment
The Defence Estimate for 2012 includes provision for the pay and allowances of over 9,500 Permanent Defence Force personnel, 670 civilians employed with the Defence Forces and some 340 civil servants. It also provides for the pay of members of the Reserve while on full-time training.
The Army Pensions Estimate provides for the payment of service-related pensions and disability related benefits to over 12,100 former members of the Defence Forces and their spouses and children.
Arising from the Government’s Comprehensive Review of Expenditure, the strength ceiling of the Permanent Defence Force was reduced to 9,500 personnel. In response to this reduced strength, a major re-organisation of the Defence Forces was initiated. This will encompass a reduction in the number of Army Brigades from three to two and will necessarily include the Reserve Defence Force.
A three brigade structure has been in place since the 1990s when the strength of the PDF was set at 11,561. It was retained when the strength ceiling was reduced as part of the White Paper in 2000. It is no longer viable to retain a three brigade structure at a strength level of 9,500.
I have requested the Secretary General and the Chief of Staff to prepare detailed proposals for my consideration and work is ongoing in this regard. The aim of the re-organisation is to ensure that, within the strength level of 9,500 personnel, the operational effectiveness of the Permanent Defence Force is prioritised.
Pending the re-organisation, priority posts are being filled by promotion and recruitment. In addition, as the Defence Forces are currently below the agreed serving cadre of 9,500, I have recently approved the recruitment of general service personnel along with the induction of 42 cadets to bring the strength up to the approved level in 2012.
The total strength of the Permanent Defence Force as of 31 March 2012 was 8,899, with 7,192 in the Army, 947 in the Naval Service and 760 in the Air Corps.
Croke Park Agreement
Turning to the Croke Park Agreement, I can inform the Committee that the Second Annual Progress Report on the Agreement was submitted to the Implementation Body on the 2nd May 2012. The main achievements were:
· a continued flexibility to ensure delivery of tasks assigned by Government within the restricted resource envelope;
· the redeployment of 1,080 serving military personnel across the organisation;
· the introduction of new merit based promotion systems for Generals, Officers and Enlisted Personnel;
· the delivery of additional services with the deployment of personnel to UNIFIL (Lebanon) and takeover of Command by the Defence Forces of the EU training mission in Somalia;
· a reduction in the number of personnel on ‘acting’ and ‘substitution’ allowances from 350 in March 2009 to 101 in March 2012; and
· the completion of a comprehensive review of Medical Services in June 2011.
Closure of Barracks
This year has also seen the closure of four barracks; an initiative which will maximise the effectiveness of the Defence Forces by removing the burden imposed by manning and maintaining unnecessary installations. The closures will facilitate the release of personnel from security and support functions in order to enable the operational capacity of the Defence Forces to be maintained, notwithstanding the fall in strength.
Promotions
2010 saw the recommencement of promotions in the Defence Forces in order to fill key positions in the organisation. There were 139 officer promotions in 2011, and a further 120 to the end of April 2012.
A total of 219 Enlisted Personnel were promoted in 2011 followed by 27 to the end of April 2012. Promotions are on-going within the Officer ranks while, following agreement on the introduction of a revised Non-Commissioned Officer (NCO) promotion system, interviews have now commenced in order to fill NCO vacancies.
Review of Allowances
The Defence Organisation was of course encompassed by the Government decision of 14 November 2011, which required that additional pay saving measures should be undertaken to deliver further efficiencies in 2012.
All Departments were required to submit a business case in respect of each allowance and premium paid by it to the Department of Public Expenditure and Reform before the end of January 2012. Business cases were submitted by my Department by the closing date and the Department of Public Expenditure and Reform is currently deliberating on those business cases.
MR. ALAN SHATTER, T.D.,
BEFORE THE SELECT COMMITTEE ON
JUSTICE, DEFENCE AND EQUALITY 2012 ESTIMATES FOR DEFENCE
AND ARMY PENSIONS
Wednesday, 23 May, 2012.
Chairman, Members, I am pleased to appear before the Select Committee today and I welcome the opportunity to constructively engage on all aspects of the Defence and Army Pensions Estimates for 2012.
2012 represents the first year in which the Defence and Army Pensions Estimates will be evaluated within a ‘Performance Budgeting’ context. I welcome this development, which is a cornerstone of the overall Government initiative to transform and modernise the delivery of public services.
Reform of Budgets/Performance Budgeting
The combined Estimates for Defence and Army Pensions for 2012 provide for gross expenditure of some €903 million. This compares with actual expenditure in 2011 of €927 million.
The Government’s commitment to modernising the Estimates process has strengthened the focus upon performance and delivery. The Revised Estimates now include key output and context/impact information together with the normal financial and human resource inputs. This will improve transparency between Strategy, Programme outputs and costs.
The Defence Organisation shares a single high level goal, which is:
To provide for the military defence of the State, contribute to national and international peace and security and fulfil all other roles assigned by Government.
Strategies and performance indicators associated with delivering this goal are laid out in the Department of Defence and Defence Forces Strategy Statement for 2011-2014, which was published in April 2012.
The outputs of the Defence Organisation are encompassed in a single programme within Vote 36. This programme has three distinct but complementary strategic dimensions. These are: Defence policy, ensuring the capacity to deliver and Defence Forces operations. High level performance information and targets are included in the Revised Estimates and detailed information regarding the outputs from these three strategic dimensions will be contained in Annual Reports.
In line with the new approach to the estimates process, the two context indicators shown in the 2012 Revised Estimates are Defence Expenditure as a percentage of Gross Domestic Product (GDP) and the percentage of Defence Forces personnel serving overseas on Peace Support Operations.
The data published by the European Defence Agency (EDA) on an annual basis illustrates that of the 26 participating EU Member States, the percentage of GDP that Ireland spends on Defence (both Army Pensions and Defence Votes), has remained among the lowest of the member States. The 2011 data will be available from the EDA later this year.
Within the available resource envelope, Ireland has focussed on continuing to meet our responsibilities in the International community through participation in peace support operations. Throughout 2009 and 2010, Ireland deployed a significant number of military personnel overseas, while also maintaining a high level of operational activity at home.
Permanent Defence Force Strength and Recruitment
The Defence Estimate for 2012 includes provision for the pay and allowances of over 9,500 Permanent Defence Force personnel, 670 civilians employed with the Defence Forces and some 340 civil servants. It also provides for the pay of members of the Reserve while on full-time training.
The Army Pensions Estimate provides for the payment of service-related pensions and disability related benefits to over 12,100 former members of the Defence Forces and their spouses and children.
Arising from the Government’s Comprehensive Review of Expenditure, the strength ceiling of the Permanent Defence Force was reduced to 9,500 personnel. In response to this reduced strength, a major re-organisation of the Defence Forces was initiated. This will encompass a reduction in the number of Army Brigades from three to two and will necessarily include the Reserve Defence Force.
A three brigade structure has been in place since the 1990s when the strength of the PDF was set at 11,561. It was retained when the strength ceiling was reduced as part of the White Paper in 2000. It is no longer viable to retain a three brigade structure at a strength level of 9,500.
I have requested the Secretary General and the Chief of Staff to prepare detailed proposals for my consideration and work is ongoing in this regard. The aim of the re-organisation is to ensure that, within the strength level of 9,500 personnel, the operational effectiveness of the Permanent Defence Force is prioritised.
Pending the re-organisation, priority posts are being filled by promotion and recruitment. In addition, as the Defence Forces are currently below the agreed serving cadre of 9,500, I have recently approved the recruitment of general service personnel along with the induction of 42 cadets to bring the strength up to the approved level in 2012.
The total strength of the Permanent Defence Force as of 31 March 2012 was 8,899, with 7,192 in the Army, 947 in the Naval Service and 760 in the Air Corps.
Croke Park Agreement
Turning to the Croke Park Agreement, I can inform the Committee that the Second Annual Progress Report on the Agreement was submitted to the Implementation Body on the 2nd May 2012. The main achievements were:
· a continued flexibility to ensure delivery of tasks assigned by Government within the restricted resource envelope;
· the redeployment of 1,080 serving military personnel across the organisation;
· the introduction of new merit based promotion systems for Generals, Officers and Enlisted Personnel;
· the delivery of additional services with the deployment of personnel to UNIFIL (Lebanon) and takeover of Command by the Defence Forces of the EU training mission in Somalia;
· a reduction in the number of personnel on ‘acting’ and ‘substitution’ allowances from 350 in March 2009 to 101 in March 2012; and
· the completion of a comprehensive review of Medical Services in June 2011.
Closure of Barracks
This year has also seen the closure of four barracks; an initiative which will maximise the effectiveness of the Defence Forces by removing the burden imposed by manning and maintaining unnecessary installations. The closures will facilitate the release of personnel from security and support functions in order to enable the operational capacity of the Defence Forces to be maintained, notwithstanding the fall in strength.
Promotions
2010 saw the recommencement of promotions in the Defence Forces in order to fill key positions in the organisation. There were 139 officer promotions in 2011, and a further 120 to the end of April 2012.
A total of 219 Enlisted Personnel were promoted in 2011 followed by 27 to the end of April 2012. Promotions are on-going within the Officer ranks while, following agreement on the introduction of a revised Non-Commissioned Officer (NCO) promotion system, interviews have now commenced in order to fill NCO vacancies.
Review of Allowances
The Defence Organisation was of course encompassed by the Government decision of 14 November 2011, which required that additional pay saving measures should be undertaken to deliver further efficiencies in 2012.
All Departments were required to submit a business case in respect of each allowance and premium paid by it to the Department of Public Expenditure and Reform before the end of January 2012. Business cases were submitted by my Department by the closing date and the Department of Public Expenditure and Reform is currently deliberating on those business cases.
Comment