I want to raise a matter of national significance and importance. It has a pensions component as well a national security component. I refer to the impending retirement of the deputy Garda commissioner for policing and security, who will most likely retire in March or April next year. Unfortunately, not a single serving member of An Garda Síochána has applied for promotion to replace her because if they do, they will get hammered from a pensions point of view. Revenue will nail them and there is no financial incentive to apply for this promotion. On the contrary, there is a financial disincentive to apply.

I agree with the standard fund threshold, SFT, which is important. It was introduced in 2014 for banker's pay. Unfortunately, this one-size-fits-all pension threshold has had unintended consequences and it disproportionately affecting An Garda Síochána in particular because of its fast-accrual pensions. When people are in the senior echelons of An Garda Síochána and at the peak of their powers, they do not apply for high office because they are financially disincentivised from doing so. Some of these gardaí, if they apply for this job, will be hit with up to €200,000 of a tax bill on the day they retire. A massive tax bill is, therefore, pending if they apply for this job and get it, and that is the reason not a single one of them has done so.

It is a big issue from a workforce planning point of view but perhaps even more important from a the national security point of view. As the Tánaiste will be aware, An Garda Síochána is unique. It has a policing function as well a national intelligence function. It is important that the person who applies for or is given this job is an Irish citizen, just like an Irish diplomat must be an Irish citizen. Unfortunately, there have been only a small number of applicants and they are all from outside this jurisdiction. That is not the way to do business because if you are applying for the position of head of Irish intelligence, the assumption is that you have worked in the intelligence services and apparatus of other countries, and that would give other countries a strategic advantage over this jurisdiction. That is not the way to do business.

Does the Tánaiste accept that there is a problem and an anomaly here? Does he accept that it is something that should be fixed? How does he propose to address it in the short to medium term?

There are two issues. The first is the financial issue and the second is the security and intelligence service. The Deputy is suggesting it should be an Irish citizen who takes the job, which I will come back to. I understand the concerns he has articulated about the fast-accrual pension scheme, which applies to An Garda Síochána, and the limit on pension funds, which has been discussed in this context as the standard fund threshold, which sets a lifetime maximum for tax relief on pension contributions. That is part of a tax system which generally applies for everybody and for all pension products or schemes, both in the public and private sectors.

The Minister for Finance has indicated that an examination of the calibration of the SFT will be undertaken and that a memorandum for information on this examination is expected to go to Government shortly. That targeted examination will require input from a range of stakeholders, including the Department of Public Expenditure, National Development Plan Delivery and Reform and other Departments. The difficulty is that the examination is expected to conclude by summer 2024. There will be a public consultation and any outcome of that will apply to both the public and private sectors. As the Deputy knows, the standard fund threshold sets a limit for the total amount of contributions into an individual's pension and then, when it is crystallised, the pension benefit value is assessed. The value, for the purposes of SFT, depends on the annual pension benefit payable and the age at which benefits are earned. Where the value is higher than the SFT, the excess is subject to additional tax, on top of the normal taxes at the marginal rate. There are clearly issues here and, in parallel with that, there are issues in the security and intelligence services.

We need to be cautious about making declaratory statements as to citizenship. Any external candidate considered for appointment by Government must generally be subject to security clearance and they are notified of this in advance. Any person who is appointed to An Garda Síochána is required to attest as a member and make a solemn declaration to uphold the Constitution and the laws of the State under section 16 of the Garda Síochána Act. Ultimately, the appointments to the office of deputy commissioner are made by the Government on the recommendations of the Policing Authority. It is a matter for the Garda Commissioner to determine the role and responsibilities of any particular officeholder. There is manoeuvrability and the Garda Commissioner can take on board security and intelligence issues in apportioning or allocating responsibilities to any given member of the leadership team. There is a financial issue, which the Deputy has identified. He is correct in outlining why it was brought in originally and, nonetheless, it merits examination.

I thank the Tánaiste for that useful response. It appears that there is at least an acknowledgement that there is a problem and that the problem can be addressed. My concern is that if it is not addressed until next summer, there will probably be a gap in that appointment while the deputy commissioner retires. I want to flag this and it is important that this post is filled. There is a reason not a single member of An Garda Síochána has applied for the role. That reason, as the Tánaiste pointed out, is financial, and, hopefully, that can be addressed in the short term.

It applies to all aspects of the public and private sector, but particularly to the public service at a given stage, especially where there are fast-accrual pension systems. I will revert to the Ministers for Finance and Justice on the issues.