The government is to spend an extra $4.6 billion on defence over the next ten years.
Releasing the government's long-term approach to building New Zealand's defence capability, Defence Minister Mark Burton said the funding package would ensure the New Zealand Defence Force had the capacity to meet New Zealand's defence requirements into the future.
Building on earlier major capital injections in the Defence Long Term Development Plan, the Defence Sustainability Initiative will provide additional funding (excluding gst) of $4. 4 billion (operating) and $209 million (capital) over the next 10 years. This will restore and develop the resources of the NZDF and the Ministry of Defence and should align long-term personnel recruitment, training, development and resources with the defence capital acquisition programme. This will enable:
- Increased personnel numbers and enhanced training and retention.
- Maintenance and development of infrastructure at camps and bases.
- Increased reserve stocks of necessary equipment and spares.
- Strengthened administration and management systems.
- Cover of depreciation on defence assets.
Working with the Ministers of Finance and State Services, Mr Burton directed in early 2004 that a review be undertaken to look at the capability and resourcing requirements of defence.
The Defence Capability and Resourcing Review identified a number of areas where there were deficiencies in both the New Zealand Defence Force and the Ministry of Defence.
“The Defence Sustainability Initiative takes a strategic approach to addressing these issues, and in particular to developing a Defence Force for the 21st Century,” said Mr Burton.
“We know these issues cannot be addressed overnight, particularly in the area of recruitment and retention, where capabilities must be built up progressively over time. That is why this funding initiative is to be phased over 10 years. Building personnel capacity takes time. “NZDF has engaged in a number of high tempo operations in recent years, including deployments to Timor Leste, Afghanistan, Iraq, Solomon Islands, Indonesia, and the Gulf region. These operations have stretched the resources of the NZDF. Further demands on resources imposed by the acquisition of major equipment have highlighted the need to build the capacity of the defence force in the areas of people, infrastructure and corporate systems.” The Ministry of Defence will also be funded to develop its policy and purchase advice functions.
The Defence Capability and Resourcing Review revealed needs in existing military and corporate capability. Priorities for the new funding will focus on building personnel levels, bringing new and upgraded equipment into service and strengthening defence planning and management systems and ongoing sustainability.