No, the govt will not be cutting back on every budget – and the Defence vote is among those to be given a funding boost
Reporting on defence spending late last year, RNZ said the coalition government will have to make some tough calls this term to help the force address staff shortages and ageing infrastructure.
“These are huge, huge amounts of government spending. It’s a significant proportion of the government’s capital spend each year,” Professor David Capie said.
Capie is the director of the Centre for Strategic Studies at Victoria University.
“One of the problems is successive governments have kicked the can down the road on some of these issues,” he said.
Earlier this week, Richard Harman reported on a speech which Finance Minister Nicola Willis delivered to the National Party’s South Island regional conference in Christchurch on Saturday
The price of the foreign affairs “reset” is now becoming apparent, with Defence set to get a funding boost in the Budget. Finance Minister Nicola Willis has confirmed that it will be one of the few votes, apart from Health and Education and possibly Police, which will get an increase in the Budget.
Willis said her recent attendance at a Washington Five Eyes Finance Ministers conference made her realise that we were living in a less stable world.
“So it is important that New Zealand is able to contribute to our partnerships, and you will see an uplift in defence spending in this Budget,” she said.
“I don’t want to say it could be anything more than modest because we first need to review our capability and ensure that significant investments we make in the future are the investments that partners want to see from us, and that will allow us to make the best contribution.”
Harman conjectured that the Budget increase will address the concerns about Defence Force attrition rates raised by the Ministry of Defence in their Briefing to the Incoming Minister, Judith Collins, last November
But Willis also raised the question of capability, which would include the hardware such as ships and aircraft that Defence might need in the future. And, sure enough:
Defence Minister Judith Collins confirmed to POLITIK yesterday that a revised capability plan will be sent to the Cabinet in June or July (after the Budget). There are immediate issues that the plan will probably address such as replacing the Navy’s Seasprite helicopters and a currently shelved proposal to purchase on offshore patrol vessel capable of working in the southern ocean. However, the bigger question will be whether to implement the recommendations of the Naval Fleet Review, which is looking at replacements for the entire naval fleet apart from the auxiliary ship, the HMNZS Aotearoa.
Collins today affirmed that the upcoming Budget will include new funding of $571 million over four years for Defence Force pay and projects.
Her statement is posted on the government’s official website along with a copy of a speech which Chris Bishop delivered to the 2024 Infrastructure Symposium.
Point of Order scanned the speech for an idea of the sums of money that might be involved.
We were disappointed. There is not one $ sign, nor any use of the word “dollars”.
Capie is the director of the Centre for Strategic Studies at Victoria University.
“One of the problems is successive governments have kicked the can down the road on some of these issues,” he said.
Earlier this week, Richard Harman reported on a speech which Finance Minister Nicola Willis delivered to the National Party’s South Island regional conference in Christchurch on Saturday
The price of the foreign affairs “reset” is now becoming apparent, with Defence set to get a funding boost in the Budget. Finance Minister Nicola Willis has confirmed that it will be one of the few votes, apart from Health and Education and possibly Police, which will get an increase in the Budget.
Willis said her recent attendance at a Washington Five Eyes Finance Ministers conference made her realise that we were living in a less stable world.
“So it is important that New Zealand is able to contribute to our partnerships, and you will see an uplift in defence spending in this Budget,” she said.
“I don’t want to say it could be anything more than modest because we first need to review our capability and ensure that significant investments we make in the future are the investments that partners want to see from us, and that will allow us to make the best contribution.”
Harman conjectured that the Budget increase will address the concerns about Defence Force attrition rates raised by the Ministry of Defence in their Briefing to the Incoming Minister, Judith Collins, last November
But Willis also raised the question of capability, which would include the hardware such as ships and aircraft that Defence might need in the future. And, sure enough:
Defence Minister Judith Collins confirmed to POLITIK yesterday that a revised capability plan will be sent to the Cabinet in June or July (after the Budget). There are immediate issues that the plan will probably address such as replacing the Navy’s Seasprite helicopters and a currently shelved proposal to purchase on offshore patrol vessel capable of working in the southern ocean. However, the bigger question will be whether to implement the recommendations of the Naval Fleet Review, which is looking at replacements for the entire naval fleet apart from the auxiliary ship, the HMNZS Aotearoa.
Collins today affirmed that the upcoming Budget will include new funding of $571 million over four years for Defence Force pay and projects.
Her statement is posted on the government’s official website along with a copy of a speech which Chris Bishop delivered to the 2024 Infrastructure Symposium.
Point of Order scanned the speech for an idea of the sums of money that might be involved.
We were disappointed. There is not one $ sign, nor any use of the word “dollars”.
Latest from the Beehive
10 MAY 2024
Good morning. It’s a great privilege to be here at the 2024 Infrastructure Symposium.
Defence Minister Judith Collins today announced the upcoming Budget will include new funding of $571 million for Defence Force pay and projects.
New Zealand’s ability to cope with climate change will be strengthened as part of the Government’s focus to build resilience as we rebuild the economy, Climate Change Minister Simon Watts says.
Judith Collins was generous with her use of dollar signs in explaining how the $571 million of new Defence funding (over four years, let it be noted) would be spent –
- $163 million will go to improving remuneration for New Zealand Defence Force personnel and
- $408 million to upgrading equipment and infrastructure.
Subject to Cabinet approval, a project will begin to replace the Unimog and Pinzgauer trucks, the NZDF’s workhorses, and most frequently deployed vehicles.
Replacement vehicles will have integrated communications that will enhance interoperability with regional and global partners, such as Australia, Canada, the United Kingdom and the United States.”
The other projects for which funding has been allocated through Budget 24, subject to Cabinet approval, are:
- The next phase of an upgrade to the NH90 helicopter navigation systems and radios;
- upgrading the regional supply facility and logistics model at Linton Military Camp;
- modernising devices and productivity tools;
- upgrading some digital services; and
- improving national maritime domain awareness.
“Together these remuneration increases and projects will help boost our economy while ensuring New Zealand is ready, willing and – crucially – able to play its part internationally,” Ms Collins says.
“The world is increasingly unstable. We have only to look at events in the Ukraine and Middle East to see how quickly people’s lives can change.
“This Budget announcement is a signal that New Zealand is ready to step up and play its part to protect the freedoms that so many of us take for granted.
“The next step is to consider options for an updated Defence Capability Plan which will shape our future investment decisions around the equipment we need as we step up.”
Funding fact sheet:
OVERALL BUDGET PACKAGE: $571 million, most of it over four years
PERSONNEL: $163 million for remuneration for uniformed personnel
PROJECTS: $408 million, most of it over four years, comprising of $127 million in operating funding and $281 million in capital funding.
All except $19 million of the capital funding is forecast to be spent over four years from 2024/25; the remaining $19 million is forecast to be spent in the three years after that (2028/29-2030/31).
SAVINGS: $107 million over four years – $99 million from NZDF reinvested back into remuneration. In addition, there is $8 million in savings from the Ministry of Defence
SAVINGS MADE FROM: Savings have been identified primarily from projects ending and a reduction in international and domestic travel, as well as a decrease in spending on contractors and consultants. Major projects are expected to continue as planned
Defence project details
Military equipment
NH90 Helicopter upgrade: Navigation and secure radios: The latest phase of a project updating aircraft systems, this project will deliver a new navigation system for the NH90 helicopter that fully complies with updated Civil Aviation Authority requirements, and complete an upgrade to the NH90 fleet’s encrypted radios.
The radio upgrade is a requirement to maintain interoperability with other Defence Force assets and with our overseas partners, such as Five Eyes and NATO countries. The upgrade will allow the secure transmission of sensitive information between the helicopter, other aircraft, ships, ground forces and Headquarters.
Military operational vehicles: This project begins the replacement of NZDF’s most deployed vehicles – the 40-year-old Unimogs and Pinzgauer trucks. Widely used to carry personnel and equipment and provide off-road mobility when working with regional and global partners offshore, and closer to home during events such as support to the Cyclone Gabrielle response, these replacement vehicles will also provide modern, integrated communications to enhance interoperability with partner nations.
Improving protection against maritime threats: Funding for a subscription to a cloud-based computer application providing a real time picture of what is happening in New Zealand’s maritime domain. The platform will be used by multiple government agencies and increase New Zealand’s ability to detect and respond to malicious activity, natural disasters, and potentially hostile vessels, including illegal fishing, in our exclusive economic zone and across the Pacific.
Defence estate and infrastructure
Upgrading the regional supply facility and logistics model at Linton Military Camp: Construction of a third building within the Consolidated Logistics Project, a centralised warehouse to house the deployable supply company, regional equipment pool, camp quartermaster store, and goods distribution function for Linton Military Camp.
Homes for Families (Part Two): Delivering 35 leased homes for NZDF personnel to support the operation of Devonport Naval Base. This replaces housing at Devonport and the North Shore which is being progressively transferred to iwi groups under Treaty settlement legislation.
Upgrading digital services: This is phase one of a project to upgrade the NZDF’s classified environment. This environment is essential to maintain secure ways of working with partner countries.
Modernising devices and productivity tools: This project will fund the replacement of outdated desktop terminals with mobile devices to improve the productivity of NZDF personnel and staff, both uniformed and civilian. It will also provide new meeting room technology and the ability to collaborate anywhere, anytime, to support mobile ways of working.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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