New Zealand

The Ministry of Defence (MoD) of New Zealand is responsible for providing advice to the Government towards the safeguarding of the interests of the country, the purchase of major Defence equipment according to the New Zealand Defence Force’s (NZDF) needs, while assessing at the same time the functions, duties, projects and capability delivery.

The New Zealand Defence Force (NZDF) consists of the Royal New Zealand Navy (RNZN), the New Zealand Army and Royal New Zealand Air Force (RNZAF) (see chart below). The NZDF is charged with the development and sustainment of specific military capabilities, skills and the cultivation of a ‘culture’, necessary to meet the demands appearing in the operating environments. All the aforementioned bodies, deliver their maximum, under a joint and collaborative concept, known as “Joint Task Force”.

The fundamental roles of the nation’s Armed Forces, are the protection of the country’s sovereignty, contributing to national resilience, as part of the fulfilment of the country’s commitment to its ally Australia, supporting New Zealand’s civilian presence in Antarctica and responding to activity in the Southern Ocean, and finally contributing to operations in the South Pacific, in support of peace in the Asia-Pacific region, while promoting New Zealand’s wider interests and security partnerships.

In a different segregation, the Defence Force, comprising of 14,199 people, consists of the Regular Force (64.2%), the Reserve Force (16.3%) and Civilian staff (19%).

New Zealand Defence Force has the largest Search and Rescue responsibility worldwide, for over 30 million km² (about 12.5% of the world’s total surface), and 15,134 of coast line.

Moreover, the country has a history of contributing to international efforts to resolve conflict. The NZDF is a valued international coalition partner, committed to peace and security, and regularly works alongside international allies on operations and exercises throughout the world. Currently (at the end of 2016) there are NZDF personnel deployed on 14 operations and UN missions across ten countries, including:

• Afghanistan (8 personnel)
• Antarctica (8 personnel)
• Iraq (106 personnel)
• Middle East (8 personnel)
• Sinai (26 personnel)
• South Korea (5 personnel)
• South Sudan (3 personnel)
• United Arab Emirates (11 personnel)

At any time there are many other Defence Force personnel on other overseas activities and exercises.

The total Defence Budget allocated for the 2016/17 financial year, is about NZ $3.28 billion. Of this amount, about NZ $2,038 million will be invested in Air Force, Army, and Navy capabilities (to enable Joint Operations and other tasks).

Also, about NZ $495 million will be allocated to Multi-Category Appropriations (MCA) for Advice to the Government, Operations Contributing to New Zealand's Security, Stability and Interests, and the Protection of New Zealand and New Zealanders, and about NZ $747 million will be directed, as departmental capital expenditure, to the purchase or development of assets for use by the NZDF.

According to the New Zealand’s 2016 Defence White Paper, a NZ $20 billion defence programme of capital investment has been planned to take place, over the next 15 years. Through this plan, New Zealand government’s is committed towards the modernisation and increased responsiveness of the Defence Force, while increases in personnel, investment in major capabilities and infrastructure have been planned up to 2030; these will allow the NZDF to successfully undertake domestic, regional and international security tasks.

Moreover, as planned in the 2016 National Budget, under additional investments within the timeframe of financial years 2016 to 2020, NZ $179 million will be allocated to the country’s intelligence agencies, so as to continue to provide associated services and NZ $20 million for the establishment of a new national Computer Emergency Response Team, able to combat cyber-attacks and cyber-crime.

Overall, despite some fluctuations, in recent years the Defence Budget has followed an upwards trend, up to now (FY 2016/17). Budget will be reduced slightly in the next few years, as has been planned (see chart below).

An additional NZ $ 482 million for Defence & Security purposes have been planned, of which some NZ $ 300.9 million specifically for the NZDF (NZ $31.8 million in 2016/17, and NZ $89.7 million in each of the following three years). Further under this additional investment, the Ministry of Civil Defence and Emergency Management (MCDEM), is to be allocated some NZ $6.2 million of operating and capital funding, towards the better preparedness and associated response, in case of natural disasters.

As a consequence to the aforementioned, the Government has foreseen annual increases in the Defence Force operating and capital budgets, raising the relevant spending to about 1% of the GDP on average, up to 2030.

In 2018, Defence will undertake a review to ensure the affordability of the total investment as part of the Defence White Paper, and make any appropriate revisions up to 2035.

According to the 2016 Defence Capability Plan of New Zealand, investments spanning from personnel and logistics, up to ICT infrastructure and capabilities have been planned. Through this Plan, new capabilities’ investments have been confirmed, related to five areas, namely:

• Antarctic and Southern Ocean Operations
• Air Surveillance
• Littoral Operations
• Cyber Protection and Support
• Intelligence Support

A significant investment of $1.7 billion (from the aforementioned $20 billion) will be allocated towards the modernisation of the Defence Estate.

During the last decade, New Zealand imported US $413 million of military equipment. This mainly consisted of Ships and Aircraft.

The main providers of Arms imported by New Zealand, were the US, Australia, the Netherlands and France.

It should be stressed here that New Zealand has realised as a consequence of previous experiences, the importance of mitigating risks, inherent in new technologies’ early development work; therefore, in order to minimise high risk procurements and reduce unit costs, New Zealand’s Defence Force has focused on the acquisition of MOTS (Military Off The Shelf) and COTS (Commercial Off The Shelf) products, while avoiding at the same time the early adoption of new technologies.

The government’s decisions in terms of major defence expenditure, are based to a great extent on the identification of the dependencies between individual investments. As for this, Defence has recently adopted a ‘portfolio management approach’ and has developed a ‘whole life costing methodology’, for long term planning and individual capability initiatives. In addition, in order to meet the New Zealand’s Defence Force requirements, close collaboration of the local defence industry with the Defence Procurement agency, is essential.

Moreover, realising its position as a ‘small’ customer in the Military market, it is imperative for New Zealand to shift the timing of funding, to meet acquisition opportunities at the moment they are presented. Indicative of the aimed ‘agility’ in such procurements, is the successful –due to the rapid approval process followed- acquisition of 194 Rheinmentall MAN Medium and Heavy Operational vehicles in 2013, benefiting from the economies of scale of the large UK purchase at that time.

The value of military capability projects that are underway, or planned until 2030, accounts for NZ $20 billion (about €13.2 billion), as mentioned previously. Of this amount, some NZ $15million are to be spent on the procurement and the whole-of-life costs of military equipment.

Some major capability programs planned or already underway by the NZDF, include:

Source: http://www.defence.govt.nz