Dialogue: Plan gives a sustainable, affordable path forward

Prime Minister HELEN CLARK says the Government's defence policy will create a modern, efficient and high-quality Defence Force.

The Government has released details of a comprehensive plan to build a modern, efficient and high-quality Defence Force. This provides for a modest increase in net operating funding for defence, and total capital investment of more than $2 billion over the next 10 years - dispelling the myth that the Government was about to cut defence spending.

The new defence plan provides a coherent, comprehensive and sustainable strategy for the Defence Force. Perhaps the least noticed but most significant change is the joint approach to structure and operations to improve coordination between the Army, Navy and Air Force.

On July 1, the joint force operational headquarters begins operation at Trentham. The ability of the headquarters to operate effectively will be enhanced by moves under way to acquire a modern joint command and control system.

We will reorganise and rationalise the headquarters of the Defence Force and the three single services to reflect a joint approach to planning and to managing the force.

A new maritime coordination centre will be established and located with the joint force operational headquarters at Trentham. It will be responsible for integrating the work of all agencies to ensure that there is a comprehensive national strategy for managing maritime risks.

The plan means we will have a modernised Army. New equipment will place it in the first tier of forces internationally. We will retain the structure of the Army based on two light infantry battalions within a brigade framework. These two battalions provide a capacity to sustain a 600 to 900-person commitment for a year and a 900 to 1200-size battalion for six months.

These levels can be enhanced by the deployment of territorials when and where necessary, as has been the case in East Timor. Service in the Territorial Army needs to be more attractive to both territorials and their employers. The Government is looking at ways to address these issues.

As had been announced, we are acquiring new armoured vehicles, tactical communications and light operational vehicles to replace the Land-Rovers to remedy the major immediate equipment deficiencies.

Other investment requirements for the Army will include close-in fire support, vehicles and sensors to equip the reconnaissance companies, command and control equipment and combat service support equipment. Other capability issues to be addressed are engineer support, artillery, air defence and electronic warfare.

The Navy will be enhanced with vessels better matched to New Zealand's security interests and needs.

The two Anzac frigates will continue in service. Work will proceed on identifying a suitable multi-role vessel with long-distance and Southern Ocean capabilities, to be phased in as the Canterbury is retired.

The Charles Upham will be sold after it completes its charter in July. The requirement for an appropriate sealift capability will be considered as part of a review of the composition of our maritime surface fleet. This review will also examine how best to meet civilian requirements for coastal and mid-range offshore capabilities.

We will consider the need for any further combat and detection equipment on the Seasprite naval helicopters.

The Air Force will be refocused and updated with the Orion fleet retained and provided with a limited upgrade, using good-quality commercial systems wherever possible. The Air Force will also undertake a study to determine the best options for short and medium-range air patrol.

The air combat force will be disbanded. The Government will work closely with the personnel involved to minimise the uncertainty and disruption which occurs with restructuring. We will investigate the feasibility of equipping Orions with missile capability.

The C-130 Hercules fleet will be upgraded or replaced, as will the Iroquois helicopter fleet. A study will be completed as soon as possible to identify the options for replacing the Boeing 727 transport planes, including ownership, or the possibility of leasing or chartering.

Defence funding will be put on a sustainable footing. There will be modest increases in the net operating funding of defence. Decisions incorporated in the 2001 Budget increase the net operating funding available for the Defence Force by more than $300 million over the next five years and some $700 million over the next 10 years.

There will also be a significant requirement for additional capital contributions to pay for future investments. It is estimated that up to a $1 billion injection will be required over the next 10 years, over and above the funding built up in the Defence Force depreciation account.

The total capital investment required may be more than $2 billion over the next 10 years. The final amount will depend on the specifications and timing of individual projects, the contract prices and the prevailing exchange rate at the time of purchase.

The new defence plan aims to develop adequate depth in our defence capability, rather than carry on with inadequate breadth. Over the past 10 years, the Defence Force was asked to maintain a wide range of capabilities with inadequate equipment. Highly trained personnel were often left with equipment which was antiquated or they were under-equipped.

This plan gives the Defence Force a sustainable and affordable path forward. The Army, Navy and Air Force are being given well-defined roles, modern equipment to match those roles, and certainty of funding to ensure that they can effectively perform the tasks that New Zealand asks of them.

The plan is based on comprehensive reviews of our strategic position and our requirements in maritime patrol, land forces, air combat, and sealift capability. It meets our strategic needs and allows us to contribute usefully to international operations where we decide to engage.

It sets out the future structure for the Defence Force. It is not possible to reverse overnight years of neglect and underfunding of defence. It is not possible to rebuild everything, and to replace all obsolescent equipment, in the face of inflation and the increasing cost of technology.

What this plan does is to allow the reconfigured Defence Force to maintain the highest operational standards in the capabilities it has. New Zealand troops will be able to be deployed with confidence well into the 21st century.