Govt’s spending cuts could force NZDF to defer necessary maintenance

The Government's intended spending cuts could have a significant impact on the functionality of the Defence Force. Photo / NZPA

The New Zealand Defence Force may have to defer necessary maintenance on its assets and estate if it is required to make a 6.5 per cent reduction in spending in line with the Government’s aims.

It formed just part of a confronting picture painted by Defence Force chief Air Marshal Kevin Short who told MPs of a defence force that was burdened by attrition, suffering from delays in funding provision, managing climate change impacts on its bases, and facing a defence estate that was ageing faster than it could be replaced.

Short appeared alongside Defence Secretary Andrew Bridgman in front of the Foreign Affairs, Defence and Trade Select Committee for the annual review of the NZDF and Defence Ministry.

The NZDF is among the areas of the public service required to find 6.5 per cent in savings as part of the Government’s desire to reduce public spending.

Defence Minister Judith Collins, who spoke to the committee before Short, referenced the cuts by saying she didn’t want the Defence Force doing anything that wasn’t core business such as “exploring your personal wellbeing”, while also calling for urgent investment to address staff retention challenges.

Short said advice provided to Collins thus far included how the NZDF could only absorb some of the savings requested.

“To this point we can absorb some of the savings but to absorb more than what I call the trimming from administration, travel, contractors, that sort of thing, we start to get into not doing maintenance on infrastructure, not doing maintenance on our major platforms.”

Attrition remained a central challenge with 26.9 per cent of skilled staff having left the NZDF in the last two years, according to Short. Overall attrition had dropped in the last 12 months from 15 per cent to 11.2 per cent, not yet within the target range of below 10 per cent.

Short said the loss of experienced personnel had continued to “hollow out our organisation”, which faced a “long road of regeneration” given the years it took to sufficiently train staff.

The Defence Force had recently resorted to incentive payments to retain staff. That even applied to members of New Zealand’s elite NZSAS special forces regiment who, as reported in the Herald, had been offered payments of up to $30,000 to prevent the regiment’s collapse.

NZSAS troopers disembark from a Chinook helicopter in Afghanistan. Photo / NZDF

Short explained that a one-off payment of $3600 had been made to all staff alongside the introduction of an interim allowance for time spent out at sea or in the field.

Of the SAS retention payments, Short said they were not a lump sum but done in instalments which required a commitment for members to stay with the Defence Force.

He claimed it had resulted in requests to resign being withdrawn and even lead some who had left to request a return if they were able to access the pay boost, which Short said they were.

There were several factors leading to the high attrition levels. One was the ability to earn more money - Short said it wasn’t uncommon for those leaving the Defence Force to get a $20,000-$50,000 pay rise.

Another was the hangover from Covid-19, which Short described as the “catalyst” for staff leaving the Defence Force.

Short said the goals of some who had joined the Army, Navy and Air Force had gone unfulfilled through the pandemic when they were tasked with manning quarantine facilities, and were now looking elsewhere for their desired training or overseas experience.

Another was the living conditions of those on Defence Force bases. Short said many of the NZDF’s 4700 buildings and 1800 houses were getting towards “extended life”, which drove down morale.

Defence Force chief Air Marshal Kevin Short is warning how the cuts might impact the Defence Force. Photo / NZME

He warned that unless $400 million was invested, the “degradation” of the defence estate would continue and exacerbate already crippling compliance costs.

Climate change was also threatening infrastructure with Short citing bases being impacted by sea level rise and stormwater inundation.

Short assured MPs the Defence Force was ready and willing to respond to immediate disasters or requests for humanitarian assistance, but he said shortages would arise if deployments extended beyond six to 12 months or if incidents occurred concurrently.

Short also detailed how growing interest in the Pacific from global powers was influencing New Zealand’s defence capabilities.

He spoke of how Australia’s defence force was “reshaping” in light of a singular threat from a single direction - a reference to China. That had meant investment in long-range weapon systems and equipping ships to use them.

Given New Zealand relied on having similar equipment to Australia to reduce cost, New Zealand had to shift alongside its only formal defence ally.

However, Short clarified that New Zealand looked to retain a “balanced force” which could respond to a range of incidents instead of allowing a single threat to drive its decisions.

Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.