1. Subject to Government approval, progress the light operational vehicles project for the Army

• On 11 December 2000 the Government approved expenditure of $0.566 million (GST inclusive) in 2000/01 and 2001/02 to meet the costs of completing the tender phase for light operational vehicles.
• A revised Invitiation-to-Register (ITR) was issued in December 2000 for the supply of 308 light operational vehicles. Ten responses were received. Due to the importance Army placed on the mobility of the vehicles the responses will be evaluated by the Australian Army Land Authority using the NATO Reference Mobility Model. The results will be considered and a recommendation made to the Ministry of Defence Tenders Review Board in August 2001 on which vehicles should remain in the formal tender process.
• The original budget of $0.329 million (GST exclusive) in 2000/01 was reduced in Supplementary Estimates to $0.235 million (GST exclusive). Actual expenditure to 30 June 2001 was $0.116 million (GST exclusive).

• Following on from the Government's May 2001 defence statement, a revised Force Development Proposal is awaited from the New Zealand Defence Force prior to seeking Government approval to proceed with the project.

• Following on from the Government's May 2001 defence statement, a revised Force Development Proposal is awaited from the New Zealand Defence Force prior to seeking Government approval to proceed with the project.

• The Chief of Defence Force approved expenditure of $4.948 million (GST exclusive) in 2000/2001 to purchase special operations communications. The Letters of Offer and Acceptance from the United States Department of Defence were signed on 16 May 2001 Delivery of the equipment commenced in January 2001 and is expected to be complete by May 2004.

• On 20 September 2000 the Government approved expenditure of $134.126 million (GST inclusive) over financial years 2000/2001 to 2002/2003 to purchase tacticle mobile communications equipment. The Letters of Offer and Acceptance from the United States Department of Defence were signed on 11 October 2000 Delivery of the equipment commenced in February 2001 and is expected to be complete by October 2002.

• Government announced that it did not wish to proceed with this project in its current form. The project has been cancelled. Any alternative capability will be considered in the context of the current capability reviews.

• On 27 June 2001 the Government approved expenditure of $652.833 million (GST inclusive) over financial years 2000/2001 to 2004/2005 to purchase 105 light armoured vehicles.
• The Prime Minister signed a contract with General Motors Defence on 29 January 2001. The first batch of vehicles is due for acceptance in March 2003 with the last due May 2004.

• In light of the Government's decision to sell HMNZS Charles Upham, the project has been cancelled. Any requirement for another vessel will be considered in the context of the current capability reviews.

• This project remains in abeyance pending the outcome of the capability reviews.

• A top level User Requirement, and scope for a Project Definition Study, have been approved by the Secretary of Defence and Chief of Defence Force. It is currently planned that the study will be undertaken about June 2002.

• It was expected that the first four helicopters would be delivered by 30 June 2001 but contractor delays have caused this to slip to 30 September 2001. The fifth helicopter remains on schedule for delivery in the first quarter of 2003.

• The 24 heavy machine guns were introduced into service during the period June 2000 to March 2001.
• A targeting and fire control unit was to be purchased in 2000/01 to complete the project, but this equipment will now be included in the direct fire support weapon (area) project which has not been approved by Government.

• The simulator was commissioned in September 2000. The project was delivered on time and within budget.

• The autopilot has been installed and tested in two aircraft. The contractor is currently resolving a system functional problem before further aircraft are modified. The project is slightly behind schedule but remains within budget.

• The sixth (and final) aircraft is almost complete. The project is expected to be completed ahead of schedule and with a substantial budget saving.

• The final equipment deliveries were made in 2000 and introduced into service. The project has been completed within budget.

• The warranty period for HMNZS Te Mana was completed on 19 October 2000. There are fourteen class issues being closely monitored. The way ahead is clear for all but two of these class issues. None of these issues are assessed as having significant financial implications at this time.

• No approval has been given to commit to this study.

• Supported meetings of the Defence Industry Committee of NZ (DICNZ) on 11 July 2000, 17 October 2000 and 28 February 2001;
• Held interviews with companies nominated for DICNZ Awards of Excellence;
• Arranged for the presentation of the Defence Industry Committee Awards of Excellence at a dinner on 2 November 2000.

• Supported activities of the New Zealand companies forming the Defence Technologies NZ Joint Action Group (JAG) by assisting in the planning of the November Defence Industry Seminar.
• Provided assistance to the JAG planning the 2001 Defence Industry Seminar.
• Attended JAG meetings on 12 July 2000 and 4 October 2000 where updates on Defence projects were presented.
• The JAG has confirmed that the Ministry has provided adequate industry advice in support of Tradenz export activity.

• Database material was obtained from New Zealand companies in January 2001 and forwarded to Australia in March for publication in May 2001.

• In addition to briefing JAG meetings on future work (see above), a briefing on 'Doing Business with Defence' was given to a Dunedin City Council business cluster on 7 September 2000 and the Wellington Chamber of Commerce on 28 March 2001.