Annual Report for the year ended 30 June 2004
Part 1: Overview
Secretary of Defence's overview
Introduction
The Ministry of Defence has three roles, which are founded on section 24 of the Defence Act 1990. These roles are:
- to provide timely high quality advice to help the Government make well-informed decisions about the defence of New Zealand and its interests;
- to conduct audits and assessments of the New Zealand Defence Force and the acquisition activities of the Ministry of Defence; and
- to arrange for the acquisition of significant items of military equipment needed to meet New Zealand Defence Force capability requirements.
These roles are reflected in the Ministry's Statement of Intent. They contribute to the Ministry's high level outcome: a secure New Zealand that contributes to international security.
This high level outcome, which is shared with other key government agencies, is based on a fundamental principle: a secure New Zealand is a critical precondition to economic growth and social wellbeing. New Zealand's security is directly affected by the security of other countries, so our present and future prosperity is predicated on a peaceful and stable international and regional environment. New Zealand contributes to regional and international security to ensure its own security.
How well we do in meeting the high-level outcome is measured against an intermediate outcome: Ministry of Defence advice and actions are credible and respected, and help achievement of the Government's defence policy objectives.
The Government's defence policy objectives are set out in The Government's Defence Policy Framework (June 2000) and the Government Defence Statement - A Modern, Sustainable Defence Force Matched to New Zealand's Needs (8 May 2001). The objectives also underpin the Long-term Development Plan (LTDP), which is updated annually. The LTDP is an important planning tool for future decisions on defence capability acquisitions.
Defence policy making is an uncertain business. It involves planning to meet unknowable challenges in unforseeable locations. It is about understanding the unpredictable nature of our strategic environment and how it affects New Zealand's defence and security interests. These are key challenges for the Ministry if it is to meet its responsibilities as an adviser to the Government on national security matters.
The strategic environment has become more complex and uncertain following the 11 September 2001 attacks on the United States. The international system is now dominated by non-conventional threats for which there are no easy solutions. The ongoing struggle against global terrorism is likely to remain at the forefront of international attention for the foreseeable future; the attacks in Madrid, Riyadh, and Ankara during the past year only confirm this. The United Nations has faced unprecedented challenges, old alliances have become strained, and relationships have undergone fundamental change. On top of this, the proliferation of weapons of mass destruction continues relatively unchecked.
None of these events leave New Zealand untouched and each, in its own way, relates directly to our national interests. New Zealand's challenge, therefore, is to navigate a way through this difficult phase in international relations. As a small and independent nation, we also have a strong interest in the building of a more just and peaceful world, and a very direct interest in translating this into our own South Pacific region. The Ministry has an integral role in advising the Government on how to manage these issues.
Policy and Planning
The Secretary of Defence is the principal civilian adviser on defence matters to the Minister of Defence and to the Government. The Chief of Defence Force, who commands the New Zealand Defence Force, is the principal military adviser. Development of policy advice in relation to defence, security and defence capability issues is a core activity for the Ministry.
To facilitate a greater sense of "jointness" between the Ministry of Defence and the New Zealand Defence Force, both organisations cooperate and consult closely. This coordination is effected through the Office of Chief Executives, which brings the Secretary of Defence and the Chief of Defence Force together to discuss policy issues of mutual interest; the Executive Capability Board, which oversees major capital acquisition projects; and weekly meetings between the Vice Chief of Defence Force and the Ministry's Deputy Secretary (Policy and Planning) that are designed to increase communication, cooperation and visibility within the defence establishment.
An important point of consultation and ongoing cooperation between the two defence organisations is the Defence Policy and Planning Unit. The Unit is an integrated Ministry and New Zealand Defence Force policy unit. Its principal role is to provide a single stream of information and policy advice to the Chief of Defence Force and to the Secretary of Defence, and through them to the Minister of Defence and the Government. The Defence Policy and Planning Unit consists of the International Defence Relations Branch and the Strategic Policy Branch and is staffed by civilian personnel from both organisations.
Capability development
Key capability development issues involving the Unit over the past twelve months included: Project Protector; a review of the Government's ocean-based research vessel needs; consolidation of Air Force operations at Ohakea; modification of the Boeing 757 aircraft; and a review of mobile medical services.
Project Protector
Under this project, the Government is acquiring a multi-role vessel, two offshore patrol vessels and four inshore patrol vessels. While the ships will be operated by the Royal New Zealand Navy, a number of government agencies will utilise the vessels, including New Zealand Customs, the Department of Conservation, Ministry of Agriculture and Forestry, Ministry of Foreign Affairs and Trade, Ministry of Fisheries, Maritime Safety Authority of New Zealand and New Zealand Police. The Unit was responsible for undertaking external consultation with agencies on the tender outcome and the options to be considered by the Government.
Hydrography Review and Review of Ocean-Based Needs and Research Vessel Utilisation
In November 2003, the Minister for Crown Research Institutes and the Ministers of Defence and Land Information agreed that the New Zealand Defence Force contract with Land Information New Zealand for the supply of hydrographic services by the Royal New Zealand Navy should be renewed. The Ministers also decided that the Ministry of Defence and the Crown Company Monitoring Advisory Unit should lead a review to identify the extent and nature of the Crown's long-term ocean-based research, scientific, hydrographic/bathymetric surveying and related needs to protect the nation's defence, scientific and economic interests ("ocean-based needs") and to assess issues related to the utilisation, capability and capacity of vessels to meet such needs. The review was substantially completed before being incorporated into a Cabinet paper reporting on the wider issue of meeting Government's hydrography, bathymetry and ocean-based research needs.
Ohakea Consolidation Project
A joint New Zealand Defence Force/Ministry team, together with consultants, has been working on the development of a business case and a range of options for consolidating Royal New Zealand Air Force operations at Ohakea Airbase. These options will be presented to the Government.
Boeing 757 Modification Programme
Together with the New Zealand Defence Force, the Ministry provided advice to the Government on the programme to modify the two RNZAF Boeing 757 aircraft to a combined passenger/freight configuration. The two aircraft, which were acquired to perform a strategic airlift role in support of the Government's defence policy, have been in service since mid-2003.
Mobile Medical Review
Over the past year the Unit has led a review of the New Zealand Defence Force's deployable mobile medical and surgical facilities. The review is also considering future capability options.
Other Projects
The Unit provided advice on options for disposing of Whenuapai Airbase and several Long-term Development Plan Army projects.
The Capability Management Framework
A key development in the past year has been the introduction of the Capability Management Framework, a joint project of the Ministry and the New Zealand Defence Force. The Capability Management Framework provides guidance on management and governance for defence capability work. It focusses on management systems for both operational and financial risks, to ensure that long-term investments in defence capabilities provide value for money and meet New Zealand's defence needs. The Capability Management Framework will help ensure that the capabilities acquired by the New Zealand Defence Force are consistent with the Government's defence policy as well as being affordable and sustainable.
Long-term Development Plan
First released on 11 June 2002, and updated annually, the Long-term Development Plan is a planning tool to enable decisions on defence acquisitions to be assessed, prioritised and measured in the context of current defence policy and affordability. The Plan, which links defence policy objectives with capability requirements in the 2001 Defence Statement, contains a comprehensive list of major projects (projects over $7 million), with preliminary costings, timings, and priorities.
The Government has directed that the Long-term Development Plan be managed within three financial parameters:
- up to $1 billion, in nominal terms, in capital injections over the next 10 years, which, with retained depreciation, will provide at least $2 billion for new acquisitions;
- any inflationary pressure to be managed within these constraints until 2005/06;
- leasing options may be considered where there is a neutral trade-off between capital and operating expenditure.
The Long-term Development Plan does not give Defence authority to proceed with any of the projects set out in the Plan. Each project is brought forward for approval and is judged in the context of the Government's defence policy, and its priority and affordability in the Long-term Development Plan.
Key projects developed in the past year include Project Protector naval vessels; medium-range anti-armour weapon; radar, automatic cueing and identification friend-or-foe systems for the existing very low-level air defence system; light operational vehicles; utility helicopters; new equipment for the New Zealand Special Air Service; engineering equipment for the New Zealand Army; and the P-3 Orion upgrade project.
Implementation of the Long-term Development Plan will continue to be an important part of the Strategic Policy Branch's work in the coming year. This will include work on projects such as improved helicopter capability. The Plan will be reviewed and updated in August 2004.
Arms control and disarmament, Antarctica and Oceans policy
Arms control and disarmament continues to be of interest to Defence. The Unit worked with the Ministry of Foreign Affairs and Trade on small arms, the Certain Conventional Weapons Convention, and export controls. It was also involved in Officials' Antarctic Committee meetings and continues to be engaged in the inter-agency Oceans Policy process.
The Defence Capability and Resourcing Review
Unit staff have contributed to the Defence Capability and Resourcing Review, which commenced in January 2004.
The objective of the Review is to examine the New Zealand Defence Force's current capability and resourcing situation, to identify outputs the New Zealand Defence Force will need to deliver over the next decade, and to assess the optimum future configuration for the Defence Force. The Review will also consider the Ministry's capability to support the Government policy process. The Review is scheduled to be reported to Ministers in October 2004.
Closer Defence Relations with Australia
No strategic partnership in our region, and possibly beyond, is closer than that between Australia and New Zealand. A close defence relationship with Australia, in support of common interests for a secure and peaceful region, is a key policy objective in The Government's Defence Policy Framework. Both countries share a strong commitment to the security and stability of the Asia-Pacific region, as reflected in our combined efforts in Bougainville, Timor Leste and, more recently, Solomon Islands. In 2003, the two Defence Ministers agreed to a new joint statement on Closer Defence Relations that set an agenda to give greater substance to cooperative activities.
Significant bilateral cooperation has occurred in a number of areas of capability development, including the P-3 Orion maritime surveillance aircraft, Army equipment, and ANZAC frigate upgrade projects. The two defence forces continue to consult on their respective programmes for the replacement of troop-lift helicopters. New Zealand Defence Force officers are being placed in Australian Army and Navy project offices.
Collaborative work continues on the development of command and control systems which will enhance interoperability in combined operations. Arrangements for cooperation with strategic airlift and sealift between the Australian and New Zealand defence forces are also nearing completion. Planning for Exercise Joint Kiwi to be held in early 2005, which will be the first joint and combined exercise to be conducted by New Zealand Joint Force Headquarters since its establishment in 2001, is also underway. These activities are important for maintaining and deepening trans-Tasman operational proficiency.
South Pacific
New Zealand's national security interests include both responsibilities for and risks arising from the Pacific region. We have formal constitutional obligations for the defence of the Cook Islands, Niue and Tokelau. The Treaty of Friendship with Samoa brings a responsibility to consider sympathetically any request for defence assistance by the Samoan Government. We are also committed to consulting regularly with our island neighbours on defence and security issues, including advice on potential security risks. New Zealand also has international obligations, including providing assistance with surveillance of Pacific exclusive economic zones, maritime search and rescue, disaster relief and peacekeeping.
Pacific island countries, particularly in Melanesia, face a growing number of security challenges. These are linked not to conventional areas of interstate conflict or military action, but to cumulative stresses arising from population growth, ethnic tensions, governance failures, fragile economies and the impact of global trends. A heightened sense of vulnerability to transnational crime has obliged countries in the region to rethink questions of Pacific security and to broaden engagement strategies. In June last year, members of the Pacific Islands Forum agreed that the breakdown of law and order in Solomon Islands, and its potential exposure to transnational crime, called for a concerted regional response.
One of New Zealand's mechanisms for defence engagement with the Pacific is the Mutual Assistance Programme. A principal objective of the programme is to increase the professionalism of the region's disciplined forces through the provision of training and technical support. In August 2003, the Government endorsed a more proactive engagement with Pacific island countries in combating transnational crime, including terrorism. The Mutual Assistance Programme is being recalibrated to help in preventing those conditions that allow transnational crime to prosper.
Papua New Guinea
During the year, the Minister of Defence hosted a visit by his Papua New Guinea counterpart. The visit provided an opportunity to confirm our willingness, where practicable, to provide continued support and assistance to the Papua New Guinea Defence Force, especially through the Mutual Assistance Programme. It also provided an opportunity to reaffirm our support for efforts to reshape and reform the Papua New Guinea Defence Force, and to explore how we might assist this process.
Solomon Islands
In April last year the Solomon Islands Prime Minister asked Australia for assistance in restoring law and order. Australia responded positively, and sought participation from New Zealand and other regional partners. Our contribution, at its peak in August 2003, comprised 226 personnel and four Iroquois helicopters.
The first phase of this multinational operation, the Regional Assistance Mission, has been an undoubted success: law and order has been returned to Solomon Islands. Now, with this improvement in the security situation the overall military presence is being reduced. For the next two years a small number of New Zealand military personnel on a rotational basis with Australia, Fiji, Papua New Guinea, and Tonga, will support a platoon in Solomon Islands.
Fiji
The Mutual Assistance Programme with Fiji was suspended following the overthrow of the elected government in May 2000. The New Zealand Defence Force continues to provide support in maritime surveillance as well as search and rescue. Limited peacekeeping predeployment training has also been given to Republic of Fiji Military Forces personnel serving in Timor Leste, Bougainville, and Solomon Islands. In March, Ministers agreed to the gradual resumption of bilateral defence cooperation with Fiji. Talks with Fiji officials on reengagement priorities will take place shortly.
Samoa
Defence relations with Samoa, while not substantial, are close and enduring. Under the Mutual Assistance Programme we provide training for the Samoan Police, including support to the Pacific Patrol Boat programme and for the deployment of Samoan officers to United Nations operations in Timor Leste and Liberia. The reestablishment in June of a Royal New Zealand Navy Technical Advisor (Communications) position was part of our commitment to increase the professionalism of the Samoan Police. Other defence support includes maritime surveillance.
Southeast Asia
Five Power Defence Arrangements
The Five Power Defence Arrangements, involving Singapore, Malaysia, Australia, New Zealand and the United Kingdom, make a significant contribution to regional security. The New Zealand Defence Force participates regularly in Five Power Defence Arrangements exercises, meetings and other activities. In June 2004, the Minister of Defence attended the Informal Defence Ministers' Meeting in Singapore, where Ministers endorsed a set of proposals for greater cooperation in tackling non-conventional security threats, such as maritime terrorism, piracy and people smuggling.
ASEAN Regional Forum
The ASEAN Regional Forum, with its broad regional membership, has become a valuable forum for discussion and cooperation on security issues. It is the only pan-regional forum devoted to such issues. New Zealand has taken an active part in Forum meetings and working groups and in developing the many confidence-building measures that have resulted. We have also actively encouraged efforts to enhance defence participation in ASEAN Regional Forum processes and, along with Singapore and China, helped develop the concept of an annual security conference for senior defence officials. The first such meeting will take place later this year. New Zealand defence officials attended the Intersessional Group meetings on confidence-building measures in China in November 2003 and in Myanmar in April 2004, and also the Senior Officials' Meeting in Indonesia in May 2004.
Singapore
New Zealand and Singapore share an active defence relationship. We maintain extensive defence interaction, with regular exercises, training and exchanges, and through close cooperation on peacekeeping. The Minister of Defence made a bilateral visit to Singapore in June, when he was hosted by his counterpart, Rear Admiral Teo Chee Hean, and also held discussions with the Coordinating Minister for Security and Defence, Dr Tony Tan.
Malaysia
The defence relationship with Malaysia has a long and rich history. Close links have been forged and maintained with our Malaysian counterparts through bilateral meetings, exercises and exchanges, multilateral engagement under the Five Power Defence Arrangements, and training provided under the Mutual Assistance Programme. The Minister of Defence met the Malaysian Defence Minister, Dato' Sri Mohammed Najib, in Singapore in June 2004.
Thailand
New Zealand's defence relationship with Thailand is focussed on training provided under the Mutual Assistance Programme and an increasing association in peace support operations. We are considering how to enhance cooperation in areas such as pre-deployment training for peace support operations.
Timor Leste
Because the security environment in Timor Leste remains fragile, the United Nations Security Council has extended the United Nations Mission in East Timor (UNMISET) for a further 12 months. The extended mission has been scaled down, and been given a modified mandate to sustain, strengthen and build upon the gains made to date assisting Timor Leste to attain self-sufficiency. We are providing three personnel to the downsized mission.
New Zealand also strongly supports the Timor Leste Government's efforts to improve its own defence and security capabilities. We have up to three personnel providing bilateral training and advisory support to the Timor Leste Defence Force.
Other Southeast Asian Nations
New Zealand maintains modest defence relations with Brunei and the Philippines, primarily through the Mutual Assistance Programme, and periodic exercises in Brunei. New Zealand continues to support the demining process in Cambodia through resident New Zealand Defence Force Technical Advisers. There is also periodic defence contact with Vietnam.
North Asia
China
Over the past twelve months, senior People's Liberation Army visitors to New Zealand included General Ge Zhenfeng, Deputy Chief of the General Staff and Lt Gen Xu Genchu, Vice President of the People's Liberation Army Academy of Military Sciences. In return, the Chief of Defence Force visited China. The fourth regular bilateral security dialogue, which took place in Beijing in April, provided another opportunity to discuss defence policies and priorities, defence linkages and regional developments.
Republic of Korea
The New Zealand Defence Force is connected to the Republic of Korea through bilateral military contacts and through continued participation in the multinational United Nations Command. To further this support for the United Nations Command, a New Zealand Defence Force officer began a six-month tour of duty in the Military Armistice Commission operations section in June 2004.
The Minister of Defence visited the Republic of Korea in April. New Zealand hosted the fifth round of political-military discussions in April and also hosted two Korean observers attending a tactical air force exercise the same month. The New Zealand Defence Force Command and Staff College visited Korea in September, and Korea sent three training ships to visit Wellington in December.
Japan
New Zealand and Japan have many common bilateral, regional and international defence interests. These include a shared commitment to regional stability and security, as demonstrated by our cooperation in Timor Leste, and the international campaign against terrorism. Japan re-established its refuelling arrangements for the Royal New Zealand Navy frigate operating in support of the maritime interdiction operation in the Arabian Sea. As Japan seeks to enhance its role as a coalition member in future multinational peacekeeping and military operations, the prospects for interaction with the New Zealand Defence Force will increase.
Following the third round of ad hoc security talks held in Wellington last December, it was agreed to formalise these consultations, giving them annual Defence Talks status. In February, the Japan Defense Agency decided to cross-accredit its Defence Attaché based in Canberra to Wellington. Consideration is being given to raising New Zealand's profile in Tokyo by establishing a resident Defence Attaché. The Minister of Defence visited Japan in August. The New Zealand Defence Force Command and Staff College returned to Japan for a study tour in September 2003.
The United Kingdom and North America
United Kingdom
Our longstanding defence relationship with the United Kingdom is important to the development of the New Zealand Defence Force. Cooperation extends across a wide range of activities, including the commitment of a light engineering group to the reconstruction effort in Iraq (which operates alongside British forces in Basra). Exercises, individual and unit exchanges, and specialist training, particularly Royal New Zealand Navy officers gaining experience with the Royal Navy, are all elements of our close relationship. New Zealand also contributes to British peace support operations in Bosnia and Sierra Leone.
United States
A key component of the bilateral defence relationship with the United States is related to counterterrorism. New Zealand remains one of a handful of countries contributing military forces to the stabilisation effort in Afghanistan and the maritime interdiction operation in the Arabian Sea. We are also contributing to the reconstruction of Iraq.
Canada
The New Zealand and Canadian defence forces work alongside each other in a number of ways. These include cooperation in Timor Leste, Bosnia, Afghanistan, and the Arabian Sea; exercises and exchanges; and active participation in the five-nation standardisation and technology sharing arrangements. In addition, the acquisition by the New Zealand Defence Force of 105 light armoured vehicles from Canada has increased contacts and interoperability between our two defence forces.
Afghanistan and Iraq
Afghanistan
New Zealand supports international efforts to help Afghanistan eliminate terrorist groups and develop its own capabilities through the deployment of Special Air Services personnel, contributions to the International Security Assistance Force, and training of the Afghan National Army. New Zealand is also providing a 100-strong Provincial Reconstruction Team, which was recently extended for a further 12 months to September 2005. Working in Bamian province, this team aims to assist the Afghan Transitional Authority extend its influence beyond Kabul. Its focus is on enhancing the security environment, as well as assisting in the provision of humanitarian support and development assistance to the Afghan people.
Iraq
Iraq has continued to dominate the international agenda over the last 12 months. New Zealand responded quickly to the humanitarian needs of the Iraqi people in the post-war period. Initially, two New Zealand Defence Force personnel were deployed to Iraq as part of the United Nations Mine Action Service operations. Since United Nations Security Council Resolution 1483 was passed on 22 May 2003, New Zealand has contributed 61 New Zealand Defence Force engineers and support staff to work alongside British forces in southern Iraq.
This light engineer group is restoring and establishing core services. The main focus is the provision of potable water in Basra. The group is constructing eight reverse osmosis water plants to supply drinking water. Other projects include bridge maintenance and school refurbishment.
Peace Support Operations
New Zealand has been a consistent contributor to peacekeeping missions for half a century. The Asia-Pacific region remains New Zealand's first priority for peacekeeping contributions, but our commitment to collective security and the rule of law requires ongoing contributions well beyond the region. Currently, our commitments are global in reach, with personnel carrying out peacekeeping, demining or nation-building activities in the Pacific, Middle East, Asia, Europe, and Africa. In total, approximately 500 New Zealand Defence Force personnel are presently deployed on various missions.
Acquisition
The Ministry is responsible for procuring all major items of capital equipment for the New Zealand Defence Force. The procurement process is often lengthy. It commences with the Government giving approval in principle to an acquisition on the basis of a concept of operations and functional performance specifications determined principally by the Defence Force and external agencies. The Acquisition Division develops the necessary documentation for tender purposes, invites tenders, evaluates tender responses, undertakes risk assessments, and identifies preferred bidders. Once Government approval is given, the Division negotiates and manages the contract arrangements through to the delivery of the equipment to the New Zealand Defence Force. The Acquisition Division is certified to the AS/NZ ISO 9001:2000 Standard for "defence acquisitions of major military equipment and design of management systems to support these activities". This certification is audited and certified by BVQI New Zealand.
Upgrading the Army
Vehicles
Light armoured vehicles
We are purchasing 105 light armoured vehicles from General Dynamics Land Systems, Canada. Vehicle production in Canada is complete and the Ministry's project manager has returned to New Zealand. Ninety-one vehicles are now in New Zealand. Thirteen of the remaining vehicles will be shipped out in August 2004. One vehicle will remain in Canada for test fitting of add-on armour. Contracted training has been completed, and 90% of ordered spare parts have been delivered.
Light operational vehicles
This project involves the acquisition of 321 light operational vehicles in six variants to meet the New Zealand Army's motorisation requirements. Cabinet decided in December 2003 to purchase 175 non-armoured and 13 special operations Pinzgauer vehicles from Automotive Technik Ltd of the United Kingdom. Following successful armour testing of the Pinzgauer vehicles by the manufacturer, Cabinet decided in June 2004 to purchase a second tranche of 133 vehicles from ATL, including 60 armoured vehicles. The existing Landrover fleet will be progressively withdrawn from service as the light operational vehicles enter service commencing later this year.
Tactical communications
This project covers tactical communications for the Army and supporting RNZAF units. The project has progressed as planned with deliveries of most of the radios occurring in the past twelve months.
Weapons
Very Low Level Air Defence
This project provides an alerting and cueing system for the Mistral very low level air defence system, which is already in service. Delivery of the alerting and cueing system is expected in mid 2006.
Medium Range Anti-Armour Weapon
This project is to procure a medium-range anti-armour weapon, the Javelin missile, manufactured by Raytheon/Lockheed Martin Joint Venture. The project is proceeding as a Foreign Military Sales (FMS) procurement. Deliveries should be completed by July 2006.
Direct Fire Support Weapon: Area
This project involves the procurement of 40mm automatic grenade launchers complete with tactical fire control units, plus supporting systems. A request for proposal (for the supply of the automatic grenade launchers, two years stock of ammunition, sets of quick action sights, targeting fire control units, and hand-held observation devices) was launched in May 2003. Evaluation of proposals is currently underway. The project is expected to be completed by June 2006.
New naval vessels
Following the Government's endorsement of the Maritime Forces Review, Project Protector was initiated to purchase new vessels for the Royal New Zealand Navy. Six companies, selected from a registration of interest process, received the request for proposal in May 2003 and responses were required in October 2003. An evaluation of the proposals from the six short-listed companies was completed in March 2004, and the preferred tenderer, Tenix Defence Systems, was announced in April 2004. Contract negotiations are progressing with the preferred tenderer.
Fixed wing transport
C-130 Life Extension
After a registration of interest, five companies were selected to tender for the C-130 life extension project and provided with tender documentation in July 2003. Four companies were invited to respond to a best and final offer which closed in May 2004. These offers are being evaluated.
Boeing 757 Purchase and Modifications
Detailed planning for the modification programme (cargo door, strengthened floor, air stairs and communications/navigation equipment upgrade) is almost complete. Cabinet approval to proceed with the project will be sought later in the year.
Maritime surveillance aircraft
P-3 Orion
In December 2002, the Government approved initiation of a project to upgrade the mission systems and the communication and navigation systems on the P-3 Orion aircraft. A registration of interest process identified four companies with the required experience to undertake this project. Tender documentation was released to these companies in June 2003 and tenders closed in October 2003. An evaluation of these tenders identified L-3 Communications Integrated Systems of the United States as the preferred tenderer. L-3 Communications Integrated Systems has been invited to submit a best and final offer for the project to enable options to be presented to the Government in August 2004.
Maritime helicopters
The fifth aircraft (NZ3605) was delivered to the New Zealand Defence Force in early 2003. This project is now complete, with project closure activities underway.
A joint approach
Joint command and control system
The acquisition of a joint command and control system (JCCS) will provide New Zealand Defence Force commanders, at strategic, operational, and tactical levels, with the means to execute, command and control their forces singly, jointly, within a combined force, and within a coalition environment. It will ensure a sustainable interoperability framework, including with relevant non-defence organisations.
The first phase of the JCCS project, a project definition study to determine the NZDF's requirements for command and control, was undertaken by Booz Allen Hamilton (Australia Ltd) and completed in October 2003. The New Zealand Defence Force is considering the findings of the study and will develop the system specifications. Cabinet approval to progress the project will be sought in late 2004.
New Zealand industry involvement
New Zealand Defence Industry Association
The Ministry has continued to support local companies seeking to obtain defence work from major acquisition projects and through exports. The main conduit for this assistance has been through the local association of member defence companies, the New Zealand Defence Industry Association, which has a focus on defence work. During the year, the Ministry provided regular briefings at New Zealand Defence Industry Association meetings. Assistance was also provided to the New Zealand Defence Industry Association as sponsors of the annual Defence Industry Seminar, as well as organisational input for the annual two day Seminar held at Te Papa Museum in Wellington in late October.
Defence Industry Committee of New Zealand
The Ministry provided support for the Defence Industry Committee of New Zealand. This Ministerial appointed committee provides industry feedback to Defence and briefs the Minister on issues relating to industry.
The Defence Industry Committee of New Zealand sponsors the Defence Industry Committee Awards of Excellence. These are awarded annually to companies that have provided Defence with excellence in products or services. The awards have recently been restructured to allow recognition of smaller organisations in the provision of excellent service to the New Zealand Defence Force as well as to those involved in larger procurement projects.
Evaluation
Under section 24(2)(e) of the Defence Act 1990, the statutory role of the Evaluation Division is to carry out assessments and audits of any function, duty or project of the New Zealand Defence Force. The Division also conducts audits of the Ministry of Defence's activities relating to the procurement of major military capability.
These assessments and audits are undertaken when required by the Minister of Defence, or to a programme approved under authority delegated by the Minister to the Secretary of Defence and the Chief of Defence Force. Reports of completed audits are submitted to the responsible chief executive and to the Minister.
The Secretary of Defence and the Chief of Defence Force, together with an external member, met twice during the year as the Defence Evaluation Board, to approve the programme of work for the Evaluation Division, receive reports on audits completed, and to monitor follow-up action on past audits. The Evaluation Division also undertakes internal audits of the Ministry for the Secretary of Defence.
In addition to undertaking audits to meet the Secretary's responsibilities under the Defence Act, the Evaluation Division undertakes audits under s3(6) of the Hazardous Substances and New Organisms Act 1996. During the year the Division completed reports on the New Zealand Defence Force's implementation of systems for controlling hazardous substances not contained in weapon systems, and the New Zealand Defence Force's controls on hazardous substances contained in weapon systems.
Corporate
The Corporate Division provides support services and policy advice in the areas of human resources, information management and technology, and legal. The Corporate Division is responsible for all aspects of Ministerial services and support including the handling of Ministerial correspondence, requests under the Official Information Act of 1982, and miscellaneous enquiries.
Review of accountabilities and structural arrangements between the Ministry of Defence and the New Zealand Defence Force
In March 2003 the Government considered the review into the accountabilities and structural arrangements between the Ministry and the New Zealand Defence Force. The Government agreed that the objective is to achieve a greater degree of "jointness" within the New Zealand Defence Force and between the New Zealand Defence Force and the Ministry.
The Government has directed that greater "jointness" be achieved by reinforcing and cementing in place existing initiatives designed to support cooperation and collaboration between the two defence organisations. Over the past twelve months, the focus has been on progressing new accommodation in Wellington for the two organisations which will contribute to meeting the Review's objectives.
Graham Fortune
Secretary of Defence
22 September 2004
