Annual Report for the year ended 30 June 2007
Part 3: Departmental financial statements (continued)
Statement of objectives and service performance
For the year ended 30 June 2007
Output Class - Policy advice
Description
This output class involves developing credible, effective and respected advice on how the Government’s defence and security policies can best be advanced.
In consultation with the New Zealand Defence Force (NZDF) the Ministry:
- identifies and incorporates changes in the strategic environment, and their implications, into the development of New Zealand’s defence and security policy
- implements the Defence Long-Term Development Plan (LTDP)
- maintains effective bilateral and multilateral defence relationships
- provides advice on the deployment of NZDF assets and personnel.
International Security Environment
Objective
To undertake analysis of significant issues that have an impact on the Government’s defence policy and international defence relations including developments in the international security environment, especially in the Asia-Pacific region, changes in the defence and security policies of key countries such as Australia and the United States, and developments in regional security relations.
Performance
During this period the Ministry provided analysis and advice on the breakdown of law and order in Timor-Leste and in Tonga, the conflict in southern Lebanon, the future of defence relations with Fiji in the wake of the December coup, and the future of NZ-Thailand defence engagement following the coup.
The Ministry is a member of the inter-agency Pacific Security Fund administration group, and is jointly leading sub-sectoral reviews of Pacific Disciplined Forces and Pacific Maritime Surveillance. Advice is also provided on policy developments within the Five Power Defence Arrangements and within the Association of South East Asian Nations (ASEAN) Regional Forum; in particular the ASEAN Regional Forum (ARF) defence dialogue process.
Deployments
Objective
To undertake analysis and provide advice on the deployment of NZDF assets and personnel on United Nations or other operations.
Performance
The Ministry was involved in the preparation of Cabinet papers and submissions relating to the deployment of NZDF personnel to Solomon Islands, Tonga, Timor-Leste, Afghanistan, Iraq, the Sudan, Korea, Bosnia, Kosovo, the Multinational Force and Observers in Sinai, the United Nations Truce Supervision Organisation, particularly following the conflict in southern Lebanon last year, and Operation Enduring Freedom.
Advice was also provided to the Ministry of Foreign Affairs and Trade on the Government’s Strategic Review of Peacekeeping.
Mutual Assistance Programme
Objective
To undertake analysis and provide policy advice in support of the operation of the NZDF Mutual Assistance Programme (MAP).
Performance
The Ministry provided briefings and participated in bilateral MAP talks with Fiji, Vanuatu, Brunei, Malaysia and the Philippines, and for Defence Cooperation Programme - Mutual Assistance Programme talks in Canberra.
Capability
Objective
To undertake capability reviews in co-operation with the NZDF to identify the options for achieving the Government’s defence policy goals and the Ministry of Defence’s outcomes, in particular capability reviews for projects from the LTDP.
Performance
The Ministry continued to contribute to the Defence Sustainability Initiative Programme, which is being led by the NZDF. This programme consists of a number of projects intended to address significant issues identified by the Defence Capability and Resourcing Review, many of which have been incorporated into business as usual.
Advice has been developed and continues to be developed on policy, technical and business case issues relating to the proposed Wideband Satellite Communications project; Advanced Pilot Training Capability; P-3 Concept of Operations; Network Enabled Capability; the Joint Command and Control Systems project; the Land Intelligence, Surveillance and Reconnaissance project; and the ANZAC frigate platform systems, self defence, and close-in weapons system upgrade projects.
Advice and support is being provided on other NZDF projects including the Army Configuration Review, the Army Transformation Plan, the Defence Force Health Capability project, the NZDF housing and accommodation review, and research into NZDF workforce issues.
The Ministry co-led the update of the LTDP released in October 2006 and the report to Cabinet on progress made since November 2004, and is leading an evaluation of the LTDP. An integrated cost model of all NZDF expenditure (both opex and capex) is being developed jointly as well as an output-forecasting model for NZDF force element availability.
Acquisition
Objective
To provide advice during the acquisition phase of projects from the LTDP that have been approved by the Government, such as Project Protector vessels, the upgrade of the C-130H Hercules fleet, the acquisition and modification of the second-hand Boeing 757 aircraft, the upgrade of the mission systems for the P-3 Orion fleet, the acquisition of new helicopters and the acquisition of weapons and engineering equipment for the Army.
Performance
Advice was provided on the Project Protector vessels, including a report that provided a high level overview of the delivery of the Protector fleet, the Medium Utility Helicopter and Light/Training Utility Helicopter projects, and the Naval Power and Naval Fuel projects.
Whole of Government Response
Objective
To work with the NZDF and civilian agencies for co-ordinated responses to defence policy and security issues. These will include: Antarctica, arms control and disarmament, maritime patrol and surveillance, oceans policy and trans-national criminal activity.
Performance
The Ministry and NZDF completed the Defence Capital Asset Management Practice (DCAMP) Review, with input from Treasury and the State Services Commission. The work programme that follows the DCAMP recommendation includes:
- preparation of a full spending programme (within the envelopes of the LTDP and Defence Funding Package)
- development of a work programme to achieve greater clarity, coherence and measurability in the outcome statements for the defence and security sector
- reviewing and improving the life cycle costing estimations and the development of business cases
- devising a template for strategic asset management plans for major defence assets
- investigating if and how changes could be made to the foreign exchange regime for Defence capital purchases.
In conjunction with the NZDF, the Capability Management Framework is also being reviewed.
The Ministry provided advice to the Ministry of Foreign Affairs and Trade on arms control and disarmament issues, particularly on certain weapons convention related issues, and worked on an update of Defence disarmament and arms control priorities for 2007/08.
Options were developed to meet New Zealand’s short-medium range aerial patrol requirements, which was led by the Ministry of Fisheries. Subsequently, Cabinet decided not to consider this issue.
International Defence Relationships
Objective
To manage defence relationships with Australia and other regional countries (including key bilateral meetings between Australian and New Zealand Defence Ministers, and Senior Officials’ meetings), and participate in the regional multilateral security dialogues (including the Association of Southeast Asian Nations Regional Forum and Five Power Defence Arrangements Defence Ministers’ Meeting).
Performance
The Ministry provided briefings and conducted bilateral defence talks with Australia, Singapore, China, United Kingdom, Republic of Korea, and Malaysia.
The Ministry provided briefings and was represented at the Shangri-La Regional Security Dialogue, the annual NZDF-French Armed Forces in New Caledonia activities coordination meeting, the New Zealand-United States Maritime Security discussions, the Quadrilateral Defence Co-ordination Group talks between Australia, New Zealand, United States, and New Caledonia, Proliferation Security Initiative Operational Experts’ Group meetings and Exercise Leading Edge, the Pacific Donor Coordination Meeting, and the ASEAN Regional Forum security meetings and dialogue.
The Ministry provided defence briefings to the Prime Minister, the Minister of Defence, Chief of Defence Force, Service Chiefs, senior NZDF officers, and officials for visits to or meetings in Afghanistan, Australia, Belgium, Brunei, Canada, China, Cook Islands, Timor-Leste, Germany, India, Indonesia, Japan, Korea, Lebanon, Malaysia, Mexico, Middle East, New Caledonia, Niue, Norway, Pakistan, Philippines, Samoa, Singapore, Tonga, United Kingdom, United States, and Vietnam.
The Ministry was involved in the organisation and preparation of briefings for visits to New Zealand by defence ministers, chiefs of defence force, and service chiefs from Australia, Brunei, Canada, Chile, China, France, Japan, Korea, Malaysia, the Philippines, Qatar, Singapore, United Kingdom, United States, and Vietnam.
Official Correspondence
Objective
To provide the following ministerial services:
- responses to ministerial correspondence to be actioned within 14 working days of receipt by the Ministry
- responses to Parliamentary Questions to be actioned within the timeframes set by the Standing Orders of the House of Representatives
- responses to Official Information Act requests to be actioned within statutory requirements.
Performance
During this year, the Ministry responded to 60 ministerials, of which 90% were actioned within fourteen working days, 102 Parliamentary Questions, all of which were completed within the timeframes set by the Standing Orders of the House of Representatives, and thirteen Official Information Act requests, which were actioned within statutory requirements.
Quality Control
Objective
To maintain quality control procedures to support the policy advice delivered under this output.
The quality of policy advice will be assessed in terms of whether it is credible, effective, respected and contributes to the achievement of the Government’s defence and security policy objectives by:
- seeking the Minister’s views
- seeking the views of key stakeholders in policy advice.
The 2006 Statement of Intent detailed the quality standards intended.
Performance
The Ministry ensures that reports produced under this output class directly address issues raised by the Minister, provide logical arguments supported by facts thorough analysis and, where appropriate, present a range of options assessed for benefits, costs, and consequences. Consultation is undertaken with the NZDF and other parties, and any objections identified. Issues of implementation, technical feasibility, timing, and consistency with other policies are also considered.
The quality of policy advice is assessed by seeking the Minister’s views and those of key stakeholders.
Audit Implementation
Objective
To implement the recommendations agreed by the Ministry from audits or reviews.
Performance
Evaluation Report 2/2006 on the MAP recommended that the NZDF and the Ministry develop policy for the strategic role of MAP within the wider area of NZDF military diplomacy, bilateral agreements and, for the Pacific, whole of government assistance initiatives. Work has commenced in response to this recommendation and is subject to inter-agency consultation and ministerial endorsement of the sub-sector strategy paper on capacity building assistance to Pacific Defence and Police forces.
Cost of Output Class - Policy advice (GST exclusive)
For the year ended 30 June 2007
| 30/6/2006 Actual $000 |
30/6/2007 Actual $000 |
30/6/2007 Main estimates $000 |
30/6/2007 Supp. estimates $000 |
|
|---|---|---|---|---|
| Revenue | ||||
| Crown | 3,526 | 3,910 | 3,921 | 3,921 |
| Other | 47 | 70 | 48 | 59 |
| Total revenue | 3,573 | 3,980 | 3,969 | 3,980 |
| Expenditure | ||||
| Personnel | 1,698 | 2,076 | 2,210 | 2,214 |
| Operating | 453 | 411 | 500 | 504 |
| Other | 1,173 | 1,225 | 1,259 | 1,262 |
| Total expenditure | 3,324 | 3,712 | 3,969 | 3,980 |
| Surplus | 249 | 268 | - | - |
