Reports and Publications

• Defence Long-Term Development Plan (LTDP)
  May 2002
  • Introduction
  • The Long-Term Development Plan and Defence Policy
  • Funding
  • Managing the LTDP
  • Projects Approved in Principle by Government
  • Projects Necessary to Avoid the Failure of Policy
  • Projects Necessary to Provide a Well-Equipped Land Force
  • Projects Necessary to Avoid Significant Risks to Policy
  • Projects that have Benefit but are Less Critical to Achieving Policy Objectives

Within this section

• P-3 Mission Systems Upgrade
• C-130 Replacement/Upgrade
• C-130/P-3 Communications and Navigation Systems Upgrade
• Boeing 727 Replacement
• NZDF Helicopter Capability
• Special Operations Capability
• Joint Command & Control System
• Ohakea Runway Reconstruction

Defence Long-Term Development Plan (LTDP)
(11 June 2002)

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Projects Necessary to Avoid the Failure of Policy

P-3 Mission Systems Upgrade

Description

1. This project proposes to upgrade the sensors and mission management systems required for the P-3 Orion maritime patrol aircraft to conduct surface surveillance tasks.

Policy Value

2. The capability provided by the P-3 is central to meeting a broad range of civilian roles and tasks and for many functions required of the NZDF across the range of the Government's five defence policy objectives. The P-3 undertakes surveillance of New Zealand's EEZ and the Southern Ocean, meets our South Pacific search and rescue obligations and provides surveillance assistance to Pacific Island countries. The P-3 has a high utility for a wide range of civilian and military operations. It is one of the primary force elements contributing to our defence relationships with Australia and Five Power Defence Arrangements (FPDA) partners.

Capability Gap

3. The obsolescent mission systems onboard the P-3 are limiting availability for surveillance flights and other missions due to repeated equipment failures. Without an upgrade, the Government may be faced with policy failure in meeting its objectives for EEZ and Southern Ocean surveillance and assisting South Pacific countries with surveillance of their EEZs. The Government would also have difficulty meeting commitments to Australia and the FPDA.

Associated Projects

4. The P-3 communications and navigation systems also need to be upgraded to address equipment obsolescence and comply with evolving international air traffic regulations. This work is less urgent, but needs to be completed by 2010. The similar communications and navigation upgrade requirements for both the P-3 and the C-130 are covered in a separate project.
5. The P-3 also lacks self-protection capability against man-portable, infrared missiles. This deficiency is also addressed in a separate project.

Links to Other Capabilities

6. This project has links to the following projects and capabilities:
   • ANZAC frigates
   • Patrol vessels
   • Multi-role vessel
   • Land intelligence surveillance reconnaissance
   • Joint Command and Control System
   • NZDF torpedo replacement
   • Anti-ship missile
   • P-3/C-130 Self-protection
   • C-130/P-3 Communications and Navigation Upgrade

Timing

7. This project will take some time. Project approval by mid-2002 would not produce the first mission capable aircraft before 2006, with complete fleet modernisation in 2009. There is a significant risk that ineffective sensor and communications systems will prevent the P-3 fleet from meeting national patrol requirements before the first modernised aircraft enter into service.

Current Status

8. Building on the Maritime Patrol Review, an extensive consultation process has been undertaken with the principal agencies responsible for New Zealand's maritime security. A whole-of-government requirement has been compiled of the range of mission systems that will be needed to meet the range of the Government's policy objectives. Other government agencies with a strong interest in the P-3 upgrade will be consulted during the next stages of the process. Their input will be critical to further defining the options.

Costs

9. This project is expected to cost $150-$220 million depending on the extent of the upgrade. The options for upgrade will be explained fully, with costings, when the project is brought forward for Government consideration.

C-130 Replacement/Upgrade

Description

10. This project proposes to extend the life of the NZDF's C-130 aircraft by upgrading the aircraft systems and undertaking some structural refurbishment work.

Policy Value

11. The C-130 is a critical enabler for many NZDF operations. It provides essential air transport for the deployment of NZDF personnel and equipment, within New Zealand, to the South Pacific, Australia, the Asia-Pacific region and globally. Air transport is a critical capability for a number of roles and tasks, including: supporting counter-terrorist operations; peace support operations; evacuations of New Zealanders from trouble spots; disaster relief and humanitarian operations; supporting the civil power; and supporting New Zealand's Antarctic programme. The C-130 has particular utility where runways are short or in poor repair.

Capability Gaps

12. The declining availability of C-130 air transport is a major capability gap that will increasingly impinge on the NZDF's ability to deploy and support personnel. This is due to the age of the airframe and systems. There is a risk of policy failure, particularly in the New Zealand, South Pacific and Asia-Pacific contexts, if this project is not carried out, as the NZDF would not have sufficient air transport to support deployments and perform other tasks.

Associate Projects

13. The C-130 communications and navigation systems also need to be upgraded to address equipment obsolescence and comply with evolving international air traffic regulations. The similar communications and navigation upgrade for the C-130 and the P-3 are covered in a separate project.
14. The C-130 also lacks an adequate self-protection system against man-portable infrared missiles. This deficiency is also addressed in a separate project.

Links to Other Capabilities

15. This project has links to the following projects and capabilities:
    • Boeing 727 replacement
    • Deployment of other capabilities
    • Light Armoured Vehicles
    • Light Operational Vehicles
    • Special Forces capabilities
    • C-130/P-3 Self-protection
    • C-130/P-3 Communications and Navigation Upgrade

Timing

16. Systems on the C-130 are unreliable and difficult to support. Managing airframe corrosion is adversely affecting aircraft availability.

Current Status

17. A life of type study to determine the extent of work needed to keep the current fleet in service for the next 10 to 20 years is underway. Once the study is complete Defence will report to Cabinet on the recommended approach.

Costs

18. The cost of life extension is dependent to some extent on how long the aircraft is to be kept in service. Assuming an extension of 15-20 years, the cost is expected to be $100 million - $170 million.

Possible Options

19. New Zealand has an option, which must be exercised by the end of this year, to purchase new C-130J aircraft under the Australian contract. This option is likely to cost more than $800 million.

C-130/P-3 Communications and Navigation Systems Upgrade

Description

20. This project involves the upgrade of the C-130 and P-3 communications and navigation systems to address equipment obsolescence and comply with evolving international air traffic regulations.

Policy Value

21. The C-130 is a critical enabler for many NZDF operations. It provides essential air transport for the deployment of NZDF personnel and equipment, within New Zealand, to the South Pacific, Australia, the Asia-Pacific region and globally. Air transport is a critical capability for a number of roles and tasks, including: supporting counter-terrorist operations; peace support operations; evacuations of New Zealanders from trouble spots; disaster relief and humanitarian operations; supporting the civil power; and supporting New Zealand's Antarctic programme. The C-130 has particular utility where runways are short or in poor repair.
22. The capability provided by the P-3 is central to meeting a broad range of civilian roles and tasks and for many functions required of the NZDF across the range of the Government's five defence policy objectives. The P-3 undertakes surveillance of New Zealand's EEZ and the Southern Ocean, meets our South Pacific search and rescue obligations and provides surveillance assistance to Pacific Island countries. The P-3 has a high utility for peace support operations, particularly peace enforcement, both regionally and globally. It is one of the primary force elements contributing to our defence relationships with Australia and FPDA partners.

Capability Gap

23. The global air traffic system is being progressively upgraded to increase system capacity and improve flight efficiency within required flight safety standards. By 2010, all military and commercial aircraft operating within this new environment will need to comply with the rules governing its use. This upgrade is designed to enable greater use of automated systems, with less reliance on human input and ground-based systems.
24. The C-130s and P-3s have systems designed for an earlier generation. They are not compliant with the new regulations. As more stringent rules and procedures are implemented, the P-3s and C-130s will be increasingly restricted in their operation, and ultimately will be unable to operate.
25. Without upgrading the C-130 and P-3 communication and navigation systems, the Government will be faced with policy failure in meeting its objectives relating to air transport and aerial surveillance.

Links to Other Capabilities

26. This project has links to the following projects and capabilities:
    • C-130 life extension
    • P-3 Mission Systems Upgrade
    • Maritime surveillance
    • Air transport

Timing

27. Some systems on the C-130 and P-3 are already difficult to support. By 2005 the C-130 will be facing airspace restrictions. The P-3 has a different equipment fit and will not be significantly affected until around 2010. Both aircraft will, however, require some upgrade in the near term to meet more immediate requirements.

Current Status

28. Part of the C-130 life of type study currently underway to determine the extent of work needed to keep the current fleet in service includes analysis of current and pending air traffic regulations and the implications of these changes. The report will form the basis on which to develop options to upgrade the C-130 and P-3 communications and navigation systems.

Costs

29. The communications and navigation requirements created by new air traffic regulations are still evolving and it is therefore difficult to estimate the likely costs of upgrading communications and navigation systems. At this stage, the cost for both the C-130 and P-3 is expected to be around $320 million for eleven aircraft, spread over several years.

Possible Options

30. The new international air traffic regulations are being implemented over several years. There will be a number of options available from progressively upgrading systems on a ‘just in time' basis through to completing the upgrade in major packages. Once analysis is complete, Defence will develop options.

Boeing 727 Replacement

Description

31. This project proposes to replace the Boeing 727 aircraft with commercial jet aircraft with greater range and payload capacity.

Policy Value

32. In addition to the C-130s, the two Boeing 727s comprise New Zealand's military air transport capability. The Boeing 727 is an enabler for the same roles and tasks as the C-130, particularly the deployment and sustainment of NZDF forces on overseas deployments and the evacuation of New Zealand citizens. An advantage of the Boeing 727 is its speed, allowing a rapid response if required.

Capability Gaps

33. The declining availability of air transport is a major capability gap that will increasingly impinge on the NZDF's ability to deploy and support forces. This decline is related to both the age of the airframe and systems, and developments in international navigation/communications requirements. There is a risk of policy failure, particularly in the New Zealand, South Pacific and Asia-Pacific contexts, if this project is not carried out, as the NZDF would not have sufficient air transport to support deployments and perform other tasks.
34. The growing pressures on C-130 availability are partly due to the extra use of C-130s to make up for the declining capability of the Boeing 727. C-130 availability will decline further if aircraft are taken out of service to undergo a life extension upgrade. In order to avoid a serious shortfall in the NZDF's total airlift capacity, it is desirable to have the Boeing 727 replacement in service before the C-130 life extension programme commences.

Links to Other Capabilities

35. This project has links to the following projects and capabilities:
    • C-130 life extension
    • Deployment of other NZDF capabilities

Timing

36. Replacement of the Boeing 727 aircraft is urgent. World-wide the Boeing 727 is facing serious operational restrictions. The aircraft is already subject to airspace restrictions in Europe, USA and the Pacific, resulting in higher fuel costs, decreased payload and/or range and schedule delays. Of more immediate concern is the issue of noise. From 1 April 2002 international civil aviation environmental protection legislation became effective resulting in the Boeing 727 being banned from many airfields and requiring a waiver to operate from others, including Wellington Airport.
37. The major downturn in the airline industry following the events of 11 September 2001 has resulted in the price of used aircraft falling significantly, presenting a favourable opportunity to acquire a commercial B-727 replacement.

Current Status

38. A statement of requirement has been produced to identify the capability needed to meet both the NZDF requirements and those of other users of the aircraft. Defence is ready to canvass options from industry.

Costs

39. This project is expected to cost $100 million - $200 million.

Possible Options

40. There are a number of possible options for replacing the Boeing 727 aircraft. These include purchase, lease or charter.

NZDF Helicopter Capability

Description

41. This project proposes to replace the Iroquois utility and Sioux training helicopters with a capability that meets the NZDF's contemporary needs.

Policy Value

42. Utility helicopters provide essential support to the Army, particularly in the South Pacific and in peace support operations. Helicopters are important for supporting police operations in New Zealand. In addition, utility helicopters are able to provide a range of support functions within New Zealand and the South Pacific, such as search and rescue and disaster relief.
43. The introduction into service of a multi-role vessel will create an additional role for utility helicopters in supporting the Army ashore, especially in the South Pacific.

Capability Gap

44. The Iroquois no longer provide the capability required by a modern, mobile land force. These 35-year-old aircraft are becoming increasingly difficult to support because of their age. With helicopters assuming greater importance for mobility and tasks in peace support operations, there is a risk that the Army will be unable adequately to perform its policy roles and tasks if the Iroquois is not upgraded or replaced to meet current requirements.
45. The Sioux training helicopter is of 1950s vintage and is inadequate to meet training needs. It does not provide an adequate step in pilot training progression from the Airtrainer aircraft to operational utility and maritime helicopters.

Links to Other Capabilities

46. This project has links to the following projects and capabilities:
    • Special operations capabilities
    • Army capabilities
    • Multi-role vessel

Timing

47. The Iroquois is becoming increasingly difficult and costly to support. The United States military has begun to withdraw support of the Iroquois to foreign owners in advance of retiring that aircraft from United States Army service by 2004. As the Iroquois no long adequately meets NZDF capability requirements, there will be some operational limitations until the aircraft is replaced.
48. There is some urgency to replace the Sioux training helicopter. It dates from the 1950s and does not provide an adequate training capability for converting pilots to helicopter operations. This has caused difficulties in maintaining training standards and placed an increased burden on the Iroquois, as extra training time is required on the Iroquois to compensate for the deficiencies of the Sioux.

Current Status

49. A statement of requirement has been produced that identifies the capability needed to meet traditional NZDF requirements and those of other users. This statement needs some refinement particularly due to the uncertainty about the type of helicopter capability needed to support the logistic support functions of the MRV and support forces ashore. Once the requirement has been refined, Defence will bring forward a paper seeking approval to canvass industry for proposals.

Costs

50. Replacement of the Iroquois is expected to cost $400 million - $500 million. Replacement of the Sioux is expected to cost around $11 million. The lower end of the cost range is based on 12 helicopters at the lower end of the capability range replacing the 14 Iroquois.

Special Operations Capability

Description

51. This project provides the Army with equipment to undertake special operations.

Policy Value

52. Army special operations capabilities have utility in meeting a range of Government defence policy objectives and also in supporting policing operations in New Zealand and the South Pacific.

Links to Other Capabilities

53. This project has links to the following projects and capabilities:
    • Light Operational Vehicles (Special Forces variant)
    • Land intelligence surveillance reconnaissance
    • NZDF helicopter capability
    • C-130 upgrade/replacement

Current Status

54. Work is underway to determine how best to acquire the equipment needed.

Costs

55. This project is expected to cost $8 million - $10 million.

Joint Command and Control System (JCCS)

Description

56. The joint command and control system project is a programme to implement an automated command and control system for the NZDF. This IT system will collect, collate, process, display, store, disseminate and protect command and control information in near real-time.

Policy Value

57. Joint command and control is an enabling capability for all of the policy roles and tasks required of the NZDF. Joint command and control enables elements from all three services to work together efficiently and effectively by enhancing decision-making processes.

Capability Gap

58. The NZDF's current command and control systems are largely manual and paper based. Experience in recent operations and exercises has shown that the NZDF system is dated and inefficient. This has impacted on the effectiveness of the Joint Force Headquarters. The slower and less accurate decision making cycle currently available to commanders is likely to lead to policy failure as it becomes increasingly difficult for the NZDF to plan operations and effectively co-ordinate its own operations.

Links to Other Capabilities

59. The joint command and control system is an overarching capability that contributes to all NZDF outputs.
60. While the JCCS will give the NZDF the ability to manage command and control information, the project does not provide the ability to communicate data. JCCS will therefore depend on the ability of a suitable communications infrastructure, part of which will be provided by the:
    • Joint Communications Modernisation
    • Army Tactical Trunk Communications
61. These two projects will, however, be directly influenced by the JCCS as the JCCS will largely determine the requirements for future improvements to the communications infrastructure.

Timing

62. Although the current system has significant limitations, developing a modern integrated command, control, communications and intelligence (C3I) infrastructure is a major undertaking and needs to be managed carefully. A project definition study (PDS) is soon to be initiated and will be undertaken by experienced and independent consultants. The PDS will investigate, provide advice and options, and make recommendations on how to best deliver, establish and sustain a cost effective, fit for purpose, JCCS to meet the NZDF's command and control and interoperability requirements.

Current Status

63. The joint NZDF/MoD project team for the JCCS is currently managing the PDS acquisition process under State Services Commission and Treasury guidelines for major IT projects.
64. A request for proposals to conduct the PDS was released in early May 2002, with responses due back by the end of June 2002.

Costs

65. This project is expected to cost $15 million - $30 million.

Possible Options

66. Implementation of the JCCS could be managed in a progressive way, and could be structured to match funding availability. The project definition study will identify options.

Ohakea Runway Reconstruction

Description

67. This project proposes to reconstruct the Ohakea runway to keep it fully operational for military and commercial use for the next 40 years.

Policy Value

68. The basing requirements for the Air Force are currently being reviewed in a separate study. Depending on the outcome, Ohakea will be either the sole or primary operational airfield for the Air Force. Ohakea, therefore, will support the operations of the maritime surveillance aircraft, air transport aircraft, and helicopters.

Capability Gap

69. The hexagonal block construction of the runway is failing leading to runway cracking, which constitutes a flight safety hazard to all aircraft. This risk can be offset in the short term by regular runway sweeps and inspections, but the risk will increase as the break-up process becomes more widespread. Operations by larger aircraft are already restricted to ‘essential' only. An upgrade of the runway is essential for Ohakea to continue as an operational base and to support an increase in air traffic. Restrictions on large aircraft operations at Ohakea will impact on the ability of the Army to deploy, and risks to the operation of other air capabilities will restrict their ability to meet policy objectives.

Links to Other Capabilities

70. This project has links to the following projects and capabilities:
    • Maritime surveillance
    • Air transport

Timing

71. There is a need to minimise flight safety risks and restore the airfield to unrestricted operations. If the Boeing 727 is replaced with a heavier aircraft, it may not be able to operate from Ohakea with a full load. The Air Force would not be able to relocate from Whenuapai until reconstruction is completed.
72. Ohakea is used as a nominated alternate airfield by some airlines for long haul flights. This reduces the amount of reserve fuel the aircraft need to carry. Further deterioration of the runway will likely affect this arrangement. Reconstruction work needs to be undertaken during a summer season.

Current Status

73. An engineering study has been completed to determine the extent of work required and obtain accurate costs. The RNZAF Basing Study has been forwarded to the Ministry of Economic Development to enable civil interest in a joint civil/military airfield to be ascertained.

Costs

74. This project is expected to cost up to $23 million.

Possible Options

75. Two reconstruction options have been recommended:
    • Military operations only
    • Joint civil/military operations
76. The Ministry of Economic Development has undertaken a study to determine if there is sufficient interest to justify upgrading the runway for civil operations, and if civilian support can be engaged to offset costs. It is, therefore, possible that the upgrade could be undertaken as a Private/Public Partnership arrangement. Cabinet will be asked to decide on the options and funding to enable construction, if approved, during the summer of 2002/03.
77. These options will be explained fully, with costings, when the project is brought forward for Government approval.

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