Statement of Intent 1 July 2006 - 30 June 2009
Part 1: Strategic framework
Ministry of Defence operating environment
Overview
In the period covered by this Statement of Intent New Zealand will pursue its defence policies in a changing international setting, and against the background at home of a comprehensive, Defence-wide, modernisation and long-term re-resourcing of the New Zealand Defence Force.
The primary reason for maintaining defence capabilities will remain to secure New Zealand against external threats, to protect the country's sovereignty, and to be able to take action to meet contingencies in areas of strategic interest.
However, in the absence of any direct military threat, and given New Zealand's broad worldview and interests, the ability for New Zealand to contribute trained, professional military forces to regional and global roles will continue to be important in determining the use, capabilities and force structure of the New Zealand Defence Force.
The International Setting
Defence is a core element of New Zealand's broader foreign and security policy and of New Zealand's national identity. Understanding changes in the international environment, the new demands being placed on defence forces, and the consequences for defence policy, doctrine, capabilities and deployments will remain a critical part of the Ministry's business.
The post Cold War strategic environment has been re-shaped as a consequence of the September 2001 terrorist attacks. In some cases defence policies have been amended and priorities changed. Closer to home New Zealand and other regional countries have begun to rethink questions of Pacific security and to broaden engagement and assistance strategies.
While New Zealand defence policy objectives remain relevant in this environment, there will be an on-going need to assess trends and examine the implications for the structure, activities and capabilities of the New Zealand Defence Force.
Australia
Australia is New Zealand's closest and most important defence partner by far. New Zealand will continue to meet its alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests.
The oft-repeated assertion that the two nations are natural partners has received considerable practical expression in recent years with "ANZAC" deployments providing a critical contribution to regional problem-solving in Bougainville, Timor Leste, Solomon Islands, and Aceh, following the Boxing Day Tsunami.
But the defence relationship is not without challenge. It requires constant attention to ensure each nation's policies, priorities and capabilities are well understood by the other partner, aligned where possible, co-operatively based and always effective. New Zealand also needs increasingly to compete with others for Australia's attention as the Australian Defence Force deals with an expanding regional agenda and its own modernisation priorities and challenges.
The Pacific
New Zealand has enduring strategic interests in the Pacific. We have numerous special obligations to assist South Pacific neighbours in maintaining peace, preserving the environment, promoting good governance and helping achieve economic well-being. The need for this assistance will continue and increase, including in the defence and security arena.
The region faces a number of debilitating, trans-national security challenges, albeit, mostly of a non-military nature. New Zealand will continue to meet its obligations to contribute to the maintenance of security in the South Pacific and to provide assistance to our Pacific neighbours.
Asia
South-East Asia remains a key area for New Zealand's security interests.
Terrorism is the major current security concern in that region. Continued vigilance across the region, including by New Zealand, will be required. Indonesia's recent progress towards democracy is impressive, as is the overall economic recovery of South-East Asia in the years since the 1997 economic crisis.
New Zealand will continue to engage in high-level relationships with defence partners in the region, especially Singapore, and will participate fully in Five Power Defence Arrangements activities.
North Asia will continue to be an area of policy challenge in the period covered by this Statement of Intent.
The economic and security interests of major powers converge there. They are under-going far-reaching change. Major developments in the region are likely to include further tension on the Korean Peninsula, strains in the China-Taiwan relationship, increasing political and security engagement by Japan commensurate with its economic power, and realignment of the United States' security presence.
No issue will have a greater impact than the political and economic emergence of China as a great power. Our defence policy settings will continue to be reviewed and adjusted to take account of those developments. Strategic realities, economic interests and regional connections will compel New Zealand to deepen its defence and security understanding of, and engagement with, North Asia.
Middle East
Location, energy resources, and ethnic and religious tensions have long combined to make this turbulent region a disproportionate factor in international security. In more recent years, fundamentalist-based terrorism and the potential impact on the regional balance of power resulting from Iran's nuclear programmes have added additional stress. The security environment remains volatile. Arab-Israeli relations remain fragile at best, the Middle East Peace Process is making erratic progress, and the challenges to the reconstruction and rehabilitation process following regime changes in Afghanistan and Iraq brings much uncertainty to the future of these two countries. For all these reasons the Middle East has become an area of unprecedented international attention.
New Zealand is aware how critical Middle East stability and prosperity are for its own economic well-being. It also recognises the importance of a wider range of economic, political, and security linkages to protect and further develop New Zealand's interests in the region as well as continue its constructive participation in multilateral security initiatives contributing to the international campaign against terrorism, and to peace and stability missions.
Global
The United States will, for the foreseeable future, dominate the global agenda because of its unrivalled economic and military might, as well as its "soft" power.
United States efforts to stamp out terrorism, counter the proliferation of weapons of mass destruction, and influence developments in the Middle East and the Asia-Pacific region, will be important policy factors in determining international relations.
In the defence arena New Zealand will continue to play its part, alongside others, in efforts to ensure international peace and security. Policy effort will be directed toward identifying and recommending methods and participating in efforts consistent with our national commitment to multilateralism, international law and the principles of the United Nations.
The Government's strong commitment to participation in the United Nations and other multilateral peace support operations will be important in shaping New Zealand's approach to international security and determining government decisions about New Zealand Defence Force deployments.
The Ministry
The Ministry of Defence's primary tasks are to provide policy advice on defence issues, to acquire major items of military equipment for the New Zealand Defence Force, and to audit and assess the performance of the Defence organisations.
The Ministry will continue to play a lead role in ensuring that the New Zealand Defence Force's capabilities and activities are aligned with, and well-matched to, the Government's policy goals at home, in the South Pacific, nearby regions, and globally.
The New Zealand Defence Force is the Ministry's key partner, but the Ministry will also work increasingly closely with other government agencies to ensure policy and capabilities are aligned and directed to supporting New Zealand's security objectives and contributing to the security of other countries.
High Level Priorities
A key priority for the Ministry in the period ahead, across all its business units, will be continuing to implement and deliver the capability, force structure and acquisition decisions outlined in the 2001 Government Defence Statement. This work pursued in conjunction and co-operation with the New Zealand Defence Force under the Capability Management Framework, currently comprises over 20 projects including Project Protector, the upgrade of the P3 Orion maritime patrol aircraft and completing the purchase of Pinzgauer light operational vehicles for the Army.
An equal priority will be implementing the Defence Sustainability Initiative, which arose from the review into the capability and resourcing of Defence, commissioned by the Government in January 2004.
The Defence Sustainability Initiative
In response to the review the Government announced the Defence Sustainability Initiative (DSI) in May 2005. This Initiative is designed to develop the New Zealand Defence Force's military and organisational capability to ensure that the Government's defence goals are met on a sustainable basis. A staged approach will be adopted, focusing in particular on good corporate governance, systems and processes that are clearly aligned with Government policy settings.
The Defence Sustainability Initiative was designed to remedy the effect on the New Zealand Defence Force of a prolonged period of fiscal constraint throughout the 1990s, the higher operational demands made on the New Zealand Defence Force since 1998, equipment continuing in service beyond its economic life, a strong labour market affecting the ability to recruit and retain key personnel, and a reduction in New Zealand Defence Force Headquarters and support capabilities due to staff shortages.
The DSI has initially been directed towards recovery of personnel levels, recruitment and retention, putting new and upgraded capabilities into service, and strengthening the organisational and corporate capability of Headquarters New Zealand Defence Force and the Ministry of Defence. The Ministry has assisted the New Zealand Defence Force in this rebuilding phase, which is scheduled to be substantially completed by 30 June 2006. Additional resources are being applied over the first 18 months to put in place a robust planning and performance management structure to fully define and manage the implementation plan for capability recovery.
The second phase of the Defence Sustainability Initiative, after 1 July 2006, will see the New Zealand Defence Force move from rebuilding its organisational capabilities, to growing into a modern military force that can deliver outputs that meet Government policy. The Ministry will continue to assist this building and growing process.
The DSI requires the New Zealand Defence Force and the Ministry of Defence to work together to manage the risk and uncertainty attached to the long-term capability recovery programme, assess trade-offs and prioritise capability recovery activities, and ensure that policy objectives are achieved. Some of the projects that are part of this initiative are: the Headquarters New Zealand Defence Force organisational structure review; Defence Planning Framework; Defence performance management system and the defence strategic human resource planning framework.
The Ministry is addressing gaps in its own policy capability, particularly where it does not have sufficient specialist technical and financial analysis skills to fully meet the Secretary of Defence's responsibilities. A new team has been recruited that will cover these capability shortfalls.
