11 June 2002 Media Statement

The Defence Long Term Development Plan (LTDP) released today identifies proposals for defence capital expenditure over the next decade, Defence Minister Mark Burton said.

Mark Burton unveiled details of the LTDP at the RNZRSA Conference in Wellington this afternoon.

"The LTDP is a vital planning tool that has not been provided in the past, " Mark Burton said. "It offers an overview of defence acquisitions, in priority groupings, with approximate costings.

"The government has committed to capital injections of up to $1 billion over the next ten years, with most of that likely to be needed in the next 5 years. The balance of funding for acquisitions will come from depreciation.

"Including the defence projects already approved – new light armoured vehicles and communications equipment - total spending on defence capital projects is likely to exceed $3 billion over the next decade. This is a major investment. What the LTDP enables us to do is to manage operational and financial risks, to ensure that the long overdue investment in our defence force provides best value for money.

"The LTDP follows logically on from previous government decisions. We began with the blueprint for defence outlined in the Defence Policy Framework issued in June 2000. Capability goals and priorities were then set down in the Defence Capability Statement of May 2001.

"Taken together, these three key strategic and operational documents, and the recently announced decision to further improve pay and conditions for service personnel, show how this government is building a modern, focused, professional Defence Force, with the necessary military capabilities and trained personnel, across all three Services."

Mark Burton said that the LTDP provides an assurance that decisions on individual defence acquisition projects are made in the context of the government's defence policy, overall priorities across the entire NZDF, and affordability.

"The LTDP does not give Defence authority to proceed with any of the projects, nor does it set absolute financial or timing parameters. What it does is provide a transparent, robust framework, so that the government can make decisions on each of the projects as they are developed, in the context of their affordability and their value in delivering defence policy.

"It is important to realise that the costings included in the LTDP are, inevitably, approximate. The LTDP is a dynamic document and will be regularly reviewed and updated in response to new and more detailed information."

Mark Burton said the projects included in the LTDP are at various stages of development.

"Some are well advanced. For example, Defence will go to tender for the Light Operational Vehicle in the next couple of weeks. The broad functional requirements for the new naval vessels are also nearing completion. A study to determine the extent of work needed to upgrade our C-130 fleet is well advanced. And Cabinet will shortly be asked to approve the project to reconstruct the Ohakea Airbase runway.

"The Long Term Development Plan is a crucial operational planning document that places these projects and others in context. The LTDP includes projects that will provide a modernised Army, a practical Navy and a refocused and updated Air Force. It draws logical linkages between all of these projects and will equip the Defence Force as a whole, so that it can meet the government's policy requirements," Mark Burton said.