NO MONEY BUDGETED FOR THIRD FRIGATE SAYS PETERS

Treasurer Winston Peters said newspaper reports that a third ANZAC Frigate would "not be sacrificed to the Government's razor gang" were ridiculous given that no decision had yet been made on the purchase of a third frigate.

"The Defence Review makes no specific recommendation for a third frigate, and no money has been budgeted for one.

"Any suggestion that such a purchase will be sacrificed to accommodate the current process of expenditure deferrals therefore simply does not arise, the decision to spend such money on a third frigate having never been made," Mr Peters said.