Speech to CSCAP 2nd Study Group Meeting on Naval Enhancement in the Asia-Pacific

I would like to thank the Council for Security Cooperation in the Asia-Pacific (CSCAP) for this opportunity to speak to the 2nd Study Group Meeting on Naval Enhancement in the Asia-Pacific.  

I would particularly like to welcome to New Zealand those from overseas.

There are four main points I would like to make this evening:

• First, our region is increasingly integrated. The shift in global power to the Asia-Pacific is a positive thing. I am optimistic it can be managed peacefully. Regional institutions are important in this respect. 
• Second, our White Paper will cover the range of roles for disciplined forces in the Asia-Pacific. This involves a capability mix that stretches from humanitarian assistance to inter-state conflict. 
• Third, New Zealand has enhanced its maritime surveillance and patrol capabilities through acquisition of the Project Protector fleet and upgrades of the P-3 Orions. We are going to release a White Paper in September outlining our wider defence intentions. 
• Fourth, we continue to actively deploy and exercise with other countries to build regional capacity.

But first it is worth situating New Zealand relative to our neighbours.

New Zealand is one of the most geographically isolated nations on earth. It sits at the bottom of an arc down through South-East Asia and Australia, and forms a final port of call in the Asia-Pacific before Antarctica.

Jim Bolger, the 35^th Prime Minister of New Zealand, said in the early 90s that New Zealand was an Asian country. At the time he was met with scepticism, but his words are much truer today.

New Zealand's people - our migrants, our tourists, and our international students - are part of ever increasing people-to-people links with Asia.

Our major trading partners are now in the Asia-Pacific. Five of our largest 10 export markets are in North Asia.

There has been a shift in global power to the Asia-Pacific region. The fallout from the global economic and financial crisis has given a sharper context to this shift.

New Zealand's trade with Asia is largely by sea. Unimpeded passage through the region's shipping lanes is critical to our economic well-being. 

This leads to the first point, the integration of the region.

New Zealand's interest is in a peaceful Pacific in which trade can flow unimpeded, where lawful conduct is the norm, and where navies co-operatively work to sustain the freedom of the seas. This means peaceful relations between the states of the Asia-Pacific.

Our interests are best served by a region in which the major powers are generally in accord on key issues and share a common understanding of how they should be managed. 

Regional institutions such as the ASEAN Regional Forum, APEC, the East Asia Summit, and, of course, track II organisations like CSCAP play an important part in this.

These institutions provide a framework for the diverse interests of the states of the region. They build confidence between defence forces, encourage openness, and thereby reduce the risk of miscalculation. 

Some commentators have pointed to the modernisation plans of many of the region's defence forces, in particular their navies, as a further source of possible tension.  However, it is inevitable that naval capability will grow along with economic capability.

The relevant question is not scale, but intention. Changes in relative power will put a premium on diplomacy and mutual interest.

The principal change in the region's navies has been the shift away from naval capabilities based on protecting littoral waterways to more capable surface and sub-surface vessels that are able to operate in international settings some distance from home.

As the Asia-Pacific region becomes more prosperous, expenditure on defence has increased to levels more closely aligned to how the region's countries see their place in the world.  It is not uncommon for defence spending to increase as countries aspire to have greater influence.   

This leads directly to the second point, the New Zealand White Paper.

In looking at the strategic environment, our key mutual interest is stability and security. Our defence forces effect that by having the necessary capabilities and practical utility.

We will release a Defence White Paper in September this year. The White Paper will inform our partners about how New Zealand will continue to play our part in the security of the region. Maritime security is a significant component of that contribution.

The White Paper will determine a capability mix and force structure that provides the Government with an appropriate set of options, ranging from humanitarian assistance to combat capabilities. These options will allow us to meet our security obligations and deliver value for money.

New Zealand, however, faces tight fiscal realities, and so we must be more deliberate on where our defence dollars are spent. The White Paper will therefore outline a realistic and affordable defence plan.

The Project Protector vessels are an important new aspect of New Zealand's capability mix. They significantly enhance our maritime patrol and sealift capabilities and they can respond to a range of foreseeable tasks in our EEZ and the South Pacific.

The IPVs support whole-of-government maritime surveillance activities out to approximately 200 nautical miles. The OPVs will extend that range into the Pacific and Southern Oceans.

The Project Protector vessels free up the Naval Combat Force to focus primarily on bluewater tasks, including in the Asia-Pacific region.   

As noted under the third point, New Zealand has very sophisticated surveillance capabilities.

We have invested heavily in maritime surveillance, particularly with the Air Force's P-3 Orions.  We are the smallest nation in the world that operates such a sophisticated capability. 

There is a case for investing in a short-range, less advanced aircraft to cover low-level tasks in our EEZ and the South Pacific. This would free the Orions for long-range military tasking.

Capabilities without intention are irrelevant. My fourth point is about what we actually do with our partners.

We actively deploy and exercise with other countries to build regional capacity.

Our deployments to Afghanistan, Solomon Islands and Timor-Leste are evidence of our commitment to the region. So too is our response to the recent spate of natural disasters in the Pacific, from the tsunami which struck Samoa to the recent devastation of Hurricane Tomas in Fiji.

We regularly contribute P-3 Orions, combat and combat support vessels, and the Littoral Warfare Support Group to FPDA exercises.

We are deepening our defence relations with key countries in Asia, including China, India, and Japan. 

Continued improvement in our defence relationship with the United States is opening up more opportunities to participate in multi-lateral exercises in the region.

We should also not forget the important role that countries like France play. FANC capabilities have been to crucial to the success of humanitarian relief efforts in the Pacific.

New Zealand is an active member of the PSI.  As nuclear, biological and chemical technologies come within reach of more state and non-state actors, counter-proliferation initiatives, such as the PSI, will become more important in the Asia Pacific. 

Security issues addressed by the ARF have expanded in recent years. They now include non-traditional security threats, such as natural disasters, terrorism, maritime security, proliferation of weapons of mass destruction, transnational crime and disease epidemics. 

New Zealand welcomes the continuing development of the ARF and other regional institutions. We are committed to playing an active part. As you know, next week NZ is hosting the 2nd Inter-sessional Meeting on Maritime Security.

In closing, I would again emphasise my optimism that change in our region can be successfully managed.

We all wish to see a peaceful Asia-Pacific with unimpeded flows of trade and free movement of people.

Regional institutions like the ARF and CSCAP help to develop a common understanding around shared interests. Disciplined forces play a vital role securing peaceful exchange of goods and people.

New Zealand continues to enhance its maritime capabilities in support of the regional effort.

Our forthcoming White Paper will outline our intentions in this regard. It will set out a realistic and affordable future for the NZDF.

Track II institutions such as CSCAP have an important role to play in building regional confidence. I wish you well over the next two days of your meeting.