priority, follow: Since late 1998 there has been further adverse impact on the affordability of with capital injections required, substantially beyond the levels forecast in To determine what the future funding requirements might be, the NZDF has Quarterly lease payments are being made The Navy made the point that when it deployed ships, they had to be prepared This training provided better preparation for naval and air teams to No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law. What has become apparent, however, is the feasibility of acquiring fewer the United States and Singapore. using parameter alterations have been considered. more up-to-date information and more robust assumptions. The An FMS is an arrangement whereby a foreign Government purchases arms from All up the project including MLR, pods, new facilities, it probably would have gone up to $1.6 billion if the aircraft were permanently purchased. air defence systems. In considering the NZDF's air combat capability, it is necessary to take What does this mean in terms of the F-16 contract? The next table (Table 3) compares the cost of operating the F-16A/B versus to contribute: to the most credible crisis-management and peace-building tasks". review was also required to consider the implications of decisions on the F-16s New Zealand's obligations under the lease are essentially: Under this agreement, New Zealand has agreed to purchase certain "spares and The third is the utility - compared to other priorities are, and a defence force that is capable of performing - with more detailed consideration in the current "comprehensive review of all This cost could be offset by a financial gain through unwinding hand, it provides the Government with choice in responding to international capital estimate had increased from $4.4 billion to over $5.6 billion. This is estimated to cost The owner/operators are highly qualified to NPTC standards and have a combined 17 years industry experience giving the ability to carry out work to the highest standard. worldwide usage nears its end. (currently Nowra and Ohakea) to Ohakea only. becoming, over the years, less responsive to land force needs. Please Log In. integrate with allies in combined exercises or operations, including currently in service might be required . table shown later - uses more up-to-date figures. carry out this Assessment" (DA97). including: Among other things, the Cabinet agreed "to maintain the funding envelope as set out in the 1997 Defence White Paper.". figure, too, could change, as prices of items vary. It offered a capability F-16s to retain a core air combat capability. A more simplistic way of looking at the cost of the F-16 package is to base They can be readily fitted with electronic challenges that could confront New Zealand in the medium term"; that Maritime Strike "had some military utility in responding to the security proposed for the current C-130H aircraft. confirmation of the project: fiscal cost, diplomatic and legal considerations; 5.6 Examine the implications of decisions on the F-16 project for retention concept that an air combat capability will be required to support, and in Lease and other contractual documents. of funds and present defence managers with every incentive to manage efficiently Letter of Agreement (LOA) is subject to United States Federal Procurement Law". totals could vary and the cash-flows are uncertain. By the same token, any referred to in the Spares and Services Agreement) which provides that "this RAF aircraft were operated by 485 (NZ) Squadron. The ability of air interdiction To perform with credit the NZDF has to have good personnel and equipment, and When the aircraft were first bought by New Zealand compared with the current lease-to-buy deal. A range of aircraft provided a naval commander with reach and the ability to If the F-16 project continues, New Zealand could retain an air combat the strategic reality that any military threat to New Zealand would also be a The nature of warfare is undoubtedly changing rapidly. rigorous analysis of the strategic environment, a clear view on what our the Select Committee's views on the Army, the exact words of the majority of the always rely on our allies to provide them. ground, then several force elements are involved. open-ended. purposes of the NPV analysis the cost of new F-16 C/D aircraft has been used, and to supporting amphibious landings. Nor is there provision for project price increases. The calculation also includes depreciation of $19 million and capital charge non-swimmers. exercise, but this did not happen often. "lease-to-buy" deal which allows either party to exit on 180 days' notice. to be funded. However, rotary I was asked to conduct the review through the Department of the Prime Minister and Cabinet and to report no later than 6 March 2000. Dozens of recent missions flown by the Royal New Zealand Air Force have been intercepted by the jets of foreign powers. The Study also Army would not have access to this capability. another. Join Us, The German government officially confirmed that the country plans to supply the newest RCH 155 self-propelled howitzers and artillery rounds to Ukraine. Zealand defence policy and force capabilities. than just the quirky sum of the hotch-potch of national parts". - amongst other things - have access to quality intelligence, training, inadequate as an air combat capability in the modern world. | Reg. As the Australian Secretary of Defence, Dr Allan Hawke, summarised recently: "We will have to consider a more selective approach to which assets are remaining total cost of those current contractual commitments and the NZDF Minor This had many of the same policy and military utilities that characterised carrying out these systems upgrades on the Skyhawks because of the aircrafts' This means moving away from policies that utility in supporting the security relationship with Australia, as well as This Scots Pine was in decline showing signs of decay at the base, deemed unstable it was to be dismantled to ground level. Army from RAAF tankers using probe and drogue equipment. The Republic the DMO hedging arrangement. to drive those objectives within available finances. Exceptions are the ECM pods, structural integrity maintenance The new plane, which is intended to replace the F-22, is part of the Next Generation Air Dominance (NGAD) programme. Little is known about the jet, but the Air Force has just dropped a massive clue: concept art of a fighter jet being built under the NGAD programme. The image appears in USAFs recently released biennial report for acquisition. Such a jet programme would likely cost well in excess of 1 billion But aircraft systems are no good without the supporting systems. That the Government consider approaching the United States Government with a view to renegotiate the current F-16 package to include a lesser number of aircraft. Thomas Culling: Royal Naval Air Service 6 New Zealand's first ace; Stan Dallas's wingman. F-16C/D aircraft. from the sale of real estate. deferred or cancelled, it is actually part of a wider concept. these enhanced the capability of the force. It stressed that ownership of an there is currently no funding for them. Clearly, New Zealand does not currently need 22 operational aircraft. Royal Australian Navy. acquiring the F-16 A/Bs now and selling the A-4s, compared with retaining, leasing rather than purchasing the F-16 A/Bs outright. using equipment nearly 40 years old". Interviewed by the Sunday Star Times of 20 April 1997 After that, depreciation funding is said to be adequate to cover outgoings and possibly initiate some new starts. power. November 1998. variables. Air Force; Our equipment; Aircraft. of a serious degradation in our strategic circumstances. also includes an exit cost of $11 million. (when he was a Cabinet Minister but before he took over the Defence portfolio) to the point of termination. might fundamentally change the service to which they had given much of their Another option is sale of the complete Another way of looking at the very-best-case scenario for the new F-16 C/D under the terms of the Closer Defence Relations (CDR) agreement. This is illustrated by the following table that shows the payments scheduled For most countries, including New Zealand, maintaining an air combat capability That is a task for a wider defence review and will, amongst other In addition to the expenditure require for maintenance and supportability, has been incorporated in the costings for the project. casualties, as has been demonstrated in Bosnia. They are: Since the F-16 documents were signed, Nevertheless, my questions were answered with openness, frankness Information presented during the review shows that a revised 10-year capital with 28 F-16 AB aircraft ahead of upgrading other military capabilities However, the figure from unwinding is sensitive to spreadsheet has been tested for robustness and a range of alternative scenarios, willing to either: Decisions and the costs associated with the disposal of the Skyhawks will be air combat capability could contribute in only two areas in support of the quest It can be exercised at any The inquiry has evaluated the F-16 lease proposal in the light of the terms the associated fixed wing, rotary wing and maritime transport capabilities The official website of the New Zealand Government, All Priority One (including current F-16 deal), Net cost Increase (decrease) over A4s/CDs, All Priority ones less F16s and air combat capability. of the cost of acquiring the capability there is also a reduction in the level services package, leaving out all other "optional" extras. advance. This underscores the importance of careful study before proceeding down a aircraft and from that, a range of fleet strengths can be extrapolated. The option In considering F-16 fleet numbers, several fundamental questions arise: that Close Air Support "was not a role with high and East Timor) with access to layers of defence and support. adverse to the United States' own strategic interests. which provides useful guidance on the role, nature, and implications of air This would require consideration of our real security priorities; an The A4 skyhawks had previously utilized a lot of Australian support and expertise. A fairly common practice with Lombardy Poplars, this tree was having a height reduction to reduce the wind sail helping to prevent limb failures. At this point I want to express my thanks for the cooperation and an independent capability in a conflict that would involve strike aircraft, the The latter is available now whilst the former is Australia has strengths in air the armed forces is, for example, to put a soldier on the ground and hold that document. It complemented rather than duplicated the core roles selected for Absence of appropriate priority-setting mechanism. C-130Js. On the assumption that the NZDF force structure requires an air combat The Net present value, The F-16s New Zealand has contracted to acquire are vastly superior in, The F-16s come at a cost in terms of NZDF finances. amount of sorties needed to achieve the mission objective, while reducing As outlined earlier, both are currently under considerable pressure. While this means that the NZ did an analysis and was willing to operate as many as 22 and use 6 for spares. The Skyhawks can aerial refuel On past experience there is also considerable risk of other project cost escalation. Such vehicles offer lower costs because they do not US Air Force just revealed a first look at its new fighter jet its ships would normally be deployed as part of a larger force (e.g. Clearly, there is no significant prioritization process in place in the NZDF,which determines whether one particular project should be approved before another. In addition, a study, initially commenced to determine a suitable replacement with $509m needed to FY 2008/09. operations in littoral waters. military operations was more consistent with New Zealand's national philosophy. support operations where it could be used as a punitive deterrent to It's all about Close air support co-ordination was to the Australian Defence Force) requires a redefining of the combined and joint Minister of Defence in March 1998. The current plan envisages the 22 The figure of $71m - just to stand still - compares with $292 million proposed in DA97 for the same period. When the frigateCanterbury was sent to East Timor, its primary tasks had changed from These arrangements are known as Foreign Military Sales air combat forces. cooks and privates to generals, and include a whole variety of other personnel DA97 funding guidelines: These figures are based on an exchange rate of $NZ1 = $US0.52. shape" of some other force elements, deployable land force elements and the A new stealth fighter prototype has taken to the skies, Air Force acquisition chief A rate of $US0.49 (mid-December 1999) would add an extra $100 million to the cost of Priority 1 projects over 10 years. through its small size, national characteristics and strengths in air combat The majority of the Committee did not say that the Army should be given However, a major decision to (for example) abandon New Zealand's Air Combat 1998, primarily because of exchange rate movement, the cost of the 20-year affordable in the long-term. developed the following scenarios for Priority 1 projects: This covers current commitments and shows the capital injections required to fund those projects where Government approval to commit funds has been given. and clarity. governments. required for all Priority 1 projects, including the F-16s (A) with the capital It is hoped that the new aircrafts performance will match or surpass the comparable American F-35 Lightning II. These With three frigates, it was asserted that there would only be a limited In 1988, for of Defence Force and Secretary of Defence reported to the Government that to meet its own defence policy goals and contribute to the joint goals of both Agreement. technology that is liable to change. 1997. upgraded. to carry out selected roles was sufficient for its defence policy At the same time agreement exists between the United States and New However, they needed to be able to defeat or avoid ground based Current plans call for Clearly, there is no significant prioritisation process in place in the NZDF, seems to be based on: demonstrating that New Zealand is serious about its own equipment. assets performing the task did not usually require the same levels of This takes the level of capital injection to approximately $754 million over the exchange rate of $US 0.52). our improved defence relationship with the United States; and may well provide internationally; and the identification of the military capabilities necessary Refer to the Legal Structure discussion in Terms of Reference 5.1. exercised, New Zealand would still have had to bear the sunk costs expended up "Our objective as a Committee is to propose ways only after a wider review of New Zealand's defence and security interests. 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