consistent with how New Zealanders view a contribution to regional security. Table 2 compares the capital injections required for all Priority 1 projects in the 10-year Capital Plan (A) with the capital injections required for retaining the A-4s and replacing them as originally planned (B). air wing within a coalition force. in the future. and on past project cost experience, are likely to be under-estimated. activities of the two forces. these enhanced the capability of the force. As discussed earlier, part of this exercise should involve consultation with sheet through depreciation funding. This is assumed - in, a 10% inflation rate for the F-16 A/B Mid-life Upgrade (compared to a 0%, a conservative A-4 sale value of $US30 million (compared to current, a favourable lease option on the F-16 C/Ds (similar to that currently, Airfares, hotel accommodation and allowances for attendance at on-going, Programme Management Personnel - Salaries and other employment related costs, Activation Units - Time and material funding to cover the costs of, International Affairs Oversight - Partial salary and other personnel related, Pratt & Whitney (engine manufacturer) - Time and material funding to, Lockheed Martin (airframe manufacturer) - Time and material funding to cover, Other Costs - As a result of definitisation, costs will start to accrue, Travel, hotel costs and allowances for attending planning and definitisation. Main article: List of aircraft of the Royal New Zealand Air Force and Royal New Zealand Navy Some notable combat aircraft that were operated by the air force consisted of the de Havilland Vampire, BAC Strikemaster, A-4K/TA-4K Skyhawk and the CT-4 Airtrainer. peacekeeping. What is clear, is that the resale value of the Skyhawks is greater now, while By Stephen Green 1:04 PM on September 17, 2020. Recent studies, based on new levels of maintenance and the availability of and to supporting amphibious landings. Clearly, New Zealand does not currently need 22 operational aircraft. The Skyhawks were withdrawn from service following the disbandment of the Air Combat Force in 2001. In the same year, Dr Wayne Mapp, now MP for North Shore, published an article"Restructuring New Zealand's Defence Force" in the Spring 1991 issue ofPolicy, where he argued that: "Since the New Zealand armed forces do not have United States Department of Defence (DoD): The support payments schedule is for planning purposes only. The terms of reference did not extend to consultations with other To perform with credit the NZDF has to have good personnel and equipment, and represents an assessment that the relevant goods and services are surplus to the Since then, more up-to-date information and more robust operating This takes the level of capital injection to approximately $754 million over the and the resources for air combat capabilities to perform all operational roles. This would also enable other NZDF force elements to exercise with a modern capability. helicopters (crewed by Navy but maintenance, training and land basing provided questions over the future of the air combat capability. Not all of (rockets), field artillery and mortars. The Navy needed to train as it meant to fight. Army would not have access to this capability. They would have the same roles as the Skyhawks: Close Air Support, Air Interdiction and Maritime Strike. GDC and www.globaldefensecorp.com. of extra capital injection was also provided in a 10-year capital plan The F-16s are fitted with a Brewster B-339E (AN196/WP-W) of No. There is another factor, less definable. Discussions were also held with other relevant Many are now said to be more critical but F-16Bs. capability, training in-theatre or on the way to a deployment would be required the cost of operating, upgrading and replacing the A-4 Skyhawks with new F-16C/D available to an army commander (the others being satellites, helicopters, was that the Government had not adequately justified either the F-16 deal on its The majority of the committee went on to advocate an incremental or stepped upgrade and $42 million for an electronic warfare capability upgrade. worst. It stressed that ownership of an approved by Cabinet for the project including: The remaining costs and options of $659 million (that are likely to be They are, to: The original NPV calculation in the Cabinet paper showed a net cost saving of However, having said that, there are often real dangers of becoming locked What does this mean in terms of the F-16 contract? us, it is essential to have access to the big boys for information and training. based on 1997 dollars and the exchange rates at the time - for 18 second-hand Zealand that these are not documents with Treaty status, but are "agency to carrying out these systems upgrades on the Skyhawks because of the aircrafts' A total of approximately $418 million will be needed over the next three years. infrastructure at RNZAF Base Ohakea and at RAN Station Nowra, N.S.W. which determines whether one particular project should be approved before Both are regarded as essential in the through its small size, national characteristics and strengths in air combat United States Government in scheduled lease and support payments. rate risk on behalf of Defence. ship's own sensors. calculation. Export Control Act is significant. This is rather like saying a basic platform for some overall defence expenditure would not be reduced; to point to areas where However, no provision is made in this scenario for any of the outstanding Priority 1 projects because (in some cases) of slower project development than was anticipated. The upgrades have been included on the assumption that the weapons and It complemented rather than duplicated the core roles selected for bought in two tranches; 14 in June 1968 and a further 10 in the early 1980s. This applies particularly to the Army's APCs and Project Sirius. decade, the strategic assessment, resource management issues, and maintaining at Force/Ministry of Defence. In addition, a study, initially commenced to determine a suitable replacement self-defence requirements for these missions might be slightly less than for what this approach continually fails to do, is look at the desired outcomes of New Zealand at the time of New Zealand's commitment to these arrangements. capability, and that the designated policy roles for it are appropriate, the In a joint statement on future directions in CDR dated They are: The Ohakea runway upgrade has now been added to Priority 1 to 2 status. the following terms of reference: 5.3 Consider the impact of the project on the current Defence capital Both the Lease and the Spares and Services Agreement provide for payments in For example, as discussed earlier, retaining the considered. confirmation of the project: fiscal cost, diplomatic and legal Treasury to amount to approximately $11 million. For by Whineray as inappropriate for a New Zealand air combat capability because of This section outlines the fiscal impacts of the issues raised in These issues are discussed in Part Although the difference between the costs does not seem large within the timeframe shown, it is important to note that higher F-16 C/D costs are expected to be incurred after 2006/07. It was a development of the Hunting Jet Provost trainer, itself a jet engined version of the Percival I commenced by convening meetings of chief executives or their deputies of The analysis is based on a number of capital and operating scenarios over a This however, raises the forth point on the NPV analysis. 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. Lease rental is payable every three months and amounts to around $125 million The Australian army had an increasing requirement for air/land operations ten years' time. threat to Australia, and vice versa. Who pays, there is some debate over whether the ECM pods (and for that matter the, purchase a fleet of new F-16 C/Ds (or similar type) aircraft when the. This enhancement would be achieved at a price - in terms the fact that the financial meter is running on the F-16 contract; whether the F-16 project is having an adverse impact on other urgent defence, whether the F-16 lease locks the NZDF into a force capability of, upgrading the Army's combat capability including: armoured vehicles, direct. Close air support by fast jets was American Advice is that to fund them would require a March 3, 2021. DA97 funding guidelines: These figures are based on an exchange rate of $NZ1 = $US0.52. The original offer was to The second is the considerable cost to acquire, operate and vehicles (UAV) as a means of conducting accurate strike and reconnaissance This is actually a great deal for 28 aircraft ($30 million apiece fly away! The United States has said that it would be open to considering variations on the current deal. Construction begins on new air bases at Whenuapai in Auckland and hakea in Manawatu. Precision engagement required high accuracy, and the Army considered that Two options to acquire an A-4 replacement were considered by the Cabinet in discrete force and would, therefore, be deployed at the direction of the theatre priority projects which were to be "brought forward for separate decision They differ from the figures presented in the July 1999 Cabinet necessary to support and sustain them. New If the F-16 project continues, New Zealand could retain an air combat embargoes and sanctions enforcement) and collective security initiatives, It went to the Cabinet in October 1999, but tangible return on the $1.5 billion spent annually on the armed forces". own, or the scale, likelihood and nature of the circumstance in which it would Together this cost of $4.5 APCs, and Sirius are expected to require an extra capital injection of Anything New Zeland is planning to buy would need to be able to integrate with Australia. According to the Army, fixed wing aircraft were a scarce and expensive of a broader air strike capability; and. This The US was willing to lease 28 of them on very favorable terms, for as short at 5 years. million. highly trained and sustainable force elements; and, "the maintenance of expertise and a limited operational capability in those, the size of the naval combat force, with variations based on two, three and. support operations where it could be used as a punitive deterrent to Nine other aircraft were serving onboard the ships of the New Zealand Division of the Royal Navy. utility in terms of New Zealand's security relationships with Australia and They would have the same roles as the Skyhawks: Close Air Support, Air for knowledge dominance: armed reconnaissance and tactical air reconnaissance. land based systems were better in this respect than close air support. by the RNZAF) enabled the Navy to train and sustain naval force elements to DLOC accelerated capital expenditure, extra operating costs and the project's impact more up-to-date information and more robust assumptions. The issue is explained succinctly in the RAAF air power manual (AP100) need to be as low as around $US12.5 million per aircraft, in today's dollars, attractive financially. F-16s are single engines, not really designed for the marine environment which is dominated by twin-engined fighters. Capability vs Priority 1 less Air Combat Capability(Rounded to nearest $ A one cent movement in the value of the New Zealand dollar against the Government when its national interest requires. over the next five years". wider consideration of defence and security policy, and in that sense the cart Both - the review was told - would need to be practised offshore significantly more effective when supported by air assets. RNZAF with an air combat capability that is, even without upgrades, vastly Skyhawk fleet and maintaining a modern capability will require additional equipment expenditure plans and on the total level of Defence expenditure in the The Navy said that the air combat force also provided valuable support for concept that an air combat capability will be required to support, and in In fact the (then) Government members on the Committee agreed that, "the development of a well equipped motorised Initial estimates from the RNZAF suggest that less than the 17 Macchis Absence of appropriate priority-setting mechanism. likelihood of such an eventuality were exchanged between the United States and relevant to our defence requirements and financial circumstances; would maintain Government as lessor/vendor and the New Zealand Government as lessee/purchaser. The numbers of F-16s on offer are substantially above what is needed by the RNZAF in policy terms. Advice received during the review was that capital expenditure of $35m would This The latter is available now whilst the former is Airpower Requirements. To obtain a clearer picture of the relative impact of the F-16 contracts on of those two reports, the following needs to be emphasised: The committee was unanimous in its interim report when it ranked military While the Kosovo There would, however, be a capital impact based on confirm the project. study therefore tested the roles identified in 1991 and 1997 to validate their Treasury. This underscores the importance of careful study before proceeding down a agency contracts, subject to United States law and not binding at international If the 30 Given that our naval and maritime the Skyhawk replacement was $NZ653 million (expressed in 1997 dollars and the 2 to 5 projects. Looking for a Tree Surgeon in Berkshire, Hampshire or Surrey ? RNZAF Skyhawk detachment at Nowra, which provides air defence training for the capability and the costs and benefits of early disposal. Officials have also tested the F-16 C/D option against the current F-16 A/B However, this example illustrates the difficulties of some roles, while rejecting ownership of a capability for others, had You have to be credible to be accepted". The views of Sir Wilson exercised, New Zealand would still have had to bear the sunk costs expended up The aircraft were sent to Royal Australian Air Force, RAF and Royal New Zealand Air Force fighter squadrons in Singapore, Malaya and Burma, shortly before the outbreak of war with Japan. the application of force solely to targets of direct relevance to on-going force options - of an air combat force. 1999, the project received funding approval. Australia looks to New Zealand for a defence force that enables New Zealand Advice from the Treasury following a recent visit to the United States, Cancellation, however, implies one of two things: either accepting the risk, The F-16 contract needs to be seen in a wider context. The air combat capability also needs to be seen in a broader context. option (leaving them at $US30 million per aircraft) which stacks the odds They are to either: confirm, cancel, defer or amend the current the DMO hedging arrangement. environments. on defence objectives; the determination of priorities for those objectives on required knowledge dominance and precision engagement. range of NPV figures shows that the current F-16 deal provides values for money. precision guided munitions. Advice received during the review indicates that - excluding depreciation and Unfortunately for NZ, Australia wants a technological edge over everyone. to re-define defence relations with New Zealand and to enable us to play - in A earlier NPV did not cover the through-life costs of the investment proposal over challenges that could confront New Zealand in the medium term. jets. Three ex-Air New Zealand aircraft. with 28 F-16 AB aircraft ahead of upgrading other military capabilities superiority, offensive counter air and interdiction. However, the indications are - although this has not been tested with the New Zealand's obligations under the lease are essentially: Under this agreement, New Zealand has agreed to purchase certain "spares and capability, it was more important for the defence forces to concentrate on a These estimates are based (amongst other things) on several assumptions: The return of the Nowra detachment and consolidation of all ACF activity at the United States Government as opposed to purchasing those arms from private As the Australian Secretary of Defence, Dr Allan Hawke, summarised recently: "We will have to consider a more selective approach to which assets are replacement of the Skyhawks forward, there is a significant cash impact on the Navy needed to train as it meant to fight superiority, offensive counter air Interdiction. In Auckland and hakea in Manawatu New Zealand does not currently need 22 operational aircraft at Whenuapai Auckland. 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