26. To meet the Government's defence policy objectives the NZDF must be able to offer an adequate range of capabilities which are realistically attainable.

27. Priority will be given to investing in force elements which are trained, equipped and maintained at appropriate levels of combat viability and readiness. Available resources will be concentrated in areas where they are most needed. This will mean a shift towards a range of military capabilities which are sustainable, safe and effective in combat and in peacekeeping, and structured for maximum operational and political impact.

28. The three armed services work most effectively when they work together. To ensure a fully coordinated and structured approach to joint operations, the existing Navy, Army and Air Force operational headquarters will be combined into a joint operational headquarters.

29. Seven principles will guide the Government as it reshapes and structures the NZDF. They are that the NZDF is:
    • Equipped and trained for combat and peacekeeping. In order to fulfil the key tasks the Government envisages for the NZDF, it must be appropriately equipped and trained for both combat and peacekeeping.

    • Deployable. Being able to bring forces to bear when they are most needed is dependent on deployability. This is of particular concern to New Zealand. To be able to deploy and sustain our forces, particularly over large distances, requires a flexible and adaptable mix of air and sealift capabilities.

    • Able to operate alongside other forces. Exercising bilaterally with Australia and multilaterally through the FPDA builds up the NZDF's interoperability.

    • Held at appropriate levels of readiness. It is a false economy not to have the NZDF equipped and trained at appropriate levels of readiness.

    • Sustainable. Deployments may be for long periods and involve rotation of personnel and equipment. NZDF resources will be managed to ensure that commitments can be sustained.

    • Up to date in technology and doctrine. It is essential that the NZDF keep abreast of technological and other changes in military operations, the so called Revolution in Military Affairs (RMA), in order to retain operational effectiveness. The costs these developments pose are a considerable challenge for small countries like New Zealand. The Government believes that a programme of progressively introducing new technology can help meet this challenge, but consideration will also need to be given to retaining a lesser range of capabilities.

    • Fiscally sustainable. The Government wants to ensure that our defence dollars are spent wisely. We will focus our rebuilding efforts in areas of most urgent need.

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