Government Defence Statement (Cont...)

A Modern, Sustainable Defence Force Matched To New Zealand's Needs

A Joint Approach

New Zealand needs a Defence Force which is trained, equipped, and oriented towards operating jointly in meeting New Zealand's security needs and interests. The first step towards this goal will be achieved on 1 July this year when the Joint Force Operational Headquarters begins operation at Trentham. The ability of the headquarters to operate effectively will be enhanced by a project now underway to acquire a modern joint command and control system.

The next stage will be to reorganise and rationalise the headquarters of the Defence Force and the three single services to reflect a joint approach to planning and to managing the NZDF.

A review of Defence Force outputs will be undertaken to ensure that its activities reflect a joint approach.

A Modernised Army

The review of land forces confirmed the recommendations contained in Defence Beyond 2000: that to meet the full spectrum of potential requirements the Army should have the ability to deploy and sustain a motorised light infantry battalion group consisting of:

• three rifle companies
• a reconnaissance company
• a support company to provide close-in direct and indirect fire support, and communications
• task tailored support units to provide longer range indirect fire support, and engineer elements to deploy, manoeuvre and sustain the force
• command, control and administrative elements.

The actual size of the battalion group to be deployed depends on the type of operation, the support being provided by other countries, and any support available from the host nation.

The current structure of the Army is based on two light infantry battalions within a brigade framework. These two battalions provide a capacity to sustain a 600-900 person commitment for a year and a 900-1,200 size battalion for six months. These levels can be enhanced by the deployment of territorials when and where necessary.

Where extra personnel are needed, as in East Timor, enhancing New Zealand's ability to utilise territorials and cross employ regular force specialists provides a cost effective solution. New Zealand's territorials have performed with distinction in East Timor alongside regular troops.

For this solution to be fully effective, however, service in the Territorial Army needs to be more attractive to both territorials and their employers. The government is looking at ways to address these issues. There may also be a need to increase the size of the Territorial Army.

The acquisition of new armoured vehicles, tactical communications and light operational vehicles to replace the Landrovers will address the major immediate equipment deficiencies. Other new investment requirements include:

• Close-in fire support, including for protection against armoured vehicles
• Vehicles and sensors to equip the reconnaissance companies
• Command and control
• Combat service support.

In the medium term, other capability issues to be addressed are engineer support, artillery, air defence, and electronic warfare. There will also be a need to examine the implications of new technology, particularly in the areas of command and control, battlefield surveillance, target acquisition, and relatively new concepts such as non-lethal weapons.

All of these requirements are part of a continuous improvement programme to achieve and maintain a modern army. The Ministry of Defence and the New Zealand Defence Force will be undertaking a number of studies to develop and to programme capital acquisition proposals in these areas.

Sealift

There are two aspects of sealift, strategic and tactical. Strategic sealift involves moving heavy and large equipment from New Zealand to an assembly area, normally a fixed port, where the equipment is married up with personnel deployed by air. Tactical sealift requires a capability to deliver both personnel and equipment directly into the operational area without requiring access to a port facility.

Both requirements were demonstrated in the East Timor deployment. Strategic sealift was provided by a chartered commercial ship from New Zealand to the assembly area in Darwin. From Darwin, the equipment was deployed into the Suai operational area by a French military tactical sealift ship which had the ability to off-load the armoured carriers and heavy trucks over the beach.

Requirement for sealift is sporadic - the deployments to Bosnia and East Timor were the only occasions where strategic sealift was required, while a tactical sealift ship could have been used for the operations in Bougainville and Solomon Islands. For the majority of time the ship would not be needed for sealift duties. Generally, the slow speed and poor manoeuvrability of sealift ships limit their usefulness for other maritime tasks. Their hull design usually means such ships are unsuitable for safe employment in the Southern Ocean or Ross Sea.

Given the infrequent need for sealift, the ability to charter commercial ships when required, and the lack of versatility for other tasks, the acquisition of a dedicated sealift ship is not considered a wise investment. A better investment would be a multi-role ship which can undertake a number of roles in our region, including a limited tactical sealift capacity for such operations as disaster relief in the South Pacific.

Whether or not HMNZS Charles Upham would be a suitable strategic sealift ship after further modifications, the Navy would be investing about a further $35 million in a ship with limited utility which would not be capable of meeting the requirements for a better surface maritime patrol capability. Most of the time the ship would be tied up alongside at Devonport. The government has therefore decided that:

• Any future requirement for strategic sealift will be met by charter arrangements, as was the case for the deployments to Bosnia and East Timor.
• HMNZS Charles Upham will be taken out of service and sold when it completes its current charter in July of this year.
• The requirement for a limited tactical sealift will be considered as part of a review of the composition of our maritime surface fleet.

Maritime Patrol

Last August the government was confronted with a decision on upgrading the Orions because of a looming contract deadline. Agreeing to the plan developed by the previous government would have committed close to six hundred million dollars before there had been a proper assessment of the need for the sophisticated anti-submarine warfare capability proposed. The government declined to proceed with the project, and instead undertook a review to examine the wide range of non-military requirements for maritime patrol surveillance and how they could be met, and whether or not a military patrol capability should be maintained.

This review took a "zero-based" approach, involving for the first time a comprehensive "whole-of-government" view of maritime patrol. The review showed that little information was available on New Zealand's needs or experience in collated form. There were nine or ten separate agencies monitoring ocean areas for their own purposes, but little understanding of how well maritime patrol was being done from a national perspective.

This is surprising given the importance of New Zealand's maritime environment to the nation's economy and quality of life. New Zealand's EEZ, encompassing over four million square kilometres, fifteen times the size of its land area, is the fourth largest in the world. Each year over 2,400 ship visits carry about $20 billion worth of trade through these waters. There are some 2,560 coastal commercial vessels, 1,630 fishing vessels and over 250,000 recreational vessels. Fishing alone has an annual harvest value in the region of $1.5 billion. The fishing industry contributes $4.5 billion to the economy, employs over 10,000 people directly and over 16,000 indirectly. Customs and border control is an important consideration which covers the interests of 20 government agencies and 44 government outcomes. Maritime safety is also important. There are approximately 160 oil spills reported each year in New Zealand waters, and there are approximately 540 maritime search and rescues operations annually.

The review concluded that better co-ordination and tasking arrangements were needed to match maritime patrol arrangements to all of New Zealand's needs; and that a significantly higher level of surveillance was required from both airborne and sea surface platforms.

A number of reasons were identified in the review why it would be prudent to retain a military maritime aerial surveillance capability. These included the enforcement of sovereignty within the EEZ, assistance to our Pacific Island neighbours, and working with Australia in pursuit of shared interests.

The review recommended that a capacity for long-range maritime air patrol be maintained for both civilian purposes and military requirements. As New Zealand has in recent years invested around one hundred million dollars in upgrading the Orion fleet, it made little sense to look for another aircraft for long range patrol.

Also identified was a need for short and medium range air patrol. While that could be provided by civilian contractors, there is also potential for the RNZAF to meet it with additional aircraft similar to the King Air aircraft currently used for multi-engine training. A separate study is required to identify the most cost effective solution.

The review also identified a need for increased coastal and mid-range offshore surface surveillance. The last of the older Leander class frigates will soon reach the end of its useful life. This provides an opportunity to review the composition of the Navy's surface fleet to ensure that the civilian needs for surface patrol and surveillance identified in the review are also met.

The two ANZAC frigates together with the support ship, HMNZS Endeavour, are adequate for more distant military requirements. They will be significantly enhanced by the delivery of the new Seasprite maritime helicopters later this year. These vessels, however, are over-equipped for the maritime patrol tasks identified in the review, while the current fleet of inshore patrol craft is not capable of undertaking this role. Work will proceed on identifying a suitable multi-role vessel with long distance and Southern Ocean capabilities to be phased in as the HMNZS Canterbury is retired.

At the same time, there are some subsidiary issues associated with the current structure of the Navy which need to be examined. These include the need for and priority to be accorded the Naval Control of Shipping role performed by the RNZN Volunteer Reserve; and the need for the range of medical services maintained at Devonport.

The government has decided to:

• Establish a Maritime Co-ordination Centre responsible for integrating the work of all agencies to ensure that there is a comprehensive national strategy for managing maritime risks. The Centre is to be co-located with the NZDF Joint Force Operational Headquarters at Trentham and it will be responsible for tasking maritime patrol assets to meet civilian needs.
• Retain the Orion fleet, and provide a limited upgrade for it, using good quality commercial systems wherever possible.
• Undertake a study to determine the best options for short and medium range air patrol.
• Implement a study to identify the optimum composition of the future RNZN surface fleet, taking into account the civilian requirement for coastal and mid-range offshore capabilities and the roles to be performed in conjunction with New Zealand's responsibilities and obligations in respect to the Southern Ocean and Ross Dependency. The review will also examine the need for tactical sealift relating to disaster relief and other tasks in the South Pacific, and the need for and priority to be accorded to the roles assigned to the RNZN Volunteer Reserve.
• Identify a suitable multi-role vessel with long distance and Southern Ocean capabilities to be phased in as the HMNZS Canterbury is retired.
• Complete a review of the need to retain the clinical service business unit of the Naval Hospital, and to determine the best location for the Hyperbaric Medicine Unit if the clinical service unit is closed.