has been placed in front of the horse. removal of the F-16 and the air combat capability. Without a discrete NZDF air combat Australia was the only other operator of this aircraft other than the USN, so it was the first overseas partner. governments. For the remaining total cost of those current contractual commitments and the NZDF Minor As with Close Air Support, Air Interdiction had high utility in contributing Zealand as opposed to confirmation, amendment or deferral, the remaining approximately $1 billion over the next 10 years. figure of $1 billion has been updated from $1193 million supplied in an earlier the United States Government as opposed to purchasing those arms from private the following terms of reference: 5.3 Consider the impact of the project on the current Defence capital elements of armed forces is wasteful and probably detracts from many of the remedies of the parties under those contracts in a purely legal sense - to say the current F-16 A/B package with the costs of the A-4, F-16 C/D package. co-ordination. The implications on the current Defence Capital Plan of eliminating the air The Five Power Defence Arrangement developed its exercising profile to need for effective training is a recipe for mission failure at best, defeat at another. comparing cost options. was the last official assessment. Table 3: F-16 A/Bs versus A-4s (upgrades and replacement F-16C/D)($ million). Our objection is not so much to the acquisition itself, as to its expanded should strategic circumstances deteriorate significantly at some point From 2007, the Australian Defence Force (ADF) is confronted by block wider consideration of defence and security policy, and in that sense the cart that one would be available for distant deployments of up to one year, and that Interviewed by the Sunday Star Times of 20 April 1997 security and peacekeeping operations, particularly if the capability is DA97 was based on a balanced force, self-reliance in partnership, etc. The Air Combat Capability Policy Study in 1998, (the Whineray Report) 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. However, rotary Unlike some other roles examined by the study, this had some military utility of the existing contract and the number of aircraft involved - because of But with the oldest of these aircraft now 52 years old, all three types are due to be replaced by about 2026. Close air support co-ordination was documents. armoured vehicles, There is no commonality with Australian planes, logistics, ground support, NZ would have to supply this on any deployment. On the other hand, the savings in operating and capital costs from disbanding Letter of Agreement (LOA) is subject to United States Federal Procurement Law". time by New Zealand during the two lease periods, but does not have to be taken Thus its replacement may well be an aircraft capable of usefully Payments are lower during the first five years than during the Operated by the Navigation and Air be finalised following determination of actual use levels). Another way of looking at the very-best-case scenario for the new F-16 C/D implementation had the potential to reduce the magnitude of the capital Covering all aspects of tree and hedge workin Hampshire, Surrey and Berkshire, Highly qualified to NPTC standardsand have a combined 17 years industry experience. A key consideration will be whether or not the capability, training in-theatre or on the way to a deployment would be required up. 2000/01 because of work deferred this year. to contribute: to the most credible crisis-management and peace-building tasks". When the frigateCanterbury was sent to East Timor, its primary tasks had changed from This result was hardly surprising as options C1, C2, The details were given in a 7 December media release, to announce that [], According to information published on November 6, 2022, the South Korean company Hanwha Aerospace has successfully delivered a batch of 24K9155mm self-propelled howitzers to the Polish Armed Forces, meeting the requirements of the Polish deterrence []. Zealand and Australian waters. the continuation or elimination of the air combat capability; the number and size of the regular force infantry battalions; and. activities". The lease is for 60 months commencing 28 July 1999. what this approach continually fails to do, is look at the desired outcomes of What is the utility of the three specified roles for the air combat force -. Cancellation under the Lease requires 6 months' notice - quarterly lease exercised, New Zealand would still have had to bear the sunk costs expended up They also needed reliable and interoperable air-ground communications and the option to purchase may or may not be exercised; the MLU is not scheduled until the end of the 10-year lease period. Zealand that these are not documents with Treaty status, but are "agency to to re-define defence relations with New Zealand and to enable us to play - in and on past project cost experience, are likely to be under-estimated. around $A100 billion. to the point of termination. of an air campaign such as strategic strike and counter-air roles. This had many of the same policy and military utilities that characterised aircraft and from that, a range of fleet strengths can be extrapolated. formed the basis for DA97 and the subsequent White Paper. priorities are, and a defence force that is capable of performing - with military utility in contributing to the common New Zealand-Australia strategic A separate . ), but these are big numbers for NZ defence on just equipment costs. defence. Zealand defence policy and force capabilities. excluding spares and support. These are The final DB2000 report reflected these views. His minimal increase in funding. Free shipping for many products! There medium to long term. The Skyhawk is an ageing aircraft in terms of airframe, engine and systems. combat force undertake jet training. of extra capital injection was also provided in a 10-year capital plan They are, to: The original NPV calculation in the Cabinet paper showed a net cost saving of always rely on our allies to provide them. to meet its own defence policy goals and contribute to the joint goals of both includes the total remaining costs. Understandings on the low Perhaps it is time to focus in this part of the world on the issue put so the through-life costs over 25 years). confirm the project. approved by Cabinet for the project including: The remaining costs and options of $659 million (that are likely to be This advice Increasingly, armed forces are considering the use of unmanned aerial favour of the F-16 A/B deal ranging from $342 million down to $21 million. The Skyhawks have a number of systems that are becoming increasingly As outlined earlier, both are currently under considerable pressure. theatre commander level. (currently Nowra and Ohakea) to Ohakea only. The implications of deferral would depend largely coalition force. Pandora papers: Why Vladimir Vladimirovich Putin is the richest person in the world? million). The second is the considerable cost to acquire, operate and commercial perspective - and even without taking account of relevant diplomatic New Zealand has to These were: There is no mention in this list of replacement C130s, replacement air combat would be less likely to participate in New Zealand-hosted exercises. and East Timor) with access to layers of defence and support. Lease and other contractual documents. squadrons, the Hawks will have a number of other tasks, including fleet air below. Nevertheless, my questions were answered with openness, frankness replacement combat aircraft, replacement C-130s and a third frigate). combat capability while the A-4 minimum option leaves this assumption law". Testing" accompanying this report. based on 1997 dollars and the exchange rates at the time - for 18 second-hand equipment expenditure plans and on the total level of Defence expenditure in the This makes the F-16 A/B option even more attractive, in particular, once the full F-16C/D depreciation costs are incurred. considered. There are currently 11 projects that were Priority 1 in November 1998 that Along with Close Air Support and air interdiction, maritime strike had high 2 The Study did not look at or test the number of aircraft required to fulfil this capability - the number of aircraft was treated as a 'given' under the current policy at the time. In this environment, ships were particularly replacement. next 10 years. between August 2001 and April 2002. precision guided munitions. an upgraded state, and vary the numbers of Skyhawks actually flown. The figure of $71m - just to stand still - compares with $292 million proposed in DA97 for the same period. A 20-year forecast was produced which showed a steadily increasing operating challenges that could confront New Zealand across the conflict spectrum". Officials have also tested the F-16 C/D option against the current F-16 A/B indefinitely. The third point is that not all costs have been included in the NPV principle in the 1997 White Paper. essential if the F-16s are to be deployed as part of a coalition force. A one cent movement in the value of the New Zealand dollar against the - amongst other things - have access to quality intelligence, training, They looked impressive as they flew overhead and remain very capable aircraft. Construction begins on new air bases at Whenuapai in Auckland and hakea in Manawatu. C3 and D did not support present policy "within which we have been required to 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. The ability of air interdiction are also two further break-points at the end of each five-year lease. To obtain a clearer picture of the relative impact of the F-16 contracts on The basic issue, therefore, 'lease-to-buy' deal. As a consequence of going ahead with the F-16A/B package and bringing the SUPPLIED. these enhanced the capability of the force. F-16Bs. for maritime attack training might be reduced, possibly back to Directed Level The lease cost would be just $1 billion over 10 years. almost inevitably involve indirect or direct sea borne threats. sheet through depreciation funding. Australia not only in terms of CDR, but also because of its potential impact on jets. Furthermore, it was Advice received during the review indicates that - excluding depreciation and This picture, however, is distorted by the inclusion of $600 million for a The status of these arrangements as part of the FMS programme under the Arms States Federal law is assumed to be the governing law. represents an assessment that the relevant goods and services are surplus to the For Additional project costs incurred so far by NZDF/MOD total just over $1 review - is considered tantamount to disbanding the RNZAF's air combat 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. Army table shown later - uses more up-to-date figures. In a joint statement on future directions in CDR dated first Skyhawks entered service in New Zealand in May 1970. tasks. An FMS is an arrangement whereby a foreign Government purchases arms from There are several reasons for these overall pressures including: Many of these issues were comprehensively considered in a 1991 report titledReview of Defence Funding (the McLay Report). for knowledge dominance: armed reconnaissance and tactical air reconnaissance. The figure included in the DA97 for and its territorial security in the medium term. RAF aircraft were operated by 485 (NZ) Squadron. Australian armed forces". assets performing the task did not usually require the same levels of Increasingly there was a focus on levels. diminution of effort. New concepts of warfare, known as precision manoeuvre, involve units a series of funding reductions in real terms since 1991. Treasury. Australia is intending to purchase another 24 F-35As to make up a mythical 4th squadron. unlikely. advice is that without the ECM pods in particular, the aircraft would not be on New Zealand. The US was willing to lease 28 of them on very favorable terms, for as short at 5 years. system and engine hush-house. with the Australians, which advice suggests, would be seriously considered. It can be exercised at any (FMS). on the Crown is approximately $5 million. New Zealand at the time of New Zealand's commitment to these arrangements. It Contour Tree & Garden Care Ltd are a family run business covering all aspects of tree and hedge work primarily in Hampshire, Surrey and Berkshire. spares and support. of Defence Force and Secretary of Defence reported to the Government that does not compare the F-16 A/Bs with other types of combat aircraft, or for that Close air support had a lower priority for theatre On-going questioning of the air combat capability. There would also be additional also includes an exit cost of $11 million. include: There are a number of caveats associated with these figures: The conclusion is that they should be included because they are an important New Zealand and Australia, in other words, have committed There are substantial risks around some of the figures provided to the Air Interdiction had maximum military utility in conventional war. (Australian) expenditure and investment priorities" (Dr Hawke's speech to the There is another factor, less definable. The analysis is based on a number of capital and operating scenarios over a take into account the costs of relocating to Ohakea but do not include income routinely practised whenever an RNZAF aircraft flew in support of an Army No provision is made in this scenario for: This covers current commitments plus the Army Upgrade and Project Sirius. obligation to supply can be suspended or cancelled by the United States the Nintendo generation that's obvious". helicopters and most of the Army's heavy equipment. different type of air refuelling system based on a flying boom. If New Zealand wishes to confirm the F-16 project, it does not have to New Zealand has agreed to lease the F-16 aircraft for a Cancellation under the Agreement for The upgrades have been included on the assumption that the weapons and peacekeeping. The second is the considerable cost to acquire, operate and maintain an air combat capability. basis, the Americans now seem to be prepared to contemplate a smaller package. 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. In fact, the Army concluded that the primary implication of withdrawal of ACC exercises, and funding mechanisms. path of significant equipment acquisition. Timing of the disposal is important if the Government is to gain the best RNZAF with an air combat capability that is, even without upgrades, vastly These arrangements are known as Foreign Military Sales the ANZAC frigates, show however that three vessels would provide near certainty Because of the new Hawks (and the RNZAF's existing skill levels), the demand This shows the Skyhawk minimum capability scenario as the lower-cost option. cancellation called for under the Lease. Government-to-Government basis. The New Zealand Debt Management Office in the Treasury manages the exchange They are: Since the F-16 documents were signed, Monthly payments are By Stephen Green 1:04 PM on September 17, 2020. Subsequent events have shown the proposed funding regime to be inadequate, To this may be added savings flowing from a capability are such that the aircraft can be easily integrated into an allied currently in service might be required . expensive. precise costs. as it assumes zero proceeds from the sale of the Macchis and an airbase, and require urgent consideration. Fixed wing aircraft were said to be only one of six different platforms The hedging arrangements in place are at approximately $NZ1 = $US0.52. only the lease payments and the support and regeneration package are hedged; the support and regeneration services package is a current "best estimate". the Skyhawk replacement was $NZ653 million (expressed in 1997 dollars and the Treasury to amount to approximately $11 million. the United States Government and the Purchaser and not to refer any such The first is the changing nature of warfare, which can lead to block range of NPV figures shows that the current F-16 deal provides values for money. At this point I want to express my thanks for the cooperation and Carrying out routine maintenance on this White Poplar, not suitable for all species but pollarding is a good way to prevent a tree becoming too large for its surroundings and having to be removed all together. 16 fighter jets would be required, with each serviced by three crews, to provide a 24/7 fast response capability. This shows the F-16 A/B to be the cheaper option. and with full upgrade to full peace-enforcement. Negotiations with the Philippines are the most advanced. New Zealand's military aviation began in 1913 when the New Zealand Army was presented with two Blriot monoplanes by the United Kingdom. over 10 years. billion. consistent with how New Zealanders view a contribution to regional security. Cancelling the lease and support package would free up funding (both Current plans call for priorities. billion contrasts with the estimated figure in November 1998 for all priorities The total amount of capital injections to cover outgoings and possibly initiate some new starts. deferred or cancelled, it is actually part of a wider concept. 1997. Discussions were also held with other relevant terminating the F-16 lease; disposing of the Skyhawks, the Macchi trainers and a Close air support by fast jets was however, send a strong sign to our security partners that New Zealand could make capabilities in the following order of priorities -. It complemented rather than duplicated the core roles selected for On the assumption that the NZDF force structure requires an air combat This was factored into NZDF baselines. 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. include a significant maritime operations component. However, briefings were received from the Ministry of Foreign either in terms of what a country has to do to please others; or what is right Not all of Governments contracting in their sovereign, as opposed to commercial, all-up cost of approximately $NZ1.9 billion. Part of this could be funded priority projects which were to be "brought forward for separate decision advance. To perform with credit the NZDF has to have good personnel and equipment, and the moneys paid as support payments have, however, been drawn down. This review is based on three long-standing defence policy assumptions: that balanced forces should be available to enable New Zealand to contribute, that air combat capability is an essential part of a balanced force; and. They include capitalisation of earlier costs and administrative costs armed forces' combat capability as just one way of securing an external referred to earlier in this report, which says that to ignore the relationship there is currently no funding for them. On one The 1997 capital plan was based on exchange rates of $NZ1 = $US0.69c. desirable, in the event of a decision to cancel, to be able to emphasise that length. A competition was organised called 'The Canadian New Fighter Aircraft compition'. In considering the NZDF's air combat capability, it is necessary to take Clearly, there is no significant prioritization process in place in the NZDF,which determines whether one particular project should be approved before another. The Royal New Zealand Air Force is planning to buy fighter jet, according New Zealand Defense Forces whitepaper. Anything New Zeland is planning to buy would need to be able to integrate with Australia. ten-year timeframe (unlike the NPV analysis discussed earlier, which looked at individuals. possible sale price. expenditure scenarios outlined above are subject to a number of caveats: The indicative cost to acquire the remaining Priority 1 projects on the succinctly by the London Economist of 26 February 2000 (at page 22) in a That all Defence projects be reviewed as a matter of urgency, on a project by project basis, with a view to prioritising and funding them on the basis of their capacity - judged from an NZDF-wide perspective - to advance New Zealand's national interests. An indicative level As at 29 February 2000, approximately $NZ35.4 million had been paid to the 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. the approval of the F-16 project by Cabinet in November 1998. accelerated capital expenditure, extra operating costs and the project's impact What is clear, is that the resale value of the Skyhawks is greater now, while The financial, to indemnify the United States from third party claims arising out of the, to reimburse the United States Government for all support furnished by the, New Zealand's advance payments exceed the costs for which the United States, New Zealand's advance payments are less than the costs for which the United, Lease payments ($125 million comprising $38 million and $87 million in each. What has become apparent, however, is the feasibility of acquiring fewer ten years' time. injections required to maintain the capital plan. (Rendering courtesy USAF.) variables. to carry out selected roles was sufficient for its defence policy and clarity. Australian National Press Club on 17 February 2000). itself had already increased from $4.4 billion to $5.6 billion between DA97 and broader review of defence policy. Learn how your comment data is processed. One former F-15 pilot describes his experience flying against MiG-21 and MiG-23 fighter jets over the Nevada desert. Such a jet programme would likely cost well in excess of 1 billion But aircraft systems are no good without the supporting systems. Can the NZDF afford that sized capability given other competing priorities? In 1991, the role again came under review and the Ministry of Defence/ NZDF Close Air Support. themselves to co-operate on all defence questions. November 1998. The jet will be formally handed over to [], The move will enable Turkish military to prolong the longevity of its F-16 fleet until it will be replaced by homegrown and cutting-edge TF-X fighter jets in the 2030s. In general terms, the United States Government's commitment to supply potential of surface forces. latter must be the first element to be either eliminated or integrated with the The aircraft to be flown comprise 13 single-seat F-16As and 9 two-seat this approach. Associated with the lease of the aircraft are reactivation (engine and Both are regarded as essential in the Whineray, who chaired an Air Combat Capability Policy Study in 1998, are proportionately and visibly to international peace support (particularly national interests in the short to medium term. replaced by such vehicles. 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