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The National Party is accusing the army of sinister moves to push through the purchase of new armoured vehicles, claiming it colluded with Labour before the last election to deliberately undermine the other armed forces.
National Leader Jenny Shipley has accused both Labour and the army of sedition, the most serious charge possible against soldiers sworn to serve the Crown.
The evidence includes a four-year-old letter between senior army staffers preparing a campaign to outflank the Royal New Zealand Air Force and Navy to seize control of the defence budget.
The letter was writen by Colonel Ian Gordon and calls for a war council to build closer tribal links with Maori and to influence Maori MPs.
Labour accused of being in on plan
In parliament on Tuesday, National turned their attention on Labour, alleging it was in on the army's plan.
The leaked plan also suggested lobbying members of a defence inquiry underway at the time.
The chairman of the inquiry, former National MP Derek Quigley, was not surprised at the intention expressed in the letter.
"I see the letter as a letter of frustration from the army that they saw the other two services getting more of the pie than they had received," said Quigley.
The army however denies any campaign against the navy and air force, but the opposition says the letter and what has happened since with the purchase of new army equipment, are too coincidental.
National is continuing to demand a public inquiry and said it knows people who will testify on oath that the army campaign is no myth.
