Defence review delayed, govt eyes costs

Published: 6:21PM Sunday March 07, 2010 Source: ONE News

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The biggest review of the Defence Force in more than a decade has been delayed while the military is asked to cut back office spending to pay for front-line services.

Defence Minister Wayne Mapp revealed the move to political editor Guyon Espiner on Q+A on Sunday morning.

The review into NZ security risks and equipment needed by the Defence Force, was to be released at the end of this month but will be delayed for six months while savings are sought.  

"We are doing a value for money exercise - a deep look into the defence system to see if we can get resources essentially from the back office to the front," says Mapp.

Over the next three years, nearly $2 billion worth of equipment comes on stream, including the new NH90 helicopters. Acquisitions such as these push up operating costs and the government is seeking savings of up to $70 million a year.

"We have three services, they each have their own HR system, they each have completely separate training systems...we think there are opportunities to join some of that up, reduce the costs and shift that money to the front," says Mapp.

The minister also wants more private sector involvement.

"The government itself directly has built $150 million worth of hangers for the new helicopters. You would think things like that could actually be done by a public private partnership more effectively."

National insists this is not a cost cutting exercise and that any savings will be ploughed into the front line. But finding the savings will be a challenge for the Defence Force because the $50-$70 million worth of cuts which is required represents about 5% of the available defence budget.

"The real danger is cutting defence will mean cutting the services to those people who are serving their country overseas - putting their lives at risk," says Labour leader Phil Goff.

But National is asking all government departments to cut costs and it seems defence is no exception.

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