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Government continues to back NZ armed forces

21 May 2015

Government continues to back NZ armed forces

New operating funding of $264 million over four years for the New Zealand Defence Force continues the Government’s commitment to deliver long-term funding certainty to our armed forces.

“Budget 2015 confirms that investment in the New Zealand Defence Force remains a priority,” Defence Minister Gerry Brownlee says.

The Defence Mid-Point Rebalancing Review (DMRR) in 2013 considered and valued defence priorities and costed all elements of defence capability out to 2029/30.

The Government then backed an indicative funding track to ensure investment matched expectations of both the Government and the public.

Budget 2015 includes $46.5 million in new operating funding as well as $106 million in capital from NZDF’s balance sheet for new equipment. This investment is aimed at enhancing soldiers’ safety on the battlefield.

“This funding allows the Defence Force to concurrently undertake domestic, regional and international security tasks, giving it greater flexibility in the response options it can provide to the Government as we react to changes in the security environment,” Mr Brownlee says.

Budget 2015 also includes $192 million of operational funding, recommended in the recent DMRR, and $25.4 million toward the cost of the two-year Building Partner Capacity mission to train the Iraqi Defence Force.

In addition, new contingency funding of $56.3 million over the next four years is provided for new military procurement projects, contingent on Cabinet approval.

Meanwhile, Budget 2015 confirms the Ministry of Defence will receive new operating funding of $27.1 million over four years.

“To deliver on the outcomes of the Defence Mid-Point Rebalancing Review, the Government has signalled an intention to replace billions of dollars’ worth of equipment over the next 15 years.

“Work since the Review has confirmed that a number of changes to capability procurement are needed to stay on top of a large programme plan that includes increasingly sophisticated capabilities and equipment.

“The extra funding will ensure New Zealand buys equipment that is fit for its needs, and acquires it on time, to budget, and to the specifications the Government has agreed,” Mr Brownlee says.

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