EMBARGO - UNTIL 11am, 6 JULY

Hon Ron Mark

Minister of Defence

6 July 2018 MEDIA STATEMENT

Minister of Defence Ron Mark has today announced the release of the Review of Defence Procurement Policies and Practices for Major Capability Projects.

The report, prepared by Sir Brian Roche as the independent reviewer, has found that Defence has a robust procurement system, and has made strong inroads with embedding a new way of working.

“In early 2018, Cabinet agreed to review Defence procurement,” says Ron Mark.

“In opposition I was a huge critic of Defence procurement. A view that was reinforced when my first act as Minister was dealing with a $148 million cost overrun on the Frigate Systems Upgrade.

“It was important to me that before we reviewed the Defence Capability Plan, or made any large purchases, we first looked at whether or not the Defence procurement process was fit for purpose.

“While I am very pleased with the findings of the report, we need to keep driving continuous improvement to the system. In reaching his conclusions, Sir Brian Roche noted the changes are still relatively new, and strong ongoing leadership is required to embed and sustain them.

“It is important to note that no project has gone from concept to delivery under the new system. The Coalition Government will be keeping a close eye on Defence procurement performance to ensure that high standards are met and maintained,” says Ron Mark.

A copy of the Defence Procurement Policies & Practices for Major Capability Projects review can be found at the Ministry of Defence website.

*Note link will be live from 11am 6 July. https://defence.govt.nz/publications/publication/review-of-defence-procurement-policies-and-practices-for-major-capability-projects

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