New Zealand MOD abandons savings plan

[exkiwiforces]

Found this wee jem of article via the Janes Defence Website at work this morning. Holy cow the MOD have abandon its saving plan well I've could've told MOD it wasn't going to work along with everyone here as there wasn't anymore fat to cut.

Publication:Jane's Defence Weekly

A plan introduced by New Zealand's Ministry of Defence (MoD) in 2010 to save about NZD400 million (USD330 million) a year in a bid to improve the operational effectiveness of the New Zealand Defence Force (NZDF) has been abandoned, a government committee has revealed.
An annual financial review of the MoD undertaken by New Zealand's Foreign Affairs, Defence and Trade Committee, which was published on 12 December, said that while the MoD has ceased its implementation of the savings plan, its focus on improving efficiencies within the NZDF has remained in place.
As part of this emphasis, the financial review also highlighted New Zealand's recently introduced procurement strategy to favour 'commercial off-the-shelf' purchases against those that are regarded as 'modified off the shelf'.
Savings
New Zealand's savings plan was introduced in the country's 2010 defence White Paper partly in response to growing fiscal challenges in the country. It committed the MoD to "free up", through the implementation of "value for money initiatives", between NZD350-400 million a year for "frontline capabilities" such as operations, training and procurement.
In its report, the Foreign Affairs, Defence and Trade Committee said that the MoD's savings plan had now "been abandoned, but the goal of making the savings had not".
It added: "[The MoD] is now reviewing the plans for the remaining savings, and is negotiating with the government to balance potential operational consequences. The [NZDF] considers it must constantly look for reforms in the interests of efficiency, to maximise funding for front-line operations, effectiveness, and training."
The committee did not state why the savings plan had been abandoned but it said that the NZDF believes that it can make more savings using new strategies, and that "more investment is needed to achieve the kind of changes that would release savings in future".
Procurement
New Zealand's emphasis on improving procurement efficiencies was introduced in recent years following a series of delayed procurements, most notably the 2005 purchase of eight NHIndustries' NH90 medium utility helicopters, deliveries of which commenced in December 2011.
In its report, the Foreign Affairs, Defence and Trade Committee said final delivery of the last NH90 helicopters had been delayed by two years and that the NZDF will receive NZD1.8 million from the manufacturer as compensation. NHIndustries will also offer by way of compensation "extended technical assistance and the guaranteed availability of a helicopter", said the report.
The report added that in an effort to avoid procurement delays in the future the NZDF is now "making a policy of working with its key defence partners when procuring equipment… The ministry no longer orders customised equipment, to minimise costs and avoid delays in delivery".
By way of example, the report pointed to the MoD's programme to procure 200 military trucks of varying sizes and configurations, which culminated in May 2013 with a contract awarded to Rheinmetall MAN Military Vehicles Australia. The trucks were "bought from the same production run as a British military order", said the committee's report. "The new trucks were acquired within 18 months of starting the procurement process, which is an improvement on previous orders."

Copyright © IHS Global Limited, 2013

[phil]

It will be interesting to see how the new procurement process pans out for some of the current projects, notably the individual weapon replacement.

[Dave Homewood]

Does anyone here have any confidence left that the Minister of Defence and his department have any clues about what they are supposed to be there for, or any idea of how much damage their previous policies have done to the morale and credibility of the NZDF?

I cannot help but feel that over successive years under people like Burton, Goff and now this drip of a minister, Coleman, the department must have no idea what a Defence Force is actually for and their purpose for being, and no clues of what direction it should actually be taken in. They just seem to have one policy, save money and hope for the best. Someone needs to tell them our Defence Force is there to preserve our freedom, and as is well known, freedom is not free.

[harvard1041]

No confidence at all - bunch of amateurs 'playing' ... but then I'm of the 'A-4s Forever' brigade

cheers
hvd1041

[suthg]

I think the tide is turning, what with the much improved relations with the US - going to Hawaii, inviting them to our recent huge Exercise Southern Katipo 2013 with 2200 personnel and 10 nations taking part with the HMNZS Canterbury taking a big role and all forms of the NZ Defence Force in there for training. There has been no cutbacks in the recent purchases including the NH-90's and Seasprites - still to happen, now the vehicle replacement program is underway and the small arms replacement program as well. There are decisions yet to be made on the replacement of some of our vessels and when, but it has to happen. I am pretty sure that general relationships with our neighbours and the need to cooperate in peace keeping exercises in our region, for humanitarian aid, Search and Rescue, support for Antarctica etc, etc. If anything, NZ is about to improve its Defence Force and have more need to share with other Pacific region Defence Forces - this has to be seen as an improvement which can only come from Government and hence the Minister of Defence. Coming from an outsider who has never been in the Territorials or any form of the forces.

[skyhawkdon]

...and just when you thought it was safe to go back into the water... there was an election... just saying, having experienced the 1999 change of Gov't where we went from getting F-16s to losing everything in just a couple of years. The politicians have a lot to answer for!

[phil82]

Dec 17, 2013 21:56:10 GMT 12 Dave Homewood said:

Does anyone here have any confidence left that the Minister of Defence and his department have any clues about what they are supposed to be there for, or any idea of how much damage their previous policies have done to the morale and credibility of the NZDF?

I cannot help but feel that over successive years under people like Burton, Goff and now this drip of a minister, Coleman, the department must have no idea what a Defence Force is actually for and their purpose for being, and no clues of what direction it should actually be taken in. They just seem to have one policy, save money and hope for the best. Someone needs to tell them our Defence Force is there to preserve our freedom, and as is well known, freedom is not free.

I bumped into an old air force mate in Lambton Quay the other day, and he attends meetings wher Coleman is present. He's very much "hail fellow well met" until a tV camera appears, then his whole persona changes. A show pony in my view.

[exkiwiforces]

Dec 18, 2013 20:33:14 GMT 12 skyhawkdon said:

...and just when you thought it was safe to go back into the water... there was an election... just saying, having experienced the 1999 change of Gov't where we went from getting F-16s to losing everything in just a couple of years. The politicians have a lot to answer for!

I almost headed back to NZDF(RNZAF Force Protection) in 2006- 2007, but I talked out of it and there is no way I'll head back now.

"The report added that in an effort to avoid procurement delays in the future the NZDF is now "making a policy of working with its key defence partners when procuring equipment… The ministry no longer orders customised equipment, to minimise costs and avoid delays in delivery".
By way of example, the report pointed to the MoD's programme to procure 200 military trucks of varying sizes and configurations, which culminated in May 2013 with a contract awarded to Rheinmetall MAN Military Vehicles Australia. The trucks were "bought from the same production run as a British military order", said the committee's report. "The new trucks were acquired within 18 months of starting the procurement process, which is an improvement on previous orders."

Wish this policy was around in 99 as we might have been seeing 8 C-130J's flying around the country instead of 5 elderly C-130's. I had seen a paper on cost savings between the RNZAF C130’s and the 8 J models if the National or Labour had taken up the option to jump on the back of RAAF J model order.
Janes Defence did a paper with nice looking graphs on P3 and P8. Their conclusion was the P3 won by a neck and the only time the P8 was a head of the P3 was speed. Their footnote said If the Nimrod was to added it would Nimrod, P3 and coming last the P8.
Janes Defence looked at Speed, Time on station, Range, Weight, Weapons Stores and there something else which I can’t remember.

Anyway back to tropic, from what I heard from someone in NZDF the main driver for these so call cost savings was the Dipton farmer and his mates at the treasury. I also understand the 4 Chiefs said this aren’t going to work Sir, but suits knew better as we know money unlike you (NZDF) lot and do as you are told. End result NZDF 1, Pollies/ treasury 0.

[thelensofhistory]

Dec 17, 2013 21:56:10 GMT 12 Dave Homewood said:

Does anyone here have any confidence left that the Minister of Defence and his department have any clues about what they are supposed to be there for, or any idea of how much damage their previous policies have done to the morale and credibility of the NZDF?

I cannot help but feel that over successive years under people like Burton, Goff and now this drip of a minister, Coleman, the department must have no idea what a Defence Force is actually for and their purpose for being, and no clues of what direction it should actually be taken in. They just seem to have one policy, save money and hope for the best. Someone needs to tell them our Defence Force is there to preserve our freedom, and as is well known, freedom is not free.

I feel the same way and you can throw Brownlee into the same mix as well. I don't post the full extend of my feelings on the shabby treatment the NZDF has gotten over the last 20 years or so because I don't wish to offend those who have served in uniform.