News: Kiwi budget smoke and mirrors | ADM July 2012

It may appear prosaic at first sight, only New Zealand’s Defence Force (NZDF) budget for 2012/13 is especially subtle this year; arguably even a little deceptive.

Released on 24 May, it represents a modest overall reduction from NZ$2.91 billion to NZ$2.90 billion (A$2.26 to A$ 2.25 billion).

Characteristically, the NZ Army retains the largest slice, gaining a slight increase of just over one per cent for the year ahead with NZ$845 million (A$657 million). Due in part to the arrival of the new A109 and NH90 helicopters, the Royal New Zealand Air Force (RNZAF) enjoys a noticeable surge in funds with a rise from NZ$670 million (A$521 million) to NZ$790 million (A$614 million), whereas the apparently hapless Royal New Zealand Navy (RNZN) has to manage a relatively sharp decline from NZ$693 million (A$539 million) to NZ$662 million (A$515 million).

Yet although the overall defence budget has diminished slightly, for most NZDF capabilities there is, apparently, more money in the form of appropriations, rather than less.

Only a few capabilities have had their funds cut, including the budget for land combat forces, reduced by NZ$3 million (A$2.3 million) to NZ$362 million (A$281 million).

The appropriation for the Secret Intelligence Service has been significantly diminished too, by NZ$4 million (A$3.1 million) to NZ$37 million (A$29 million).

Among the capabilities appearing to gain funding is the so-called Airborne Surveillance and Response Force of six P-3K Orions - currently being upgraded to P-3K2 standard. Previously allocated only NZ$165 million (A$128 million), they now have NZ$178 million (A$138 million).

Curiously, given the RNZN is the only service to have its budget cut, almost all its capabilities appear to be better funded. For example, the budget for the RNZN’s patrol force - consisting of two Offshore Patrol Vessels (OPVs) and four Inshore Patrol Vessels (IPVs) - shows an increase from NZ$129 million (A$100 million) to ‘almost’ NZ$137 million (A$106 million). Yet looking at the fine print, there is predicted to be less.

Last year the IPV fleet fell some 200 days short of mission availability days, managing only 847 of the targeted 1,038 and for the fiscal year ahead the mission available target has been greatly reduced to 749 days. Which, in practical terms, indicates that half the number of IPVs will be unavailable for tasking, or days at sea, for some months in the year ahead.

A similar pattern applies to the two Anzac frigates – alias the Navy’s Combat Force. Funding for the two warships is increased, by around NZ$4 million (A$3.1 million), although mission availability diminishes by more than 40 days.

The Navy’s flagship, the amphibious Canterbury is no different, with mission availability reduced by 18 per cent to 196 days. Fleet tanker Endeavour’s availability also is diminished, by a third.

It is worth noting that several ‘output expenses’ have been renamed so as to include capabilities previously listed under other descriptions. A useful means, one may think, of obscuring realities.