NEW ZEALAND DEFENCE FORCE (NZDF)

Transcription

1 G55 SOI (2007) STATEMENT OF INTENT of the NEW ZEALAND DEFENCE FORCE (NZDF) Te Ope Kaatua o Aotearoa for the period 1 July 2007 to 30 June 2010 Presented to the House of Representatives Pursuant to Section 39(1) of the Public Finance Act 1989 (as amended by the Public Finance Amendment Act 2004) ISSN

2 Cover Pictures (from left to right): (1) View of the stern of HMNZS CANTERBURY alongside Tenix, Williamtown, Australia undergoing fit out. (Vessel is expected to be delivered in May 2007). (2) Heckler & Koch 40mm Automatic Grenade Launcher mounted on a New Zealand Pinzgauer Special Operations Vehicle (SOV). (3) Iroquois helicopters during Exercise Steel Talon in The Iroquois helicopter, first introduced to the NZDF in 1966, is due to be replaced by the NH-90 medium utility helicopter commencing in 2010/11. Headquarters New Zealand Defence Force 2 12 Aitken Street Private Bag Wellington Phone: (04) Facsimile: (04) New Zealand Defence Force Website: NZDF 2007 Statement of Intent

3 TABLE OF CONTENTS Subject Page Abbreviations and Acronyms Used Preface by the Minister of Defence Introduction by the Chief of Defence Force Part A - The Strategic Framework Section 1: The Strategic Context Overview of Linkages (diagram) The Strategic Environment The Defence Act 1990 Government Priorities / Themes New Zealand s Defence Policy Defence Outcomes Primary Mission of the NZDF NZDF Vision Defence Intermediate Outcomes NZDF Strategic Plan NZDF Strategy Map NZDF Strategic Objectives Strategic Initiatives Measurement of the NZDF s Performance Cost Effectiveness of Interventions Linking Outcomes to Outputs Intermediate Outcomes - Intervention Logic Link Diagrams Capability: Shaping and Rebuilding the NZDF Defence Sustainability Initiative (DSI) Army Configuration Review (ACR) / Army Transformation Programme (ATP) Inter-Department/Agency Collaboration Risk Management in the NZDF Section 2: The Planning Context Overview Capability Management Framework Employment Contexts Military Capability Preparedness Level of Capability (OLOC and DLOC) Providing Government with Choice in NZDF Outputs Section 3: The Delivery of NZDF Outputs Generic Service Performance Objectives of NZDF Outputs Impact of Operational Deployments, Upgrades and Introduction of New Equipments into Service on Output Expenses/Outputs: Concurrency Services in Support of the Government and the Community Standard Performance Measurement Table for Operational Force Outputs NZDF Output Specification Tables Brief Histories of Current Operational Missions Services in Support of the Government and the Community (including Multi-Agency Operations and Tasks) NZDF 2007 Statement of Intent

4 Subject Page Part B - Forecast Financial Statements Responsible Ministers, and Statement of Responsibility Statement of Accounting Policies Transition to International Financial Reporting Standards (IFRS) Financial Highlights Capital Charge Rate A Financial Overview for 2007/08 Explanation of Output Cost Variances Between 2006/2007and 2007/2008 Statement of Forecast Financial Performance Statement of Estimated Financial Position Statement of Forecast Cash Flows Reconciliation of Net Surplus to Net Cash Flow from Operating Activities Forecast Statement of Movement in Taxpayers Funds Forecast Detail of Property, Plant and Equipment (PPE) Statement of Objectives Specifying the Financial Performance Forecast for each Output Expense Statement of Departmental Capital Expenditure to be incurred Part C - Additional Information Organisation of the NZDF NZDF Personnel Statistics Audit and Assessment NZDF Operational Preparedness Reporting & Evaluation System Performance Indicators for NZDF Outputs Part D - Veterans Affairs New Zealand (Vote Veterans Affairs - Defence) Statement by the Minister of Veterans Affairs Vision Core Values Mission The Planning Environment The Veteran Community Expectations and Direction Roles and Responsibility Service Delivery Structure Outcomes Specific Initiatives for 2007/08 Accountabilities Risk Management Internal Capabilities Output Specifications Departmental Outputs Non-Departmental Outputs NZDF 2007 Statement of Intent 4

5 ABBREVIATIONS USED New Zealand Defence Force ABCA ACF ACR ADF AE ASIC ATP AUSCANNZUKUS CA CAF CBRE IEDD/EOD CDF CCEB CMF CMIS CN COMJFNZ CONPLAN/s CT DCARR DFP DOC DPF DSI DTA EAS EC/s EEZ EOD FADTC FPDA HMNZS HQ JFNZ IEDD IFRS IPC IPV/s KMA/s KPI LFG LINZ LOC: BLOC DLOC OLOC NLOC LOV LSV LTDP MAO&T MAP MCM MET/s American, British, Canadian, Australian Armies Standardisation Programme Air Combat Forces Army Configuration Review Australian Defence Force Aeromedical Evacuation Air Standardisation Interoperability Council Army Transformation Programme Australia, Canada, New Zealand, United Kingdom, United States agreement Naval Command, Control and Communication Board Chief of Army Chief of Air Force Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal / Explosive Ordinance Disposal Chief of Defence Force Combined Communications Electronics Board Capability Management Framework Corporate Management Information System Chief of Navy Commander Joint Forces New Zealand Contingency Plan/s Counter-Terrorist/ism Defence Capability and Resourcing Review Defence Funding Package Department of Conservation Defence Planning Framework Defence Sustainability Initiative Defence Technology Agency Exercise and Activity Schedule Employment Context/s Exclusive Economic Zone Explosive Ordnance Disposal Foreign Affairs, Defence and Trade Committee Five Power Defence Arrangements Her Majesty s New Zealand Ship Headquarters Joint Forces New Zealand Improvised Explosive Device Disposal International Financial Reporting Standards Inshore Patrol Craft Inshore Patrol Vessel/s Key Measurement Area/s Key Performance Indicator/s Land Force Group Land Information New Zealand Level of Capability: Basic Level of Capability Directed Level of Capability Operational Level of Capability No Level of Capability Light Operational Vehicle Limited Service Volunteer Long Term Development Plan Multi-Agency Operations and Tasks Mutual Assistance Programme Mine Counter Measures Mission Essential Task/s 5 NZDF 2007 Statement of Intent

6 METL/s MFAT MMW MoD MRV MSD NSA NRCC NZCF NZDF NZ LAV ODA OPV/s OPRES PASOLS PPE RF RNZAF RNZN RNZNVR SAS SME TF TTCP UN VANZ VLLAD Mission Essential Task List/s Ministry of Foreign Affairs and Trade Maritime Mine Warfare Ministry of Defence Multi-Role Vessel Ministry of Social Development NATO Standardisation Agency National Rescue Coordination Centre New Zealand Cadet Forces New Zealand Defence Force NZ Light Armoured Vehicle Overseas Development Aid Offshore Patrol Vessel/s Operational Preparedness Reporting System Pacific Area Senior Officers Logistic Seminar Property Plant and Equipment Regular Force Royal New Zealand Air Force Royal New Zealand Navy Royal New Zealand Naval Volunteer Reserve Special Air Service Specialist Military Equipment Territorial Force The Technical Cooperation Programme United Nations Veterans Affairs New Zealand Very Low Level Air Defence [Captain Georgina Parata-Turvey, Nursing Officer, lends a helping hand during Tsunami Relief operations] NZDF 2007 Statement of Intent 6

7 PREFACE BY THE MINISTER OF DEFENCE I am pleased to present this Statement of Intent of the New Zealand Defence Force (NZDF). The Government s Defence Policy Framework of June 2000, the Government Defence Policy Statement of 8 May 2001 and the Defence Sustainability Initiative of May 2005, supported by the most recent update (October 2006) of the Defence Long-Term Development Plan (LTDP), remain the cornerstones of New Zealand s defence policy. That policy will continue to be the driving force in building a modern, professional and well-equipped Defence Force, and will continue to be the focus of much hard work within the Ministry of Defence and HQ NZDF for several years. The Government has set clear goals, priorities and funding commitments for the Defence Force. As Minister of Defence I have a responsibility, on behalf of the Government and people of New Zealand, to ensure that the investments we are making in Defence will produce the agreed outputs which the Government can call on to deploy in support of New Zealand s foreign and security policy aims; whether it be in a peace support, counter-terrorism or combat role. The contribution of individuals and force elements of the NZDF to various missions around the world continues to be the prime operational focus of the Defence Force. With major deployments to Afghanistan, the Solomon Islands and Timor Leste, as well as maintaining many smaller missions around the world, 2006/07 was a very busy year. There appears to be no let-up in our operational commitments for 2007/08. As I have stated on many occasions, our servicemen and women on these operational deployments acquit themselves well and bring credit to New Zealand. At the same time the NZDF, in collaboration with the Ministry of Defence, continues to progress the projects initiated under the Defence Sustainability Initiative (DSI), launched in May 2005, and to improve operational capabilities under the Defence Long-Term Development Plan (LTDP). The foundations phase of the ten-year DSI moves into the construction or growth phase at the end of 2007/08. During the growth phase (2008 to 2010) it is expected that personnel numbers across the NZDF will continue to grow through improved recruiting and retention, the backlog of deferred maintenance will be significantly reduced, the future structure of the Army will be in the initial stages of implementation, the corporate capabilities of HQ NZDF will be well established, operational capabilities will have been enhanced, and the restoration of contingency reserve stocks will be substantially completed. These are ambitious targets but, given a continuation of DSI annual funding increments, careful management of resources and the continued application of efficiency and effectiveness by the NZDF in its day to day activities, they are achievable. During the three-year period 2007/08 to 2010/11 major milestones in the current LTDP will have been achieved. By March 2008 the two Boeing strategic transport aircraft will have been modified to provide for a cargo-carrying capability and have upgraded avionics. All seven vessels under Project Protector (the MRV - HMNZS CANTERBURY, the two OPVs - HMNZS Ships OTAGO and WELLINGTON, and the four IPVs - HMNZS Ships ROTOITI, HAWEA, PUKAKI and TAUPO) will have entered service by mid By October 2010 all five C-130 Hercules aircraft (on life-extension 7 NZDF 2007 Statement of Intent

8 upgrade) and all six P-3K2 Orion aircraft (mission systems, communications and navigation systems upgrades) will have re-entered service. As announced last year, the period will see the introduction into service of the replacement helicopters, both the medium utility (NH-90) and light utility helicopters to replace, respectively, the Iroquois and Sioux. During the period up to 2010/11 the project to consolidate the Air Force at Ohakea will have moved forward significantly. It is expected that, subject to continued LTDP funding, the priority for the 2007/08 and 2008/09 period will be on the construction of facilities for No 3 Squadron (new utility helicopters) and No 6 Squadron (Seasprite helicopters), including operations, training and support facilities, hangarage and maintenance facilities, hard-standing and services. From February 2007 the staffs of HQ NZDF have enjoyed their new purpose-built accommodation in Aitken Street, Wellington (the new Defence House). All this continues to move us toward our stated goal of a modernised, well-equipped and sustainable Defence Force. The NZDF will continue to face many management challenges. While many of these have been and are being addressed under the DSI, others will require more time and effort. The reorganised Defence Headquarters, including a Planning Branch and Organisational Support Branch, revised governance arrangements - including closer working relations between the NZDF and MoD - the production of a robust strategic planning framework, NZDF Strategic Plan, Strategic Human Resource Planning Framework, programme management and performance management systems were all significant starts in the period. The high priority I have placed on building robust processes for the allocation of resources within the NZDF has seen an encouraging start. This will continue to be an area that requires close attention in the years to come. Commensurate with this is the requirement to strike an appropriate skills balance between civilian and military staff in senior management positions. Under the Whole of Government approach, the NZDF will continue to work closely with other security-related departments and agencies. The NZDF s working relationships with, for example, the NZ Customs Service, NZ Police and Ministry of Fisheries, under Multi- Agency Operations and Tasks, will take on increased importance as the new vessels for the Navy are introduced into service from this financial year. The arrangements for the allocation of naval vessels to support these agencies, and the associated control and coordination, must be robust, visible, effective and efficient. This Statement of Intent expands on the above matters and continues to signal the Government s long-term commitment to a comprehensive approach to security. I have every confidence that the NZDF will continue to contribute significantly to defence outcomes for the benefit of all New Zealanders. In accordance with Section 39(2)(b) of the Public Finance Act 1989 I certify that this Statement of Intent is consistent with the policies and performance expectations of the Government. Hon Phil Goff Minister of Defence 18 April 2007 NZDF 2007 Statement of Intent 8

9 INTRODUCTION BY THE CHIEF OF DEFENCE FORCE My first year as Chief of Defence Force has been a watershed on several fronts. During 2006/07 the projects under the Defence Sustainability Initiative (DSI) devolved to business as usual. This included the launch of the first full NZDF Strategic Plan in early 2007, and significant progress with the DSI and Defence Long-Term Development Plan (LTDP). The Defence Force is modernising its military capabilities and building organisational capacity. This year, the Navy will start taking delivery of the Project Protector vessels the first being the Multi-Role Vessel (MRV), HMNZS CANTERBURY. The RNZAF has sent the first aircraft (Boeing , P-3K Orion and C-130 Hercules) overseas for modification and upgrade, and the Government has approved the purchase of the NH-90 medium utility helicopter and called for tenders for a light utility training helicopter. We continue to maintain a busy schedule of operational commitments both overseas, as shown under our Output Operationally Deployed Forces, and in support of other Government Departments and agencies at home. We expect to maintain this level of contribution, but must continue to be aware that other, more substantial commitments may be required, sometimes at short notice, by the Government. Accordingly, we must be sufficiently agile to be ready for such contingencies. As has been observed by political and senior defence leaders, our people serving on missions overseas, often in demanding and inhospitable environments, continue to bring credit to themselves, their respective Services and to New Zealand. Hand in hand with our operational commitments and activities (and in a sense quite often as equally demanding) are the organisational changes and rationalisation of governance arrangements that have taken place over the last year, and that are being embedded as business as usual. Adjustments will be made to fine tune recent changes to improve the management, efficiency and effectiveness of our business support systems and processes. The move into the new Defence House will provide us with further opportunity for continuous review and improvement of our administrative, support and governance systems, possibly leading to changes in the way we do business in the future. The launch of the NZDF Strategic Plan in March 2007 followed a great deal of hard work within Defence Headquarters and the Services. The Strategic Plan refers to our Vision and Mission statements and the foundations that underpin our organisation. It is a robust plan that aligns the work and activities of the Defence Force towards our aspiration of Three Services as One Force, being the best in everything we do. The plan links and melds the uniqueness of our role with the Government s Priority Theme of National Identity and cascades, through our three strategic themes, strategic objectives and initiatives, to the business end of delivering the outputs required by the Government, so that we can secure and protect New Zealand now and in the future. The three Strategic Themes of The Agile Force (being operationally effective), Resource Efficiency (being resource canny), and Valued Partner (being the best we can be in the things we do) permeate everything we do. Relevant extracts and linkages from our Strategic Plan have been included within this Statement of Intent. 9 NZDF 2007 Statement of Intent

10 Concurrent with the development of the Strategic Plan was the development of the Defence Performance Management System (DPMS). Gaps in how we measured our performance and overall health required that an enhanced performance measurement system be established. I have high expectations that the DPMS will enable the Executive Leadership Team (ELT) to draw together all the necessary relevant information to ensure we make sound fact-based decisions. The DPMS includes the current tried and proven Operational Preparedness and Reporting System (OPRES). The DPMS now also includes a Balanced Score Card (BSC) to monitor the execution of the Strategic Plan and intent. At the lower levels of the system, the BSC approach links financial and nonfinancial data and information to inform the various levels of command and management. The NZDF Strategic Initiatives for 2007/08 and beyond are a result of the current work on our Strategic Plan. These initiatives are consistent with the ongoing work under the DSI and the LTDP. They continue to set the direction of the NZDF. The NZDF Output Expenses continue to be adjusted to take account of the new and enhanced capabilities coming on line during the 2007/2008 period. Defence is a serious business. There is no greater or more solemn responsibility in this nation than that relating to the application of military force. The NZDF will continue to play an important part in maintaining New Zealand s place as a good international citizen through its support of the United Nations and the rule of international law. I intend doing all in my authority to ensure that the personnel within the NZDF, military and civilian, are as well prepared and led for their tasks, whether in New Zealand or overseas, as allocated resources will allow. The NZDF must be many things and is required to meet a wide range of challenges. It must be combat-capable, joint in effect, rapidly deployable, highly adaptable, open to change and totally professional. It must be able to meet military and non-military challenges in New Zealand, in the Pacific, and across the globe where this is in New Zealand s best interests. My primary concern has been on the ability of the NZDF to deploy effective forces on operations as required by the Government, and, in collaboration with the Ministry of Defence, to advance the many projects under the DSI and LTDP. These, combined with the Minister s imperatives of organisational efficiency and robust processes for the allocation of resources within the NZDF, will continue to be my focus for the period of this Statement of Intent. This Statement of Intent builds on those produced since The Defence Outcomes and the NZDF Mission Statement have not changed. Overall, the Defence Outcomes and NZDF Outputs, continue to reflect the Government s defence policy and future intentions. I have every confidence that, given the dedication of the people who make up the NZDF, we will continue to move closer to our vision of being Three Services as One Force, being the best in everything we do. J Mateparae Lieutenant General Chief of Defence Force New Zealand Defence Force 18 April 2007 NZDF 2007 Statement of Intent 10

11 PART A Section 1: The Strategic Context Overview of Linkages (Diagram) The Strategic Environment The Defence Act 1990 Government Priorities / Themes New Zealand s Defence Policy Defence Outcomes Primary Mission of the NZDF Defence Intermediate Outcomes NZDF Key Priorities New Zealand Defence Force Evaluation and Measurement of Outcomes (The Indicators) Linking Outcomes to Outputs Intermediate Outcomes - Intervention Logic Link Diagram Capability: Shaping and Rebuilding the NZDF Defence Sustainability Initiative (DSI) Army Configuration Review / Transformation Programme Inter-Department/Agency Collaboration Risk Management Section 2: The Planning Context Capability Management Framework Employment Contexts Military Capability Preparedness Level of Capability (OLOC and DLOC) Providing Government with Choice in NZDF Outputs Section 3: The Delivery of NZDF Outputs Generic Service Performance Objectives of NZDF Outputs Concurrency Issues Standard Performance Measurement Table for Operational Force Outputs NZDF Output Specification Tables Brief Histories of Current Operational Missions Services in Support of the Government and the Community [including Multi-Agency Operations and Tasks (MAO&T)] 11 NZDF 2007 Statement of Intent

12 SECTION 1: THE STRATEGIC CONTEXT This section provides essential information at the strategic level of defence. It shows, in particular, how the NZDF contributes to Defence Outcomes and how those outcomes are linked via Strategic Goals, Strategic Objectives and Strategic Initiatives, within three key Strategic Themes, to the day-to-day delivery of military capabilities resident in the NZDF Outputs. The diagram on the next page is a diagrammatic representation of the linkages involved and as covered in this Statement of Intent. [HMNZS OTAGO, the first Offshore Patrol Vessel, slips quietly into the water alongside Tenix, Williamtown, Australia, at her launching] NZDF 2007 Statement of Intent 12

13 Overview of Linkages Government Direction Defence Act 1990 Government Priority Themes: National Identity Defence Policy Government s Defence Policy Framework (June 2000) A Modern Sustainable Defence Force Matched to New Zealand s Needs (May 2001) NZDF Long Term Development Plan (updated annually) Defence Sustainability Initiative (2005) Main Outcome New Zealand Secure and Protected from External Threats now and in the future Defence Intermediate Outcomes Secure New Zealand, including its people, land, territorial waters, exclusive economic zone, natural resources & critical infrastructure. Reduced risks to New Zealand from regional and global insecurity. New Zealand values & interests advanced through participation in regional & international security systems. New Zealand is able to meet future national security challenges NZDF Output Delivery Mission To secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone, and to be able to take action to meet likely contingencies in our strategic area of interest. NZDF Strategy Employment Contexts and Security Events Vision Three Services as One Force, being the best in everything we do NZDF Outputs Defence Capability Management Framework (CMF) (Capability Gap Analysis) Strategic Themes The Agile Force - Operationally Effective Resource Efficiency Valued Partner - Organisational Capability Strategic Objectives Strategic Initiatives 13 NZDF 2007 Statement of Intent

14 THE STRATEGIC ENVIRONMENT Defence and foreign policy are a partnership working in a comprehensive way to secure our territorial, economic, social and cultural interests, and to meet our collective and global responsibilities. New Zealand is committed to the principles and obligations of the United Nations Charter and, despite the comparatively small size of the NZDF, has consistently demonstrated over many years its willingness to use NZDF capabilities to defend those principles. In particular, our participation in the United Nations and other appropriate multi-national peace support operations underlines our wider commitment to collective security and our credentials as a good international citizen. Peacekeeping reinforces and in some cases establishes New Zealand's profile in areas of considerable international tension, such as the Middle East and the Balkans. Our contributions in Afghanistan and Timor Leste are just the latest examples of our preparedness to uphold the principles of the United Nations, international law and collective responsibility. While New Zealand does not face any direct military threat, a growing number of transnational security challenges, with implications for New Zealand, has created a complex and uncertain strategic environment. Many of these challenges are increasingly apparent in the South Pacific and exacerbate many of the problems currently being experienced in our neighbourhood. The lesson of Afghanistan is that failed states are more than a humanitarian tragedy; they can also threaten regional and international peace and security. Closer to home, this lesson is being applied in Solomon Islands where ethnic conflict, the absence of law and order, and economic collapse compelled a regional response. The Australian-led Regional Assistance Mission in Solomon Islands, to which the NZDF continues to be a major contributor, is a Pacific response to a neighbour s request for help. We expect to be needed there in support of the Police-led mission for some time. New Zealand has also been playing a crucial role in Timor Leste following the breakdown of law and order earlier this year. New Zealand currently contributes personnel to the United Nations Police Force (UNPOL), the Australian-led Joint Task Force (JTF), and the United Nations Interim Mission to Timor Leste (UNMIT). Our extensive involvement in support of these international peacekeeping efforts is a direct manifestation of the importance New Zealand attaches to stability and security in the region, and to the importance of assisting a regional country in times of great need. International terrorism remains a significant and serious threat to New Zealand, our interests oversees, our wider region, and to the international community. The Government has determined that combating international terrorism is a policy priority. The deployment of NZDF personnel and forces in support of peacekeeping efforts in Afghanistan and the wider Middle East will therefore remain an operational priority. The recent appointment of a senior defence attaché in Riyadh with wide regional responsibilities demonstrates the value that New Zealand attaches to maintaining stability in this region and to building relations with key countries in the campaign against terrorism. Countering terrorism, however, is not entirely a defence mission. The deployment of the NZDF is only one of a range of options open to the Government, all of which must be drawn together into a coherent strategy. At a regional level, the Pacific will continue to be a key focus for the NZDF. The Government s Defence Policy Framework 2000 states: New Zealand has special obligations to its Pacific neighbours to assist in maintaining peace, preserving the environment, promoting good governance and helping economic wellbeing. We want a secure neighbourhood and we must work towards that end. New Zealand has formal constitutional obligations for the defence of the Cook Islands, Niue and Tokelau. We are also committed to consulting regularly with our Island neighbours on defence and security NZDF 2007 Statement of Intent 14

15 issues, including advice on apparent security risks. The Treaty of Friendship with Samoa brings a responsibility to consider sympathetically any requests for defence assistance by the Government of Samoa. In the wider Pacific region, New Zealand has additional international obligations, including assistance with the surveillance of Pacific Exclusive Economic Zones, disaster relief, maritime search and rescue, and peacekeeping. The impact of globalisation on the Pacific has transformed the security environment in the region. While globalisation offers the opportunity to reduce the region's sense of isolation, the world's problems are now coming to the Pacific, including transnational threats such as terrorism, organised crime, money laundering, and the illegal movement of people and goods. The challenge for the New Zealand Government will be to maintain ready and capable agencies, including the NZDF, to help our Pacific neighbours tackle these issues, along with other emergencies such as disaster relief. To do this New Zealand needs partners. Regrettably, the Fijian military, which was capable of making a constructive and needed contribution to regional peacekeeping and confidence building measures, has instead chosen to usurp power in its own country. In doing so, the Fijian military forces have undermined Fiji s stability and added to the region s growing problems. Our closest strategic partnership is with Australia. Bound together by geography and history, by values, beliefs and interests, and by the close relationships between our peoples, we have a tradition of mutual commitment to each other s security and of working together in pursuit of shared strategic interests. A high priority in the period ahead will be to work closely with Australia to promote a secure and stable neighbourhood. The need to work and operate closely with the Australian Defence Force in order to respond in a timely and co-ordinated fashion to a range of contingencies has been reinforced by our combined efforts in successive regional peacekeeping operations and disaster relief efforts. New Zealand is an active participant in measures designed to reinforce peace and stability in Southeast Asia. Asia is a region where strategic realities and market opportunities combine to compel a strategy of greater engagement. The ASEAN Regional Forum, with its broad regional membership, provides opportunities for New Zealand to work with other forum members in countering terrorism and transnational crime, and promoting regional security through participation in confidence building measures. The NZDF takes an active role in the Five Power Defence Arrangements (FPDA) with Australia, Malaysia, Singapore and the United Kingdom, and in adopting FPDA activities to help build capacity to meet non-conventional security challenges. We maintain bilateral relationships with a number of Southeast Asian nations - Vietnam being the most recent. New Zealand also continues to seek a forward-looking and positive defence relationship with the United States of America that enhances our ability to work together in support of our common international and regional security interests. Further north, our maturing defence relations with China, Japan and Korea, enhanced through regular defence contact and dialogue, add an important dimension to New Zealand s engagement in North Asia, and underscore our commitment to peaceful interaction in a region of substantial and growing significance to New Zealand. The NZDF s contribution to the United Nations Command in the Republic of Korea underlines the Government s commitment to the Armistice Agreement and to the cause of peace on the Korean Peninsula. The importance of this commitment is underlined by the recent North Korean nuclear test. New Zealand has joined China and others in the international community in unequivocally condemning Pyongyang s actions, and will continue to work with like-minded nations in encouraging North Korean compliance with international control regimes. The demands on the NZDF will intensify as we continue to play our part in countering international terrorism, supporting fragile states, and addressing the challenges of nuclear 15 NZDF 2007 Statement of Intent

16 proliferation. As part of our wider effort to meet these challenges, New Zealand has joined with a number of like-minded countries in support of the Proliferation Security Initiative, a multilateral effort to counter the illegal trafficking of weapons of mass destruction and related materials. With the broadening of security definitions in the post- Cold War era to include transnational crime, the NZDF will be called on to do more in the future to deal with those threats, particularly in the Pacific Islands. Moreover, the natural disasters to which our region is prone will require NZDF resources to remain readily available to offer immediate assistance. This strategic environment has been taken into account in the NZDF s plans for the future. The on-going work under the Defence Sustainability Initiative (DSI), - as business as usual - and the enhanced capabilities being introduced to the NZDF under the Defence Long-Term Development Plan (LTDP) are but two important aspects of the NZDF s strategy to meet the complex and uncertain security challenges of the future. THE DEFENCE ACT 1990 The primary legislation concerning the raising and maintaining of New Zealand s armed forces is the Defence Act That Act confirms the purposes of the armed forces, constitutes the NZDF, affirms that the armed forces are under Ministerial authority, defines the roles and relationships of senior officials, and makes provisions, generally, in respect of the establishment, control and activities of the NZDF, and related matters. GOVERNMENT S PRIORITIES / THEMES The purpose of the NZDF is primarily linked to Government Priority Number 3 - the theme of National Identity and the connotation that, as New Zealanders, we celebrate our identity in a world as people who support and defend freedom and fairness. This theme links with the Government policy to not only provide Defence Force contributions to the resolution of conflict and maintenance of stability, particularly the international roles of peacekeeping and humanitarian relief operations, but also to the wide range of assistance that is provided by the NZDF to the New Zealand community. The theme of National Identity also reflects how New Zealanders understand our history as a nation and our stance on international issues. Significant periods of our history have, of course, involved military contributions to world wars and other conflicts. Other less obvious informal links with the Government s Priority themes of Economic Transformation and Families - young and old can also be made: For example, NZDF contributions to Economic Transformation include the following: The NZDF encourages innovation, and promotes high standards in education. The education and skills given to members of the Armed Forces add value to the wider New Zealand community when those members take their release; especially those who take release at the 10 to 15 year mark. The NZDF promotes a healthy Defence Industry in New Zealand. The NZDF will buy New Zealand made where considered prudent and within current government requirements/limitations. NZDF contributions to Families - young and old include: The NZDF supports other agencies of government to assist in maintaining the security and wellbeing of New Zealanders. For example, the NZDF has formal and informal arrangements in support of the NZ Police, the NZ Customs Service, NZDF 2007 Statement of Intent 16

17 Ministry of Emergency Management, Civil Defence, and so on, all aimed at keeping New Zealanders safe/secure and promoting safer communities. The NZDF promotes fitness and better health. Through the Limited Service Volunteer (LSV) Scheme, support of the NZ Cadets Forces, and relations with schools at the local level throughout New Zealand, the NZDF promotes and supports healthy, confident children / youth and disadvantaged youth. While these links are important to the NZDF and to the community, they arise simply as by-products of being a Defence Force per se. NEW ZEALAND S DEFENCE POLICY The Defence Policy Framework, issued by the Government in June 2000, provides the initial framework for future decisions about military capabilities, resources and funding. It articulates the Government s goals and priorities for defence, and was substantially guided by, and builds on, the Defence Beyond 2000 Report. Subsequent Government statements on defence, such as those of 8 May 2001 (A Modern Sustainable Defence Force Matched to New Zealand s Needs), 11 June 2002 (the Defence Long-Term Development Plan - and subsequent updates), and 2 May 2005 (The Defence Sustainability Initiative) add detail to the Defence Policy Framework. The Defence Sustainability Initiative (DSI), in particular, sets the NZDF on a recovery and growth programme out to 2014/15. The DSI is discussed in more detail later in this SOI. The Defence Policy Framework sets out New Zealand s security interests and lists five key Defence Policy Objectives. These are to: defend New Zealand and to protect its people, land, territorial waters, EEZ, natural resources and critical infrastructure; meet our alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests; assist in the maintenance of security in the South Pacific and to provide assistance to our Pacific neighbours; play an appropriate role in the maintenance of security in the Asia-Pacific region, including meeting our obligations as a member of the Five Power Defence Arrangements; and contribute to global security and peacekeeping through participation in the full range of UN and other appropriate multilateral peace support and humanitarian operations. DEFENCE OUTCOMES The Defence Policy Objectives can be expressed in terms of Defence Outcomes. While the NZDF is constitutionally the sole provider of military forces, it is not the sole contributor to Defence Outcomes. The Ministry of Defence, Ministry of Foreign Affairs and Trade, NZ Police, NZ Customs Service, and other departments and agencies also contribute to the outcomes. Based on the foregoing Defence Policy Objectives the following Defence Main and Intermediate Outcomes have been developed: 17 NZDF 2007 Statement of Intent

18 Main Outcome: New Zealand Secure and Protected from External Threats now and in the future. Intermediate Outcomes: Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure. Intermediate Outcome 2: Reduced risks to New Zealand from regional and global insecurity. Intermediate Outcome 3: New Zealand values and interests advanced through participation in regional and international security systems. Intermediate Outcome 4: New Zealand is able to meet future national security challenges. The Main Outcome was selected on the basis that it encapsulates both the local (New Zealand) and international intent of the Defence Policy Framework and makes specific mention of the future. It includes a focus on abilities to generate security and protection actions and recognises that New Zealand has national interests that materially affect the security of the nation. As should be expected, it is also compatible with the main outcomes of MFAT and the MoD The Intermediate Outcomes are also compatible with the Defence Policy Framework and subsequent Government statements on defence policy. They are focused on subordinate results that, if achieved, influence materially and directly the achievement of the Main Outcome. PRIMARY MISSION OF THE NZDF The primary mission of the NZDF, as derived from the Defence Policy Framework, is: to secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone (EEZ), and to be able to take action to meet likely contingencies in our strategic area of interest. NZDF VISION The NZDF vision is: Three Services as one Force, being the best in everything we do. This vision stresses that all members of the NZDF - military and civilian - must give of their best, for there is no second place in combat. DEFENCE INTERMEDIATE OUTCOMES The Intermediate Outcomes and sub-outcomes provide the vital links between the Government s Defence Policy Objectives, the Main Defence Outcome and NZDF Outputs. NZDF 2007 Statement of Intent 18

19 For each of the Intermediate Outcomes listed below (and sub-outcomes, where applicable) two main aspects are covered in sufficient detail to clearly indicate how the NZDF intends to work towards achieving the Main Outcome: The desired state of affairs from a national perspective for the wider security of New Zealand and its people (the National Perspective). The narrower NZDF contribution showing how the everyday employment of the NZDF outputs across a spectrum of activities, over time and together with outputs from other related government departments and agencies, achieve the Main Outcome (the NZDF Contribution). INTERMEDIATE OUTCOME 1 - Secure New Zealand, including its people, land, territorial waters, exclusive economic zone, natural resources and critical infrastructure. This intermediate outcome is divided into the sub-outcomes of: Protected from Terrorism Protected from Transnational Illegal Activities Protected persons and infrastructure from Civil Instability and Disasters. National Perspective. National sovereignty requires that New Zealand assume the prime responsibility for direct national tasks such as the protection of our territory and citizens, the capability to monitor and protect resources in areas that are under New Zealand jurisdiction, the countering of any threat posed by terrorism or acts of sabotage, the welfare of our people and our economic livelihood. NZDF Contribution. The NZDF contributes to this outcome through the delivery of annual outputs that provide prime or major contributions to sovereignty protection, deterrence, incident or crisis response, including counter-terrorism, civil defence and other emergencies. The NZDF will seek to deter unwanted intrusions by demonstrating its ability to operate throughout New Zealand, its offshore islands, its EEZ and the Southern Ocean and Ross Dependency, and being able to respond to tests to our sovereignty. The vessels being delivered under Project Protector (the MRV, OPVs and IPVs) will greatly enhance the NZDF s ability, in concert with others, to operate in these areas. The NZDF will monitor activities in the region to provide warning of any adverse developments, and maintain levels of preparedness in order to respond to contingencies. Within the capabilities maintained the NZDF will provide assistance to the civil power and in the event of natural disasters provide assistance to restore vital services and essential amenities. The NZDF contributes to this outcome by the deterrent effect of a credible Defence Force and the demonstrated ability to take action where appropriate. This includes the maintenance of capabilities sufficient to demonstrate to others a commitment to national defence and to secure the support of others. As a by-product of the outputs the NZDF accomplishes public support tasks for other government departments and agencies and the community; provides opportunities for training and rewarding careers, and provides a source of skilled personnel who join the national work force as values-based citizens at the end of their engagement. INTERMEDIATE OUTCOME 2 - Reduced risks to New Zealand from regional and global insecurity. This intermediate outcome is divided into the sub-outcomes of: A Secure, Peaceful and Stable Australia A Secure, Peaceful and Stable South Pacific A Secure and Stable Asia-Pacific Region A more Secure and Stable World 19 NZDF 2007 Statement of Intent

20 A Secure, Peaceful and Stable Australia National Perspective. Australia is New Zealand s closest and most important security partner. Our alliance commitments to Australia are met by maintaining a close defence partnership in pursuit of common security interests. The two countries are better able to influence events in the region of joint interest if they operate together rather than separately. NZDF Contribution. The NZDF contributes significantly to this outcome through the delivery of annual outputs that support regional security arrangements, and provides a capacity to act if Australia is threatened. Cooperation between the defence forces of the two countries is aided by capabilities that are interoperable, and reflects New Zealand s alliance commitments to Australia. The capacity of the two countries to act together is enhanced by combined exercises, personnel exchanges and cooperation under the Closer Defence Relations (CDR) agreement. CDR includes coordination of regional assistance, cooperation in operational planning, combined military missions, reciprocal force augmentation and collaborative logistic support. The end state is a strong strategic relationship with Australia in support of common interests for a secure and peaceful region. A Secure, Peaceful and Stable South Pacific National Perspective. New Zealand s major interest in the South Pacific centres on the South Pacific states with which it has significant cultural, ethnic or historical ties, and in some cases constitutional obligations (the Cook Islands, Niue and Tokelau). Our interests are affected by the continuing ability of Pacific governments to provide a stable environment for economic growth and social development. The successes of these governments will shape the region s stability and migration patterns, and limit calls on New Zealand for economic or military assistance, including, where required, assistance in peace processes through diplomacy, mediation and peacekeeping. Consequently we have a substantial interest in the South Pacific s stability and prosperity and its good governance. We help by providing aid through MAP and ODA, disaster relief, obligations for search and rescue and emergency medical evacuation, and assistance with the protection of its natural resources, including surveillance of their EEZs. NZDF Contribution. The NZDF contributes to this outcome through the delivery of annual outputs that provide contributions to regional engagement, security assistance, developmental assistance, resource protection, and disaster relief. The NZDF will effect regional engagement by participation in security co-operative and confidencebuilding measures such as visits to, and exercises and activities with, and within, South Pacific countries. The provision of training and development assistance throughout the region, under the auspices of the Mutual Assistance Programme (MAP), also contributes to this outcome. Further contributions to this outcome are derived from assisting in the surveillance of EEZs of South Pacific states, civil aid activities and assistance with relief in the event of any natural or humanitarian disasters in the region. The NZDF also contributes to this outcome by maintaining capabilities sufficient to respond to requests for assistance from South Pacific states in the event a serious breakdown of law and order, and to provide protection for, and if necessary assist in the evacuation of, New Zealand nationals in civil emergencies in the region. New Zealand s contribution to resolving the recent problems in the Solomon Islands is a good example of our commitment to this intermediate outcome. A Secure and Stable Asia-Pacific Region National Perspective. The costs of any future trouble in the Asia Pacific region could be high. The new interdependence of interests means these costs will be carried not NZDF 2007 Statement of Intent 20

21 only by those countries directly involved in dispute but also by their neighbours. As a beneficiary of a stable and secure environment, New Zealand must also bear some of the responsibility and costs of keeping it that way. The Government will continue to support the FPDA, build upon existing co-operative bilateral defence relations with Singapore, Malaysia, Thailand and the Philippines, and develop a broader-based defence dialogue with other nations in East Asia. New Zealand s security policy in East Asia will include active participation in important regional fora, such as APEC and the ASEAN Regional Forum, a constructive approach to regional human rights initiatives, and, where necessary and feasible, mediation and peace support. As evidenced by New Zealand s support and assistance during the relief operations following the devastation caused by the 2004 Boxing Day earthquake-induced tsunami, New Zealand is prepared to offer military and other aid to the region in such circumstances. NZDF Contribution. The NZDF contributes to this outcome through the delivery of annual outputs that provide contributions to peacetime engagement. This includes military-to-military contacts, military-to-diplomatic contacts, security assistance, confidence-building measures, support of regional security arrangements and conflict deterrence. The NZDF will effect regional engagement by multilateral exercises under the aegis of the FPDA, by bilateral exercises with regional countries, and by participation in regional fora. Contributions to the outcome include Defence Liaison and Attaché Staffs at key New Zealand Embassies and High Commissions, support of UN missions and demining programmes, visits by senior defence staff and port visits. The provision of training assistance under the auspices of the MAP also contributes to this outcome. The NZDF also contributes to this outcome by the deterrent effect of capabilities that are interoperable with other relevant armed forces and available as a contribution to the regional efforts aimed at deterring aggression. A More Secure and Stable World National Perspective. New Zealand expects to benefit from the globalisation of trade, information, communications and technology. These benefits can be best secured when there is an environment of peace, stability and shared prosperity. Constructive involvement will not only ensure that New Zealand is a welcome participant in the benefits but will also contribute to New Zealand s image and standing in the world community. This will allow New Zealand to have a voice in processes that shape international economic, diplomatic and security developments. The Government will continue to base its global engagement on active support for, and participation in, UN and appropriate multi-national peace support operations. New Zealand will continue to make as full a contribution to peace support operations as is reasonably possible. New Zealand will not engage in military cooperation or exercises with the armed forces of states which sanction the use of armed forces to suppress human rights. This does not preclude New Zealand involvement in UN peace support or other appropriate multinational peace support operations where the armed forces of such countries are also involved. NZDF Contribution. The NZDF contributes to this outcome through the delivery of annual outputs that provide contributions to collective security operations, peacekeeping, and peace-enforcement conducted by the United Nations and other relevant multinational agencies. The NZDF will provide the Government with options for contributing to collective security operations by maintaining forces at specified levels of preparedness. Interoperability (the ability to interchange units and to operate effectively with forces from other states) will be maintained through participation in international military standardisation and safety fora, multinational exercises, and the exchange of personnel with the armed forces of Australia, Canada and the United Kingdom. Qualified NZDF personnel are deployed overseas for initiatives such as demining, arms control support, and inspections that contribute to international order. As 21 NZDF 2007 Statement of Intent

22 a by-product of these outputs the NZDF is able to deliver assistance for international humanitarian relief. INTERMEDIATE OUTCOME 3 - New Zealand values and interests advanced through participation in regional and international security systems. This intermediate outcome is divided into the sub-outcomes of: Collaboratively Develop and Shape the International Security Order Effective Participation in the International Security Order. National Perspective. New Zealand has always been outward looking and taken an active interest in developments in other parts of the world. New Zealand is prepared to speak out on international security issues and, when applicable, offer constructive suggestions as to resolution and provide personnel and resources to aid in effecting relevant change. NZDF Contribution. In concert with other relevant government agencies, the NZDF supports this outcome through a range of activities, including participation in confidence-building, defence diplomacy and coalition-building. Also in concert with other relevant government agencies, the NZDF contributes to this outcome through participation in or support of a range of security treaties, military-related fora and programmes and standardisation organisations. New Zealand is a member of the Canberra Pact and FPDA and actively participates in the ASEAN Regional Forum, APEC and the Pacific Islands Forum. The NZDF has either formal membership of or at least observer status on: the Australia, British, Canadian, and American Armies (ABCA) Standardisation Organisation (New Zealand recently becoming a full member of this organisation); the Air and Space Interoperability Council (ASIC), The Technical Cooperation Programme (TTCP); NATO Standardisation Agency (NSA); the Australian, Canadian, New Zealand, United Kingdom and United States Navies (AUSCANNZUKUS); the Multinational Interoperability Council (MIC); the combined Communications and Electronics Board (CCEB); Pacific Area Senior Officer Logistic Seminar (PASOLS), and so on. INTERMEDIATE OUTCOME 4 - New Zealand is able to meet future national security challenges. National Perspective. This intermediate outcome was selected on the basis that it is vital for the NZDF to plan for the future, especially for sustainable future capability requirements. This outcome is directly related to the Defence Policy Framework and the Government s Statement of 8 May 2001 A Modern, Sustainable Defence Force matched to New Zealand s needs. While comment could be made that planning for the future should be routine, the development of this Intermediate Outcome helps to emphasise the importance of futures planning/future capability requirements. NZDF Contribution. It is essential that the nature of defence capability planning be seen and understood in the long-term. Given the very high cost of major equipments that contribute to military capability and the life expectancy of such equipment (frigates, aircraft and armoured vehicles out to 20(+) years, even before life extensions are considered) planning must have a long-term horizon. It is equally essential that the human resource base of the NZDF, the most significant element of military capability, be seen in the long-term. Given the higher range of technologies, the sophistication of modern platforms, the time required to become proficient in their use, and doing more with fewer personnel, demands high calibre Service personnel who are prepared to make the Services a fulltime career. The tools to support this longer-term capability planning are included in the Defence Capability Management Framework (CMF). The NZDF and the MoD use a variety of strategic planning tools to assess future capability requirements. An examination of defence policy and current capabilities identifies capability gaps. Additionally, many capabilities/equipments have known obsolescence NZDF 2007 Statement of Intent 22

23 dates. Planning tools include enduring strategic guidance, evidence-based decision support tools, strategic assessments, capability goals matrices and research/lessons learned. These are all defined in detail in the CMF. An annual capability prioritisation conference, co-chaired by the Secretary of Defence and Chief of Defence Force, will result in a recommended future capability assessment for the Government to note, and a current capability plan, the LTDP, for the Government to approve. The whole process is one of internal evaluation - measuring options, managing risk, assessing policy and making judgements. Where necessary, external evaluation will be conducted by, or at least involve, agencies such as the MoD Evaluations Division, Office of the Auditor General, and Treasury. NZDF STRATEGIC PLAN The NZDF launched its first enterprise-level Strategic Plan in March That plan provides guidance for all subordinate strategic planning and for annual planning and budgeting through the Defence Planning Directive. It sits within the wider architecture of the Defence Planning Framework (DPF), and provides the measurement framework [via the NZDF Balanced Score Card (BSC)] for corporate level reporting of progress against strategic objectives. In the shorter-term the strategic objectives are supported by annually updated strategic initiatives. The following information on the NZDF Strategic Plan is supported by and should be read in conjunction with the diagram on the next page - the NZDF Strategy Map. The NZDF strategy to achieve its mission and to continually grow towards its vision will be effected through the three Strategic Themes of Resource Efficiency, The Agile Force - Operationally Effective, and Valued Partner - Organisational Capacity. All NZDF activities and projects will be aligned with these three broad strategic themes and are aimed at, ultimately, mission success. Resource Efficiency is about being the best at what we do by being selective and optimising how we use our resources. The Agile Force is about being Operationally Effective. Operational Effectiveness links the objectives that will allow us to deliver the agility and organisational resilience for operational success. We must also remain agile in everything we do. The Valued Partner theme reflects the need for the NZDF to retain the trust and confidence of our partners and stakeholders. Through integration and synergy across the organisation we will release additional capacity for mission success. The collection of strategic themes articulates how the NZDF will work together to deliver maximum value. In effect, the strategic themes provide the glue that links together the separate objectives and initiatives of the organisation to deliver the synergies of the whole three Services as One Force delivering the Joint Effect (the ability to contribute air, land and/or sea capabilities to military operations that are relevant to New Zealand s national interests and security strategy). The NZDF strategy is organised around four Strategic Perspectives - Stakeholders, Enabling Processes, Learning and Growth, and Resources: Our Stakeholders. This perspective recognises who our stakeholders are [Government (central government and other government departments and agencies) with whom we share common outcomes, the citizens of New Zealand, and our defence partners] and what our strategy must deliver for our stakeholders. It reflects the mission-focused nature of public sector organisations, subject to Government mandate and limitation. For the NZDF this covers those organisational outcomes that our strategy must deliver to meet the expectations of stakeholders. 23 NZDF 2007 Statement of Intent

24 Enabling Processes. This perspective focuses on the internal organisational processes that we must excel at to meet all the requirements of the NZDF mission, effectively and efficiently, within the resources allocated. Learning and Growth. This perspective looks at how we sustain our ability to change and improve. It reflects the need to build the NZDF of the future in our people, our organisation, and our information resources. Resources. This perspective looks at how we must obtain and manage our resources base to deliver our mission. It reflects how we will maximise output effectiveness from predetermined baselines, while controlling costs. NZDF 2007 Statement of Intent 24

25 The NZDF Strategic Objectives across the three Strategic Themes and within the four Strategic Perspectives are listed within the NZDF Strategic Initiatives table shown later. In summary, the NZDF Strategic Objectives - grouped by Strategic Perspective - for the period of this Statement of Intent (but updated annually) relate to: Strategic Perspective - Our Stakeholders: Current Operations. We need to sustain current operational commitments while introducing new capabilities (0 to 5 year timeframe). Future Operations. We must be ready to meet the Government s next request (5 to 10 year timeframe). Finance and Resources. We must make best use of allocated finance and resources. Reputation. We need to enhance our reputation as an effective Defence Force and valued interagency and coalition partner. Strategic Perspective - Enabling Processes: We must deliver effective and efficient business processes. We must deliver agile and effective logistic support by exploiting the potential of effects-based logistics through a Network Enabled and Knowledge Edge force. We must deliver flexible and relevant future capabilities (beyond 20 year timeframe). We will develop and sustain an effective military policy capability. We will increase our contribution to wider Government initiatives and activities - both in the security sector and in Whole of Government. We will develop key relationships with national and international partners. Strategic Perspective - Learning and Growth: We will be an Organisation of Choice. We must ensure we have the people we need. We must be good at personnel management and prepare and support the joint team. We will grow Information Management capabilities to support the Knowledge Edge Force. We will improve the ability of technology to support effective management of the NZDF. Strategic Perspective - Resources: We must equip our forces to meet current operational commitments and be ready for the next request. We must optimise Defence Infrastructure to meet future needs. Each of the NZDF Strategic Objectives will be achieved through a number of Strategic Initiatives as shown in the NZDF Strategic Initiatives table in the next section. 25 NZDF 2007 Statement of Intent

26 Everything an organisation does must relate to its top-level strategy; there must be alignment throughout the organisation. Within the NZDF each of the Services (Navy Army and Air Force) and the Joint Headquarters already have well-developed strategic plans to support their own requirements. The first corporate-level NZDF Strategic Plan, and associated Balanced Score Card, recognises this and has been derived largely from existing NZDF priorities and programmes. The main intent of our first strategic plan is the progressive alignment of our priorities, programmes and activities around a corporate-level strategy. NZDF STRATEGIC INITIATIVES The Minister of Defence has confirmed that his most immediate priorities for the NZDF continue to be focused on achieving the desired and required results of the Defence Sustainability Initiative (DSI) and continuing to progress the Defence Long-Term Development Plan. These requirements, together with the NZDF s priorities, have been incorporated into the NZDF Strategic Initiatives. The NZDF will focus on achieving the Strategic Initiatives (updated annually) over the period 2007/ /2010 as shown in the table that follows. The Strategic Initiatives are set against the Strategic Objectives. The table also shows the measurement areas against each objective. NZDF 2007 Statement of Intent 26

27 NZDF STRATEGIC INITIATIVES Objectives Measures Initiatives Current: sustain current operational commitments while introducing new capabilities Performance on current operations and activities Progress with introduction of new capabilities Stakeholder Future: be ready to meet the Government s next request Resource Management: make best use of finances and resources Preparedness against DSI targets Output delivery costs Initiatives to deliver objectives in the Stakeholder perspective are found across the other perspectives of the balanced scorecard Reputation: enhance our reputation as an effective Defence Force and valued interagency partner External relevance surveys Internal reputation Feedback from other agencies and coalition partners Enabling Processes Business Processes: deliver effective and efficient business processes Logistics: deliver effective and efficient logistic support by exploiting the potential of Effects Based Logistics through a network enabled and knowledge edge force Savings realised from initiatives % Personnel trained in relevant tools Inventory demands met by Required Delivery Date (RDD) Contingency Reserve Stocks (CRS) Baseline review Efficiency and innovation programme Long-term resource plan DPMS (Defence Performance Measurement System) Portfolio, programme and project management framework Review CRS, Repair and Maintenance (R&M), and base sustainment stockholding policy Establish a Business Integration Channel for sharing logistic improvements across Services Develop a joint logistic training and education framework 27 NZDF 2007 Statement of Intent

28 Objectives Measures Initiatives Enabling Processes (continued) Capability Development: deliver flexible and relevant future capabilities Military Policy: develop and sustain an effective military policy capability Whole of Government: increase our contribution to wider Government initiatives and activities, both in the security sector and whole of Government Relationships: develop key relationships with national and international partners Project delivery on time and on budget Project staff skills coverage Satisfaction with policy advice Strategic skills coverage Multi-Agency Operations and Tasks (MAOT) Output delivery Stakeholder feedback Interoperability (OPRES) Capability Management Framework Capability Management Plans which prioritise investment Network Enabled Capability (NEC) concept and roadmap Defence Strategic Guidance for the Defence Planning Framework Military policy skills programme Information management of inter-agency networking NZDF/MoD information sharing protocols Standing networks with other national agencies Culture: Be an organisation of choice Propensity to join Develop a Remuneration Strategy Personnel satisfaction survey Housing and Accommodation Assistance Review Learning and Growth Personnel: ensure we have the people we need Personnel Management: prepare and support the joint team Information Management: grow information management capabilities to support the knowledge edge force Collective trained state Critical trades at risk Personnel readiness Health and safety trends IM shortfalls identified in OPRES % critical IT/IM deficiencies funded Aligned personnel and capability planning Individual readiness policy Employee wellbeing policy NZDF Professional Development Framework On-line performance reporting system for officers and civilians Defence Recruiting Systems project Information Systems/Information Technology (IS/IT) project and programme management Joint Business Intelligence project Phase 1 of the Information Management and Exploitation (IMX) programme 28 NZDF 2007 Statement of Intent

29 Objectives Measures Initiatives Technology: improve the ability of technology to support effective management of the NZDF System availability Unfunded technology bow wave Network Enabled Capability (NEC) governance structure Joint Command and Control System Secure Wide Area Network (SWAN)Computer Network expansion programme Resources Equipment: equip our forces to meet current commitments and be ready for the next request Infrastructure: optimise Defence infrastructure to meet future needs Equipment shortfalls in OPRES % critical deficiencies funded Building condition index Unfunded bow wave Capabilities Requirements List (CRL) for the Strategic Capability Planning Process Implement revised capability management process Incorporate Integrated Logistic Support (ILS) consideration into Major and Minor CAPEX processes Defence Estate Strategic Plan Housing Accommodation Assistance goal policy and implementation Capital renewal index 29 NZDF 2007 Statement of Intent

30 MEASUREMENT OF THE NZDF S PERFORMANCE The system used to measure the performance of the NZDF is multi-faceted. First, and most importantly, we need to evaluate the preparedness of the force elements of the Navy, Army and Air Force to achieve the directed level of capability (DLOC) for use on operations (Operational Preparedness). Second, we need a system to measure our ability to manage a large and complex business effectively and efficiently (Organisational Preparedness). Third, we need to measure our performance against our Strategic Objectives. Fourth, we must be able to monitor and measure our performance in achieving our short-term initiatives and projects. And last, but not least, we need to be able to measure our contribution toward the achievement of the Main and Intermediate Defence Outcomes over the longer-term. In many respects all of these individual performance measurement requirements are inter-related, and when taken together lead to an overall assessment, at any one time, of the health of the NZDF. The overarching system that the NZDF uses to measure our performance across the board is the Defence Performance Management System (DPMS). The DPMS amalgamates information from the operational preparedness reporting system (OPRES), personnel management systems, financial management systems and programme management systems. The key characteristics of the DPMS are: alignment of NZDF organisational performance and activities with the NZDF strategic and short-term plans; measurement of the performance of both strategic priorities and operational imperatives; integration of the reporting requirements of performance management, programme management, risk management and capability management; sufficiently flexible to adapt to changing business requirements; provision of a basis to effectively manage the current and future level of organisational change; and performance measures are valid, reliable, timely and materially complete. The DPMS consists of the following two formal measurement systems: OPRES. The NZDF carries a latent capability in that it often functions in potential rather than in actuality. While this can complicate the process of evaluation and measurement, it is necessary to assess the ability of the NZDF to respond to events that have not yet occurred. Traditionally, the NZDF has placed considerable emphasis on achieving specified and agreed levels of military preparedness - based on careful assessment of military capability requirements, performance on exercises and performance on actual operational deployments. The NZDF OPRES continues to be the key measurement system for the preparedness of the force elements of the NZDF to undertake operations that the Government may call on it to perform. In other words, OPRES provides robust feedback to the Executive Leadership Team (ELT) and the Minister of Defence on the ability of the NZDF to deliver military capability. The OPRES, which is being continually enhanced, will remain the backbone of measurement and evaluation within the NZDF. The measures involved are outlined in the Output Specification Tables within this Statement of Intent. While OPRES provides a robust measure to inform internal decision-making on preparedness and military capability and helps to inform the overall health of the NZDF, it does NZDF 2007 Statement of Intent 30

31 not adequately inform on how well we are managing the actual business of defence or achieving our Strategic Objectives or Strategic Initiatives; OPRES is not designed to do this. Balanced Score Card (BSC). As stated earlier, the NZDF uses a BSC system to measure its business performance. The NZDF BSC approach was developed and implemented in 2006/07 in conjunction with the production of the first NZDF Strategic Plan. The NZDF BSC approach is a comprehensive performance management system; not just a measurement system. Together, the four Perspectives of the NZDF strategy (Our Stakeholders, Enabling Processes, Learning and Growth, and Resources) comprise the NZDF BSC which is used to implement and measure a range of aligned NZDF Strategic Objectives and associated Strategic Initiatives. BSC Measures and Indicators. The NZDF BSC tracks the progress against the Strategic Objectives areas using two types of measures - lagged and leading indicators: Lagged Indicators. Lagged indicators are measures that focus on whether the ultimate objective is being achieved. Leading Indicators. Leading indicators provide an early measure about whether or not strategy is being implemented successfully to achieve the ultimate objective. The combination of lagged and leading indicators selected will illustrate the cause-and-effect logic underlying the NZDF s strategy. Each Strategic Initiative is based on an assumption that it will improve performance in either the short or long-term; essentially to close the performance gap. Several measurement principles have been developed to ensure that the NZDF BSC measures will effectively track the success of our strategy. Lagged and Leading Indicator measures for each NZDF Strategic Objective area have been developed and are shown in the table preceding table. A Whole of Government 1 approach to Defence Outcomes. The achievement of Defence Outcomes under the Whole of Government approach is, generally, reliant on the contributions from a large number of government departments and agencies that have an interest in wider defence and security issues. In order to adequately measure the wider security outcomes, higher-level indicators and impact measures need to encompass input from all relevant sources. The MoD, DPMC, MFAT, NZ Police, NZ Customs Service, Ministry of Fisheries, the Immigration Service, and other departments and agencies involved in the greater security of New Zealand and its people, and actual decision-making by the Cabinet 2, all have a significant part to play in determining the overall results for Government - the Defence (NZ Security) Outcomes. While it will be some time before a robust, truly Whole-of-Government approach on this can be achieved, the Ministry of Defence, in conjunction with the 1 Whole of Government denotes government departments and public service agencies working across portfolio boundaries to achieve a shared goal (or outcome) and an integrated government response to particular issues or situations. Whole of Government expects the State sector to work like a single, integrated organisation, rather than a collection of seemingly independent service providers. Whole of Government approaches work on the assumption that responses (to problems) will be more effective if we combine the efforts of all relevant agencies into a single coordinated strategy. 2 For example, a decision by Cabinet to contribute NZDF force elements to various operational missions. 31 NZDF 2007 Statement of Intent

32 NZDF, is promoting moves in this direction 1 and will continue to identify the indicators and impact measures that are applicable to Defence contributions to national security - in its widest sense. Measurement of Achievement of Defence Main and Intermediate Outcomes. As explained earlier, the NZDF Strategic Plan cascades, within Strategic Themes, from Strategic Perspectives, through Strategic Objective, to Strategic Initiatives. Like Defence Outcomes, the Strategic Perspectives, per se, are too high-level to measure successfully. At the other end of the scale, the Strategic Initiatives are too low-level as they are really annual or short-term priorities. The NZDF Strategic Objectives, on the other hand, are objectives that are set for the mid-to-long term and will not alter, with any significance, from year to year. They, together with the results of OPRES and the NZDF Balanced Score Card [under Business as Usual (BAU)], therefore seem to provide the most appropriate gateway through which the NZDF can measure its overall performance in achieving the longer-term Defence Main and Intermediate Outcomes (the longer-term results required by the Government for the people of NZ). Further work resulting from the DCAMP recommendations will determine the final direction that this may take in future. COST-EFFECTIVENESS OF INTERVENTIONS Section 40 (d) of the Public Finance Act 1989 (as amended by the Public Finance Amendment Act 2004) requires the provision of information on the cost-effectiveness of interventions; in the case of the NZDF, the delivery of outputs. The Defence Capital Asset Management Practice (DCAMP) Review, the recommendations of which were taken by Cabinet on 13 December 2006, noted the following at paragraphs 2.6 and under the heading Efficiency and Effectiveness in a Defence Context : The concept of cost-effectiveness has an appealing simplicity but, without significant technical development, its usefulness as an analytical approach in a defence context is limited. A number of almost insurmountable complications are encountered in practice, including the following: the difficulty in measuring costs and benefits, the difficulty in determining which costs and benefits should be included in the analysis, the difficulty of quantifying the time dimension, and the analytical treatment of uncertainty. For Defence investments, the complications can cause extreme analytical difficulties. Like many other government departments, including those under the Public Service, the NZDF has had some difficulty in articulating how it can prove that the delivery of NZDF Outputs is as cost-effective as it can be - without affecting the required quantity and quality expected by the Government to achieve its Defence Objectives. While the NZDF has excellent systems under its Defence Planning Framework (DPF), such as the Defence Performance Management System (DPMS), the Operational Preparedness Reporting System (OPRES) and the Balanced Score Card (BSC) to measure performance against the level of operational preparedness achieved and the achievement of strategic objectives, the difficulty arises in that there is currently no 1 In this regard, the Defence Capital Asset Management Practice (DCAMP) Review (completed in late 2006) recommends that a Whole-of Government Approach for the security sector of New Zealand should be pursued. NZDF 2007 Statement of Intent 32

33 fixed benchmark/s against which the cost aspect - versus quantity and quality can be reliably measured. This is further compounded by the not infrequent changes in output structure. The cost of delivering an output in one year cannot be fairly compared with that of another year, given the vast array of influences on costs, without sometimes complex explanations. Fuel costs alone, especially for heavy fuel-user NZDF force elements will significantly distort multi-year comparisons. Nonetheless, the NZDF is working to be able to responsibly provide multi-year costcomparisons that will take such distortions into account and, eventually, provide a more robust result in terms of the cost-effectiveness of interventions. This is being developed under the array of databases within the DPMS. In addition, and regardless of the difficulties identified by the DCAMP Review, the DCAMP Review Report recommends that the NZDF and MoD jointly develop a set of metrics for assessing asset efficiency and effectiveness around the following dimensions, which, while not directly related to output production, have a major influence on the ability of the NZDF to produce outputs in a cost-effective manner: utility and fitness for purpose (as assessed against Government Outcomes), life cycle cost, factors affecting asset availability, including maintenance, personnel, and logistic support, and estimated balance of useful life. Following receipt of the Government s direction on DCAMP, the Review s recommendations are expected to be implemented some time in It is relevant to note here that, given the serious nature of employing military force on combat operations, the NZDF cannot afford to compromise the safety of its personnel by lowering prescribed standards in training (the quality of the output product) in order to achieve a lower cost; to do so would be irresponsible. The aim is to achieve greatest utility in outputs for least cost without compromising safety standards. An indicator that the past and current delivery of NZDF Outputs is cost-effective comes from two major Government-led external reviews of the NZDF; the Defence Capability and Resourcing Review (DCARR) and the Defence Sustainability Initiative (DSI). Both studies commented that the current NZDF output structure is appropriate. This has been taken to mean that any alternative output structures identified would not have been as effective in delivering the outputs in support of achieving the Governments Defence Objectives. DCARR also identified significant funding gaps (funding shortfalls) in the delivery of most NZDF Outputs. To be able to identify these funding gaps the DCARR independently costed the NZDF Outputs. If, in the opinion of the DCARR, there was evidence of the NZDF Outputs being not cost-effective, that would have been made clear in the final report; and it was not. The final report of the DCARR (at Chapter 8 under Opportunities for Further Efficiencies ) states that all the obvious major opportunities for improving efficiencies within the NZDF have been seized, and recommended that further initiatives be pursued as resources allowed. These include the Joint Logistics Support Organisation (established in 2006), and, under the DSI, the development of an NZDF Strategic Plan including a corporate Strategic HR Plan and Defence Estate Strategic Plan; a Defence Performance Management System, Housing and Accommodation Assistance policy, a revised Capability Management Framework, and an Information Management project. Further evidence of cost-effectiveness in the delivery of NZDF outputs is found in the concept of training to a level of operational capability that is short of the requirement for actual operations; that is the concept of training to a Directed Level of Operational Capability (DLOC), as opposed to maintaining forces at a continuously high level of 33 NZDF 2007 Statement of Intent

34 preparedness, the Operational Level of Capability (OLOC). To maintain forces at OLOC would be expensive and, thus, less cost-effective. (DLOC and OLOC are explained in more detail elsewhere in this Statement of Intent). The intense internal and external scrutiny that all the Defence LTDP projects are subject to, so as to ensure best value for purpose, is also an indicator of a costeffective culture within Defence. The fact that in recent years the NZDF financial outturn has been on or under budget reinforces this culture. On a more practical note, everything the NZDF does, in the delivery of NZDF Outputs, takes cost-effectiveness into account. This is not only at the corporate level, but perhaps more importantly, at the workface level where the costs are finally realised. The military, traditionally a conservative organisation but still being agile and flexible, throughout its chain of command, scrutinises activities at subordinate levels and is generally intolerant to waste and unnecessary costs. Independent from the foregoing, a formal NZDF Efficiency and Innovation programme is also being developed to coordinate the management of on-going significant efficiency projects and to oversee the implementation of a continuous improvement and waste elimination programme across the NZDF. This programme will be launched in Finally, the establishment of the Executive Leadership Team (ELT), which has a responsibility to closely monitor and decide on resources and priorities, together with the new Planning Branch, which has and continues to align the organisation behind a robust strategic planning process, will significantly assist in maintaining the costeffectiveness culture within the NZDF. LINKING OUTCOMES TO NZDF OUTPUTS Each of the Intermediate Outcomes is linked to NZDF Outputs through the main intervention logic links of Employment Contexts (ECs). ECs are discussed in more detail in Section 2; suffice to state here that they are descriptions of representative and illustrative security events for which there is a likelihood that a New Zealand Government would expect to make a military response should they occur. ECs are realistic and likely contingencies ranging from security incidents in New Zealand, through possible assistance to our Pacific neighbours in law and order and disaster relief, to military commitments in any part of the world, including under the United Nations or other coalition forces. ECs are the major drivers as to the likely military tasks that elements of the NZDF will be required to perform and these, in turn, drive the military capability requirements. ECs are therefore the central and vital link between outcomes and outputs. The NZDF Output Expense specifications are detailed at Section 3. A summary of the NZDF Output Expenses and Outputs are shown in the following table: NZDF 2007 Statement of Intent 34

35 Output Expense Table: Summary of NZDF Output Expenses and Outputs Title 1 Military Policy Development, Coordination and Advice Outputs 1.1 Collection/Collation/Dissemination of Military Intelligence 1.2 Development and Production of Military Policy 1.3 Operational Military Policy Advice 1.4 Ministerial Correspondence and Parliamentary Questions 2 Naval Combat Forces 2 Naval Combat Forces 3 Naval Support Forces 3.1 Replenishment Forces 3.2 Amphibious Sealift Forces 4 Mine Countermeasures (MCM) and MCM Diving Forces 4.1 MCM Forces 4.2 MCM Diving Forces 5 Naval Patrol Forces 5.1 Offshore Patrol Forces 5.2 Inshore Patrol Forces 6 Military Hydrography, and Hydrographic Data Collection and Processing for LINZ 6.1 Military Hydrography 6.2 Hydrographic Data Collection and Processing for LINZ 7 Land Combat Forces 7.1 Command, Control and Intelligence 7.2 Manoeuvre Elements (Infantry /Armour/Reconnaissance) 8 Land Combat Support Forces 8.1 Artillery 8.2 Engineers 8.3 Communications 8.4 Military Police 9 Land Combat Service Support Forces 9.1 Transport 9.2 Medical 9.3 Supply 9.4 Repair 9.5 Movements 10 Specialised Forces 10.1 Special Forces 10.2 Counter-Terrorist Forces 10.3 Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) 11 Naval Helicopter Forces 11 Naval Helicopter Forces 12 Maritime Patrol Forces 12 Maritime Patrol Forces 13 Fixed Wing Transport Forces 13.1 B-757 Transport Force 13.2 C-130 Transport Force 14 Rotary Wing Transport Forces 14 Rotary Wing Transport Forces 15 Miscellaneous Support Activities 16 Operationally Deployed Forces 15.1 Mutual Assistance Programme 15.2 NZ Cadet Forces Support 15.3 Limited Service Volunteer Training 15.4 Service Museums 16 Operationally Deployed Forces 35 NZDF 2007 Statement of Intent

36 The following table draws together the linkages between Intermediate Outcomes, Employment Contexts and Output Expenses: Table: Summary of Linkages between Outcomes, ECs and Output Expenses Intermediate Outcome Sub Outcome Related Employment Contexts (ECs) Related Output Expense 1. Secure New Zealand Protected from Terrorism Protected from Transnational Illegal Activities ECs 1D and 1E 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14 and 16 ECs 1C and 2B 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 16 Protected persons and infrastructure from Civil Instability and Disasters ECs 1A, 1B, 2A and 2E 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and Reduced Risks to New Zealand from regional and global insecurity A Secure, Peaceful and Stable South Pacific A Secure, Peaceful and Stable Australia ECs 2A, 2B, 2C, 2D, and 2E ECs 3A, 3B, 3C, and 3D 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 16 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 16 A Secure and Stable Asia-Pacific Region ECs 4A, 4B, 4C, 4D, 4E, and 4F 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 16 A more Secure and Stable World ECs 5A, 5B, 5C, 5D, 5E and 5F 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and New Zealand Values and Interests advanced through participation in regional and international security systems 4. New Zealand is able to meet future national security challenges - This intermediate outcome is much wider than all ECs and Outputs. For example, it extends to: Defence Attaché posts. All International and regional security fora. Security Treaties/Pacts/ Arrangements - FPDA. ABCA, ASIC, AUSCANNZUKUS, CCEB, NSA, PASOLS, TTCP, etc. Some Relationship to Output Expense 15 (OE 15). - Developmental. Future ECs developed as a result of security trends and concerns (15 20 years out) Some relationship to OE 15. New capabilities may be required; resulting in requirement for restructured or new outputs. The series of diagrams that follow provide a summary of the logic links, from strategic planning, for each of the Defence Intermediate Outcomes. NZDF 2007 Statement of Intent 36

37 INTERMEDIATE OUTCOME 1: SECURE NEW ZEALAND Protected from Terrorism Protected from Transnational Illegal Activities Protected Persons & Infrastructure from Civil Instability & Disasters International Profile ECs 1D, 1E Deterred Terrorists NZ seen as Hard Target ECs 1D, 1E Mitigated Terrorist Event Illegal Activities Deterred ECs 1C, 2B Mitigated Offshore Illegal Activities Mitigated Effective Border Control Situations Prevented Provide Deterrence ECs 1A, 1B, 2A, 2E Mitigated Offshore Effective Border Control Standing Security Measures ECs 2D, 3C ECs 1C, 1D, 1E ECs 1C, 1D, 1E ECs 1C, 2B Internal Security Measures (including EEZ) ECs 1C, 2B Intelligence to Inform Direction and Response Situations Prepared For Other Agencies Supported ECs 1A, 1B, 2A, 2E Intelligence to Inform Direction & Response Effective Response Consequences Management ECs 1C, 2B Effective & Coordinated Response ECs 1C, 2B Consequences Management Situations Mitigated Effective & Coordinated Response ECs 1A, 1B, 2A, 2E ECs 1C, 1D, 1E ECs 1C, 1D, 1E ECs 1C, 1D, 1E ECs 1C, 2B ECs 1C, 2B Note: See pages for an explanation of Employment Contexts (ECs) 37 NZDF 2007 Statement of Intent

38 INTERMEDIATE OUTCOME 2: REDUCED RISKS FROM REGIONAL AND GLOBAL INSECURITY Secure, Peaceful & Stable South Pacific Secure Peaceful & Stable Australia A Secure & Stable Asia-Pacific Region A More Secure & Stable World Constitutional Responsibilities to Cooks Islands, Nuie & Tokelau ECs 2A, 2B, 2C, 2D, 2E NZ & Other Nationals Extracted in Civil Emergency Effectively Assist with Deterrence of Threats to Australia Effectively Assist with Mitigation of Threats to Australia Assist with Deterrence Assist with Mitigation Deterrence of Threats Mitigate Conflict & Tension ECs 2A, 2B, 2C, 2D, 2E Maintain Order ECs 2C, 2D, 2E Restore Order Effective, Collaborative Operational Response ECs 3A, 3B, 3C, 3D Effective, Collaborative Operational Response ECs 2A, 2B, 2C, 2D, 2E, 4A, 4B, 4C, 4D, 4E, 4F Effective, Collaborative Operational Response ECs 5A, 5B, 5C, 5D, 5E, 5F ECs 2C, 2D, 2E Conduct Surveillance of EEZs ECs 2A, 2B, 2C, 2D, 2E Effective Response to Emergencies (Medical Evacuation) Assist Development of Indigenous Capability Mitigate Natural Disasters Search and Rescue EC 2A EC 2A ECs 2A, 2B, 2C, 2D, 2E EC 2A 38 NZDF 2007 Statement of Intent

39 INTERMEDIATE OUTCOME 3: NZ SECURITY VALUES AND SECURITY INTERESTS ADVANCED Collaboratively Develop & Shape the International Security Order Effective Participation in the International Security Order Effective Contribution to International Security Dialogue Abide by International Agreements Confidence & Transparency Built Effective Membership of Organisations & Cooperative Groupings Effective Direct Defence Diplomacy & Relationships Note: Intermediate Outcome 3 is applicable across all Employment Contexts and contributes to all Output Expenses. 39 NZDF 2007 Statement of Intent

40 INTERMEDIATE OUTCOME 4: NZ IS ABLE TO MEET FUTURE NATIONAL SECURITY CHALLENGES Assessment of Risk Robust Analysis of Current State Robust Gap Analysis of Capabilities Required Generate & Assess Future Options Adequate Inter-Agency Planning Response Effective & Coordinated Response Note: Intermediate Outcome 4 is applicable across all Employment Contexts and contributes to all Output Expenses. 40 NZDF 2007 Statement of Intent

41 CAPABILITY: SHAPING AND REBUILDING THE NZDF The Government s Defence Policy Framework (2000) set the scene for Shaping and Rebuilding the NZDF capabilities. There are seven principles that the Government will use to guide this process - they are that the NZDF be: Equipped and trained for combat and peacekeeping. In order to perform the key tasks required by the Government, the NZDF must be appropriately equipped and trained for both combat and peacekeeping. Deployable. To be able to deploy and sustain our forces, particularly over long distances, a flexible and adaptable mix of air and sealift capabilities are required. Able to operate alongside other forces. Exercising bilaterally with Australia and multilaterally through the FPDA and others builds up the NZDF s interoperability. Held at appropriate levels of readiness. The NZDF must be equipped and trained at appropriate levels of readiness. Sustainable. Contributions to deployments may be for long periods and involve rotations of personnel and equipment. NZDF resources must be managed to ensure that commitments can be sustained. Up to date in technology and doctrine. It is essential that the NZDF keep abreast of military technology and other changes in military operations - the so called Revolution in Military Affairs (RMA) - but having due regard for the high costs involved, in order to retain operational effectiveness and interoperability with our friends and allies. A progressive approach to the introduction of new technology will help to smooth out the costs, and consideration may also need to be given to retaining a lesser range of capabilities. Fiscally sustainable. The Government wants to ensure that our defence dollars are spent wisely. The focus in rebuilding the NZDF will be in the areas of most urgent need. The Government s Defence Policy Framework also sets the scene in terms of the Priorities for Rebuilding the NZDF. It notes that sensible prioritisation of projects against available resources is essential and that priority will be given to the acquisition and maintenance of essential equipment. The core requirement is for well-equipped, combat-trained land forces which are also able to act as effective peacekeepers, supported by the Navy and Air Force. The greatest needs, as listed in the Policy Framework, are to: upgrade the Army s mobility, communications, surveillance, and fire support capabilities; provide effective air and naval transport capabilities; and maintain effective maritime surveillance capabilities of the Air Force and Navy, within the New Zealand EEZ and the EEZs of Pacific Island States. On 8 May 2001, the Government, in follow up to its Defence Policy Framework June 2000, announced major decisions in shaping and rebuilding the NZDF for the future (A Modern, Sustainable Defence Force Matched to New Zealand s Needs: Government Defence Statement 8 May 2001). This Statement noted that these decisions would result in a high quality defence force that was able to keep abreast of technological developments, was affordable and could be sustained over the longer term. The decisions would ensure that resources were available to: 41 NZDF 2007 Statement of Intent

42 continue with the modernisation of the NZ Army, meet New Zealand s civilian and military needs for long range maritime patrol, renew the air transport fleet and utility helicopters, and develop a practical maritime surface fleet that is matched to New Zealand s wide security needs. On 11 June 2002, the Government released details of the first Defence Long-Term Development Plan (LTDP). The LTDP is the Government s blueprint for re-equipping the NZDF. It provides a comprehensive list of all planned major acquisitions with preliminary costings, timings and priorities. The LTDP has a rolling forward focus of 10 years and links the Government s defence policy objectives set out in the Defence Policy Framework June 2000, with the capability requirements announced in the Defence Statement of May The LTDP is updated annually and continues to be a key planning document to support the decision-making processes required for shaping the future capabilities of the NZDF. The Minister of Defence released the latest update of the LTDP on 17 October Previous NZDF Statements of Intent have included a detailed summary of the actions taken by the Government and the respective Defence agencies (the Ministry of Defence and the NZDF) since 2002 relating to the LTDP in support of key decisions made in the Government s Statement of 8 May These will not be repeated here. However, provided below is an update on LTDP matters (as at the time of preparation for print of this Statement of Intent). The following major projects on the LTDP have been completed or are well advanced: The purchase of and successful introduction into service of: the New Zealand Light Armoured Vehicle (NZ LAV); the Pinzgauer Light Operational Vehicle (LOV), all variants (some remedial work continues); the Medium Range Anti-Armour Weapon; and the Very Low Level Air Defence Cueing System; The New Defence Headquarters Building was completed in early 2007 and is now occupied. Ongoing purchase and progressive introduction into service of the new vessels for the Navy under Project Protector. It is expected that all vessels will be in service by mid-2008, with delivery dates as follows: Multi-Role Vessel (MRV), HMNZS Canterbury May 2007 Offshore Patrol Vessel (OPV), HMNZS Otago November 2007 OPV, HMNZS Wellington May/June 2008 Inshore Patrol Vessel (IPV), HMNZS Rotoiti September 2007 IPV, HMNZS Hawea December 2007 IPV, HMNZS Pukaki March 2008 IPV, HMNZS Taupo June 2008 Modifications to the Boeing strategic transport aircraft, which is a critical enabler for many operations, will be completed in NZDF 2007 Statement of Intent 42

43 Life Extension upgrade of the C-130 Hercules strategic and tactical transport aircraft should be complete in with the first upgraded aircraft in service in Mission Management, Communications, and Navigation Systems upgrades of the P-3K Orion should be complete in with the first upgraded aircraft in service in The NH-90 Medium Utility Helicopter has been ordered as the replacement for the Iroquois helicopter. It is expected that the NH-90s will be fully in service by with the first aircraft arriving in The Special Operations Capability for the Army has made substantial progress and will be completed in The equipment to support the enhanced NZDF Improvised Explosive Device Disposal (IEDD) capability with the addition of the Chemical, Biological and Radiological (CBR) requirement is being purchased and appropriate staff are being moved to the new stand-alone organisation. Full operational capability should be achieved in The following projects have been approved in principle by the Government and are on the LTDP as either critical or essential to avoid the failure of policy: Cabinet will shortly be presented with advice on the options for the Training/Light Utility Helicopter to replace the Sioux helicopter. Tenders closed on 15 February 2007 and evaluations are being conducted. The acquisition strategy for the Joint Command and Control System (JCCS), a project designed to implement an automated command and control system in the NZDF, is being developed. Consolidation of the Air Force at Ohakea. Beca Carter Hollings and Ferner Ltd has been commissioned as the prime consultant to assist the NZDF in developing the necessary infrastructure. This involves development of a base master plan, preliminary designs, a manageable construction programme and improved cost estimates for over thirty separate building and infrastructure subprojects. An interim report was provided to the Minister in March 2007, with a full report to Cabinet scheduled for July Subject to Cabinet approval, support facilities for the NH-90 helicopter would commence almost immediately. Joint Communications Modernisation. This project proposes to modernise the NZDF s long-range and medium-range communications capability to ensure that the NZDF maintains a reliable, integrated, world-wide communications infrastructure. Acquisition is scheduled for Army Trunk Communications. This project will be progressed following the outcome of the JCCS and Joint Communications projects and on the completion of a separate study to determine the work required to achieve an integrated NZDF communications infrastructure. Land Intelligence, Surveillance, and Reconnaissance (ISR) and Tactical Command, Control, Communications and Computers (C4). This project proposes to create a land-based C4ISR system able to exploit the advances in data information exchange. The project is expected to be implemented over a three-year period; 2009/10 to 2011/12. ANZAC Class Frigate Self-Defence Upgrade. This project proposes to upgrade the ANZAC Class frigates self-defence systems to protect the Naval Combat Force and ships under its immediate protection. This project, which will be conducted in several phases, is timed to commence in (See close -in protection weapon systems for the ANZAC frigates below). 43 NZDF 2007 Statement of Intent

44 C-130 Hercules Self-Protection. This project proposes to upgrade the C-130 aircraft self-protection system to provide the ability to detect and counter likely threats, primarily man-portable infrared missiles. This project will be conducted during the C-130 life extension programme. P-3 Orion Self-Protection. This project proposes to equip the P-3 Orion aircraft with a self-protection capability to counter likely threats, primarily man-portable infrared missiles. This project may be conducted during the P-3 Orion upgrade programme. Current work includes identification of the appropriate selfprotection requirement. P-3K Orion Air-to-Surface Weapons. This project proposes to equip the P-3K Orion aircraft with an anti-ship missile capability. A study will be conducted in due course to determine the appropriate weapons for this capability. NZDF Torpedo Replacement. This project proposes to replace the torpedoes for the ANZAC frigates, P-3 Orions and SH-2G Seasprite helicopters. General Service Vehicle Fleet Replacement. The Army s general service vehicle fleets, including medium and heavy vehicles, will need to be replaced, beginning in In releasing the October 2006 update of the LTDP, the Minister of Defence announced seven new Defence Projects. These projects, which are critical to avoid policy failure, are as follows: A new fuel storage installation at Devonport Naval Base. This project is intended to proceed as soon as possible and will be completed within a year of commencement; it is currently in the Tender Phase. A new power generation and reticulation system at the Devonport Naval Base. This project is intended to proceed as soon as possible and will be completed within a year of commencement; it is currently in the Tender Phase. Upgrade of the Taxiways at Ohakea Air Base. Reconstruction work needs to be undertaken before the arrival of the new NH-90 helicopters. A study has commenced to assess the magnitude of the work required and to determine a design. Advanced Pilot Training Capability (APTC) [B200 King Air Replacement]. This project proposes to maintain the ability to conduct advanced pilot training after the expiry of the present B200 King Air lease in Preliminary work on the options (including outsourcing, leasing and purchasing) is being conducted. Ministerial approval will be sought in March 2007 to examine options for the provision of APTC. Upgrade of the ANZAC frigates' platform systems. This project seeks to ensure the continued integrity of the ANZAC frigates platform systems (systems that enable the ships to move, float, generate power, recover from damage and accommodate people). This project can expect to commence about 2008/09. Upgrade of the close-in protection weapon systems for the ANZAC frigates. This project proposes to upgrade the Phalanx Close-In Weapon System which provides a last line of defence and protection against anti-ship missiles and strike aircraft. The project is expected to commence in 2007/08. Investigation of the acquisition of a satellite-based strategic communications capability through a long-term lease. A paper seeking relevant approvals will be presented to Cabinet in May NZDF 2007 Statement of Intent 44

45 DEFENCE SUSTAINABILITY INITIATIVE The Defence Sustainability Initiative (DSI) has been well publicised in stand alone documents, the 2005/06 and 2006/07 NZDF Statements of Intent and the NZDF 2005 and 2006 Annual Reports. In summary, as a result of the Defence Capability and Resourcing Review (DCARR), the Government has committed to providing the NZDF with the financial resources to recover and grow. The DSI funding package is $4.6 billion over 10 years (2005/06 to 2014/15). This package will enable the NZDF to develop military and organisational capability to a level that will ensure the Government s defence policy objectives can be met on a sustainable basis. The DSI funding package provides the financial resources to: restore personnel numbers in the three services, HQ NZDF and HQ JFNZ to the levels required, over a period of time; address the number and trained state in some trades deemed as critically deficient; replace and upgrade some major weapons platforms in accordance with the Government s intentions, through the LTDP; raise the standard of some military equipment (other than major weapons platforms) that is currently beneath the required standard; return contingency reserve stocks to acceptable levels; reduce the substantial backlog of maintenance and capital expenditure in the Defence Estate, over the longer term; and restore aspects of corporate management capability that are currently severely depleted. Steps to responsibly manage the DSI funding package allocation process and to ensure that the allocation remains sustainable over 10 years have been developed and implemented, and will continue to be monitored. The DSI is required to be reported on annually, and is subject to annual review and a formal review after five years. The following table is a summary of the DSI funding commitments. 45 NZDF 2007 Statement of Intent

46 Summary of DSI Funding Commitments 2005/ / / / / / / / / / 15 Totals Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Totals Notes: (1) The figures are as at 1 April 2007 and are GST exclusive. (2) The $86.9 funding shown for 2005/06 included $16.6 million for the NZDF continuing contribution to Operation Enduring Freedom in Afghanistan and $5.3 for Defence Force Allowances. (3) The remaining annual increments are net figures after taking into account the arrival of new capabilities, retirements of old equipments, and other changes to the support and sustainment of the NZDF. The following diagram shows, in simplistic terms, the Defence Capability and Resourcing strategy, as related to the DSI funding commitments, over the ten-year timeframe. NZDF 2007 Statement of Intent 46

47 Defence Capability and Resourcing Strategy FOUNDATIONS CONSTRUCTION CONSOLIDATION Funding increase. Multi-Year Appropriation (MYA) for Output Expense Operationally Deployed Forces. Increased funding for Minor Capital projects. Funding increase. Capital injections. Elimination of backlog of deferred maintenance and expenditure. Substantial funding increases. Fully funded Outputs. Recruitment / Retention. Recruitment / Retention. Create depth of talent. Project Protector. Review of optimal configuration of Army. Real Estate Strategy. Housing and Accommodation Policy. New HQ building for the NZDF. Development of Corporate Capabilities. Current levels of Operational Capability. Contingency Reserve Stocks (CRS) reviewed and critical deficiencies restored. Annual reports to Ministers (30 June). Future Army Structure. Restoration of Defence Estate. Capability of HQNZDF restored. Development of military and corporate capability. Growth of Corporate Capabilities. Levels of Operational Capability increase. CRS restoration completed. Annual reports to Ministers (30 June). Mid-term review of DSI (30 June 2010). RNZAF Consolidation Review of next generation of capabilities including weapon systems. Upgrade of Defence Estate. Extension of corporate capability. Consolidate increased Levels of Operational Capability. Rebalance forces to achieve simultaneous operations. Annual reports to Ministers (30 June). Final DSI report (30 June 2015). 47 NZDF 2007 Statement of Intent

48 The projects that come under the DSI are now Business as Usual; albeit the requirement to provide annual DSI reports remains extant. The Government s three main priorities for attention were: Restoration of personnel numbers, Delivery of projects on the Long Term Development Plan (LTDP), and Improving the NZDF s and MoD s corporate management capabilities. A brief summary of the progress to date, against these priorities is as follows: The restoration and growth of the organisational capacity of the NZDF, in terms of personnel, is being achieved and is in line with DSI targets; though there are risks emerging. Recruitment of experienced personnel from other defence forces (lateral recruitment), as well as normal recruitment, and reduced attrition rates have been positive indicators in the last 12 months; albeit lateral recruitment and retention carries a higher cost. The main risks in the short term revolve around accommodating current increases in personnel costs. The latest version of the LTDP was presented to Cabinet on 6 September 2006 and released by the Minister of Defence on 17 October The NZDF is able to manage the LTDP so as to maintain its affordability. Equipment deficiencies, other than those of major weapons platforms, are being addressed under an expanded Capital Equipment (Minor) programme. Affordability of the CP (Minor) is being addressed by the introduction of a new CP (Minor) prioritisation system. The key organisational changes required to improve strategic management ahead of the bulk of the DSI programme have been completed. These have include the establishment of the Executive Leadership Board (ELT) under CDF, the establishment of a corporate Planning Branch and an Organisational Support Branch, the completion of a comprehensive strategic planning framework, the production of a full NZDF Strategic Plan (launched in March 2007), establishment of the Joint Logistics Support Organisation (JLSO), and an electronic Defence Performance Management System (DPMS) - a key management tool for the ELT. Other projects remain on track for completion over the next year. The major risks to the completion of the DSI are operational and fiscal. The operational risk is posed by the continued high tempo of operations which is having the effect of slowing the recovery and growth. The main fiscal risk to the DSI is the pressure on operating expenditure, which is expected to remain over the next few years. The main factors are internal and externally-sourced inflation, and the global increase in commodity prices, particularly for fuel and ammunition. The need to fund remuneration increases in order to achieve the DSI personnel targets will also be a challenge. In response, the NZDF has embarked on a complex work programme to ensure all its baseline expenditure is fully aligned to DSI objectives as articulated in the NZDF Strategic Plan. NZDF 2007 Statement of Intent 48

49 ARMY CONFIGURATION REVIEW (ACR) / ARMY TRANSFORMATION PROGRAMME (ATP) The Army Configuration Review (ACR) was established to determine how the Army should be configured to best maintain its operational capability during the next five years as it builds its capability towards the level required by government policy. Further, the ACR also looked at options to address the range of capability gaps identified in the DCARR. The ACR concluded that contemporary military operations are complex and asymmetric in nature with short warning times. This reinforces the need for force elements to exhibit greater flexibility, agility, utility, capability and sustainability than those traditionally configured for conventional inter-state operations. The opportunity provided by the acquisition and introduction into service of the mobility capabilities (NZ Light Armoured Vehicles and Light Operational Vehicles), as well as self protection (Medium Range Anti-Armour Weapon, Very Low Level Air Defence Weapon and Direct Fire Support Weapon), and modern communications (Tactical Mobile Communications System) capabilities since 2000, and the potential offered by the future intelligence, surveillance and reconnaissance and Combat Service Support capabilities allows the Army to deliver outputs in new and innovative ways beyond that initially envisaged at the time of the Defence Policy Framework (DPF). The ACR envisaged a ten-year process of Army transformation to meet the requirements of the DSI and the Government s defence policy. The Minister of Defence was briefed on the ACR in December The Minister was asked to note the status of the ACR and the incorporation of the ACR into the Army Transformation Programme (ATP). The Minister agreed that the NZDF and the Ministry of Defence now proceed to develop firm Army configuration proposals via the ATP for consideration by Cabinet that would include policy and options analysis, detailed costings, and an implementation risk analysis that are in accord with agreed output milestones. INTER-DEPARTMENT/AGENCY COLLABORATION As mentioned earlier, the NZDF is not the sole contributor to Defence Policy Objectives or Outcomes, or the security of New Zealand; other government departments and agencies also contribute. The relationship that the NZDF has with these other departments and agencies, under the Whole-of-Government approach, continues to take on increased importance. While not an exhaustive list of departments/agencies that the NZDF has a working relationship with, the table below shows those with which the NZDF shares common outcomes, provides a summary of the relationship, and how the NZDF contributes to the shared outcomes. It should also be noted that, in most situations in New Zealand, the other government departments/agencies are being supported by the NZDF, i.e. those departments/agencies take the lead. 49 NZDF 2007 Statement of Intent

50 INTER-DEPARTMENT/AGENCY COLLABORATION Other Departments/ Agencies 1 Ministry of Defence (MoD) Shared Outcome/s NZDF Main Outcome: New Zealand secure and protected from external threats now and in the future. MoD Main Outcome: Supporting New Zealand s security objectives and contributing to the security of other countries. Summary of Relationship and NZDF Contribution 2 All NZDF Outputs contribute towards the achievement of the MoD Main Outcome and the MoD contributes to the NZDF Main and Intermediate Outcomes. The NZDF and MoD have a strong and mutually reinforcing relationship. This relationship, which is critical to Defence s strategic interaction with the Government, was further enhanced by various projects under the Defence Sustainability Initiative (DSI). NZDF / MoD cooperation is facilitated through: the Office of Chief Executives (Secretary of Defence and CDF discuss policy issues of mutual interest); the Executive Capability Board (MoD and NZDF senior military and civilian officials oversee major capital acquisitions); a joint strategic office directed collaboratively by the Vice Chief of Defence Force and Deputy Secretary Policy and Planning; and the implementation of shared systems and processes to strengthen collaboration and consultation, and Identification of options to create a shared information management environment to support information sharing. 1 The listed departments/agencies have all been consulted on the content of this table. 2 In nearly all cases, the nature of the task and NZDF contribution is such that the division of responsibility (which department/agency does what) is clearly designated via written instructions/appropriate documentation. This means that each department can independently measure its own performance, albeit that feedback from other departments will usually be sought. 50 NZDF 2007 Statement of Intent

51 Other Departments/ Agencies Department of Prime Minister and Cabinet (DPMC) Ministry of Foreign Affairs and Trade (MFAT) Shared Outcome/s NZDF Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. NZDF Intermediate Outcome 2: Reduced Risks to New Zealand from regional and global insecurity. The main Outcome that DPMC works to achieve is: Good government, with effective public service support. The DPMC Contributing Outcome that closely relates to the NZDF is: The management of domestic and external security and other risks is well planned, informed and co-ordinated. NZDF Main Outcome: New Zealand secure and protected from external threats now and in the future. NZDF Intermediate Outcome 2: Reduced Risks to NZ from regional and global insecurity. NZDF Intermediate Outcome 3: New Zealand values and interests advanced through participation in regional and international security systems. MFAT Main Outcome: New Zealand s voice is heard abroad and our security and prosperity interests are advanced and protected. Summary of Relationship and NZDF Contribution DPMC serves the Executive (the Prime Minister, the Governor-General, and the Cabinet) through the provision of high quality impartial advice and support services which make government decision-making, including decisions on defence-related matters, easier at both strategic and operational levels. While Defence has an obvious relationship with the External Assessments Bureau (EAB) of DPMC, the more important relationship is through the Domestic and External Security Group (DESG). The DESG coordinates central government activities aimed at protecting New Zealand s domestic and external security, including intelligence, counter-terrorism preparedness, emergency/crisis management and defence operations. DESG also provides advice and support to the Officials Committee for Domestic and External Security Coordination (ODESC) - of which the NZDF (CDF) and the MoD (Sec Def) are members. Inter alia, DESG also convenes inter- departmental watch groups, including defence representation, that are set up to monitor major issues and to oversee inter-agency action. The NZDF enjoys a close working relationship with MFAT. This relationship ranges from shared decision-making / advice to government on a wide variety of topics, including New Zealand s participation in overseas military / UN and other multi-national missions, to participation in an equally wide range of regional and global fora. The ultimate objective is to advance New Zealand s interests, which includes working toward reducing risks to New Zealand. The core collaborative relationship that MFAT has with the NZDF revolves around: The bilateral and regional defence relationships and security cooperation initiatives that are developed. For the NZDF this involves such matters as the Five Power Defence Arrangements (FPDA) and the Mutual Assistance Programme (MAP), actual operations such as NZDF and NZ Police assistance in the Solomon Islands, and the relationships that our Defence Attaches/Defence Advisors have with other Armed Forces. It also involves NZDF participation in a range of military and non-military overseas fora as listed elsewhere in this SOI. 51 NZDF 2007 Statement of Intent

52 Other Departments/ Agencies Shared Outcome/s Summary of Relationship and NZDF Contribution (MFAT continued) MFAT Intermediate Outcome 1: Reduced Risks to New Zealand from global and regional insecurity. MFAT Intermediate Outcome 5: Protection of the Rights of New Zealanders abroad. Supporting New Zealand citizens caught up in emergency situations overseas. For the NZDF this may involve, on the decision of Cabinet, the deployment of NZDF force elements to evacuate New Zealand citizens and possibly others from emergency situations (military and non-military) overseas. NZ Police Ministry of Fisheries (M Fish) NZDF Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. The related New Zealand Police Outcomes: Increase National Security and Confident, Safe and Secure Communities. NZDF Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. NZDF Intermediate Outcome 2: Reduced Risks to New Zealand from regional and global insecurity. The NZDF enjoys a special working relationship with the New Zealand Police. In all cases in New Zealand, except CBRE/IEDD, the NZ Police is the lead department; the NZDF is in support. NZDF contribution includes, as required, the provision of personnel and equipment for: Counter-Terrorist Operations (and training for same). Search and Rescue (land, sea and air); this in concert with the MNZ/RCCNZ (see below). IEDD/CB Response CBD and national coverage. Special Police Operations supported by the NZDF (involving sea days and air flying hours). Other one-off assistance to the New Zealand Police in New Zealand and the Pacific, as required. The NZDF and NZ Police are also working side by side in restoring or maintaining law and order in several Pacific Island nations. The NZDF and the Ministry of Fisheries have had a long-standing relationship revolving around the NZ EEZ and the protection of our fisheries. Using its aerial and surface surveillance capabilities, the NZDF has a responsibility for the surveillance of the NZ EEZ. The Ministry of Fisheries and NZDF share information on offshore fishing operations to ensure that surveillance efforts are directed at the areas of highest risk and that fisheriesrelated surveillance capacity is efficiently used. 52 NZDF 2007 Statement of Intent

53 Other Departments/ Agencies Shared Outcome/s Summary of Relationship and NZDF Contribution (M Fish continued) Ministry of Fisheries Main Outcome: The value New Zealanders obtain through the sustainable use of fisheries resources and protection of the aquatic environment is maximised. New Zealand Customs Service Maritime New Zealand [Formerly Maritime Safety Authority (MSA) of New Zealand]. [And by association, links with the RCCNZ, the SAR Council of NZ, the SAR Consultative Committee, CAA and NZ Police]. NZDF Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. NZDF Intermediate Outcome 2: Reduced Risks to New Zealand from regional and global insecurity. New Zealand Customs Service Outcome: The domestic and international communities have confidence in New Zealand s border security and the security of New Zealand s trade and travel channels. NZDF Intermediate Outcome 1: Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. The Maritime New Zealand vision, as part of the wider New Zealand Transport Strategy, is: A maritime environment with minimal deaths, accidents, incidents and pollution as part of an integrated and sustainable; transport system. The NZDF s support to the Ministry of Fisheries under the NZDF s Multi- Agency Operations and Tasks (MAO&T) will take on increased significance as the new Offshore and Inshore Patrol Vessels (OPVs and IPVs) of the Navy (under Project PROTECTOR), are introduced into service. In addition, the long-range maritime patrol aircraft (P3-K Orion) contribute to the NZDF/Ministry of Fisheries working relationship. The bulk of the Ministry of Fisheries tasking requirements of the NZDF are coordinated through the National Maritime Coordination Centre (NMCC) located at HQ JFNZ, Trentham. The NZ Customs Service has a major role in ensuring that domestic and international communities have confidence in NZ border security and the security of New Zealand s trade and travel channels. As well as protecting NZ from harm, border security protects the country s international reputation. Customs manages security and community risks associated with the flows of people, goods and craft into and out of NZ. The NZDF, Navy and Air Force in particular, support the role of the NZ Customs Service, the flows of people, goods and craft in particular, by the provision of planned surveillance of NZ s air and sea borders. This role, under the NZDF MAO&T, will take on increased significance as the new Offshore and Inshore Patrol Vessels (OPVs and IPVs) of the Navy (under Project PROTECTOR) and possibly short-range maritime patrol aircraft (in the future) are introduced into service. Maritime New Zealand is a Crown Entity that has maritime safety as a core objective. Roles most closely related to the NZDF include development of maritime safety rules, management and coordination of national and international search and rescue, promotion of and education in maritime safety, and maintenance of the NZ marine oil spill response strategy and national contingency plan. The NZDF is required to assist Maritime New Zealand, on request, with search and rescue operations. Normally, it is the P3-K Orion aircraft or helicopters of the RNZAF and/or RNZN vessels and helicopters that will be involved in such assistance. These defence assets will also report pollution and oil spills in the 53 NZDF 2007 Statement of Intent

54 Other Departments/ Agencies (Maritime New Zealand continued) New Zealand Security Intelligence Service (NZSIS) Shared Outcome/s Note: On 5 July 2004 the Rescue Coordination Centre New Zealand (RCCNZ) took over responsibility for Class III SAR activity in New Zealand s SAR Region. The new Centre is managed by Maritime New Zealand under a MOU with the CAA. The first responsibility of government in a democracy is the security of its country and citizens. That security cannot be taken for granted, and most nations around the world have some form of arrangement in place to warn about threats which could endanger or harm their people. The NZSIS gathers information related to New Zealand s security, assesses its significance and advises the Government accordingly. NZDF Intermediate Outcome 1: Secure NZ, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. Summary of Relationship and NZDF Contribution course of their normal routine military training activities. They will also support measures, coordinated by Maritime New Zealand, to enhance New Zealand s maritime security. The NZ Army and the RNZAF are also frequently involved in SAR on land. The NZDF is represented on the Search and Rescue Council of NZ by a senior officer from HQ JFNZ. That Council provides high-level strategic governance to all SAR agencies in NZ. The Council is supported by a Secretariat and a SAR Consultative Committee. The SAR Consultative Committee serves as a link between the Secretariat and SAR providers. The NZDF is represented on this committee. The NZSIS is one of a small group of intelligence agencies, each with its own responsibilities, which make up New Zealand's intelligence and security community. All of the agencies in that community work towards achieving the national security policies of the New Zealand Government. These policies aim to: protect and promote New Zealand's defence, foreign policy, and national economic interests, protect New Zealanders and their property, detect and prevent serious overseas-based crime which could affect this country, and protect against threats from terrorism and espionage. The NZSIS makes its contributions to the above in accordance with the NZSIS Act. The NZDF contributes to the work of the NZ SIS by providing information that its own intelligence sources, indeed any elements within the NZDF, may acquire; albeit, the major flow of information is from the NZSIS to the NZDF and other relevant government departments/agencies. The NZDF maintains a permanent representative within the Combined Threat Assessment Group which is hosted by the NZ SIS. It is relevant to note that the NZDF is the largest customer of the NZ SIS in terms of personnel security vetting procedures. 54 NZDF 2007 Statement of Intent

55 Other Departments/ Agencies Government Communications Security Bureau (GCSB) Department of Internal Affairs - Ministry of Civil Defence and Emergency Management Shared Outcome/s NZDF Main Outcome: New Zealand secure and protected from external threats now and in the future. NZDF Intermediate Outcome 1: Secure NZ, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. GCSB Intermediate Outcome 1.2: New Zealanders and New Zealand interests (including critical infrastructure) are better protected from external threats and risks through the provision of timely alerts and threat warnings. GCSB Intermediate Outcome 2.2: New Zealand s security and well being is enhanced through protection against information-borne threats. NZDF Intermediate Outcome 1: Secure NZ, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. The Department of Internal Affairs / Ministry of Civil Defence and Emergency Management Outcome that most closely relates to the NZDF is: Safer Communities. Summary of Relationship and NZDF Contribution The NZDF s long-standing working relationship with GCSB is similar to that that the NZDF has with the NZ SIS; involving, as it does, the intelligence and security community. Each of New Zealand s intelligence and security agencies within that community has its own distinct responsibilities. However they all work towards achieving the national security policies of the New Zealand Government. The NZDF / GCSB relationship involves the sharing of information and intelligence, as appropriate. This can best be summed up by GCSB s description of its single output expense: Advising and assisting government departments and agencies on matters related to the security and integrity of classified or sensitive information processed, communicated or stored by electronic means, and information to meet the national intelligence requirements of the New Zealand Government. The NZDF and the Ministry of Civil Defence and Emergency Management have always had a close working relationship on civil defence matters. The NZDF maintains representation and/or liaison at local, regional and national civil defence levels, including on the Officials Working Group for Domestic and External Security Coordination (ODESC). NZDF resources (manpower and equipment, including vehicles and helicopters) will be made available, if available at the time, to support declared local, regional or national civil defence emergencies. In addition, NZDF personnel and assets are made available from time to time to participate in civil defence training exercises. The types of assistance offered by the NZDF were evident and well publicised during the civil defence emergencies of major flooding in the Manawatu and Bay of Plenty in 2004 and the snow falls in Canterbury in June NZDF 2007 Statement of Intent

56 Other Departments/ Agencies Department of Conservation (DOC) Shared Outcome/s NZDF Intermediate Outcome 1: Secure NZ, including its people, land, territorial waters, EEZ, natural resources and critical infrastructure. DOC Outcome - Protection: New Zealand s natural and historic heritage entrusted to DOC is protected and restored. Summary of Relationship and NZDF Contribution DOC administers most of the Crown land in New Zealand protected for scenic, scientific, historic or cultural reasons, or set aside for recreation. This is almost a third of New Zealand s land area, including national, forest and maritime parks, marine reserves, nearly 4,000 reserves, river margins, some coastline and many offshore islands. The NZDF has been a regular contributor to many facets of DOC s work. While the Navy has a particular relationship with DOC in terms of conducting surveillance and enforcement tasks in island areas and providing resupply of stores and equipment to remote islands, the Army and Air Force are regularly requested to assist in supporting DOC tasks. 56 NZDF 2007 Statement of Intent

57 RISK MANAGEMENT IN THE NZDF Risk management is at the core of good management. It is about identifying what could stop the NZDF achieving its objectives and acting to reduce the likelihood of the event(s) as well as mitigating the impact if the event(s) does occur. PURPOSE The purpose of risk management in the NZDF is to contribute to the achievement of several entity wide objectives: Alignment of strategic intent and related objectives. Good, informed strategic and operational decision-making. Efficient and effective operations. Reliable financial and non financial reporting. Compliance with internal procedures and external laws and regulations. Safeguarding of assets. INTEGRATED RISK MANAGEMENT Risk management is at the hub of the NZDF s corporate governance framework. The NZDF Risk Management Framework (RMF) is being enhanced to integrate seamlessly with the other corporate management systems, such as strategic planning and the Defence Performance Management System (DPMS). POLICY The NZDF s risk management policy and risk management principles are detailed in Defence Force Order (DFO) 81, Risk Management. The Risk Management Policy is supported by a set of Risk Management Principles to govern what is acceptable and expected of all NZDF personnel with regards to risk management. CURRENT SITUATION The last twelve months has seen an enhancement in the NZDF s risk management culture and understanding. This has been achieved through a number of initiatives, such as the development of the NZDF Strategic Plan, enhanced corporate reporting systems, Executive Leadership Team articulation of risk appetite, and the implementation of an in-house risk management training course for middle level commanders and managers. The NZDF intends to conduct a further risk management gap analysis in 2007 to determine how far the organisation has progressed in its roll out of its risk management policies, principles and culture. 57 NZDF 2007 Statement of Intent

58 RISKS TO NZDF STRATEGIC OBJECTIVES The NZDF is exposed to a wide range of risks to the successful achievement of its objectives. These risks arise within and external to the organisation. Some of the more significant risks to the NZDF, over the next few years, within each of the NZDF s Strategic Perspectives are as follows: Strategic Perspective: Our Stakeholders The NZDF may be unable to raise a Force Element to the Operational Level of Capability (OLOC) due to the ongoing high operational tempo - leading to an inability of the NZDF to effectively meet a request from the Government for further operational activity. Purchased outputs may not be fully provided to the Government as a result of insufficient appropriate human and physical resources - leading to the inability of the NZDF to contribute effectively to wider Government initiatives. Strategic Perspective - Enabling Processes NZDF information systems may not get the right information to the right people in a timely and efficient manner. The systems may act as an impediment to information access, and a disincentive to collaboration. Strategic Perspective - Learning and Growth Development of the NZDF s military capability may be slower than planned as a result of a lack of flexibility in exploiting the potential of new technologies. Predicted demographic changes may impact on the quantity and quality of the NZDF s traditional recruit pool. Strategic Perspective: Resources Ongoing operational requirements may remain significantly higher than the base level upon which capability was to be built resulting in capability development not proceeding in accordance with capability plans. RISK MITIGATION Capability development may not proceed in accordance with capability plans due to an unexpected increase in the rate of military inflation and/or exchange rates. Known risks to the strategic and operational objectives are mitigated by the existing control environment. Where controls are ineffective, or do not exist (for example in relation to emerging risks), appropriate treatment activity is either in progress or is under development. NZDF SUSTAINABLE BUSINESS PRACTICE The NZDF has recently approved a draft policy approach to improve environmentally sustainable business practice within the NZDF. This plan recognises Government policy and the commitment made by the NZDF to the Govt 3 programme. The Govt 3 programme has four focus areas: Sustainable Buildings, Vehicles and Travel, Office Consumables and Equipment and Waste Recycling and Minimisation. The NZDF will now develop priorities within these four focus areas. NZDF 2007 Statement of Intent 58

59 SECTION 2: THE PLANNING CONTEXT OVERVIEW Going into the future, the NZDF needs to be united, professionally trained, competent at what it does, appropriately equipped, and capable of serving the interests of New Zealand, whenever and wherever that may be. Robust planning for the future, near-term and long-term, within many unknowns, needs to be an essential hallmark of the NZDF s business as usual. Under the umbrella of the Defence Planning Framework (DPF) the NZDF has developed and maintains planning systems to support the achievement of Defence Outcomes and the delivery of NZDF Outputs, and to remain effective and efficient in administration. The DPF also includes processes for strategic and operational planning, resources and financial planning, performance evaluation and a range of corporate information and management systems. The DPF, when fully implemented, will provide the overarching framework that will align all planning with defence policy, corporate goals and strategies. Components of the DPF include: the NZDF Strategic Plan (covered earlier), the NZDF Strategic Operating Concept (including Joint Vision and Strategic trends Assessment), the Capability Management Framework (CMF) - described below, the Strategic Human Resource Framework (SHRF), the Knowledge Management Framework (KMF), the Risk Management Framework (RMF), the Defence Performance Management Framework (DPMF), the Financial Management Framework FMF), the Operational Preparedness and reporting System (OPRES), and Annual Plans (NZDF, the Services and Headquarters Joint Forces). As stated by the Minister of Defence in his foreword to the NZDF Strategic Plan : It is essential that the NZDF has the correct management and evaluative tools to enable robust resource management and decision-making into the future. The requirement to be able to continually review and prioritise projects, programmes and scarce resources within the NZDF is vital. The NZDF Strategic Plan as part of the wider architecture of the Defence Planning Framework (DPF), together with the tools that underpin it, sets the NZDF in the right direction to efficiently manage its resources. The introduction of the NZDF Balanced Score Card as part of the NZDF strategic planning process, together with enhanced performance management processes, will enable the NZDF to track the implementation of its strategy. This section of the Statement of Intent summarises the relevant mechanisms used in capability planning and the development of levels of operational capability of NZDF force elements. 59 NZDF 2007 Statement of Intent

60 CAPABILITY MANAGEMENT FRAMEWORK The CMF is a governance and management system that provides a transparent and robust process for ensuring effective, long-term investments in defence capabilities. The CMF is the means through which Government defence policy is translated into military capabilities that are able to meet the Government s security objectives. The challenge of the capability management process is to find the best balance between current and future capability investment. The CMF describes the practices and procedures for the development and delivery of defence capability. It articulates practices and procedures that have been operating since mid A major review of the CMF was conducted in 2006 and the CMF s scope was widened. For example, it introduces new processes such as the Strategic Capability Planning Process (SCPP) that, while not predicting the future, is structured to shape an organisation that will thrive in a future that cannot be predicted. The CMF strategy focuses on identification of all the functional components of the proposed capability and on the quality of the information required in major defence capability projects (new and upgraded), including cost estimates, operational assessments and whole-of-life management. Strategic capability objectives will be derived from CMF processes. Internal CMF processes include: a continuously updated Strategic Trends Assessment (STA) that identifies the major global, regional and local trends most likely to impact New Zealand and the NZDF over the next twenty years; the NZDF Strategic Operating Concept (SOC) that describes new ways the NZDF will need to operate in the future; a Capability Requirements List that describes what functions the NZDF can and may need to perform to meet Government policy requirements; the use of evidence-based decision support tools throughout the CMF process; criteria for Capability Requirement Proposals, including the development of comprehensive operational requirements data and functional performance specifications; a regularly updated Long-Term (LTDP) that manages capability development across the 0 to 10 year period, supplemented by the Long-Range Capability Forecast (LRFC) that looks out beyond 10 years; and a variety of capability-related plans including acquisition strategies, training programmes, through-life capability management, and disposal. The CMF provides clarity in responsibility, accountability and process for defence policy development, capability definition, acquisition, introduction into service and disposal of capabilities. The CMF process facilitates the development of a wellinformed, cost-effective and professional Defence Force that embraces continuous improvement and management excellence. The implementation of the CMF will enable the NZDF to develop fully mission-capable units and supporting components at degrees of preparedness that are matched to New Zealand s defence policy objectives. NZDF 2007 Statement of Intent 60

61 EMPLOYMENT CONTEXTS Strategic guidance provides information on the circumstances in which the Government may choose to use military forces. The CMF uses this guidance to develop geographically grouped Employment Contexts. Employment Contexts are descriptions of representative and illustrative security events for which there is a likelihood that a New Zealand Government would expect to make a military response should they occur. Employment Contexts are selected through assessment of New Zealand s geo-strategic situation and international security trends. The Employment Contexts are chosen on the basis of their likelihood of occurrence in the near and longer terms and the consequences for New Zealand s Defence Outcomes if the NZDF was unable to provide an appropriate response. Employment Contexts include high level Operational Concepts which, in turn, drive single Services and joint Mission Essential Tasks (METs), that is, those tasks that the deployed forces must be able to perform. The METs drive the priorities for the single Services and joint annual training activities and which determine the output parameters that need to be delivered in order to meet the Government s requirements. The Employment Contexts also designate the anticipated time (known as the Response Time) available for the final preparation of force elements for their operational deployment; this affects the level of capability that must be maintained on an annual basis. Concepts for operations and Contingency Plans (CONPLANS) can then be developed for relevant Employment Contexts. Current Employment Context Operational Concepts list the most likely force elements that would be involved in each security event. These force element lists are a guide only and are not exhaustive; each security event may require the addition or deletion of some force elements. Employment Contexts provide the detail that ensures the NZDF output quality dimension is consistent with defence policy. The Employment Contexts (ECs), which are covered in more detail in the NZDF Output Plan, are as follows: EC 1 - Security Challenges to New Zealand and its environs: EC 1A - Civil Disturbances/Industrial Actions affecting essential services. EC 1B - Disasters posing a serious threat to life, property or the environment. EC 1C - Incursions into and through New Zealand s Economic Zone and other areas within New Zealand s jurisdiction that threaten New Zealand s interests. EC 1D - Terrorism and Acts of Sabotage. EC 1E - Asymmetric attacks on New Zealand territory (such as information warfare attacks and mining of New Zealand ports). EC 2 - Security Challenges to New Zealand s Interests in the South Pacific: EC 2A - Disasters posing significant risks to life, property or the environment. EC 2B - Illegal incursions into South Pacific Island EEZs and territories. EC 2C - Civil Disturbances leading to breakdown in law and order, and/or posing risks to New Zealand nationals. EC 2D - Terrorist Acts. EC 2E- -Challenges to legitimate governments, including civil war and secessionist conflict. 61 NZDF 2007 Statement of Intent

62 EC 3 - Security Challenges to the Australia-New Zealand Strategic Area: EC 3A - Short warning attacks against maritime approaches and terminuses and land incursions on Australian territory. EC 3B - Serious attacks on the physical security of the New Zealand- Australia Strategic area from a broader regional conflict. EC 3C - Asymmetric attacks. EC 3D - Major conventional conflict (such as an invasion of Australia). EC 4 - Security Challenges to New Zealand s Interests in the Asia-Pacific Region: EC 4A -Disasters posing significant risks to life or the environment. EC 4B - Acts of piracy. EC 4C - Impeded rights of passage through contested sea-lanes. EC 4D - Significant internal unrest or insurgency that spills to other states and/or poses risks to New Zealand nationals. EC 4E - Aggression to affect maritime boundaries or seize/expropriate resources. EC 4F - Inter-state conflict. EC 5 - Security Challenges to New Zealand s Interests in Global peace and security: EC 5A - Unresolved conflict where protagonists have sought third party resolution assistance. EC 5B - Act(s) by states or non-states actors that contravene international norms of behaviour or threaten international security or stability. EC 5C - Impeding supplies of essential resources (such as oil, water, electricity) to force political concessions or threaten the security of a nation or group of nations. EC 5D - Significant internal conflict with risks to the stability of surrounding states or involving large-scale suffering. EC 5E - Aggression to affect maritime or land boundaries or seize/expropriate resources. C 5F - Major breakdown in international security leading to wide-scale war. MILITARY CAPABILITY Military Capability is the power to achieve a desired operational effect in a selected environment and to sustain that effect for a designated period. It is the combined effect that systems of inputs have in helping to achieve a particular operational consequence. Military capability goes beyond just equipment. Rather it includes all necessary components that, together, enable a military capability to achieve an operational effect. The elements that make up military capability are preparedness, and the components described by the acronym PRICIE as follows: Personnel (all personnel elements of the capability including personnel sustainment and individual training). NZDF 2007 Statement of Intent 62

63 Research and Development. Infrastructure/organisation/structures, all major infrastructural works projects. Concept of operations/doctrine/ collective training. Information/technology. Equipment and Logistics. Military Capability comprises an amalgam of PRICIE and preparedness. PRICIE encompasses the quantitative dimension of NZDF Outputs, and preparedness is the qualitative dimension. While PRICIE comprises many components, as shown above, for simplicity of reporting the NZDF will focus on two major quantitative elements, Personnel and Equipment. Together, these are termed force structure. The relationship between force structure and preparedness is shown in the following diagram: Relationship: Force Structure and Preparedness FORCE STRUCTURE (Output Quantity) PREPAREDNESS (Output Quality) Personnel Readiness Combat Viability Equipment Deployability Sustainability PREPAREDNESS The ability of the NZDF output expense force elements to be employed on military tasks is a function of the preparedness state in which they are held. That is, force elements must be held at a level of capability from which they can be raised to an operational status within a specified time, then deployed for the conduct of a particular type of military task and be sustained for a specified period while engaged in that task. Within the NZDF there are four ingredients of preparedness - Readiness; Combat Viability; Deployability; and Sustainability. These are defined as follows: Readiness. Readiness is the current proficiency and effectiveness of a force to conduct a range of activities defined against a Directed Level of Capability and Employment Context, and that provide options for employment on military tasks 63 NZDF 2007 Statement of Intent

64 within a specified Response Time. The force readiness comprises personnel, trained state (individual and unit), equipment held, and equipment condition (serviceability), and includes tactical command, control, communications and intelligence. Combat Viability. Combat Viability is the in-theatre ability of a force to achieve its military task or mission using current resources. It incorporates the following: - the ability of service personnel to engage in combat with due regard to morale, leadership, and a sense of mission; - the sufficiency of equipment and its design/technology standards to provide firepower, protection to personnel and other battlefield attributes to the level required by the threat; - the adequacy of military doctrine and tactics to make effective use of personnel and equipment; - the standard of collective or combined training; - the ability of the force to achieve the level and duration of fighting to achieve its objectives; and - the effectiveness of standardisation when working with friendly forces. Deployability. Deployability is the capacity of a force element to move to an Operational Level of Capability, complete final preparations, and assemble for deployment within a specified time. Effected deployability includes the completion of OLOC generation training, preparation of deployment equipment and munitions, and positioning personnel and equipment for embarkation by air or sea. Sustainability. Sustainability is the ability to support a designated force at operating tempo throughout the duration of an operation. It includes the availability of replacement personnel, equipment maintenance, sufficiency of second and third line stocks, and the lift capacity to carry them into theatre and to those force elements requiring them. LEVEL OF CAPABILITY Using the Employment Contexts it is possible to establish the Operational Level of Capability (OLOC) that a force element needs to have reached in order to carry out its military tasks effectively. For a force element to be at its OLOC for a particular Employment Context means that it has the requisite preparedness state, i.e., the force element is ready, combat viable, deployable and sustainable. The OLOC requirements for all NZDF force elements are detailed within Schedule 4 of the NZDF Output Plan. A force element can be held at differing levels of capability. The quantitative dimension, i.e. force structure, cannot be varied on an annual basis given the longterm nature of defence investment decisions. However, the qualitative dimension can be varied by dictating the preparedness at which the force element is held, and may differ for particular Employment Contexts. To hold a unit at OLOC on a routine basis is expensive and demanding on equipment readiness and personnel availability. Accordingly, in defining the Employment Contexts and determining the likely tasks to be performed by a particular force element, it is possible to derive the likely time that the force element will have before it must be deployed and start operations once committed by Government. This time, known as the Response Time, can be used to raise the level of capability of the force element from some lower level to OLOC. Response Time gives the force time to: NZDF 2007 Statement of Intent 64

65 assemble and concentrate its personnel, stores and equipment; undergo additional individual and collective training; and carry out specific planning for operations. That is, time to make it available for deployment to a particular area of operations. Response Times will vary depending on the plausible setting (Employment Context) in which the force element may be used. For example, the Response Time for the Counter-Terrorist forces is very short, meaning that they must be immediately available for such military tasks, while the Response Time for force element contributions to a battalion group is longer and their day-to-day readiness can be designated accordingly. The longer the Response Time a force element has, the lower the level of capability, up to a point, that the force element has to maintain on a routine basis. Response Times for individual force elements for likely contingencies are detailed in Schedule 4 to the NZDF Output Plan. Once the actions required to generate OLOC within Response Time are known, it is possible to derive the level of capability that must be held by the force element on a routine basis, and this is known as the Directed Level of Capability (DLOC). It is this level of capability that the NZDF is funded to maintain during the financial year in order to provide the Government with options for the commitment of military forces. In purchasing this level of capability the Government retains in the NZDF the essential minimum capacity from which operationally effective force elements may be generated within agreed Response Times. When a force element is activated to perform a military task, additional funding may be required to enable that force element to transition from DLOC to OLOC (i.e., to resource the additional training and stores usage) for the deployment and for the sustainment of the activated force element for the expected duration of the operation. In exceptional circumstances (for example for personnel, technical, or financial reasons), the CDF may grant approval, for a specified period, for a force element to maintain a lower level of capability than would otherwise be desirable. The lowest level of capability is Basic Level of Capability (BLOC). This is the minimum level at which military capabilities have to be held if they are not to be lost. At this level a force element could not reach an OLOC in less than six months, so will not generally be available for military tasks. As a result of equipment modernisation action, commissioning or decommissioning, a force element may not be able to achieve a level of capability. In this case it is classified as at No Level of Capability (NLOC) and would not be expected to be available for military tasks. The quantitative dimension of outputs, i.e. Manpower and Equipment, represent fixed costs in the short term and thus cannot provide a sensitive mechanism for varying the amount and cost of the NZDF s annual product. However, as a general statement the outputs qualitative dimensions, i.e. its preparedness state can be varied in the short term. For example, these can be adjusted on an annual basis by increasing or decreasing the amount of readiness training activities undertaken by a force element which will vary the consumption rate of items such as fuel and munitions used during such training. However, there is a minimum level of readiness training activities that need to be undertaken on an annual basis to keep units viable. Varying the training activities has a direct impact on the DLOC of a force element, i.e., if training activities are reduced, then the DLOC is reduced and the force element would: not be able to generate OLOC in the specified Response Time; or, 65 NZDF 2007 Statement of Intent

66 require the Response Time to be increased to allow for the extra activities that would need to be undertaken to generate OLOC. In summary to the above, the qualitative dimensions of NZDF outputs offers the potential to vary in the short term (i.e. on an annual basis) the cost of what the NZDF can be tasked to produce. However, there are consequences to making such choices as any extension to Response Time, for example, has an increased activation cost in that more activities have to be undertaken to raise the force element from DLOC to OLOC, and there is a risk that force elements may not be available in time to provide military options to Government. PROVIDING GOVERNMENT WITH CHOICE IN NZDF OUTPUTS The output specifications in the NZDF Output Plan (Schedules 3 and 4 refer), and as contained in this Statement of Intent, provide indicative force element employment options to provide choice to the Government when considering the commitment of NZDF elements to operations. These options relate mainly to the size (quantity) of force elements or parts thereof, and the Response Time, for applicable Employment Contexts. For example, in terms of contributing infantry elements to operations under the Land Combat Forces (Output Expense 7), the Government has the choice of selecting a sub-element, such as an infantry platoon, for low-level tasks at short notice, or larger elements, such as a company group (motorised or non-motorised) for higherlevel tasks at longer notice. While these employment options provide a basis for planning, training and assessment of the NZDF, the requirements of actual operational deployments will vary from these standard options. Every operational deployment is different and will require a different mix of factors based on the known requirements at the time. Before forces are committed to operations the NZDF will conduct operation-specific planning in order to provide the government with more detailed advice on employment options, costs and risks. The major factors that will affect government decisions include: Variation between the Employment Context planning assumptions and the actual operational situation, such as: - National/Political imperatives Foreign Relations policy - Geographic Location. - Threat level/s. - Military tasks to be performed. - Rate of effort required. - Friendly Forces / Support. - Geography / Demography / Local Infrastructure / Host Nation Support, etc. Size of deployed forces. Time available to raise force elements/the force to OLOC and to provide taskspecific enhancements and training. Duration of operational commitment (total length of deployment). Level of additional funding required. [Can it be funded from within the Multi-Year Appropriation (MYA) provided for Output Expense 16 or will additional funding be required? Some reprioritisation of funding within the NZDF may be required]. Concurrency requirements considerations for both deployed and non-deployed forces. This includes the ability to deliver essential military capability in the New Zealand/South Pacific area (such as for tasks under EC 1) while the force is NZDF 2007 Statement of Intent 66

67 deployed, and the need, based on total length of deployment, for raising replacement and rotation forces to OLOC before deployment. The Government, in considering possible commitment to operations, may well need to apply trade-offs between the factors listed above. For example, multiple-force elements are often reliant on the same pool of personnel and equipment for sustainment and rotation purposes; this therefore reduces the length of concurrent deployments that can be sustained. The total length of deployment poses one of the greater risks for government when considering commitment to operations. Essentially, for the comparatively small forces that the NZDF has, the greater the size of the force to be deployed and the longer the deployment, especially for deployments in excess of 12 months, the greater the risk in the ability of the NZDF being able to sustain that force - in terms of personnel rotations and logistic support. Deployments of greater than 12 months also carry the risks of other DLOC Mission Essential Tasks being eroded if they are not required on the deployment. The NZDF commitment to East Timor ( ) provides for a good example in this regard. To reduce the risks the following major decision options were made: Army, in all but the initial deployment, used members of the Territorial Force to round out the Regular Force sub-units. Five of the battalion groups deployed contained at least 10% Territorial Force personnel. Army used artillery force elements in the infantry role. This could not have been achieved if the threat level had required the deployment of artillery elements in their primary role or simply for protection of the force. The RNZAF, in line with UN requirements, was able to reduce the number of helicopters deployed from six to four, with a corresponding reduction in crews required, and rotated crews on a three-months basis. The Government has recognised (and funded) the need for regeneration to DLOC of the battalion groups, post-deployment to Timor Leste The mix of factors that go into the government s and the NZDF s decision making on options for deployment on operations is complex. It is therefore not realistic to expect the NZDF to detail in this Statement of Intent a detailed matrix of options for every conceivable situation that might lead to the government requiring a military response. However, in the detailed strategic and operational planning that is conducted for likely operational commitments to known situations, the government will be presented with the options. The options presented will detail the known military risks. In general, these risks will revolve around the level of threat (physical and environmental), the length of deployment and the associated ability of the NZDF to sustain the operations in terms of personnel (rotations) and logistic support, and the ability of the NZDF to perform essential concurrent operations in New Zealand and the South Pacific. 67 NZDF 2007 Statement of Intent

68 SECTION 3: THE DELIVERY OF NZDF OUTPUTS This section provides information on the NZDF generic performance objectives, NZDF output specifications, current operational missions, Multi-Agency Operations and Tasks (MAO&T), and general support and assistance to the community. GENERIC SERVICE PERFORMANCE OBJECTIVES OF NZDF OUTPUTS Output Expense 1 The performance objective of Output Expense 1 is to provide effective advice on military contributions to New Zealand s foreign policy and military responses to contingencies, including military intelligence, to the satisfaction of the Minister and in accordance with the Cabinet Guidelines for purchasing policy advice. It also includes responses on behalf of the Minister to Ministerial and Parliamentary Questions, Official Information Act Inquiries and Ombudsmen correspondence. It also includes assisting the Ministry of Defence in providing defence policy advice to the Government. Output Expenses 2 to 5 and 7 to 14 The performance objective of Output Expenses 2 to 5, 7 to 14 and the military hydrography component of Output Expense 6 is to demonstrate that the force elements concerned (Navy, Army and Air Force force elements) are at the Directed Level of Capability (DLOC) for the relevant Employment Contexts and can respond within the specified Response Time (RT) to provide options to the Government for the employment of military forces to meet contingencies. These performance criteria are agreed with the Minister of Defence and are specified in the Output Expense tables within this Statement of Intent and in Schedule 4 to the annual NZDF Output Plan. Output Expense 6 (Hydrographic Contract with LINZ) The performance objective for that component of Output Expense 6 relating to the hydrographic contract with Land Information New Zealand (LINZ) is to provide the hydrographic survey vessel, specialist personnel and support infrastructure to conduct hydrographic data collection and processing which meets the contractual commitments to LINZ. Performance will be assessed by LINZ for the contracted hydrographic programme. Standards are also monitored by the wider maritime community against international standards. Output Expense 15 The performance objectives for Output Expense 15 are to provide training and/or infrastructure, as applicable, to achieve: an agreed level of training and assistance to standards agreed with the governments (and armed forces) of Mutual Assistance Programme (MAP) countries; an agreed level of staff and training support to meet the objectives of the New Zealand Cadet Forces (NZCF); a training programme for Limited Service Volunteers (LSVs) to meet the standards agreed with the Ministry of Social Development (MSD); and NZDF 2007 Statement of Intent 68

69 Service Military Museums (Navy, Army and Air Force) that ensure the preservation and accessibility of New Zealand s significant military history. Performance will be assessed from the results achieved and an evaluation of reports from the organisations being supported. Output Expense 16 The performance objective of Output Expense 16 (Operationally Deployed Forces) is to provide specific forces at the Operational Level of Capability (OLOC) for military tasks. The Government will approve the composition of the forces and the military tasks on which they are to be employed. Prior to deployment the designated Operational Commander will assess performance. During deployed operations, performance will be assessed by the evaluation of reports from coalition/force commanders and reports from the responsible contingent operational commanders for each operation. On occasions the Chief of Defence Force, Vice Chief of Defence Force, Service Chiefs and COMJFNZ, and other senior personnel acting on their behalf, will inspect deployed New Zealand forces to allow them to evaluate performance in an operational environment. IMPACT OF OPERATIONAL DEPLOYMENTS, UPGRADES AND INTRODUCTION OF NEW EQUIPMENTS INTO SERVICE ON OUTPUT EXPENSES/OUTPUTS: CONCURRENCY The NZDF Output Expense Output Specification tables, for Output Expenses 2 to 14, inclusive, within this Statement of Intent detail the full capacity of the force elements to undertake tasks against designated Employment Contexts. If the force elements, or parts thereof, of any Output Expense are actually deployed on operations the ability of the NZDF to deploy similar force elements, concurrently, to another operation may be significantly reduced. For example, while the NZDF had a battalion group committed to operations in East Timor, another battalion group could not have been concurrently deployed elsewhere. The limited range of capabilities and the limited quantity of force elements maintained by the NZDF means that there may be only limited capacity to deploy like force elements concurrently. From the start of FY 2007/2008 (1 July 2007) significant elements of the NZ Army will continue to be in restoration mode - given the recent and current high operational tempo of overseas deployments (Afghanistan, Timor Leste and Solomon Islands). While these elements will remain available for further deployment, there are inherent risks. The withdrawal of the P-3K Orion and C-130 Hercules aircraft on a rolling programme for upgrading in 2007/08 and beyond, and the modifications to the B aircraft, will automatically reduce the full capacity of the force elements that these aircraft belong to. While the minimum number of aircraft required by the Output Plan for OLOC may be available, the reduced capacity will have an effect on the duration of any operational deployment and the ability to rotate any such deployment. Until such time as the new Multi-Role Vessel (MRV), the Offshore Patrol Vessels (OPVs) and the Inshore Patrol Vessels (IPVs) are fully introduced into service with the Navy, Output Expenses 3 (Naval Support forces) and 5 (Naval Patrol Forces) will not be at full capacity. 69 NZDF 2007 Statement of Intent

70 In addition to the foregoing, elements of the following Output Expenses will be involved in operational deployments at the start of FY 2007/2008. These deployments will obviously limit the ability of the NZDF to generate like force elements for concurrent operational deployments elsewhere: Output Expenses 7 to 9 (inclusive): Army elements (a Company Group) deployed in support of Operation Enduring Freedom, the New Zealand Provincial Reconstruction Team, Bamyan Province, Afghanistan. Army elements (a Company Group) deployed in support of the Australian Defence Force-led operations (Combined Joint Task Force 631) in Timor Leste. Army elements (Platoon Group) deployed in support of operations in the Solomon Islands. Output Expense 13. Air Force elements - from time to time, C-130 Hercules aircraft support, including resupply, to current deployed forces. Output Expense 14. Air Force elements - detachment of Iroquois helicopters (up to three helicopters and crews) in support of operations in Timor Leste. Possibly other force elements currently under consideration. SERVICES IN SUPPORT OF OTHER GOVERNMENT DEPARTMENTS/ AGENCIES AND THE COMMUNITY Conducting the training activities needed to maintain DLOC for operational employment also produces within the NZDF the capacity to deliver a range of services in support of other government departments/agencies, the community and foreign and defence policy objectives. The range of services, including emergency tasks, is a byproduct of the capabilities developed and maintained for military purposes. The NZDF elements available for emergency tasks and a list of indicative support services/tasks are detailed at pages of this Statement of Intent. Minor adjustments to the number of community support tasks will result in only minor changes to the cost of output delivery. This is because the fixed costs will be unchanged and it will be only the variable costs which are adjusted. However, if the level of community support is increased significantly as a result of a policy decision by the Government, then a much larger increase in output costs could be expected and additional funding may be required. Standard Performance Measurement Table To reduce the number of repetitive statements on performance measurement within the tables that follow, a standard performance measurement specification, used as the basis for the presentation of all operational force element outputs, is provided as the first table of the NZDF Outputs. The table details the key measurement areas used in the performance assessment process. The Standard Performance Measurement Table should be read in conjunction with the operational force element output tables. NZDF 2007 Statement of Intent 70

71 Method of Calculating the Asset Value of Output Expenses When calculating the Asset Value of each NZDF Output Expense (within the tables that follow), the depreciable replacement value of fixed assets and gross inventories of each NZDF Cost Centre were uploaded into the Defence Costing System (DCS) model to calculate Total Asset Value. The Asset Value recorded in the tables for each Output Expense is greater than the net Book Value and recognises the investment required to maintain existing capabilities for the long term. Output Expense/Output Scope and Descriptions For consistency with the Scope statements for each NZDF Output Expense within the Estimates of Appropriations (Vote Defence Force) it is understood that the Description statements of the NZDF Output Expenses/Outputs (in all cases) in the following tables are qualified by the limitation or scope in accordance with the NZDF Output Plan specifications. 71 NZDF 2007 Statement of Intent

72 NZDF 2007 Statement of Intent 72

73 STANDARD PERFORMANCE MEASUREMENT TABLE FOR OPERATIONAL FORCE OUTPUTS Description This table sets out the standard layout used in the presentation of Performance Measurement within the operational force output tables. Performance Measurement Measurement Measurement Areas Measures Remarks 1 Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). MoD Evaluation Division. a. Conduct output evaluation to confirm output specification is consistent with defence policy and to examine whether the output is being delivered in the quantity and quality that meets policy objectives. (1) Policy validation from: current strategic guidance, existing defence policy, and Service documentation relevant to the Force Element. (a) Applicable to operational force element outputs only. The NZDF. NZDF Inspector General. a. Evaluate military capability through the NZDF Operational Preparedness Reporting System (OPRES). b. Output delivery is evaluated in both quantity (force structure) and quality (preparedness) terms with the emphasis being on the quality dimension. c. Monitor and evaluate the results of OPRES; provide an independent audit function of OPRES. d. Conduct a programme of evaluations of force elements. (a) The OPRES reporting regime includes Biannual Operational Preparedness Reports and Special Reports on a change of preparedness state. (b) Where appropriate and practicable, operational evaluation will be conducted by external agencies; by Allied Forces, for example, (c) Operational Commanders also draw on a range of routine inspections and other activities. The standards to be achieved are detailed in the applicable Directive or Instruction but generally, a 90% or better achievement rate is expected. 73 NZDF 2007 Statement of Intent

74 Measurement Measurement Areas Measures Remarks e. The quality dimension is assessed against the Force Element s preparedness to perform in four Key Measurement Areas (KMAs): Readiness Combat Viability Deployability Sustainability [See page 63/64 for definitions of these terms] (1) The objective for each Force Element is to achieve a P1 assessment (fully prepared at the required level of capability) in each of the four KMAs used to measure preparedness. (2) Each Force or Force Element is to be assessed against: Readiness having completed the required individual and unit training to bring it to a state where it can complete final preparation within the designated response times for applicable Employment Contexts. Combat Viability the in-theatre ability to achieve its military tasks for Employment Contexts using current resources. Combat Viability includes effective standardisation when working with friendly forces. Deployability - capable of reaching OLOC (OLOC generation) and completing final preparation for appropriate Employment Contexts - thereby becoming available for deployment. (a) The three Services have separate but similar Key Performance Indicators (KPIs). Indicative KPIs and Performance Measures used to quantify performance in achieving preparedness relative to DLOC are summarised in the KPI table at Part C; details are contained in the NZDF OPRES Directive. (a) This requires each Force or Force Element to conduct a programme of readiness training against Mission Essential Tasks for applicable Employment Contexts in accordance with single Service Directives and Training Instructions. (a) Applicable Employment Contexts (ECs) are all or some of ECs 1-5. (See pages for a description of ECs). (b) Assessed with reference to Collective Proficiency and Equipment Condition in accordance with the appropriate Operational Readiness Criteria Statement. (a) ECs as detailed above. (b) This requires extra readiness training and stores in accordance with the appropriate Operational Readiness Criteria Statement. [Additional funding may also be required.] 74 NZDF 2007 Statement of Intent

75 Measurement Measurement Areas Measures Remarks Sustainability - with personnel and resources available for the sustainment/rotation of deployed elements for a given period of operations. (a) In accordance with the appropriate Operational Readiness Criteria Statement. The Services and Headquarters Joint Force New Zealand (HQ JFNZ). a. Component Commanders (Navy, Army and Air Force) and relevant HQ JFNZ staff: Evaluate military capability through visits, Post Activity Report analysis, and exercise and readiness reporting systems. b. Services Inspector Generals: Monitor and evaluate the results of OPRES and provide a specialist audit function for OPRES. Conduct a programme of evaluations of force elements. (For Navy this function is conducted by the Maritime Operational Evaluation Team (MOET). (1) As above. (a) As above. (b) The relevant staff at HQ JFNZ will focus on the joint aspects of OPRES. Audit New Zealand. a. The role of the Office of the Controller and Auditor General (Audit New Zealand) is to audit the NZDF s Statement of Service Performance and to express an independent opinion as to whether it fairly reflects the NZDF s service performance achievements in relation to performance targets set out in the NZDF Statement Of Intent for the year. (1) In accordance with the auditing standards of the Auditor-General of New Zealand. 75 NZDF 2007 Statement of Intent

76 OUTPUT EXPENSE 1: MILITARY POLICY DEVELOPMENT, COORDINATION AND ADVICE New Zealand Defence Force Chief of Defence Force (CDF) Vice Chief of Defence Force (VCDF) Lieutenant General J. Mateparae, ONZM Air Vice-Marshal D.A. Bamfield, ONZM Chief of Navy (CN) Chief of Army (CA) Chief of Air Force (CAF) Commander Joint Forces NZ (COMJFNZ) Rear Admiral D.I. Ledson, ONZM Major General L.J. Gardiner, ONZM Air Vice-Marshal G.B. Lintott Rear Admiral J.R. Steer, ONZM 76 NZDF 2007 Statement of Intent

77 VOTE DEFENCE FORCE OUTPUT EXPENSE 1: MILITARY POLICY DEVELOPMENT, COORDINATION AND ADVICE Description Advice to the Minister of Defence, by the Chief of Defence Force and single Service Chiefs, on military contributions to New Zealand s foreign policy and military responses to contingencies. Also included are responses on behalf of the Minister to Ministerial and Parliamentary questions, Official Information Act inquiries and Ombudsmen correspondence. Quantity and Quality Output Expense Components Military Advice 1. Provide military advice to the Minister of Defence on: New Zealand s defence interests (including intelligence); military options for safeguarding and advancing New Zealand s security interests; military options available for contributions to collective and regional security; and advice on the military capabilities required to meet the Governments defence policy objectives and to support its defence strategy. 2. The NZDF will also assist the Ministry of Defence in the provision of advice to the Minister on: procurement of major military equipment; and defence policy development. Quantity Specifications a. The number of occasions that the Minister will seek advice, or the CDF feels the need to offer it, will depend on a range of external and internal factors beyond the control of the NZDF. b. The anticipated range of key written submissions includes the following: Statutory Reports to Parliament 2 Submissions to Cabinet (including with the Ministry of Defence) Reports and Briefing Papers to Minister Ministerial Correspondence ( Ministerials ) Parliamentary Questions (*) Select Committee Reports 5-10 Select Committee (FADT and F&E) Questions (**) Oral Briefs Numerous Notes: * Parliamentary Questions include Questions for Written Answer and Questions for Oral Answer. ** The Select Committee Questions from the Foreign Affairs, Defence and Trade and Finance and Expenditure Committees relate mainly to the Defence Force Estimates of Appropriations and the NZDF Annual Report. Quality Specifications (1) All reports and oral advice will be delivered within the agreed or statutory time frame. 95% of replies to Ministerials will be provided within 20 days of receipt of request. 95% of replies to Parliamentary Questions for Written Answer will be provided by due date. 95% of replies to Parliamentary Questions for Oral Answer will be provided by midday on the day that the reply is due in the House. (2) The aim of the advice will be clearly stated and it will answer the questions set. (3) The assumptions behind the advice will be explicit and the argument logical and supported by the facts. (4) The facts provided will be accurate and all material facts will be included. (5) An adequate range of options will be presented and the benefits, costs and consequences of each option to the Government will be assessed. (6) Other Government agencies and affected parties will be consulted and possible objections to proposals will be identified. 77 NZDF 2007 Statement of Intent

78 Output Expense Components Military Advice Quantity Specifications c. Intelligence products will include an Annual Strategic Assessment, Quarterly Strategic Intelligence Survey, routine Intelligence Estimates and Summaries and regular briefings. Military Intelligence Notes, Indications and Warning Notices, and special briefings will be provided as necessary when new situations develop. In addition, the NZDF seconds intelligence personnel to various Government agencies. Quality Specifications (7) The problems of implementation, technical feasibility, timing and consistency with other policies will have been considered. (8) The format will meet Cabinet Office requirements; the material will be effectively, concisely and clearly presented and will be free of spelling or grammatical errors. (9) Replies within 20 days of receipt of request, if not otherwise specified. (10) Intelligence documents will follow agreed international formats. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation Means a. Output performance will be measured by the degree of satisfaction expressed by the Minister, or by the appropriate committee or agency. (1) The supply of individual products of high quality as defined by the seven characteristics of quality advice: Purpose, Logic, Accuracy, Options, Consultation, Practicality and Presentation. (2) The aim is the provision of a comprehensive service: the capacity to react urgently; the regular evaluation of military policy for effectiveness in achieving required outcomes and timely briefings on significant issues; and support for the Minister as required in Cabinet Committees, Select Committees and in the House. (a) 95% of the first drafts of all policy papers accepted by the Minister. (b) 90% of all other responses accepted without substantive amendment. 78 NZDF 2007 Statement of Intent

79 Cost Cost Components $million Remarks 4. Cost of Expense 1. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 1 OUTPUT 1.1: COLLECTION, COLLATION, AND DISSEMINATION OF MILITARY INTELLIGENCE Description The collection, collation and dissemination of military intelligence on areas of interest to New Zealand and as specified in the NZDF Intelligence Plan. Expense - $5.713 million OUTPUT 1.2: DEVELOPMENT AND PRODUCTION OF MILITARY POLICY Description The development and production of military policy and the provision of military advice to the Minister of Defence. Expense - $2.945 million OUTPUT 1.3: OPERATIONAL MILITARY POLICY ADVICE Description The provision of advice on operational military policy to the Minister of Defence. Expense - $1.070 million 79 NZDF 2007 Statement of Intent

80 OUTPUT 1.4: MINISTERIAL CORRESPONDENCE AND PARLIAMENTARY QUESTIONS Description Draft responses to Ministerial Correspondence, to requests under the Official Information Act and to Parliamentary and other questions on behalf of the Minister, including Ombudsmen correspondence. Expense - $1.662 million 80 NZDF 2007 Statement of Intent

81 OUTPUT EXPENSE 2: NAVAL COMBAT FORCES (ANZAC Class Frigate - HMNZS TE KAHA) (ANZAC Class Frigate - HMNZS TE MANA) 81 NZDF 2007 Statement of Intent

82 OUTPUT EXPENSE 2: NAVAL COMBAT FORCES Description The provision of HMNZ Ships TE KAHA and TE MANA prepared to conduct maritime operations. This expense also includes contributions to a range of services to Government and the community. Quantity and Quality Output Expense Components Naval Combat Forces 1. Provide Naval Combat Forces prepared for the conduct of maritime operations under Employment Contexts 1, 2, 3, 4, and 5. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Two frigates, each with embarked Seasprite helicopter, as required, available for military tasks. One frigate to be available for regional or collective security tasks, and the second frigate to be available to deal with low-level security challenges in New Zealand or South Pacific waters. [Note: the Offshore Patrol Vessels (OPVs) will assume the latter role once accepted into service]. b. Crews at manning levels as specified by RNZN Personnel States. c. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database. d. Planned sea-days are: HMNZS TE KAHA will be mission available for 220 days, of which 140 to 160 days will be at sea. HMNZS TE MANA will be mission available for 214 days, of which 140 to 160 days will be at sea. Note: Details on the Seasprite helicopters are recorded under Output Expense 11: Naval Helicopter Forces. Quality Specifications (1) Readiness: Frigates that meet the DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Frigates carry out a range of training activities in accordance with the NZDF EAS and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective interoperability when working with friendly forces. (3) Deployability: Frigates capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Stores and provisions embarked to allow tasking. Material state satisfactory to permit tasking. Personnel state satisfactory to permit tasking. 82 NZDF 2007 Statement of Intent

83 Output Expense Components Naval Combat Forces 2. Contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications a. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period. Fuel, stores and provisions available to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Navy and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) Maritime Component Commander (MCC) ship and exercise visits. (2) Maritime Operational Evaluation Team (MOET) evaluations. (3) Measures as outlined in the Standard Performance Measurement Table, OPRES, Navy KPIs and relevant Naval publications. (4) Where practicable operational evaluation will be conducted by external agencies, e.g. RAN. (5) Relevant Naval publications / systems include: NZBR 99-RNZN Operational Sea Training Instructions. MONICAR (Fleet Readiness Measurement System). 83 NZDF 2007 Statement of Intent

84 Measurement Measurement Areas Measures Configuration master database. Standard Operating Procedures. Warrant of Armament Stores. RNZN Master Personnel Establishments. Personnel States. Cost Cost Components $million Remarks 4. Cost of Output Expense 2. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) , Notes: 1. Deployment Impact: Consecutive deployments of the Naval Combat Force elements for six months are likely to have an adverse impact on training. 84 NZDF 2007 Statement of Intent

85 OUTPUT EXPENSE 3: NAVAL SUPPORT FORCES [Replenishment Ship - HMNZS ENDEAVOUR] [Multi-Role Vessel / Amphibious Sealift Ship - HMNZS CANTERBURY] 85 NZDF 2007 Statement of Intent

86 OUTPUT EXPENSE 3: NAVAL SUPPORT FORCES Description The provision of the Fleet Replenishment Ship (HMNZS ENDEAVOUR) and the Multi-Role Vessel (HMNZS CANTERBURY) prepared to conduct maritime logistic support and amphibious sealift operations for deployed military forces, and contributions by the Naval Support Forces to a range of services provided to Government and the community. Quantity and Quality Output Expense Components Naval Support Forces 1. Provide a Replenishment Ship and a Multi-Role Vessel prepared for the conduct of maritime logistic support and amphibious sealift operations under Employment Contexts 1, 2, 3, 4, and 5. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. HMNZS ENDEAVOUR and HMNZS CANTERBURY, with embarked Seasprite helicopter/s as required, available for military tasks. (It is expected that the complete amphibious sealift capability of HMNZS CANTERBURY will not be realised until FY 2008/09). b. Crews at manning levels as specified by RNZN Personnel States. c. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database. d. HMNZS ENDEAVOUR will be mission available for 183 days, of which 100 to 120 days will be at sea. e. HMNZS CANTERBURY will be mission available for 295 days, of which 140 to 160 days will be at sea. Notes: (1) The Multi-Role Vessel (MRV) is due for delivery in May (2) HMNZS CANTERBURY is also capable of embarking four NH- 90 helicopters (to be acquired by the NZDF in the future). Quality Specifications (1) Readiness: Replenishment Ship and MRV that meet DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Ships carry out a range of training activities in accordance with the NZDF EAS and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective interoperability when working with friendly forces. (3) Deployability: Replenishment Ship and MRV capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Stores and provisions embarked to allow tasking. Material state satisfactory to permit tasking. Personnel state satisfactory to permit tasking. 86 NZDF 2007 Statement of Intent

87 Output Expense Components Naval Support Forces 2. Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications a. The Naval Support Forces, the Multi-Role Vessel in particular, may be involved in MAO&T. b. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period. Fuel, stores and provisions available to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Navy and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) Maritime Component Commander (MCC) ship and exercise visits. (2) Maritime Operational Evaluation Team (MOET) evaluations. (3) Measures as outlined in the Standard Performance Measurement Table, OPRES, Navy KPIs and relevant Naval publications. (4) Where practicable, operational evaluation will be conducted by external agencies, e.g. RAN. 87 NZDF 2007 Statement of Intent

88 Measurement Measurement Areas Measures (5) Relevant Naval publications / systems include: NZBR 99-RNZN Operational Sea Training Instructions. MONICAR (Fleet Readiness Measurement System). Configuration master database. Standard Operating Procedures. Warrant of Armament Stores. RNZN Master Personnel Establishments. Personnel States. Cost Cost Components $million Remarks 4. Cost of Output Expense 3: a. GST exclusive. Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

89 Outputs in Output Expense 3 OUTPUT 3.1: REPLENISHMENT FORCE Description The provision of the Fleet Replenishment Ship (HMNZS ENDEAVOUR) prepared to conduct maritime operations including logistic support for deployed military forces. This output also includes contributions by the Replenishment Forces to some community services when not committed to operations. Expense - $ million OUTPUT 3.2: AMPHIBIOUS SEALIFT FORCE Description The provision of a Multi-Role Vessel, HMNZS CANTERBURY, prepared to conduct amphibious sealift operations in support of deploying and/or deployed military forces. This output also includes contributions by the Multi-Role Vessel to some community services when not committed to operations. Expense - $ million 89 NZDF 2007 Statement of Intent

90 OUTPUT EXPENSE 4: MINE COUNTERMEASURES (MCM) AND MCM DIVING FORCES [MCM / Diving Support Vessel - HMNZS MANAWANUI] [Navy Divers - Operational Diving Team] 90 NZDF 2007 Statement of Intent

91 OUTPUT EXPENSE 4: MINE COUNTERMEASURES (MCM) AND MCM DIVING FORCES Description The provision of the MCM Support Vessel (HMNZS MANAWANUI) prepared to conduct MCM operations, the provision of an Operational Diving Team prepared to support MCM operations and to conduct independent diving tasks, and the provision of some support services to the community when appropriate. Quantity and Quality Output Expense Components MCM and MCM Diving Forces 1. Provide MCM and Diving Forces for the conduct of mine countermeasures operations (Q route surveys and conditioning) under Employment Contexts 1 and 2, and further prepared to support MCM and independent diving tasks under Employment Contexts 3 to 5. (For details on Employment Contexts see pages 61-63). Note: Any RNZN IEDD support for emergency national response tasks is covered under Output Notwithstanding Output 10.3, the RNZN, via Output 4.2, requires and maintains its own integral EOD / IEDD capability of 2 x Teams. Quantity Specifications a. MCM Support Vessel (HMNZS MANAWANUI), and Operational Diving Team available for military tasks. When HMNZS MANAWANUI is deployed outside of New Zealand waters, HMNZS KAHU will undertake the tasks of the MCM Support Vessel on the New Zealand station. b. Crews at manning levels as specified by RNZN Personnel States. c. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database. d. HMNZS MANAWANUI will be mission available for 223 days, of which 130 to 150 days will be at sea. e. HMNZS KAHU will be mission available for 245 days, of which 130 to 150 days will be at sea. f. The Diving Team will spend approximately 360 hours (target range hours) on operational dive training and MCM readiness training in diving techniques for the disposal of mines and other explosive devices. (The diving hours refer to actual time in the water). Quality Specifications (1) Readiness: MCM Support Vessel and Operational Diving Team that meet specified DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. MCM Support Vessel and Operational Diving Team carry and out a range of training activities in accordance with the NZDF EAS and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective interoperability when working with friendly forces. (3) Deployability: Ships and Diving Teams capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Stores and provisions embarked to allow tasking. Material state satisfactory to permit tasking. Personnel state satisfactory to permit tasking. 91 NZDF 2007 Statement of Intent

92 Output Expense Components MCM and MCM Diving Forces 2. Contribute to a range of services, including MAO&T, in support of other government departments, and the community. Quantity Specifications a. While MAO&T is delivered by other assets some support to other governments departments and the community may be possible within this output expense. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period. Fuel, stores and provisions available to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Navy and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for evaluation responsibilities. (1) Maritime Component Commander (MCC) ship and exercise visits. (2) Maritime Operational Evaluation Team (MOET) evaluations. (3) As outlined in the Standard Performance Measurement Table, OPRES, Navy KPIs and relevant Naval publications. (4) Where practicable operational evaluation will be conducted by external agencies. (5) Relevant Naval publications / systems include: NZBR 99-RNZN Operational Sea Training Instructions. MONICAR (Fleet Readiness Measurement System). Configuration master database. 92 NZDF 2007 Statement of Intent

93 Measurement Measurement Areas Measures Standard Operating Procedures. Warrant of Armament Stores. RNZN Master Personnel Establishments. Personnel States. Cost Cost Components $million Remarks 4. Cost of Output Expense 4. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 4 OUTPUT 4.1: MINE COUNTERMEASURE (MCM) FORCES Description The provision of the MCM Support Vessel prepared to conduct MCM operations and Diving Support. This output also includes contributions to some community services when not committed to operations. Expense - $ million OUTPUT 4.2: MCM DIVING FORCES Description The provision of the Operational Diving Team, including two integral EOD / IEDD Teams, prepared to classify and clear surveyed Q-Routes, and to conduct independent diving tasks - such as clearance diving. This output also includes contributions by Navy Divers to some community services. [Note: Shortages of personnel mean that the second Diving Team (including its integral EOD / IEDD Team) will not be provided until about 2008]. Expense - $ million 93 NZDF 2007 Statement of Intent

94 OUTPUT EXPENSE 5: NAVAL PATROL FORCES [At the Launch of New Zealand s first Offshore Patrol Vessel (OPV), [The first Inshore Patrol Vessel (IPV), HMNZS ROTOITI, HMNZS OTAGO, in Melbourne on 18 November 2006] superstructure being fitted to hull on 12 December 2006] 94 NZDF 2007 Statement of Intent

95 OUTPUT EXPENSE 5: NAVAL PATROL FORCES Description The provision of Offshore and Inshore Patrol Vessels (OPVs and IPVs) capable of conducting maritime operations and operations in support of MAO&T for the security and protection of New Zealand s economic border and Exclusive Economic Zone (EEZ). The OPVs will also be prepared to conduct sovereignty and resource protection patrol operations in the Southern Ocean, Ross Dependency, South Pacific region, and further afield when directed. Quantity and Quality Output Expense Components Naval Patrol Forces 1. Provide Offshore and Inshore Patrol Vessels prepared to conduct maritime operations (predominantly MAO&T) under Employment Contexts 1 to 3, as applicable to type of vessel. (For details on Employment Contexts see pages 61-63). Note: Subject to availability and the Government s requirements, tasking of these vessels may take place in other EC areas. Quantity Specifications a. The OPVs, HMNZ Ships OTAGO and WELLINGTON, with embarked Seasprite helicopter as required, available for military tasks and MAO&T. b. The IPVs, HMNZ Ships ROTOITI, HAWEA, PUKAKI and TAUPO, available for military tasks and MOA&T. c. OPV and IPV Crew at manning levels as specified by RNZN Personnel States. d. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database. e. For 2007/08 the OPVs will be mission available for / days at sea as follows (based on last available delivery dates): OTAGO mission available for 178 days of which 80 to 100 days will be at sea. WELLINGTON mission available for 17 days of which 10 to 20 days will be at sea. f. For 2007/08 the IPVs will be mission available for / days at sea as follows (based on last available delivery dates): ROTOITI mission available for 184 days of which 140 to 160 days will be at sea. HAWEA mission available for 168 days of which 80 to 100 days will be at sea. PUKAKI mission available for 83 days of which 35 to 55 days will be at sea. Quality Specifications (1) Readiness: Patrol Vessels that meet the OLOC criteria for MAO&T and the DLOC readiness criteria for other EC tasking, as required, in accordance with Schedule 4 to the NZDF Output Plan. Patrol Vessels that carry out a range of training activities in accordance with the NZDF EAS and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective interoperability when working with friendly forces. (3) Deployability: Patrol Vessels capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Stores and provisions embarked to allow tasking. Material state satisfactory to permit tasking. Personnel state satisfactory to permit tasking. 95 NZDF 2007 Statement of Intent

96 Output Expense Components Naval Patrol Forces 2. Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments and the community. Quantity Specifications TAUPO mission available for 39 days of which 15 to 35 days will be at sea. Notes: (1) OPV delivery dates are expected to be: HMNZS OTAGO, November HMNZS WELLINGTON, May/June (2) IPV delivery dates are expected to be: HMNZS ROTOITI, September HMNZS HAWEA, December HMNZS PUKAKI, March HMNZS TAUPO, June (3) The current Inshore Patrol Craft (IPC), HMNZ Ships MOA, KIWI, WAKAKURA and HINAU, will be phased out and disposed of. a. The Naval Patrol Forces will provide the bulk of the Navy s contribution to MAO&T. b. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Munitions available, as specified in the Warrant of Armament Stores, to maintain OLOC for designated operational viability period. Fuel, stores and provisions available to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. 96 NZDF 2007 Statement of Intent

97 Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Navy and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for evaluation responsibilities. (1) Maritime Component Commander (MCC) ship and exercise visits. (2) Maritime Operational Evaluation Team (MOET) evaluations. (3) As outlined in the Standard Performance Measurement Table, OPRES, Navy KPIs and relevant Naval publications. (4) Where practicable operational evaluation will be conducted by external agencies. (5) Relevant Naval publications / systems include: NZBR 99-RNZN Operational Sea Training Instructions. MONICAR (Fleet Readiness Measurement System). Configuration master database. Standard Operating Procedures. Warrant of Armament Stores. RNZN Master Personnel Establishments. Personnel States. Cost Cost Components $million Remarks 4. Cost of Output Expense 5. (1) GST exclusive. Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) (2) Costs reflect the estimated time that each vessel will be in service during FY 2007/ NZDF 2007 Statement of Intent

98 Outputs in Output Expense 5 OUTPUT 5.1: OFFSHORE PATROL FORCES. Description The provision of OPVs prepared to conduct maritime operations, predominantly MAO&T. This output also includes contributions to some community services when not committed to operations. Expense - $ million OUTPUT 5.2: INSHORE PATROL FORCES. Description The provision of IPVs prepared to conduct maritime operations, predominantly MAO&T). This output also includes contributions to some community services when not committed to operations. Expense - $ million 98 NZDF 2007 Statement of Intent

99 OUTPUT EXPENSE 6: MILITARY HYDROGRAPHY, AND HYDROGRAPHIC DATA COLLECTION AND PROCESSING FOR LINZ (Hydrographic and Oceanographic Survey Ship - HMNZS RESOLUTION) (Survey Motor Boat - ADVENTURE) 99 NZDF 2007 Statement of Intent

100 OUTPUT EXPENSE 6: MILITARY HYDROGRAPHY, AND HYDROGRAPHIC DATA COLLECTION AND PROCESSING FOR LINZ Description The provision of HMNZS RESOLUTION, specialist personnel and support infrastructure to conduct military hydrography and hydrographic data collection and processing which meets contractual commitments to Land Information New Zealand (LINZ). Quantity and Quality Output Expense Components Hydrographic Data Processing 1. Provide Hydrographic Forces prepared for the conduct of military hydrography support to amphibious forces under Employment Contexts 1 to 5, and hydrographic data collection and processing in accordance with contractual arrangements with LINZ. (For details on Employment Contexts see pages 61-63). Note: The ability for HMNZS RESOLUTION and the Deployable Hydrographic Support Unit (DHSU) to leverage opportunities to help achieve the OS20/20 Vision and also provide Output Expense 4 products (predominantly Q route surveys) will continue to be explored, commensurate with primary output expense (Output Expense 6) tasking. Quantity Specifications a. HMNZS RESOLUTION available to conduct military hydrography, and hydrographic tasks for LINZ under contract. b. The DHSU available to conduct military hydrography either independently or in support of other NZDF force elements. c. The Hydrographic Business Unit available to support the collection and processing programmes. d. Crew at manning levels as specified by RNZN Personnel States. e. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database. f. HMNZS RESOLUTION will be mission available for 275 days during which 2,975 survey miles and 40 sea days will be on hydrographic tasks as contracted by LINZ. A further 14 sea days will be spent on military hydrography tasks. g. During sea time under contract to LINZ the hydrographic vessel will maintain sea operational efficiency in accordance with the NZBR 99, RNZN Operational Sea Training Instructions. Quality Specifications (1) Readiness: Hydrographic Vessel that meets the DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Hydrographic Vessel that carries out a range of training activities in accordance with the NZDF EAS and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Personnel that meet the collective training standards, experience levels, individual experience and competency requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective interoperability when working with friendly forces. (3) Deployability: Hydrographic Vessel capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Stores and provisions embarked to allow tasking. Material state satisfactory to permit tasking. Personnel state satisfactory to permit tasking. 100 NZDF 2007 Statement of Intent

101 Output Expense Components Hydrographic Data Processing 2. Contribute to a range of services in support of the government and the community when not committed to primary operations. Quantity Specifications a. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Munitions available, as specified in the Warrant of Armament Stores to maintain OLOC for designated operational viability period. Fuel, stores and provisions available to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Navy and HQ JFNZ. Audit New Zealand. Office of the Auditor General (specifically in relation to the contract with LINZ). a. See Standard Performance Measurement Table for areas of responsibility. b. Contract Standards. The emphasis is on meeting the contract requirements for hydrographic survey to the satisfaction of the requesting organisation and the delivery of hydrographic data that meets international standards. Contract measures include: Quality feedback from recipients (LINZ). Completion of the contracted hydrographic programme for LINZ. Products will be subjected to continual evaluation by the maritime community. The provision of Hydrographic data through completion of contracted and other programmes. Delivery within budget. (1) Maritime Component Commander (MCC) ship and exercise visits. (2) Maritime Operational Evaluation Team (MOET) evaluations. (3) As outlined in the Standard Performance Measurement Table, OPRES, Navy KPIs and relevant Naval publications. (4) Where practicable operational evaluation will be conducted by external agencies. (5) Relevant Naval publications / systems include: NZBR 99-RNZN Operational Sea Training Instructions. MONICAR (Fleet Readiness Measurement System). Configuration master database. Standard Operating Procedures. Warrant of Armament Stores. RNZN Master Personnel Establishments. Personnel States. 101 NZDF 2007 Statement of Intent

102 Cost Cost Components $million Remarks 4. Cost of Output Expense 6. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 6 OUTPUT 6.1: MILITARY HYDROGRAPHY Description The provision of HMNZS RESOLUTION to conduct military hydrography. Expense - $9.148 million OUTPUT 6.2: HYDROGRAPHIC DATA COLLECTION AND PROCESSING FOR LINZ Description The provision of HMNZS RESOLUTION, specialist personnel and support infrastructure to conduct hydrographic data collection and processing which meets contractual commitments to Land Information New Zealand (LINZ). Expense - $5.988 million Deployment Impact: This Output Expense is being run at a level sufficient to meet commercial (LINZ) and operational requirements thus allowing the allocation of some personnel for Output Expense 16 operations. 102 NZDF 2007 Statement of Intent

103 OUTPUT EXPENSE 7: LAND COMBAT FORCES New Zealand Defence Force [New Zealand Light Armoured Vehicle (NZ LAV)] [Observation Post) [Urban Patrol Training] 103 NZDF 2007 Statement of Intent

104 OUTPUT EXPENSE 7: LAND COMBAT FORCES Description The provision of land combat force elements (command, control and intelligence, and manoeuvre elements) prepared for the conduct of land operations. This expense also includes contributions to a range of services to the Government and the community. Quantity and Quality Output Expense Components Land Combat Forces 1. Provide land combat forces (command, control and intelligence, and infantry and reconnaissance force elements) prepared for the conduct of land operations under Employment Contexts 1, 2, 3, 4 & 5, as applicable. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Army, drawing on HQ 2 LFG, HQ 3 LFG, 1 RNZIR, 2/1 RNZIR, QAMR Sqn and 1 NZ MI Coy, and with supplementation from the TF Battalion Groups, as required, will provide the initial and rotation land combat force elements to constitute: A Company Group (motorised or non-motorised) for tasks under ECs 1 and 2. Up to an Infantry Battalion Group (motorised or nonmotorised) for tasks under ECs 2-5 (inclusive). Sub-unit elements as options for independent contribution to a combined force. (See notes below). An appropriate headquarters (including intelligence and communications support) for command and control of a deployed force. b. Army will also provide an appropriate Brigade-level headquarters and the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training. The framework for a Brigade Group requires supplementation by TF Battalion Groups. c. Elements contributing to the above forces available at manning levels as specified in Army Tables of Organisation and Equipment (TOE). Notes: Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS). Quality Specifications (1) Readiness: Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan: DLOC for Company and Battalion Group. BLOC for Brigade Group framework units (TF Battalion Groups). Land Combat Forces carry out a range of training activities in accordance with the NZDF MAS, Army Mission Essential Task Lists (METLs), and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises. (2) Combat Viability: Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. (3) Deployability: Force elements capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Munitions, stores and equipment available for OLOC generation, as specified in unit TOE / CONPLANS. 104 NZDF 2007 Statement of Intent

105 Output Expense Components Land Combat Forces Quantity Specifications Notwithstanding the requirement for the Land Combat Forces to be available to constitute a Company Group and a Battalion Group, smaller sub unit elements, as options for contribution to a combined force, are maintained. Quality Specifications (4) Sustainability: Munitions, expendable and technical stores available, as specified in CONPLANS to maintain OLOC for designated operational viability period. Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan. 2. Contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. a. See section on Services in Support of the Government and the Community commencing at page 151. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Army and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) Measures as outlined in the Standard Performance Measurement Table, OPRES, Army KPIs, APMS and relevant Army publications. (2) Where appropriate and practicable, operational evaluation will be conducted by external agencies, that is - allied forces. 105 NZDF 2007 Statement of Intent

106 Cost Cost Components $million Remarks 4. Cost of Output Expense 7. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) , Outputs in Output Expense 7 OUTPUT 7.1: COMMAND, CONTROL AND INTELLIGENCE Description The provision of a deployable headquarters prepared to provide operational command, control and intelligence for deployed land forces. It also includes the requirement to provide elements to the framework of a brigade group for simulation and Command Post Exercise-based combined-arms training. This output also provides command of contributions, as required, to a range of services provided to the Government and the community. Expense - $ million. OUTPUT 7.2: MANOEUVRE ELEMENTS Description The provision of manoeuvre elements (infantry and reconnaissance) prepared for the conduct of land operations. It includes the provision of these elements for a force of up to battalion group size (motorised or non-motorised). It also includes the requirement to provide infantry and reconnaissance elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. Deployment Impact: If a battalion group was deployed under Output Expense 16 the Army s need to focus its efforts to support that group would affect DLOC training activities. Deployments under Output Expense 16 which have a high component of Land Combat Forces personnel can accumulatively create a shortfall in training and support staff in New Zealand. 106 NZDF 2007 Statement of Intent

107 OUTPUT EXPENSE 8: LAND COMBAT SUPPORT FORCES New Zealand Defence Force (105mm Light Gun) (Army Engineers constructing a Bailey Bridge) (Communications are vital) 107 NZDF 2007 Statement of Intent

108 OUTPUT EXPENSE 8: LAND COMBAT SUPPORT FORCES Description The provision of land combat support force elements (artillery, engineers, communications and military police) prepared for the conduct of land operations. This expense also includes contributions to a range of services to the Government and the community. Quantity and Quality Output Expense Components Land Combat Support Forces 1. Provide land combat support force elements (artillery, engineers, communications, including strategic communications, and military police) for the support of land operations under Employment Contexts 1, 2, 3, 4, & 5, as applicable. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Army, drawing on 2 LFG and 3 LFG Regular Force artillery, engineer, communications, and military police units (16 Field Regt, 2 Engineer Regt, 2 Signal Sqn, 3 Signal Sqn - including an Electronic Warfare element, and Force Military Police Company), and with supplementation from the Territorial Force, as required, will provide the initial and rotation land combat support force elements to support, as applicable: A Company Group (motorised or non-motorised) for tasks under ECs 1 and 2. Up to a Battalion Group (motorised or non-motorised) for tasks under ECs 2-5 (inclusive). Sub-unit elements as options for independent contribution to a combined force. (See notes below). b. Army will also provide artillery, engineer, communications and military police force elements to support the framework for a Brigade Group for simulation and Command Post Exercisebased combined-arms training; this will require supplementation by TF Battalion Groups. c. Land Combat Support Force elements contributing to the above forces available at manning levels as specified in Army Tables of Organisation and Equipment (TOE). Notes: Notwithstanding the requirement for the Land Combat Support Forces to be available to contribute to the Company and Battalion Groups (motorised or non-motorised), elements, as options for an independent contribution to a combined force, are maintained. Quality Specifications (1) Readiness: Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan: DLOC for units contributing to Company and Battalion Groups. BLOC for Brigade Group framework units (TF Battalion Groups). Land Combat Support Forces carry out a range of training activities in accordance with the NZDF MAS, Army Mission Essential Task Lists (METLs), and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises. (2) Combat Viability: Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. (3) Deployability: Force elements capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. 108 NZDF 2007 Statement of Intent

109 Output Expense Components Land Combat Support Forces 2. Contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS). a. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications Munitions, stores and equipment available for OLOC generation, as specified in unit TOE / CONPLANS. (4) Sustainability: Munitions, expendable and technical stores available, as specified in CONPLANS, to maintain OLOC for designated operational viability period. Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Army and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) Measures as outlined in the Standard Performance Measurement Table, OPRES, Army KPIs, APMS and relevant Army publications. (2) Where practicable operational evaluations will be conducted by external agencies, e.g. allied forces. 109 NZDF 2007 Statement of Intent

110 Cost Cost Components $million Remarks 4. Cost of Output Expense 8. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 8 OUTPUT 8.1: ARTILLERY Description The provision of artillery elements prepared for the support of land operations, coordination of joint fires including terminal guidance, and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide artillery elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. OUTPUT 8.2: ENGINEERS Description The provision of engineer elements prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide engineer elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. 110 NZDF 2007 Statement of Intent

111 OUTPUT 8.3: COMMUNICATIONS Description The provision of communications elements (including Electronic Warfare elements) prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide communications elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. Deployment Impact: The Army communications capability can be stretched when it is required to support a large number of concurrent deployments. OUTPUT 8.4: MILITARY POLICE Description The provision of military police elements prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide military police elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. 111 NZDF 2007 Statement of Intent

112 OUTPUT EXPENSE 9: LAND COMBAT SERVICE SUPPORT FORCES 112 NZDF 2007 Statement of Intent

113 OUTPUT EXPENSE 9: LAND COMBAT SERVICE SUPPORT FORCES Description The provision of land combat service support force elements (transport, medical, supply, repair and movements) prepared for the support of land operations. This output expense also includes contributions to a range of services to the Government and the community. Quantity and Quality Output Expense Components Land Combat Service Support Forces 1. Provide land combat service support force elements (transport, medical, supply, repair and movements) required for the support of land operations under Employment Contexts 1, 2, 3, 4, & 5, as applicable. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Army, drawing on 2 Logistics Battalion, 3 Logistics Battalion, 2 Health Support Battalion and Logistic Executive, as part of, respectively, 2 LFG, 3 LFG and Army General Staff, with supplementation from the TF Battalion Groups, as required, will provide the initial and rotation combat service support force elements to support, as applicable: A Company Group (motorised or non-motorised) for tasks under ECs 1 and 2. Up to a Battalion Group (motorised or non-motorised) for tasks under ECs 2-5 (inclusive). Sub-unit elements as options for independent contribution to a combined force. (See notes below). b. Army will also provide combat service support elements to support the framework for a Brigade Group for simulation and Command Post Exercise-based combined-arms training; this will require supplementation by TF Battalion Groups. c. Land Combat Service Support Force elements contributing to the above forces available at manning levels as specified in Army Tables of Organisation and Equipment (TOE). Quality Specifications (1) Readiness: Designated force elements that meet specified readiness criteria in accordance with Schedule 4 to the NZDF Output Plan: DLOC for units contributing to Company and Battalion Groups. BLOC for Brigade Group framework units (TF Battalion Groups). Land Combat Service Support Forces carry out a range of training activities in accordance with the NZDF MAS, Army Mission Essential Task Lists (METLs), and Formation and Unit Training Directives. This will include participation in Battalion Group exercises and Formation level Command Post Exercises. (2) Combat Viability: Personnel that meet the collective training standards, experience levels and qualification requirements for military tasks. Equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. 113 NZDF 2007 Statement of Intent

114 Output Expense Components Land Combat Service Support Forces 2. Contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications Notes: Notwithstanding the requirement for the Land Combat Service Support Forces to be available to contribute to the Company and Battalion Groups (motorised or non-motorised), elements, as options for an independent contribution to a combined force, are maintained. Availability of munitions will depend on inventory holdings to meet OLOC generation requirements and holdings of Contingency Reserve Stocks (CRS). a. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (3) Deployability: Force elements capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Munitions, stores and equipment available for OLOC generation, as specified in unit TOE / CONPLANS. (4) Sustainability: Munitions, expendable and technical stores available, as specified in CONPLANS, to maintain OLOC for designated operational viability period. Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with the NZDF Output Plan. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Army and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) Measures as outlined in the Standard Performance Measurement Table, OPRES, Army KPIs, APMS and relevant Army publications. (2) Where practicable operational evaluations will be conducted by external agencies, e.g. allied forces. 114 NZDF 2007 Statement of Intent

115 Cost Cost Components $million Remarks 4. Cost of Output Expense 9. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 9 OUTPUT 9.1: TRANSPORT AND MOVEMENTS Description The provision of transport elements prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide transport elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. OUTPUT 9.2: MEDICAL Description The provision of medical elements, including dental elements, prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide medical elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. Deployment Impact: The Army medical capability can be stretched when it is required to support a large number of concurrent deployments. 115 NZDF 2007 Statement of Intent

116 OUTPUT 9.3: SUPPLY Description The provision of supply elements prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide supply elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $ million. OUTPUT 9.4: REPAIR Description The provision of repair elements prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide repair elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. This output includes the provision of recovery assets. Expense - $ million. OUTPUT 9.5: MOVEMENTS Description The provision of movements elements (including strategic movements, air dispatch and terminal operations staff) prepared for the support of land operations and capable of supporting up to a battalion group sized force (motorised or non-motorised). It also includes the requirement to provide movements elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training, and the provision of some community support services. Expense - $5.996 million. 116 NZDF 2007 Statement of Intent

117 OUTPUT EXPENSE 10: SPECIAL OPERATIONS FORCES 117 NZDF 2007 Statement of Intent

118 OUTPUT EXPENSE 10: SPECIAL OPERATIONS FORCES Description The provision of Special Operations Forces, for the conduct of Special and Counter-Terrorist Operations, and the provision of a New Zealand national response for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests. These forces will not usually be available for other community support services. Quantity and Quality Output Expense Components Special Operations Forces 1. Provide Special Operations Forces prepared for: Special Operations (NZ SAS green role ) under Employment Contexts 1 to 5. Counter-Terrorist Operations (NZ SAS black role ) under Employment Context 1D. National Response for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD). (For details on Employment Contexts see pages 61-63). Note: 1. The establishment of a dedicated CBRE IEDD/EOD unit, as approved by the Government, will be set up over the next three to five years. The set up of the unit will not detract from the ability to respond to IEDD and CBRE incidents in the three Central Business Districts (CBDs) of Auckland, Wellington and Christchurch. Quantity Specifications a. Army, drawing on 1 st NZ Special Air Service (SAS) Group and Army/NZDF-wide resources, will provide: The initial and rotation elements of a SAS Sqn to conduct special operations in support of land combat operations under Employment Contexts 1-5 (inclusive), and to provide elements, as appropriate, in support of a Company and/or Battalion Group (motorised or non-motorised). A Counter-Terrorist Group to assist the NZ Police in CT operations, including Maritime CT. A CBRE IEDD/EOD organisation of squadron strength which has the ability to provide three IEDD Response Teams (one each based at Auckland, Wellington and Christchurch) and a specialist CBR Response Team to undertake emergency national IEDD/CBRE tasks. b. Army will also maintain a SAS Squadron to support the framework of a brigade group for training in New Zealand. Notes: 1. Although CBRE IEDD is a NZDF responsibility directed by Government, Army has been designated the lead Service. Navy and Air Force will provide trained manpower and specialist support to for CBRE IEDD/EOD, as required. [See CDF Directive 22/2005]. 2. Cabinet has approved the formation of an independent and separately funded organisation for the conduct of CBRE IEDD/EOD. [See CAB Min (05) 27/4 25 Jul 05]. Quality Specifications (1) Readiness: Special Forces, Counter-Terrorist (CT) Forces and CBRE IEDD Teams that meet the degrees of notice and DLOC and OLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Special Forces, CT Forces and CBRE IEDD Teams carry out a range of readiness training activities in accordance with the NZDF EAS, METLs, and Formation and Unit Training Directives to maintain DLOC and OLOC, as appropriate, in accordance with Schedule 4 to the NZDF Output Plan. (2) Combat Viability: Personnel that meet the experience levels and qualification requirements for special operations, CT tasks and CBRE IEDD tasks. Equipment performance, reliability and technology that meet required OLOC standards for commitment to special operations, CT tasks and CBRE IEDD tasks. Effective standardisation when working with friendly forces. (3) Deployability: Special Forces, CT Forces and CBRE IEDD Teams capable of deploying within specified degrees of notice /response times, as applicable, in accordance with Schedule 4 to the NZDF Output Plan. 118 NZDF 2007 Statement of Intent

119 Output Expense Components Special Operations Forces Quantity Specifications (3) If a major element of the Special Forces is committed in support of land combat operations, the Army is not able to provide, concurrently, a like commitment to another operation/mission. A commitment under this output expense in support of land combat operations will not affect the NZDF's ability to provide the required forces for Counter-Terrorist operations and CBRE IEDD/EOD tasks as contained in the NZDF Output Plan. Quality Specifications Munitions and specialist stores available to OLOC standards. (4) Sustainability: Munitions and specialist stores available for period of special operations, CT tasks and CBRE IEDD tasks. Personnel available for reinforcement and rotation of deployed forces for continuous operations in accordance with Schedule 4 to the NZDF Output Plan. Performance Measurement Measurement Measurement Areas Measures 2. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Army and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) In the absence of real deployments on CT operations and CBRE IEDD/EOD incidents, measures are as outlined in the Standard Performance Measurement Table, OPRES, Army KPIs, APMS and relevant NZDF and single Service publications. 119 NZDF 2007 Statement of Intent

120 Cost Cost Components $million Remarks 3. Cost of Output Expense 10. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Outputs in Output Expense 10 OUTPUT 10.1: SPECIAL FORCES Description The provision of Special Forces prepared for the conduct of special operations in support of land operations. It also includes the requirement to provide Special Forces elements to the framework of a brigade group for simulation and Command Post Exercise-based combined arms training. Expense - $ million. Deployment Impact: If a high proportion of Output 10.1 were deployed on operations under Output Expense 16, any other concurrent contribution from this output would be very limited. This does not, however, affect the ability of the NZDF to continue to fully deliver force elements for the other two outputs in this expense (Outputs 10.2 and 10.3) OUTPUT 10.2: COUNTER-TERRORIST FORCES Description The provision of forces at the operational level of capability prepared to conduct counter-terrorist operations within specified response times, either in New Zealand, or in South Pacific countries when requested. Expense - $ million 120 NZDF 2007 Statement of Intent

121 OUTPUT 10.3: CHEMICAL, BIOLOGICAL, RADIOLOGICAL, EXPLOSIVE, IMPROVISED EXPLOSIVE DEVICE DISPOSAL Description The provision of a dedicated military organisation of specialised teams at the operational level of capability prepared for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests. This organisation will not normally be available for other community support services. Expense - $6.176 million. Deployment Impact: The number of personnel qualified and available to deliver this output is currently limited. The deployment of any personnel from this output to Output Expense 16 operations would have a major impact on training and the ability of the NZDF to deliver this output. 121 NZDF 2007 Statement of Intent

122 OUTPUT EXPENSE 11: NAVAL HELICOPTER FORCES (SH-2G(NZ) Seasprite Helicopters) 122 NZDF 2007 Statement of Intent

123 Note: Until December 2001 NZDF Output Expense 11 was for Air Combat Forces. In April 2001, the Government directed that, from December 2001, all air combat flying training within the RNZAF/NZDF cease and that the Air Combat Forces be disbanded and the aircraft sold. The final Sale and Purchase contract is subject to the US State Department and Congress approval; this is pending. OUTPUT EXPENSE 11: NAVAL HELICOPTER FORCES Description The provision of No 6 Squadron prepared for the conduct of naval helicopter operations. These operations range from support to the Naval Combat Forces, the Naval Support Forces and the Naval Patrol Forces, to the conduct of limited independent operations. This output expense also includes the provision of naval helicopter forces for a range of support services to Government and the community, when required. Quantity and Quality Output Expense Components Naval Helicopter Forces 1. Provide Naval Helicopter Forces, from No 6 Squadron, RNZAF, prepared to support the Naval Combat Forces, Naval Support Forces and Naval Patrol Forces, and to conduct limited independent operations, under Employment Contexts 1, 2, 3, 4, and 5, as appropriate. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Three SH-2G(NZ) Seasprite helicopters available for military tasks; to be sustainable on operations in accordance with Schedule 4. (Provided from a total fleet of five Seasprite helicopters). b. Air and ground crews at manning levels as specified by RNZN Personnel States and RNZAF directed personnel levels. c. Equipment types, numbers and spares at the required configuration state, as represented in the configuration master database and Standing Operating Procedures. d. Planned Seasprite flying hours are 1,406, made up as follows: For flying while embarked with force elements of the Navy, a total of 510 hours (target range hours). For shore-based DLOC readiness training - a total of 896 hours (target range hours). Quality Specifications (1) Readiness: Naval Helicopter Forces that meet the DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Naval Helicopter Forces carry out a range of training activities in accordance with the NZDF EAS, the Squadron Training Programme, and the NZBR 99 (RNZN Operational Sea Training Instructions) to achieve DLOC. (2) Combat Viability: Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks. Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. 123 NZDF 2007 Statement of Intent

124 Output Expense Components Naval Helicopter Forces 2. Contribute to a range of services in support of other government departments, including Multi-Agency Operations/Tasks (MAO&T), the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications Notes: No 6 Squadron will remain under full command of CAF. Operational command will be exercised through ACC and OC 485 Wing for shore-based activities. When ships flights are required to embark, operational command will be assigned by ACC to the MCC, who will in turn assign operational control to the ship s CO. The RNZAF is responsible for the training of RNZN Seasprite helicopter aircrew and the provision and training of Ship s Flights maintenance personnel, for operational employment by the RNZN. a. Naval Support Helicopters may be involved in a range of MAO&T. b. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (3) Deployability: Naval Helicopter Forces capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Schedule 4 to the NZDF Output Plan and NZAP(S) 700. (4) Sustainability: Aircraft, munitions, expendable and technical stores available, as specified in NZAP(S) 700, to maintain OLOC for designated operational viability period. Personnel available for sustainment/rotation of the Naval Helicopter Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. 124 NZDF 2007 Statement of Intent

125 Performance Measurement Measurement Measurement Area Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Air Force and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) As outlined in the Standard Performance Measurement Table, OPRES, RNZAF and RNZN KPIs, and relevant Air and Naval publications. (2) Where practicable, operational evaluation will be conducted by external agencies, e.g. Allied Forces. (3) Relevant publications include: RNZAF Master Personnel Establishment. RNZN Personnel States. NZAP(S) 700. NZBR 99-RNZN Operational Sea Training Instructions. Standard Operating Procedures. Cost Cost Components $million Remarks 4. Cost of Output Expense 11. GST exclusive Total Expense Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

126 OUTPUT EXPENSE 12: MARITIME PATROL FORCES (P3-K Orion - Maritime Patrol/Surveillance Aircraft) 126 NZDF 2007 Statement of Intent

127 OUTPUT EXPENSE 12: MARITIME PATROL FORCES Description The provision of No 5 Squadron prepared for the conduct of maritime surveillance of New Zealand s EEZ, the Pacific region and the Southern Ocean, search and rescue missions, and maritime air operations. This expense also includes the provision of Orion aircraft for a range of services to Government and the community. Quantity and Quality Output Expense Components Maritime Patrol Forces 1. Provide Maritime Patrol Forces, from No 5 Squadron RNZAF, prepared for the conduct of maritime surveillance, search and rescue missions, and maritime air operations under Employment Contexts 1, 2, 3, 4 and 5. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Two P-3K Orion aircraft available for deployed military tasks; aircraft to be sustainable on operations in accordance with Schedule 4. (Provided from a total fleet of six Orions). (See Note below). b. A third P-3K Orion for maritime Search and Rescue and other emergency tasks, as required. c. Air and ground crews up to the RNZAF directed personnel levels. d. Equipment types and numbers as specified in Schedule 4 to the NZDF Output Plan, the Air Force publication NZAP(S) 700 and Standard Operating Procedures. e. Planned annual Orion flying hours are 2,550 (target range 2,422-2,677 hours). Note: The number of P-3K Orion aircraft available during 2007/08 (through to 2009/10) will be affected by the LTDP rolling programme to upgrade the Orion fleet and will reduce the full capacity of this output. At least one aircraft will be removed from service at any one time during the upgrade programme. In addition, the remaining aircraft will continue to be cycled through group and phase servicing requirements. This will have an affect on the likely sustainable duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and DLOC training will also affect the nature and extent of tasking that can be undertaken by the fleet during the period. Quality Specifications (1) Readiness: Maritime Patrol Forces that meet the specified DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Maritime Patrol Forces carry out a range of training activities in accordance with the NZDF EAS, RNZAF METLs (under update) and the Squadron Training Programme to achieve DLOC. (2) Combat Viability: Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks. Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. (3) Deployability: Maritime Patrol Forces capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Schedule 4 to the NZDF Output Plan and NZAP(S) NZDF 2007 Statement of Intent

128 Output Expense Components Maritime Patrol Forces Quantity Specifications Quality Specifications (4) Sustainability: Aircraft, munitions, expendable and technical stores available, as specified in NZAP(S) 700, to maintain OLOC for designated operational viability period. Personnel available for sustainment / rotation of the Maritime Patrol Forces on continuous operations as specified at Schedule 4 to the NZDF Output Plan. 2. Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. a. The Maritime Patrol Forces will be involved in a range of MAO&T. b. See section on Services in Support of the Government and the Community commencing at page 151. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. Performance Measurement Measurement Measurement Areas Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Air Force and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table. (1) As outlined in the Standard Performance Measurement Table, OPRES, RNZAF KPIs, and relevant Air publications. (2) Where practicable operational evaluation will be conducted by external agencies, e.g. by Allied Forces. (3) Relevant Air Force publications include: NZAP(S) 700. Standard Operating Procedures. RNZAF Master Personnel Establishment. 128 NZDF 2007 Statement of Intent

129 Cost Cost Components $million Remarks 4. Cost of Output Expense 12. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

130 OUTPUT EXPENSE 13: FIXED WING TRANSPORT FORCES [Boeing Strategic Transport aircraft] [C-130 Hercules Strategic and Tactical Transport aircraft] 130 NZDF 2007 Statement of Intent

131 OUTPUT EXPENSE 13: FIXED WING TRANSPORT FORCES Description The provision of No 40 Squadron prepared for the conduct of strategic and tactical air transport operations, including Aeromedical Evacuation (AE). This expense also includes the provision of air transport aircraft for a range of support services to Government and the community. Quantity and Quality Output Expense Components Fixed Wing Transport Forces 1. Provide Fixed Wing Transport Forces, from No 40 Squadron RNZAF, prepared for the conduct of strategic and tactical air transport operations under Employment Contexts 1, 2, 3, 4, and 5. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Two C-130 Hercules aircraft available for deployed military tasks; to be sustainable on operations in accordance with Schedule 4. (Provided from a total fleet of five C-130 Hercules aircraft). (See Note 1 below). b. A third Hercules to be available for specified tasks under EC 1D and emergency tasks, as required. c. One Boeing available for strategic transport tasks; to be sustainable for expected duration of strategic transport task in accordance with Schedule 4. (Provided from a fleet of two B aircraft). (See Note 2 below). d. An Aeromedical Evacuation (AE) element for strategic and tactical AE in support of land operations. (See Note 3 below). e. Air and ground crews up to the RNZAF directed personnel levels. Crews include AE support staff; this will include joint and/or civilian medical staff for strategic and tactical AE, as required. f. Equipment types and numbers as specified in Schedule 4 to the NZDF Output Plan, the Air Force publication NZAP(S) 700, and Standard Operating Procedures. g. Planned annual flying hours are: The Boeing 757s will fly a total of 950 hours (target range The Hercules will fly a total of 2,166 hours (target range 2,058-2,274). (See Note 4 below) Quality Specifications (1) Readiness: Fixed Wing Transport Forces that meet the DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Fixed Wing Transport Forces carry out a range of training activities in accordance with the NZDF EAS, RNZAF METLs (under update) and the Squadron Training Programme. (2) Combat Viability: Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks. Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. (3) Deployability: Fixed Wing Transport Forces capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Aircraft, expendable and technical stores available to generate OLOC, as specified in Schedule 4 to the NZDF Output Plan and NZAP(S) NZDF 2007 Statement of Intent

132 Output Expense Components Fixed Wing Transport Forces Quantity Specifications Notes: 1. The number of C-130 Hercules aircraft available during 2007/08 (through to 2009/10) will be affected by the LTDP rolling programme to upgrade the C-130 fleet and will reduce the full capacity of this output. At least one C-130 aircraft will be removed from service at any one time during the upgrade programme. While the number of aircraft required by the Output Plan for OLOC should be maintained for most of this period, there will be periods where only two C-130 aircraft will be available given the need to continue to cycle aircraft through group and phase servicing requirements. The reduced fleet size will have an affect on the duration of any operational deployments and the ability to rotate any such deployments. The requirement to sustain core and DLOC training will also affect the nature and extent of tasking that can be undertaken by the C-130 fleet during the period. 2. The number of Boeing 757 aircraft available during 2007/08 will be affected by the LTDP modification programme for the B-757 fleet and will reduce the full capacity of this output. For most of the period only one B-757 will be available except for six months in the middle of the programme (Aug 07 to Feb 08) when no B-757 aircraft will be available. In the period Oct 07 to Feb 08, B-757 Operational Testing and Evaluation (OT&E) will be conducted. During this period one B-757 may be available for limited tasking - as part of and to meet the OT&E requirements. 3. The RNZAF is required to provide forward, tactical and strategic Aeromedical Evacuation (AE) services, including responsibility for the provision of AE-qualified personnel and associated AE equipment. For fixed wing tactical and strategic AE it is likely that, for high dependency cases, specialist support would be sought from other Services of the NZDF and/or non-defence resources. 4. The total C-130 annual flying hours allocation has been adjusted to reflect the reduction in the number of C-130 aircraft available and the total number of hours that can be generated and supported by the C-130 fleet during the period. Quality Specifications (4) Sustainability: Aircraft, expendable and technical stores available, as specified in NZAP(S) 700, to maintain OLOC for designated operational viability period. Personnel available for sustainment/ rotation of the Fixed Wing Transport Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan. 132 NZDF 2007 Statement of Intent

133 Output Expense Components Fixed Wing Transport Forces 2. Contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications a. The C-130 Transport Force will be involved in a range of MAO&T. Support to the NZ Antarctic Programme (NZAP) will be a particular priority each year in accordance with the agreed NZAP/NZDF annual programme. b. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications Performance Measurement Measurement Measurement Area Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Air Force and HQ JFNZ. Audit New Zealand. a. See Standard Performance Measurement Table for areas of responsibility. (1) As outlined in the Standard Performance Measurement Table, OPRES, RNZAF KPIs, and relevant Air publications. (2) Where practicable operational evaluation will be conducted by external agencies, e.g. Allied Air Forces. (3) Relevant Air Force publications include: NZAP(S) 700. Standard Operating Procedures. RNZAF Master Personnel Establishment. Cost Cost Components $million Remarks 4. Cost of Output Expense 13. GST exclusive Total Expense Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

134 Outputs in Output Expense 13 OUTPUT 13.1: B TRANSPORT FORCE Description The provision of Boeing aircraft prepared for strategic air transport tasks and to provide some support services for Government and the community. Expense - $ million. Note: The planned modifications to the B aircraft in FY 2006/07 will reduce the full availability of the fleet. OUTPUT 13.2: C-130 TRANSPORT FORCE Description The provision of C-130 Hercules aircraft prepared for both strategic and tactical air transport operations and for some support services for Government and the community. Expense - $ million. 134 NZDF 2007 Statement of Intent

135 OUTPUT EXPENSE 14: ROTARY WING TRANSPORT FORCES [UH-1H Iroquois Utility Helicopter] [NH-90 Medium Utility Helicopter - in Service 2010/11] 135 NZDF 2007 Statement of Intent

136 OUTPUT EXPENSE 14: ROTARY WING TRANSPORT FORCES Description The provision of No 3 Squadron prepared for the conduct of tactical air transport operations, including Aeromedical Evacuation (AE), and counter-terrorist operations. This expense also includes the provision of helicopters for a range of support services to Government and the community. Quantity and Quality Output Expense Components Rotary Wing Transport Forces 1. Provide Rotary Wing Transport Forces, from No 3 Squadron RNZAF, prepared for the conduct of tactical air transport operations, including Aeromedical Evacuation (AE), under Employment Contexts 1, 2, 3, 4, and 5. (For details on Employment Contexts see pages 61-63). Quantity Specifications a. Six UH-1H Iroquois helicopters available for military tasks; to be sustainable on operations in accordance with Schedule 4. (Provided from a total fleet of 14 Iroquois helicopters). b. Two additional helicopters on standby for rapid response tasks under EC 1 and for Search and Rescue. c. A Forward and Tactical AE element for the support of land operations. d. Air and ground crews up to the RNZAF directed personnel levels. e. Equipment types and numbers as specified in Schedule 4 to the NZDF Output Plan, the Air Force publication NZAP(S) 700 and Standing Operating Procedures. f. Planned annual Iroquois flying hours are 4,909 (target range 4,664-5,154 hours). Notes: The RNZAF is required to provide forward and tactical Rotary Wing Aeromedical Evacuation (AE) services, including responsibility for the provision of AE-qualified personnel and associated AE equipment. Seasprite naval helicopters are provided under Output Expense 11. No 6 Sqn, RNZAF is responsible for their maintenance and for the training of crews to DLOC. For the planned annual Seasprite flying hours see Output Expense 11. Quality Specifications (1) Readiness: Rotary Wing Transport Forces that meet the specified DLOC readiness criteria in accordance with Schedule 4 to the NZDF Output Plan. Rotary Wing Transport Forces carry out a range of training activities in accordance with the NZDF EAS, RNZAF METLs (under update) and the Squadron Training Programme. (2) Combat Viability: Air and ground crews that meet the collective training standards, experience levels and qualification requirements for military tasks. Aircraft and equipment performance, reliability and technology that meet required standards for commitment to military tasks. Effective standardisation when working with friendly forces. (3) Deployability: Rotary Wing Transport Forces capable of generating OLOC within designated response times, as specified in Schedule 4 to the NZDF Output Plan. Aircraft, munitions, expendable and technical stores available to generate OLOC, as specified in Schedule 4 to the NZDF Output Plan and NZAP(S) NZDF 2007 Statement of Intent

137 Output Expense Components Rotary Wing Transport Forces 2. Undertake MAO&T (Multi-Agency Operations/Tasks), and contribute to a range of services in support of other government departments, the community, and foreign and defence policy objectives when not committed to operations, using the capabilities developed for the operational role. Quantity Specifications a. The RWTF will be involved in a range of MAO&T. b. See section on Services in Support of the Government and the Community commencing at page 151. Quality Specifications (4) Sustainability: Aircraft, munitions, expendable and technical stores available, as specified in NZAP(S) 700, to maintain OLOC for designated operational viability period. Personnel available for sustainment/ rotation of the Rotary Wing Transport Forces on continuous operations as specified in Schedule 4 to the NZDF Output Plan. (1) While specific, pre-planned operations/tasks (under MAO&T) normally require specific quality standards, the quality of other assistance to the government and the community may rely on the satisfaction expressed by the supported party/agency. (2) Many of the MAO&T agreements/mous, which will include performance requirements (conditions and standards), are still under development. Performance Measurement Measurement Key Element Measures 3. Performance Evaluation. Output performance is assessed by: The Ministry of Defence (MoD). The NZDF. Air Force and HQ JFNZ. Audit New Zealand a. See Standard Performance Measurement Table for areas of responsibility. (1) As outlined in the Standard Performance Measurement Table, OPRES, RNZAF KPIs, and relevant Air publications. (2) Where practicable operational evaluation will be conducted by external agencies, e.g. Allied Forces. (3) Relevant Air Force publications include: NZAP(S) 700. Standard Operating Procedures. RNZAF Master Personnel Establishment. 137 NZDF 2007 Statement of Intent

138 Cost Cost Components $million Remarks 4. Cost of Output Expense 14. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

139 OUTPUT EXPENSE 15: MISCELLANEOUS SUPPORT ACTIVITIES New Zealand Defence Force [Sea Cadets learn the basics] [New Zealand Cadet Forces Training] [Limited Service Volunteers - Confidence Building ] [New Zealand Cadet Force s on parade at Westpac Stadium in support of Year of the Veteran Pageant] 139 NZDF 2007 Statement of Intent

140 OUTPUT EXPENSE 15: MISCELLANEOUS SUPPORT ACTIVITIES Description The provision of the NZDF training infrastructure and planned support to regional Defence Forces and the New Zealand community that is provided by identified elements of the NZDF. It includes support provided under the auspices of the Mutual Assistance Programme (MAP), support for the New Zealand Cadet Forces, training of Limited Service Volunteers and the provision of Service Museums. Quantity and Quality Output Expense 15 Miscellaneous Support Activities 1. Provide the training infrastructure and planned support to regional Defence Forces and the New Zealand community, using identified elements of the NZDF. Notes: 1. The NZCF comprises 343 NZCF officers and 3,419 cadets within 106 Cadet Force Units across New Zealand. The personnel figures fluctuate from month to month, especially at the end of the school year. Quantity Specifications a. Training and technical assistance for the Mutual Assistance Programme (MAP) - anticipated to be in the range of 200 to 250 activities. Each activity could include formal training, technical advice, attachments, study, mobile training teams, and exchanges - both in New Zealand and overseas. b. Support for the New Zealand Cadet Forces (NZCF) in 2006/07 will involve the conduct of 36 courses for NZCF officers and 40 courses for cadets - amounting to about 2,764 officer training days and 9,879 cadet training days. Permanent staff includes 27 Tri Service, Regular Force training and support staff, and 4 civilian administrative staff. [Note: Training days do not include community projects completed at the local level]. c. Special Training for Limited Service Volunteers, to include 5 courses (each of six weeks duration) for up to a total of 720 unemployed people between the ages of 17 and 25 years for the training year (1 Jul Jun 08). d. The provision of staff, infrastructure and resources to Service Museums to ensure the preservation and presentation of New Zealand s significant military history. Service Museums at Devonport (Navy), Waiouru (Army), and Wigram and Ohakea (Air Force). Quality Specifications (1) Complete the MAP country programmes and activities - consistent with the MAP policy objectives and outcomes agreed with the participant defence forces or law enforcement agencies, and that are also consistent with NZDF practices. (1) Meet the training, course and exercise objectives of the NZ Cadet Forces. (2) Conduct courses that meet the requirements of the NZQA framework, where appropriate. (3) Meet NZDF standards for the administrative support provided to NZCF units. (1) Complete training courses to standards agreed in a Memorandum of Understanding (MOU) between the NZDF and the Ministry of Social Development (MSD). (1) Services provided in accordance with the relevant Trust Deeds and the Memorandums of Understanding between each of the Services and the individual museum trust boards. 140 NZDF 2007 Statement of Intent

141 Performance Measurement Measurement Measurement Areas Measures 2. Output performance will be measured by the degree of satisfaction expressed by the authorities requesting the assistance - in accordance with their annual programmes. a. Training and administrative support will be provided in accordance with NZDF training quality standards as modified with senior staff from the requesting organisation. b. For Service Museums, Annual review against Service Museum benchmarks and periodic review against the New Zealand Museum Standards Scheme. (1) Quality will be assessed by the regular evaluation of significant issues, the capacity to react to requests for assistance and the provision of adequate support from the limited resources available. This will include: For MAP. The monitoring and analysis of MAP activities within each country programme through various processes, including post-activity reports and evaluation of the training outcomes against identified need. For NZCF. The effectiveness of the support provided to the NZCF is assessed from the reports of Area Coordinators, Cadet Unit Commanders, feed back from the public and overall evaluation by the Commandant NZCF. For LSVs. Analysis of the training objectives achieved, the reported post-course employment status of Scheme participants, and feedback from the public and the Ministry of Social Development (MSD). For Service Military Museums. Feedback from the individual museum trust boards and NZDF command, public satisfaction surveys, annual and periodic reviews, and the number of visitors per financial year. Cost Components $million Remarks 3. Cost of Output Expense 15. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) NZDF 2007 Statement of Intent

142 Outputs in Output Expense 15 OUTPUT 15.1: MUTUAL ASSISTANCE PROGRAMME Description The provision of instructors, facilities and resources to conduct training for and provide technical advice to regional defence forces and law enforcement agencies under the Mutual Assistance Programme (MAP). Assistance is provided in New Zealand and in participant countries. Expense - $1.977 million. OUTPUT 15.2: NZ CADET FORCES SUPPORT Description The provision of personnel to provide general policy guidance, uniforms, administrative support and military training assistance, including courses, for all approved New Zealand Cadet Forces (NZCF) units. Expense - $2.897 million OUTPUT 15.3: LIMITED SERVICE VOLUNTEER TRAINING Description The provision of NZDF training staff and facilities required for participation in the community training scheme to encourage the unemployed or disadvantaged youth towards employment. Expense - $2.576 million OUTPUT 15.4: SERVICE MILITARY MUSEUMS Description The provision of staff, infrastructure and resources to Service Museums to ensure the preservation and presentation of New Zealand s significant military history. Expense - $6.239 million 142 NZDF 2007 Statement of Intent

143 OUTPUT EXPENSE 16: OPERATIONALLY DEPLOYED FORCES New Zealand Defence Force [Minister of Defence visits NZDF personnel in the Sinai] [NZDF Personnel arriving in Afghanistan] [Loading a RHIB onto a C-130 Hercules] [A helping hand] [Searching for Mines South Lebanon] 143 NZDF 2007 Statement of Intent

144 OUTPUT EXPENSE 16: OPERATIONALLY DEPLOYED FORCES Description The provision of deployed force elements at the Operational Level of Capability for military operations, including the commitments agreed by the Government under which the NZDF contributes to peace support and other operations conducted in support of the United Nations and other international agencies. This includes the provision of individuals, observers, advisers, instructors, headquarters staff, and complete force elements and contingents, when necessary, to operational missions, and the conduct of any additional training required to meet any special conditions or the higher threat levels anticipated. Quantity and Quality Output Expense Components Operationally Deployed Forces 1. Provide individuals, small detachments, units and equipment prepared to meet Government s agreed commitments to operational missions. Note: Brief histories of New Zealand s current Government-approved contribution to the various operational missions are shown in the table at the end of this Output Expense. Quantity Specifications a. Maintain the commitments specified by Government in its approval for each task/mission/operation. b. As at 1 Apr 07 actual commitments included: OP KORU - All Task Groups (Timor Leste) 151 UNTSO (Middle East) [OP SCORIA] 8 MFO (Sinai) [OP FARAD] 26 EUFOR (Bosnia) [OP STANDARD] 3 EUFOR (Bosnia) [OP FORD] 8 UNMIK (Kosovo) [OP KOSTER] 1 UNAMI (Iraq) [OP HAVEN, Task Group IRON] 1 OP ARIKI (Afghanistan) [Task Group CRIBB] 107 OP ARIKI (Afghanistan) [Task Group KEA] 7 OP ARIKI (Tampa, Florida, USA) [Task Group SPEAK] 3 OP ARIKI (Afghanistan) [Task Group AFFIRM] 1 OP ARIKI (Arabian Sea area) [Task Group TROY] 5 OP SUDDEN (Sudan) 3 OP RATA II (Solomon Islands) 43 UNCMAC (Republic of Korea) [OP MONITOR] 3 USCENTCOM Staff Officer 1 UNMACC-SL (Southern Lebanon) [OP LIMA] 10 Total NZDF personnel deployed 381 Quality Specifications (1) Personnel, as applicable, to be at OLOC (for applicable Employment Context/s) before deployment. (2) Services provided to the satisfaction of Coalition Commanders, Contingent Commanders and staff responsible for each task. (3) Standards achieved as agreed with the parent organisation requesting NZDF participation. (4) Timely replacement of each element or individual, when requested. 144 NZDF 2007 Statement of Intent

145 Performance Measurement Measurement Key Element Measures a. Complete satisfaction with performance of duties throughout (1) Evaluation of reports from the host organisation. deployment. 2. Output performance will be measured by the degree of satisfaction expressed by the authorities requesting the assistance, and within budget. b. Satisfactory performance of equipment provided by NZDF, when applicable. c. Budget considerations. (2) Evaluation of reports from the senior in theatre NZDF commander. [Operationally deployed units are not required to submit OPRES reports]. (3) Evaluation by visiting NZ politicians and NZDF staff. (4) The level of capability achieved by individuals, detachments or units prior to departure will be assessed by the designated Operational Commander. (5) Each deployment is to be completed within a Cabinet-approved budget. Cost Note that until the start of FY 2008/09 Output Expense 16 is subject to a three-year, Multi-Year Appropriation (MYA) for funding purposes. The Government has agreed that from 2008/09 funding will change to an annual basis. The MYA table and an indicative annual breakdown of costs table are included below: Multi-Year Appropriation: As recommended by DCARR and under the DSI funding package, funding for Output Expense Operationally Deployed Forces has been placed under a Multi-Year appropriation (MYA). If Government requires the NZDF to undertake a major operational deployment and the cost of this deployment cannot be managed within the MYA, the NZDF may request an additional appropriation from Cabinet for the incremental costs of this deployment. Any such appropriation would be additional to the DSI funding package. 145 NZDF 2007 Statement of Intent

146 Multi-Year Appropriation (MYA) Table: Appropriations Current Appropriation $000 Scope of Appropriations Departmental Output Expenses (Mode B Gross) Operationally Deployed Forces Term 2005/06 to 2007/08 Original Appropriation 66,999 Adjustments 71,179 Total Appropriation 138,178 Estimated Actual to Year End 2006/07 Expected Actual to Year End 2007/08 62, ,178 The provision of deployed force elements on military tasks, including the commitments agreed by Government under which the NZDF contributes to peace support and other operations conducted in support of the United Nations and other international agencies. It includes the provision of individuals, observers, advisers, instructors, headquarters staff, and complete force elements and contingents, when necessary, to operational missions, and the conduct of additional training required to meet any special conditions of the higher threat levels anticipated. Adjustments, to date, include: a reduction of $1.538 million, representing the transfer of Defence Force Allowances to the Ministry of Social Development in 2005/06, agreed increases of $ million in 2006/07 and $ million in 2007/08 to provide for future Defence Force Allowances and to fund deployments, and an addition of $741,000, representing residual Defence Force Allowances ex Ministry of Social Development; an overall total adjustment of $ million. Note: 1. Experience since the introduction of this MYA has highlighted the difficulty in forecasting operational tempo over a three-year period. In consequence, after 30 June 2008 (when this MYA expires), Output Expense Operationally Deployed Forces will be appropriated on an annual basis rather than via a MYA. 146 NZDF 2007 Statement of Intent

147 Indicative annual cost breakdown (2007/08): Components $million Remarks 3. Cost of Output Expense 16. GST exclusive Total Expenses Revenue Other/Dept Revenue Crown Total Revenue Asset Value (At 30 June 2007) Note: The Government s desired goals for the delivery of Output Expense 16 over the next 10 years, in accordance with the results of the DCARR, are detailed under Output Expense 16 at Schedule 4 to the NZDF 2007/08 Output Plan. Minister of Defence, Hon Phil Goff, talking with NZDF personnel in Timor Leste, June NZDF 2007 Statement of Intent

148 BRIEF HISTORIES OF CURRENT NEW ZEALAND GOVERNMENT-APPROVED NZDF CONTRIBUTIONS TO OPERATIONAL MISSIONS (as at 1 April 2007) NZDF Operation Operation KORU (Timor Leste). NZDF Contribution. Operation SCORIA, UNTSO (Middle East). Mainly Military Observers. Operation FARAD, MFO (Sinai). Driving, Monitoring, Conducting Courses, and Training Development. Operation KOSTER, UNMIK (Kosovo). Observer. Brief History and New Zealand Commitments The NZDF contributed a battalion group, helicopter detachment, observers and staff officers to East Timor under various operations (Operations UNAMET, INTERFET, UNTAET, UNMISET and UNOTIL) from October Following the withdrawal of the battalion group and helicopter detachment in November 2002, the NZDF contribution in support of Operation KORU consisted of UN Military Observers (UNMO) and various military advisers (MA). While this contribution continues [with one UNMO, a Chief Military Liaison Officer and two MA (Logistics and Personnel)], the NZ Government authorised the deployment of a Company Group following the riots in Dili in May This group, operating under the Australian-led Combined Joint Task Force 631, operates in support of the deployed International Police Force and conducts security patrols and check points in and around Dili. On 12 March 2007 Cabinet approved the deployment of a detachment of Iroquois helicopters to this mission (2 or 3 helicopters and crews) and announced that New Zealand would provide the Deputy Commander (a full Colonel equivalent) to the Timor Leste mission. The United Nations Truce Supervisory Organisation (UNTSO) was established in 1948 to monitor the Arab-Israeli peace following the proclamation of the state of Israel. New Zealand first committed two officers as observers in 1954 and has gradually increased its commitment to 7 x Military Observers. These observers serve at a variety of locations in Israel, Syria, Lebanon and Egypt. Cabinet approval for this mission extends to 30 September The Government has approved an 8 th position, one time only and specifically to fill the post of Chief of Operations, from November 2006, and then the post of Chief of Observer Group (Damascus), from March 2008; both posts being for 12 months each. The Multinational Force and Observers (MFO) is a multi-nation commitment based in the Sinai Peninsula between Egypt and Israel. The MFO upholds conditions set down in the Treaty of Peace signed between Egypt and Israel in The MFO function is one of observation, reporting, and investigation of Treaty violations. The NZDF commitment commenced in 1982 with a detachment of helicopters. Today, New Zealand s commitment is the provision of 26 military personnel who carry out duties, including driving tasks, driver licensing, monitoring the operation of border guards, conducting convoy courses, and training development. Cabinet approval for commitment to this mission currently extends to 1 April In June 1999 the UN Security Council authorised the establishment of an interim civil administration in war-ravaged Kosovo, the UN Mission in Kosovo (UNMIK). New Zealand currently contributes one officer, working as a Military Liaison Officer, to the UNMIK HQ in Pristina. Cabinet approval for contribution to this mission extends until 30 June NZDF 2007 Statement of Intent

149 NZDF Operation Operation ARIKI. This operation covers all of the NZDF support to the international effort against trans-national terrorism. Brief History and New Zealand Commitments Operation ENDURING FREEDOM is the United States-led military coalition effort against trans-national terrorism. The Coalition has been mandated to prosecute operations against the Al Qaeda network and other terrorist groups in the area. To conduct these operations, headquarters have been established to manage coalition military operations within Afghanistan and elsewhere. The New Zealand contribution to this international effort, under the banner of Operation ARIKI, is divided into the following Task groups: Task Group KEA. Task Group KEA, with Cabinet-approved extension until 30 September 2007, consists of the following deployments: Two NZDF staff officers and one junior NCO provide the NZDF contribution to Headquarters International Security Assistance Force (HQ ISAF) in Kabul, Afghanistan. Two Senior NCO instructors are attached to the United Kingdom Leadership Training Team - Afghanistan [(UKLTT (A)] based in Kabul. Two NZDF Warrant Officers are deployed in support of our coalition partners in Bagram, Afghanistan. Task Group SPEAK. Task Group SPEAK is the NZDF ongoing contribution of three staff officers as the NZ National Planning Element (NPE) with USCENTCOM in Tampa, Florida, USA. The NZ NPE coordinates the NZDF involvement in Operation ENDURING FREEDOM. Task Group CRIB. This is the establishment of a New Zealand Provincial Reconstruction Team (NZ PRT) within Bamyan Province in Afghanistan. Currently, 109 NZDF personnel are deployed. The Government has agreed New Zealand commitment to leading this PRT until 30 September Task Group TIKI. On 12 March 2007, Cabinet announced that an ANZAC frigate would be deployed to the Arabian Gulf area for one month (September 2008) in support of Operation ENDURING FREEDOM. Task Group TROY. Five NZDF personnel are deployed in the Arabian Gulf area to provide a support mechanism for all elements of the NZDF deployed in the Gulf region / Afghanistan and to assist co-located coalition partners. Cabinet has approved this mission until 30 September Task Group AFFIRM. In support of the UN Assistance Mission in Afghanistan (UNAMA), Task Group AFFIRM has involved, since January 2005, the deployment of a NZDF officer of lieutenant colonel equivalent rank as a Military Liaison Officer (MLO). The NZDF MLO is the Deputy Chief of Operations at UNAMA HQ based in Kabul. Duties as MLO include the provision of the strategic interface between multi-national forces and Afghan authorities. Cabinet has approved the extension of this deployment until 30 September USCENTCOM Staff Officer. One staff officer is posted to the Combined Planning Group in USCENTCOM as a Ground Operations Planner. This appointment is only focused on Operation ENDURING FREEDOM. 149 NZDF 2007 Statement of Intent

150 NZDF Operation Operation HAVEN (Iraq) This operation covers all NZDF support in Iraq under United Nations Council Resolution Operation RATA II (Solomon Islands). Troop and Liaison Officer contribution. Operation MONITOR, UNCMAC (Republic of Korea). Three officers. Operation SUDDEN, UNMIS (Sudan). Military Observers and a Staff Officer. Brief History and New Zealand Commitments Task Group IRON. Currently the only NZDF contribution in Iraq is in support of the UN Assistance Mission in Iraq (UNAMI). The primary role of UNAMI is to provide advice and assistance related to Iraq s transitional political process. Task Group IRON has involved the deployment of a NZDF officer as a Military Advisor (MA) since January The MA is based in Bagdad and provides liaison between UNAMI, the Multi-national Force and Iraqi Security Forces, as well as providing advice on military matters to the UN Special Representative of the Secretary General. Cabinet has approved the extension of this deployment (involving tours of six months) until 31 December During the period July-September 2003 the NZDF deployed personnel to the Solomon Islands in support of the Australian Defence Force-led Task Force 635 to assist the Government of the Solomon Islands to re-establish law and order. A total of 220 NZDF personnel were deployed to the Solomon Islands conducting security, helicopter support and humanitarian aid tasks. Since then, a NZDF officer has been permanently stationed on the Headquarters. New Zealand, in rotation with Pacific Island countries, provided a small force of infantry (up to 46 personnel at a time) on deployment for three months. The NZDF s last troop contribution, under this arrangement, was for the three-month period February - April However, following further disturbances in the Solomon Islands in May 2006, the New Zealand Government authorised the deployment, at short notice, of a Company Group to assist in the maintenance of law and order. This group was subsequently downsized to a platoon. This platoon (currently 43 personnel) is deployed in support of the Participating Police Force (PPF) conducting presence patrols and other tasks. Cabinet approval for this mission extends to 31 March The United Nations Command Military Armistice Commission (UNCMAC) was created to supervise the Armistice Agreement of 1953, and is responsible for supervising the access, operation and security of the Demilitarised Zone in Korea. On invitation from the United Nations Command, the NZ Government, in April 2004, approved the secondment of one officer to the appointment of Assistant Operations Officer, HQ UNCMAC. Subsequently, Cabinet approved the deployment of two additional officers to this mission; both Assistant Corridor Control Officers. Cabinet has approved contributions to this mission until 31 August Sudan has suffered from two decades of civil war. In March 2005 the UN Security Council (under Resolution 1590) established a UN peacekeeping mission in Southern Sudan. This mission will support the implementation of the Comprehensive Peace Agreement signed between the Government of Sudan and the SPLM/A in Nairobi in January In response to a request from the UN, New Zealand has committed two Military Observers and one Staff Officer to this mission from July Cabinet has approved the extension of this deployment until 1 October NZDF 2007 Statement of Intent

151 NZDF Operation Operation LIMA, UNMACC-SL (South Lebanon). Explosive Ordnance Disposal Survey Team and Technical Assistance Team. Operation STANDARD, EUFOR (Bosnia). Staff Officers Operation FORD, EUFOR (Bosnia), Liaison and Observation Team. Brief History and New Zealand Commitments In August 2006 the UN Security Council adopted Resolution 1701 to create conditions for the end of conflict in Lebanon. The conflict left substantial amounts of unexploded munitions scattered throughout urban and rural areas of South Lebanon. In response to a request from the UN Mine Action Service the NZ Government agreed to the deployment of NZDF personnel to the UN Mine Action Coordination Centre in South Lebanon. The deployment of 10 personnel (a four-person Explosive Ordnance Disposal Survey Team and a six-person Technical Assistance Team) deployed in February 2007 and is for a period of 12 months. New Zealand s commitment to the Balkan states commenced in 1992 with UN Military Observers. In 1994 New Zealand committed the first of two Company Groups, each of about 250 personnel, to the UN Protection Force (UNPROFOR). After the withdrawal of that commitment and the establishment of the NATO-led Stabilisation Force (SFOR) New Zealand has committed staff officers to the SFOR (now renamed EUFOR European Union Force) British Division HQ in Bosnia. Cabinet has approved the continued deployment of up to three officers to this mission until 31 July 2007, and has also approved the withdrawal of this contribution at that time. In addition to Operation STANDARD, the NZDF has also contributed 20 military personnel to SFOR in Bosnia. These personnel were attached to a variety of British units for the European summer to develop and enhance training skills for the NZ Army. From 2004, the NZDF was requested to provide a Liaison and Observation Team (LOT). Cabinet approved the deployment of an 8 x person LOT to EUFOR. The tasks of the LOT are: area surveillance; area security assessment; observation of political, economic and social developments; and liaison with inter-government and NGOs. Cabinet has approved the withdrawal of this contribution on 30 April NZDF 2007 Statement of Intent

152 SERVICES IN SUPPORT OF THE GOVERNMENT AND THE COMMUNITY [INCLUDING MULTI-AGENCY OPERATIONS AND TASKS (MAO&T)] General Conducting the training activities needed to maintain DLOC for operational employment also produces within the NZDF the capacity to deliver a range of services in support of other government departments, the community, and foreign and defence policy objectives. Approval levels for the provision of these services range from Cabinet/Ministerial level for significant events to unit commanders for minor local support tasks. Generally, however, tasks will be approved on the direction of CDF, a single Service Chief, or COMJFNZ. Details are contained in Defence Force Orders 1 (DFO 1), Chapter 13 - NZDF Assistance to Community Organisations. Some general services are pre-planned or are, at least, reasonably predictable. Such tasks include ceremonial support, and planned assistance to the NZ Antarctic Programme, the Department of Conservation (DOC) and the NZ Police. The frequency of other tasks, primarily of an emergency nature such as search and rescue, assistance to civil defence and fire fighting, are less predictable. The NZDF maintains elements at specified degrees of notice (DON) for response to such emergencies. The main NZDF elements that are to be available for emergency tasks, listed by Service, are shown at Table 1. Table 1. Elements Available for Emergency Tasks Service Navy Army Elements Available - with Degree of Notice (DON) where applicable One frigate (or alternative vessel) at 8 hours DON for emergency tasks, including SAR and Medical Assistance/Evacuation. One Inshore Patrol Vessel (IPV), once in service, at 8 hours DON for emergency tasks, including SAR. One Diving Team at 12 hours DON for emergency tasks, including underwater search and EOD. (See Note 1) One 25-person Civil Defence Response Group. On-shore personnel for fire fighting, as available. Personnel in North Island and South Island at 48 hours DON for emergency tasks, including SAR, Fire Fighting, and Casualty/Medical Evacuation. Personnel On Call for Civil Defence: - HQ elements in North Island and South Island to support a Civil Defence HQ. - Four 25-person Response Groups. - Two 100-person National Reserve Groups. - One 500-person Reserve. EOD Teams in North Island and South Island at 12 hours DON. (See Note 1) In-camp personnel for fire fighting, as available. NZDF 2007 Statement of Intent 152

153 Service Air Force Elements Available - with Degree of Notice (DON) where applicable One Iroquois helicopter at 2 hours DON for emergency tasks, including SAR, Fire Fighting and Casualty Evacuation. One Orion (or one Hercules if an Orion is not available) at 2 hours DON for emergency tasks, including SAR and Aeromedical Evacuation. One Hercules at 14 hours DON for emergency tasks. One EOD Team at 12 hours DON. (See Note 1) One 25-person Civil Defence Response Group at each Air Base, and elements to support a Civil Defence HQ. On-base personnel for fire fighting, as available. Notes 1. Explosive Ordnance Disposal (EOD) only. [Improvised Explosive Device Disposal (IEDD) comes under Output Expense 10.] Multi-Agency Operations and Tasks (MAO&T) The term Multi-Agency Operations and Tasks (MAO&T) is used in several of the NZDF Output Specification Tables contained in this Statement of Intent. The term is used within the relevant tables to draw a clear distinction between general support to the community and the more formal, pre-planned support to specific government departments and agencies, under the whole of government approach to, for example, protection of the New Zealand EEZ and border security. MAO&T refer to the formal operational support and training for such operations and tasks that the NZDF (Navy, Army and Air force) provides, and that are being developed, with other government departments and agencies - such as the Ministry of Fisheries, NZ Customs Service, NZ Police, Ministry of Foreign Affairs and Trade, Department of Conservation, Maritime New Zealand (MNZ), and related agencies. The Navy and Air Force, in particular, work closely, individually and/or collectively, with such agencies. The Government has emphasised the general direction and increased importance of the civilian/military requirements associated with the NZ EEZ and border control. The NZDF will continue to work closely with other government departments and agencies to plan formal arrangements for these requirements. It needs to be noted that, while existing formal support to other government departments and agencies will continue during 2007/08, significant increase in this support cannot be guaranteed until new / replacement / upgraded vessels (such as the MRV, OPVs and IPVs) and aircraft are introduced into service. The reporting of MAO&T with government departments and other general support to the government and the community is to be, by exception, against Table 2 below. A list of indicative NZDF MAO&T, general support to the government and the community, and tasks in support of foreign and defence policy objectives are listed at Table 2. The scale and frequency of such tasks, unless pre-programmed, are not forecast. However, a summary of actual support provided is required for reporting purposes, and will be included in the Annual report of the NZDF. 153 NZDF 2007 Statement of Intent

154 Table 2. List of Indicative MAO&T and General Support NZDF Support to: NZ Police (excluding SAR) Land, Sea and Air SAR (in support of NZ police, RCCNZ, NadiRCC, SuvaMCC or other requesting agency) Ministry of Civil Defence and Emergency Management Department of Conservation (DOC) Department of Corrections Environmental Risk Management Authority NZ Fire Service and National Rural Fire Authority Indicative Support Detail / Remarks MAO&T (including about 400 pre-planned Iroquois helicopter flying hours support). RNZN ships (sea days). Diving support. Other general and one-off support and assistance. Typically involves: Orion / Hercules / Iroquois (flying hours). RNZN ships (sea days). Diving support. Land search teams (man days). Land transport (km). Medical assistance (as required). Rescue Coordination Centre New Zealand (RCCNZ) staffing support. Assistance to the National Maritime Coordination Centre (NMCC) Logistic and other support (as required). [Note: For planning purposes flying hours provided for SAR are 150 hours (Orion), 16 hours (Hercules), and 60 hours (Iroquois).] Typically involves assistance, as requested, to declared national, regional or local Civil Defence emergencies (Details in DFO 91(1) NZJSP 102) and may involve: Sea transport (sea days). Fixed and rotary wing aircraft (flying hours). Road transport (km). Manpower (man days). Logistic and other support. Reporting is to be provided on: Actual support provided for specific Civil Defence Emergencies during the period. Other general support (including manning of various CD HQs for training exercises). Typically involves: Sea or air transport to off-shore islands (sea days / flying hours). Manpower assistance on land (man days). MAO&T. Other general support and assistance. All natures support and assistance. All natures support and assistance. Typically involves fire fighting assistance, mainly in rural areas: Support for specific fire-fighting operations (includes 20 Iroquois flying hours). Other general support and assistance, including training. NZDF 2007 Statement of Intent 154

155 NZDF Support to: Ministry of Fisheries Ministry of Foreign Affairs and Trade (MFAT) Government House Ministry of Health Department of Internal Affairs Maritime New Zealand (MNZ) New Zealand Customs Service Department of Prime Minister and Cabinet (DPMC) Explosive Ordnance Disposal (EOD) Indicative Support Detail / Remarks MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours). Any other general support and assistance. [Note: For planning purposes, 400 x P-3K Orion flying hours allocated to the National Maritime Coordination Centre (NMCC) for Ministry of Fisheries and NZ Customs Service tasks.] Port Visits, in support of MFAT. Typically involves 10 to 14 visits per year by major RNZN ships. Support for any specific events. Any other general support and assistance. Any major support for specific events/activities. (Does not include routine, on-going NZDF staff support and Aides-De-Camp assistance). Support for any specific events (such as health surveys or assistance in hospitals). Typically involves: Waitangi Guard ship. Provision of ceremonial guards for visiting dignitaries. Support to Anniversaries, such as ANZAC Day. Provision of national military contingents to overseas commemorations as directed. Other ceremonial support, including logistic support, as required. MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours). Professional Maritime advice. Any other support. MAO&T (including RNZN ships and RNZAF aircraft - sea days and air flying hours). Any other support. [Note: For planning purposes, 400 x P-3K Orion flying hours are allocated to the National Maritime Coordination Centre (MCC) for Ministry of Fisheries and the NZ Customs Service tasks.] Typically involves: Air transport (flying hours), including VIP flying. Sea transport (sea days / hours). Road transport (km). Logistic and administrative support as required (man days). [Note: For planning purposes, flying hours provided for VIP flying are 70 hours (B757), 25 hours (Iroquois), and 100 hours (King Air).] Typically involves the provision of specialist EOD Team/s to render stray military ordnance safe. Requests for assistance are normally channelled through Regional or Local police direct to appropriate NZDF agencies. [Note that this does not include CBRE / IEDD that comes under Output Expense 10.] 155 NZDF 2007 Statement of Intent

156 NZDF Support to: Support to the NZ Antarctic Programme (NZAP) Disaster Relief (South Pacific) General Medical Assistance/Support Detection of Pollution General Community Support General Training Courses Indicative Support Detail / Remarks Involves NZDF support in accordance with an annual NZAP/NZDF agreed plan. Typically involves: Hercules tasks to McMurdo Sound as agreed between the NZDF and Antarctic NZ. Freight movement, terminal operations and training assistance. Other assistance, on an annual basis, such as engineer support. Typically involves: Air reconnaissance (flying hours). Air and sea transport (flying hours and sea days). Helicopter support (flying hours). Land manpower support (man days). Logistic and other support (as required). [Note: For planning purposes, flying hours provided for Disaster Relief Support are 50 hours (Hercules) and 15 hours (Orion).] Typically involves: Medical / mercy flights (flying hours). Medical rescue by RNZN ship (sea days). Hospital assistance, including ambulance support. Hyperbaric treatment (number of treatments). Involves the detection and reporting of pollution, and any NZDF response / assistance as may be requested. Typically involves assistance to significant national and community events and could involve provision of: Manpower (man days). Sea, land and air transport (sea days / km / flying hours). Logistic and other support. Typically involves the provision of training courses to other government departments and the community (schools / community groups): Number of courses. Manpower (man days). [Note: This does not include the Limited Service Volunteer (LSV) Scheme that is reported separately under Output Expense 15.] The quality of general services provided by the NZDF to other government departments the community, and foreign and defence policy objectives is that the services be provided to the satisfaction of the requesting authority. For MAO&T, the quality of assistance will be in accordance the details of formal agreements / MOUs. NZDF 2007 Statement of Intent 156

157 PART B General Responsible Ministers Statement of Responsibility Statement of Accounting Policies Financial Highlights A Financial Overview for 2007/08 Explanation of Output Cost Variances between 2006/07 and 2007/08 Forecast Financial Statements Statement of Forecast Financial Performance Statement of Estimated Financial Position Statement of Forecast Cash Flows Reconciliation of Net Surplus to Net Cash Flow from Operating Activities Forecast Statement of Movement in Taxpayers Funds Forecast Details of Property, Plant and Equipment Statement of Objectives Specifying the Financial Performance Forecast for each Output Expense Statement of Departmental Capital Expenditure to be Incurred 157 NZDF 2007 Statement of Intent

158 NZDF 2007 Statement of Intent 158

159 RESPONSIBLE MINISTERS The Minister of Defence is the Responsible Minister for the New Zealand Defence Force (Vote Defence Force). The Minister of Veterans Affairs is the Responsible Minister for Veterans Affairs New Zealand (Vote Veterans Affairs - Defence). STATEMENT OF RESPONSIBILITY The forecast financial statements of the New Zealand Defence Force (NZDF) contained in this Statement of Intent have been prepared in accordance with Section 38 of the Public Finance Act In accordance with Treasury instructions, the financial statements within this Statement of Intent incorporate details on Vote Veterans Affairs-Defence. As Chief of Defence Force I acknowledge, in signing this statement, my responsibility for the information contained in this Statement of Intent, including the forecast financial statements. The forecast performance to be achieved for each NZDF and Veterans Affairs-Defence output expense for the year ending 30 June 2008, and as specified in the statement of objectives, including the financial performance forecast, is as agreed with, respectively, the Minister of Defence and the Minister of Veterans Affairs, who are the Ministers responsible for, respectively, Vote Defence Force and Vote Veterans Affairs. We certify that the information contained in this Statement of Intent is consistent with the appropriations contained in the Estimates for the year ending 30 June 2008 that are being laid before the House. J. Mateparae Lieutenant General Chief of Defence Force New Zealand Defence Force 18 April 2007 M. Horner Corporate Financial Officer New Zealand Defence Force 18 April NZDF 2007 Statement of Intent

160 NOTE 1: STATEMENT OF ACCOUNTING POLICIES AND TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) REPORTING ENTITY The NZDF is a Government Department as defined by Section 2 of the Public Finance Act Key assumptions underlying this forecast are: There will be no significant change in government policies or the NZDF s agreement with the Minister of Defence. The implementation of this policy drives activity levels and costs, and is discussed in detail within the Statement of Intent. There will be no major changes in exchange rates. MOD prepayments reflect forecast payments for acquisition projects which have been approved by Cabinet. Should additional projects be approved during the year, there may be some payments for these projects during the year. The 2007/08 forecast information will be updated as part of the government budget process. Although the forecast is based on the best information available, actual results for the year may vary from the forecast, and the variation may be material. Any operating surplus will generally be returned to the Crown in accordance with section 22 of the Public Finance Act SIGNIFICANT ACCOUNTING POLICIES The measurement base applied is historical cost modified by the revaluation of certain property, plant and equipment. The accrual basis of accounting has been applied, except for cash flow information. These financial statements are presented in New Zealand dollars rounded to the nearest thousand. Budget Figures The Budget figures are those presented in Budget Day Estimates of Appropriations (Main Estimates). Judgements and Estimations The preparation of financial statements in conformity with NZ IFRS requires judgements, estimations and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future period if the revision affects both current and future periods. Revenue The NZDF derives revenue through the provision of outputs to the Crown, for services to third parties and interest on funds held in overseas bank accounts. This revenue is recognised when earned and is reported in the financial period to which it relates. NZDF 2007 Statement of Intent 160

161 Cost Allocation The NZDF has determined the cost of outputs using a cost allocation system that is outlined below. The system attributes costs either directly to outputs or uses an attribution method to allocate costs to outputs. The costing model: 1 traces the direct costs of a force element (for example, a squadron, a frigate, a battalion) directly to an appropriate output; attributes support unit costs to outputs using drivers that reflect the use of that activity to produce outputs; and attributes overhead costs to outputs using the percentage of that output s gross operating budget (exclusive of capital charge) to the total gross budget (exclusive of capital charge) for all outputs. The basis for allocation is set for the year. However, the allocation rules are reviewed if there is significant organisational change that is likely to alter the continued appropriateness of the rules. Inventories Inventories are not held for resale and are comprised mainly of munitions, technical spares in support of property, plant and equipment, and consumable items. Inventory intended to be kept for more than one year has been classified as non-current inventory. All other inventory has been classified as current inventory. Inventories are recorded at weighted average cost. Appropriate allowance has been made for obsolescence. The obsolescence provision: includes specific provisions for obsolete inventory identified by considering the impact of any changes to capability, and by reviewing the high value inventory lines comprising the top 80% of inventory value; includes a general provision for low value inventory lines; includes amortisation of the value of contingency reserve stocks (CRS); excludes any inventory lines created within the last 2 years; excludes fuel, oil and lubricants which have a rapid turnover; and generally excludes ammunition, except for CRS amortisation or specifically identified issues. Debtors and Receivables Debtors and receivables are recorded at estimated net realisable value after providing for doubtful debts. A provision for impairment of receivables is established when there is objective evidence that the NZDF will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset s carrying amount and the present value of the estimated future cash flows, discounted using the effective interest method. 1 There are changes in the cost attribution model for 2007/08 to reflect the introduction into service of the Project Protector vessels and the relocation of the Iroquois helicopters to RNZAF Ohakea. 161 NZDF 2007 Statement of Intent

162 Operating Leases The NZDF leases training aircraft, office premises, office equipment (mainly multi-functional reprographic equipment), and computer software. As the lessor retains all the risks of ownership, these leases are classified as operating leases. Operating lease costs are expensed in the period in which they are incurred. Cash and Cash Equivalents Cash and cash equivalents include cash in hand and deposits held at call with banks. Property, Plant and Equipment (PPE) Cost PPE additions costing more than $5,000 are capitalised. PPE is initially stated at cost. The initial cost comprises the purchase consideration and the costs directly attributable to bringing the asset to the location and working condition necessary for its intended use. Valuation Land and Buildings and Specialist Military Equipment (SME) are revalued to fair value, with the valuations being updated annually. PPE purchased within two years of the last valuation date are not revalued, and are stated at depreciated historical cost. PPE purchased before 1 January 1991 that have not been revalued are stated at an internal valuation as at 1 January Valuations use a market-based approach where possible. Many building and SME assets are specialised in nature. Specialised assets are described as those assets that seldom, if ever, trade on the open market due to their specific purpose, design or locality. Where reliable market evidence is unavailable optimised depreciated replacement cost (ODRC) is used to calculate fair value. Land is stated at fair value as determined by an independent registered valuer. Major land holdings are individually revalued to fair value using a market-based approach as determined by the valuer. Minor land holdings are revalued to fair value by the valuer confirming the appropriateness of rating valuations. The value of land has been discounted where necessary to allow for any possible restrictions on title or environmental issues associated with the land. Buildings with a net book value greater than or equal to $0.250 million are revalued to fair value as determined by an independent registered valuer. Buildings with a net book value less than $0.250 million have had an appropriate market or construction cost based index applied to revalue them to fair value. SME with a net carrying value of $2 million or more, or groups of like assets with a total carrying value of $4 million or more are revalued to an internally assessed valuation, undertaken by relevant experts within the NZDF, which is reviewed by an independent valuer. All other SME is stated at depreciated replacement cost based on an internal valuation or depreciated historical cost. All other PPE is recorded at depreciated historical cost. The results of revaluing PPE are credited or debited to an asset revaluation reserve for that class of asset. NZDF 2007 Statement of Intent 162

163 Depreciation Depreciation is charged on all PPE with the exception of freehold land and capital work in progress. Depreciation is provided on a straight-line basis so as to allocate the cost (or valuation) of the PPE, less any estimated residual value, over their estimated economic useful lives. The estimated economic useful lives are within the following ranges: Buildings Specialist Military Equipment Plant and Equipment Office and Computer Equipment years 5-55 years 5-50 years 5-20 years Intangible Assets Software acquisition and development: Acquired computer software licences are capitalised on the basis of the cost incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the NZDF are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Properties Intended For Sale Properties intended for sale and withdrawn from use are stated at the lower of their depreciated cost/valuation and net realisable value. Provision for Employee Entitlements Provision is made in respect of the NZDF s liability for annual, long service and incentive leave and retirement benefits. Annual leave, sick leave and retirement benefits are recognised as they accrue to employees. Long service and incentive leave are recognised after qualifying conditions have been met. Annual leave has been calculated on an actual entitlement basis at current rates of pay. Long service and incentive leave and retirement benefits have been calculated on an actuarial basis, based on the present value of future entitlements. Statement of Cash Flows Cash means cash balances on hand and held in bank accounts. Operating activities includes cash received from all NZDF income sources and the cash payments made for the supply of goods and services. Investing activities are those activities relating to the acquisition and disposal of non-current assets. Financing activities comprise capital injections by, or repayment of capital and/or surplus to, the Crown and cash flows associated with GST. Foreign Currency Transactions covered by short-term forward exchange contracts are translated at the exchange rate specified in those contracts. Other foreign currency transactions are converted to the New Zealand currency exchange rate ruling at the time of the transaction. 163 NZDF 2007 Statement of Intent

164 Monetary assets and liabilities in foreign currencies are translated at the closing mid-point exchange rate ruling at that date, except for those arising on the amount held in the Federal Reserve Bank account in the United States of America. Exchange differences arising on the translation of monetary assets and liabilities in foreign currencies are recognised in the Statement of Financial Performance except those that are covered by short-term forward exchange contracts. The Federal Reserve Bank account holds deposits on account of procurements. Unrealised exchange variations are deferred and included in the cost of subsequent purchase transactions. Financial Instruments The NZDF is party to financial instruments as part of its normal operations. These financial instruments include cash balances, receivables, payables and foreign currency forward exchange contracts. The NZDF enters into foreign currency forward exchange contracts to hedge foreign currency transactions. Any exposure to gains or losses on these contracts is generally offset by a related loss or gain on the item being hedged. All financial instruments are recognised in the Statement of Financial Position except for foreign currency forward contracts. All revenue and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance except for unrealised exchange variations on Federal Reserve Bank account transactions. Goods and Services Tax (GST) The financial statements are prepared on a GST exclusive basis, except for Debtors and Receivables and Creditors and Payables in the Statement of Financial Position, which are GST inclusive. The amount of GST owing to the Inland Revenue Department at balance date, being the difference between Output GST and Input GST, is included in Creditors and Payables in the Statement of Financial Position. Taxation Government Departments are exempt from payment of income tax in terms of the Income Tax Act Accordingly, no charge for income tax has been provided for. The NZDF is subject to fringe benefit tax and GST. Commitments Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments to the extent that there are equally unperformed obligations. Contingent Liabilities Contingent liabilities are disclosed at the point at which the contingency is evident. Taxpayers Funds and Capital Charge Taxpayers Funds represents the Crown s net investment in the NZDF. The NZDF pays a capital charge to the Crown on its average Taxpayers Funds as at 30 June and 31 December each year. The capital charge rate for the year ending 30 June 2008 is 7.5%. NZDF 2007 Statement of Intent 164

165 Changes in Accounting Policies There have been no changes in accounting policies, apart from those changes made under IFRS since the date of the last audited financial statements. TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) This note outlines the process for adopting New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) for the NZDF. The Accounting Standards Review Board announced in December 2002 that reporting entities must adopt NZ IFRS for periods beginning after 1 January 2007, with earlier adoption optional. The Minister of Finance announced in 2003 that the Crown will first adopt NZ IFRS for its financial year beginning 1 July This NZDF Statement of Intent, therefore, recognises IFRS requirements in the Forecast Financial Statements. The NZDF has conducted a preliminary assessment of the impacts of transitioning to IFRS. The potential areas of impact from adoption of NZ IFRS may change materially as implementation unfolds and new standards are promulgated. Significant items identified to date include: The 2007/08 financial statements will require the restatement of 2006/07 comparative figures and the 1 July 2006 opening balance sheet to ensure all information presented in those accounts are prepared on a consistent basis. Treasury gathered this information throughout the 2006/07 financial year in parallel with normal reporting requirements. Under current standards, gains or losses on forward exchange contracts are not recognised, as any exposure to gains or losses on these contracts is generally offset by a related loss or gain on the item being hedged. Disclosure is made of the amount of unrealised gains or losses in the Annual Report in the notes to the financial statements. Under IFRS, these contracts will be valued at fair value, with any gains or losses being taken to the statement of financial performance. The NZDF will therefore recognise these contracts at fair value. Current standards require foreign currency transactions which are covered by forward exchange contracts to be translated at the exchange rates specified in those contracts. Under IFRS, these transactions will be translated at the spot rate applying at the time of the transaction. The valuation of inventories under IFRS involves a new test for inventories held for distribution for public benefit purposes. These are recorded at the lower of cost and current replacement cost. The assessment of current replacement cost will be undertaken using a calculation based on latest purchase price adjusted for inflation and currency movements. Where this estimated replacement cost is materially different from carrying value, an impairment provision will be created to write the inventory down. Under IFRS there will be a requirement to actuarially value some employee entitlements, such as sick leave, which are currently not recorded as a liability. The definition of property intended for sale is somewhat narrower under IFRS, and may lead to a reduced number of properties in this classification. 165 NZDF 2007 Statement of Intent

166 FINANCIAL HIGHLIGHTS 30/6/07 30/6/07 30/6/08 Supp. Estimates $000 Estimated Actual $000 Forecast $000 Revenue: Crown 1,810,031 1,810,031 1,975,271 Revenue: Department 8,954 8,954 9,064 Revenue: Other 7,954 7,954 8,226 Output Expenses 1,826,939 1,826,939 1,992,561 Net surplus/(deficit) (2,590) (2,590) 100 Taxpayers' funds 4,974,132 4,974,132 5,101,717 Net cash flows from operating and investing activities (468,243) (468,243) (128,554) CAPITAL CHARGE RATE The Capital Charge rate that this Statement of Intent is based on is 7.5% - no change from 2006/07. A FINANCIAL OVERVIEW FOR 2007/2008 The annual appropriation sought for Vote Defence Force in 2007/08 total $1, million. This is intended to be spent as follows: $1, million (97.9% of the Vote) on the Navy, Army, and Air Force to provide the Government with a range of military forces to protect and advance the security and interests of New Zealand. These forces are held at appropriate levels of capability and preparedness to protect New Zealand s territorial sovereignty and to contribute to regional and global security efforts. Most of these forces will also contribute a range of services to other government departments and the community when not committed to operations. The breakdown by Service is as follows: - Navy: $ million (32.1% of the Vote); - Army: $ million (37.0% of the Vote); and - Air Force: $ million (28.8% of the Vote). $ million (0.6% of the Vote) on military policy development, coordination and advice to the Government. $ million (0.7% of the Vote) on the Miscellaneous Support Activities that include the Mutual Assistance Programme, support for New Zealand Cadet Forces, training of Limited Service Volunteers, and the provision of Service Museums. $ million (0.8% of the Vote) for military hydrography, and the provision of hydrographic services to Land Information New Zealand (LINZ). NZDF 2007 Statement of Intent 166

167 In addition to the above, Vote Defence Force contains a Multi-Year Appropriation (MYA) of $ million for the three-year period 2005/ /08. This MYA is to fund the expense of Operationally Deployed Forces. The NZDF expects to recognise about $17 million in third party revenue (Revenue Department and Revenue Other) in 2007/08. EXPLANATION OF OUTPUT COST VARIANCES BETWEEN 2006/2007 AND 2007/2008 Departmental Outputs Appropriations for the purchase of NZDF department outputs for the year ending 30 June 2008 include the following Cabinet-approved funding changes that were considered as New Initiatives during the 2007 Budget process: Annual Appropriations: An increase of $ million in 2007/08, and outyears, being the third year funding package under the Defence Sustainability Initiative (DSI). This increase in funding will go towards, primarily, sustainment of personnel growth, future personnel growth, operating costs, depreciation impacts associated with new equipment, and continuation of the maintenance upgrade of NZDF infrastructure. An increase of $1.120 million in 2007/08 in response to the Joint Working Group Report on Concerns of Viet Nam Veterans. This funding, as part of the Cabinetagreed funding package dealing with the concerns of Viet Nam Veterans, will contribute to the initiatives agreed in the MOU signed by the Crown with Ex-Vietnam Services Association and the Royal New Zealand Returned Services Association can be delivered. An increase of $1.900 million in 2006/07 only to reimburse personnel in receipt of overseas allowance income newly recognised as assessable for income tax purposes. An adjustment (without overall financial impact) to provide for transfers between appropriated NZDF Output Expense values to reflect changes to the Defence Costing System model. Multi-Year Appropriations: See the MYA table on page 146. Reasons for Change The departmental appropriations sought by Vote Defence for 2007/08 exceed those for 2006/07 by some $128 million ($163 million if the MYA for Output Expense Operationally Deployed Forces is taken into account). The following table explains the most significant differences between NZDF Output Expenses for 2007/08 (Main Estimates) and the 2006/07 Supplementary Estimates (all figures GST Exclusive and rounded). The table takes the 2007/08 New Initiative funding (Year three DSI funding) into account. 167 NZDF 2007 Statement of Intent

168 Output Expense Military Policy Development, Coordination and Advice Naval Combat Forces Naval Support Forces Mine Counter Measures (MCM) and MCM Diving Forces Naval Patrol Forces Military Hydrography, and Hydrographic Data Collection and Processing for LINZ Land Combat Forces Land Combat Support Forces Land Combat Service Support Forces Special Operations Forces Naval Helicopter Forces Maritime Patrol Forces Fixed Wing Transport Forces Rotary Wing Transport Forces Explanation / Comment for Expense Increase / Decrease The decrease reflects the budget reduction for the one-off operating costs of the new Defence House during 2006/07. The decrease mainly reflects a redistribution of personnel costs with the manning of the new protector vessels. The increase mainly reflects the increased running costs and depreciation as the new MRV (HMNZS CANTERBURY) becomes fully operational. Expense Increase or (Decrease) $ million The increase reflects capital charge changes. 3 The increase reflects the increased personnel, maintenance and running costs, depreciation and capital charge as the new OPVs/IPVs gradually become operational in FY 2007/08. The increase reflects operating increases and cost model changes for this output. The increase mainly reflects the shift of personnel, operating, depreciation and capital charge for Queen Alexandra s Mounted Rifles (QAMR) - previously attributed to Land Combat Support Forces - and the full operational costs of the Light Armoured Vehicles (LAVs), together with their share of overhead costs. The decrease reflects the shift of personnel, operating, depreciation and capital charge for QAMR to Land Combat Forces. The increase mainly reflects the higher depreciation costs arising from equipment attributed to this output. The increase reflects a combination of capital charge, and cost model and DSI increases associated with personnel, operating and depreciation changes for this output. The decrease reflects mainly operating reductions for this output. The decrease mainly reflects changes to the output attribution model with all costs related to RNZAF Ohakea now directed to Rotary Wing Transport Forces. The increase reflects changes to the output attribution model for increased personnel and operating costs for the C130 Hercules and Boeing 757 aircraft. The increase reflects changes to the output attribution model with all costs related to RNZAF Ohakea now directed to Rotary Wing Transport Forces. Miscellaneous Support Activities The increase reflects operating increases for this output. 1 Total Change For Annual Appropriations Operationally Deployed Forces Multi Year Appropriations - Difference The increase reflects current apportionment of MYA funding between 2006/07 and the final year of the MYA. Total Appropriation Change 163 (1) (19) (15) 5 4 (1) (7) NZDF 2007 Statement of Intent 168

169 A breakdown of the cost changes for each of the NZDF Output Expenses in the above table is as follows: Output Expense ($ Million) Military Policy Development Naval Combat Forces Naval Support Forces MCM & MCM Diving Forces Naval Patrol Forces Supp Estimates 2006/07 Capital Charge (1) Project Protector (2) Operating /Capital Swap (3) Budget / Model Changes (4) DSI Increment (5) Main Estimates 2007/ Hydrography Land Combat Forces Land Combat Support Forces Land Combat Service Support Forces Special Operations Forces Naval Helicopter Forces Maritime Patrol Forces Fixed Wing Transport Forces Rotary Wing Transport Forces Misc Support Forces Totals: 1, , NZDF 2007 Statement of Intent

170 Notes: (1) The Budget 2006 decisions to meet the cost of Capital Charge attributable to earlier Capital Injections, and other minor changes. (2) The Budget 2005 decision to provide for Project Protector (new vessels for the Navy). (3) 2006/07 reduction (results in comparable increase in 2007/08) achieved through depreciation savings. (4) Changes arising from budget movements and output cost model amendments. (5) Defence Sustainability Initiative (DSI) increment (2007/08) as agreed in Budget Operating / Capital Swap Appropriations for the year ending 30 June 2007 include approval for an Operating to Capital Swap of $ million to 2007/08 funded from depreciation savings from 2006/07. Other than some minor adjustments to better describe what some outputs deliver, no changes have been made to the NZDF Output Expense structure for 2007/08. The output specifications associated with the new vessels under Project Protector (the two Offshore Patrol Vessels and four Inshore Patrol Vessels) show forecast sea days based on the expected delivery dates of those vessels - as at 1 April Any changes to delivery dates beyond the control of the NZDF will affect the forecast sea days. NZDF 2007 Statement of Intent 170

171 STATEMENT OF FORECAST FINANCIAL PERFORMANCE FOR THE YEAR ENDING 30 JUNE /6/07 30/6/07 30/6/08 Supp. Estimates (2) $000 Estimated Actual (1) $000 Forecast (1) $000 REVENUE Crown Department Other Interest 1,810,031 8,954 7, ,810,031 8,954 7, ,975,271 9,064 8, Total operating revenue 1,827,049 1,827,049 1,992,661 EXPENDITURE Personnel costs Operating costs Depreciation Amortisation and Impairment on Intangible Assets Capital charge 651, , ,428 2, , , , ,428 2, , , , ,018 2, ,232 Total output expenses 1,826,939 1,826,939 1,992,561 Gain / (Loss) on discontinued operation 2,700 2,700 0 Total expenses 1,829,639 1,829,639 1,992,561 Net surplus / (deficit) (2,590) (2,590) 100 Note: (1) Prepared under NZIFRS provisions. (2) GAAP values under NZIFRS format provisions. 171 NZDF 2007 Statement of Intent

172 STATEMENT OF ESTIMATED FINANCIAL POSITION AS AT 30 JUNE 2007 (AND FORECAST FINANCIAL POSITION AS AT 30 JUNE 2008) 01/7/06 30/6/07 30/6/08 Actual Financial Position (1) $000 Estimated Actual (1) $000 Forecast (1) $000 TAXPAYERS FUNDS General funds Revaluation reserve On transition to IFRS 3,214,004 1,285,919 (1,491) 3,689,625 1,284, ,817,210 1,284,507 0 Total taxpayers funds 4,498,432 4,974,132 5,101,717 Represented by: CURRENT ASSETS Cash and Bank Balances Debtors and Receivables Debtor Crown Prepayments to the MoD Prepayments - Other Inventories 14,792 12,396 63, ,497 34,924 91,655 40,730 8, , ,847 32,000 95,542 33,139 8, ,714 32, ,690 Total Current Assets 650,356 1,053, ,477 NON-CURRENT ASSETS Property, Plant and Equipment Intangible Assets Inventories 3,888,552 5, ,944 3,931,082 13, ,856 4,146,687 19, ,898 Total Non-Current Assets 4,041,059 4,100,160 4,328,207 Total Assets 4,691,415 5,154,001 5,267,684 CURRENT LIABILITIES Creditors and payables Provisions Provision for payment of surplus to the Crown Provision for Employee Entitlements 111,558 8, , ,280 6, ,491 93,768 6, ,491 Total Current Liabilities 141, , ,847 NON-CURRENT LIABILITIES Provision for Employee Entitlements 51,313 51,500 44,120 Total Liabilities 192, , ,967 NET ASSETS 4,498,432 4,974,132 5,101,717 Note: (1) Prepared under NZIFRS provisions. NZDF 2007 Statement of Intent 172

173 STATEMENT OF FORECAST CASH FLOWS FOR THE YEAR ENDING 30 JUNE /6/07 30/6/07 30/6/08 Supp. Estimates (2) $000 Estimated Actual (1) $000 Forecast(1) $000 CASH FLOWS - OPERATING ACTIVITIES Cash provided from: Supply of outputs to: - Crown - Departments - Other 1,735,335 19,307 1,063 1,735,335 19,307 1,063 2,113,059 9,064 8,226 Cash applied to: Produce outputs: - Personnel and Operating - Capital Charge 1,755,705 1,755,705 2,130,349 (1,233,523) (346,898) (1,233,523) (346,898) (1,294,091) (376,232) (1,580,421) (1,580,421) (1,670,323) Net cash inflow / (outflow) from operating activities 175, , ,026 CASH FLOWS - INVESTING ACTIVITIES Cash provided from: Interest Receipt Sale of Property, Plant and Equipment Cash disbursed for: Purchase of Property, Plant and Equipment Ministry of Defence Prepayments 110 4,156 (138,526) (509,267) 110 4,156 (138,526) (509,267) (203,497) (385,183) Net cash inflow / (outflow) from investing activities (643,527) (643,527) (588,580) Net cash from operating and investing activities (468,243) (468,243) (128,554) CASH FLOWS - FINANCING ACTIVITIES Net cash inflow / (outflow) from financing activity OTHER ACTIVITIES Capital Contribution Repayment of surplus to the Crown GST on output to the Crown GST paid / refunded to IRD 479,812 (131) 226,254 (211,754) 479,812 (131) 226,254 (211,754) 127,585 (110) 246,909 (253,421) Net Increase / (Decrease) in cash held 25,938 25,938 (7,591) Add opening cash 14,792 14,792 40,730 Closing cash 40,730 40,730 33,139 Note: (1) Prepared under NZIFRS provisions. (2) GAAP values under NZIFRS format provisions. 173 NZDF 2007 Statement of Intent

174 RECONCILIATION OF NET SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES FOR THE YEAR ENDING 30 JUNE /6/07 30/6/07 30/6/08 Supp Estimates $000 Estimated Actual $000 Forecast $000 Net operating surplus / (deficit) (2,590) (2,590) 100 Add / (less) non-cash items: Amortisation and Impairment on Intangible Assets Depreciation 2, ,428 2, ,428 2, ,018 Other Items Other Non Cash items Prepayments to the Ministry of Defence (24,210) 306,267 (24,210) 306,267 (9,968) 37,057 Total Other Items 282, ,057 27,089 Add / (less) movements in working capital items: (Increase) / Decrease in inventories (Increase) / Decrease in receivables and prepayments Department (Increase) / Decrease in receivables and prepayments Other Increase / (Decrease) in payables - Department Increase / (Decrease) in payables - Other Increase / (Decrease) in provisions - Other (12,799) (369,693) (3,967) 14,500 (25,778) (2,115) (12,799) (369,693) (3,967) 14,500 (25,778) (2,115) (16,190) 116,921 0 (6,512) 0 0 Working capital movements - net (399,852) (399,852) 94,219 Net cash flows from operating activities 175, , ,026 NZDF 2007 Statement of Intent 174

175 FORECAST STATEMENT OF MOVEMENT IN TAXPAYERS' FUNDS FOR THE YEAR ENDING 30 JUNE /6/07 30/6/08 Taxpayers' funds as at 1 July Adjustments Adjusted opening taxpayers funds Net surplus / (deficit) Increase/(Decrease) transferred from revaluation reserves Increase/(Decrease) in revaluation reserves Supp. Estimates $000 4,498, ,498,432 (2,590) 0 (1,412) Forecast $000 4,974, ,974, Total recognised revenues and expenses for the year (4,002) 100 Capital contributions Provision for repayment of surplus to the Crown 479,812 (110) 127,585 (100) Taxpayers' Funds as at 30 June 4,974,132 5,101,717 FORECAST DETAIL OF PROPERTY, PLANT AND EQUIPMENT (PPE) BY CATEGORY AS AT 30 JUNE /6/07 FORECAST POSITION AS AT 30 JUNE 2008 Property, Plant and Equipment (PPE) Estimated Actual Net Carrying Value $000 At Cost and Valuation $000 Accumulated Depreciation $000 Total Carrying Amount of PPE $000 Land Buildings Specialist Military Equipment Plant and Equipment 386, ,441 2,475, , , ,827 3,586, ,855-72, , , , ,441 2,706, ,392 Total PPE 3,931,082 5,282,537 1,135,850 4,146, NZDF 2007 Statement of Intent

176 STATEMENT OF OBJECTIVES SPECIFYING THE FINANCIAL PERFORMANCE FORECAST FOR OUTPUT EXPENSES FOR THE YEAR ENDING 30 JUNE 2008 The NZDF is committed to provide output expenses under Vote Defence Force in 2007/2008 that meet the requirements of the Minister of Defence in terms of their nature, quantity and quality specifications, timeliness and cost. SUMMARY OF NZDF OUTPUT EXPENSES (Vote Defence Force) [Output Operating Statements: 2007/2008] NZDF Output Expenses General Description Revenue Crown $000 Revenue Dept / Other $000 Total Expenses $ Military Policy Development, Coordination and Advice 2. Naval Combat Forces 3. Naval Support Forces 4. MCM and MCM Diving Forces 5. Naval Patrol Forces Provision of advice to the Minister of Defence on military contributions to New Zealand s foreign policy and military responses to contingencies. This includes military intelligence, responses to ministerial correspondence, select committee and parliamentary questions, Official Information Act inquiries, and Ombudsmen correspondence. Provision of Frigates (HMNZ Ships TE KAHA and TE MANA) prepared to conduct maritime operations and to contribute support services to the community. The provision of the Fleet Replenishment Ship (HMNZS ENDEAVOUR) and Multi-Role Vessel (HMNZS CANTERBURY) prepared to conduct maritime logistic support and amphibious sealift operations for deployed military forces, and contributions by the Naval Support Forces to a range of services provided to Government and the community. Provision of the MCM Support Vessel, HMNZS MANAWANUI, with HMNZS KAHU as backup vessel, prepared to conduct MCM operations, provision of an Operational Diving Team prepared to support MCM operations and to conduct independent diving tasks, and to contribute some support services to the community. The provision of Offshore and Inshore Patrol Vessels (OPVs and IPVs) prepared to conduct maritime operations and operations in support of MAO&T for the security and protection of New Zealand s economic border and Exclusive Economic Zone (EEZ). The OPVs will also be prepared to conduct sovereignty and resource protection patrol operations in the Southern Ocean, Ross Dependency, South Pacific region, and further afield when directed. 11, , ,971 2, ,454 94, ,502 37, ,687 84, ,221 NZDF 2007 Statement of Intent 176

177 NZDF Output Expenses General Description Revenue Crown $000 Revenue Dept / Other $000 Total Expenses $ Military Hydrography, and Hydrographic Data Collection and Processing for LINZ 7. Land Combat Forces 8. Land Combat Support Forces 9. Land Combat Service Support Forces 10. Special Operations Forces 11. Naval Helicopter Forces 12. Maritime Patrol Forces 13. Fixed Wing Transport Forces 14. Rotary Wing Transport Forces Provision of HMNZS RESOLUTION, specialist personnel and support infrastructure to conduct military hydrography, and hydrographic data collection and processing that meets contractual commitments to LINZ. Provision of Land Combat Forces (command, control and intelligence, and infantry and reconnaissance force elements) prepared to conduct land operations, and to contribute support services to the community. Provision of Land Combat Support Forces (artillery, engineers, communications and military police force elements) prepared to conduct land operations, and to contribute support services to the community. Provision of Land Combat Service Support Forces (transport, medical, supply, repair and movements force elements) prepared to support land operations, and to contribute support services to the community. Provision of Special Operations Forces prepared to conduct special and counter-terrorist Operations, and the provision of a New Zealand national response for Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal (CBRE IEDD) that threaten public safety or national interests. Provision of No 6 Squadron RNZAF (SH-2G Seasprite helicopters) prepared to the conduct naval helicopter operations. These operations range from support to the Naval Combat Forces, the Naval Support Forces and the Naval Patrol Forces, to the conduct of limited independent operations. Provision of No 5 Squadron RNZAF (P3-K Orion aircraft) prepared to conduct maritime surveillance of New Zealand s EEZ, the Pacific region and the Southern Ocean, and to conduct search and rescue missions and maritime air operations, and to contribute support services to the community. Provision of No 40 Squadron RNZAF (Boeing and C-130 Hercules aircraft) prepared to conduct strategic and tactical air transport operations, including aeromedical evacuation, and to contribute support services to the community. Provision of No 3 Squadron RNZAF (Iroquois helicopters) prepared to conduct tactical air transport, including aeromedical evacuation, and counterterrorist operations, and to contribute support services to the community. 9,321 5,815 15, , , , , , ,257 51, ,986 84, , , , ,619 1, , , , NZDF 2007 Statement of Intent

178 NZDF Output Expenses General Description Revenue Crown $000 Revenue Dept / Other $000 Total Expenses $ Miscellaneous Support Activities Provision of the NZDF infrastructure and planned support to regional defence forces and the New Zealand community. It includes support provided under the auspices of the Mutual Assistance Programme (MAP), support for the New Zealand Cadet Forces, training of Limited Service Volunteers, and the provision of Service Military Museums. 12,339 1,350 13,689 Sub Total 1,893,699 16,013 1,909, Operationally Deployed Forces Provision of deployed force elements for military tasks, including the commitments agreed by Government under which the NZDF contributes to peace support and other operations conducted in support of the United Nations and other international agencies. It includes the provision of observers, advisers, instructors, headquarters staff, and complete force elements and contingents, when necessary, to operational missions, and the conduct of any additional training required to meet any special conditions or the higher threat levels anticipated. Operationally Deployed Forces has been placed under a three year MYA (see MYA table on page 144). However, for accounting purposes the indicative annual cost (for 2007/08) needs to be recorded as shown below: 74, ,318 Total Vote Defence Force 1,968,217 16,813 1,985,030 Note: For consistency with the Scope statements for each NZDF Output Expense within the Estimates of Appropriations (Vote Defence Force) it is understood that the Description statements of the NZDF Output Expenses/Outputs (in all cases) in the table above are qualified by the limitation or scope in accordance with the NZDF Output Plan specifications. NZDF 2007 Statement of Intent 178

179 STATEMENT OF DEPARTMENTAL CAPITAL EXPENDITURE TO BE INCURRED FOR THE YEAR ENDING 30 JUNE 2008 (In accordance with Section 24 of the Public Finance Act 1989, as amended by the Public Finance Amendment Act 2004) Departmental Capital Expenditure ($000) Forecast 2007/08 Estimated Actual 2006/07 Budget 2006/07 Actual 2005/06 Actual 2004/05 Actual 2003/04 Actual 2002/03 Ministry of Defence Prepayments - Note 1 385, , , , , , ,874 Purchase of Fixed Assets - Note 2 203, , ,526 97,640 58,358 57,077 63,714 Total Capital Expenditure 588, , , , , , ,588 Less Sale of Fixed Assets 0 4,156 4,156 64,694 2,087 32,464 14,938 Net Capital Expenditure 588, , , , , , ,650 Note 1: Government agreed in June 2002 to provide for a NZDF modernisation programme that would be achieved through the Long Term Development Plan (LTDP). A previously established prepayment regime requires that the Ministry of Defence (MoD) be reimbursed twice annually for costs incurred while acquiring Specialist Military Equipment (SME) on behalf of the NZDF. This has the effect of transferring non-departmental MOD capital expenditure to prepayments in the NZDF Statement of Financial Position until equipment is delivered and subsequently capitalized. The prepayments associated with the LTDP that are expected to be made by the NZDF to the MoD during 2007/08 comprise the following projects: Forecast Prepayments to the MoD $000 Outyear Forecast Prepayments to the MoD $000 P3 Orion Upgrade 44,157 C 130 Hercules Upgrade 44, /09 153,572 Maritime Patrol Vessels 142, /10 208,193 Tactical Communications Equipment /11 228,891 Helicopter Replacement Project 119,509 Light Armoured Vehicle 144 Boeing 757 Modification 29,638 Medium Range Anti Armour Weapon 3,045 Light Operational Vehicles (LOV) 1,403 Very Low Level Air Defence (VLLAD) System (Alerting and Cueing) 52 Total Prepayments 385, NZDF 2007 Statement of Intent

180 STATEMENT OF DEPARTMENTAL CAPITAL EXPENDITURE TO BE INCURRED (Continued) Departmental Capital Expenditure ($000) Forecast 2007/08 Note 2: The MoD acts as the purchasing agent of major items of SME and recovers those costs from the NZDF through a prepayments regime. The NZDF separately manages land, infrastructure, non-military vehicles and smaller SME projects. There are some 400 such projects anticipated to be undertaken during 2007/08, where the most significant of these include the following: NZDF Managed Fixed Asset Purchases $000 Fit-out and IT for new Joint Logistics Support Organisation 4,700 Frigate Short-Range Self Protection Capability 3,000 ANZAC Ship Asset re-balancing / Supplementation 4,700 Small Boat Tracking Capability of RNZN Vessels 3,400 Mine Counter Measures Evaluation Unit Training Equipment 3,000 Naval Base Power Generation and Reticulation Upgrade 7,000 Naval Base Fuel Installation Project 10,000 Waiouru Moving Target Range 3,900 New Gymnasium for Burnham Military Camp 3,700 Replacement Operational Equipment 3,300 Replacement Artillery and Mortar Fire Control System 3,400 Special Operations Equipment 4,200 Improvised Explosive Device Disposal Equipment 5,900 Ohakea consolidation - preliminary costs 10,000 Air Force Rotables 6,100 Other NZDF managed projects (each less than $3 million) 127,197 Total NZDF Fixed Asset Purchases 203,497 NZDF 2007 Statement of Intent 180

181 PART C Additional Information Organisation of the NZDF NZDF Personnel Statistics Audit and Assessment NZDF Operational Preparedness Reporting System (OPRES) Performance Indicators for NZDF Outputs 181

182 PART C - ADDITIONAL INFORMATION The information contained in this part of the Statement of Intent is intended to supplement the information provided in Parts A and B. ORGANISATION OF THE NZDF The five charts that follow show the outline organisations of Headquarters NZDF, the RNZN, the NZ Army, the RNZAF and Headquarters Joint Forces (NZ) as at 1 April Organisation Chart: HQ NZDF Chief of Defence Force Vice Chief of Defence Force Chief of Navy Chief of Army Chief of Air Force Commander Joint Forces New Zealand Corporate Finance Planning Development Strategic Commitments and Intelligence International Defence Relations Special Investigation Officer - Finance Plans - Finance - NZDF Treasury - Risk and Assurance Personnel - Policy - NZ Cadet Forces - Medical - Chaplain Services - Civilian HR Organisational Support Defence College Coordination Legal Services Veterans Affairs New Zealand (VANZ) (Semi-Autonomous Body) Director VANZ / Secretary for War Pensions Strategic Communications Public Relations Joint Logistics Support Organisation Corporate Services Communications and Information Systems Cross-Functional Projects Defence Technology Agency NZDF 2007 Statement of Intent 182

183 Organisation Chart: RNZN Chief of Defence Force Chief of Navy (1) Naval Staff (Wellington): - Navy Excellence HQ Joint Forces NZ - Personnel Commander Joint - Capability Forces NZ (2) - Corporate Services Maritime Component - Navy Reputation Management Commander - Financial Adviser (Navy) - Corporate Audit - Inspector General (Navy) Naval Combat Forces Deputy Chief of Navy (3) Naval Support Forces Mine Countermeasures (MCM) Naval Support Command (Auckland): and MCM Diving Forces - HMNZS PHILOMEL (Naval Base) - Fleet Support Naval Patrol Forces - Fleet Personnel & Training - Joint Geospatial Support Facility Hydrographic Forces - Hydrographic Business Unit Reserve Bases / Establishments: - HMNZS NGAPONA (Auckland) - HMNZS OLPHERT (Wellington) - HMNZS PEGASUS (Christchurch) - HMNZS TOROA (Dunedin) Notes: (1) CN retains full command of the RNZN and is responsible for managing the Navy s capability to deliver operational outputs. (2) COMJFNZ is responsible for the operational command of assigned force elements on operations and for mutually agreed joint and combined training. (3) Deputy Chief of Navy has operational command of Naval Support Command and Volunteer Reserve Divisions, excluding the Inshore Patrol Craft. (4) CAF has full command of the Naval Helicopter Forces (Seasprite helicopters). When ships flights are required to embark, operational command will be assigned to the Maritime Component Commander (MCC) who will in turn assign operational control to the ship s CO. The RNZAF is responsible for the training of RNZN Seasprite helicopter aircrew and the provision and training of Ship s Flights maintenance personnel, for operational employment by the RNZN. 183 NZDF 2007 Statement of Intent

184 Organisation Chart: NZ ARMY Chief of Defence Force Chief of Army (1) HQ Joint Forces NZ Commander Joint Forces NZ (2) Land Component Commander 2 Land Force Group (Linton) Army General Staff (Wellington): - Deputy Chief & Territorial Force Adviser - Corporate Services - Strategy Management - Recruiting - Capability Management - Human Resources Executive - Policy & Plans - Resources / Finance - Logistics Executive (Trentham) (including Base Depot Trentham) Trentham Regional Support Battalion 3 Land Force Group (Burnham) Army Training Group (Waiouru) Force Troops: - 1 st New Zealand Special Air Service Group (Papakura) - 1 st New Zealand Military Intelligence Company (Trentham) - Force Military Police Company (Trentham) Notes: (1) CA retains full command of the NZ Army and is responsible for managing the Army s capability to deliver operational outputs. (2) COMJFNZ is responsible for the operational command of assigned force elements on operations and for mutually agreed joint and combined training. NZDF 2007 Statement of Intent 184

185 Organisation Chart: RNZAF Chief of Defence Force Chief of Air Force (1) HQ Joint Forces NZ Commander Joint Forces NZ (2) Air Component Commander No 485 Wing RNZAF (Auckland) No. 3 Squadron (Iroquois and Sioux) (Ohakea) Air Staff (Wellington) Office of Deputy Chief of Air Force Personnel, Plans, Capability, Finance, Inspector General (Air), Legal (Air), Communications and Information Systems - Policy, Logistic Capability Logistics Group - Maintenance Wing (4) - Materiel Support Wing - Aeronautical: Engineering, Configuration and Supply No. 5 Squadron (Orion) (Auckland) Operational - Operational Support Wings: Auckland, Support Group Ohakea and Woodbourne No 6 Squadron (Seasprite) (5) (Auckland) (3) No. 40 Squadron (Auckland) Ground Training Wing (Woodbourne) (Hercules and Boeing 757) Training Group Flying Training Wing (Ohakea): (6) - No. 42 Squadron (King Air) Expeditionary Support - Pilot Training Squadron (Airtrainer) Squadron (Auckland) (7) - Central Flying School (Airtrainer) Integrated Mission Support Squadron (Auckland) (8) Notes: (1) CAF retains full command of the RNZAF and is responsible for managing the RNZAF s capability to deliver operational outputs. (2) COMJFNZ is responsible for the operational command of assigned force elements on operations and for mutually agreed joint and combined training. (3) CAF has full command of the Naval Helicopter Forces (Seasprite helicopters). When ships flights are required to embark, operational command will be assigned to the Maritime Component Commander (MCC) who will in turn assign operational control to the ship s CO. The RNZAF is responsible for the training of RNZN Seasprite helicopter aircrew and the provision and training of Ship s Flights maintenance personnel, for operational employment by the RNZN. (4) The Commander Logistics Group is located at Air Staff but commands units located in Wellington, Auckland, Ohakea and Woodbourne. (5) The Commander Operational Support Group is located at Ohakea and commands the three Operational Support Wings. (6) The Commander Training Group is located at Woodbourne and commands units located at Ohakea and Woodbourne. (7) Comprises Operational Communications and Information Systems, Air Movements, Air Security, and Deployable Bulk Fuel. (8) A centralised facility providing coordinated ground-based mission support to RNZAF Force Elements. 185 NZDF 2007 Statement of Intent

186 Organisation Chart: HQ JFNZ Chief of Defence Force HQ Joint Forces NZ Commander Joint Forces NZ (1) (2) Chief of Navy Chief of Army Chief of Air Maritime Component Commander Land Component Commander Air Component Commander Joint Command Division Office of COMJFNZ Office of the Chief of Staff Joint Coordination Branch Legal Section Inspector General Section Joint Plans / Development Division Joint Plans Branch Joint Training Coordination Branch Joint Requirements Evaluation & Development Branch Joint Operations Division Joint Intelligence Branch Joint Operations Branch Joint Communications & Information Systems Branch Joint EW Coordination Centre Maritime Intelligence Coordination Centre Joint Watch Centre Joint Movements Operations Centre Naval Control of Shipping Operations Centre Joint Support Division Joint Personnel Branch Joint Logistics Branch Joint Finance Branch NZ Defence Support Unit, South East Asia Health Operations Section Deployed Personnel Support Centre Note: (1) COMJFNZ is responsible for the operational command of assigned force elements on operations and for mutually agreed joint and combined training. (2) The COMJFNZ is also the Inspector General of the NZDF. NZDF 2007 Statement of Intent 186

187 PERSONNEL STATISTICS NZDF personnel numbers, as at 1 April 2007, are shown in the following table: Regular Non Regular Civilian Total HQ NZDF 257 (1) (3) 1005 HQ JFNZ 164 (2) Navy Army Air Force Totals: ,702 Notes: (1) HQ NZDF military personnel are already counted within the single Service totals. (2) HQ JFNZ military personnel are already counted within single Service totals. (3) HQ NZDF Civilian total includes Veterans Affairs New Zealand (25), Defence Technology Agency (56), and Locally Employed Civilians (LECs) overseas (27). The median length of current Regular Force service is: 5.5 years (not including previous service) years (including previous service). AUDIT AND ASSESSMENT The NZDF adheres to the five elements of performance measurement; namely, quantity, quality, timeliness, cost and, where applicable, location. With the exception of NZDF Output Expenses 1, 6, 15 and 16, where conventional measures are used, quantity concerns the force structure itself (i.e. personnel and equipment) which contributes directly to the output by providing operational forces (i.e. Navy ships, Army units and RNZAF aircraft) which can be called on for operational purposes. Quality, timeliness and location manifest themselves as the preparedness of the force element (actual Level of Capability) as defined within readiness (timeliness and quality), combat viability, deployability, and sustainability (quality) relative to specified Employment Contexts (location). Audit and assessment of the Defence Force is overseen by: and undertaken by: The Defence Evaluation Board The NZDF Audit and Risk Committee The Controller and Auditor General The Ministry of Defence Evaluation Division The NZDF Directorate of Risk and Assurance The Inspector General, NZDF 187 NZDF 2007 Statement of Intent

188 The single Service Chiefs, Commander Joint Forces New Zealand (COMJFNZ) and Operational Commanders / Component Commanders. The Controller and Auditor General provides Parliament with independent assurance through the audit of the NZDF Annual Report and occasional audits of aspects of the NZDF s performance in accordance with the Public Audit Act The Secretary of Defence has statutory responsibility for arranging for the assessment and audit of any function, duty or project of the Defence Force. Coordination between the MOD and the NZDF in this area is maintained through the Defence Evaluation Board, which comprises the CDF, the Secretary of Defence and a representative of the Controller and Auditor General. The Defence Evaluation Board approves the evaluation programme of work on behalf of the Minister. The Ministry of Defence Evaluation Division, while part of the Ministry, performs a statutorily independent function, as set out in the Defence Act The Evaluation Division carries out assessments and audits of any function, duty or project of the NZDF, under s.24(2) of the Defence Act. In particular, the Ministry of Defence Evaluation Division conducts Output Evaluations which examine NZDF Outputs for consistency with defence policy, and whether the Outputs are being delivered in a quantity and quality that meet policy objectives. The statutory role of the Evaluation Division also includes audits of the Ministry s activities relating to the procurement of major military equipment. The NZDF Audit and Risk Committee (ARC) is chaired by the Vice Chief of Defence Force (VCDF). The NZDF ARC is a forum for the consideration, discussion and communication of NZDF risks. It monitors the efficiency and effectiveness of internal control and risk management activity across the NZDF. The NZDF Directorate of Risk & Assurance provides independent assurance to the CDF, the single Service Chiefs and COMJFNZ that the NZDF has in place effective and efficient systems for the management of risk. The Director Risk and Assurance reports to the CDF and the ARC. The COMJFNZ, as Inspector General of the NZDF, provides military capability evaluation through the NZDF Operational Preparedness Reporting System (OPRES). Output performance delivery is evaluated in both quantity (force structure) and quality (preparedness) terms with emphasis on the quality dimension. The Inspector General reports the level of capability of force elements for military tasks as designated within the NZDF Output specifications against the Key Measurement Areas of Preparedness. The three Service Chiefs, the COMJFNZ and Operational Commanders / Component Commanders are responsible for attaining the activity levels required to achieve their levels of capability and response times; that is, the process measures. Together, the Inspector General/COMJFNZ and single Service Chiefs are responsible for reviewing activity levels and levels of capability to ensure there is a consistent link between the two. The Inspector General also monitors and evaluates the NZDF OPRES and provides an independent audit function of the OPRES as an evaluative system. The single Service Chiefs, COMJFNZ, and Operational Commanders / Component Commanders conduct Operational Evaluations of units in accordance with their own programmes. NZDF 2007 Statement of Intent 188

189 In respect of Veterans Affairs New Zealand (VANZ), the Special Investigation Officer to CDF [SIO (CDF)], assisted, as required, by the Director Risk and Assurance (DRA), monitors that the Semi-Autonomous Body accountability guidelines, as applicable to the VANZ, are complied with. OPERATIONAL PREPAREDNESS AND REPORTING SYSTEM (OPRES) The measurement of the performance of operationally deployed forces (i.e. activated force elements) is achieved in terms of successful completion of the task or mission within the resources allocated. For those outputs that are not activated within a given year, OPRES provides for the evaluation and reporting of the operational preparedness of NZDF force elements at DLOC. OPRES, which is part of the wider Defence Performance Management System (DPMS), reports to CDF on the standards reached against the standards set as a measure of output delivery. OPRES also now informs CDF and the Minister of Defence on the forecast capability of the force elements of the NZDF. The NZDF Inspector General monitors and evaluates the OPRES that provides data on the preparedness of designated force elements at assigned Levels of Capability and Response Times for activation as required. NZDF operational force elements report their preparedness against the output specifications. Each force element reports at six-monthly intervals. Special reports may also be generated to notify an unexpected change to the preparedness state. Underpinning OPRES is a broad regime of evaluations, including assessments carried out during military exercises, competitions, routine tests of achievement and proficiency, and operational, technical and administrative inspections. Whenever possible, external evaluation by members of allied forces is also arranged. In addition, OPRES provides data for two other important functions. Firstly, it assists in the corporate management of resources to ensure the efficient delivery of NZDF outputs, and, secondly, the results of OPRES inform the processes within the Capability Management Framework (CMF). In this latter respect, any standing deficiencies in output delivery are examined during the on-going development of the NZDF s future capability. The NZDF OPRES continues to be refined. Recent improvements include the requirement for the system to be more forward looking (future predictive) and to more clearly identify the impact of risks involved should the force elements be required to deploy on operations. PERFORMANCE INDICATORS FOR NZDF OUTPUTS As noted earlier, Employment Contexts and the military tasks to be performed under each (the Mission Essential Tasks) are the basis against which OLOCs for force elements are set and from which, taking into account Response Time, DLOCs are set. DLOCs for force elements are expressed through the four components of preparedness (Readiness, Combat Viability, Deployability and Sustainability) that are used as the Key Measurement Areas (KMAs) within OPRES. The OPRES performance measurement framework uses Key Performance Indicators (KPIs) within each KMA for the three Services. Indicative KPIs are summarised in the following table: 189 NZDF 2007 Statement of Intent

190 INDICATIVE KEY PERFORMANCE INDICATORS Key Performance Indicators (1) Performance Measures Readiness DLOC Establishment Filled. % of Unit s DLOC Establishment that is filled. Personnel Continuity. % of personnel turnover in the last six months. Key Personnel Appointments Filled Over Time. % of key appointments filled by qualified personnel. Equipment Serviceability. Individual and Unit Level Training Completed. Mission Critical Platform/Combat System/DLOC Aircraft Availability. Sufficiency of RTA Equipments, Expendable Stocks and Munitions. Combat Viability % of Unit Establishment platforms/equipments that are serviceable. % of individual/unit Readiness Training Activities (RTA) completed within reporting period % of programmed operating time in which the ship s platform/combat systems were available/% of DLOC aircraft available. % of stocks and live/practice munitions available for required Readiness Training Activities. Adequacy of Tactics, Techniques and Procedures. Collective Proficiency in Employment Context (EC) Tasks. Standardization. Mission Critical Equipment Operational Viability or Suitability. Equipment Reliability for Mission Critical Systems. Deployability % mission success and element survivability enabled by tactics, techniques and procedures. % of collective/joint/ combined exercises covering EC essential tasks completed. The degrees of interoperability allowed by the level of standardization (as defined by NATO, ASIC and ABCA) with friendly forces for the EC METs. % mission success enabled (or restrictions on mission) by technology or equipment performance. % degradation of EC essential tasks at OLOC operating tempo due to equipment reliability. EC Specific OLOC Generation and Contingency Plans. Critical Equipment Deficiency Correction within Response Time. Sufficiency of Deployment Expendable Stocks and Munitions. Serviceability and Availability of OLOC Generation Equipments. Availability of OLOC Generation Personnel Plans distributed, reviewed and validated current (annually). % of Critical Deficiencies that can be corrected within Response Time. % of live/practice munitions and stocks available for OLOC generation and retention, including the Operational Viability Period (OVP) % of OLOC generation equipments serviceable and available. % of Personnel available for OLOC generation. NZDF 2007 Statement of Intent 190

191 Key Performance Indicators (1) Performance Measures Sustainability Availability of Replacement Personnel. % of Service personnel to provide for sustainment. Key Equipment Repairability Availability of Sustainment Equipment, Stocks and Munitions. Availability of Replacement Equipment Materiel Supply Times Ability to Achieve and Sustain Operating Tempo to Achieve Tactical Objectives % of operating time during which Force Element availability is degraded at OLOC operating tempo by repair times. % of sustainment equipment, stocks and munitions avail or obtainable within RT + OVP. % of replacement equipment avail or obtainable within RT + OVP. % of operating time during which Force Element availability is degraded at OLOC operating tempo by supply times % operating tempo able to sustain throughout duration of deployment (due to aircraft/equipment serviceability and availability). Notes: 1. These KPIs are indicative of the types of measures used. The actual measures used by each of the single Services will vary. The Service-specific KPIs and their Performance Rating Scales are detailed in appropriate directives. 2. Service KPIs are used at the lower end (unit level) of OPRES. As in the case of OPRES, the aggregated KPIs, via the Statement of Service Performance, are reported externally in the NZDF Annual Report. MEASURES FOR COMMUNITY SUPPORT SERVICES Some community support services can be programmed, while others, by their very nature, cannot be predicted. Although their delivery is not a measure of output performance, the objective is always to provide these services to the satisfaction of the organisation requesting assistance. Performance will be assessed from reports by the organisation supported, and by the appropriate commander on the military effectiveness of the units employed. These services provide links to the public, utilisation of resources and skills, and an indication of the trained state of the units involved. Therefore, the delivery of support services can contribute indirectly to the assessment of output performance. 191 NZDF 2007 Statement of Intent

192 NZDF 2007 Statement of Intent 192

193 Veterans Affairs-Defence PART D Veterans Affairs New Zealand Statement of Intent Vision Core Values Mission The Planning Environment Expectations and Direction Roles and Responsibilities Outcomes Specific Initiatives Output Specifications: Vote Veterans Affairs - Defence 193 VANZ 2007 Statement of Intent