Annual Report for the year ended 30 June 2001
Overview
Secretary of Defence's overview
Introduction
The key objective for the Ministry over the last twelve months has been the implementation of the Government's defence policy. This was announced in the June 2000 Defence Policy Framework and given effect in May 2001 by the Government Defence Statement - A Modern, Sustainable Defence Force Matched to New Zealand's Needs. The Defence Policy Framework was substantially based on the recommendations of the Foreign Affairs, Defence and Trade Select Committee Report Defence Beyond 2000.
These announcements of the Government's defence policy have been central in guiding the Ministry in its three roles. These are: to provide timely high quality advice to help the Government make well-informed judgements on the defence of New Zealand and its interests; to arrange for the acquisition of significant items of military equipment needed to meet capability requirements; and to conduct evaluations of the New Zealand Defence Force (NZDF).
The crisis in East Timor and the overthrow of democratically elected governments in Solomon Islands and Fiji continued to impact on the shaping of defence policy. Events in Asia are also being closely monitored with ongoing religious, ethnic and political violence in Indonesia of particular concern. Closer to home, the NZDF worked with Fisheries and Customs to counter the smuggling of illegal goods and threats to New Zealand's fishery resources.
Over the past year, the Ministry bedded down changes in its operation as an organisation and in its relationship with the NZDF. Combining the Ministry's public relations and policy units with those of the NZDF has proved to be a success, with outputs being improved in both cases.
The Ministry was also able to contribute to the Government's plans for rebuilding the NZDF. Major milestones in the light armoured vehicles and tactical communications acquisitions projects were reached when the Government signed contracts for the purchase of the Canadian General Motors LAV III vehicles and tactical radios. As there was, however, some concern about the process followed for acquisition of the LAVs, I requested that the Auditor General undertake an audit of the process itself.
Policy and Planning
Development of defence and security policy is a key activity for the Ministry. The Secretary of Defence is the principal civilian advisor on defence matters to the Minister of Defence and other Ministers. The Chief of Defence Force is the principal military advisor. The Secretary and Chief of the Defence Force must work closely together in the formation of defence and military policy.
Last year was the first full year of operation of the Defence Policy and Planning Unit (DPPU). The DPPU combined the Ministry of Defence and NZDF policy groups into an integrated unit providing separate advice to the Chief of Defence Force (on military operational matters) and to me. The integration of policy functions has been a success. It has created a better informed stream of policy advice from the joint expertise and critical mass of the combined policy units. It has also led to improved external relationships, as other agencies now have to go to only one group for defence policy information and liaison.
The May 2001 Government Defence Statement
The DPPU's work has been dominated by the reviews that lead to the release, on 8 May 2001, of the Government Defence Statement - A Modern, Sustainable Defence Force Matched to New Zealand's Needs. This was the key defence document released over the past year. It was accompanied by the release of other documents: the Maritime Patrol Review; the Air Combat Review; the Land Forces and Sealift Review; and associated cabinet papers.
The Government's core requirement in rebuilding the NZDF is for well-equipped, combat trained land forces, which are also able to act as effective peacekeepers, supported by the Navy and Air Force. This approach is reflected in the decisions made by the Government, which were as follows:
A Joint Approach
- The acquisition of a modern joint command and control system to support the Joint Force Operational Headquarters that began operation at Trentham in July 2001.
- Reorganisation and rationalisation of the NZDF and single services to reflect a better, joint approach to planning and to managing the NZDF.
- A new Maritime Co-ordination Centre to be established and co-located with the Joint Force Operational Headquarters. It will be responsible for integrating the work of all agencies to ensure there is a comprehensive national approach to managing maritime risks.
A Modernised Army
- The current structure of the Army, based on two light infantry battalions within a brigade framework, is to be maintained. The two battalions provide a capacity to sustain a 600-900 person commitment for a year or a 900-1,200 person commitment for six months. These levels can be enhanced by the deployment of Territorials when and where necessary.
- The Government will address the issues surrounding service in the Territorial Army to make it more attractive to both Territorials and employers.
- The acquisition of new armoured vehicles, tactical communications, and light operational vehicles is underway. These acquisitions will address major equipment deficiencies in the Army.
- Other investment requirements to be considered include: close in fire support; vehicles and sensors to equip the reconnaissance companies; command and control equipment; and combat service support equipment.
- Other capability issues to be addressed are engineer support, artillery, air defence and electronic warfare.
A Practical Navy Fleet
- The two ANZAC frigates will continue in service.
- HMNZS Charles Upham has been sold.
- The requirement for an appropriate sealift capability will be considered as part of a review of the composition of the maritime surface fleet which will also examine how to best meet civilian requirements for coastal and mid-range offshore capabilities.
- Work will proceed on identifying a suitable multi-role vessel, with long distance and Southern Ocean capabilities, to be phased in as the Canterbury is retired.
- Consideration will be given to acquiring additional combat and detection equipment for the new Seasprite naval helicopters, the first two of which arrived in New Zealand in June.
A Refocused and Updated Air Force
- The C-130 Hercules fleet will be upgraded or replaced.
- The Iroquois helicopter fleet will be upgraded or replaced.
- A study will be conducted as soon as possible to identify the options for replacing the B727 transport planes, including ownership, leasing or chartering.
- The Orion fleet will be retained, and provided with a limited upgrade, using good quality commercial systems wherever possible.
- There will be an investigation into the feasibility of equipping the Orions with a missile capability.
- A study will be undertaken to determine the best options for short and medium range air patrol.
- The air combat force will be disbanded.
A funding commitment to provide financial certainty
- There will be modest increases in the net operating funding for defence over the next ten years. Total capital investment over the same period will exceed two billion dollars.
Capability Studies
As well as the work undertaken on the four capability studies for the May defence statement, work continued on the Special Operations Forces Study. This study will define the capability requirements for Special Operations Forces and will provide a basis for future investment decisions in the area. Special Operations Forces have an inherent high utility in operations that are diverse and involve flexible capabilities.
As a result of the Government's May defence statement, the Maritime Forces Review was initiated to determine the optimum composition of the RNZN surface fleet. In addition to military and foreign policy related uses of naval vessels, the review will: identify a suitable type of multi-role vessel, with long distance and Southern Ocean capabilities and appropriate sealift capability, to replace HMNZS Canterbury; and examine how best to meet civilian and military requirements for coastal and mid-range patrol.
Other Policy and Capability Projects
In addition to work on the Government's defence statement, the DPPU also undertook project work in other areas. A review on information operations was substantially completed. As part of the Government's review of its relations with the South Pacific, a review of New Zealand's Pacific defence policy was commenced. The Ministry has also sought to increase its involvement in arms control and disarmament and has provided input to the Ministry of Foreign Affairs and Trade on issues such as small arms proliferation and conventional arms control.
International Defence Relations
Developments in the Asia-Pacific region influence New Zealand's security and well-being. New Zealand continues to play an active role in support of regional security and stability. The amalgamated International Defence Relations Branch provides advice to both the Secretary of Defence and the Chief of Defence Force and supports the management of New Zealand's defence relations.
Defence diplomacy is giving greater substance to the partnership between defence policy and foreign policy. There is an increasingly wide range of linkages. These include visits by senior officials; the work of our defence attaches and their foreign counterparts accredited to New Zealand; bilateral and multilateral defence and security dialogues; exercise activity; participation in more than a dozen peace support operations; and defence aid, particularly to the South Pacific.
Closer Defence Relations with Australia
Australia remains our most important defence partner. The relationship is embodied in the concept of Closer Defence Relations (CDR). We share many common interests notably the security and stability of the Asia-Pacific region. We share a commitment to work together to contribute to peace and stability in the South Pacific. The closest possible cooperation is a sensible means of ensuring our mutual security. That cooperation is reflected, for instance, in our continued combined efforts in three regional trouble spots: East Timor, Bougainville, and Solomon Islands. The East Timor mission underlines our ability to work together effectively in an operational environment.
Regular meetings take place at several levels, beginning with the annual meeting of Defence Ministers and the concurrent meeting of the Secretaries of Defence and the Chiefs of Defence. This year's meeting took place in Melbourne in early July. Ministers directed that their officials give further emphasis to achieving the highest possible levels of interoperability between the two defence forces within national defence priorities, so that the full potential of CDR can be realised.
South Pacific
Problems in the South Pacific are serious and wide-ranging. Many are systemic. There has been a growing resort to violence to settle disputes or to advance personal interests. The tentacles of trans-national crime are also touching the region. These problems, together with often bitter land grievances, have fuelled internal political, ethnic and tribal conflicts, particularly in Melanesia.
Defence has a part to play in assisting South Pacific countries deal with these issues. We are seeking better targeted and more effective delivery of defence assistance to the South Pacific, and to develop with the New Zealand Police a coordinated programme of assistance for law enforcement. Military planning must also take into account the increasing likelihood of operational deployments in the region.
Papua New Guinea
Our defence assistance to the PNG Defence Force has slowed as the Force grapples with the need to downsize and restructure to remain within budget.
Bougainville
A comprehensive peace settlement is within the grasp of the parties to the long-running conflict in that province. Recent progress has enabled a decision on a significant downsizing of the regional Peace Monitoring Group, which includes NZDF personnel, to take place shortly. But it is too soon to disband this mission. It continues to have an important role in building confidence in the political settlement that has now been negotiated. Patience remains the key to the resolution of this conflict.
Solomon Islands
The International Peace Monitoring Team, which includes seven members of the NZDF, is working to consolidate the success of the Townsville Peace Agreement in bringing to an end fighting between parties. The conflict has largely destroyed the country's economy and much of its infrastructure.
Building momentum in the peace process, however, has proved difficult. It will need ongoing international support. There has been a mixed response to the surrender of weapons, which is a key feature of the Townsville Peace Agreement. RNZN ships have deployed to Honiara at regular intervals in support of the peace process, sharing this task with the Royal Australian Navy.
Fiji
Defence cooperation with Fiji was suspended following the removal by force of its democratically elected government in May 2000. The exemption was for the provision of assistance directly related to Fiji's peacekeeping roles in East Timor (where a Fijian company is attached to the New Zealand battalion), and in Bougainville.
Southeast Asia
Five Power Defence Arrangements
New Zealand maintains bilateral and multilateral defence and security relationships in Southeast Asia. Our enduring security interests in this region are reflected in our active engagement in, and commitment to, the Five Power Defence Arrangements (FPDA). The other members of this group, that will later this year mark its 30th anniversary, are Australia, Malaysia, Singapore and the United Kingdom. The FPDA continues to play an important confidence building role, and also provides us with opportunities for engagement in the region. New Zealand's participation in the triennial FPDA ministerial meeting in July 2000 underscored New Zealand's commitment to this set of consultative arrangements. That meeting approved organisational changes that will add value to the range of activities it conducts.
Singapore
The attachment of a 70-strong Singapore unit to our battalion in East Timor in May added a new and significant dimension to an already close relationship. The relationship has been reinforced by regular exercise activity, exchanges and a steady flow of defence visitors between Singapore and New Zealand including the Minister of State for Defence, David Lim.
Malaysia
Bilateral defence relations with Malaysia date back to the early 1950s. The relationship today is built on annual meetings of the Defence Coordinating Group (DCG), renewed bilateral exercise activity and assistance provided under the Mutual Assistance Programme. Two meetings of the DCG were held this year - the first in Kuala Lumpur in September, the second in Wellington, in which the Malaysian Secretary of Defence, Dato Hashim Meon, also participated.
Thailand
New Zealand has a small but important defence relationship with Thailand. We enjoy a close and productive relationship with the Thailand battalion serving in East Timor. A Thai general, Lieutenant General Winnai Phattiyakul, commands UNTAET. In addition to peacekeeping, current cooperation centres on an active programme of training and advisory assistance provided under the Mutual Assistance Programme, occasional bilateral exercises and periodic visits by senior officials.
East Timor
New Zealand continues to make a major contribution to East Timor's transition to nationhood. We have now sustained a battalion level commitment in the country for 21 months. It is our largest commitment to an operational mission for several decades.
That is a major commitment (and no mean achievement) for a Defence Force that has only two regular force battalions. The RNZAF's Iroquois helicopters also play a major role in UNTAET. New Zealand's role in facilitating the participation of Fiji, Ireland, Nepal and Singapore in UNTAET through attachments to our battalion is greatly appreciated by the United Nations. The NZDF is also assisting with the development and training of the East Timor Defence Force.
ASEAN Regional Forum (ARF)
The multilateral process is essential for collective security in the region. The ARF provides a forum that has no precedent in the Asia-Pacific, for bringing foreign affairs and defence officials together to discuss regional security issues and to consider ways of building confidence among its growing membership. The ARF has made encouraging progress this year in acquiring the first management tools to assist conflict prevention. It has already become indispensable. North Korea, the most recent addition to the ARF, joined in July 2000.
The ARF also provides an important means by which New Zealand is able to engage multilaterally with its partners on security matters. We participated in several ARF activities during the year. This included attendance at the ARF Ministerial meeting in Bangkok in July 2000, the May 2001 senior officials' meeting in Hanoi and inter-sessional working groups held in Seoul in November and Kuala Lumpur in April. Participation in the ARF has also had the effect of strengthening some of our bilateral defence linkages.
Peacekeeping
In addition to our major ongoing peacekeeping effort in East Timor, the NZDF is committed to 12 other UN or UN-sanctioned peace support or humanitarian demining missions around the world, including the Middle East, Bosnia, Sierra Leone and Mozambique. At present 839 personnel are serving on peace support operations, almost 700 of whom are involved with East Timor.
North Asia
The security and prosperity of the wider Asia-Pacific region depends to a very large degree on relations between China, Japan and the United States. China-US relations were tested during the EP3 aircraft surveillance incident. Progress in inter Korean relations appears to have slowed after a promising start in 2000. Other tensions remain, including Taiwan's relations with China.
New Zealand's defence engagement with North Asia has grown considerably in line with the expansion of other areas of our relationships. Depth and breadth are being added to defence contacts and cooperation, a process that is consistent with our emphasis on regional confidence building.
China
New Zealand has an active defence relationship with China. There has been a steady flow of senior PLA visitors to New Zealand, the most significant being Gen Zhang Wannian, Vice Chairman of the Central Military Commission of the PLA in April. Last October, the PLA hosted a visit by the Chief of Defence Force. A second PLA officer is attending the RNZAF Command and Staff College senior officers' course, and we again had the opportunity to take part in a professional development programme at the National Defence University in Beijing. A second bilateral security dialogue meeting was held in Beijing in November.
Republic of Korea
The contribution of a 11 strong contingent to the United Nations Command Honour Guard in Seoul for a period of six months from January to July 2001 added a significant new dimension to bilateral relations with the Republic of Korea. It underlined our support for the role of the UN as expressed in the armistice agreement, while also demonstrating New Zealand's ongoing commitment to peace and stability on the Korean Peninsula and in the wider East Asian region. This deployment was timed to enable the contingent to provide support to some of the commemorative activities associated with the 50th anniversary of the Battle of Kap'yong in which New Zealand played a significant role. There is also increasing contact in peacekeeping through Korea's participation in UNTAET.
Other developments included the second round of political/military dialogue in Seoul in November; the visit of the CDF to the Republic of Korea in April 2001; the participation of Korean naval officers in a RNZN exercise in October 2000; the first bilateral special forces exercise with the Republic of Korea in August 2000; and the RNZN Band and Maori Cultural Group's performance in the Kangwon International Tattoo in October 2000.
Japan
Defence links with Japan are expanding. CDF visited Japan in October 2000, the first such visit for 18 years. General Takegouchi, his Japanese counterpart, will reciprocate when he makes the first-ever visit to New Zealand by a Japanese officer at this level in September 2001.
Another milestone in the relationship was the first political/military dialogue that was held with Japan in November 2000. A professional development course run by the Japanese National Institute of Defence Studies was attended by a NZDF officer and the President of the Institute visited New Zealand in March 2001.
North America
United States
While United States restrictions on defence cooperation with New Zealand remain in place, the two countries share common interests in relation to regional security. The most senior United States military visitor this year was Admiral Blair, Commander-in-Chief of Pacific Command. The opportunity such visits provide for high-level dialogue on defence and security issues is valued. Access to United States information, training and technology enhances New Zealand's ability to operate alongside other forces and to play a meaningful role in pursuit of our shared security objectives.
Canada
New Zealand's defence relationship with Canada centres on cooperation in regional security and peacekeeping; participation in exercises; an annual three month reciprocal exchange of around 20 personnel from each country; and attendance at Canadian courses. Early in the year the Canadians completed their attachment to our battalion in UNTAET.
Acquisition
The Ministry of Defence, through the Acquisition Division, is responsible for procuring all major items of capital equipment for the NZDF. The procurement process is often lengthy. It commences with the Government, on the basis of a user specification developed by the NZDF, giving approval in principle to begin a tender process. From that point on, the Ministry undertakes risk assessments, identifies preferred bidders, and invites tenders. Once the Government has given approval to proceed and commits the necessary funding, the Ministry negotiates and manages the contract arrangements, through to delivery of the equipment to the Defence Force.
Following the change of government in November 1999, many of the acquisition projects being run by the Ministry were put in abeyance pending new direction from the Government. Decisions were made on three major acquisition projects, initiated before the 1999 election, in August 2000. The Government decided to proceed with the light armoured vehicle project and the tactical communications systems. It decided not to proceed with the Project Sirius mission systems upgrade for the P-3 Orion. With these decisions made and those announced as part of the May 2001 defence statement, the Ministry is now proceeding with the projects that will contribute to the Government's objectives for rebuilding the Defence Force.
Upgrade the Army
Vehicles
Light Armoured Vehicle
The Prime Minister signed a contract for the supply of 105 light armoured vehicles on 29 January 2001. The first batch of vehicles is due for acceptance in March 2003 with the last due in May 2004.
Light Operational Vehicles
In December 2000 a revised Invitation-to-Register was issued for the supply of 308 Light Operational vehicles. Ten responses were received. In lieu of field tests, these vehicles have been subjected to an evaluation utilising the NATO Reference Mobility Model ("NRMM"). The Australian Department of Defence Land Engineering Authority has carried this out. Government approval will be sought to issue a Request-for-Tender to those candidate vehicles that have shown appropriate mobility.
Tactical Communications
This project covers tactical communications for the Army and supporting RNZAF units. The Government approved the purchase of the equipment on 20 September 2000. The radios are being obtained through the United States Government Foreign Military Sales organisation. Deliveries have already commenced.
Weapons
The direct fire support weapon (area) and the medium range anti-armour projects have been on hold pending the development by the NZDF of revised force development proposals, following the May 2001 defence statement.
Provide effective air and naval transport capabilities
Sealift
Decisions concerning future sealift capabilities will be made after consideration by Government of the Maritime Forces Review.
C-130 Hercules aircraft
A Request-for-Tender to conduct a life of type study on the current fleet of C-130H transport aircraft has been issued. This study will enable the Government, in due course, to consider the options of replacement or extension to the life of the current aircraft.
Strategic Transport
A force development proposal is currently being prepared by the NZDF to detail the requirements for future strategic jet aircraft (Boeing 727 replacement). Subject to government approval to proceed, proposals will be sought from industry worldwide to fulfil this requirement. Proposals are expected to include, as options, outright ownership, operating lease and shared ownership.
Maintain effective maritime surveillance capabilities
Maritime Surveillance Aircraft
The six P-3 Orion aircraft are continuing to be upgraded to extend their life for another fifteen years. Projects involving the Orions include:
- Aircraft re-winging
Project Kestrel. The sixth and final aircraft is almost complete, and will be returned by September. - Autopilot systems replacement
The autopilot has been installed and tested in two aircraft. The contractor is currently resolving a system functional problem before further aircraft modifications are commenced. This problem is also being experienced by other nations undertaking similar projects.
Maritime Helicopters
Four Kaman Seasprite naval helicopters are scheduled to be delivered this year and the fifth in the first quarter of 2003. Delays occurred in the delivery of the first four helicopters as a result of a greater level of new design and manufacture and more complex testing and certification processes than originally envisaged.
New Zealand Industrial Involvement
Defence Technologies New Zealand Joint Action Group
The Ministry has continued to support local companies seeking to obtain defence work from major acquisition projects and through exports. The main conduit for this assistance has been through the Defence Technologies New Zealand Joint Action Group (the JAG), which has a focus on defence work. The Ministry provided regular briefings at JAG meetings and assisted that organisation make contact with appropriate defence people in New Zealand, Australia and overseas. Assistance is also provided to the JAG to sponsor the annual Defence Industry Seminar. The 2000 event was held in Wellington and was attended by 200 defence and industry people.
Defence Industry Committee of NZ
The Ministry provided support for the Defence Industry Committee of New Zealand ("DICNZ"). This Ministerial appointed committee provides industry feedback into Defence and briefs the Minister on issues relating to industry. The DICNZ established the "Defence Industry Committee Award of Excellence," which is awarded annually to companies that have provided Defence with excellence in service or products. The Minister presents the Award at the Defence Industry Seminar dinner. The winner in 2000 was Swing Thru New Zealand Ltd which, at short notice, provided the New Zealand Army with revolutionary truck mounted container cranes that were essential for the handling of containers by the troops deployed to East Timor. Several military organisations overseas are now reviewing the use of these cranes for their own supply chain.
Industry Programmes
ANZAC Ship Project
The industry programme on the ANZAC ship project is now almost complete. The ANZAC Ship Treaty, signed in 1989, guaranteed New Zealand companies A$585 million (1988 dollars) of work from the project and from access to other Australian defence work. Currently the achievement totals A$565.1 million (1988), 96.6% of the guaranteed figure, with some final ANZAC ship deliveries and further Australian defence work to be counted. It is likely that the achievement figure will exceed A$600 million (1988) when the accounting is complete at the end of the project. This represents over NZ$1,000 million in current day dollars.
Maritime Helicopter Project
The other major industry programme currently associated with a major acquisition project is that of the maritime helicopter project. This industry programme has grown significantly since the contract with Kaman Aerospace was signed. It appears likely that this programme will exceed the contracted amount, possibly by up to 40%. Much of the increase has been associated with the local partner of Kaman, Safe Air Ltd of Blenheim, providing additional technical support in the design, manufacture and testing of the new aircraft. In addition to the positive employment issues, the greater involvement by Safe Air personnel will provide greater in-depth knowledge of the helicopters once in service, thereby assisting the NZDF by improving through-life service and support.
LAVIII Armoured Vehicles
The contract with General Motors of Canada for the supply of 105 LAVIII armoured vehicles has offered only limited opportunity for local industry involvement in their manufacture. This acquisition involves buying a product produced from an existing production line, similar to buying a motor vehicle. Serco New Zealand, however, has a close association with General Motors and has been focusing on obtaining the knowledge and experience necessary to support these vehicles through-life.
Evaluation
The Ministry, through the Evaluation Division, undertakes independent evaluations of NZDF functions and activities. The main focus is on output evaluation and management and system review. The Division also assists with the management of risk associated with Ministry of Defence acquisition projects, and undertakes Ministry of Defence internal audits.
Output evaluations examine NZDF outputs for consistency with defence policy, and determine whether they are being delivered in a quantity and to a quality that meets policy objectives. Issues highlighted in output evaluations are considered as part of defence planning. During the first half of the year the Division completed an evaluation of the Navy's Mine Countermeasures, Diving and Diving Support Forces. No other output evaluations were undertaken as government decisions during the second half of the year altered the basis for many of the Defence Force's 2000/2001 outputs. Output evaluations will resume in the coming year. Assessment of the progress being made towards reshaping the Defence Force to meet the Government's policy framework will be included.
Management and system reviews analyse the efficiency and effectiveness of NZDF management practices and systems. Reviews completed included management of minor capital equipment programmes; management of the introduction into service of new equipment; commercialisation of the provision of Defence Force clothing; management of bulk fuels; progress towards introduction of management systems required to meet the Hazardous Substances and New Organisms Act 1996; and commercialisation of the Air Force's depot level maintenance.
Evaluations were completed at the direction of the Minister of Defence, on the overseas travel of senior NZDF officers.
The Division monitored progress towards introduction of the new hazardous substances regime. This requires that the Ministry audit the controls issued by the CDF for hazardous substances under defence control.
The ANZAC Ship Project Joint Audit Board, which maintained audit oversight of the ANZAC Ship Project in conjunction with the Australian Department of Defence, met for the last time during the year. Following completion of the warranty period on HMNZS Te Mana, there is no further need for New Zealand audit involvement in the project.
Corporate
Corporate Division provides support services and policy advice in the areas of human resources, information, administration, communications and legal. It is responsible for all aspects of Ministerial services and support. Considerable disruption to the work of the Ministry and of the Division was experienced as a result of the flooding of Defence House towards the end of the financial year.
Strategic Business Plan
The Ministry completed implementation of internal planning processes with the publication of its first Strategic Business Plan. This is designed to provide staff with guidance on the Ministry's strategic direction and the culture within which they work. A representative number of staff was engaged in developing the plan, which was published prior to the Defence announcements on 8 May 2001. The Plan will cover a two-year period with the intention to review it in 2002.
ISO 9001 Certification
In January 2001, the Ministry underwent successful recertification of its management system to the ISO 9001 standard. This complete reaudit is required every three years. The Ministry's program of developing and enhancing its management systems, which commenced last year, was of considerable assistance in achieving this favourable outcome.
Other Issues
Improvements and enhancements to the Ministry's management systems have continued, particularly with regard to the electronic document management system. The Ministry has placed considerable emphasis on training for its staff and participation in the e-government initiatives. The final stages of recovery from the flood were undertaken. Staff had been relocated around the floor for six weeks while half of the Ministry's premises were dried out, furniture and equipment repaired or replaced and many paper records recovered and dried. Documentation of the events and processes followed to restore functions has been invaluable for future disaster recovery planning.
Conclusion
The last year has seen the Ministry play a role in aiding the Government, through advice and acquisitions work, to provide shape to and implement its policy framework. This formed the focus of the Ministry's work during the year, especially through the completion of capability reviews that fed into the May 2001 defence statement.
The significant domestic policy changes underway were not, however, at the expense of engagement on international defence and security issues. This was a key message we sent to our security partners and was underlined by our continued commitment to Closer Defence Relations with Australia, and the deployments to East Timor, Solomon Islands, and Bougainville.
A significant amount of work has been done over the past year to enhance and improve the Ministry as an organisation and the way in which it interacts with its staff. Some of the benefits of this are now apparent and further work will be done in this area in the coming year.
Graham Fortune
Secretary of Defence
27 September 2001
