Reports and Publications

• Defence Capability and Resourcing Review (DCARR)
  • Contents
  • Executive Summary
  • PART 1 - Background
  • PART 2 - The Operating Environment
  • PART 3 - The Condition of the NZDF and Ministry of Defence
  • PART 4 - Capability Gaps, Funding Options and Implementation
  • PART 5 - Conclusions and Recommendations
  • Appendix 2: Distribution of Increased Appropriation in First Five Years

Final Report
Defence Capability and Resourcing Review (DCARR)

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PART 1 - Background

1. The New Zealand Defence Force (NZDF) has been working at a high operational tempo for more than six years, yet since the end of the Cold War (1989) defence funding has declined - most significantly during the 1990s. These events have stretched the NZDF resources (people and equipment) and have affected capabilities.
2. In keeping with the government’s commitment in the 2001 Defence statement to provide financial certainty for the NZDF, in December 2003, the Ministers of Defence, Finance and State Services commissioned an assessment of the optimum capability configuration and resource requirements of the NZDF to undertake the roles and tasks set out in the government’s statements of defence policy. Ministers wished to better understand the underlying issues in matching the NZDF’s capability and the capability required by government policy, and understand the resource implications of resolving any mismatch.
3. The Defence Capability and Resourcing Review (DCARR) was established to conduct the assessment, and to deliver a comprehensive resourcing plan for the Ministers that identified key capability, capacity and output issues, and options on how Ministers might wish to consider those issues over a five to ten year horizon. The DCARR was also tasked to assess the capability of the Ministry of Defence to support government policy processes.
4. The DCARR was overseen by a Steering Group made up of the Chief Executives (or their delegates) of the Ministry of Defence, NZDF, Treasury and the State Services Commission. The Review Team was comprised of members of those organisations, under the direction of a Project Manager.
5. Between February and October 2004 the DCARR undertook a detailed study of the NZDF, its operating environment and its future requirements, and reviewed the policy capability of the Ministry of Defence. The key deliverable required by the Terms of Reference was a resourcing plan for Ministers that identified key capability, capacity and output issues, and provided options for Ministers to consider. In line with Ministerial guidance, senior NZDF, Ministry of Defence and Treasury officials worked with the DCARR to develop a ten year Defence Funding Package (DFP) that DCARR considers will enable the NZDF and Ministry of Defence to build capability over time to the level required.

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