Defence Review

View the Firecone Ltd Report: Defence Review 2009 - Long Term Funding Regime for the Defence Agencies in pdf format (240 kb)

Firecone Ltd Report: Defence Review 2009 - Long Term Funding Regime for the Defence Agencies

16 October 2009

[Document source: Andrew Sweet, Firecone Ltd]

• View the Firecone Ltd Report: Defence Review 2009 - Long Term Funding Regime for the Defence Agencies in pdf format (240 kb)
• View the Firecone Ltd Report: Defence Review 2009 - Long Term Funding Regime for the Defence Agencies in html format (see below)

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Contents

1. Introduction
2. Policy Framework
   • 2.1 - Role and Importance of Funding Systems
   • 2.2 - Proposed Objectives for Assessment of the Defence Funding System
3. Background
   • 3.1 - Funding Levels
   • 3.2 - Breakdown of NZDF Spending
   • 3.3 - Overview of Current Funding System
   • 3.4 - Comparison of NZ and International Funding Systems
   • 3.5 - Fixed and Variable Components of NZDF Operating Expenditure
     • 3.5.1 - Longer Term Cost Control Mechanisms
4. Analysis
   • 4.1 - Current Financial Situation
   • 4.2 - Drivers of Current Structural Deficit
     • 4.2.1 - Impact of Inflation on Operating Costs
     • 4.2.2 - Asset Price Inflation
     • 4.2.3 - Impact of Exchange Rate Fluctuations
     • 4.2.4 - Revaluation Impacts
     • 4.2.5 - Funding of Large Capital Acquisitions
5. Recommended Improvements to the Current Funding System
   • 5.1 - Partial Offsetting of Inflationary Impacts
     • 5.1.1 - Annual Inflation Adjustment of Total Allowable Operating Expenditure
     • 5.1.2 - Inflation Adjustment Only for Agreed Cost Items
     • 5.1.3 - Protection from Depreciation and Capital Charge Impacts of Asset Revaluations
   • 5.2 - Planning and Funding of Large Asset Procurements

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