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Hunn Review: 30 September 2002

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Chapter 3

The current defence organisation

  1. The 1990 Defence Act disestablished the former Ministry of Defence and established two new Defence organizations as separate entities: a new Ministry of Defence with responsibilities for providing advice on defence policy, defence procurement and audit and assessment, and the New Zealand Defence Force, comprising the Armed Forces of New Zealand and associated civil staff, and with responsibilities for all operational matters.
  2. This chapter provides a very brief outline of the structure and functions of the Ministry of Defence and the New Zealand Defence Force. It concludes with a note setting out a number of mechanisms that have been devised in recent years to facilitate cooperation and consultation between the two organizations.

Ministry of Defence

  1. The Ministry of Defence (MoD) has three main roles, to:
    • to provide advice on defence policy, international defence relations and the military capabilities required to meet the government's defence policy objectives;
    • to manage the procurement of major capital equipment contributing to the future capabilities of the NZDF; and,
    • to evaluate and report on NZDF military activities, including output delivery, management systems and processes and, efficiency and effectiveness of resource utilization.
  2. The Secretary has the following responsibilities (in addition to those applying to all state sector Chief Executives):
    • be the principal civilian adviser to the Minister and other Ministers of the Government;
    • formulate advice on defence policy in consultation with the CDF;
    • prepare periodic defence assessments for the Minister, in consultation with the Chief of Defence Force. The assessments are to include different options capable of meeting the Government's defence policy objectives;
    • procure, replOCE or repair equipment representing significant military capability for the NZDF; and,
    • arrange for the assessment and audit of the NZDF in relation to any function, duty, or project, and of the Ministry in relation to any major capital equipment procurement project.
  3. To carry out its functions the Ministry is comprised of four divisions. These divisions are: Policy and Planning; Acquisitions; Evaluation; Corporate and Finance.
  4. The Ministry's Policy and Planning Division forms part of the Defence Policy and Planning Unit (DPPU), an integrated defence policy organisation that reports to both the Secretary and the CDF. The other element of the DPPU is the joint MoD-NZDF International Defence Relations Branch (IDR).
  5. The DPPU has four main functions:
    • advice on meeting current defence needs and interests;
    • advice on New Zealand's international defence relations, and participation with the NZDF and MFAT in the management of those relationships;
    • advice on policies and military capabilities to meet future security needs; and,
    • co-management with the NZDF of a strategic planning system.
  6. Acquisition Division is responsible for the procurement, replOCEment and repair of equipment of 'major significance'. Major equipment purchases are defined as those whose value exceeds $7 million. The Division is also responsible for the provision of advice on New Zealand industry and its capability to carry out defence work.
  7. Evaluation Division currently has four main functions. As defined in the Ministry's Strategic Business Plan these are to conduct:
    • independent evaluations of the NZDF;
    • independent reviews of efficiency and effectiveness of NZDF management systems and resource utilization;
    • internal audits and review of MoD's acquisition, policy and corporate activities; and,
    • audits of the control of any hazardous substances under the control of the MoD.
  8. Corporate Division provides support services and policy advice in the areas of legal, human resources, finance, communications, administration and information technology and management. Corporate Division also acts as the main conduit for communication with the Minister's office, and manages all ministerial correspondence, Official Information Act requests, parliamentary questions and responses to select committees.
  9. The total strength of the Ministry at any time fluctuates around 65 employees, almost all of whom are civilian.

New Zealand Defence Force

  1. The New Zealand Defence Force (NZDF) consists of the three single Services (Navy, Army and Air Force), the Joint Force Headquarters (JF HQ) and Headquarters, New Zealand Defence Force (HQ NZDF). HQ NZDF is the strategic level command and management organisation for the NZDF, consisting of an Office of the Chief of Defence Force, which are his principal advisors and their staffs, and Navy, Army and Air Force staffs, and the Office of Veterans' Affairs. The structure and functions of HQ NZDF reflect the responsibilities and relationships between the Chief of Defence Force (CDF) and single Service Chiefs as detailed in the 1990 Defence Act.
  2. The New Zealand Defence Force (NZDF) mission is to secure New Zealand against external threat, to protect New Zealand sovereign interests, including in the exclusive economic zone (EEZ) , and be able to take actions to meet likely contingencies in New Zealand's strategic area of interest.
  3. The Chief of Defence Force (CDF) is:
    • the principal military advisor to the Minister and other Ministers of the Government; and
    • responsible to the Minister of Defence for:
      • the carrying out of the functions and duties of the Defence Force (including those imposed by any enactment or by the policies of the Government); and
      • the general conduct of the Defence Force; and
      • the efficient, effective and economical management of the activities and resources of the Defence Force; and
    • the commander of the NZDF through the single Service Chiefs of Staff.
  4. To carry out these functions, HQ NZDF includes eight branches that report to the CDF, for: Personnel, Force Development, Intelligence and Strategic Plans, Finance and Resources, Information and Communications, International Defence Relations (which is an integrated Branch, reporting to CDF and the Secretary of Defence), Legal and Corporate Services. In addition, CDF is supported by two other principal staff officers: a Deputy Chief of Defence Staff who acts as a Chief of Staff and the Inspector-General, who evaluates the preparedness and readiness of NZDF force elements.
  5. These functional staffs are primarily responsible for policy issues relating to their function. For example, Personnel Branch is responsible for the development of military and civilian personnel employment, remuneration and welfare policies. Development Branch provides guidance, policy and advice on aspects of the NZDF's force structure and operational capabilities, supported by a logistics cell and a technology agency that provide technical and scientific advice. Finance and Resources Branch develop, maintain and verify the financial profiles of the NZDF Capital and Operating Plans, develop policy and planning advice on the management of NZDF's financial resources and implement best practice policies to meet compliance and governance requirements.
  6. Information and Communications is responsible for the implementation and management of NZDF information management architecture to meet organisational requirements. International Defence Relations is responsible for providing advice on international and regional developments of strategic relevance and prepares submissions on security issues. Legal Services provides legal advice and services to the NZDF, including constitutional, command and issues relating to domestic and international law, pertaining to NZDF operations and activities, as well overseeing the administration of Service law. Corporate Services provides the administrative support to HQ NZDF.
  7. Within the HQ NZDF, separate staffs support the single Service Chiefs. They provide functional support broadly similar to that provided to CDF, with an emphasis on the professional development and maintenance of their respective Service and the implementation of defence policy through delivery of specified NZDF outputs.
  8. Headquarters, Joint Force New Zealand (HQ JFNZ) is a separate operational level headquarters designed to undertake operations on behalf of the CDF. Established at Trentham in July 2001, it drew together the staffs and functions from single Service operational-level headquarters. The Commander Joint Forces New Zealand is responsible for the command and control of HQ JFNZ and operational command of all assigned force elements on operations and during joint and combined training.
  9. The NZDF has 13,800 personnel including the Armed Forces (Regular Force, Territorial and Reserve Force members) and the Civil Staff. There are 8,800 regular military personnel and 2,030 civil staff members. The total military and civil staff strength of the HQ NZDF is currently 906; this includes:
    • 244 personnel in administrative or support positions many of whom provide services for all occupants of relevant buildings (including MoD and SIS) -for example security guards.
    • 102 personnel included in HQ NZDF cost centres for accounting purposes that are associated with NZDF output delivery. These include New Zealand Defence Advisers/Attaches overseas, and foreign personnel attached to the NZDF, Operation Antarctica personnel, liaison staffs seconded to external agencies.
    • 128 personnel employed in management and implementation positions in the functional branches and the three single Service staffs; this total also includes personnel associated with some single Service support functions re-assigned out of the creation of the JF HQ. and
    • 432 personnel who perform NZDF management policy functions or are in direct support of such functions.

Cooperation Between The Two Defence Organisations

  1. Since their formation in 1990, the two Defence organizations have devised a number of mechanisms to help break down the policy j operations divide mandated by the Act. The most important of these are summarized below:
Office of the Chief Executives
  1. An Office of the Chief Executives (OCE) has been established to facilitate consultation between the Secretary and the CDF on matters of defence policy, military capability, defence planning and so on. The OCE was initially intended to meet on a weekly basis but in practice it meets less frequently and on an 'as required' basis. The OCE provides policy guidance and direction, receives briefings and updates on upcoming projects, and discusses other related defence matters of mutual interest.
Conduct of Defence Assessments and Force Structure Reviews
  1. To ensure that Defence Assessments and Force Structure Reviews reflect the views and input of both Defence organisations, the practice since 1991 has been to form MoD/NZDF project teams to carry out such reviews, with the conclusions being reported to a steering committee or the OCE, depending on the subject matter.
Co-Location of HQ NZDF Force Development Branch and MoD Defence Policy Division
  1. In 1995, the then Secretary and CDF took the initiative to co- locate the HQ NZDF Force Development Branch with the MoD Policy Division. By all accounts, this arrangement worked effectively, particularly in integrating all relevant inputs for the capability-focused 1996-97 Defence Assessment. For reasons which are not clear, the arrangement was terminated in 1999, with the Force Development Branch being relocated back into the HQ NZDF.
Formation of the Defence Policy and Planning Unit (DPPU)
  1. The Defence Policy and Planning Unit (DPPU) was formed in early 2000 by bringing together staffs of the MoD Policy Division and the International Defence Relations Branch of HQ NZDF, integrating them into a combined staff reporting to both the Secretary and the CDF. The DPPU consists of three work areas: Strategic Policy and Planning; Strategic Analysis; and International Defence Relations.
  2. In addition to those listed above, a number of other initiatives have been introduced to facilitate cooperation and communication. These include: secondments mainly of NZDF personnel to the MoD; an integrated public relations and communications staff; use of project teams drawn from both MoD and NZDF staffs; and consultation arrangements for answers to ministerial correspondence, parliamentary questions, official information requests and requests for assistance and information from the Foreign Affairs and Defence Select Committee.
  3. Also, since this review commenced, it should be noted that both CEs have continued to seek ways of improving the working relationships and arrangements between the two agencies. In this regard, I am aware that a MoD/NZDF review of structures, management and organisation for public communications has been launched to be headed by an external consultant; new personnel have been brought into key positions in both organisations; new governance arrangements have been established for acquisition projects; and an integrated NZDF/MoD project team has worked through the production of an agreed long-term development plan that has been accepted by Government.

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