Statement of Intent 1 July 2005 - 30 June 2008
Part 1: Strategic framework
Ministry of Defence operating environment
Overview
In the period covered by this Statement of Intent New Zealand will pursue its defence policies in a changing international setting, and against the background at home of a comprehensive, Defence-wide, modernisation and long-term re-resourcing of the New Zealand Defence Force.
The primary reason for maintaining defence capabilities will remain to secure New Zealand against external threats, to protect the country's sovereignty, and to be able to take action to meet likely contingencies in areas of strategic interest.
However, in the absence of any direct military threat, and given New Zealand's global connectedness and interests, the ability for New Zealand to contribute trained, professional military forces to regional and global roles will continue to be important in determining the use, capabilities and force structure of the New Zealand Defence Force.
The Ministry
The Ministry of Defence's primary tasks are to provide policy advice on defence issues, to acquire major items of military equipment for the New Zealand Defence Force, and to audit and assess the performance of the Defence organisations.
The Ministry will continue to play a lead role in ensuring that the New Zealand Defence Force's capabilities and activities are aligned with, and well-matched to, the Government's policy goals at home, in our near region, the wider region and globally.
The New Zealand Defence Force is the Ministry's key partner, but we will also work increasingly closely with other government agencies to ensure policy and capabilities are aligned and directed to supporting New Zealand's security objectives and contributing to the security of other countries.
High Level Priorities
A key priority for the Ministry in the period ahead, across all its business units, will be continuing with the implementation and delivery of the capability, force structure and acquisition decisions outlined in Government's Defence Long-term Development Plan. This work, pursued in conjunction and co-operation with the New Zealand Defence Force under the Capability Management Framework, currently comprises 22 projects.
An equal priority will be implementing Cabinet decisions arising from the review into the capability and resourcing of Defence, commissioned by the Government in January 2004.
The review determined that Defence's capacity and capabilities in some areas were below the requirements of Government policy. A number of causal factors were identified including the prolonged period of fiscal constraint throughout the 1990s, the higher operational demands made on the New Zealand Defence Force since 1998, equipment continuing in service beyond its economic life, a strong labour market affecting the ability to recruit and retain key personnel, and a reduction in New Zealand Defence Force Headquarters and support capabilities due to the high and prolonged operational tempo.
The Defence Sustainability Initiative
In response to the review the Government has approved a Defence Sustainability Initiative (DSI). This Initiative is designed to develop the New Zealand Defence Force's military and organisational capability to a level that will ensure that the Government's defence goals are met on a sustainable basis.
The issues now confronting Defence have developed over a long period of time. Addressing them will also take time, consistent focus and effort. A staged approach will be adopted, focusing in particular on the fundamentals - good corporate governance, systems and processes that are clearly aligned with Government policy settings.
An early task will be to improve the current corporate capability and capacity in Headquarters New Zealand Defence Force and the Ministry of Defence. Additional resources will be applied over the first 18 months to put in place a robust planning and performance management structure to fully define and manage the implementation plan for capability recovery.
The DSI will be directed initially towards recovery of personnel levels, recruitment and retention, putting new and upgraded capabilities into service, and strengthening the organisational and corporate capability of Headquarters New Zealand Defence Force.
The DSI requires the New Zealand Defence Force and the Ministry of Defence to work together to manage the risk and uncertainty attached to the long-term capability recovery programme, assess trade-offs and prioritise capability recovery activities, and ensure that policy objectives are achieved.
The Ministry will also be moving to address gaps in its policy capability, particularly where it does not have sufficient specialist technical and financial analysis skills to fully meet the Secretary of Defence's responsibilities.
The International Setting
Defence is a core element of New Zealand's broader foreign and security policy. Understanding changes in the international environment, the new demands being placed on defence forces, and the consequences for defence policy, doctrine and capabilities will remain a critical part of the Ministry's business.
The post Cold War strategic environment has been re-shaped as a consequence of the September 2001 terrorist attacks. In some cases defence policies have been amended and priorities changed. Closer to home New Zealand and other regional countries have begun to rethink questions of Pacific security and to broaden engagement and assistance strategies.
While New Zealand defence policy objectives remain relevant in this environment, there will be an on-going need to assess trends and examine the implications for the structure, activities and capabilities of the New Zealand Defence Force.
Australia
Australia is New Zealand's closest and most important defence partner by far. New Zealand will continue to meet its alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests.
The oft-repeated assertion that the two nations are natural partners has received considerable practical expression in recent years with "ANZAC" deployments providing a critical contribution to regional problem-solving in Bougainville, Timor Leste, Solomon Islands, and Aceh, following the Boxing Day Tsunami.
But the defence relationship is not without challenge. It requires constant attention to ensure each nation's policies, priorities and capabilities are well understood by the other partner, aligned where possible, co-operatively based and always effective. New Zealand also needs increasingly to compete with others for Australia's attention as the Australian Defence Force deals with an expanding regional agenda and its own modernisation priorities and challenges.
The Pacific
New Zealand has enduring strategic interests in the Pacific. We have numerous special obligations to assist South Pacific neighbours in maintaining peace, preserving the environment, promoting good governance and helping achieve economic well-being. The need for this assistance will continue and increase, including in the defence and security arena.
The region faces a number of debilitating, trans-national security challenges, albeit, mostly of a non-military nature. New Zealand will continue to meet its obligations to contribute to the maintenance of security in the South Pacific and to provide assistance to our Pacific neighbours.
Asia
South-East Asia remains a key area for New Zealand's security interests.
Terrorism is the major current security concern in that region. Continued vigilance across the region, including by New Zealand, will be required. Indonesia's recent progress towards democracy is impressive, as is the overall economic recovery of South-East Asia in the years since the 1997 economic crisis.
New Zealand will continue to engage in high-level relationships with defence partners in the region, especially Singapore, and will participate fully in Five Power Defence Arrangements activities.
North Asia will continue to be an area of policy challenge in the period covered by this Statement of Intent.
The economic and security interests of major powers converge there. They are under-going far-reaching change. Major developments in the region are likely to include further tension on the Korean Peninsula, strains in the China-Taiwan relationship, increasing political and security engagement by Japan commensurate with its economic power, and realignment of the United States' security presence.
No issue will have a greater impact than the political and economic emergence of China as a great power. Our defence policy settings will continue to be reviewed and adjusted to take account of those developments. Strategic realities, economic interests and regional connections will compel New Zealand to deepen its defence and security understanding of, and engagement with, North Asia.
Global
The United States will, for the foreseeable future, dominate the global agenda because of its unrivalled economic and military might, as well as its "soft" power.
United States efforts to stamp out terrorism, counter the proliferation of weapons of mass destruction, and influence developments in the Middle East and the Asia-Pacific region, will be important policy factors in determining international relations.
In the defence arena New Zealand will continue to play its part, alongside others, in efforts to ensure international peace and security. Policy effort will be directed toward identifying and recommending methods and participating in efforts consistent with our national commitment to multilateralism, international law and the principles of the United Nations.
The Government's strong commitment to participation in the United Nations and other multilateral peace support operations will be important in shaping New Zealand's approach to international security and determining government decisions about New Zealand Defence Force deployments.
