Statement of Intent 1 July 2007 - 30 June 2010
Part 1: Strategic framework (continued)
The Defence Long-Term Development Plan
A major focus of the Ministry’s work over the next five years will be implementing the Defence Long-Term Development Plan with the New Zealand Defence Force. Issued in June 2002, and updated in June 2003, November 2004, and October 2006, the Defence Long-Term Development Plan sets out the capability projects required to modernise and improve the New Zealand Defence Force.
The Defence Long-Term Development Plan is a planning document that assists the Government to make decisions about defence capability over a ten-year period, covering current policy, priorities and affordability. The Ministry of Defence regularly reviews the Defence Long-Term Development Plan, in association with the New Zealand Defence Force, to ensure it is achieving its goals and to seek decisions from the Government on spending priorities.
The 2006 Defence Long-Term Development Plan had several changes made to it. It includes a new category of “Projects previously on the Defence Long-Term Development Plan and moved to the Defence Capital Programme-Minors” and the inclusion of seven new projects:
- a new fuel storage installation at Devonport Naval Base
- a new power generation and reticulation system at the naval base
- upgrading of the taxiways at Ohakea Air Base
options for replacement of the Air Force’s King Air training aircraft - upgrading of the ANZAC frigates’ platform systems
- upgrading the close in protection weapon systems for the ANZAC frigates
- investigation of a share in a satellite communication system for the Defence Force.
In the 2006 Defence Long-Term Development Plan capability projects fall into seven categories:
- projects approved and in the acquisition phase
- projects approved in principle by the Government
- projects critical to avoid the failure of policy
- projects essential to avoid the failure of policy
- projects necessary to avoid the failure of policy
- projects judged as having benefit but which are less critical to achieving policy objectives
- projects previously in the Defence Long-Term Development Plan and moved to the Defence Capital Programme - Minors.
Many of the projects in the Defence Long-Term Development Plan are now underway following decisions made by the Government over the past five years. The projects will significantly improve the capabilities of the New Zealand Defence Force to perform the roles and tasks prescribed by the Government. These projects are more fully discussed in the following pages.
The Defence Sustainability Initiative
As a result of a capability and resourcing review undertaken in 2004-05, the Government announced the Defence Sustainability Initiative (DSI) in May 2005. This Initiative is designed to develop the New Zealand Defence Force’s military and organisational capability to ensure that the Government’s defence goals are met on a sustainable basis. A staged approach is being adopted, focusing in particular on good corporate governance, systems and processes that are clearly aligned with government policy settings.
The DSI was designed to remedy the effect on the New Zealand Defence Force of a 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 because of staff shortages.
The DSI has initially been directed 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 and the Ministry of Defence. The Ministry has assisted the New Zealand Defence Force in this task. The implementation of the new processes and management systems in the New Zealand Defence Force will be substantially complete by mid-2008. The work of rebuilding the New Zealand Defence Force, however, will be ongoing for many years. An important enhancement is the implementation of a robust planning and performance management structure to fully define and manage the implementation plan for capability recovery. This work is now well advanced.
The second phase of the DSI is now underway. In this phase, the New Zealand Defence Force is moving from rebuilding its organisational capabilities to growing into a modern military force that can deliver outputs that meet Government policy. The Ministry will continue to assist this building and growing process.
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 has now addressed gaps in its own policy capability, particularly where it did not have sufficient specialist technical and financial analysis skills to fully meet the Secretary of Defence’s responsibilities.
Capability Management Framework
The Capability Management Framework, which has been operating since mid-2002, is an evolving governance and management system used by the Ministry and the New Zealand Defence Force to develop effective, long-term investments in defence capabilities. The Capability Management Framework provides for an integrated approach to capability development, defining sole, prime and shared responsibilities between the Ministry of Defence and New Zealand Defence Force.
The Capability Management Framework delineates the issues of responsibility, accountability, processes, capability definition and acquisition through to the introduction into service and the disposal of capabilities. The outcome of this framework is to provide a well-informed, cost effective and professional defence force that embraces continual improvement and management excellence.
