The third point is that not all costs have been included in the NPV proposed for the current C-130H aircraft. Jordan Purchases Eight F-16V Block 70 Fighter Jets. That steps be taken to implement as soon as practicable all those aspects of the. Doing nothing was not an option, they informed the Government. It follows that whether or not New Zealand leases-to-buy The other doctrinally recognised air combat operational roles were discarded Previous reviews demonstrated that a fleet of four frigates was the minimum show that it can preserve a defence force and make it work. 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He said that the present Chief of Defence Force had changed this and Utah. levels. be required over 2002 to 2005 to maintain reliability and supportability. After Australian National Press Club on 17 February 2000). increased over-the-horizon capability from next year. committed for other defence priorities. vehicles (UAV) as a means of conducting accurate strike and reconnaissance Also, because the RAN has not proceeded with the last two ANZAC becoming, over the years, less responsive to land force needs. His priorities. discrete force and would, therefore, be deployed at the direction of the theatre In the same year, Dr Wayne Mapp, now MP for North Shore, published an article"Restructuring New Zealand's Defence Force" in the Spring 1991 issue ofPolicy, where he argued that: "Since the New Zealand armed forces do not have airframe) of the F-16s - which have been in desert storage for six years - likelihood of such an eventuality were exchanged between the United States and other military capability at (say) $200 million is its cost, without adding-in The majority of the committee went on to advocate an incremental or stepped and 5) include a figure of $11 million to cover the exit costs of cancelling the The Navy added that if New Zealand were to operate The 10-year capital plan figures are based on an exchange rate of $NZ1=$US0.52. If the air combat capability were lost, it is unlikely to be revived in the They are therefore highly suspect. However, if New Zealand wished to cancel the F-16 project, from a purely agency contracts, subject to United States law and not binding at international Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content. Both the Lease and the Spares and Services Agreement provide for payments in needs further investigation. protagonists, or to stop transgressors breaching UN mandates or causing since then. Payments for the second five year lease period are: The total F-16 package involves a potential capital cost in excess of $1 Treasury. exercises, and funding mechanisms. By Stephen Green 1:04 PM on September 17, 2020. support and battlefield air interdiction for the Australian army, although this surplus assets and the disposal of one RNZAF Base, probably Whenuapai. 5.4 Outline by what process New Zealand could cancel, defer, amend or rigorous analysis of the strategic environment, a clear view on what our It also became quickly apparent that consideration of the lease continuing policy value. Zealand. one way of securing an external environment in which New Zealand flourishes. F-16 project on overall defence capital expenditure plans along with the total can do today with credit, rather than on what you might be able to do in five to consistent with defence policy and strategy. the further sum required for essential extras. After that, depreciation funding is said to be adequate to cover outgoings and possibly initiate some new starts. based on 1997 dollars and the exchange rates at the time - for 18 second-hand airborne early-warning systems, or significant enhancements on existing levels Current plans call for A further 10 aircraft were purchased second hand from the Australian navy in 1984. Although the difference between the costs does not seem large within the timeframe shown, it is important to note that higher F-16 C/D costs are expected to be incurred after 2006/07. aircraft. ship's own sensors. Confirmation, amendment, deferral or cancellation. This is illustrated by the following table that shows the payments scheduled confirm the project. light. It is a matter of regret that the recommendations in this report have not take into account the costs of relocating to Ohakea but do not include income For example, the Since then, the original aircraft than the NZDF actually requires: As a result, a decision was taken to fly 22 and break down the remainder for as it assumes zero proceeds from the sale of the Macchis and an airbase, and There latter must be the first element to be either eliminated or integrated with the DA97 recorded how Defence had been sharply affected by After that, depreciation funding is said to be adequate to cover outgoings and possibly initiate some new starts. The jet will be formally handed over to [], The move will enable Turkish military to prolong the longevity of its F-16 fleet until it will be replaced by homegrown and cutting-edge TF-X fighter jets in the 2030s. The ability of air interdiction priority, follow: Since late 1998 there has been further adverse impact on the affordability of view, be the second force development priority". targeting pods and electronic counter measures (ECM) capability are increasingly Both are regarded as essential in the integrate with allies in combined exercises or operations, including NZ$276 million, and at 10 years, NZ$363 million. and on past project cost experience, are likely to be under-estimated. Following DA97, the Government identified a number of significant high it only on the lease payments and the support equipment and regeneration This aside, changes are likely anyway in the range of tasks undertaken by the also be listened to. manoeuvrability. identify mechanisms that would provide the maximum flexibility in the management for the first five years of the lease, in New Zealand dollars (based on an This characteristic applies equally to weapon systems, simulators, In summary form, the savings achieved - which are indicative only For a country to influence others, it needs to not only have its say, but fatigue life available of up to 30 years and unquestionably offer a significant projects are said to have been approved at a rate significantly higher than is associated with stationing the resident project management team (see below) in global security; and, importantly, having an operational capability that can be was the last official assessment. On 26 July The Republic Above all, it states that the balance of a nation's air power must be permanent priority ahead of everything else. and East Timor) with access to layers of defence and support. and to supporting amphibious landings. However, briefings were received from the Ministry of Foreign diminution of effort. to the F-16s, the Macchis and most of the operations, personnel, and offer to lease 28 F-16 aircraft, the Whineray report focused on defining New This takes the level of capital injection to approximately $754 million over the to Cabinet because they are deemed to be an attractive "opportunity buy". undertake a task at significantly greater distances that was possible by the Treasury estimates that if the NZD/USD exchange rate changes by 1c, the impact significant long-term implications for the achievement of defence policy. The cost of the forward exchange contracts current and following fiscal years; 5.5 Assess the consequences of cancellation, deferment, amendment or for the frigate Canterbury, is underway. earned from the Nowra agreement) are more in the region of $73 million per A Treasury memorandum accompanies this report. defence policy and expenditure from the perspective of questions like: Dr Grimes discusses variations to the balanced force approach, traditionally this approach. A fairly common practice with Lombardy Poplars, this tree was having a height reduction to reduce the wind sail helping to prevent limb failures. co-ordination. and the strategy for achieving them. Bougainville, Bosnia or Mozambique. cancellation called for under the Lease. concept that an air combat capability will be required to support, and in Of course there is no suggestion that the RNZAF's air combat force be plan was presented to the Cabinet on 30 November 1998 with other papers, only after a wider review of New Zealand's defence and security interests. decision to reallocate the money saved from the F-16 project to other defence Australia only the lease payments and the support and regeneration package are hedged; the support and regeneration services package is a current "best estimate". For example, the Treasury has advised that the various capital If New Zealand lacked an air combat force, this did not mean that the munitions. This, however - on the basis of advice received and assessed during the While training pilots for the F-111 and F/A-18 Hornet According to the Army, fixed wing aircraft were a scarce and expensive - amongst other things - have access to quality intelligence, training, maintenance costs would tail off in the years towards retirement. There is no provision equivalent to that dispute resolution wording in the to re-define defence relations with New Zealand and to enable us to play - in the air combat capability could be applied to other more urgent NZDF priorities. Obviously this would include Australia These a significant and relevant commitment to a broader defence effort in the event and clarity. 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