A
Aussie Digger
Guest
Unfortunately defence in any country is not a money making business for the Government. Nearly all Countries (except possibly Russia and the USA) purchase the bulk of their military equipment overseas.Sea Toby said:New Zealand is also a small nation of only 4 million people, even though it has a very large EEZ. Critics of New Zealand defence acquistions have to understand that most of these dollars being spent are going overseas without much or any positive effects on its economy. Defence spending for new equipment is like a giant sucking sound of money leaving the country.
However, New Zealand has made great strides. There used to be a time in the not to distant past when all of their warships came from the United Kingdom. In the recent new naval construction, New Zealand has been offered offsets, constructing many of the Anzac class frigates modules in New Zealand, not for just its two but for all of the ten Tenix build ships. Likewise, with Project Protector New Zealand is building modules for the OPVs, and are building entirely the IPVs, although many of the weapon and sensor systems are built abroad. New Zealand is seeing over a billion dollars of offsets with the Anzacs, more than the cost of their two frigates, and is seeing over a hundred million dollars of offsets with Project Protector, significantly reducing the sucking sound.
With the upgrades of New Zealand C-130s and P-3s, while foreign corporations are bidding on the contracts, much of the work is being done in New Zealand although most of the parts were build abroad.
There is a big difference using defence acquistions to boost your nation's economy and having a giant sucking sound as these dollars go abroad....
Through life support, systems integration, occasional module/component builds, are about the best most defence industry companies in Australia/NZ can achieve.
It is not a justification for refusing to spend on your own defence however. Nor is it a reason to ignore international obligations by deliberately limiting your own capability.
NZ IS a small Country and it's defence contributions are always relatively minor. It is a wealthy Country proportionately however and could easily increase it's defence spending and effort, should the politicians be so inclined.
By Western standards it's defence spending is extremely low. a relatively minor increase in budget would allow a massive increase in capabilities (NZ$20 million a year plus, $4-5M a year support costs per aircraft, would give it a fleet of 28 F-16's for example).
An extra $900m a year (roughly) would would be available for NZ defence, if she were to spend what Australia does, as a percentage of GDP, (1.9%, even though Australia is a relatively low spender, herself).
This would provide a massive lift in available funding for the NZDF, and would allow the acquisition of just about everything, even the most ardent NZ defence supporter could want....