Tod - in your view, what/how many quantities (of quality assets) should a nation like NZ have, ideally, for these important roles (bearing in mind NZ's actual wealth to fund, operate and periodically upgrade such vessels, to be comparable/interoperable with its "AUSCANNZUKUS" counterparts)?
Most Kiwis here would say at least an additional (3rd) Frigate, to have one at sea/work up/dockside.
Or some may advocate 4 such vessels, as was the case in the latter Cold War years.
But wouldn't a figure of 6 such vessels (as it was earlier during the Cold War) be the "ideal", in terms of 2 vessels on station (perhaps surging to 4 easily if circumstances required that)?
That would be my "ideal" (plus a couple of other types of "quality" assets) but we're probably looking at GDP/expenditure for defence of around 3-3.5% to maintain/sustain such a naval force (and other related, desirable assets).
So what would be more realistic in your view?
A few things to keep in mind with my response. I likely see the world differently than others do. I do not see things in black and white, since the world is really black and varying shades of gray. With that in mind, I tend to expect things to go wrong, and plan accordingly.
With that in mind, what I see as appropriate will include some policy changes which I think would improve the situation for the NZDF, even though the chances of the policy changes going through might not be all that realistic.
I will also endeavour to explain why certain capabilities and/or specific bits of kit I think are needed.
On the policy side, I would have the Vote Defence changed around, because the way it has most recently been reported, while it shows numbers, it does not give a very transparent idea of what the funding is going towards.
From the most recent Vote Defence I could find numbers for, the 2014 Main Estimates, the total for Vote Defence was NZD$3.087 bil. or ~1.2% GDP. Digging through the document, I could not find out what the amount was for the Capital Charge. Based off past Vote Defence budgets which I have gone through, it (the Capital Charge) work out to ~40% of the total for Vote Defence. Operating under the assumption that the Capital Charge has not gone away, but is now just being factored into the figures without being specifically named, that would mean only ~NZD$1.85 bil. was being spent on Vote Defence, or ~0.75% of GDP. One of the things I would very much want to do, was eliminate the Capital Charge, so that it became much easier and accurate for people in NZ to see how much (or really, little...) was being spent on defence, both in terms of a dollar figure, but also as a percentage of GDP. For a point in comparison, the 2015 Australian defence budget of ~AUD$31.9 bil. is ~1.9% GDP, which begs the question of "why of is there such a large difference in the GDP% allocated between NZ, and it's closest ally, major nation, and largest trading partner?"
There are other policy changes which I would like to see, again to make the defence allocation more transparent. Among them would be to take out activities which do not actually involve current defence force assets, personnel, and/or their dependents. To further illustrate what I am referring to, the NZD$3.087 bil. in Vote Defence includes over NZD$146 mil. overseen by the Minister of Veterans Affairs. That means 4.7% of the Vote Defence budget (including Capital Charge, most likely) is not involved in covering the current cost of equipment, maintenance, operations, or pay for personnel. Remove the Capital Charge, since that is not actually funding received or spent by Defence, and the budget percentage belonging to Veterans Affairs rises to just under 8% (7.88%). Please keep in mind I am not advocating for the funding Veterans Affairs receives to be cut, I just do not think it belongs under the heading of Vote Defence. On a related side note, there is less than a NZD$1 mil. difference between the amount allocated to Support Youth Development, and Operationally Deployed Forces supporting UN and other international agencies. While NZD$12.27 mil. is not a significant amount how much benefit the NZDF really gets from it, either directly or indirectly. I can see how the NZDF could benefit from supporting the Cadet Forces, but that is it's own entry, to the tune of NZD$3.8 mil.
Also with respect to policy, I have to question some of these whole of/joint gov't agencies programmes which the NZDF is involved with. At times it seems that the NZDF is providing services for other departments, allowing these other departments to provide services or meet tasking they otherwise could not with their respective resources, yet the service or activity is being paid from the NZDF budget. I have no problem with the notion of 'whole of government' initiatives, with different departments and agencies working together to provide an impact which is greater than the sum of the parts. I do take issue with the NZDF either neglecting, or being unable to perform Defence taskings, because it is doing the work of other departments. Examples of this would be the RNZN IPV's and before them, the IPC's, and how MFisheries and Customs wanted the capability for their respective responsibilities, but they are "NZDF" assets. Or when an
ANZAC-class FFH was tasked with delivering a load of firewood to Chatham Island (I think it was Chatham), rather than whatever agency was responsible for shipping the firewood either chartering a cargo vessel, or hiring a shipper to arrange delivery. From what I remember of the story, the shipping cost using the frigate was significantly higher than it would have been, had commercial transportation been utilized.
My interest in these changes in policy is so that the actual cost of Defence is made transparent. This could permit a more honest discussion on how well Defence is resourced, as well as what is expected of and appropriate for Defence.
The other policy which I have not yet mentioned, would be for the Vote Defence budget in real terms, to be increased. While I do feel that 2% GDP is quite affordable for NZ to achieve, I doubt that would happen short of a major and glaring change in the regional strategic outlook. Having said that, 1.5% GDP, or even the current 1.2% GDP, both in real terms so not including the Capital Charge, would allow for some significant capability increases (or returns, in many cases).
End of Part I