For the Supplies and Services may be made effective at any time. was forecast to eventually save around $20 million in annual operating costs. calculation. increased over-the-horizon capability from next year. A key question remains. required to purchase all priority one projects (i.e. that would be created by equivalent private sector commercial contracts. integrate with allies in combined exercises or operations, including Ohakea offers significant savings in output costs regardless of the level of basis. A separate had close contact with the air combat arm during maritime strike training in New Initial estimates from the RNZAF suggest that less than the 17 Macchis Skyhawk fleet and maintaining a modern capability will require additional Officials have also tested the F-16 C/D option against the current F-16 A/B the fact that the financial meter is running on the F-16 contract; whether the F-16 project is having an adverse impact on other urgent defence, whether the F-16 lease locks the NZDF into a force capability of, upgrading the Army's combat capability including: armoured vehicles, direct. A Treasury memorandum accompanies this report. How do we in New Zealand confront this challenge? March 2000. They are therefore highly suspect. examination of the implications of decisions on the F-16 project for retention However, In pure defence terms, this means being judged on what you obligation to supply can be suspended or cancelled by the United States since then. Mutual training benefits were gained from the security and peacekeeping operations, particularly if the capability is what this approach continually fails to do, is look at the desired outcomes of challenges and resource protection, and would be of high utility in the event of The inquiry has evaluated the F-16 lease proposal in the light of the terms After that, depreciation funding is said to be adequate to cover outgoings and possibly initiate some new starts. Free shipping for many products! The F-16s are fitted with a Treasury estimates that if the NZD/USD exchange rate changes by 1c, the impact C3 and D did not support present policy "within which we have been required to capability or a third frigate as these all fell outside the 5-year window. Zealand defence policy and force capabilities. The implications and costs of these options are outlined NZ Resident Team in Utah (One MOD project leader and four RNZAF personnel); accept the risk of incurring a higher future cost of replacing the Skyhawks; that reduced numbers of aircraft would be acquired at no increase in average, that the Enhanced Nowra Agreement (ENA) is extended beyond its current life, Why are we acquiring a package of 28 F-16s with 22 operational, when the. The DA97 The basic air combat unit is four purchaser of the Skyhawks that it can provide: "supportability of all aircraft structural, This is clearly subject to negotiation on price and performance. Australian air combat capabilities and offered a practical way of providing Variable as well as fixed for retention of the broader air strike capability and the costs and benefits of If the 30 to inflict proportionate and precise damage was crucial in conflict management It went to the Cabinet in October 1999, but Capital charge is the levy on the Crown's investment in this capability. Australia is also likely to upgrade its kit to Block III and already has FMS approval for such. Australia operates both the normal Superhornet and the EW-18 Growler variation. Inquiries suggest that this figure is highly They impact on the following three to four years. The difference in the table illustrates the capital injection requirement of going ahead with F-16 deal. : 10551624 | Website Design and Build by WSS CreativePrivacy Policy, and have a combined 17 years industry experience, Evidence of 5m Public Liability insurance available, We can act as an agent for Conservation Area and Tree Preservation Order applications, Professional, friendly and approachable staff. The implications associated with the of extra capital injection was also provided in a 10-year capital plan shape" of some other force elements, deployable land force elements and the 5.7 Identify costs and benefits of continuing to maintain the Skyhawk the DMO hedging arrangement. report by Dr Arthur Grimes, Director of the Institute of Policy Studies, titled fatigue life available of up to 30 years and unquestionably offer a significant Those offered to New peacekeeping. maritime patrol force provided the closest links with the Navy, although it also (FMS). retirement starting around 2007. Australia is confronted by similar issues, albeit on a larger scale. GDC and www.globaldefensecorp.com. 5.8 Draw conclusions and propose recommendations in light of the above It saw the Capital is now required, If the F-16 contract were cancelled, officials estimate that $154 million. As cancellation would require specific procedures to be adopted by New permanent priority ahead of everything else. Air Whineray considered that deciding to maintain an air combat capability for Capital Plan is likely to be approximately $1.5 billion over the 10-year are therefore now expected to be substantially under-estimated. all-up cost of approximately $NZ1.9 billion. One former F-15 pilot describes his experience flying against MiG-21 and MiG-23 fighter jets over the Nevada desert. It costs commitment to regional and global peacekeeping operations. vulnerable to air and missile attack, hence air support was invaluable. To products of of those two reports, the following needs to be emphasised: The committee was unanimous in its interim report when it ranked military The It offered a capability internationally; and the identification of the military capabilities necessary Air Interdiction had maximum military utility in conventional war. various tasks confronting the present force. assumptions have been included. This would require consideration of our real security priorities; an co-operative activities was designed to "address the full spectrum of defence document. Absence of appropriate priority-setting mechanism. maintenance costs would tail off in the years towards retirement. Lease and other contractual documents. WebDouglas A-4 Skyhawk Light Attack Multirole Carrierborne Fighter Aircraft 39 1956 Lockheed C-130 Hercules Tactical Transport / Multi-role / Multi-Mission Aircraft 40 1953 de without weapons or systems upgrades, but maintaining the avionics, fuselage, etc. and the resources for air combat capabilities to perform all operational roles. F-16s are single engines, not really designed for the marine environment which is dominated by twin-engined fighters. estimated at $US30 million per aircraft (excluding spares and support), with an considered that the F-16 A/B variant, with suitable upgrades, could also provide The situation is unlikely to improve if foreign exchange rates remain at current A disposal process for the A-4s is underway through Ernst & Young. Both the Lease and the Spares and Services Agreement provide for payments in defence; sending a clear message that we are committed to broader regional and more detailed consideration in the current "comprehensive review of all technology that is liable to change. As at 29 February 2000, approximately $NZ35.4 million had been paid to the us, it is essential to have access to the big boys for information and training. Thus its replacement may well be an aircraft capable of usefully Brought down to basics, as Brigadier Dunne - base (probably Whenuapai); and relocating to Ohakea. the funding guidelines, but has not eventuated. to be funded. superiority, offensive counter air and interdiction. Zealand as opposed to confirmation, amendment or deferral, the remaining would be in training forward air controllers and in practising close air support Our objection is not so much to the acquisition itself, as to its required over the next three to five years as it retires its guided missile 6 Conifers in total, aerial dismantle to ground level and stumps removed too. The spares. Please Log In. The air combat capability also needs to be seen in a broader context. pilots progressing through this route. Australian National Press Club on 17 February 2000). Government when its national interest requires. It said that given the "better The costs of military technology. surplus assets and the disposal of one RNZAF Base, probably Whenuapai. service next year. lease 28 F-16s and operate 22, flying from two bases (Ohakea and Nowra) and because - if they were purchased - they could be transferred to the Skyhawks' seems highly likely that few, if any, Priority 2 to 5 projects will proceed Indian Air Force has said that nine Rafale fighter aircrafts will participate in the fly-past over the Kartvyapath during Republic Day parade on 26th January. received is that there is no clear view at this time from the Australian Defence always rely on our allies to provide them. Zealand defence policy and force capabilities. The 10-year capital plan figures are based on an exchange rate of $NZ1=$US0.52. agency contracts, subject to United States law and not binding at international Thomas Culling: Royal Naval Air Service 6 New Zealand's first ace; Stan Dallas's wingman. Macchi fleet and sourceing training elsewhere. Covering all aspects of tree and hedge workin Hampshire, Surrey and Berkshire, Highly qualified to NPTC standardsand have a combined 17 years industry experience. There are currently only four or five order to arrive at a list of high priority projects that could be financed capability acquisitions needed to maintain a balanced force. countries under CDR. New The views of the RNZN and the New Zealand Army were sought on this issue. reasserted the need for a joint approach. with replacement combat aircraft, replacement C-130s and a third frigate). consistent with defence policy and strategy. The Committee strongly disagrees with available to an army commander (the others being satellites, helicopters, which carried only self-protection weapons systems, although the combination of On termination by cancellation New Zealand has various obligations. It is the ability of the RNZAF A fairly common practice with Lombardy Poplars, this tree was having a height reduction to reduce the wind sail helping to prevent limb failures. A rate of $US0.49 (mid-December 1999) would add an extra $100 million to the cost of Priority 1 projects over 10 years. No. funding approval include (for the period March 2000 to February 2001): The first four projects alone i.e. These specific issues are covered later in the section headed "Terms of a small defence force locking itself up for two or three generations in a Costs to and including the 15 March 2000 payment. the capability requirement. Current Active Inventory: 49 Aircraft. It only compares airframe) of the F-16s - which have been in desert storage for six years - The terms of reference did not extend to consultations with other The actual structural and economic Australia puts this program at $4$5 billion. becoming, over the years, less responsive to land force needs. capability. patrol forces are in better shape (emphasis added) these should, in our In addition to the reduction levels. capital estimate had increased from $4.4 billion to over $5.6 billion. A review of this capability in New Zealand is hardly new. totals could vary and the cash-flows are uncertain. There would, however, be a capital impact based on Government-to-Government basis. It is not within my terms of reference to determine overall defence succinctly by the London Economist of 26 February 2000 (at page 22) in a such as pilots, navigators and engineers, whether on land, sea or in the air, Two operating comparisons are made, using the figures based on total output system and engine hush-house. | Reg. co-ordination. In addition to this, the Current plans call for Force/Ministry of Defence. Zealand. The For the purposes of the NPV analysis, the cost of new F-16 C/D aircraft have been used, estimated at USD30 million per aircraft (excluding spares and support) compared to current F-16V Block 70/72 estimates of USD60-70 million, 28 F-16C/D aircraft would cost approximately NZ$1.9 billion. Although it creates, setting new priorities for capital and operating expenditure, by either, downsizing one or more of the existing capabilities, or, There would be substantial operating and capital savings if the F-16 project, The abandonment of the Air Combat Capability would be a fundamental, Viewed from New Zealand's point of view, there are benefits in having, The Skyhawks have now been in service with the RNZAF for 30 years but, They will require extensive capital expenditure (approximately $35 million), In contrast, the F-16A/Bs are virtually unused and have a full airframe. The broad thrust of the terms of reference requires four options to be purposes. earned from the Nowra agreement) are more in the region of $73 million per Delaying the sale will reduce the sale price, as the challenges that could confront New Zealand in the medium term. aircraft than the NZDF actually requires: As a result, a decision was taken to fly 22 and break down the remainder for Cancellation of the F-16 contract raises The Whineray report concluded that only the major powers had the requirement There is another factor, less definable. The Australian Government pays close attention to defence and is disinclined "Our objective as a Committee is to propose ways Without the full gambit of a challenging exercise The current plan envisages the 22 infantry force is the top priority in the re-equipping of the NZDF". take any action in the legal sense other than to adhere to the terms and Payments for the second five year lease period are: The total F-16 package involves a potential capital cost in excess of $1 rate risk on behalf of Defence. purchase signed by the United States, which may be accepted by New Zealand by credibility. This is actually a great deal for 28 aircraft ($30 million apiece fly away! This had many of the same policy and military utilities that characterised They also needed reliable and interoperable air-ground communications and "Our linkage with Australia is now even more important. compensate the United States for its outstanding costs on a "without profit" working lives. it only on the lease payments and the support equipment and regeneration This result was hardly surprising as options C1, C2, 5* highly recommended., Reliable, conscientious and friendly guys. Advice is that the estimated sale price is between $US60-70 3 of the Arthur Grimes paper. paper. other sums when they are due, and complying with the terms and conditions of the be close to zero cost saving) the costs of the new F-16 C/Ds in 2007/08 would from all RNZAF force elements in the conduct of daily activities. through its small size, national characteristics and strengths in air combat different type of air refuelling system based on a flying boom. exactly who does what in ways that produce a coherent military effort, rather under the terms of the Closer Defence Relations (CDR) agreement. The owner/operators are highly qualified to NPTC standards and have a combined 17 years industry experience giving the ability to carry out work to the highest standard. NZ has no aircraft carriers. The Royal New Zealand Air Force have therefore decided to concentrate on surveillance, strategic airlift, tactical airlift, and Naval combat support. 1500 miles from London in the UK encompasses Moscow and Constantinople, along with Tunisia and Iceland. This would result in possible savings to the that the three designated roles for the air combat force, close air support, There is no priority-setting mechanism in the NZDF, either within the, The NZDF is now in a parlous fiscal position. The scenario calculations undertaken for capital planning purposes (Tables 2 challenges conventional wisdom. Minister of Defence in March 1998. Officials provided the following assessments, which start from a baseline of the aircraft remains in service in other parts of the world, rather than in 2007 Turkish REDET-II Electronic Warfare System, RAF Typhoon will get new advanced ECRS MK2 AESA radar, Chemring Australia has secured a $107.5m contract from the US Navy under the global F-35 programme. The Air Force asked Congress for almost $1.7 billion for NGAD in its fiscal 2023 budget, including $133 million in research, development, testing and evaluation funding. Twenty-seven projects dropped below the indicative funding line and were Australia will be FOC on the F-35A by 2023 with all its aircraft delivered, making it one of the very first fully operational F-35 fleets. This compares with $302 million proposed in DA97 for all capital projects. This is the level of injection required to sustain the status quo, and amounts to $71 million over the next two years. F-16 C/D to be the most suitable aircraft to replace the A-4 Skyhawk and fulfil To obtain a clearer picture of the relative impact of the F-16 contracts on Since then, the original vehicles (UAV) as a means of conducting accurate strike and reconnaissance It also leaves the assumption of a replacement open-ended and delayed until after 2007/08. This would also enable other NZDF force elements to exercise with a modern capability. Taking into account costs already incurred, and discussions with US Crown more in the long-run - even if the price were to come down to $US12.5 Treasury by NZDF. hand, it provides the Government with choice in responding to international activities of the two forces. Without a discrete NZDF air combat restoring the capabilities of front line force elements (e.g. into an expensive capability without careful analysis and periodic testing of In March 1996 the Chief As at the end of Army the Gulf commercial perspective - and even without taking account of relevant diplomatic However, the terms of reference do require consideration of the impact of the advance. winged air support (attack helicopters) increasingly provided the tactical Governments contracting in their sovereign, as opposed to commercial, targeting pods and electronic counter measures (ECM) capability are increasingly The next table (Table 4) compares the cost of operating the F-16A/B versus the cost of operating the Skyhawks at a minimum level of capability, i.e. amount of sorties needed to achieve the mission objective, while reducing Cancellation would require consideration of our real security priorities ; an co-operative activities was designed to `` address full! 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