An extra $35 million a year for new Defence costs

Budget 2010 provides an extra $35 million a year to fund increased costs and new equipment for the New Zealand Defence Force.

“The Government is committed to ensuring the financial sustainability of Defence,” Defence Minister Wayne Mapp says.

“The work we have done on the Defence Review has highlighted substantial cost pressures developing in Defence.

“New equipment such as the Protector fleet for the Navy and new helicopters for the Air Force means we have to fund sharply increased depreciation and operating costs. This extra money will help offset the depreciation burden.

“The current Value for Money exercise aims to reallocate funding within Defence to make the best use of this new equipment and allow it to be enhanced.

“In terms of personnel, the Defence Force is shifting more resources to the front line. Our priority is to ensure the money is spent on the service people who are deployed on operations,” Dr Mapp says.

“The Defence Force has the skills and tools to deliver the peacemaking, peacekeeping, and humanitarian assistance required of it. This year’s priority is to ensure the full benefit of these resources is available to our service personnel in the most effective way.”

ENDS

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