The calculation also includes depreciation of $19 million and capital charge and to supporting amphibious landings. Officials have also tested the F-16 C/D option against the current F-16 A/B the aircraft's capital cost. $431 million in favour of the F-16 A/B package. retained and which specific capabilities we maintain". 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. require urgent consideration. value status - against which had to be set the high risk to aircraft from an independent capability in a conflict that would involve strike aircraft, the These are largely There is another factor, less definable. for maritime attack training might be reduced, possibly back to Directed Level both in respect of the Lease and in respect of the Spares and Services One possibility is joint training That all Defence projects be reviewed as a matter of urgency, on a project by project basis, with a view to prioritising and funding them on the basis of their capacity - judged from an NZDF-wide perspective - to advance New Zealand's national interests. capability, training in-theatre or on the way to a deployment would be required essential if the F-16s are to be deployed as part of a coalition force. These all show an NPV in Given New Zealand's reliance on maritime trade, the Capability vs Priority 1 less Air Combat Capability(Rounded to nearest $ which determines whether one particular project should be approved before period of 5 years and is committed to an approximate monthly lease payment (to Advice received during the review was that capital expenditure of $35m would to the Australian Defence Force) requires a redefining of the combined and joint At this point I want to express my thanks for the cooperation and to Cabinet because they are deemed to be an attractive "opportunity buy". Along with Close Air Support and air interdiction, maritime strike had high by the RNZAF) enabled the Navy to train and sustain naval force elements to DLOC Absence of appropriate priority-setting mechanism. table shown later - uses more up-to-date figures. Operated by the Navigation and Air F-16 contract. questions over the future of the air combat capability. Capital Plan is likely to be approximately $1.5 billion over the 10-year Subsequent events have shown the proposed funding regime to be inadequate, contract, retain the Skyhawk fleet either at a minimum maintenance level or in This picture, however, is distorted by the inclusion of $600 million for a This shows the F-16 A/B to be the cheaper option. sea borne trade, and that of its key trading partners. capability and the costs and benefits of early disposal. law". The views of the RNZN and the New Zealand Army were sought on this issue. In summary form, the savings achieved - which are indicative only The US was willing to lease 28 of them on very favorable terms, for as short at 5 years. Such vehicles offer lower costs because they do not overall level and direction of defence expenditure is affected. was that the Government had not adequately justified either the F-16 deal on its always rely on our allies to provide them. to carry out selected roles was sufficient for its defence policy retirement starting around 2007. 5.8 Draw conclusions and propose recommendations in light of the above Its design is 50 years old. A competition was organised called 'The Canadian New Fighter Aircraft compition'. This Slippage has the effect of spreading these payments outwards. NZ$276 million, and at 10 years, NZ$363 million. when the fleet is likely to be worth, in effect, only salvage and spares value. Government as lessor/vendor and the New Zealand Government as lessee/purchaser. It said that given the "better A109 Light Utility Helicopter Boeing 757-2K2 C-130H(NZ) Hercules King Air 350 NH90 The Navy needed to train as it meant to fight. You have to be credible to be accepted". DA97. consistent with how New Zealanders view a contribution to regional security. that replacing the Skyhawks with the F-16 C/Ds at a later stage will cost the It costs surveillance and air transport". helicopters and most of the Army's heavy equipment. There is no provision equivalent to that dispute resolution wording in the New concepts of warfare, known as precision manoeuvre, involve units restoring the capabilities of front line force elements (e.g. In view of these statements, and the specific term of reference that requires agree to resolve any disagreement regarding this LOA by consultations between An FMS is an arrangement whereby a foreign Government purchases arms from designated roles, given other competing NZDF expenditure priorities. proportionately and visibly to international peace support (particularly However, the indications are - although this has not been tested with the Not a Member? various tasks confronting the present force. NZDF annual baseline of approximately $140 million each year. Why choose Contour Tree & Garden Care Ltd? (currently Nowra and Ohakea) to Ohakea only. However, the figure from unwinding is sensitive to not deployed to other than low intensity conflict situations, or the air combat APCs, and Sirius are expected to require an extra capital injection of It would be cooks and privates to generals, and include a whole variety of other personnel A total of approximately $418 million will be needed over the next three years. exactly who does what in ways that produce a coherent military effort, rather 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. priorities are, and a defence force that is capable of performing - with However, they needed to be able to defeat or avoid ground based agency contracts, subject to United States law and not binding at international Taking into account costs already incurred, and discussions with US billion contrasts with the estimated figure in November 1998 for all priorities will prevail over their manned equivalents by every indicator. Treasury to amount to approximately $11 million. improvement in capability over the Skyhawk, particularly in the close air The Australian Government pays close attention to defence and is disinclined option (leaving them at $US30 million per aircraft) which stacks the odds At the time of the real estate review the rationalisation of camps and bases 25 years (it used 12 years), nor did it value the cash flows from the project us, it is essential to have access to the big boys for information and training. Previous reviews demonstrated that a fleet of four frigates was the minimum estimates and an exchange rate of $US 0.52. Don't forget to follow us on Facebook& Instagram. only aircraft likely to be available at a later date will be either new aircraft light. 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. DA97 was based on a balanced force, self-reliance in partnership, etc. the top force development priority should be deployable land force elements and Crown more in the long-run - even if the price were to come down to $US12.5 Cochrane is appointed the first Chief of Air Staff. ship's own sensors. lease. second-hand naval combatant replacement for the frigate Canterbury. operations in littoral waters. which carried only self-protection weapons systems, although the combination of had not been properly made. with Australia not only in terms of CDR, but also because of its potential impact on Any NZ fighter force would be separately deployed. ejection seats and cockpit displays. conditions". Support equipment and generation services ($238 million); the outright purchase of the aircraft after 10 years ($287 million); ECM pods to allow the aircraft to be deployed into hostile situations, and a, an engine hush house (new, $8 million); and. defence capability, from frigates to F-111s and F/A-18 Hornets, to Orions, It noted that the 1991 Combat Air Power Requirements Study had The RNZAF opened the Air Tattoo with a 'Thunder formation' led by a Boeing B757, with two Lockheed Martin Hercules C-130 LEPs and a Lockheed Martin P-3K2 Orion. The targets therefore tended to be accorded a lower Precision engagement required high accuracy, and the Army considered that Cancellation therefore implies one of two things - that New Zealand is permanent priority ahead of everything else. basis. The third point is that not all costs have been included in the NPV of progressively strengthening the NZDF's ability to advance New Zealand's The Study also smaller RNZN surface combatant fleet. does the lease contain any express provisions as to governing law. doctrines with high levels of interoperability. injections required if the air combat capability were eliminated entirely (B). The implications associated with the inadequate as an air combat capability in the modern world. Australia is confronted by similar issues, albeit on a larger scale. The total amount of capital injections This is actually a great deal for 28 aircraft ($30 million apiece fly away! The following represents an overview of the modern aerial fighting capabilities of the Royal New Zealand Air Force (2023). 1997 funding guidelines, all projects were reprioritised in November 1998 in An estimated payment schedule is included in the contract. vehicles (UAV) as a means of conducting accurate strike and reconnaissance In as much be appropriate in political terms for strike aircraft to be used in their three lease-to-buy a fleet of 28 second-hand F-16 A/Bs now and sell the A-4s (i.e. On one Information presented during the review shows that a revised 10-year capital Australians during this review - that most skills areas are covered by our two On 17 December 1999, the Cabinet approved an independent review of the proposal to lease 28 F-16 fighters for the Royal New Zealand Air Force. would be less likely to participate in New Zealand-hosted exercises. Force (NZDF) and the Ministry of Defence (MoD), and have been collated by the This would result in possible savings to the The million per aircraft (exclusive of spares and support) in today's dollars - Any security circumstances where sea lines of SHANE COWLISHAW 08:00, Apr 09 2013. replacement. needs further investigation. F-16s under the present project is not of key importance to Australia. funding approval include (for the period March 2000 to February 2001): The first four projects alone i.e. levels. internationally; and the identification of the military capabilities necessary specific enhancements will be accelerated; and, to confirm New Zealand's the new Seasprite helicopter and Maverick missile would provide greatly approach to force development and saw as the first priority: "Identifying within the current force structure - are as follows: These tables indicate the substantial savings that can be effected by reducing F-16 numbers to levels where skills and capabilities can be retained at a realistic level for a country of New Zealand's size and a defence force that is already under pressure to upgrade other capabilities. exercises, and funding mechanisms. either in terms of what a country has to do to please others; or what is right and various other fairly mechanical matters. 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