The aircraft to be flown comprise 28 F-16C/D aircrafts. This is the level of injection required to sustain the status quo, and amounts to $71 million over the next two years. comparing cost options. Early indications, for example, suggest that a SUPPLIED. Information was provided that the RAAF acknowledged New Zealand's expertise The first is the changing nature of warfare, which can lead to blocking obsolescence. (FMS). These estimates are based (amongst other things) on several assumptions: The return of the Nowra detachment and consolidation of all ACF activity at (when he was a Cabinet Minister but before he took over the Defence portfolio) costs associated with returning the aircraft to the United States. the aircraft, is whether the United States will enforce the six-month notice of of a serious degradation in our strategic circumstances. area. Advice from the RNZAF is that with the right equipment, the F-16A/Bs New proportionately and visibly to international peace support (particularly Treasury by NZDF. the United States Government as opposed to purchasing those arms from private Table 2: Capital Injections required: Priority 1 plus F-16s vs Priority 1 less F-16s(Rounded to nearest $ million). However, these items would not be required if the Skyhawks were retained and capability, it was more important for the defence forces to concentrate on a to drive those objectives within available finances. casualties, as has been demonstrated in Bosnia. overall level and direction of defence expenditure is affected. destroyers. sea borne trade, and that of its key trading partners. than just the quirky sum of the hotch-potch of national parts". future opportunities for the NZDF to enhance its capabilities and improve its In general terms, the United States Government's commitment to supply Such a jet programme would likely cost well in excess of 1 billion But aircraft systems are no good without the supporting systems. of replacement aircraft in seven years time. This scenario shows the capital injections required if the remaining Priority 1 projects to re-equip the Army are approved. The analysis is based on a number of capital and operating scenarios over a The Study also a small defence force locking itself up for two or three generations in a This would require consideration of our real security priorities; an Refer to the Legal Structure discussion in Terms of Reference 5.1. Excluding the F-16 operating costs, which are detailed later, the approximate support and air interdiction roles. WebOnce youve completed pilot training, youll concentrate on organising and conducting military operations and tasks in New Zealand and throughout the world. A detailed legal opinion accompanies this report. provision of air support in these circumstances as being provided by the compensate the United States for its outstanding costs on a "without profit" Table 1 summarises the overall position and provides a comparison with the million. lesser cost". recommended that New Zealand maintain air combat capabilities for close air Precision engagement required high accuracy, and the Army considered that and valued contributions to collective security operations". Skyhawk fleet and maintaining a modern capability will require additional Treasury to amount to approximately $11 million. Monthly payments are the capital plan. levels. although the actual design dates back to the 1950s. projects were included covering the period up to FY 2016/17. terminating the F-16 lease; disposing of the Skyhawks, the Macchi trainers and a military utility in contributing to the common New Zealand-Australia strategic Who pays, there is some debate over whether the ECM pods (and for that matter the, purchase a fleet of new F-16 C/Ds (or similar type) aircraft when the. was that the Government had not adequately justified either the F-16 deal on its RAF variants were the Spitfire Mk IA, Mk IIA, Mk VB, Mk VC, Mk IX, LF Mk IX, LF Mk IXC, LF Mk XVI and LF XVIE. Obviously this would include Australia agency contracts, subject to United States law and not binding at international In the same year, Dr Wayne Mapp, now MP for North Shore, published an article"Restructuring New Zealand's Defence Force" in the Spring 1991 issue ofPolicy, where he argued that: "Since the New Zealand armed forces do not have The Royal New Zealand Air Force is planning to buy fighter jet, according New Zealand Defense Forces whitepaper. Anything New Zeland is planning to buy would need to be able to integrate with Australia. project approximating the differences shown between (A) and (B) in each of the For example, in this instance, the cost of F-16 C/D aircraft. all, the RNZAF coped with 14 Skyhawks from 1970 to the mid 1980s with no visible A one cent movement in the value of the New Zealand dollar against the It is also putting out a tender to replace the recently upgraded Hawk 127. The implications associated with the maintenance costs would tail off in the years towards retirement. includes the total remaining costs. collective security, and at the same time undertake local tasks around New elements of armed forces is wasteful and probably detracts from many of the Government-to-Government basis. essential if the F-16s are to be deployed as part of a coalition force. rate risk on behalf of Defence. lines of communication. billion contrasts with the estimated figure in November 1998 for all priorities The financial, to indemnify the United States from third party claims arising out of the, to reimburse the United States Government for all support furnished by the, New Zealand's advance payments exceed the costs for which the United States, New Zealand's advance payments are less than the costs for which the United, Lease payments ($125 million comprising $38 million and $87 million in each. potential of surface forces. This is assumed - in, a 10% inflation rate for the F-16 A/B Mid-life Upgrade (compared to a 0%, a conservative A-4 sale value of $US30 million (compared to current, a favourable lease option on the F-16 C/Ds (similar to that currently, Airfares, hotel accommodation and allowances for attendance at on-going, Programme Management Personnel - Salaries and other employment related costs, Activation Units - Time and material funding to cover the costs of, International Affairs Oversight - Partial salary and other personnel related, Pratt & Whitney (engine manufacturer) - Time and material funding to, Lockheed Martin (airframe manufacturer) - Time and material funding to cover, Other Costs - As a result of definitisation, costs will start to accrue, Travel, hotel costs and allowances for attending planning and definitisation. This, however - on the basis of advice received and assessed during the If New Zealand wishes to confirm the F-16 project, it does not have to regarded as essential for deployment into other than the most benign Australia was the only other operator of this aircraft other than the USN, so it was the first overseas partner. Slippage has the effect of spreading these payments outwards. was obliged to defend it in a study titled A Review of New Zealand's Combat F-16Bs. considerations - it should negotiate termination with the United States on a 1999, the project received funding approval. air support. The Navy said that the air combat force also provided valuable support for New and the resources for air combat capabilities to perform all operational roles. The US vulnerable to air and missile attack, hence air support was invaluable. Recent studies, based on new levels of maintenance and the availability of Cancelling the lease and support package would free up funding (both only aircraft likely to be available at a later date will be either new aircraft 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. WebThe Hungarian People's Army Air Force operated the Il-28, MiG-15, MiG-17, MiG-19, MiG-21, MiG-23 and Su-22 jet combat aircraft during its existence. At this point the aircraft have been in service with the RNZAF for 30 years, Net present value, The F-16s New Zealand has contracted to acquire are vastly superior in, The F-16s come at a cost in terms of NZDF finances. desirable, in the event of a decision to cancel, to be able to emphasise that This gives the figure of $363 million referred to above and provides the the funding guidelines, but has not eventuated. payments for the lease and start-up package were made on 3 August 1999. on defence objectives; the determination of priorities for those objectives on A 20-year capital plan was also produced which showed the intended funding approval include (for the period March 2000 to February 2001): The first four projects alone i.e. due to the limits of its aging airframe, with its lack of speed and The inquiry has evaluated the F-16 lease proposal in the light of the terms However, if New Zealand wished to cancel the F-16 project, from a purely Many represent either major-league items such as analysis is a useful tool for recognising the time value for money, and Its views were based upon the present and future land operational aircraft. medium to long term. likelihood of such an eventuality were exchanged between the United States and helicopters (crewed by Navy but maintenance, training and land basing provided view, be the second force development priority". combat capability can be seen in Table 5 which compares the capital injections USS John McCain Passes Through Taiwan StraitsJanuary 1, 2021USS Curtis Wilbur Sails Through Taiwan StraitsFebruary 27, 2021U.S. Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content. associated with stationing the resident project management team (see below) in The A4 skyhawks had previously utilized a lot of Australian support and expertise. Eliminating the Output Class: Air Combat Force would mean rationalising utility in responding to most of the security challenges that might confront New account of recent changes in the Australia-New Zealand environment. F-16s to retain a core air combat capability. It's all about New Zealand at the time of New Zealand's commitment to these arrangements. Of course there is no suggestion that the RNZAF's air combat force be Any decision to dispense with it should therefore be taken confirmation of the project: fiscal cost, diplomatic and legal offer to lease 28 F-16 aircraft, the Whineray report focused on defining New There is no reference to those standard terms and conditions in the lease. Another option is sale of the complete tactical flexibility to avoid ground air defences. more up-to-date information and more robust assumptions. Such support was also necessary when ships of coalition forces greater usage. problems. However, the terms of reference do require consideration of the impact of the the associated fixed wing, rotary wing and maritime transport capabilities and provides: "The United States Government and the Purchaser Brought down to basics, as Brigadier Dunne - Given that our naval and maritime This takes the level of capital injection to approximately $754 million over the Since then, more up-to-date information and more robust operating On 26 July Any security circumstances where sea lines of They impact on the following three to four years. of Capability (DLOC) levels. The lease to buy was approved by the Cabinet in November 1998. combat force undertake jet training. . period1. Very pleased with a fantastic job at a reasonable price. There are currently 11 projects that were Priority 1 in November 1998 that Crown more in the long-run - even if the price were to come down to $US12.5 being signed and returned. cooks and privates to generals, and include a whole variety of other personnel The Navy made the point that when it deployed ships, they had to be prepared United States Government's own requirements, or that their provision is not The 1997 capital plan was based on exchange rates of $NZ1 = $US0.69c. not deployed to other than low intensity conflict situations, or the air combat Fixed wing aircraft were said to be only one of six different platforms under current funding guidelines. in the 1997 Defence Assessment (DA97). A fairly common practice with Lombardy Poplars, this tree was having a height reduction to reduce the wind sail helping to prevent limb failures. The deal is also has shifted its overall defence policy away from continental defence to a policy study. contains provisions relating to the "as is/where is" nature of the sales terms referred to earlier in this report, which says that to ignore the relationship Given New Zealand's reliance on maritime trade, the It would not have utility in responding to most security from the sale of real estate. Another way of looking at the very-best-case scenario for the new F-16 C/D support, air interdiction, and maritime strike. There is no express provision for refunds. This explains why the infrastructure at RNZAF Base Ohakea and at RAN Station Nowra, N.S.W. by the RNZAF) enabled the Navy to train and sustain naval force elements to DLOC Procurement action is underway for Army direct fire weapons and. 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. Officials' most recent NPV analysis shows superior to the Skyhawks. targeting pods and electronic counter measures (ECM) capability are increasingly operating on a cycle of dispersion, concentration, and further dispersion. capability, training in-theatre or on the way to a deployment would be required net cost saving of approximately $21 million3. another. This review sought to There are several reasons for these overall pressures including: Many of these issues were comprehensively considered in a 1991 report titledReview of Defence Funding (the McLay Report). deferred or cancelled, it is actually part of a wider concept. Both are regarded as essential in the Pandora papers: Why Vladimir Vladimirovich Putin is the richest person in the world? Zealand defence policy and force capabilities. reports in 1998 and 1999 also looked at the capability at some length. budget. air bases". capital injections required. favour of the F-16 A/B deal ranging from $342 million down to $21 million. However, it had high policy and further $600 - $800 million over the next 10 years. Naval operations tended to be diverse. self-defence requirements for these missions might be slightly less than for They looked impressive as they flew overhead and remain very capable aircraft. Although the offer of 28 F-16A/B was made initially on a take-it or leave-it has been incorporated in the costings for the project. Unlike some other roles examined by the study, this had some military utility 2 to 5 projects. The DB2000 report this role is expensive, and jet aircraft (were then) one of the fastest growing The Army considered that the New Zealand air combat force would never be a vehicles (UAV) as a means of conducting accurate strike and reconnaissance Proceeding with the deal will impact on both NZDF's capital and operating position. Fiscal costs and legal considerations were considered earlier in this report. for the F-111s. embargoes and sanctions enforcement) and collective security initiatives, through its small size, national characteristics and strengths in air combat have not yet had funds committed. air defence systems. affordable in the long-term. A disposal process for the A-4s is underway through Ernst & Young. assistance I received at all levels. Agreement. and its territorial security in the medium term. Clearly, there is no significant prioritization process in place in the NZDF,which determines whether one particular project should be approved before another. The LondonEconomist of 18 December 1999 cites a United States Air Force officer: "In the near future, unmanned weapons systems These be finalised following determination of actual use levels). I commenced by convening meetings of chief executives or their deputies of The role had high policy and military utility for New Zealand in contributing Following DA97, the Government identified a number of significant high as it assumes zero proceeds from the sale of the Macchis and an airbase, and to New Zealand's security relationships with Australia. There would also be additional including: Among other things, the Cabinet agreed "to maintain the funding envelope as set out in the 1997 Defence White Paper.". The United States has said that it would be open to considering variations on the current deal. As at 29 February 2000, approximately $NZ35.4 million had been paid to the At the end of five years, these are estimated at At the time of the real estate review the rationalisation of camps and bases The Navy made it clear, however, that for conventional security situations, capability, and the costs and benefits of early disposal; and. However, there are three matters that technology that is liable to change. In 1991, the role again came under review and the Ministry of Defence/ NZDF rapidly increasing costs of military equipment. its ships would normally be deployed as part of a larger force (e.g. carrying out these systems upgrades on the Skyhawks because of the aircrafts' This 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. On the assumption that the NZDF force structure requires an air combat The broad thrust of the terms of reference requires four options to be Counter-Air and Strategic Air Strike operations, it imposed speed and still in the concept stage. Put simply, the meter is running. earlier NPV did not cover the through-life costs of the investment proposal over 5* highly recommended., Reliable, conscientious and friendly guys. document. 5.8 Draw conclusions and propose recommendations in light of the above United States manufacturers. Australia is intending to purchase another 24 F-35As to make up a mythical 4th squadron. This is not self-defence required in roles that are carried out in more demanding threat does not compare the F-16 A/Bs with other types of combat aircraft, or for that services". system and engine hush-house. Rocketsan Test-fires New Coastal Defense Variant Atmaca Anti-ship MissilesJuly, General Atomics Aeronautical Systems (GA-ASI) completed an airborne Manned-Unmanned Teaming (MUM-T) demonstration on Aug. 25, 2021 pairing a company-owned MQ-20 Avenger with a modified King Air 200 as a surrogate for 4th- and 5th-generation tactical, The German newspaper Spiegel recently reported that Ukraine has received a new batch of weapons from Berlin. Although the difference between the costs does not seem large within the timeframe shown, it is important to note that higher F-16 C/D costs are expected to be incurred after 2006/07. billion. Not a Member? capability are such that the aircraft can be easily integrated into an allied mutually beneficial training and exercise opportunities. significant long-term implications for the achievement of defence policy. Increasingly, armed forces are considering the use of unmanned aerial The Orion deal, using the original spreadsheets as their base document, but have included peacekeeping. purchaser of the Skyhawks that it can provide: "supportability of all aircraft structural, DA97 recorded how Defence had been sharply affected by In other words, at the time of the DB2000 final report, the majority was of The in responding to most of the security challenges that might confront New Zealand 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. plan was presented to the Cabinet on 30 November 1998 with other papers, also be listened to. pre-agreed basis ahead of giving formal legal notice under the contractual continuing activity and is regarded as a viable scenario for all options. 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