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Defence Force may not be able to save $300m

The Defence Force may only be able to save up three quarters of the $300 million touted after the release of the white paper, Defence Minister Wayne Mapp said.The long-awaited white paper into the Defence Force was released earlier this month and outlined

NZPA
Thu, 18 Nov 2010

The Defence Force may only be able to save up three quarters of the $300 million touted after the release of the white paper, Defence Minister Wayne Mapp said.

The long-awaited white paper into the Defence Force was released earlier this month and outlined the Government's defence objectives for the next 25 years.

At the time, Dr Mapp said changes in the distribution of resources within the defence force could free up to $300 million a year for more front-line capabilities.

The changes would include replacing 1400 uniform jobs with civilians, integrating parts of the army, navy and air force and merging the Linton and Ohakea bases in the Manawatu.

Labour said the Government was vague on details about how the savings could be achieved.

That debate continued today in Parliament's defence select committee as Labour MP Pete Hodgson questioned Dr Mapp about exactly where the savings would be made.

Dr Mapp said it would not be easy and savings may only reach part of the $300m.

"I suspect two thirds to three quarters of it will be able to be delivered."

Changing 1400 of the Defence Force's 10,000 uniform jobs to civilian ones would save $27m over five years, he said.

Sharing human resources and information technology throughout the Defence Force would save $20m.

Further savings would be made through the public private partnerships.

"Quite a lot of smaller things -- the cost and level of military diplomats... the area of military bands and so forth.

"We think we can do a lot more joint training as well and, or course, I did mention base consolidation as well."

Much of the savings would be made in the first year with more difficult decisions, such as the effectiveness and role of the Boeing 757s, would take longer, Dr Mapp said.

Asked to put figures on those savings, Dr Mapp said benchmarks were being established.

"Don't get me wrong it will be a challenging exercise to achieve," he said.

"I'm not getting you wrong... they are astonishing, which is why I have questioned them cause I frankly don't believe them," Mr Hodgson said.

"You've helped me understand $27m plus $20m plus a bit from amalgamation (of Ohakea) and some PPPs."

Chief of Defence Force General Jerry Mateparae said savings were possible.

"The prospect is that we could save upwards of $300m."

NZPA
Thu, 18 Nov 2010
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Defence Force may not be able to save $300m
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