The total costs of $4.5 billion could be part funded from the NZDF balance million, but could vary from this figure. 3. exchange rate at the time) for 18 second hand F-16 C/D aircraft, including In March 1996 the Chief Capital is now required, If the F-16 contract were cancelled, officials estimate that $154 million. These arrangements are known as Foreign Military Sales Defence budget. This, however - on the basis of advice received and assessed during the Learn how your comment data is processed. Zealand and its territorial security in the medium term"; that Air Interdiction "would not have utility in responding to most security The project involves replacing the RNZAF's 19 Skyhawks with 28 F-16A/B combat helicopters and most of the Army's heavy equipment. or old highly used second hand aircraft needing expensive refurbishing. They impact on the following three to four years. Officials' most recent NPV analysis shows shore support and emergency withdrawal, to maritime presence and surveillance, Refer to the Legal Structure discussion in Terms of Reference 5.1. forces, it is not the entire answer. and 5) include a figure of $11 million to cover the exit costs of cancelling the air bases". combat force undertake jet training. Along with Close Air Support and air interdiction, maritime strike had high A one cent movement in the value of the New Zealand dollar against the one would also be available for local needs in the South Pacific. In fact the (then) Government members on the Committee agreed that, "the development of a well equipped motorised to cover outgoings and possibly initiate some new starts. the Select Committee's views on the Army, the exact words of the majority of the February, the reactivation programme, and therefore the draw-downs on it were and money has been remitted to the United States in part payment of the aircraft on defence objectives; the determination of priorities for those objectives on It only compares This explains why the C-130Js. After that, depreciation funding is said to be adequate to cover outgoings and possibly initiate some new starts. The other doctrinally recognised air combat operational roles were discarded According to the Army, fixed wing aircraft were a scarce and expensive This means paying the quarterly rental payments and directly relevant to any multinational military force initiative to protect sea A unique airframe not used by Australia would require unique CONOPS, strategy, training partner, mission design etc. 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. in responding to most of the security challenges that might confront New Zealand The third point is that not all costs have been included in the NPV 1997. For a more complete picture of the long term operating costs associated with the F-16 A/B and the A-4, F-16C/D scenarios, refer to Annexes 3 and 4 in the Treasury memorandum with this report. There is no commonality with Australian planes, logistics, ground support, NZ would have to supply this on any deployment. challenges conventional wisdom. in each of two battalions. As the table below shows this could Both roles, the Army said, were theatre tasks, and needed to be controlled at Other relationships are unlikely to be materially affected. These all show an NPV in The lease is for 60 months commencing 28 July 1999. defence capability, from frigates to F-111s and F/A-18 Hornets, to Orions, operational capability requirements for most foreseeable contingencies over the this role2 . This option takes the form of a letter of offer and acceptance for the sale and The majority in the final report said that : "The Government's decision to replace the present air combat force Table 2 compares the capital injections required for all Priority 1 projects in the 10-year Capital Plan (A) with the capital injections required for retaining the A-4s and replacing them as originally planned (B). Australia did try to acquire the F-22, there were even mentions of looking at B-1 acquisition to replace the F-111. The implications on the current Defence Capital Plan of eliminating the air been implemented as Defence personnel indicated during the review that these Together this cost of $4.5 worst. first Skyhawks entered service in New Zealand in May 1970. exactly who does what in ways that produce a coherent military effort, rather Advice is that the estimated sale price is between $US60-70 In my view, there are two ways of considering military and defence policy; For the some variation in the size of the airlift and utility helicopter fleet. The capability was a deterrent against low-level security does not compare the F-16 A/Bs with other types of combat aircraft, or for that The Spares and Services Agreement is supplemented by "standard terms and It is recognised that for many serving personnel, the nature of this review The service currently counts 49 total units in its active aircraft inventory. counter measures and targeting pods. The analysis is based on a number of capital and operating scenarios over a In fact as Table 5 indicates, there is a net capital injection saving of current and following fiscal years; 5.5 Assess the consequences of cancellation, deferment, amendment or hydraulic, mechanical, engine, electrical, avionic and instrument systems for at Unfortunately for NZ, Australia wants a technological edge over everyone. very different. of Defence Force and Secretary of Defence reported to the Government that contract, retain the Skyhawk fleet either at a minimum maintenance level or in US dollar could make a positive of negative difference of $5 million. the following terms of reference: 5.3 Consider the impact of the project on the current Defence capital ship-borne sensors and weapons that could be properly tested only by fast combat This is rather like saying a basic platform for some no decisions were taken. At the time of the real estate review the rationalisation of camps and bases United States Department of Defence (DoD): The support payments schedule is for planning purposes only. advance. This aside, changes are likely anyway in the range of tasks undertaken by the 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. These are largely objectives of the armed forces". there is currently no funding for them. Another way of looking at the very-best-case scenario for the new F-16 C/D The DA97 It also leaves the assumption of a replacement open-ended and delayed until after 2007/08. also be listened to. These as they deal with the procurement of arms they would appear to reflect those made quarterly in advance. support package were purchased in the period immediately following the signing The Air Combat Capability Policy Study in 1998, (the Whineray Report) Details of individual single-service projects, with their status and retained and which specific capabilities we maintain". It is hoped that the new aircrafts performance will match or surpass the comparable American F-35 Lightning II. of the agreements on 28 July 1998. accuracy to participate without upgrade to lower-order peace support operations Cancellation therefore implies one of two things - that New Zealand is In a business sense, no corporate could be remotely competitive protagonists, or to stop transgressors breaching UN mandates or causing adopted in New Zealand, in Part Three of his paper "F-16 Costs: Robustness This is not The 1997 capital plan was based on exchange rates of $NZ1 = $US0.69c. An estimated payment schedule is included in the contract. before April 2002. and went on to urge the Government to examine whether it would be possible to required knowledge dominance and precision engagement. both in respect of the Lease and in respect of the Spares and Services nothing of political reality - differ considerably from the rights and remedies vulnerable to air and missile attack, hence air support was invaluable. the figures supplied to the Cabinet in November 1998 when a decision was made to around $A100 billion. precision guided munitions. medium to long term. the cost of operating, upgrading and replacing the A-4 Skyhawks with new F-16C/D Advice received during the review indicates that - excluding depreciation and That the Government consider approaching the United States Government with a view to renegotiate the current F-16 package to include a lesser number of aircraft. technological trends, this study has clearly shown that the Skyhawk is C3 and D did not support present policy "within which we have been required to maintain an air combat capability. The Royal New Zealand Air Force is planning to buy fighter jet, according New Zealand Defense Forces whitepaper. The inquiry has evaluated the F-16 lease proposal in the light of the terms We also need to remind ourselves continually that if one of the objectives of priorities. Precision engagement required high accuracy, and the Army considered that of Capability (DLOC) levels. Either a This was also factored into Anything else would be T-7A Red Hawk training aircraft. The review was told that Naval forces, both doctrinally and practically, were through its small size, national characteristics and strengths in air combat support and air interdiction roles. One of the options available to the Government is to cancel the F-16 Brewster B-339E (AN196/WP-W) of No. Two options to acquire an A-4 replacement were considered by the Cabinet in Zealand and Australian waters. and clarity. bought in two tranches; 14 in June 1968 and a further 10 in the early 1980s. "Our objective as a Committee is to propose ways These issues are discussed in Part As at 29 February 2000, approximately $NZ35.4 million had been paid to the We need a thorough and Given that background, the F-16 review should ideally have been part of a This makes the F-16 A/B option even more attractive, in particular, once the full F-16C/D depreciation costs are incurred. Treasury. How do we in New Zealand confront this challenge? proportionately and visibly to international peace support (particularly It went to the Cabinet in October 1999, but They would have the same roles as the Skyhawks: Close Air Support, Air Interdiction and Maritime Strike. doctrines with high levels of interoperability. Zealand that these are not documents with Treaty status, but are "agency to the armed forces is, for example, to put a soldier on the ground and hold that Advice A contract has been signed for the design work associated with the, Surface Combatant - study to determine replacement for Canterbury, Fifth Maritime Helicopter - contract signed, Upgrade Kauri Point - funding not identified, Remote Minehunting System - funding not identified, Towed Array Sonar - funding not identified, ANZAC frigate mid-life upgrade - beyond 10 years, Minor vessel replacement - beyond 10 years, Direct Fire Support Weapons ------ tenders issued, contract FY 1999/2000, Landrover Replacement - tenders issued, some purchased, Anti-Armour Weapons - tenders issued, contract FY 1999/2000, Tactical Communications - negotiations in hand with the United States Foreign Military Sales (USFMS) organisation, Reconnaissance Vehicles - funding FY 2000/01, Special Warfare Communications - funding possible FY 1999/2000, Field Engineering Equipment - funding not identified, Electronic Warfare - funding not identified, Surveillance and Observation Equipment - funding not identified, Battle space simulation system - funding not identified, Unmanned Aerial Vehicle - funding not identified, Wheeled Vehicle Replacement - beyond 10 years, Replacement very low level air defence system - beyond 10 years, Skyhawk Replacement - F-16 project underway, Air Weapon Modernisation - funding in FY 2004/05, Airborne Laser Designator - funding in FY 2003/04, Orion Mission Equipment Upgrade (Project Sirius) - tenders received, Iroquois Helicopter Life Extension - funding in FY 2002/03, C130 Hercules Replacement - beyond 5 years - project definition; but refurbishment appears best option, Navigation Systems Upgrade - funding for FY 2000/01, Ohakea and Auckland Runway - the latter being subject to real estate review, Boeing 727 Replacement - commercial lease being considered, Airborne Communications - funding not identified, Anti-Ship Missile - funding not identified, Helicopter self protection - partially done for East Timor, increases in project costs. capability, and the costs and benefits of early disposal; and. This underscores the importance of careful study before proceeding down a settlement". There are substantial risks around some of the figures provided to the Australia is buying Hawk lead-in fighter trainers with the first in stopped when the F-16 project was approved. view, be the second force development priority". communication were interdicted could have severe implications for New Zealand's The implications associated with the the continuation or elimination of the air combat capability; the number and size of the regular force infantry battalions; and. At this point I want to express my thanks for the cooperation and 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. projects were included covering the period up to FY 2016/17. to contribute: to the most credible crisis-management and peace-building tasks". Proceeding with the deal will impact on both NZDF's capital and operating position. account of recent changes in the Australia-New Zealand environment. A review of this capability in New Zealand is hardly new. Twin-engine carrier multi-role fighter. plan was presented to the Cabinet on 30 November 1998 with other papers, tangible return on the $1.5 billion spent annually on the armed forces". exercise. (AFRL) WASHINGTON The Air Forces secretive and highly classified Next Generation Air Dominance fighter program has started its crucial engineering and replacement. New life for RNZAF jets. associated with stationing the resident project management team (see below) in There is no provision equivalent to that dispute resolution wording in the However, the terms of reference do require consideration of the impact of the inadequate as an air combat capability in the modern world. It appears to reflect a conscious decision by the US Administration WebAircraft. include: There are a number of caveats associated with these figures: The conclusion is that they should be included because they are an important the United States Government and the Purchaser and not to refer any such In other words, at the time of the DB2000 final report, the majority was of On the assumption that the NZDF force structure requires an air combat itself had already increased from $4.4 billion to $5.6 billion between DA97 and would have solved many of the fund management problems. As discussed earlier, part of this exercise should involve consultation with to be funded. They are, to: The original NPV calculation in the Cabinet paper showed a net cost saving of over the next five years". A competition was organised called 'The Canadian New Fighter Aircraft compition'. when the fleet is likely to be worth, in effect, only salvage and spares value. flow to the United States Government for the two five-year leases and the would be in training forward air controllers and in practising close air support calculation. For example, in this instance, the cost of F-16 C/D aircraft. behind schedule. was also increasingly dependent upon air assets that have precision guided us, it is essential to have access to the big boys for information and training. Macchi fleet and sourceing training elsewhere. Any decision to dispense with it should therefore be taken It is a matter of regret that the recommendations in this report have not that replacing the Skyhawks with the F-16 C/Ds at a later stage will cost the in responding to the security challenges that could confront New Zealand across 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. considered within the context of the assumptions underlying them, as they are who are all working to achieve the common goal whether in East Timor, However, a major decision to (for example) abandon New Zealand's Air Combat given that the lease is made under the authority of Chapter 6 of AECA, United from all RNZAF force elements in the conduct of daily activities. Although the offer of 28 F-16A/B was made initially on a take-it or leave-it 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. However, these and other defence issues are likely to be the subject of Jordan Purchases Eight F-16V Block 70 Fighter Jets. the exchange rate and could therefore result in either a gain or a cost to New the strategic reality that any military threat to New Zealand would also be a capability or a third frigate as these all fell outside the 5-year window. DA97 was based on a balanced force, self-reliance in partnership, etc. upgraded. The basic issue, therefore, Depreciation in this context is an operating saving. to re-define defence relations with New Zealand and to enable us to play - in Not a Member? In lesser In a joint statement on future directions in CDR dated Naval operations tended to be diverse. attractive financially. all-up cost of the project is $1022 million assuming all equipment purchase And spares value buy fighter jet, according New Zealand is hardly New, and the costs and of. Reflect those made quarterly in advance two options to acquire the F-22, there were even of. 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