Defence IQ's Blog

We are the IQ of global defence.

New Zealand Defence White Paper leads the way in value for money

Following the UK, NZ has become the latest in a long line of countries to release their plans to create value for money and efficiency in Defence. It has ushered in an era of efficiency and value for money in defence in the New Zealand – a very strong representation of defence cost savings and efficiency the world over.

What this means in real terms:

Back office functions will be rationalised, following on from the work of Project Alexander which addressed vehicle fleet running and maintenance. The paper will put the regular army on a more sustainable footing – cutting waste and establishing a forward plan for replacing or upgrading core capabilities.

The White Paper differs from its predecessors by the level of scrutiny given to financial issues. They have consciously sought to align policy, capability and funding – emphasised by the need for internal efficiencies.

The NZ Government expect that their Defence Force will free up $100m from the existing Defence Transformation Programme and $250-300m from other Value for Money initiatives, on an annual recurring basis for front line capabilities.

Stressing this, the Hon Wayne Mapp, Minister for Defence said:

“A White Paper has to balance the strategic realities with the economic practicalities. Unless we are honest and realistic about the world we live in, and the priorities we have as a nation, a defence review cannot succeed.”

The NZDF wants to see more of their resources spent on front line capabilities. The White Paper stresses that significant economies of scale can be achieved by concentrating Defence activities on fewer sites. The NZDF will therefore broaden and accelerate the process of estate rationalisation which is already underway. The greatest potential benefits are likely to come from bringing together Air Force and Army activities at a single Manawatu ‘hub’ centred on the Air Force base at Ohakea. 

New Zealand is not alone in its defence cuts; the US Defence Secretary Robert Gates has committed to saving $100m over the next five years, France is aiming to cut up to $5Bn over the next three years, Germany is looking at upwards of $10Bn worth of savings and the UK is cutting their defence budget by 8%.

Defence IQ’s Value for Money and Efficiency in Defence conference (16th & 17th February 2011) will address these exceptionally current challenges and will present participants with concrete ways to make substantial savings to their programmes; helping to ensure they are not subject to the full force of their national budget’s axe.

We are very pleased to welcome a representative from the NZ Defence Force who will outline these changes and showcase the work of Project Alexander.

Value for Money and Efficiency in Defence will highlight already successful platforms which were developed efficiently in the first instance and which are exuding value for money through superb through life management. It will also demonstrate ways of ‘doing more with less’ through excellent joint-working, cooperation and partnering.

For further information on this event and access your complimentary downloads (videos, articles, presentations, etc.) please visit our website: http://bit.ly/DSVFM1B. Alternatively, contact us on +44 (0) 20 7368 9300 or email enquire@defenceiq.com. Please remember to quote your exclusive code ‘DSVFM1B’.

Website:  http://bit.ly/DSVFM1B

Brochure:  http://bit.ly/DSVFM1BBrochure

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: