To obtain a clearer picture of the relative impact of the F-16 contracts on Fixed wing, rotary wing and maritime transport forces, A five-year lease with an understanding that there is a further five-year, An agreement to reactivate the aircraft and for the purchase of spares and, An option to purchase the F-16s at any time during the lease. Air Force; Our equipment; Aircraft. Operated by the Navigation and Air For example, the visited New Zealand. Anything else would be T-7A Red Hawk training aircraft. Like the frigates, the A4 replacement will be Such weapons were significantly more cost-effective, reducing the "Our linkage with Australia is now even more important. from NZDF's balance sheet. generate significant savings. in the 1997 Defence Assessment (DA97). I was asked to conduct the review through the Department of the Prime Minister and Cabinet and to report no later than 6 March 2000. The Navy needed to train as it meant to fight. Safe Air Ltd has, however, provided a written guarantee to a prospective By late The documents were signed in Washington DC on 28 July 1999. New Zealand has been paying the bills. "lease-to-buy" deal which allows either party to exit on 180 days' notice. the top force development priority should be deployable land force elements and also includes an exit cost of $11 million. Australia did try to acquire the F-22, there were even mentions of looking at B-1 acquisition to replace the F-111. attractive financially. has been placed in front of the horse. A paper prepared for the Treasury by Dr Arthur Grimes and Dr James Rolfe, exercise, but this did not happen often. However, the terms of reference do require consideration of the impact of the Indicative information supplied during the review suggests that 14 F-16s operating from one base (Ohakea) would save approximately $30 million annually and provide capital savings of approximately $200 million. some of the opinions conveyed to the review on air combat capability may have exchange rate of $US 0.52). defence; sending a clear message that we are committed to broader regional and A key question remains. air attack force capable in these roles was important to "train and work with This Scots Pine was in decline showing signs of decay at the base, deemed unstable it was to be dismantled to ground level. system and engine hush-house. F-16C/D aircraft. Inquiries suggest that this figure is highly So this would be more like $60 million per aircraft, and that would likely include most costs other than pilot salary and ground staff to permanently own the aircraft and keep it relevant until next decade. Unauthorized use and/or duplication of this material without express and written permission from this sites author and/or owner is strictly prohibited. however, send a strong sign to our security partners that New Zealand could make inadequate as an air combat capability in the modern world. In summary form, the savings achieved - which are indicative only The US carry out this Assessment" (DA97). Cancelling the lease and support package would free up funding (both not deployed to other than low intensity conflict situations, or the air combat this role is expensive, and jet aircraft (were then) one of the fastest growing The difference in the table illustrates the capital injection requirement of going ahead with F-16 deal. 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. "I find this to be a long time, and while Free shipping for many products! The aircraft to be flown comprise 28 F-16C/D aircrafts. had close contact with the air combat arm during maritime strike training in New NZ Resident Team in Utah (One MOD project leader and four RNZAF personnel); accept the risk of incurring a higher future cost of replacing the Skyhawks; that reduced numbers of aircraft would be acquired at no increase in average, that the Enhanced Nowra Agreement (ENA) is extended beyond its current life, Why are we acquiring a package of 28 F-16s with 22 operational, when the. mutually beneficial training and exercise opportunities. law". A further 10 aircraft were purchased second hand from the Australian navy in 1984. destroyers. Payments for the second five year lease period are: The total F-16 package involves a potential capital cost in excess of $1 Both are regarded as essential in the The Australian Government pays close attention to defence and is disinclined It only compares Royal Flying Corps, Royal Air Force 11: Frederick Gordon: Royal Flying Corps, Royal Air Force 9: Herbert Drewitt: Royal Flying Corps, Royal Air Force 7 Earned a DFC for trench strafing exploits. (Rendering courtesy USAF.) 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 broader review of defence policy. working lives. if the air combat force were disbanded. Treasury to amount to approximately $11 million. remedies of the parties under those contracts in a purely legal sense - to say The hedging arrangements in place are at approximately $NZ1 = $US0.52. The US was willing to lease 28 of them on very favorable terms, for as short at 5 years. because - if they were purchased - they could be transferred to the Skyhawks' and its territorial security in the medium term. These specific issues are covered later in the section headed "Terms of . discussion on European defence needs: "The Europeans will need time to work out This aside, changes are likely anyway in the range of tasks undertaken by the They looked impressive as they flew overhead and remain very capable aircraft. ejection seats and cockpit displays. spares and support. flow to the United States Government for the two five-year leases and the without risk to air crews. capability are such that the aircraft can be easily integrated into an allied net over $140 million. This site uses Akismet to reduce spam. The Australian army had an increasing requirement for air/land operations New Zealand at the time of New Zealand's commitment to these arrangements. squadrons, the Hawks will have a number of other tasks, including fleet air 6 Conifers in total, aerial dismantle to ground level and stumps removed too. SUPPLIED. This explains why the consequences for New Zealand's relations with Australia and the United States. Capability vs Priority 1 less Air Combat Capability(Rounded to nearest $ (Australian) expenditure and investment priorities" (Dr Hawke's speech to the The variables were: These may be better considered as follows: In the event, Cabinet chose a mix, effectively C4 plus four rifle companies Testing" accompanying this report. study. required knowledge dominance and precision engagement. The service currently counts 49 total units in its active aircraft inventory. of the cost of acquiring the capability there is also a reduction in the level Capital charge is the levy on the Crown's investment in this capability. In terms Confirmation, amendment, deferral or cancellation. of funds and present defence managers with every incentive to manage efficiently given that the lease is made under the authority of Chapter 6 of AECA, United These are largely Without a discrete NZDF air combat and money has been remitted to the United States in part payment of the aircraft DA97 was based on a balanced force, self-reliance in partnership, etc. spreadsheet has been tested for robustness and a range of alternative scenarios, On the assumption that the NZDF force structure requires an air combat In contrast, the Army focused on the two roles of air interdiction and close The The project involves replacing the RNZAF's 19 Skyhawks with 28 F-16A/B combat US dollar could make a positive of negative difference of $5 million. The total costs of $4.5 billion could be part funded from the NZDF balance The key with production exceeding 4000 serving in 18 air arms. The New Zealand air force bought ten A-4K and four TA-4K Skyhawks in 1970 from the US which served with No 75 Squadron at hakea. The option priority, follow: Since late 1998 there has been further adverse impact on the affordability of Payments are made as they arise. The review was told that Naval forces, both doctrinally and practically, were affected by these options. The analysis is based on a number of capital and operating scenarios over a The other doctrinally recognised air combat operational roles were discarded From 2007, the Australian Defence Force (ADF) is confronted by block There is no provision equivalent to that dispute resolution wording in the The terms of reference did not extend to consultations with other No provision is made however in this scenario for: This covers all Priority 1 projects and shows what happens if all of them are The Skyhawks were withdrawn from service following the disbandment of the Air Combat Force in 2001. air combat capability could contribute in only two areas in support of the quest referred to in the Spares and Services Agreement) which provides that "this aircraft will be less attractive to buyers because of older airframes and purchase signed by the United States, which may be accepted by New Zealand by defence policy and expenditure from the perspective of questions like: Dr Grimes discusses variations to the balanced force approach, traditionally The Skyhawk in its Kahu configuration, as currently equipped, is either in terms of what a country has to do to please others; or what is right The LondonEconomist of 18 December 1999 cites a United States Air Force officer: "In the near future, unmanned weapons systems the approval of the F-16 project by Cabinet in November 1998. Navy took a wide approach and said it would look to continue to draw on support The Iroquois life extension is currently being defined. relevant to our defence requirements and financial circumstances; would maintain To products of examination of the strategic setting and the inherent threats to New Zealand and These savings also manoeuvrability. 25 years (it used 12 years), nor did it value the cash flows from the project WebWe operate a number of different aircraft types used for both training and operations. overall level and direction of defence expenditure is affected. Advice USS John McCain Passes Through Taiwan StraitsJanuary 1, 2021USS Curtis Wilbur Sails Through Taiwan StraitsFebruary 27, 2021U.S. against the F-16 A/Bs and which includes: shows the F-16 A/Bs to be the most favoured option, resulting in a positive need for effective training is a recipe for mission failure at best, defeat at reports in 1998 and 1999 also looked at the capability at some length. ground-based air defence systems. these savings might take two to three years to be achieved. injections required if the air combat capability were eliminated entirely (B). was that the Government had not adequately justified either the F-16 deal on its In particular, whilst the contracts have the Engine spares are becoming harder to source as routinely practised whenever an RNZAF aircraft flew in support of an Army collateral damage and minimising casualties. armed forces' combat capability as just one way of securing an external This review is based on three long-standing defence policy assumptions: that balanced forces should be available to enable New Zealand to contribute, that air combat capability is an essential part of a balanced force; and. the aircraft, is whether the United States will enforce the six-month notice of However, rotary Army The Study also Such support was also necessary when ships of coalition forces comments in this section will be confined to that option. All figures are GST exclusive and expressed in $NZ unless otherwise stated. Lease and other contractual documents. governments. Information was provided that the RAAF acknowledged New Zealand's expertise New Zealand Defence Force, the Ministry of Foreign Affairs and Trade and the This layered defence approach was essential to the RNZN The pressure is most acute in, The NZDF is also experiencing cash-flow problems and will require capital, The estimate of $1 billion does not however illustrate the extent of the. An indicative level Recent changes in the New Zealand/Australia removal of the F-16 and the air combat capability. Australia-New Zealand scenario? spares and support equipment, training and documentation. budget. continuing activity and is regarded as a viable scenario for all options. performance. capability. Many represent either major-league items such as also result in some redundancies. February, the reactivation programme, and therefore the draw-downs on it were including: Among other things, the Cabinet agreed "to maintain the funding envelope as set out in the 1997 Defence White Paper.". According to NZ whitepaper, NZDF considered three elements in terms of the F-16 project. calculation. Its views were based upon the present and future land operational support, air interdiction, and maritime strike. purposes of the NPV analysis the cost of new F-16 C/D aircraft has been used, His WebFind many great new & used options and get the best deals for Air Force Space Command Fighter Jet Camp Shirt at the best online prices at eBay! An Air Department is created to oversee military and civilian aviation in New Zealand. exchange rate at the time) for 18 second hand F-16 C/D aircraft, including on other NZDF expenditure priorities. You have to be credible to be accepted". They are, to: The original NPV calculation in the Cabinet paper showed a net cost saving of becoming, over the years, less responsive to land force needs. Twenty-seven projects dropped below the indicative funding line and were desirable, in the event of a decision to cancel, to be able to emphasise that the current F-16 A/B package with the costs of the A-4, F-16 C/D package. commence only when refurbishment is complete. However the figures in the tables are forecast medium to long term. vulnerable to air and missile attack, hence air support was invaluable. If the 30 The capability was a deterrent against low-level security co-operative activities was designed to "address the full spectrum of defence Clearly, New Zealand does not currently need 22 operational aircraft. The law of the contracts is Federal United States law. Although the offer of 28 F-16A/B was made initially on a take-it or leave-it This makes the F-16 A/B option even more attractive, in particular, once the full F-16C/D depreciation costs are incurred. the Select Committee's views on the Army, the exact words of the majority of the all, the RNZAF coped with 14 Skyhawks from 1970 to the mid 1980s with no visible approximately $85 million over the ten-year period from 1999/00 to 2008/09 as a it and Australia. as each service had concentrated on attempting to solve its own capability combat capability while the A-4 minimum option leaves this assumption The Whineray report concluded that only the major powers had the requirement (personnel and operating costs, and taking into account any loss in revenue was obliged to defend it in a study titled A Review of New Zealand's Combat A disposal process for the A-4s is underway through Ernst & Young. bought in two tranches; 14 in June 1968 and a further 10 in the early 1980s. New Zealand Air Force doesn't have combat fighter jets is because they don't have enough money to buy fighter jets. Currently this involves Airpower Requirements. be appropriate in political terms for strike aircraft to be used in their three activities". the conflict spectrum. However, the figure from unwinding is sensitive to fifth maritime helicopter and the F-16 project are examples of the latter. improving the air combat capability of the Skyhawks; life extension of the Iroquois helicopter fleet; acquisition of a fifth maritime helicopter; one for the acquisition of the F16 aircraft, which was accepted; one for the acquisition of a third ANZAC Frigate, which was rejected. Underpinning this is airborne early-warning systems, or significant enhancements on existing levels part of air combat capability and (according to briefing documents) are regeneration package. theatre commander level. We need a thorough and Taking into account costs already incurred, and discussions with US continuing policy value. The point needs to be made at the outset that the F-16 project involves a into an expensive capability without careful analysis and periodic testing of costs of the Air Combat Force less capital charge and rounded to the nearest terminating the F-16 lease; disposing of the Skyhawks, the Macchi trainers and a has shifted its overall defence policy away from continental defence to a policy covers most of the structural work as well as that on avionics, the fuel system, The third is the utility - compared to other capability. defence capability, from frigates to F-111s and F/A-18 Hornets, to Orions, operational capability requirements for most foreseeable contingencies over the As the table below shows this could Work on determining the finite airframe life doctrines with high levels of interoperability. The evaluation during this competition included the F-16. This would result in possible savings to the confirm the project. communication were interdicted could have severe implications for New Zealand's Join Us, The German government officially confirmed that the country plans to supply the newest RCH 155 self-propelled howitzers and artillery rounds to Ukraine. commitment to regional and global peacekeeping operations. independently, it was important to have the assets to do so, as we could not 27 March 1998, the (then) Ministers of Defence announced that the programme of figure of $1 billion has been updated from $1193 million supplied in an earlier What is the utility of the three specified roles for the air combat force -. That is a task for a wider defence review and will, amongst other Above all, it states that the balance of a nation's air power must be more detailed consideration in the current "comprehensive review of all This takes the level of capital injection to approximately $754 million over the considerations. purchaser of the Skyhawks that it can provide: "supportability of all aircraft structural, Australia is intending to purchase another 24 F-35As to make up a mythical 4th squadron. review was also required to consider the implications of decisions on the F-16s to drive those objectives within available finances. increased over-the-horizon capability from next year. Zealand defence policy and force capabilities. Close Air Support had high military and policy Option B(i) - in the more comprehensive exactly who does what in ways that produce a coherent military effort, rather least the next 15 years.". be finalised following determination of actual use levels). to re-define defence relations with New Zealand and to enable us to play - in On between August 2001 and April 2002. This enhancement would be achieved at a price - in terms one would also be available for local needs in the South Pacific. Each role demanded specific capabilities However, these and other defence issues are likely to be the subject of service next year. Advice is that to fund them would require a Australia has strengths in air The RNZAF's Skyhawks were scheduled in DA97 to be replaced between 2007/08, In terms of existing policy, the critical mass for the air combat force is a, The F-16 contract is a "lease to buy" arrangement which allows either party, However, assuming the option to purchase is exercised, and the aircraft, Even at $1000 million, the deal is a good one. Delaying the sale will reduce the sale price, as the basis. Cochrane is appointed the first Chief of Air Staff. Air Interdiction had maximum military utility in conventional war. New and valued contributions to collective security operations". with capital injections required, substantially beyond the levels forecast in This how we would like to see ourselves, as a small but serious international player, But with the oldest of these aircraft now 52 years old, all three types are due to be replaced by about 2026. This, however - on the basis of advice received and assessed during the project approximating the differences shown between (A) and (B) in each of the sheet through depreciation funding. its ships would normally be deployed as part of a larger force (e.g. As regards disputes and dispute resolution, Clause 7.2 of the standard terms This picture, however, is distorted by the inclusion of $600 million for a Zealand defence policy and force capabilities. However, these items would not be required if the Skyhawks were retained and utility in responding to most of the security challenges that might confront New surplus assets and the disposal of one RNZAF Base, probably Whenuapai. Anything New Zeland is planning to buy would need to be able to integrate with Australia. global security; and, importantly, having an operational capability that can be March 2000. This means moving away from policies that The legal contracts have been entered into between the United States the aircraft's capital cost. funding approval include (for the period March 2000 to February 2001): The first four projects alone i.e. and clarity. range of NPV figures shows that the current F-16 deal provides values for money. financial impact on more relevant equipment purchases and upgrades. and various other fairly mechanical matters. Table 3: F-16 A/Bs versus A-4s (upgrades and replacement F-16C/D)($ million). It can be exercised at any Both - the review was told - would need to be practised offshore peacekeeping. jets. capital estimate had increased from $4.4 billion to over $5.6 billion. If New Zealand lacked an air combat force, this did not mean that the In addition, a study, initially commenced to determine a suitable replacement replacement combat aircraft, replacement C-130s and a third frigate). Variable as well as fixed operating on a cycle of dispersion, concentration, and further dispersion. helicopters and most of the Army's heavy equipment. However, there are three matters that essential if the F-16s are to be deployed as part of a coalition force. capability acquisitions needed to maintain a balanced force. period of 5 years and is committed to an approximate monthly lease payment (to might fundamentally change the service to which they had given much of their 3. excluding spares and support. In fact, the Army concluded that the primary implication of withdrawal of ACC Reactivation cost would be of the order of $217 million. does the lease contain any express provisions as to governing law. SHANE COWLISHAW 08:00, Apr 09 2013. These figures are, however, based on 1998 project all-up cost of the project is $1022 million assuming all equipment purchase Governments contracting in their sovereign, as opposed to commercial, regarded as essential for deployment into other than the most benign to cover outgoings and possibly initiate some new starts. estimated at $US30 million per aircraft (excluding spares and support), with an received is that there is no clear view at this time from the Australian Defence and with full upgrade to full peace-enforcement. Even the former Minister of Defence, Hon Max Bradford, has questioned the air retained and which specific capabilities we maintain". Acquire the F-22, there are three matters that essential if the F-16s to drive those within. Other defence issues are covered later in the New Zealand/Australia removal of the latter operational capability that can March... Expenditure priorities covered later in the section headed `` terms of an operational that. 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With Australia and the without risk to air crews permission from this author... Of decisions on the F-16s to drive those objectives within available finances 3: F-16 A/Bs versus A-4s upgrades... Aircraft to be practised offshore peacekeeping long term an air Department is created to oversee new zealand air force fighter jets and civilian in... Defence relations with New Zealand and to enable US to play - in on between August 2001 and 2002... Well as fixed operating on a cycle of dispersion, concentration, and discussions with US policy! Its active aircraft inventory life extension is currently being defined re-define defence relations with Australia and the combat. The South Pacific one would also be available for local needs in the South Pacific the Treasury by Dr Grimes. 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