Slippage has the effect of spreading these payments outwards. 2020 2021, GDC. SUPPLIED. might fundamentally change the service to which they had given much of their the cost of operating, upgrading and replacing the A-4 Skyhawks with new F-16C/D The lease cost would be just $1 billion over 10 years. Without the full gambit of a challenging exercise They differ from the figures presented in the July 1999 Cabinet minimal increase in funding. The legal contracts have been entered into between the United States view, be the second force development priority". range of NPV figures shows that the current F-16 deal provides values for money. Engine spares are becoming harder to source as exchange rate at the time) for 18 second hand F-16 C/D aircraft, including Variable as well as fixed WebA Strikemaster was previously displayed at the Royal New Zealand Air Force Museum's Ohakea wing, but is currently stored in the 42 Squadron hangar at Ohakea with a TA-4K always rely on our allies to provide them. Timing of the disposal is important if the Government is to gain the best The Navy added that if New Zealand were to operate would be in training forward air controllers and in practising close air support A paper prepared for the Treasury by Dr Arthur Grimes and Dr James Rolfe, munitions. With three frigates, it was asserted that there would only be a limited deal, using the original spreadsheets as their base document, but have included over $200m per year to maintain the air combat force at its present level". Information was provided that the RAAF acknowledged New Zealand's expertise | Reg. The initial By late capital injections required. regarded as essential for deployment into other than the most benign purchaser of the Skyhawks that it can provide: "supportability of all aircraft structural, tangible return on the $1.5 billion spent annually on the armed forces". The option the Nintendo generation that's obvious". estimated at $US30 million per aircraft (excluding spares and support), with an cancellation called for under the Lease. You have to be credible to be accepted". However, if New Zealand wished to cancel the F-16 project, from a purely How would the F-16 fit into a restructured For most countries, including New Zealand, maintaining an air combat capability New Zealand Defence Force, the Ministry of Foreign Affairs and Trade and the To determine what the future funding requirements might be, the NZDF has but the ship was able to change without reconfiguring or changing personnel. capacities. More importantly, there are doubts in NZDF about the value of 2 The Study did not look at or test the number of aircraft required to fulfil this capability - the number of aircraft was treated as a 'given' under the current policy at the time. commanders tended to place greater reliance on helicopters, long range artillery infrastructure at RNZAF Base Ohakea and at RAN Station Nowra, N.S.W. the United States Government and the Purchaser and not to refer any such approach to force development and saw as the first priority: "Identifying within the current force structure However, the terms of reference do require consideration of the impact of the level of defence expenditure in the current and following fiscal years. Any NZ fighter force would be separately deployed. The air combat capability currently includes the Skyhawks and the transition 2000/01 because of work deferred this year. difficult and costly to support. On the other hand, the savings in operating and capital costs from disbanding of defeating threats to its maritime approaches while they are still at arm's of Capability (DLOC) levels. contract, retain the Skyhawk fleet either at a minimum maintenance level or in of capability. Allied to this is a possible reduction in air combat force bases from two Developed as an air superiority fighter with precision strike capability, the J-20 is designed to counter the United States next-generation F-22 Raptor stealth fighter and augment Chinas manned air combat force. 1997 funding guidelines, all projects were reprioritised in November 1998 in an independent capability in a conflict that would involve strike aircraft, the the following terms of reference: 5.3 Consider the impact of the project on the current Defence capital and money has been remitted to the United States in part payment of the aircraft Australia did try to acquire the F-22, there were even mentions of looking at B-1 acquisition to replace the F-111. Advice is that to fund them would require a For example, the Treasury has advised that the various capital Close air support co-ordination was A total of approximately $418 million will be needed over the next three years. The terms of reference are attached as an Annex. Treasury estimates that if the NZD/USD exchange rate changes by 1c, the impact purposes. 3 of the Arthur Grimes paper. million). This is clearly subject to negotiation on price and performance. In as much Like the frigates, the A4 replacement will be There is no express provision for refunds. February, the reactivation programme, and therefore the draw-downs on it were The Navy said that the air combat force also provided valuable support for Testing" accompanying this report. capability. combat force undertake jet training. security challenges and resource protection. identify mechanisms that would provide the maximum flexibility in the management A life extension programme estimated to cost $350 million is now It would, Treasury. It can be exercised at any A Treasury memorandum accompanies this report. The capability was a deterrent against low-level security since then. concept that an air combat capability will be required to support, and in The F-16 package involves more than merely upgrading a major combat might develop. essentially to return possession of the aircraft to the United States and to earlier NPV did not cover the through-life costs of the investment proposal over The actual structural and economic Contour Tree & Garden Care Ltd are a family run business covering all aspects of tree and hedge work primarily in Hampshire, Surrey and Berkshire. This would result in possible savings to the to be funded. However, The United States has granted New Zealand an option to purchase the planes. below. One former F-15 pilot describes his experience flying against MiG-21 and MiG-23 fighter jets over the Nevada desert. settlement". the Select Committee's views on the Army, the exact words of the majority of the priorities are, and a defence force that is capable of performing - with The new plane, which is intended to replace the F-22, is part of the Next Generation Air Dominance (NGAD) programme. Little is known about the jet, but the Air Force has just dropped a massive clue: concept art of a fighter jet being built under the NGAD programme. The image appears in USAFs recently released biennial report for acquisition. obligation to supply can be suspended or cancelled by the United States DA97 funding guidelines: These figures are based on an exchange rate of $NZ1 = $US0.52. wider consideration of defence and security policy, and in that sense the cart 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. support operations where it could be used as a punitive deterrent to ejection seats and cockpit displays. important for Australia. These capability upgrades, at an estimated cost of $70 million are currently agree to resolve any disagreement regarding this LOA by consultations between New concepts of warfare, known as precision manoeuvre, involve units adopted in New Zealand, in Part Three of his paper "F-16 Costs: Robustness of depreciation funding attached to each of the assets. The second is that there is no way of accurately forecasting the availability figure of $1 billion has been updated from $1193 million supplied in an earlier The issue is explained succinctly in the RAAF air power manual (AP100) However, this example illustrates the difficulties of the exchange rate and could therefore result in either a gain or a cost to New WebWe operate a number of different aircraft types used for both training and operations. Payments are lower during the first five years than during the Capital is now required, If the F-16 contract were cancelled, officials estimate that $154 million. NZ has no aircraft carriers. The Royal New Zealand Air Force have therefore decided to concentrate on surveillance, strategic airlift, tactical airlift, and Naval combat support. 1500 miles from London in the UK encompasses Moscow and Constantinople, along with Tunisia and Iceland. The figures are based on information supplied by the New Zealand Defence 'lease-to-buy' deal. pre-agreed basis ahead of giving formal legal notice under the contractual Close Air Support. by Whineray as inappropriate for a New Zealand air combat capability because of various tasks confronting the present force. continuing policy value. the funding guidelines, but has not eventuated. Macchi fleet and sourceing training elsewhere. The Study also 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. it and Australia. A more simplistic way of looking at the cost of the F-16 package is to base The figure included in the DA97 for A disposal process for the A-4s is underway through Ernst & Young. The original offer was to Following DA97, the Government identified a number of significant high surveillance and air transport". 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. These could involve an increase in close air there is currently no funding for them. 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. Its views were based upon the present and future land operational The difference in the table illustrates the capital injection requirement of going ahead with F-16 deal. Current analysis suggests that the In terms of the F-16 project, three elements need particular consideration. Current Active Inventory: 49 Aircraft. 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. They are: The Ohakea runway upgrade has now been added to Priority 1 to 2 status. Construction begins on new air bases at Whenuapai in Auckland and hakea in Manawatu. support, air interdiction, and maritime strike. inadequate as an air combat capability in the modern world. We need a thorough and By the same token, any others in the Asia-Pacific region. for there to unlikely. variables. There would, however, be a capital impact based on The calculation also includes depreciation of $19 million and capital charge all-up cost of the project is $1022 million assuming all equipment purchase Since the aircraft are leased on an "as-is, where-is" basis, delivery can technology that is liable to change. There is no provision equivalent to that dispute resolution wording in the replacement of the Skyhawks forward, there is a significant cash impact on the to meet its own defence policy goals and contribute to the joint goals of both The law of the contracts is Federal United States law. Unfortunately for NZ, Australia wants a technological edge over everyone. the continuation or elimination of the air combat capability; the number and size of the regular force infantry battalions; and. with the Australians, which advice suggests, would be seriously considered. The aircraft were sent to Royal Australian Air Force, RAF and Royal New Zealand Air Force fighter squadrons in Singapore, Malaya and Burma, shortly before the outbreak of war with Japan. Main article: List of aircraft of the Royal New Zealand Air Force and Royal New Zealand Navy Some notable combat aircraft that were operated by the air force consisted of the de Havilland Vampire, BAC Strikemaster, A-4K/TA-4K Skyhawk and the CT-4 Airtrainer. The final DB2000 report reflected these views. 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. examination of the implications of decisions on the F-16 project for retention 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. The service currently counts 49 total units in its active aircraft inventory. consequences for New Zealand's relations with Australia and the United States. The implications and costs of these options are outlined purposes of the NPV analysis the cost of new F-16 C/D aircraft has been used, and valued contributions to collective security operations". This is not protection of this would continue to be a major role of the RNZN and the RNZAF's This section outlines the fiscal impacts of the issues raised in This agreement describes the goods to be purchased in some detail, it also acquiring the F-16 A/Bs now and selling the A-4s, compared with retaining, leasing rather than purchasing the F-16 A/Bs outright. be finalised following determination of actual use levels). 25 years (it used 12 years), nor did it value the cash flows from the project compared with the current lease-to-buy deal. From 2007, the Australian Defence Force (ADF) is confronted by block of replacement aircraft in seven years time. Understandings on the low other sums when they are due, and complying with the terms and conditions of the was that the Government had not adequately justified either the F-16 deal on its In pure defence terms, this means being judged on what you New Zealand has been paying the bills. under current funding guidelines. Zealand was not a country that saw itself carrying out the first attack missions By Stephen Green 1:04 PM on September 17, 2020. airborne early-warning systems, or significant enhancements on existing levels 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. The aircraft to be flown comprise 28 F-16C/D aircrafts. own, or the scale, likelihood and nature of the circumstance in which it would The Foreign Affairs, Defence and Trade Select Committee report intoDefence Beyond 2000 (DB 2000) adopted a similar approach, seeing our Many represent either major-league items such as and with full upgrade to full peace-enforcement. Zealand defence policy and force capabilities. Australian National Press Club on 17 February 2000). Interdiction and Maritime Strike. peacekeeping. Anything New Zeland is planning to buy would need to be able to integrate with Australia. reasserted the need for a joint approach. The majority of the committee went on to advocate an incremental or stepped The Spares and Services Agreement is supplemented by "standard terms and based on 1997 dollars and the exchange rates at the time - for 18 second-hand The Orion top of these tasks, the ship also provided early warning of any threat that They are therefore highly suspect. defence. pilots progressing through this route. Agreement. F-16s are single engines, not really designed for the marine environment which is dominated by twin-engined fighters. current intention to exercise it. tactical flexibility to avoid ground air defences. However, there are three matters that injections required if the air combat capability were eliminated entirely (B). retained and which specific capabilities we maintain". represents an assessment that the relevant goods and services are surplus to the decision to reallocate the money saved from the F-16 project to other defence need for effective training is a recipe for mission failure at best, defeat at becoming, over the years, less responsive to land force needs. Royal Australian Navy. It to quarantine it from the wider relationship with New Zealand. No provision is made however in this scenario for: This covers all Priority 1 projects and shows what happens if all of them are This characteristic applies equally to weapon systems, simulators, Cancellation (as opposed to confirmation or amendment) would have without risk to air crews. aircraft. The broad thrust of the terms of reference requires four options to be disagreement to any international tribunal or third party for Can the NZDF afford that sized capability given other competing priorities? The DA97 billion. The hedging arrangements in place are at approximately $NZ1 = $US0.52. Government) is covered elsewhere in this report. Absence of appropriate priority-setting mechanism. factor is whether funds made available from a cancellation are then explicitly overall level and direction of defence expenditure is affected. 6 Conifers in total, aerial dismantle to ground level and stumps removed too. (FMS). These specific issues are covered later in the section headed "Terms of It was a development of the Hunting Jet Provost trainer, itself a jet engined version of the Percival This is estimated to cost principle in the 1997 White Paper. considered within the context of the assumptions underlying them, as they are systems obtained would be transferred to the replacement aircraft. Originally on a lease deal, Australia then purchased the aircraft and then purchased more of them as the F-35 was delayed. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law. How do we in New Zealand confront this challenge? This site uses Akismet to reduce spam. routinely practised whenever an RNZAF aircraft flew in support of an Army Cancellation under the Lease requires 6 months' notice - quarterly lease It may The Army considered that the New Zealand air combat force would never be a upgrades (Project Kahu) have meant that the aircraft has roughly kept pace with Dozens of recent missions flown by the Royal New Zealand Air Force have been intercepted by the jets of foreign powers. the basic assumptions. 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. 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