Air Force base faces axe

By JOHN ARMSTRONG

The Air Force's Hobsonville base may be doomed to close, with the Government signalling a sale of prime defence real estate in the wake of yesterday's cancellation of the lease of 28 F-16 jet fighters.

A question also hangs over the neighbouring base of Whenuapai, which was likewise earmarked for disposal by a 1997 consultants' report on rationalising defence property.

That document was rejected by Defence Force chiefs, but has been picked up by the cabinet after former Act MP Derek Quigley recommended that defence property be sold to free cash to buy more modern equipment, particularly for the Army.

Mr Quigley's report was commissioned by ministers as part of their review of the F-16 lease-to-buy deal with the United States. The "exit cost" from that contract is estimated at $11 million or less.

Ministers have ignored his recommendation that the deal be renegotiated and fewer aircraft leased to guarantee New Zealand retains an air combat capability.

And the Prime Minister has now cast major doubt on whether the Coalition will keep that strike capability once the ageing Skyhawks are retired around 2007, saying that is an "open question."

That risks friction down the track with the United States, which described yesterday's canning of the contract as disappointing.

The US Ambassador, Carol Moseley Braun, said that it was hoped New Zealand would maintain a "credible" Defence Force and continue to contribute to regional security.

"In that regard, we stand ready to assist New Zealand in addressing its military equipment needs."

In Canberra, a spokesman for Australian Defence Minister John Moore repeated the official line that it was up to New Zealand to determine what equipment it bought.

Having dumped the F-16s as unaffordable - the all-up cost was estimated by Mr Quigley at $1 billion - the cabinet will now conduct a major defence review to reassess priorities for re-equipping the srmed gorces, whose finances were described by Mr Quigley as parlous.

The 1997 report by accounting firm Coopers and Lybrand estimated that the sale of bases and service housing could net more than $140 million.

Among other options, it suggested closing Hobsonville, home of the Air Force's Iroquois helicopters and the Army's Special Air Service, and Whenuapai, where Hercules C-130s and Orion surveillance aircraft are based.

Those operations would be shifted to Ohakea and Linton, near Palmerston North.

The two West Auckland bases are valued at more than $145 million and are estimated to pump at least $50 million into the regional economy in wages alone.

Defence Minister Mark Burton will come back to the cabinet within a few weeks with a list of properties that could be sold.

It is understood his review will canvass options in the Coopers and Lybrand report.

Mr Quigley said the lease-to-buy arrangement for the F-16s was still a good deal, despite the near-new aircraft costing around $1 billion all-up, including midlife upgrades.

But yesterday's cabinet meeting ignored his advice that fewer F-16s - possibly 14 - be leased to maintain expertise and preserve an operational capability once the Skyhawks come to the end of their life.

The National Party leader, Jenny Shipley, said the cabinet's decision "cut New Zealand loose" from allies.

Air Force staff were reluctant to comment about Hobsonville's future until an official decision was made public.

Some the Herald spoke to last night said rumours about its possible closure had been circulating for some time.

"There's a lot of history here," said one. "Sweat and tears have been put into this place over the years, so there'll be a lot of people sad to see it go."

But most staff would be realistic about moving base, he said. "We're in the Air Force - that's what we do. If we have to move, then we have to move."

Another employee said Hobsonville's closure was inevitable.

"It's been no secret that the Army would like the helicopters closer to Waiouru. There's prime real estate here ... and, let's face it, money talks."

Waitakere Mayor Bob Harvey said the sale of the Hobsonville airbase would be a win for the area.

The Defence Force would get the money, and the district would have a prime site to develop. Among options being looked at were high-technology boatbuilding firms using the base's deepwater ramps.

He favoured the rest of the site being made into a large foreshore park with some residential development.