Clark weighs defence spending

The Government is still determining how much it should spend on upgrading military hardware.

Prime Minister Helen Clark last week said she had asked Finance Minister Michael Cullen to look into how much the Government could afford to spend on defence equipment over the next five or so years.

In the past she has said the Government would need to spend several hundred million dollars on re-equipping the military.

Helen Clark refused on Friday to cite figures but said that, whatever the sum, it would have to take into account what needed to be done as well as affordability. Determining a final cap on capital spending would help the Government set priorities.

Her comments came after the US revealed that New Zealand had requested a possible purchase of 24 state-of-the-art Javelin anti-tank missiles, 164 missiles, simulators, support equipment, parts, training and logistic support at an estimated cost of $US32 million ($70 million).

But Deputy Secretary of Defence Robin Johansen said inquiries about buying the Javelin missiles were started under the last Government. He had no indication whether it was a priority for the Government now.

Helen Clark said that, whatever amount was decided, spending on the Army's capability, including new armoured personnel carriers and radios, would go through. The future of the navy vessel Charles Upham would also be decided.

No one could underestimate "how humiliated" the Army had been during peacekeeping operations in Bosnia and East Timor by having to "beg, borrow or steal" from other countries.

"There is no pride in it."

Other projects, including upgrading the Orion aircraft, would depend on finance.

"What we are doing now is looking at the overall capital sum New Zealand could afford and what could fit into that."

She hoped to know in several months what the options were.

Meanwhile, the Prime Minister rejected suggestions by New Zealand First defence spokesman Ron Mark that the Government was likely to spend more than necessary on armoured personnel carriers and radios to curry favour with the US after vetoing the F-16 fighter aircraft deal.

Defence Minister Mark Burton said cheaper equipment might be available elsewhere, but that did not mean it was the best deal.

- NZPA

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