Defence chief says US strains hurting links with Australia

Defence co-operation with Australia is being limited by this country's strained military relationship with the United States, New Zealand's defence force chief said today.

Air Marshal Bruce Ferguson, speaking to Parliament's Foreign Affairs, Defence and Trade select committee, said there were issues having joint exercises with Australia that included the United States.

"The United States policy is we can't be involved in those exercises as a general rule," he said.

But Australians would "go out of their way to ensure that we will not be severely disadvantaged", Air Marshall Ferguson said in response to a question from National MP Murray McCully.

Intelligence sharing was the biggest issue but "when we need intelligence for operations that we're involved with, particularly say in Operation Enduring Freedom (in Afghanistan), we get everything that we require", he said.

"I'm entirely satisfied that at no stage my women or men were put in danger because of any lack, or potential lack, of information that we require and that is from the Americans and from the Australians."

Air Marshal Ferguson was asked by Green MP Keith Locke if New Zealand Special Air Services (SAS) forces had taken prisoners in Afghanistan and then handed them over to the United States.

He said to the best of his knowledge they had not taken any prisoners in Afghanistan.

It was the last time Air Marshal Ferguson would address the committee before he finished his term as defence force chief in February.

Air Marshall Ferguson took the opportunity to say he believed the defence forces were on the up, with $4.6 billion in funding over the next decade tagged mainly for personnel.

"We have been on a decline right through the 1990s," he said.

"We are rebuilding. Over the next 10 years I expect the defence forces will increase by some 2500 personnel and that's where the main resource deficiency is."

He said recruiting and retaining personnel were the most significant challenges the defence forces faced.

- NZPA