KEY POINTS:
A 10 per cent pay rise for Defence Force personnel will help to recruit new staff as well as retaining existing employees, Defence Force personnel director Brigadier Mark Wheeler says.
Defence Minister Phil Goff announced the pay increase yesterday.
He said under-staffing in the military meant personnel numbers had to rise, but this would be difficult when unemployment was at historical lows and there was high demand for skilled workers.
Brig Wheeler said under the new strategy everybody across the three services and the reserve forces would be better off.
"It is no secret the New Zealand Defence Force has specific challenges regarding recruiting and retaining personnel with specialist skills ," Brig Wheeler said.
"This strategy will introduce a more effective and fairer military remuneration system that supports recruitment and retention initiatives.
"As a result of this work it is expected that pay in the longer term will no longer be a key reason for people to leave the services."
Brig Wheeler said it was not an across the board pay rise, rather it was about "transforming the remuneration system in order to retain and grow our personnel in a very competitive employment market".
The cost to implement the pay increase was about $60 million.
A parliamentary select committee recently reported that five land combat support units were staffed at less than 80 per cent and the military intelligence company staffing was down to 41 per cent.
The Government had put in $3.3 billion over 10 years to fund the long term development of the forces and $4.4 billion on the defence sustainability initiative.
- NZPA
