Eyes for missile system to cost $8m

The Government has approved spending a further $8 million to buy sophisticated computer equipment which will allow a $23 million missile system to determine friend from foe.

The last National Government bought the low-level air defence system, which can be used to shoot down enemy aircraft and protect ground troops.

But the system could not be used in combat because National did not buy the targeting equipment needed to differentiate between enemy planes and friendly ones.

A spokesman for Defence Minister Mark Burton said the Government had seriously considered selling the system, but the minister had decided to approve spending the extra money to complete the project.

The Defence Force had said it was a useful capability and fitted in with modernising plans for the Army.

"Defence believes it is worthwhile keeping the equipment and spending the money so it is actually usable," said the spokesman.

He said the cost of buying the sophisticated computer equipment was estimated at $8 million. That would leave $6 million in the project budget, he said.

Official figures that the system could cost between $11 million and $15 million to complete were outdated, and new costings had been done in the past few weeks.

The spokesman said the National Government appeared to have made an ad hoc decision to buy the missile system and no proper strategy had been completed over how it could be used.

He was unsure why the necessary piece of equipment had not been bought.

The radar guidance system was an add-on, he said.

"There are people who are trained to use this equipment. You can actually use it but you can't go into a theatre of war with it."

The system could determine which planes belonged to an enemy and which to an ally.

"Without it, you use binoculars ... None of our defence allies would allow us to go into a theatre without it."

The former National Government approved the purchase of the missile system in 1994 and it arrived four years later, $4 million over its $19 million budget.

A 1998 Ministry of Defence report is said to have detailed a number of problems with the acquisition process.

These included the lack of an evaluation report, risks not being properly identified and the project management plan not being properly signed off, issued or updated.

Political tensions with France over the resumption of nuclear testing in the South Pacific are also understood to have contributed to delays in obtaining the weapon from late 1995 to mid 1996.

Mr Burton's spokesman said the project had not been a high priority, but because the system was not operational that position "had to be remedied".

Another reason for keeping the system was that it could be used on a temporary basis on board the Navy's new multi-purpose vessels.

The spokesman said the same missile system was used on the naval ships of other countries.

- NZPA

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