Forces review to turn every stone

Every arm of the Defence Force will undergo changes to gain greater efficiency of operation from a severely constrained state purse, the defence white paper suggests.

Releasing the policy review yesterday, Prime Minister John Key said that while it had been promised by National in happier economic times, it was providing the blueprint for savings on bricks and mortar to be made and put into frontline resources.

"In a world where we are constrained, our only option is to look for savings in certain areas."

Up to $400 million a year savings will be made annually, $100 million of which was identified by Dr Rod Deane in a value-for-money review separate to the white paper.

Many of the decisions are the sort National may have taken even without the fiscal pressures it is under.

Up to 1400 military jobs have been identified as potentially able to be converted to civilian jobs.

Linton Army camp near Palmerston North will merge with Ohakea Air Force base near Bulls and other mergers will be considered.

The Ohakea "hub" looks likely to be the test case for a private-public partnership, the details of which are yet to be settled.

But it is likely to involve the infrastructure development, facilities maintenance and provision of support services, the white paper says.

The Army will reconfigure itself so that it can have more people on overseas duty for longer.

One of the areas on which the white paper has not settled policy is on the Reserve Forces - Army territorials, Naval reserves and the Air Force Territorial Force. Their future and relationship with the Defence Force will be the subject of a separate review by the next Chief of Defence Force - yet to be appointed - by next March.

The paper sets out the basis on which New Zealand would go to war. That includes a threat to Australia or a member of the Pacific Islands Forum. It also cites the likelihood of further requests for New Zealand to participate in "ad hoc coalitions" and it says one of the criteria for acceptance would be the "international legality" of the use of force.

A spokesman for Defence Minister Wayne Mapp said this would be only part of an assessment.

"We generally participate in multilateral operations that are occurring under a UN mandate or resolution."

Australia is described as New Zealand's most important security partner. And it says New Zealand is a "stalwart partner" of the United States.

Unlike the Australian defence white paper, which dwelt on the role of China in the Pacific, New Zealand's white paper barely mentions China.

And when it does, it suggests that while China's power will increase regionally, it won't be able to match the United States globally.

"The US is expected to remain the pre-eminent military power in the world over the next 25 years and a close security partner of New Zealand.

"Other powers may test its regional preponderance, but only the US will retain a truly global military reach."

The paper says: "The pace of China's military modernisation and force projection programme, and the response this could prompt from neighbouring states, may test the relationships of the major regional powers."

Labour leader and former Defence Minister Phil Goff said the paper generated more questions than answers.

It did not set out how the $400 million in savings would be made or expose the costs of new expenditure.

He suggested that the pending new missile systems for frigates, worth $845 million when it was decided in 2008, could be deferred when early childhood education was facing cuts.

Greens defence spokesman Keith Locke said it was disappointing that the review did not project further moves toward independence following new Zealand departure from Anzus in the mid 80s and the scrapping of the combat strike wing in 2000.

FUTURE STRATEGY

Structure

* 1400 of a total 9500 military jobs to become civilian positions.
* Creation of a private sector defence advisory board.
* Appoint a chief operating to manage Defence properties.
* A merging Linton Army base into Ohakea.
* Running the Ohakea hub as a public private partnership.
* A review of bands, museums and libraries.

Budget

* No cuts in overall budget (current year about $3 billion).
* Savings of up to $400 million a year by 2015 to be used on other defence priorities.

When will NZ use military force?

* In response to a direct threat to New Zealand and its territories.
* In response to a direct threat to Australia.
* As part of a collective action in support of a member of the Pacific Islands Forum facing a direct threat.
* As part of New Zealand's contribution to the five part Defence Arrangement (with Britain, Singapore, Malaysia, Australia and New Zealand).
* If requested or mandated by the United Nations, especially in support of peace and security in the Asia-Pacific region

Army

* A reconfiguration to allow longer deployments of up to 800 personnel for two six month rotations.
* Creation of a specialist construction and combat engineer squadron.
* A modest increase to the SAS and its support operations.
* Light armoured vehicles cut from 105 to 90.
* The creation of a quick response medical team.

Navy

* Replace Endeavour refuelling ship after 2013.
* Satellite imagery capability to be established for patrolling foreign vessels.
* Anzac frigates to get self-defence systems upgrade.
* Sealift ship Canterbury to be replaced at the end of its life.
* Diving/mine countermeasures and hydrographic vessels Manawanui and Resolution to be replaced by one vessel.

Air Force

* 5 C130 hercules to be replaced about 2020.
* NH90 troop transport helicopters and lighter duty A109s to be upgraded with self-protection systems.
* A total of 8 new A109 helicopters to be bought for $15 million each, three more than previously planned.