Government confirms $500m for navy vessels

10.45 am

The Government this morning confirmed its widely flagged move to spend $500 million on ships for the navy, including a multi-role vessel to replace the frigate Canterbury.

Almost half the money will go towards the multi-purpose vessel which official papers say can be bought for a maximum $US100m ($236.6m). The Leander-class frigate Canterbury is due to be retired in 2005.

Defence Minister Mark Burton today said that at least two offshore patrol vessels would be bought.

Four or five inshore patrol vessels were also needed, although it was possible the navy's existing inshore patrol craft could be upgraded.

Mr Burton said reviews had identified gaps in the navy's current ability to meet its tasks, particularly sealift and civilian patrol requirements.

"Cabinet has therefore agreed to spend up to $500m on capital acquisitions for the Royal New Zealand Navy."

The Ministry of Defence would get proposals from industry on the type of vessels to meet the navy's requirements and Mr Burton said opportunities for New Zealand industry to be involved would be explored.

"Once input from industry has been analysed, I will put acquisition proposals forward to cabinet."

Mr Burton said the Government had embarked on a badly needed equipment modernisation project across the navy, air force and army, that involved spending about $2 billion over the next decade.

The navy fleet currently consists of the Anzac frigates Te Mana and Te Kaha; the frigate Canterbury; the tanker Endeavour; the diving support vessel Manawanui; four inshore patrol craft Moa, Kiwi, Wakakura and Hinau; and Resolution, a hydrographic and oceanographic survey ship.

The maritime forces review says the navy's inshore patrol craft have a maximum speed of 12.5 knots, meaning they are "not ideally suited" for inshore patrol tasks.

Upgrading the existing fleet would provide a low cost solution although it would not meet all requirements.

Civilian agencies agreed, however, that upgraded inshore patrol craft could provide "a workable solution" if financial constraints meant new boats could not be bought.

The review said buying a multi-role vessel, two offshore patrol vessels and upgrading the inshore patrol vessels would provide the "minimum level of coverage but would not satisfy the total requirement"'.

Prime Minister Helen Clark yesterday said the new boats and how they were used had to reflect New Zealand's small size and long coastline.

"We have the conventional naval security issues, we have fisheries issues, we have customs issues and some police issues... If we were a larger country we would have a separate coastguard, a separate, probably dedicated fisheries protection fleet. But there are 3.8 million of us and the resources that go with that."

The prime minister said the review had brought the agencies together and she was confident they would co-operate over how the new vessels were used.

The medium-range patrol vehicle would be a useful new vessel for the navy as it filled a gap in capability and training for staff, Miss Clark said.

The maritime patrol review formed part of the Government's controversial defence announcements in May last year, when the air combat wing was scrapped.

The multi-role vessel would carry troops and equipment, including the army's new light armoured vehicles, would have a helicopter deck and be reinforced against ice to patrol the Southern Ocean.

The patrol boats would be run by the navy but would also work for other government agencies, chiefly Customs and Fisheries.

- NZPA

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