The Government might have to find another $40 million if it is to make good on Prime Minister Helen Clark's promise to extend New Zealand troops' presence in East Timor.
After a brief tour of East Timor this month, the Prime Minister raised the possibility that New Zealand peacekeepers could be in the troubled state a year longer than planned.
The original pullout date for New Zealand's 600-strong force of peacekeepers was next May, but troops could still be there to guard against outbreaks of violence in the run-up to East Timor's inaugural elections next August, and even for six months beyond that, she said.
To pay for the two further battalion-strength troop rotations, it is understood that Defence Force chiefs have prepared a cabinet paper asking the Government for an extra $40 million.
Defence Force spokesman Warren Inkster said that extending the troops' stay was speculation at this stage.
He would not comment on whether a cabinet paper had been prepared.
Mr Inkster said the United Nations paid the bulk of the costs of sending troops to East Timor.
A spokesman for Defence Minister Mark Burton said the $40 million figure had no "credibility" and was "pure speculation."
He said decisions on further deployments were not due to be taken until closer to Christmas, and at this stage no one had decided on the size or make-up of the force.
Until this had been done, no estimate of cost could even be guessed at.
The spokesman said much of the cost would also be reimbursed by the United Nations.
- NZPA
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