Report lambasts Army light vehicle purchase

The Army's purchase of 105 light armoured vehicles (LAVs) is a "sorry chapter" for major capital acquisition projects in New Zealand, a parliamentary report says.

There was no place for dysfunctional relationships within the Army and between it and the rest of the defence force, the cross-party foreign affairs, defence and trade select committee said in its report on the financial review of the Defence Ministry and New Zealand Defence Force.

The report followed last year's inquiry by Auditor-General David Macdonald which found "an acquisition process based around the tripartite relationship between the ministry, the NZDF and the Army".

"This gave rise to an environment of poor communication, confusion over roles and dysfunctional relationships," the Auditor-General's report said.

It also said delays in the purchase process caused the price tag on the LAVs to skyrocket as the New Zealand dollar tumbled against US and Canadian currencies; the final cost given to the committee was $677.46 million, instead of the $212 million originally budgeted for by the previous Government.

The first of the LAVs were expected to arrive next year.

The report also covered the implications for New Zealand following the September 11 terrorist attacks in the United States.

"Prior to the terrorist attacks of September 11, the defence policy framework and the Government's defence statement were announced against a backdrop described by some sources as an incredibly benign strategic environment," it said.

Defence Force Chief Air Marshal Carey Adamson had told the committee the international environment had changed, resulting in a greater need for concentration on New Zealand's ability to gather, collate, analyse and disseminate intelligence information.

"Air Marshal Adamson also stated that extra resources for intelligence are required immediately," the report said.

National MP Max Bradford said the report showed it was time for Defence Minister Mark Burton to reconsider the LAV purchase. "The world has changed and, with it, the appropriateness of the LAV purchase," he said.

"It is now time for the Minister of Defence to act in the best interests of all New Zealanders and recommit the project for a new assessment."

- NZPA

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