KEY POINTS:
"Can't sail, can't fly, can't fight" was the headline that got up the noses of Top Brass and Minister Phil Goff when the Defence Force annual report came out in September, as the election campaign was beginning.
Chief of Defence Force Lieutenant-General Jerry Mateparae pointed to the Army's highly regarded work in Afghanistan and East Timor and 44-strong peacekeeping platoon in the Solomons; the Navy frigate Te Mana's deployment in the Gulf; and search and rescue and surveillance work by Orion aircraft in the Pacific and Southern Oceans.
Mateparae was rightly worried about the impact on morale already dented by capability constraints. And the agency's pinpointing of capability gaps in the three services could be interpreted as a wishlist for political masters at a time of no obvious threat to national security.
But if there was a sudden regional emergency in which New Zealand was expected to help Australia's Defence Force, it's clear we would face an uphill battle.
The Labour Government committed $4.1 billion over 10 years to re-equipping the Defence Force after years of under-funding. That programme - which includes seven new Navy ships, upgrades for the Air Force planes, new helicopters, Army vehicles and mobile communications equipment - promises a significant boost to the 13,000-strong Defence Force's capability but is plagued by unforeseen problems, delays and cost overruns.
Meanwhile, the three services are in make-do mode.
The rolling upgrade of the Orions and Hercules is battling to head-off rising obsolescence (in the Orion's equipment) and corrosion (in the Hercules fleet). Deficiencies in communications, mobility and combat field engineer equipment "degrade the Army's effectiveness in conventional combat operations and the more demanding peace support operations".
For all the current limitations of our ships, planes and vehicles, personnel problems loom as a bigger long-term constraint on performance. The past decade's booming labour market has contributed to recruitment and retention problems which have left all three services short of experienced, skilled staff to operate and maintain the new equipment and train recruits.
The Army appears most stretched - its lengthy commitments in Afghanistan and East Timor, equipment limitations and skill shortages would limit its response to higher-threat emergencies, the Defence report says. It could not provide a battalion and a company group in separate operations and would be unable to provide domestic military police support while responding to military emergencies.
There are specific skill gaps across the board. Only one of the Navy's two diving teams is operational - "the overall state of the diving branch can be characterised as very fragile" - while the hydrographic branch is short of senior surveyors.
A lack of experience among ground crew concerns the Air Force, with maintenance supervisors in short supply. Staffing levels and spares shortages would limit the Orions' availability for lengthy military tasks. There are shortages of pilots, tactical coordinators and air electronic officers.
Defence Minister Wayne Mapp promises this much: there won't be more money to plug the gaps.
"Our biggest focus is on completing the projects and getting new capabilities into service."
He says personnel shortages have eased slightly after a pay rise last year and the economic downturn. A recruitment drive in Britain is attracting staff from the shrinking Royal Navy.
"We can do what we're doing now with the size of Defence Force we've got, subject to particular concerns around people with seven to 10 years experience in fields like avionics."
Mapp plans a Defence white paper to address the issues going forward. "If we had to do a significant step-up, it would obviously be a substantial challenge. We have to be able to deploy a battalion internationally, plus one other thing."
He says the new patrol vessels will produce a huge leap in capability for the Navy.
The future of the Army's LAVs (light armoured vehicles which look like mini-tanks), used so far only for exercises, is an issue for the white paper, as is the long-term replacement of the Hercules transporters.
"When it's all sorted - with upgraded Orions, Hercules and helicopters and the Project Protector fleet - the Defence Force will look pretty impressive."
