Budget 2024: Government commits $571m for Defence Force pay and projects

The Government is committing more than half a billion dollars to the New Zealand Defence Force (NZDF) to improve pay for personal and upgrade dated equipment.

Defence Minister Judith Collins announced on Friday the Government's upcoming Budget will include $571 million over four years.

Of the funding, $163 million will go to improving remuneration for personnel and $408 million to upgrading equipment and infrastructure. 

The additional funding includes $99 million of savings found within the NZDF budget as a result of the Government's public service cuts. 

NZDF was one of the agencies excluded from overall spending reductions. Instead, it was asked to find 6.5 percent of savings in back office and cycle that to the front office.

The Defence Force savings have been identified primarily from projects ending and a reduction in international and domestic travel, as well as a decrease in spending on contractors and consultants. 

Major projects are expected to continue as planned, the Government assured.

"Subject to Cabinet approval, a project will begin to replace the Unimog and Pinzgauer trucks, the NZDF’s workhorses, and most frequently deployed vehicles," Collins said.

"Replacement vehicles will have integrated communications that will enhance interoperability with regional and global partners, such as Australia, Canada, the United Kingdom and the United States."

The other projects for which funding has been allocated through Budget 24, subject to Cabinet approval, are:

  • The next phase of an upgrade to the NH90 helicopter navigation systems and radios
  • Upgrading the regional supply facility and logistics model at Linton Military Camp
  • Modernising devices and productivity tools
  • Upgrading some digital services
  • Improving national maritime domain awareness.

The Budget will also fund the leasing of 35 homes for Devonport Naval Base personnel.

"The world is increasingly unstable. We have only to look at events in the Ukraine and Middle East to see how quickly people's lives can change," Collins said.

"This Budget announcement is a signal that New Zealand is ready to step up and play its part to protect the freedoms that so many of us take for granted."

Collins said the Government's next step is to consider options for an updated defence capability plan which will shape future investment decisions around equipment needed.