In May 2005, the Government approved a Defence Funding Package of up to $4.4 billion in extra operating funds over 10 years to improve the military (personnel and equipment) and corporate capability of the New Zealand Defence Force (NZDF). The Defence Sustainability Initiative (the Initiative) was NZDF's 10-year programme to use the extra funding. In December 2008, the Government ended the Initiative as a distinct programme, but some of its projects will continue.
My staff audited NZDF's progress for the Initiative's first three years from 1 July 2005 to 30 June 2008 (the foundations phase). I wanted to assess whether expected improvements in NZDF's capability had occurred. I also wanted to report to Parliament about the likelihood that NZDF would achieve the Initiative's goals by 30 June 2015.
I am pleased that NZDF set out, in advance, major areas of focus for the short term, medium term, and long term, and corresponding performance measures to assess progress. This approach means that NZDF has suitable management accountability processes to monitor and report progress and adjust timetables or methods as needed. It also enables others, such as Parliament, the public, and my staff to have a more informed discussion about NZDF's progress.
Phillippa Smith
Deputy Controller and Auditor-General
1 September 2009