The Government has announced it will pour $12 billion into defence over the next four years, with Prime Minister Christopher Luxon saying it was time New Zealand “pulls its weight” internationally.
Money will be spent on everything from new helicopters and Boeing 757s to modern software systems and space capabilities as New Zealand prepares to face a more challenging and dangerous strategic environment in the Asia-Pacific region.
“Put simply, this is the floor, not the ceiling, of funding for our defence force,” Luxon said at the announcement on Monday, promising more funding in the future to ensure New Zealand was “combat-capable”.
Fast facts
- The Government will pour $12b into defence over the next four years to make New Zealand “combat-capable”.
- The Government made the announcement on Monday, with money going towards everything from new helicopters to space capabilities.
- Prime Minister Christopher Luxon said it was time New Zealand did its part.
“Tectonic shifts are unfolding in the global exercise of power,” he said. “Old assumptions are being upended and rules are giving way to power.”
Luxon said the risk of conflict in the Asia-Pacific region had risen and that New Zealand had to do its part both internationally and domestically.
As a result, a new Defence Capability Plan outlined that New Zealand’s Defence Force will need to have “combat readiness, capability and readiness” in the next 15 years with the ability to respond to “dangerous situations and environments” for an extended period of time.
This means that New Zealand will be spending 2% of its GDP on defence in the next eight years, up from 1%, bringing it in line with Australia’s defence spending.
Luxon said that officials will be assessing the Government’s defence spending plan every two years and increase it as the economy improves.
Defence Minister Judith Collins said it was important New Zealand worked with others to reduce the possibility of conflict.
Collins pointed to intercontinental ballistic missiles being fired into the Pacific Ocean as a clear example of why greater defence spending was needed.
“This reality requires us not only to work with others who share our values and interests to reduce the possibility of conflict but also to prepare ourselves should the worst happen,” she said.
Collins added that the Government had been working with the Australian Defence Force on procurement but were “realistic” about what can be procured.
“We are certainly always aware of the fact that sometimes it takes a long time to get capital, big capital items, actually in New Zealand,” she said.
With this, Luxon said that New Zealand intended to cooperate more with Australia on defence, something he said was in “New Zealand’s best interest”.
He said it was important to “maximise the synergy” between the two countries’ defence forces, but reiterated that New Zealand’s foreign policy would remain independent.
Collins said the reason New Zealand is an ally with Australia is through the ANZUS agreement.
“We are not playing tiddlywinks here, it is a tough world out there and the Australians are our best friends and we need to get on with it.”
She said that New Zealand stepping up to the plate on defence would be welcomed by other countries despite being a smaller player.
“A lot of the countries we most associate with in defence are very welcome of us stepping up and sharing the burden of defence,” she said. “Just because we are a small buyer compared to many doesn’t mean to say we are not significant.”
The announcement of new defence spending has been met with initial support from the Opposition, with Labour leader Chris Hipkins saying the Defence Capability Plan was largely in line with what Labour had done while in government.
“It’s not like there’s a huge departure and direction from what we had announced back in 2019,” Hipkins said.
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However, he said it was “a little bit rich” for the prime minister and the defence minister to say they involved the Opposition in the process as they developed the plan.
“I got a phone call a couple of hours before the announcement,” he said.
The Public Services Association (PSA) is calling on the Government to reverse its planned cuts to the NZDF’s civilian workforce if they were serious about boosting New Zealand's military capabilities.
The Government is planning to slash 374 roles from the civilian workforce, coming on top of cuts late last year which saw 144 civilian workers take voluntary redundancy.
The union’s national secretary, Fleur Fitzsimons, said civilians were the backbone of the defence force.
“Our civilian workforce are highly skilled engineers, mechanics, software experts and many others who will be key to ensuring the equipment and systems we buy remain ready and effective when threats emerge so the military can do their jobs,” she said.
Read the DCP 2025 here.
