The New Zealand government has released details of its new Defence Capability Plan (DCP), which will see a significant boost to the country’s defence spending in the next financial year to NZ$9 billion (US$5 billion).
The new DCP also calls for defence spending to be raised to around 2% of GDP over the next four years, for which an additional NZ$12 billion will be allocated. Current defence spending only amounted to less than NZ$5 billion or 1% of GDP, which observers believe to be inadequate for New Zealand Defence Force (NZDF) operations.
“This blueprint has been designed with a 15-year horizon but deliberately focuses on critical investments needed in the next four years to ensure [the NZDF] can adapt as the world around us changes,” said Luxon.
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The plan also calls for new acquisitions over the next four years to enhance the lethality and deterrent effect of the NZDF with new maritime helicopters, improved connectivity for army communications, an improved version of the Javelin anti-armour guided missile, as well as retiring the Boeing 757 fleet in favour of new multirole personnel and cargo transport aircraft.
Besides new equipment, New Zealand also plans to enhance its interoperability with Australian forces, and explore new capabilities such as uncrewed vehicles and space technologies.
Despite being underfunded, the NZDF was nevertheless able to achieve modest improvements in recent years, with deliveries of the Boeing P-8A Poseidon maritime patrol aircraft and Lockheed Martin C-130J Super Hercules tactical airlifter completed. However, its navy has struggled with resource challenges and suffered the complete loss of the dive and hydrographic vessel HMNZS Manawanui in October 2024.
