2016 – 2017 Annual Report - NZDF

1 1 New Zealand Defence Force Annual Report Report2016 2017 Presented to the House of Representatives Pursuant to Section 44(1) of the Public Finance Act 1989 and Section 91 of the Defence Act 1990 For the year ended 30 June 20172 New Zealand Defence Force Annual Report 20173 New Zealand Defence Force Annual Report 2017 Headquarters New Zealand Defence Force 20 Aitken Street Wellington New ZealandPhone: +64 4 496 0999 Facsimile: +64 4 496 0869 New Zealand Defence Force Website: NZDF Annual Report is published online at information pursuant to Section 44(4) of the Public Finance Act 1989. Crown CopyrightAnnual ReportNew Zealand Defence Force Te Ope K tua O Aotearoa2016 2017 For the year ended 30 June 20174 New Zealand Defence Force Annual Report 20175 New Zealand Defence Force Annual Report 2017 CONTENTSC hief of Defence Force Message 6 Part One: Who we are and what we do 9A Force for New Zealand 10 Our broader collective purpose 10 How we work 11 NZDF by the numbers 15 What we did in 2016/17 16 NZDF Global footprint in 2016/17 18 How are we organised?

2 23 Improving our military capability 25 Improving our organisational capability 31 Part Two: Delivering Defence 33 What outcomes we are trying to achieve 34 What do we deliver? 35 Prepare 35 Protect 44 Project 49 Inform 54 Veterans Affairs 54 Part Three: Accountability Reporting 57 Defence Force Operations 58 Departmental Output Expenses 89 Non-Departmental Output Expenses 93 Non-Departmental Other Expenses 94 Appropriations Ceased 99 Part Four: NZDF Statement of Expenses and Capital Expenditure 101 Part Five: NZDF Financial Statements 107 Statement of Responsibility 108 Independent Auditor s Report 109 Financial Statements 112 Notes to the Financial Statements 121 Non-Departmental Schedules 160 Notes to the Non-Departmental Schedules 162 2018 Forecast Financial Statements 167 Notes to the 2018 Forecast Financial Statements 1716 New Zealand Defence Force Annual Report 2017 CHIEF OF DEFENCE FORCE MESSAGEIt was not so many years ago that an Annual Report like this would reflect the Defence Force s role almost solely in terms of preparing for combat and other military operations.

3 While in those days we provided some support to other Government agencies, this was really treated by us as a positive externality a bit of good luck if you will. That is, in preparing our ships, people and planes for military operations, we sometimes also had capacity to lend a helping hand towards other tasks in and around New isn t our reality today. While we continue to spend the greatest portion of the investment Government makes in the New Zealand Defence Force on preparing our Navy, Army and Air Force for joint military operations the raison d etre of our armed forces - as this Annual Report highlights, we now have dedicated outputs related to our broader contribution to the protection and promotion of New Zealand s way of life. So doing things like resource and border protection, supporting New Zealand s Antarctic programme, deploying during natural disasters and conducting search and rescue, are all a part of core business for our Defence Force is an important and fundamental change we ve been making at the DNA-level of our organisation.

4 These tasks matter to ordinary New Zealanders, and they help ensure our Defence Force remains relevant 7 New Zealand Defence Force Annual Report 2017and connected to the people of New Zealand. Doing these things and doing them well - has become an important source of identity and pride to the women and men serving and working in the New Zealand Defence Force. However we do not step away from the fact that our primary purpose is to provide the Government (of the day) with an armed force ready and able to perform in combat. We accept that challenge, and more besides. New Zealand s Defence Force is prepared to fight and at the same time prepared to bring hope in times of crisis and despair, as we did to people in the aftermath of the Kaikoura earthquake. We did this while continuing to operate our headquarters from a damaged Wellington CBD. We arm our people and platforms both for combat and to engage and contribute to regional security through our Mutual Assistance Programme (MAP) for example where we provide technical assistance to South Pacific nations.

5 We are also instilling young New Zealanders with self respect and discipline through the Limited Service Volunteer programme, and through our contribution to Service Academies, to help them become more productive members of the community,And while we train and educate Defence Force personnel in military tactics and doctrine, increasingly we are training them to work more effectively alongside agency partners in the Police, Customs, Fire and Emergency New Zealand, Antarctic NZ, Foreign Affairs, Primary Industries and multi-facetted nature of this mission places a huge premium on our people. Our greatest strength does not come from the numbers of people and equipment we can put into the field, but rather from their quality. Our people must conduct themselves with professionalism and integrity. We set and maintain high standards as a lynchpin for achieving our mission for New Zealand. And when we believe our standards have not been met, we hold our people to account.

6 New Zealand society at large, would expect no less than believe the sailors, soldiers, airmen and civilians who make up the New Zealand Defence Force to be among the best in the world. We are a Force for New Zealand. Keating Lieutenant General Chief of Defence Force8 New Zealand Defence Force Annual Report 2017 New Zealand Defence Force Annual Report 2017 Part OneThe purpose of this section is to provide a high level understanding of the roles and responsibilities of the New Zealand Defence Force and what has been achieved during the 2016/17 financial WE ARE AND WHAT WE DO110 New Zealand Defence Force Annual Report 2017A FORCE FOR NEW ZEALANDThe New Zealand Defence Force (the NZDF) is a professional military force, highly trained, expert, and equipped to provide military support to domestic, regional and global security Government charges us to achieve three key outcomes: International Order is Supported, New Zealand s National Interests are Secured, Veterans Service is Honoured.

7 The NZDF is ready to respond to protect our nation, its security, and its interests. More than 14,000 military and civilian personnel make up the NZDF, incorporating the Navy, Army, and Air Force. We serve New Zealand while working with our partners to protect New Zealand s interests and the freedoms of those who cannot do it themselves. We help in humanitarian and disaster relief work here and across the Pacific. While we work to protect and advance New Zealand s future, we respect and honour the past and those who served before care for all our people. Our values are courage, commitment, comradeship. Together, we are a Force for New BROADER COLLECTIVE PURPOSEThe Government plays a key role in ensuring that New Zealanders are able to go about their lives confidently and without fear. The NZDF helps make that happen by ensuring New Zealand and its interests are ensure the NZDF is able to undertake the range of tasks required of it, we have developed military capabilities that can operate across a broad range of scenarios, both at home and abroad.

8 These capabilities are built to work together, and with other New Zealand government agencies and the militaries of other concept of national security is broader than just protection from military threats and includes the preservation of our economic and social interests at home and abroad. Furthermore, the Government s Business Growth Agenda identifies the building of export markets as one of its six key focus areas. Maintaining and growing our access to those markets depends on the maintenance of international law and order, and the NZDF works both independently and in conjunction with security partners and organisations such as the United Nations to achieve Zealand s natural resources are also an area of focus and, due to its wide range of capabilities, the NZDF is able to support the Ministry for Primary Industries in working to protect our fisheries through air and sea patrols of our Exclusive Economic Zone. The NZDF also supports the work of the Department of Conservation to better understand and protect our natural environment through gathering information, and moving people and supplies to remote a Defence Force, we are proud of our history and continue to acknowledge the debt we owe to our veterans whether they are still serving, retired or deceased.

9 We achieve this through directly providing services to our living veterans and by our ongoing commitment to commemorating historical sacrifices three key outcomes International Order is Supported , New Zealand s National Interests are Secured , Veterans Service is Honoured are so Zealand Defence Force Annual Report 2017 HOW WE WORKThe NZDF is three Services designed to work as one Force. The Navy, Army and Air Force each have unique capabilities, which have been developed to work together in joint operations and directed tasks. Joint operations often involve working with other militaries, public sector agencies, non-governmental organisations and international structure capitalises on the unique capabilities of each Service and allows flexibility, meaning task groups can be tailored to respond to specific tasks at any time, be it in peacetime, crisis or are one government agency that is also designed to work as part of a greater integrated system of government agencies.

10 After the Kaikoura earthquake in November 2016, the NZDF worked alongside other agencies to ensure support reached where it was needed as quickly as are also designed to operate as part of a global network, and we regularly participate in international activities and exercises to test and standardise this. In 2016, the NZDF participated in the world s biggest international maritime exercise RIMPAC, held off Hawaii. This exercise provided a valuable opportunity for NZDF personnel to exercise with its international partners and train for a broad range of military tasks. We also maintain close links with international security following diagram is a simplified representation of who we work with at home and | Army | Air ForceNZDFNavy | Army | Air ForceNZDFNavy | Army | Air ForceDomestic partnersContingency partnersAlliesOperational partnersGlobal partnersSector partnersCoalitionsGlobal partnersAustraliaCanadaGCSBSISMin of DefenceMin of HealthMin of EducationMaritime NZAntarctica NZPoliceDoCDIAMPIC ustomsM FATMSDDPMCNZ Fire ServiceUSAN ATOFPDA**UNCMF*UKNZDFNAVY | ARMY | AIR FORCE* Combined Maritime Forces** Five Power Defence Arrangement12 New Zealand Defence Force Annual Report 2017 When a magnitude earthquake rumbled through the centre of New Zealand on 14 November 2016, the New Zealand Defence Force was amongst the first agencies to epicentre of the earthquake was northeast of Culverden, near Kaikoura, and it caused roads to collapse and buildings to topple.