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.

2 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? 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?

3 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

4 Military operations. 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.

5 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. 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.

6 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.

7 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.

8 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. 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.

9 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.

10 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.