Budget 2024: $571 million for Defence Force pay, equipment

The Government will inject $571 million into defence spending to better remunerate servicepeople and improve defence equipment and infrastructure.

Defence Minister Judith Collins made the pre-Budget announcement today at Burnham Military Camp in Christchurch.

Of the additional funding — most of it to be spent over four years — $163 million would go towards increasing the pay of Defence Force personnel, while $408 million would go towards upgrading equipment and infrastructure.

The additional funding included $99 million worth of savings found in the NZDF budget.

Collins said New Zealand's servicepeople did New Zealand proud throughout the world and the funding would help ensure the retention of their services and expertise in "an increasingly unstable environment".

"NZDF personnel are at the frontline of New Zealand's security but they cannot do their jobs without the right equipment and conditions."

Collins said that, subject to Cabinet approval, the Defence Force would begin to replace Unimog and Pinzgauer trucks, which she called "the NZDF's workhorses" and said were most frequently deployed vehicles.

"Replacement vehicles will have integrated communications that will enhance interoperability with regional and global partners, such as Australia, Canada, the United Kingdom and the United States."

Other projects on the list for funding — subject to Cabinet approval — included the next phase of an upgrade of NH90 helicopter navigation systems and radios, upgrading the regional supply facility and logistics model at Linton Military Camp, modernising devices and productivity tools, upgrading some digital services and improving national maritime "domain awareness", she said.

It would also fund the leases for 35 homes for Devonport Naval Base personnel.

"Together these remuneration increases and projects will help boost our economy while ensuring New Zealand is ready, willing and – crucially – able to play its part internationally.

"The world is increasingly unstable. We have only to look at events in the Ukraine and Middle East to see how quickly people's lives can change."

Collins said the announcement was a signal New Zealand was "ready to step up and play its part to protect the freedoms that so many of us take for granted".

The next step was to consider options for an updated Defence Capability Plan, which would shape New Zealand's future investment decisions on the equipment it needed "as we step up", she said.

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