Prime Minister Chris Hipkins made the announcement at today’s post-Cabinet press conference, his first since returning from the United Kingdom for the coronation of King Charles III. He is being joined by Defence Minister Andrew Little.
Little said as part of this year’s Budget nearly $420 million would be spent over the next four years on increasing pay of defence personnel – the biggest increase in over a decade.
"High rates of staff turnover, as well as increasing calls on the NZDF such as responding to Cyclone Gabrielle, training Ukrainian troops in the UK, and surveillance and patrolling in our region means our forces are stretched," Little said.
"The pay of many NZDF personnel, including new recruits, and skilled lower ranked service people will increase between $4,000 and $15,000 from July 1.
"This increase is four times greater than any previous defence remuneration boost over the past decade. It will go a long way to address attrition issues and make defence a career of choice."
Little said the funding announcement had an "immediate effect" with resignations being withdrawn.
"It means 90 percent of NZDF personnel will now be paid at, or close to, market rates."
Hipkins said he saw firsthand in the UK the esteem NZDF personnel were held while training Ukraine troops.
Some were putting in 100-hour weeks.
Hipkins said this announcement about addressing attrition, with increasing pressures in the Pacific around climate change and geostrategically.
Little said attrition was a priority for him.
It was clear that pay rates within the military fell below similar roles outside.
Little said defence staff were unable to join unions nor to go on strike.
This includes $90 million for upgrading aviation fuelling facilities at Ohakea, $93 million on communications for frigates and new Bushmaster protected mobility vehicles, and $85 million to improve defence housing, with up to 50 new buildings at Waiouru, and a renovation pilot for 13 properties at Burnham, Linton and Ohakea.
Retention has become a big problem for the Defence Force. It has been brought about by low pay, better wages in the private sector, and frustration with the long, tedious deployment as part of the Government’s Managed Isolation and Quarantine system.
Nearly 30 per cent of full-time uniformed staff across the army, air force and navy have left in the past two years.
‘She’s got my number’
Hipkins announced a minor portfolio reshuffle after former minister outside Cabinet Meka Whaitiri resigned from Labour last week.
Kieran McAnulty would be Cyclone Recovery lead for Hawke’s Bay, Rachel Brooking Minister for Food Safety, Peeni Henare Veterans Minister and Jo Luxton to become Minister Oustide Cabinet taking on Customs and Associate Agriculture and Education.
In a shock move last Wednesday, Whaitiri, a Labour MP since 2013, said she had resigned from Labour and would be running as a candidate for Te Pāti Māori in this year’s election.
She will be an independent MP when Parliament resumes this week.
Whaitiri held full portfolios of customs, food safety and veterans, and was also associate minister for agriculture and statistics.
Hipkins said he said he had absolute confidence in McAnulty taking over that role, describing him as a "safe pair of hands".
He said it was regrettable Whaitiri had left a role where she had the power to deliver what was needed.
Hipkins said had not spoken to Whaitiri since she resigned from Labour.
He said he had left her several messages but had not heard back.
"I guess the time has passed. Whilst I regret that, ultimately it has happened now."
He did not think there would be use in a discussion between them now.
"She’s got my number. She’s welcome to call me anytime."
Hipkins also said that at her request, Nanaia Mahuta’s responsibilities as the lead minister for cyclone recovery in the Waikato region had been handed over to Michael Wood.
He said it was "absolutely not" anything to do with her intentions of standing in 2023 - Mahuta has already been re-selected for her electorate.
‘We will never outspend National and Act’
The press conference comes as political donation returns published today show National received $5.1 million in 2022 - more than 12 times the amount Labour received, at just over $400,000.
Hipkins said it was not a new phenomena with Labour typically relying on a larger number of smaller donations.
"That’s always been the case and I’m sure it will always be the case."
"We will never outspend National and Act. They have people with very deep pockets supporting them."
He said that did not mean Labour could not be competitive.
On the recent attack ads National has taken out, he said: "If they want to go relentlessly negative, that’s up to them."
Hipkins is also likely to speak to his trip to the UK, including attending the coronation of King Charles III over the weekend.
Hipkins also met with the King while in the UK and UK Prime Minister Rishi Sunak, with whom he announced jointly New Zealand’s Free Trade Agreement (FTA) with the UK will come into force at the end of this month.
It is expected New Zealand exporters will save approximately $37 million per year in tariff elimination alone under the deal.
Hipkins is also likely to face questions about if New Zealand should become a republic and global calls for the British monarchy to address the impacts of colonisation.
