Govt set for $12b defence investment

Prime Minister Christopher Luxon says there are some "areas for us to work on" with the boot camp...
Prime Minister Christopher Luxon. Photo: RNZ
By Anneke Smith of RNZ

The government will invest $12 billion dollars over the next four years for a "modern, combat-capable" New Zealand Defence Force (NZDF).

The coalition has just released its highly-anticipated Defence Capability Plan that sets out a spending blueprint for the next 15 years.

Of the $12 billion dollars of spending, $9 billion dollars is new money that will equate to a significant boost in annual funding for the force.

The plan will lift New Zealand's defence spending from just over 1% of GDP to more than 2% in the next eight years.

Defence spending was last at 2% of GDP in the early 1990s.

The government has committed to reviewing the plan every two years but was clear the spending outlined today is the floor, not the ceiling, for future investment.

Of note in the blueprint is the plan to buy new missile systems "to respond to hostile vessels at a greater range" in the next four years.

There are also indications the defence force will expand its maritime strike capabilities to deliver "long range strikes from multiple domains" from 2029 to 2039.

Major investments 2025-2028

  • Enhanced strike capabilities
  • Frigate sustainment programme
  • Persistent surveillance (uncrewed autonomous vessels)
  • Replacing the maritime helicopters
  • Javelin anti-tank missile upgrade
  • Network enabled army
  • Special operations sustainment
  • Vehicles for the NZDF
  • Counter uncrewed ariel systems (UAS)
  • Long-range remotely piloted aircraft
  • Replacing the Boeing 757 fleet
  • Space capabilities
  • Enhancing cyber security capabilities
  • Enterprise resource planning
  • Improving intelligence functions
  • Updating classified digital services
  • Accommodation, messing and dining modernisation
  • Defence estate regeneration
  • Defence housing programme
  • Future Devonport naval base design
  • Ohakea infrastructure programme
  • Defence, Science and Technology uplift
  • Technology accelerator
  • Information management
  • Digital modernisation
  • Logistics resilience
  • Consolidated Logistics Project Infrastructure
  • Implementing a workforce strategy

Defence Minister Judith Collins said the world was inherently more dangerous and New Zealand's defence personnel were at the frontline of the country's security.

"They cannot do their jobs without the right equipment and conditions. This plan outlines what resources, equipment and support we need to modernise the NZDF to operate now and in the future."

The Defence Capability Plan comes as Australia, the United Kingdon and several European nations up their defence spend and the second Donald Trump administration signals to the rest of the world it needs to step up its contributions.

Last week, RNZ's first Reid Research poll revealed about half of voters think New Zealand should increase its defence spending.