The "significantly higher" than expected cost of New Zealand's NH Industries NH90 multirole helicopters will restrict its armed forces spending to just NZ$1 billion ($664 million) on new equipment projects throughout the remainder of the country's long-term development plan, says defence minister Phil Goff.

Outlining the defence ministry's new spending priorities during a speech to the Defence Industry Association of New Zealand in Wellington last week, Goff said new acquisitions will include a NZ$110 million project for six light utility helicopters to replace the Royal New Zealand Air Force's Bell Sioux aircraft. The air force must also replace its current advanced pilot training service from 2008, which uses five leased Beech King Air 200s, with Goff noting that a leased solution will again be considered.

Infrastructure improvements will also be undertaken at Ohakea airbase to support operations of the air force's Boeing 757-200 transport aircraft and NH90s, with the defence ministry to investigate from early next year the consolidation of all air force activities at the site. It could also invest in gaining access to a new communications satellite to be launched in 2010, Goff says.

New Zealand outlined a more than NZ$3.3 billion defence spending plan in 2002, but around two-thirds of this sum has already been allocated, including its NZ$771 million order for eight NH90s, plus additional air force projects to upgrade and extend the service lives of its 757s, Lockheed Martin C-130 transports and LockheedP-3K Orion maritime patrol aircraft

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© NH Industries   
The helicopter project has used a quarter of New Zealand's defence spend




Source: Flight International