Obviously I would love to see more helos for everyone and all fully specced but the inner financier in me sees an already expensive fleet requiring replacement along with a surprising big ticket spend (added sealift) in the pipeline and "assumes" cost WILL be a factor, as per always.
Decided to reply to RegR in the General thread rather than the RNZN thread because it's probablly way off topic.
I know this cost vs finance vs trade offs argument always comes up and I still think it's a b******t argument and I'm willing to die in a ditch to debate it. But I don't think you are b******t, of course not. I think the argument is b******t. Printing money for the NZDF is one of the only mandated reasons that printing money can be justified. The point is money isn't a problem when something is really important to the smooth running of the government.
My favourite example for identifying risk is the psychological game people play on Zebras to find out why lions don't hunt them. Some people tag Zebras with markers because their stripes make it difficult to single out a zebra. Much to there surprise the lion is able to attack the zebras that have been marked.
So it turns out the lion finds it difficult to target a single zebra but when you give them a target then it's dinner time. So that's my illustration of a nudge and what's a nudge - a nudge is something that attracts our attention and alters our behaviour and it comes down to values. So when should we shove and when should we nudge I think is a political judgment. Obviously in some situations we need shoves as in we need laws so we don't need just nudges. So if some corporal is found drunk at the wheel he is fined which is a push and then we may nudge him with some device that only allows the engine to start if he's got a breath-alcohol level of zero. So which direction we go on defence capabilities and funding will be a political issue where, of course, people differ.
I think the people who've been most underwhelming are the people who adhere to the trade-offs dogma and the reason is because we failed to learn the primary lesson of treasury when long-term-treasury-forecasts go belly up, and that is NZDF capabilities that seem uncorrelated can be correlated simply because we (you, I and everyone else) are interested in those defence capabilities. Now NZFD by its very nature does not produce revenue so applying routine business practices to NZDF seems completely unrelated to the pools of money that the NZDF has access to that very few government institutions would, but they are related simply because people are interested in profits.
So the world is much more correlated than we give it credit and we are seeing more Black Swan events because rare events are happening more often than they should because the world is more correlated. So I think one lesson we ought to learn is that there is a lot more risk than we are giving credit too.
You know I think one change that can be made is that people who make a lot of money out of defence so any one who has anything to do with VoteDefence and earns over $300,000 so pretty high up. I think a chunk of that should be differed. I think that would change the whole game. The money has to be differed with what's called claw-back which means if NZDF starts losing money they can get it back before there is any meaningful drop in overall funding. So if cuts to defence spending is justified then they better mean it. The taxpayer shouldn't pay for anything that is suboptimal. Y'know if people want to de-mobiles then they should have skin in the game and run things by a committee before decisions over capabilities should be actioned.
So I think that decision makers ought to learn the lessons of treasury or expect parliament to act because it's even more important now to get all this stuff correct. Y'know the number of patrol days for the Navy need to go up, the amount of men and material the Airforce has to project needs to go up, the amount of force projection needs to go up. So I think that if anyone wants to for example the top page of the DCP should have an auto-enrolment that says if you want to cut this or that, then we are going to pull money from your salary or make treasury print money and we're having it anyway, as a backstop. Auto-enrolment probably shouldn't be slipped into the DCP but Y'know someone's going to have to level up a huge amount in order to stitch up these deals from now on. But if they don't want to auto-enrole then a selection of decisions makers (MPs) can sign saying I don't want to join which goes on top of any deal and when they're in the proper position to cut spending or capability then they can do so because that's what the contract says. But if you're just Johnny come lately after 20 years into a 25 year defence capability plan with a whole bunch of treasury calculus then there has to be a device that clears them of there blood alcohol before they can Y'know, cut funding.