Ministry of Defence Savings Initiative 2024 Information Release

Additional info

This publication provides details of the Ministry of Defence’s work to deliver on the Government’s Savings Initiative over the period November 2023 to May 2024.

From the 2024/25 financial year the Ministry has made $2 million in savings to its operating budget. The annual savings comprise:

• $1.3 million reduction in personnel via managing vacancies and fixed term roles; 
• $500,000 reduction in contractors and consultants; and 
• $200,000 reduction in other operating expenditure such as domestic and international travel for diplomacy and engagements and staff training.

The Ministry will remove 12 positions by managing vacancies and fixed term roles, as well as a corresponding reduction in contractor and consultant costs. No redundancies or change
processes have taken place.

The reduction in personnel costs does not necessarily equate to an overall reduced headcount at the Ministry. The majority of our work programme relates to multi-year, large scale military procurement which is funded largely from capital  expenditure rather than operating. As capital projects are completed and new ones approved, our workforce can change as a result.

As a result of the savings, the Ministry will continue to re-reprioritise resources to support Government priorities as future activities arise.

The pack comprises the following documents:

• SLT item and associated minutes: Budget 2024 – Savings Initiatives, 12 February 2024
• SLT item and associated minutes: Updated forecasts – Savings exercise, 25 March 2024 (this item was considered on 2 April 2024)
• SLT items and associated minutes Baseline Savings exercise and Long-term forecast, 24 April 2024.

As additional context, also enclosed are emails from the Secretary of Defence to all Ministry staff, dated 28 March and 10 May, along with:

• speech notes for a speech delivered by the Secretary of Defence: Secretary of Defence’s Opening Remarks, Town Hall Meeting 1000 Thursday 7 March 2024, and
• slides for a presentation to staff on the Ministry’s savings, from 24 June 2024.

Please note that early-stage planning and forecasts that are included represent a point in time, and are subject to change.

Related information is available from the following links:

• Beehive press release regarding Defence funding in Budget 2024: https://beehive.govt.nz/release/571-million-defence-pay-and-projects.
• Budget 2024 Vote Defence appropriations on the Budget website:  https://budget.govt.nz/budget/2024/by/dept/.
• The Budget 2024 information release is available from the Treasury website at:  https://treasury.govt.nz/publications/budgets/budget-information-releases.

It has been necessary to withhold certain information in accordance with the following provisions of the Official Information Act 1982. Where information is withheld, the relevant sections of the Act are indicated in the body of the document. No public interest has been identified that would outweigh the reasons for withholding it. Information is withheld in order to:

• protect the privacy of natural persons [section 9(2)(a) of the Act] 
• maintain the constitutional conventions for the timing being which protect the confidentiality of advice tendered by Ministers of the Crown and officials [section 9(2)(f)(iv) of the Act]
• maintain the effective conduct of public affairs through the free and frank expression of opinions by or between or to Ministers of the Crown or members of an organisation or officers and employees of any department or organisation in the course of their duty [section 9(2)(g)(i) of the Act].