Defence Minister Chris Penk has announced a $1.58 billion investment in the country's offensive and defensive maritime security ahead of the Budget next week.
Penk said the investment will go towards drone systems, critical ship maintenance and work to replace “our ageing naval fleet”.
“New Zealand’s prosperity and security depend on the sea. For many years, New Zealand’s geographic distance has been seen as a shield from instability elsewhere in the world.”
He said recent events had served “as a reminder” of how quickly disruptions to international shipping routes can affect economies and supply chains “across the globe”.
“The oceans are not a barrier to danger, but a vital national interest that must be actively secured.”
Penk said the Budget, which will be delivered on Thursday, provides an additional $880 million in operating funding and $700 million in new capital funding for “activities and operations” along with “priority projects identified in the Defence Capability Plan” with a “strong focus on maritime security”.
“The Maritime Fleet Renewal programme will receive funding for the ongoing work of delivering a modern and combat capable navy, as well as for two types of drones.
“One will be used in the South-West Pacific to provide long-duration intelligence, surveillance and reconnaissance, while the other is polar-capable and can conduct missions from Royal New Zealand Navy vessels in the Southern Ocean.”
Penk said the investment would allow for the critical maintenance on the Anzac-class frigates and HMNZS Canterbury, “to extend the life of the existing ships until they are replaced”.
“More than 80% of the New Zealand Defence Force’s $2.6 billion operating and personnel budget is spent within New Zealand, bolstering the economy while serving the dual benefit of ensuring we have a strong Defence Force.”
The funding would also go towards both new and upgraded training facilities, and to continue the Homes for Families programme, "building modern, healthy homes for personnel and their whānau".
“This Budget also includes investment in our national economy through construction, maintenance and sustainment projects with New Zealand-based businesses, and $1.5 million of capital funding alongside $16 million of operating funding to begin work on the Technology Accelerator programme. This pilot programme focuses on connecting industry with Defence to solve specific military challenges.
“Budget 2026 provides an essential investment in the ongoing defence of New Zealand and its interests at a time when New Zealand personnel and equipment are expected to be called upon more often, in challenging circumstances.
"Whether it be providing support during severe weather events at home or deploying with trusted partners overseas, New Zealand’s personnel undertake vital work and deserve unwavering support."
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