Defence spending increases; no change in nuclear free Aotearoa

The fiscal budget last week announced a significant – and long expected – increase in defence spending. It is one that I for a change, approve of as I have long viewed New Zealand as under-investing in the New Zealand Defence Force.

What came as a bigger surprise though was the reply of New Zealand Prime Minister Christopher Luxon, when the United States called New Zealand out on its nuclear free stance. For once – and on a very welcome point – the Prime Minister was unequivocal. New Zealand will not be changing its anti-nuclear stance.

This will be very welcome news across the three ‘nesia’s: Polynesia, Micronesia and Melanesia. All have come to view New Zealand as a respectable partner because of its steadfast refusal to have anything to do with nuclear power and nuclear weapons. 40 years of being nuclear free has also helped New Zealand to stand out as an independent nation that will not sucker up to the United States on defence matters.

It will be viewed most probably with resigned frustration in Washington D.C., where New Zealand has long been viewed as a laggard on defence spending and supporting the American agenda. Whilst it is true that we have been a laggard on defence spending, and need to commit to higher base funding just to ensure the New Zealand Defence Force can do the basics, we do not need to be seen rushing to purchase American military equipment that might not suit our needs as an island nation. Nor does New Zealand need to blindly follow the U.S. into every engagement, when we have significant respect from the international community for contributing to international law and trying to set an example for smaller nations.

Just two days ago United States Secretary of Defence, Pete Hegseth called New Zealand “freeloaders” who don’t do enough. Mr Hegseth further said we should be spending 3.5% of our G.D.P. on defence. It was a comment that justifiably earned an unusually frank response from Mr Luxon who said New Zealand will not be told how to fund its defence.

So, what did we increase our defence budget for?

The Fiscal Budget 2026 highlighted four areas where defence spending would increase:

• The Navy would get several hundred million dollars to upgrade the frigates H.M.N.Z.S. Te Mana and Te Kaha, so that they are able to continue serving until their replacement in 2030
• Drones will be purchased to enable better surveillance of the southwest Pacific and Southern Oceans
• Overdue upgrades to housing and facilities across bases, and to reduce attrition
• Establish the Technology Accelerator, which is a pilot programme to encourage innovation and help the private sector connect with the Defence Force

The first one is long overdue. New Zealand’s two frigates have been in service since the late 1990s. They are both close to reaching the end of their service life, though hopefully rather than retire them as soon as their replacements arrive, perhaps use them for supporting the Pacific Islands and fisheries patrol.

New Zealand has a huge maritime patrol zone that we have responsibility for keeping safe. Some will argue against the drones, but my counterpoint would be that if we have no drones, the P-8 Poseidon patrol aircraft would have to do considerably more work. The P-8 aircraft might not be able to cover all the areas that they need to.

I have no recollection of anything more being spent on Defence Force property upgrades by either the Jacinda Ardern/Chris Hipkins government, nor its predecessor John Key/Bill English. If my memory is correct, then this is long overdue.

This last point is one that I am interested in because I think New Zealand needs to reduce its reliance on overseas suppliers of military equipment and service material contracts. I am not suggesting we start building our own planes, frigates and vehicles, but I do think that uniforms, essentials and consumables should be more of a New Zealand supply matter than one for overseas contractors.

In a wider Fiscal Budget that was not impressive in the least, this was one aspect I do approve of.