Peter La Franchi/CANBERRA
New Zealand's Lockheed Martin F-16 lease arrangement with the USA is threatened by a national election within the next 10 weeks, with the Labour opposition threatening to dump the deal if it wins power.
New Zealand Labour leader Helen Clarke used the release of a major parliamentary inquiry report on defence planning to announce that she regards the F-16s as being inappropriate to the nation's defence requirements. A final decision on cancelling the lease would be dependent on the cost of abandoning the deal.
New Zealand defence officials indicate that cancelling the arrangement, finalised in early August, could cost up to NZ$70 million ($37 million) in damages. New Zealand is contracted to pay NZ$124.8 million over the 10-year lease, plus a one-off NZ$362.8 million reactivation cost.
The Labour attack follows release of the Defence Beyond 2000 report by New Zealand Parliament's Select Committee on Foreign Affairs, Defence and Trade. The report warns that both the government and the ministry of defence have failed to justify the F-16 acquisition in cost and capability terms.
Committee head Derek Quigley says enhancement of New Zealand's strike capabilities is the defence forces' lowest priority. He adds, however, that if the government demonstrates the benefits of the lease, it would gain crucial committee support.
Quigley also says he would support a revised deal for fewer aircraft provided they are fitted with advanced targeting and self-protection capabilities to support precision strike missions.
New Zealand requested 12 LANTIRN Litening II targeting pods and 12 ALQ-31 Block II self-protection pods as part of its FMS application. Quigley says the committee was unaware of the requests.
The report also calls for the Royal New Zealand Air Force to be provided with at least one, if not two, Lockheed Martin C-130J transports, and at least one dedicated special forces helicopter.
Source: Flight International
