Naval budget comes under fire

Press, 9 February 1989, Page 5

Naval budget comes under fire

PA Wellington The Navy accounts for more than 90 per cent of the lift in the Defence vote over the three years to 1991-92, according to Defence forecast figures sent to Treasury. The major part of the lift is associated with the controversial Anzac ship project. A peace activist, Mr Nicky Hager, who obtained the figures under the Official Information Act, said it was “criminal” such money was allocated for the

project when the Navy “had failed to give a convincing explanation” for its need. A naval spokesman, Lieutenant Lawrence Tye, said the figures were a “planning document” only and had no approval. He said the Government had made it clear the frigate project would be funded from within existing budget levels. The director of Information and Ministerial Services at Defence, Mr Malcolm McNamara, said this meant lower priority activities would be cut.

Under the documents obtained by Mr Hager, section eight, which refers to naval forces, will jump from $125 million this year to $230.2 million in 1991-92. The cost of working “in con- . cert” with Australia will jump from $41.5 million this year to $76.7 million in 1991-92, and the cost of surveillance and “monitoring” from $120.6 million to $222.2 million. Other cost increases concern Economic Exclusion Zone patrols, hydrographic surveys, and civil defence and search and

rescue. The information was sought by Treasury in a bid to force Government departments to justify more fully their budgets. Lieutenant Tye confirmed that the major lift in the naval figures “took account” of the Anzac project. He said they were based on the assumption that New Zealand will get the frigates. Mr Hager said the figures indicated the impact the project will have on defence spending in the future.