Navy Gets New Ferrari

In my capacity as the Associate Minister of Defence, I today represented the New Zealand Government at a Navy Acceptance Ceremony in Whangarei. Her Majesty's New Zealand Ship (HMNZS) Taupo was formally handed over to the Royal New Zealand Navy.

The ceremony – held at the BAE Shipyard – followed a whakawhetai (thanksgiving) conducted by Royal New Zealand Navy (RNZN) kaumatua and local iwi, and took the form of a Division and First Colours ceremony. It was hosted by Chief of Navy Rear Admiral Tony Parr MVO and attended by representatives from BAE Systems and the Ministry of Defence.

The last of four Inshore Patrol Vessels built under Project Protector by BAE Systems, the HMNZS Taupo is not the first New Zealand naval vessel of its name – the original Taupo having operated during World War II.

That Taupo was a WWII Loch-class frigate – the class was all named for Scottish lochs – built in 1944 and originally dubbed the HMS Loch Shin. Part of the British navy, the vessel escorted a number of Russian convoys and was involved in the sinking of two German U-boats. In 1948, she – along with five other ships – was transferred to the Royal New Zealand Navy and re-named ‘Taupo'.

The ship handed over today, however, was first launched in August 2008 when Lady Her Excellency Mrs Susan Satyanand cut the ribbon releasing the champagne bottle on to its bow. The laying of the mauri (life force) for this vessel was then completed on April 17 2009.

Unlike her predecessor, Taupo is an In Shore Patrol Vessel (IPV) – a class of vessel based on a Tenix-designed search and rescue vessel in service with the Philippines Coast Guard.

These vessels are versatile and capable of multi-agency operations in support of national security tasks. The Taupo is 55 metres long with a minimum 3,000-nautical mile range, although sea trials show the range closer to double the contracted requirement.

The Taupo and her sister IPVs – the Rotoiti, Hawea and Pukaki – will make a significant contribution to the patrolling of New Zealand's 15,000-kilometre coastline, as well as our Exclusive Economic Zone out to 200 nautical miles. Her primary role will be to patrol, and respond to maritime security incidents within the in-shore zone around New Zealand.

In addition to patrolling, the IPVs will fulfil other tasks as required. These will include surveillance, response and boarding operations, and search and rescue. Secondary roles will include New Zealand disaster relief and defence aid to the civil community. Each vessel will carry 20 naval personnel and four Government agency officers, but they also have the capacity to host 12 additional personnel onboard for general naval training or other duties.
The introduction of the Taupo and her sister IPVs are an exciting development. According to the RNZN, comparing these ships to the Inshore Patrol Craft of the 1990s would be tantamount to comparing a Ferrari to a Toyota Hilux.

This is because the IPVs are much faster, highly manoeuvrable, and feature active fin stabilisers – providing a comfortable ride. Being specifically designed to undertake various tasks for several Government agencies – such as Customs, Ministry of Fisheries, DoC, Police, MFAT, NZDF and Maritime New Zealand – the IPVs are the most capable and sophisticated patrol vessels the RNZN has ever possessed.

In fact, the RNZN is sure there will be senior officers watching the IPV Commanding Officers with envy as they take command of their vessels – the introduction of which, it is hoped, will also enhance recruitment and retention as they frequent ports around the country.

Once final testing and training are completed, the Taupo will embark on her maiden voyage from Whangarei to Devonport next week. I will be onboard and will be able to witness for myself the value of her addition to the RNZN fleet.


Lest We Forget – The Budget

Budget Day is one of the most notable days of the Parliamentary year and with this week's delivery of the first Budget by a National-led Government in a decade, it is fitting that we look back at another Budget that made its mark in history.

When the fourth Labour Government swept to power in the snap election of 1984, then Minister of Finance Roger Douglas inherited an economy in disarray with a deficit equivalent to around $20 billion in today's terms.

Thanks to the outgoing Muldoon Government New Zealand was in the grip of heavy import controls, wages and prices were frozen, industries were propped up by subsidies and tariffs, and credit was difficult to access.

In a bid to offset these and bring the economy out of crisis, Roger began implementing the policies that became known as ‘Rogernomics'. His November 8 1984 Budget included: measures to control inflation, the removal of various subsidies and tariffs, and the privatisation of some public assets.
Roger also introduced GST, launched a family care package of $10 a week per child, imposed a surcharge on additional income earned by superannuitants, introduced a fringe benefit tax, and removed the rebate for first home buyers. These measures helped to turn a failing economy around in three years – a major feat under the circumstances.

While many saw that the reforms were needed to revive the economy, others viewed the policies as a betrayal of Labour's ideology. Despite the criticism, however, it is interesting to note that the 1984 Labour Government was re-elected in 1987 and no subsequent Government has repealed the reforms since they were implemented nearly 25 years ago.