By Chris Penk
The Government is investing in drone systems, critical ship maintenance and work to replace our aging naval fleet as it bolsters New Zealand’s maritime defensive and offensive capability, Defense and Veterans Minister Chris Penk says.
“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,” Penk says.
“However, recent events have 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.
“Budget 2026 provides an additional $880 million of operating funding and $700 million of new capital funding for activities and operations as well as priority projects identified in the Defense Capability Plan (DCP), with a strong focus on maritime security.
“The Maritime Fleet Renewal program will receive funding for the ongoing work of delivering a modern and combat capable navy, as well as fortwo 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.
“The Budget will also allow for critical maintenance on the Anzac-class frigates and HMNZS Canterbury, to extend the life of the existing ships until they are replaced.
“Further major projects will deliver new and upgraded training facilities and continue the long-term Homes for Families program; building modern, healthy houses 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 program. This pilot program focuses on connecting industry with Defense to solve specific military challenges.
“More than 80 percent of the New Zealand Defense 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 Defense Force.
“Just over a year ago, the Government committed to investing in a combat capable New Zealand Defense Force that pulls its weight internationally and domestically through the Defense Capability Plan (DCP).
“This year’s Budget once again delivers on that promise with $1.6 billion of new funding to support essential Defense activities and priority projects, bringing the total new investment in Defense to $5.8 billion since the DCP was released.
“Budget 2026 provides an essential investment in the ongoing defense 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.”