The army is stretched and not as prepared as it could be for new deployments, a new report shows.
The Controller and Auditor-General has issued a report looking at three years of The Defence Sustainability Initiative. That was the New Zealand Defence Force (NZDF) programme to use an extra $4.4 billion of operating funds over 10 years. The new government ended the initiative in December but some of its projects continue.
Last year a Defence Force report painted a picture of it hamstrung by a lack of staff and poor equipment.
Today's report said there had been progress but some ongoing problems.
In her overview, Deputy Controller and Auditor-General Phillippa Smith said NZDF had planned to restrain the number of troops away on deployment.
"NZDF needed the deployment rate to be no more than 11.7 percent of regular force personnel... to ensure that resources would be available to achieve the initiative's objectives."
However it deployed 12.4 percent in the first year, 15.8 percent in the second and 17.2 percent in the third year.
"Sustaining these levels of deployment came at a cost; the army was not able to meet its targets for improving preparedness for potential deployments because more of its personnel were deployed."
The air force and navy were largely able to meet targets, because they had fewer resources deployed.
Rising capital and operating costs eroded the value of the initiative's funding and slowed progress in meeting other targets.
But extra funding allowed more staff to be recruited. The army met its target for increasing numbers but the air force and navy missed by 3 percent and 4 percent respectively.
The army was also able to reduce staff attrition by about 4 percent, but the air force losses increased by 1 percent and the navy by 4 percent.
The navy and air force did surveys on attrition.
The air force found top concerns included career development, workload, leadership, pay and housing.
The navy found workload and stress among the top areas of concern, as well as pay, career opportunities and housing.
The report said higher than planned deployments combined with limited progress in reducing attrition were the main reasons slow progress was made in improving numbers and effectiveness of personnel in critical trades and, for the army, in critical ranks.
"Improvements were needed because these trades and ranks are critical to starting and completing missions safely and effectively," it said.
Good progress was made clearing a backlog of minor capital equipment shortages and stock to be held in case of new deployments.
Operating funds were set aside to recruit personnel for the seven new Protector Fleet vessels.
NZDF centralised corporate services reducing jobs by 370 people.
NZPA