The auditor-general has found the New Zealand Defence Force (NZDF) mishandled its civilianisation project - compromising the organisation's ability to do its job.
Government-enforced savings meant the NZDF had to find savings of hundreds of millions of dollars, which the force admits it didn't handle as well as it could.
When the Government demanded the NZDF make hundreds of millions of dollars of savings, it promptly set out to civilianise 1400 roles, but admits it jumped the gun.
“Our advice to the Government was whole," NZDF chief Lieutenant General Rhys Jones says. "There is a tolerance to this and we'd rather do it in slow bites. But the reality was we had to move ahead because each year we had to save round about $100 million."
In a report into the civilianisation project, the auditor-general says “discharging military staff has to be carried out with great care to avoid damaging camaraderie, integrity, and commitment”.
But instead, the NZDF chose a course that led to a drop in morale and an increase in attrition.
Labour MP Phil Goff does not approve.
“They have gutted the Defence Force. They have slashed the numbers by 1000. They've failed to give a pay rise for more than four years and then they wonder why one in five members of the Defence Force are leaving each year.”
Most of the losses came from the Navy, which has been forced to dock its fleet at times because there just aren't enough sailors.
The report says the compromises don't end there, with the loss of so many military staff making it more difficult for the NZDF to do its job.
Defence Minister Jonathan Coleman insists the Government’s demands for savings were reasonable.
“They're confident they're meeting those targets and they are meeting those targets, which is the important thing.”
But according to the auditor-general, the savings made from civilianisation fall short. It has lead to changes within the NZDF, though. Any future plans to civilianise won't be so hasty.
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