Value for Money: Review of New Zealand Defence Force (August 2010)
The Value for Money review was an external review, led by Dr Roderick Deane.
It was commissioned to help to identify cost saving opportunities in the New Zealand Defence Force, in particular those that could shift resources to front line activities, and to provide options for the long term cost efficiency and financial sustainability of the Defence Force. The review considered all major areas of the NZDF’s operations and support functions and made 98 recommendations. The review was used to inform the Defence White Paper 2010 .
Terms of Reference
Purpose
The Value for Money Review will provide external advice to Ministers on the New Zealand Defence Force’s efficiency, cost effectiveness and sustainability. The Review will inform the White Paper later this year. The objectives are to review of the NZDF’s business model and cost structures; identify and quantify changes to the NZDF’s business model that would improve the NZDF’s financial sustainability; and provide an implementation plan.
Scope
The Review team may investigate any areas that may yield substantial cost-effectiveness gains.
The strategic context, including defence policy priorities, the number and application of military platforms, and operational deployments are excluded from the Review.
Governance / Oversight
A Governance Committee, chaired by the Secretary of Defence, will include the Chief of Defence Force and the Secretary to the Treasury (representing the central agency chief executives). The Deputy Secretary of Defence (Policy & Planning) will chair a Management Committee with representatives from the NZDF, Treasury, State Services Commission, and the Department of the Prime Minister and Cabinet. The external Lead Reviewer will provide regular progress updates to the Governance and Management Committees.
Timeline
A final report should be submitted no later than 30 June 2010.
Funding
Terms and conditions will be set forth in a contract between the external Lead Reviewer and the Secretary of Defence.
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