New Zealand to invest almost US$1 billion in drones and ships for maritime security
The New Zealand government announced an investment of NZ$1.68 billion (roughly US$1 billion) in maritime security over the next four years. The package covers coastguard vessels, surveillance boats and unmanned maritime craft. The decision came in Defence Minister Judith Collins's statement ahead of the Pacific summer.
Defence Minister Judith Collins said at her Wellington press conference that the package, with NZ$1.68 billion budget, will be completed over four years. The expected acquisition list covers six new surveillance boats, four unmanned surface vessels (USVs) and long-range maritime patrol aircraft. New Zealand Navy chief Mat Williams said the package will 'double southeast Pacific fisheries enforcement capacity'.
US Assistant Secretary for Indo-Pacific Affairs Daniel Kritenbrink's Wellington statement described the decision as 'aligned with allied interests'. Chinese Foreign Ministry spokesperson Mao Ning said at her Beijing briefing that 'increased Pacific country military spending may harm regional stability'. Lowy Institute analyst Anna Powles assessed the NZD outlay as the 'largest single defence line item of the past decade'.
The New Zealand dollar (NZD) strengthened 0.2 percent versus the US dollar; the NZX 50 index rose 0.4 percent. On Wellington's exchange, defence supplier NZ Defence Industry Holdings gained 6.3 percent. US Indo-Pacific Command (INDOPACOM) chief Admiral Sam Paparo will meet NZ Defence Force chief Tim Gall in Bridgewater on 28 May for coordination talks. This article is informational and should not be construed as investment advice.