Norwegian Government Follows Up Long Term Defence Plan with Significant Budget Increase
These funding increases serve as an initial step in the process that aims to add NOK 165 billion to the budgets of the Norwegian Armed Forces over the coming 20 years. Focusing on addressing shortfalls in maintenance, spare parts and ammunition, and improving training levels and readiness, it seeks to create a solid basis for future investments.
Significantly, the budget also for the first time includes funding increases specifically intended to address the cost growth of military equipment, which consistently exceeds that of civilian sectors. This measure is intended to halt the continuing decline in purchasing power of the defence budget, and ensure better long term sustainability for the Armed Forces.
Among other major proposals, the Government is requesting authorization to order a further 12 F-35 combat aircraft out of the planned total of 52, divided by two batches of six delivered in 2021 and 2022. If approved, this would bring the total number of aircraft authorized to 40, and would allow Norway to participate in the proposed multinational block buy initiative.
The Government is also requesting an allocation of NOK 8.6 billion to cover existing commitments relating to the acquisition of the F-35 and related equipment and infrastructure.
Finally, the Norwegian Government also recommends accelerating the purchase of three new helicopter-capable Cost Guard vessels to replace the current Nordkapp-class. While already part of the Long Term Defence Plan, the Government no commits to an earlier procurement of these vessels than planned, and that they are to be built by Norwegian industry. The Government now plans to present this procurement project for Parliamentary approval in early 2018.
“We said when we introduced the new Long Term Defence Plan that first we had to make sure that what we already have actually works. That is exactly what this budget aims to do. We still have a long way to go, but this is an important first step towards building more capable and sustainable Armed Forces for Norway,” says Norwegian Minister of Defence Ms. Ine Eriksen Søreide.
Key figures:
Total defence budget: NOK 50.9 billion
of which:
-- Personnel and operations: NOK 35.6 billion
-- Infrastructure: NOK 3.1 billion
-- Procurement: NOK 12.1 billion
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Norway’s defense department — which has always said it planned to buy 52 planes — told its parliament in a 2017 budget proposal that it plans to purchase 12 planes in the 2019 and 2020 “block buys,” making it the first international partner to make such a multiyear purchase, an official said.
“They continue to stay strong in the program and it shows the confidence they have in the F-35,” said Ken Ross, a spokesman for Lockheed Martin in Fort Worth, where the airplane is built. The F-35 moves at supersonic speeds and has stealth capabilities.
By committing to buying the F-35 in a future block, the economy of scale will help drive down the cost to the desired $80 million to $85 million per plane, from $112 million per copy in 2013. F-35 customers plan on procuring about 450 aircraft from 2018 to 2020.
“Norway and other international partners on the F-35 program have been involved in the concept of a block buy since its inception,” said Joe DellaVedova, a Pentagon spokesman for the F-35 program. “Due to vast economies of scale, all countries will achieve significant reductions on the price of their jets.”
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from Defense Aerospace - Press releases http://ift.tt/2e6XMdQ
via Defense
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