Speech to the Australia New Zealand Leadership Forum

The defence partnership between Australia and New Zealand is enduring. It has its origins in shared experiences, not just in Anzac Cove, but also through World War Two and in South-East Asia. Today we are both in Timor-Leste, the Solomons and Afghanistan.

In 2009 it is now clear that we have a unique opportunity to develop the relationship beyond interoperability to a much deeper joint approach. Our two Prime Ministers have already signalled their intent in this regard.

This afternoon, I want to deal with three particular aspects of the ANZAC partnership. The first is the progress of our own Defence Review. The second is the role that both of us play in our immediate region, especially within the Pacific. The third is our commitment to continuing to be a valued partner on the broader world stage.

Our Defence Review is making solid progress towards its publication early next year. Major strategic priorities have been identified. The implications of these priorities on our capabilities, both now and in the future, are being worked through. Concurrently with this work we have been undertaking wider public consultation. Although the public consultation is not completed, it is apparent there is a broad consensus on New Zealand's fundamental security priorities.

The public understand the need for a Defence Force that is able to meet the challenge of contemporary operations. They understand that for New Zealand more than just about any other country, defence is something we do away from home, whether it be in the Pacific with our ANZAC partner, or further afield as part of our multilateral relationships.

Part of this understanding is a widespread view that New Zealand is not directly threatened in a traditional military sense. Even during the global conflicts of the 20^th century, New Zealand itself remained free from invasion, although ships were sunk off our coast during World War Two.

This does not mean that New Zealanders believe that we should remain apart, secure behind the biggest natural moat in the world.  Rather, it has led to a deep appreciation that the best way to ensure peace for ourselves is to take our wider responsibilities seriously. The ANZAC partnership is our most fundamental defence and security commitment. We actively work in conjunction with other like-minded countries to foster a secure and stable world.

New Zealand has as much to lose as anyone if there is a significant rise in tensions, especially in the Asia-Pacific region. We also realise that being a part of the wider region means both playing and being seen to play an effective part, whether it be in defence or other relationships.

In this, I should note that Australia and New Zealand have somewhat different defence contexts. Australia's size, geographic positioning and status as a "middle power" in the region require it to develop and maintain capabilities that are beyond the scope of New Zealand.

The disparity in our size means New Zealand has to think carefully how to make the best and most useful contribution to the ANZAC partnership. I do note that in personnel terms New Zealand's defence force is one-fifth the size of Australia's. It is our intent that New Zealand adds real value to the ANZAC partnership.

We noted with considerable interest the Australian White Paper released earlier this year. It particularly recognised the close ties between our two countries. Significantly, Australia's Review forecast the further development of the ability to integrate our forces, where appropriate in the ANZAC tradition. We have taken this on board, and this is a key factor in the development of our own White Paper.

The Prime Ministerial announcement yesterday, to investigate an ANZAC defence contingent which could be deployed at short notice, will provide a real impetus to our Defence Review.

This brings me to my second point, which is the deepening of our shared relationship in the Pacific.

The situation a decade ago in Timor-Leste brought home to us that in our region, it will be the two ANZAC nations who take the lead. If Australia and New Zealand do not have the will and the means to act, then we cannot expect that anyone else will do it for us. This has been played out on several occasions in the Pacific since then. Our nations have operated in common accord. In an operational sense, we have demonstrated effective integration of our defence forces.

There is surely scope to deepen our capabilities on an ANZAC basis. The Tongan ferry tragedy illustrates the point. In this case, both countries responded immediately. We would expect that. We both sent dive teams, who have worked well together. Again, no surprises.

What is interesting is that both teams are of very similar sizes and capabilities - and have similar limitations. There are very good reasons why this is the case - but it also raises the opportunity to take an ANZAC approach to develop a deeper level of capabilities of direct relevance to the Pacific. This would benefit both our nations, and the nations of the Pacific region.

In the Pacific, where Australia and New Zealand will be taking the lead - a concept for which Professor Hugh White has coined the phrase "together alone" - the concept of an ANZAC approach to certain specialisations for the common good seems very attractive. It is an area that I anticipate both our defence forces will develop further in the wake of our respective Reviews.

Our first area of defence responsibility, outside our own EEZ, is the maritime region of the Pacific. Our Review will be looking carefully at how well our capabilities are matched to the likely range of requirements in the area, and how they can best be developed further.

Fisheries surveillance of the Pacific Forum nations is surely one such opportunity to boost the economies of the Forum nations.

New Zealand may be smaller than Australia in terms of broader defence capability, but in the Pacific region we understand our responsibility to be a significant partner in ANZAC operations. It is a responsibility we do not take lightly.

My third point is the role that New Zealand plays in the wider region beyond the Pacific.

In common with Australia, we have become far more focused on the Asian region over the past two decades. Increasingly, our trade is with the region. Commercial linkages are growing rapidly. Immigration is altering our social perceptions. Asia has become the nexus of global economic activity.

This has brought with it a major influx of wealth to the region, and an increasingly international outlook from Asian countries. They are growing into the wider global responsibilities that nations share. This in turn is reflected in their approach to defence engagement.

New Zealand recognises this changing dynamic. We are optimistic that relationships across the region will continue to develop in a positive way - indeed it is in everyone's interest that they do so. We also realise that, as part of the ongoing confidence and security building, we have to participate not just with words, but with deeds. Being engaged means making a contribution that has value and is noticed.

This is one of the major challenges facing the Defence Review. Our current capability mix allows us to participate in regional security arrangements in a meaningful way. Our intention is to maintain an effective capability to continue to do so.

We need to develop capabilities to match our strategic interests. Beyond our region, military operations involve a wide range of capabilities from many coalition partners. New Zealand's choices in the international arena should be guided by our areas of niche expertise.

Both our nations are making a hugely valued commitment in Afghanistan, reflecting our particular expertise. We do so because both our citizens have been victims of terrorism.

New Zealand has just reviewed its commitment to Afghanistan. We are deploying the SAS to Afghanistan. The work of our Provincial Reconstruction Team in Bamiyan Province will be more focused on development and governance objectives. It is our objective that the Afghanistan National Police take responsibility for security.

Given the demands of our region we have built particular expertise around surveillance, reconnaissance and intelligence. The P3 Orions are among the most sophisticated capability the NZDF operates. In fact, New Zealand is the smallest country that has such a capability. The SAS also has these unique skills, at a world-class level.

New Zealand is already engaged in Asia and it is expected that we will make an effective contribution. Our participation in FPDA exercises illustrates an effective use of our core skills. For example, the participation of a Royal New Zealand Navy frigate and a replenishment ship in a naval exercise is both a significant contribution to the exercise itself and demonstrates that New Zealand can add real capability to combined operations in the region.  

Our Naval and maritime surveillance capabilities have a high profile internationally, and fit with our surveillance, reconnaissance and intelligence expertise.

The basic test for a Defence Force as small as New Zealand's is that it should essentially consist of those capabilities that are likely to be used, whether for peacekeeping or for combat, rather than capabilities that are unlikely to be used except in the most extreme case. 

It follows that New Zealand's ability to contribute to global coalition operations comes as a "spinoff" from the essential capabilities we need to maintain closer to home. We will be ensuring that whatever the demands are that are made on our forces they will be well trained and interoperable with our likely partners - particularly our ANZAC partner, Australia.

I should also note that in developing our defence forces we have opportunities to build industrial capability. The ANZAC ship project was a stellar example. Over the next few years we need to ensure that companies on both sides of the Tasman continue to have the scope to participate in the full range of defence contracts.

The ANZAC relationship was formed at the very birth of our nations. We each bring particular qualities to the contemporary ANZAC partnership. It is the fusion of each country's particular strengths that will further build and sustain the contemporary ANZAC partnership.

By building on these strengths and working together we can ensure that the sum of the parts is greater than the individual parts themselves. The enduring relationship of the ANZAC partners is set for a new level of development. We will bring new strength both for ourselves and for our wider partners, particularly in the Asia-Pacific region.