The HMNZS Manawanui ran aground on a reef off the Samoan island of Upolu on 5 October last year, before catching fire and sinking, however all 75 passengers and crew were rescued. Photo: New Zealand Defence Force
A $77 million write-off of the Navy ship Manawanui, which sunk off Samoa last October, is contained in the Budget papers on defence.
These also show $32m in costs booked in for 2024-25, for the clean-up, salvage, and "other remedial activities" at the shipwreck.
The dive-and-seafloor-survey ship, which the navy had had for five years, was insured for salvaging operations but not replacement.
It is not being replaced, and the Budget noted that its loss would reduce "warfare support" by the NZDF in coastal zones.
The decrease in the expected level of "readiness" for this type of support, which is set by the government, consequently has dropped from 98 percent to 85 percent: "The decrease ... is a result of the loss of the HMNZS Manawanui," said the defence vote.
Before it sank, the ship had cleared unexploded bombs in Tuvalu and surveyed for them in Fiji, Niue and Vanuatu, as well as giving humanitarian support during the tropical cyclone season.
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That aid gap now might have to be plugged by the ship Canterbury, defence papers said.
Budget 2025, under the sub-head "significant trends", also stated the sinking featured as the reason for an increase in output expenses in 2024-25.
A military-led inquiry in April found a dozen weaknesses aboard and onshore contributed to the sinking, including around training, leadership and preparation, and that the ship was not up to the task.
Over 60 people were on the ground in Samoa within days to clean up, with another 30 in reserve, in October 2024.
Salvors took off fuel, though 600,000 litres went unaccounted for - with some of that burned off in a fire after it hit the reef. They then removed other debris, finishing up in early May.
An independent report about the wreck by pollution experts has been underway, and Samoan authorities have also got testing done since October.
RNZ in March requested the release of environmental test reports, but the NZDF said in May: "Unfortunately your request of 21 March 2025 was missed", and it would now consider it
Previously, the Manawanui was held up by defence as a lesson of what to do.
It had "demonstrated that the delivery of defence capabilities can be undertaken in a fiscally responsible manner, while also enhancing those capabilities to better meet the demands of the future", the 2019 Defence Capability Plan (DCP) said.
The 2025 DCP forecast that the "future fleet" would need dive and survey support, but that this would be by using "other platforms" and would have to wait as the immediate focus was on sea drones.
However, Budget 2025 does not list sea drones among the 15 DCP projects it would fund.
All up, the Budget puts $2.7 billion of capital and $563m operating funding for these 15 "priority" projects; the amounts were mostly blanked out for "commercial" reasons (Defence now must negotiate to actually acquire the various systems, in an international arms market where demand is spiralling as many countries increase military spending).
While sea drones are missing in Budget 2025, aerial drones feature, along with communications and anti-tank missile upgrades, plus the pre-announced largest capital outlay of $2 billion-plus to replace naval helicopters.
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A relatively tiny $30m is going on small-scale projects, including to do with space.
Fleet replacement would have to wait till the next phase, the DCP said in April.
"This will allow for the adoption of new and emerging technology to achieve transformational change for the Navy, including across training, trades, and infrastructure."
Budget 2025 also set aside large sums for more naval and other operations, plus training - $150m a year - and to maintain the three services' capabilities: $39m for the navy, $50m for the army and $60m for the air force.
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