26 Nov 2025

Government allocates $2.5b to keep the lights on at defence facilities

12:08 pm on 26 November 2025
Associate Minister of Defence Hon Chris Penk makes a defence infrastructure announcement at Devonport Naval Base - 26 November 2025

Associate Defence Minister Chris Penk at the briefing at the Devonport Naval Base. Photo: NZ Herald/Annaleise Shortland

The government says defence facilities would have to close if money isn't put into upgrading them.

It's unveiled a long-term plan for modernising Defence Force infrastructure that it says will boost resilience and create building and construction jobs.

The plan sets out how to spend $2.5 billion set aside in the Defence Capability Plan.

Associate Defence Minister Chris Penk has released it at the Devonport Naval Base in Auckland on Wednesday morning.

"Sadly, our infrastructure is not equipped to realise this vision. Much of it is aged, fragile and prone to failure, with more than 70 percent of New Zealand Defence Force infrastructure now having less than 20 years of useful life remaining," he said.

"Failure to act will result in facility closures, degraded training that undermines operational capability, and increased risks to personnel. Regenerating the estate is essential to maintain a high level of operational readiness."

Simon Watts - defence infrastructure announcement at Devonport Naval Base - 26 November 2025

Revenue Minister Simon Watts also spoke at the announcement. Photo: NZ Herald/Annaleise Shortland

As part of the plans, Cabinet has given a green light to a future programme for the Devonport base.

"Devonport Naval Base is vital to the Defence Force as New Zealand's only naval port, yet the current infrastructure cannot fully meet the Navy's operational, training and support requirements," he said.

Penk said it addresses historic under investment, with big new projects for accommodation, training facilities and other improvements.

He said the base is vital but at the moment cannot fully meet requirements.

Ōhakea Air Base will also see infrastructure upgrades.

Devonport Naval Base is in line for big upgrades.

Devonport Naval Base Photo: RNZ / Kim Baker Wilson

'Social licence' exists for spending

Penk said both sides of Parliament had under-invested in Defence infrastructure in the past.

He also believed there would be more public acceptance now for big upgrades and there was "a long list" of things that needed to be done.

"So the context, I think, is now understood and appreciated by New Zealanders, which is that the geopolitics and the importance of securing peace in our region, which goes not only to obvious war fighting ability for [the] Defence Force, but also ocean protection, fisheries, environmental protection, search and rescue, humanitarian assistance, disaster relief, all speak to the importance of the Defence Force, including the Navy, for a maritime nation," he said.

"And so I think there's social licence now to make the investment that may not have been present in previous generations."

He said the Navy base was one place where the upgrades needed to happen.

"Here at Devonport, we've got the reality of wharves literally falling into the harbour, we've got the sea level rise associated with, or rather in the location of the sea safety training squadron, which is impacting the ability of sailors and officers to be ready to go to sea," Penk said.

"We've had hangar doors at one of the air force bases not being able to open such that an operational task was not being able to be completed."

Part of the historic underfunding in the Devonport Naval Base was due to earlier uncertainty around its future and location, Penk said.

When asked if the current state of infrastructure was embarrassing, Penk said he would be embarrassed if it was not sorted out now that there was funding and social licence.

Deputy Chief of Navy Commodore Karl Woodhead said sailors already lived in rough conditions at sea and were resilient, but there was an expectation of reasonable accommodation once home.

He said the current state of infrastructure had been a complicating factor in Defence Force operations.

Commodore Woodhead said one of the spending's biggest benefits would be the morale boost it would bring, and it showed the Defence Force was a fighting force and not an embarrassment.

What's covered by the Defence Estate Portfolio Plan

  • Defence Estate Regeneration Programme (DERP) - Renewing ageing, service-critical infrastructure using depreciation reserves across camps and bases, training areas and regional facilities.
  • Horizontal Infrastructure Workstream - Upgrading essential services like water, power, ICT, and roads across Defence sites.
  • Homes for Families Programme - Delivering modern housing for Defence families at multiple locations.
  • Ōhakea Infrastructure Programme - Supporting Air Force capability through targeted infrastructure upgrades at RNZAF Base Ōhakea.
  • Accommodation Messing and Dining Modernisation Programme - Upgrading barracks, messing and dining facilities to improve living standards and support retention.

Just what's wrong with Defence Force properties?

The Defence Estate Portfolio Plan says some tasks have, and would continue to be, compromised to the point of failure by inadquate or poorly performing infrastructure.

  • Five barrack blocks (90 beds) at Papakura Military Camp closed because roof leaks caused black mould, with personnel relocating to temporary accommodation and portacom solutions. This directly impacted efficient operational delivery.
  • The Sea Safety Training School (SSTS) at Devonport Naval Base is out of commission up to 6 weeks a year because of sea water inundation. Sailors cannot go to sea unless they are certified through the facility, which equates to a potential 20 percent loss of crew.
  • Increasingly frequent water main bursts at Devonport Naval Base reduce firefighting capacity and restrict water supply to ships.
  • Water supply and storage is severely limited at both Waiouru and Woodbourne. Loss of supply means that operations and training will need to stop.
  • The poor condition of training, education, and accommodation facilities makes it difficult to attract, retain, and train the people (including those from strategic partner nations) needed to deliver directed Defence outputs.
  • An operational task was cancelled because hangar doors malfunctioned at Base Auckland (Whenuapai), trapping the aircraft inside.

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