Funding levels

The Implementation Proposition is the Government’s proposition on how to implement the armed forces long-term plan. The total cost for the restructuring period 2002-2005 as decided last summer is estimated at NOK 123.6 billion. The Government proposes changes that in total imply a cut in expenditures of NOK 5.6 billion. This means that the total defence expenses for 2002-2005 will be NOK 118.0 billion. On average, the annual need for allocations will be NOK 29.5 billion, including participation in international peace operations.

For 2002 the Government proposes to increase the existing defence budget by NOK 1 billion to 28.7 billion. This is an increase of 3.8 per cent. Also, measures have been taken to improve the armed forces' capability to prevent, fight and limit the effects of terrorism. The restructuring of the armed forces ensures that the forces will have the required increased flexibility and adaptability. In 2002 it is likely that the Norwegian allocation to anti-terror measures and the Norwegian effort in Afghanistan will reach NOK 1 billion.

The Government aims at a gradual increase in the annual budgets. In 2005 the Government prepares for an allocation of NOK 30.9 billion.

Balancing the defence structure and the allocations

The Government strongly emphasises the need to balance the tasks and structure of the armed forces with the funds provided.

The Government aims at a modern and flexible defence. Further, the forces must be in accordance with the course set by NATO, requiring special rapid reaction units. A larger part of the funding shall cover investments and a smaller share shall be spent on operations. The restructuring process requires changes in today’s defence structure, this also with the aim to reduce costs for operation and maintenance.

Compared to the Norwegian Parliament's decisions on 14 June 2001 the Government main proposals on adjusting in the defence structure are the following:

• The Army: The Army’s share of the Armed Forces Task Force for International Operations will be an integral part of 12 Brigade and will replace parts of the today’s 12 Brigade. Haslemoen Garrison will be closed down. There planned establishment of 20 new independent companies for mobilisation will not take place because the Home Guard will now have responsibility for territorial defence.
• The Home Guard: The mobilised manpower of 83,000 soldiers in the Home Guard will be maintained, but the older personnel groups of the Home Guard will be trained less frequently. New investment amounting to NOK 775 million will be made during the restructuring period in equipment, buildings and installations. At the same time, the Home Guard will receive equipment, buildings and installations totalling NOK 1 billion from other parts of the armed forces.
• The Navy: Three landing crafts will be phased out and disposed of. The coastal radar chain in Southern Norway will not be upgraded. A maritime surface surveillance centre will not be established. Norway discontinues its participation in the submarine project Viking. The will be no new and expanded frigate dock at Haakonsvern Naval Base outside Bergen. This gives room for investing in fast patrol boats, Skjold, frigates and new helicopters.
• The Air Force: There will be a reduced cost estimate concerning the procurement of force protection and support units.

During the restructuring period some temporary measures will ensure considerable savings:

• Enrolment of conscripts will be reduced by up to 10 per cent of the age group.
• Investments in 5 Brigade will be limited to personal gear.

The Proposition presents funding and time frameworks for several projects:

• The training and live fire area in Central Norway is proposed established at a cost limit just below NOK 1.9 billion.
• Six new fast patrol boats of the Skjold class will be procured as planned. The production will be somewhat prolonged compared to original plans, due to delays at the shipbuilding yard. The vessels are to enter service in the period from 2005.

Additional information

The Implementation Proposition in Norwegian and an abridged version, is available at the Ministry of Defence home pages: www.fd.dep.no. An abridged version in English will be available next week.

Point of contact, Ministry of Defence: Rolf Kjos, 23 09 21 11.