Defence Budget 2001
Historical archive
Published under: Stoltenberg's 1st Government
Publisher: Forsvarsdepartementet
Press release | Date: 04/10/2000 | Last updated: 21/10/2006
Press release
No.: 063/2000
Date: 4 October 2000
Defence budget 2001
The Government proposes to allocate NOK 27.23 billion for Defence in the year 2001. Of this total, NOK 1.92 billion is earmarked for international operations. This sum includes supplementary allocations amounting to NOK 1.85 billion. The ordinary defence budget, excluding international operations, thus amounts to NOK 25.37 billion of which NOK 17.38 billion is allocated for operating costs and NOK 7.91 billion for investment. This represents an increase of 1.2 % compared with the budget for the year 2000, mainly attributable to additional funding earmarked for the procurement of new frigates.
One of the main tasks facing the Defence Establishment in the coming years will be to achieve a balance both between the tasks assigned to the Armed Forces and the available resources and between the investment in new materiel and operating cost. To achieve this, the Armed Forces will have to undertake comprehensive restructuring.
The Defence Budget for 2001 is based on the main priority
guidelines for the activities and development of Norway’s Defence
for the period 1999-2002, as set out in the White Paper endorsed by
the Storting
. Since that time, many of the circumstances affecting the
activities of the Armed Forces have changed. The limited funding
available for defence has made it imperative to review Norway’s
defence aims and resources and in the course of this review it has
become evident that significant reductions will need to be made in
the present organisational structures. The Government will present
its views regarding the future structure of Norwegian Defence in a
Parliamentary bill early in 2001, for the period 2002-2005. This
will build on the recommendations of the cross-party Defence Policy
Commission and those of the Norwegian Chief of Defence’s Defence
Study 2000. Both final reports were submitted in June 2000. Most of
the restructuring measures will be implemented from 2002. As far as
Norway’s overall defence and security policy aims allow, the
Government will endeavour to keep the adverse effects of
restructuring on the activities of the Armed Forces to a
minimum.
Priority units and tasks
The Defence Budget for 2001 gives highest priority,
where equipment and training are concerned, to units designated to
take part in international operations, Border Guard units and H M
the King’s Guards. Next in order of priority are the Navy’s
warships, combat aircraft and 6 Division. While the maritime tasks
of the Coast Guard will also be given priority, the resource
situation dictates that other Norwegian naval presence at sea will
have to be reduced. The activities of the Search and Rescue (SAR)
helicopter service will be carried forward at the same level as in
the year 2000. The most important investments in 2001 will be new
frigates and associated projects, IT infrastructure and projects
considered essential to Norwegian participation in international
operations. The Defence Establishment will in future make more use
of unified management to enhance the efficiency of the peacetime
organisation. This will involve a number of common IT systems and
management functions. The various logistics departments will also
be merged to form the Defence Logistics Organisation (FLO).
The services
The Army’s war structure established in 1999 will
remain essentially unchanged in 2001. The Army’s principal
contribution to defence against invasion consists of 6 Division
with three brigades and divisional support units. The Division has
not been equipped as quickly or as comprehensively as had been
planned. According to the Chief of Defence’s recent Defence Study
2000 (FS 2000), there is insufficient funding available to permit
investment in materiel for more than two brigades for the Army all
together. The structure of 6 Division and the level of ambition for
its capability must therefore be reassessed. It is planned to
procure second-hand Leopard 2A4 tanks in 2000. Further, the level
of defence funding suggests that the Home Guard manpower target of
83,000 is unrealistic if the necessary annual training is to be
provided.
New frigates will represent a substantial strengthening of the Navy’s seagoing capability. The Coastal Artillery will undergo further development to give increased mobility and flexibility. Consideration is also being given to the procurement of maritime helicopters and the preparation of their future base structure. There is also a need for a reassessment of the function of the Missile Torpedo Boat (MTB) forces and their place in the new defence organisation. The Coast Guard has been assigned new tasks as a result of Norway joining the North East Atlantic Fisheries Commission (NEAFC) and the Schengen Agreement.
Combat aircrafts, together with the air command and control system, the main air stations, deployment bases and air defence systems, are the most important elements of our area air defence capability. Efforts to improve the mobility and flexibility of all operational units are continuing. It is proposed to phase out three DHC-6/Twin Otter light transport aircraft and to disband 719 Squadron stationed at Main Air Station Bodø. Further changes will be implemented in the peacetime organisation of the Air Force. Activities will be concentrated at the fewest possible air stations.
Military service
The principle of universal military service remains as one of
the most important cornerstones of our Defence. Existing patterns
of service with 12 months and 6 months periods of initial service
will continue.
International operations
High priority will be given to Norway’s contribution to KFOR
in 2001. From April to October 2001, the NATO-headquarters in
Norway and Denmark will jointly take the lead of the
KFOR-headquarters in Kosovo. The present Commander Joint Command
North, who is also Norwegian Commander Armed Forces South will
assume command. This assignment will constitute a major operational
challenge for our military personnel, while at the same time
significantly increase skills with regard to international
operations. Also, this mission will represent a major Norwegian
contribution to European crisis management.
The government has decided to finance part of this assignment within the ordinary defence budget. The principle regarding additional funding for international operations will still be applicable. The effort in Kosovo does, however, limit the possibility of major Norwegian contributions to new UN missions, unless contributions to exisiting operations are terminated. Given the present uncertainty as to the specific capacities Norway shall provide for KFOR, and to provide for suitable allied co-operation, the budget proposes that the Government be empowered to make military and budgetary decisions necessary to keep within the overall appropriations.