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.