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Army, navy and air force bases may be sold to the private sector and leased back under one of the options considered by several reviews into the New Zealand Defence Force.
Associate Defence Minister Heather Roy said both National and Act supported public-private partnerships and it was "one of a range of options" being looked at.
"The Defence Force doesn't necessarily need to own everything. It could work in a partnership where somebody else owns the land or owns the buildings and they lease it back."
The force's headquarters Defence House was a good example of a public-private partnership that was working well, Mrs Roy said.
Such partnerships will be looked at as part of the White Paper Review, the terms of reference of which were announced today.
The review, the first since a major inquiry by the Defence and Trade select committee in 1999, will take a broad look at all issues affecting the Defence Force.
Issues considered by the review will be the sale of the light armoured vehicles (LAVs), recruitment and retention, what to do with vehicles nearing the end of their lives and the Defence Force's relationship with its Australian counterpart.
Returning a combat strikeforce was not on the table, nor was changing plans for the upgrade of the Whenuapai airbase.
Defence Minister Wayne Mapp said there was no point having equipment sitting around if it was not being used.
Asked if that meant he would sell the LAVs he said he could not pre-empt the outcome of the review.
"My own philosophy is that, by and large, defence should have what they actually use and not have things they actually don't use."
By 2020 the C130 Hercules, P3 Orions and two ANZAC frigates will need to be replaced, Dr Mapp said.
"We're going to look carefully at how to deal with those things."
He said it was not a matter of spending more money on replacing the machines but spending money differently.
Mrs Roy will oversee three companion studies into the Defence Force industry and areas for economic improvement, the role of the Defence Force in youth programmes and voluntary national service.
Boot camps, also known as Fresh Start Programme, were one youth programme but the cadetforce would also be looked at.
Mrs Roy said a lot of research had already been done into voluntary national service which could be run as a gap year, between school and university, or could involve incentives such as training, study or student loan deductions.
Australia has a good gap year programme they "will be paying close attention too", she said.
Voluntary National Service would help "boost" recruitment and retention.
Dr Mapp said the review was well overdue and would look at a range of options for the "best future configuration".
The review will consider what New Zealand expects of its Defence Force over the next decade or so.
"It will consider how well the current capabilities line up with what we actually do and what we might expect to do in the future."
He said major problems in procurement were well highlighted and much of the core infrastructure was also "quite run down" and coming to the end of their life.
"This review will take a fresh look.
"We must also carefully manage on finite and limited resources."
Spending on Defence has averaged one percent of gross domestic product over the last 15 years.
Dr Mapp said there was not likely to be a "significant increase" but there may be a small rise.
Secretary of defence John McKinnon will lead the review.
Retiring secretary of foreign affairs and trade Simon Murdoch, Ernst & Young chief executive Rob McLeod and comptroller and chief executive of New Zealand Customs Service Martyn Dunne will make up the independent Ministerial Advisory Panel.
A discussion document will be released in May, followed by a period of consultation. The White Paper will be released on March 30 next year.
Associate Defence Minister Heather Roy said both National and Act supported public-private partnerships and it was "one of a range of options" being looked at.
"The Defence Force doesn't necessarily need to own everything. It could work in a partnership where somebody else owns the land or owns the buildings and they lease it back."
The force's headquarters Defence House was a good example of a public-private partnership that was working well, Mrs Roy said.
Such partnerships will be looked at as part of the White Paper Review, the terms of reference of which were announced today.
The review, the first since a major inquiry by the Defence and Trade select committee in 1999, will take a broad look at all issues affecting the Defence Force.
Issues considered by the review will be the sale of the light armoured vehicles (LAVs), recruitment and retention, what to do with vehicles nearing the end of their lives and the Defence Force's relationship with its Australian counterpart.
Returning a combat strikeforce was not on the table, nor was changing plans for the upgrade of the Whenuapai airbase.
Defence Minister Wayne Mapp said there was no point having equipment sitting around if it was not being used.
Asked if that meant he would sell the LAVs he said he could not pre-empt the outcome of the review.
"My own philosophy is that, by and large, defence should have what they actually use and not have things they actually don't use."
By 2020 the C130 Hercules, P3 Orions and two ANZAC frigates will need to be replaced, Dr Mapp said.
"We're going to look carefully at how to deal with those things."
He said it was not a matter of spending more money on replacing the machines but spending money differently.
Mrs Roy will oversee three companion studies into the Defence Force industry and areas for economic improvement, the role of the Defence Force in youth programmes and voluntary national service.
Boot camps, also known as Fresh Start Programme, were one youth programme but the cadetforce would also be looked at.
Mrs Roy said a lot of research had already been done into voluntary national service which could be run as a gap year, between school and university, or could involve incentives such as training, study or student loan deductions.
Australia has a good gap year programme they "will be paying close attention too", she said.
Voluntary National Service would help "boost" recruitment and retention.
Dr Mapp said the review was well overdue and would look at a range of options for the "best future configuration".
The review will consider what New Zealand expects of its Defence Force over the next decade or so.
"It will consider how well the current capabilities line up with what we actually do and what we might expect to do in the future."
He said major problems in procurement were well highlighted and much of the core infrastructure was also "quite run down" and coming to the end of their life.
"This review will take a fresh look.
"We must also carefully manage on finite and limited resources."
Spending on Defence has averaged one percent of gross domestic product over the last 15 years.
Dr Mapp said there was not likely to be a "significant increase" but there may be a small rise.
Secretary of defence John McKinnon will lead the review.
Retiring secretary of foreign affairs and trade Simon Murdoch, Ernst & Young chief executive Rob McLeod and comptroller and chief executive of New Zealand Customs Service Martyn Dunne will make up the independent Ministerial Advisory Panel.
A discussion document will be released in May, followed by a period of consultation. The White Paper will be released on March 30 next year.
