Historical archive

Budget level remains unchanged while uncertainty surrounds peace operations

Historical archive

Published under: Jagland's Government

Publisher: Forsvarsdepartementet

Press Release

Nr. 046/97
13 October 1997

The Defence Budget:

Budget level remains unchanged while uncertainty surrounds peace operations

The Government’s Defence Budget proposals amount this year to NOK 23.841 billion which represents no change in real terms compared with last year. The budget for 1998 thus follows the agreed path towards the long-term development of Norway’s Armed Forces. A temporary increase of 0.3% in real terms is, however, necessary in the budget for operations in order to relieve the pressure on the funds available for the restructuring process.

The Government considers that Norway’s military involvement abroad must be seen as an integral part of Norwegian security and defence policy. For the first half year, however, financial provision has only been made for the three largest peace operations in which Norway is participating (a total of NOK 561 million): namely Bosnia (SFOR), Macedonia (UNPREDEP) and Lebanon (UNIFIL). In the case of SFOR this is bound up with the expiry of the UN mandate. Continuation of Norway’s involvement in UNIFIL beyond the summer of 1998 is currently the subject of discussions with the UN.

The security situation in Europe will continue to call for international cooperation on a broad front in order to resolve current conflicts and to prevent new ones from arising. The Government will therefore continue its policy of active involvement in order to achieve these aims in concert with other nations.

Collaboration within NATO is currently focused on internal reforms, enlargement negotiations and a policy of wider collaboration with Russia and other partner countries. 1998 will be an important year from the point of view of the follow-up and implementation of the many decisions reached during the summit meeting in July 1997. A central objective for Norway will be to participate in, and to influence, this work to the greatest possible extent. We must be willing to bear our share of the costs and obligations while, at the same time, give priority to those aspects which are of greatest significance to our own national security.

Norway attaches great importance to the further development of defence related cooperation with Russia, particularly with regard to defence related environmental matters. In parallel with this policy, however, our defence planning must take due account of the considerable strength of the Russian forces deployed in the northern region.

In 1998 Norway will take part in two new collaborative projects with the Baltic states. A total of NOK 10.4 million has been set aside as the Norwegian contribution towards the cost of establishing a joint Baltic air surveillance system and a joint Baltic naval squadron.

The shape and priority of the Norwegian Armed Forces is closely linked to the interests and objectives of our national security policy. The Defence Organisation is one of the most important instruments of security policy that we possess and it must be capable of discharging a wide range of tasks in peacetime as well as in time of crisis or war. This includes the capability of taking part in international peace operations. A credible defence capability will also make an important contribution towards ensuring the continuing stability in this region of Europe.

With the publication of the next Long-Term Report on the Activities and Development of the Norwegian Defence Forces, the Government will submit to the Storting [Parliament] a fuller and more far-reaching assessment of the problems and challenges that we face in the field of security and defence policy.

Goals and means

Even though it has been necessary to adjust the balance between operating costs and investment, it remains a clear aim that the tempo of the restructuring process should be maintained at a level which permits increased investment in materiel while still allowing operations to remain at a justifiable level.

The Government proposes to devote NOK 5.954 billion to investment in materiel in 1998. That is an increase in real terms of NOK 328 million, or 6.0%, compared with 1997. This is somewhat below the level set out as an aim in the current Long-Term Plan but it does not alter the intention to maintain an invasion defence capability in one part of the country. As mentioned in last year’s Budget, however, the next Long-Term Report on the Activities and Development of Norway’s Defence Forces (which will form the basis for decisions to be taken over the period 1999-2002) will address the question of whether there is a need to make any adjustments in the current political guidelines.

Investment in materiel

It is primarily the Norwegian Army that is planning to place most of the major contracts in 1998; both in terms of number and value. These include armoured vehicles for mine clearance, night vision equipment and a tactical training system. Two of the largest contracts planned for the Norwegian Air Force relate to new command and control systems and electronic counter-countermeasures (ECCM) equipment for the Air Force’s F-16 fighters. Only relatively minor contracts are planned for the Navy in 1998.

Two new materiel investment projects are being submitted to the Storting for special approval in this budget. The Army’s “Tactical Training System” project covers the procurement, on the one hand, of materiel for a tactical training centre for units up to company or squadron level and, on the other hand, simulator equipment for all infantry and cavalry training centres. The new tactical training centre is planned to become operational in 2001.

The Air Force’s “F-16 EK” project covers the procurement of ECCM equipment for the F-16 fighters. This will improve the survivability of these aircraft in a hostile environment. The Air Force is collaborating with other F-16 users such as Denmark, the Netherlands and the United States.

Building and construction projects

Excluding the relocation of Armed Forces resources at Gardermoen, the sum of NOK 1.087 billion has been allocated for nationally financed building and construction work. This represents an increase in real terms of 7.2% compared with 1997. There is, however, a relatively large decrease in the NATO financed investment so that the value of building and construction work as a whole shows a reduction of 6.8% in real terms. The relocation of Armed Forces resources at Gardermoen as a whole will be nearing completion in 1997. Some minor works will be completed in 1998 as will the Norwegian Armed Forces Museum’s aircraft collection at Gardermoen. The Budget makes provision for a series of environmental improvement measures.

Operations and maintenance

By year 2002, the Ministry of Defence aims to bring down the cost of operating and maintaining its properties, buildings and installations to a level substantially below the corresponding 1992 level. The budget proposals for 1998 allow for maintaining the technical and functional standards of all properties, buildings and installations but where properties buildings or installations are due for disposal, operating and maintenance funding will be limited to the minimum strictly necessary.

Personnel and training

The Armed Forces have in the past lacked a comprehensive strategic plan embracing both civilian and military personnel. During 1998 measures will be instituted to bring existing elements together to form such a strategic plan. In order to identify the consequences of an undesirable fall in numbers in certain personnel groups, and to propose measures to limit this fall, a committee (the Bjønnes II Committee) has been set up. This effort will result in a report to the Storting in late 1997/early 1998. As a short-term measure to limit the shortage of Armed Forces personnel in certain specialist areas, a limited amount of supplementary and/or conversion training will be provided. Based on the conclusions so far reached by the Bjønnes Committee, the Ministry has decided to allocate NOK 30 million for local negotiation within the Armed Forces and an additional NOK 0.6 million to be shared between the Norwegian Defence Research Establishment and the Norwegian Defence Construction Service.

Conscription and apprenticeships

The present pattern of military service will undergo adjustments during 1998. The Air Force will abandon the current 9 months period of service and introduce a 12 months period for all personnel categories. All those capable of serving will be called up. All personnel will be given basic military training which will be supplemented throughout the period of initial service. Measures to minimise subsequent unemployment will continue to be given high priority.

The Ministry of Defence will continue efforts to increase the intake of apprentices during 1998. The plan for 1998 envisages some 900 apprentices spread over all categories. This is an increase of more than 26% compared with the figure for 1997. During the course of 1997 an analysis of the Armed Forces’ increased emphasis on the recruiting of apprentices will be carried out. This analysis will look at the real economic effects of this scheme and will quantify the relative costs and benefits for the Armed Forces.

Environmental measures

It is one of our principal objectives that no lasting degradation of the environment should be caused by military activity. Even though the Armed Forces depend on exercising in order to be able to fulfil their main functions, it is unacceptable that exercise areas should suffer permanent damage.

Collaboration with the defence authorities of other countries can contribute to the reduction of environmental threats which could have implications for Norway, especially with regard to Russian military environmental problems involving both radioactive and conventional pollution. The trilateral AMEC Agreement on environmental collaboration in the Arctic concluded between the Defence Ministries of Norway, Russia and the United States forms an important element of defence related collaboration with Russia. The Ministry believes that it is essential that we should pass on the benefit of our experience in the field of environmental protection to countries in Eastern Europe which are in the process of improving this aspect of the armed forces.

The Army

It is proposed that the Norwegian Army’s operating budget should be reduced by NOK 47 million in real terms compared with 1997. The total operating budget will then amount to NOK 4.433 billion which corresponds to a reduction in real terms of 1 percent.

War structure

The task of implementing the new war structure has now been in progress for a number of years and will continue throughout 1998. The reorganisation of 6 Division will continue to be given priority and is to be largely completed by the year 2000. The key materiel is due to be in place by 2003 and the Division is to be operational by 2005. The planned materiel structure is to be in place by 2012. Plans for the new war posture will be ready in time to allow the practical reorganisation of units to begin during 1998. This reorganisation and restructuring will follow a special structural development plan which will take effect from 1 January 1998. 1998 will also see the establishment of the new Divisional Units including, among others, the Artillery Regiment and the Engineer Battalion. Against the background of the plans for the new war posture, the establishment of other units will begin as soon as the materiel is in place. During 1998 two road-mobile battalions will be established in western Norway.

Education and training

The call-up of personnel for initial military service will be concentrated in July and August. The number required on the first day of training in 1998 is 13,000, including 1,000 to undergo training as officer candidates. Approximately 80% of the intake will serve on a “continuous training” basis, that is to say the their entire period of initial military service will be spent with the units to which they will belong.

The autumn of 1998 will be the first year in which Reform ’94 trainees can undergo an integrated period of initial service based on a combined civilian/military syllabus which, in the second year, is shaped to meet the Army’s requirements. The Army will offer some 400 places for civilian and military apprentices and work to expand this scheme will continue.

Recruiting efforts will be intensified with the aim of ensuring that the Army’s schools will, at all levels, have the necessary number of applicants with the desired qualifications. The task of restructuring the training of technical officers at the level of “technical supervisor”, one of the outcomes of Reform 94, will be completed. Plans for the coordination of basic officer training with subsequent specialist training will also be prepared.

The Army’s specialist schools will be phased out and replaced by the Army College of Engineering which will provide courses designed to meet the needs of the Army Signals and Army Ordnance Corps.

A new framework for the Military Academy qualifying course will be developed and the Military Academy first-year syllabus will be revised. Measures will be put in hand to increase the proportion of women attending the Army’s schools in line with the Strategic Plan for Equal Rights in the Armed Forces.

The Navy

It is proposed that the Royal Norwegian Navy’s operating budget should be reduced by NOK 120 million in real terms compared with 1997. The total operating budget will then amount to NOK 2.675 billion which corresponds to a reduction in real terms of 4.4 percent.

War structure

The Escort Vessel project will be progressed, as will updating of the HAUK Class MTBs. The acquisition and deployment of three controllable minefields and the procurement and phasing in of Light Missile Craft for the Coast Artillery will also be continued in 1998. Former German forts and batteries which have no place in the new war structure will be phased out gradually. Updating of the coastal radar chain in South Norway is also planned. Mobile logistics units will be evaluated and further work will be done on the restructuring of the naval workshops organisation.

Education and training

With regard to the general training of officers in the Norwegian Navy, a revised organisation embracing the Officer Candidate School/Navy, the Officer Candidate School/Coast Artillery and the Royal Norwegian Naval Academy will be established. The Royal Norwegian Naval Academy will also assume responsibility for all subjects relating to the general competence of Naval officers such as management skills, logistics and organisation. Measures will be put in hand to ensure an increase in the number of women applicants and students at the Naval schools.

The Navy attaches importance to the possibilities offered by Reform ’94 and will continue to put these to good use. Since the reduction of the period of initial service in the Norwegian Navy from 15 months to 12 months was introduced, every effort has been made to increase the operation availability of naval vessels. By providing greater continuity and increased skill levels, Reform ’94 will contribute towards an increase in operational availability.

The Air Force

It is proposed that the Norwegian Air Force’s operating budget should be reduced by NOK 7 million in real terms compared with 1997. The total operating budget will then amount to NOK 3.348 billion which corresponds to a reduction in real terms of 0.2 percent.

War structure

A principal aim is to devote greater efforts to enhancing the mobility and flexibility of the Air Force’s operational units. The goal is to achieve more self-sufficient combat forces capable of sustaining operations with fewer and simpler base installations. In the future structure the support function will be integrated and deployed with the operational units. The new structure will also provide for efficient crisis management on a national basis and strengthen our ability to assist internationally. The structure will be better adapted to the principles of high-mobility warfare and will be a better match for NATO’s mobile concept.

Personnel

The increased funding devoted in 1996 and 1997 to basic officer training, and to further training for regular commissions, will be continued or slightly increased in 1998. This will depend on, among other things, how the trend of numbers leaving the Service develops and how effective the measures taken to retain serving officers prove to be. The Air Force would like to recruit to an increasing extent from the civilian colleges in order to gain a body of expertise rapidly. Plans directed specifically towards increasing the numbers re-engaging are in the course of preparation. As from 1998 the Air Force will approve the first individual career plans for regular officers. In common with the other Services, the Air Force will be implementing measures to attract more women entrants to the Air Force schools and to lay the foundations of a sound policy with regard to family matters.

Education and training

In 1998 training will again be given high priority in order to compensate for personnel leaving the Service, especially pilots and administrative and technical personnel. From 1998 onwards the Air Force will reintroduce a 12 months period of initial service for Air Defence Artillery personnel. This will provide better educational and training opportunities for the personnel concerned and allow for common training on the various air defence systems on a tri-Service basis.

The Home Guard

It is proposed that the Home Guard’s operating budget should be increased by NOK 19 million in real terms compared with 1997. The total operating budget will then amount to NOK 640 million which corresponds to an increase in real terms of 3 percent. The budget proposal means that the Home Guard will maintain its training at the planned level for 1997 since the Home Guard’s budget allocation was increased when the Budget was being considered by the Storting.

War structure

The Home Guard’s war organisation is to be matched to its operational requirements within the constraints of a total mobilisation strength of 83,000. The aim is to reach this force level by the year 2000. In addition to this figure, a further 7,000 volunteers and youth members may join the Home Guard. The overall upper limit for Home Guard manpower remains at 90,000. The mobilisation strength is made up of 14,000 officers and other ranks in North Norway and the remaining 69,000 officers and other ranks in South Norway. The selection of Home Guard personnel for North Norway will be given priority. The annual joint-service process for the selection of Home Guard personnel from the various branches of the Armed Forces is to continue.

The Coast Guard

The Coast Guard will continue its activities at the same level as in 1997. The Coast Guard’s activities include those performed by the Inner Coast Guard. The budget for the Search and Rescue (SAR) helicopter service includes funding to cover strengthening of the SAR service in the Oslofjord region.

Materiel procurement

The Coast Guard is to acquire a specially strengthened vessel, to be named CGV SVALBARD, for operations in ice. The vessel will be larger than the NORDKAPP Class and will be capable of operating in waters where there are difficult ice conditions. The vessel will be built with the capability to operate a helicopter. CGV SVALBARD is planned to become operational before the end of the year 2000. The overall cost of the project is NOK 465 million.

Education and training

A process of cross-training between the Coast Guard and the Navy enables optimum use to be made of service manpower in the execution of both peacetime and war missions. Improvements in training are to be introduced to provide a general competence in dealing with questions of Norwegian jurisdiction and to give Coast Guard personnel the necessary competence that will be needed now that Coast Guard duties are being extended to embrace tasks undertaken on behalf of other authorities in inner coastal waters. Special Coast Guard training, in the form of a national Long Course, has been instituted at KNM Tordenskjold at Haakonsvern. The first course is due to start in autumn 1997 and the course duration is one year.

The Search and Rescue Helicopter Service

It is proposed that the operating costs for the SAR helicopter service should be increased by NOK 20 million due to, among other things, the fact that funds have been allocated to enhance the operational readiness of the SAR helicopters operating in the Oslofjord region. Salary and pay costs will increase by NOK 17 million due partly to the measures being taken to encourage the retention of aircrew and the increased student intake intended to help restore the manpower resources.

The SAR helicopter service will maintain one helicopter at one hours notice for rescue and ambulance duties at each of the Air Bases at Banak, Bodø, Ørland, Sola and Vigra. At Vigra the readiness requirement is limited to 85% of the time.

Press contact:

Assistant Director General, Kirsti Skjerven, tel # 47 23 09 23 10 -90 84 97 52 (mob) - 96 60 09 35 (ps) Executive Senior Officer, Runar Todok, tel # 47 23 09 23 07 - 90 91 25 10 (mob) This page was last updated October 13 1997 by the editors