Ministry of Defence and NZ
Defence Force:
Project Protector
September
2008 – February 2010
Background
In July 2004, the Crown entered into a contract
with (now) BAE Systems for the construction and delivery of
seven new vessels for the Royal New Zealand Navy: a Multi-Role
Vessel (MRV), two Offshore Patrol Vessels (OPVs), and four
Inshore Patrol Vessels (IPVs).
These vessels are to conduct tasks for and
with New Zealand Customs, the Department of Conservation,
Ministry of Agriculture and Forestry, Ministry of Foreign
Affairs and Trade, Ministry of Fisheries, Maritime Safety
Authority of New Zealand & New Zealand Police.
The MRV was delivered in May 2007. The four
IPVs were delivered in the first half 2009. The two OPVs were
delivered in 2010.
Tony's role
A range of warranty and defect issues have
arisen across the Protector fleet. In September 2008, Tony
was engaged by the Secretary of Defence to assist the Crown
in resolving these various contractual issues with BAE Systems.
Tony’s role was to:
Review the key issues in dispute
Evaluate the Crown’s strategic and
tactical options
Help develop an overall strategy
Assist the Crown in implementing the strategy,
including negotiations with BAE Systems
Serve as member of the Crown’s
team in a formal mediation between BAE Systems and the Crown,
with retired High Court Judge, Hon Robert Fisher QC, acting
as mediator
This involved working closely with:
The Crown’s legal advisers, including
Crown Law, Bell Gully, David Goddard QC, and NZDF lawyers;
Senior management within the Ministry
of Defence and NZ Defence Force, including the Vice Chief
of Defence Force, Deputy Chief of Navy, and Deputy Secretary
(Acquisitions)
Other agencies, including the Department
of the Prime Minister and Cabinet (DPMC), Treasury, and
State Services Commission (SSC).
Reporting
Tony reported to the Secretary of Defence
(John McKinnon), in conjunction with the Chief of Defence
Force and the Chief of Navy.
Tony also accompanied the Secretary
of Defence in updating the Chief Executives to DPMC, SSC and
Treasury.
Outcome
The Crown achieved a positive outcome through
the mediation process, and has concluded a constructive settlement
with BAE
