NZ Defence Force deployment to Iraq, likely to be below budget on cheaper living costs

New Zealand's two-year military deployment to Iraq to train security forces fighting Islamic State is likely to come in below budget because living costs at Camp Taji are tracking at about half the estimated amount.

More than 100 New Zealand troops, including trainers and those providing security for the trainers, have been deployed to Camp Taji, near the capital city of Baghdad as part of the Building Partner Capacity training mission with Australia. A review of the first nine months of the mission has concluded it is performing well and achieving the objectives signed off by the cabinet in February 2015, according to papers released by Defence Minister Gerry Brownlee.

The cabinet had approved spending of $65 million for the deployment but the actual cost is expected to be about $57 million, or $8 million under budget. The cabinet paper says the savings were mainly due to cheaper-than-expected service costs for the troops at the base of about $US160 person per day, compared with an original estimate of $US300.

"Services are those provided by local contractors to house NZDF personnel at Camp Taji and include things such as electricity, food, accommodation, and facilities," a Ministry of Defence spokesman said.

Parts of the cabinet paper were redacted including a section that refers to  challenges with the mission and details of New Zealand troops engaged in activities outside of Camp Taji. A section of the "extremely challenging" political and security environment in Iraq was also blacked out.

The paper recommends the cabinet note the mission is performing well and will continue with its full mandate through until May 2017. Also to be noted is that the operational threat to Defence Force personnel remains high and that despite some battlefield losses, Isis and its affiliate groups "remain a real and significant threat to international peace and security including to New Zealand and New Zealand interests."

The paper also notes Mr Brownlee has received a letter from USA Secretary of Defense Ash Carter requesting that New Zealand expands its role in the coalition battle against the militants.

(BusinessDesk)