WELLINGTON, May 4, 2025 (BSS/AFP) - New Zealand announced on Sunday a US$1.2 billion plan to replace its ageing navy helicopters, part of a major defence overhaul in response to rising "global tensions".

Defence Minister Judith Collins said the funding was the first tranche of the government's renewed commitment to ramp up defence spending.

A US$5 billion plan for new spending over 10 years unveiled last month also includes investment into missiles, cyber security and drones.

It will lift New Zealand's defence spending from one percent of GDP to more than two percent.

Collins said the new helicopters would boast improved defensive and offensive capability, along with a greater survey range.

She also announced US$570 million over four years towards defence force deployments, training and infrastructure.

"Global tensions are increasing rapidly, and defence personnel need the right equipment and conditions to do their jobs," Collins said in a statement.

"As a maritime nation we are prioritising naval capability.

"The new helicopters will be able to go further and carry larger loads, including weapons, personnel and equipment -- all of which is critical for defence to protect New Zealand and New Zealanders."

A spokesperson for Collins said a decision about what type of aircraft will replace the existing Seasprite helicopters will be made after spending is approved by the cabinet.