They [National] are in coalition with with a far-right, pro NZDF party in ACT who've been strongly in favour of reinsatating the MB-339C Aermacchi (half of the airframes) to its pre-1999 role of advanced training* to 'bridge the cap' so to speak between ab inito and front line types. The lease on the KingAirs runs out next year.
*Prior to 1999, all RNZAF pilots recieved some training on the Aermacchi, a proven system which produced some outstanding pilots. This was given the chop following the mid-1990s economic recession. Following the introduction of the Hercules and Orion of glass cockpits in 2002(?) [believe it or not], some pilots reported experiencing difficulties in coping with the transition from KingAir to P3K-2/C130H/B757.
In "greater priorities", Mr. Key maybe referring to defense aquisitions such as Projetct Projector - basically a Multi-Role Vessel in addition to patrol craft to frighten those dastardly Tuna pirates. Christ knows how the Navy proposes to man 'em given the current recruitment/retention issues afflicting the dark blue.
http://www.navy.mil.nz/visit-the-fle...ect-protector/