THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1957


Table of Contents

PREFACE

THIS is the sixty-second issue of the New Zealand Official Year-Book.

Included in this issue is a summary of the 1955 Revision of the Consumers' Price Index as Appendix (d). This is complementary to the Appendix “Retail Prices in New Zealand, with Special Reference to the Consumers' Price Index” in the 1947–49 Official Year-Book.

The illustrations in this issue have primary production as their main theme.

Subsection 5C on Mental Hospitals has been substantially revised, as also has Subsection 38F on Workers' Compensation. In Subsection 29B there is a new presentation of Sector Accounts. The system of industrial sector accounts is now complete and fully integrated, although to date it relates only to the year 1952–53. This represents a considerable advance in the techniques of social accounting. The sector accounts provide a static model of the whole economy wherein the various transactions can be illustrated in much finer detail than was previously possible.

My thanks are extended to all who assisted in the preparation, editing, and printing of the Year-Book.

G. E. WOOD,
Government Statistician.

Department of Statistics,
Wellington,
20 June 1957.

PUBLICATIONS OF THE NEW ZEALAND DEPARTMENT OF STATISTICS

(Obtainable from the Government Printer, Publications Branch, Wellington)

TitleLatest No.Date of IssuePrice Per Copy (Post Free)

* £2 10s. per annum (post free).

† Cyclostyled copies showing numbers with overseas War Service, enumerated in each county, borough, and town district at the 1951 Census, are available on application (no charge) from the Department.

NOTE.—This list is subject to revision from time to time.

 s.d.
Annual Report of the Department of Statistics (H. 39)1957June 195716
New Zealand Official Year-Book1957August 1957150
Pocket Digest of New Zealand Statistics1956May 195736
Annual Statistical Reports:
  Population, Migration, and Buildings Statistics1955–56March 195776
  Vital Statistics1955December 195676
  Justice Statistics1955May 195776
  Shipping and Other Transport Statistics1956August 195776
  External Trade Statistics, Report on and Analysis of1954July 1956136
  Farm Production Statistics (including Historical Appendix)1954–55July 1956116
  Industrial Production Statistics1954–55November 1956300
  Insurance Statistics1955May 195756
  Prices, Wages, and Labour Statistics1955February 1957106
  Industrial Accidents Statistics1955June 195796
  Income and Income Tax Statistics for the Income Year1953–54April 195786
  National Income and Sector Accounts1955–56October 195686
  Balance of Payments1955–56November 195656
Local Authorities Handbook of New Zealand1954–55April 1957150
Monthly Abstract of Statistics*  50
  Supplements:
    Retail Trading Statistics (Quarterly Issue)March QuarterJune 1957  
    Factory Production (April Abstract)1955–56May 1957  
    National Income and Expenditure (July Abstract)1955–56August 1956  
    Regional Distribution of Factory Production (July Abstract)1954–55August 1956  
  Special Supplements:
    Consumers' Price Index, 1955 Revision (November Abstract) December 195616
    Report on the Inter-Industry Study of the New Zealand Economy in 1952–53 (February Abstract) March 195716
    New Zealand Tables of Working Life, 1951 (February Abstract)1951March 195720
Agricultural and Pastoral Statistics of New Zealand, 1861–1954 July 195620
Final Report on the Census of Farm Production1949–50May 1956116
Volumes of 1951 Census Results:
  Vol. I. Increase and Location of Population1951April 195376
  Vol. II. Ages and Marital Status1951January 1954106
  Vol. III. Religious Professions (Including Summaries for Dependent Children, Race, and War Service)1951November 195350
  Vol. IV. Industries, Occupations, and Incomes1951September 1954126
  Vol. V. Birthplaces and Duration of Residence of Overseas-Born1951December 195450
  Vol. VI. Maori Census1951January 195566
  Vol. VII. Dwellings and Households1951August 195460
  Vol. VIII. General Report1951August 1956256
  Appendix A. Census of Poultry1951February 195326
  Appendix B. Life Tables 1950–52 and Values of Annuities1951December 195656
  War Service1951November 1953  
Census of Distribution, 19531953April 195460
Census of Public Libraries, 19541954June 195546
Volumes of 1956 Census Results: Interim Returns of Population and Dwellings1956November 195646

LATEST STATISTICAL INFORMATION

FOR some of the statistical series included in this issue of the Year-Book later information is available than is included in the body of the book. This later information is given in the following paragraphs, with references to the appropriate portion of the Year-Book containing more detailed information for earlier periods.

POPULATION

Inter-censal Population (p. 35).—Recent population changes are given in the following table.

POPULATIONAT ENDOF YEAR

Year EndedMalesFemalesTotalMean Population for Year
Total Population (Including Maoris)
30 June 19561,094,8841,083,0532,177,9372,161,068
30 September 19561,101,2381,089,1642,190,4022,171,701
31 December 19561,110,9911,097,7892,208,7802,182,617
31 March 19571,116,6861,104,4832,221,1692,194,108
Maori Population
30 June 195670,66567,542138,207135,453
30 September 195671,27168,161139,432136,765
31 December 195671,83768,729140,566138,081
31 March 195772,55269,482142,034139,421

The above figures are exclusive of the population of the Cook Islands, 16,680 (at Census date 25 September 1956); Niue Island, 4,722 (at 31 December 1956); Tokelau Islands, 1,645 (at 31 March 1957); and Western Samoa, 98,685 (at 31 March 1957).

Natural Increase.—Owing to the uniformly high levels in births in the last few years and the relative stability in the number of deaths, population gains from natural increase—i.e., excess of births over deaths—have been particularly marked in recent years, the excess of births over deaths in 1956 at 36,897 constituting a record.

Migration (pp. 36–38).—The total number of arrivals in New Zealand during the year ended 31 March 1957 was 170,511, while the total number of departures in the same year was 159,656. Excluding crews and through passengers, arrivals totalled 76,055 and departures 64,563, making the net excess of arrivals 11,492, as compared with 8,092 in 1955–56. A classification of total arrivals and departures gives the following results.

Year Ended 31 March
19561957
Migration: Arrivals
Immigrants intending permanent residence20,87823,030
New Zealand residents returning21,91525,046
Visitors—
  Tourists16,88419,368
  Others6,7958,611
Through passengers8,26420,718
Crews67,90873,738
      Total arrivals142,644170,511
Year Ended 31 March
19561957
Migration: Departures
New Zealand residents departing—
  Permanently9,4369,220
  Temporarily23,28726,162
Temporary residents departing25,65729,181
Through passengers8,26420,718
Crews67,33174,375
      Total departures133,975159,656

Until 1953–54, recent statistics of the numbers of immigrants intending permanent residence had shown considerable increases—arrivals under this heading being 18,234 in 1950–51, 24,922 in 1951–52, and 29,005 in 1952–53. However, this upward trend was halted in 1953–54, when a substantial decrease of 4,109 on the previous year was shown, the total being 24,896. This downward trend continued in 1954–55, when the figure was 19,453, another drop of 5,443 on the previous year. However, 1955–56 showed an increase once again, total immigrant arrivals being 20,878, an increase of 1,425, over the previous year, and this upward move has continued with the immigrant arrivals in 1956–57 showing an increase of 2,152 over 1955–56, the total being 23,030.

The continuation of assisted passages for certain classes of immigrants is reflected in the statistics. The following were the numbers arriving under this heading over the past five years: 1952–53, 7,581; 1953–54, 6,299; 1954–55, 4,332; 1955–56, 5,123; 1956–57, 4,593.

In response to an international appeal, New Zealand agreed during 1956–57 to accept a number of Hungarian refugees. The first of these arrived in December 1956, and 617 Hungarian refugees had arrived up to 31 March 1957. They are not included in the assisted immigrant figures covered in the previous paragraph.

In 1956–57 while assisted immigrants fell by 10.3 per cent, unassisted immigrants (including the Hungarian refugees mentioned above) rose by 17.0 per cent compared with the previous year.

PRODUCTION

Timber Production

Timber Production (pp. 567–569).—Provisional figures issued by the New Zealand Forest Service indicate a continued high level of timber production for the year ended 31 March 1957, the output of rough-sawn timber being given as 596,900,000 board feet, a decrease of 28,900,000 board feet below the output of the previous year. The output of the principal species was as follows: rimu and miro, 212,500,000 board feet; matai, 33,400,000 board feet; kahikatea, 17,300,000 board feet; beech, 18,800,000 board feet; totara, 9,900,000 board feet; tawa, 15,500,000 board feet; and exotic pines, 273,300,000 board feet. Indigenous species totalled 312,100,000 board feet, and exotics, 284,800,000 board feet.

Factory Production Statistics, 1955–56

Production totals for the 1955–56 year showed a rise of 5.7 per cent in volume of output over the previous year. The 1954–55 totals gave a record rise in volume of output for one year of 10.2 per cent. Three groups of industries recorded decreased output in 1955–56—tobacco manufactures, textiles, and leather and leather products, while eight groups recorded rises in volume of production of over 5 per cent. These were paper and paper products 43.42 per cent, rubber products 9.99 per cent, printing and publishing 8.60 per cent, electrical machinery and appliances 7.13 per cent, non-metallic mineral products 6.29 per cent, chemicals and chemical products 5.48 per cent, and beverages 5.18 per cent. The miscellaneous group heavily weighted by metal products, machinery, and transport equipment recorded a rise of 6.20 per cent.

Three important factors in the production increase for the year were the rise in persons engaged, the increase in overtime worked, and the huge increase recorded in the volume index for 1955–56 for the paper and paper products group. Included in this group was the first full year's output of the Tasman Pulp and Paper Company. The number of persons engaged during the latest year was 4,590, or 3 per cent, higher than the previous year, and overtime hours worked at 21,037,049 recorded an increase of 7.2 per cent on the previous year. These increases were not relatively as high as those recorded in 1954–55, when employment rose 4.9 per cent and overtime worked increased by 18.6 per cent. Average overtime hours worked by all wage-earners in 1955–56 were 195 for males and 41 for females, as against 185 and 46 in the previous year. Whereas in 1954–55 all groups recorded overtime increases, this year (1955–56) eight groups registered declines. Of the other twelve groups the following all showed increases of over 10 per cent—rubber products 22.8 per cent, transport equipment 15.1 per cent, wood products 11.4 per cent, and non-metallic mineral products 10.2 per cent.

The total number of persons engaged increased by 4,590 over 1954–55 (3,797 males and 793 females). The following groups accounted for the bulk of this increase: Food 1,252, wood products 582, paper and paper products 960, printing and publishing 467, transport equipment 1,001.

Wages paid in industry during 1955–56 averaged £741 for males and £390 for females, as against £696 and £373 the previous year, increases of 6.5 and 4.6 per cent respectively. These averages include overtime payments and bonuses, etc.

Added value at £201,169,110 represents the contribution to New Zealand's production in 1955–56 by manufacturers covered in this series, and shows a rise of 8.5 per cent over 1954–55. Increases of more than 10 per cent recorded over the previous year were paper and paper products 52.1 per cent, transport equipment 14.6 per cent, and non-metallic mineral products 12.5 per cent.

Capital expenditure during 1955–56 amounted to £26.1 million, compared with £20.6 million and £18.3 million in 1954–55 and 1953–54 respectively. These amounts cannot be treated as the total capital expended by New Zealand manufacturers, as the totals do not take into account capital expenditure of units not yet in production.

One final point of importance is the relative share of net production (added value) taken by the salary and wage-earner as opposed to the manufacturer. In 1955–56 salaries and wages represented 53.6 per cent of added value (53.0 the previous year). The manufacturers' surplus was 18.3 per cent of added value in 1955–56 (21.1 in the previous year).

This series of industrial production statistics compiled by the Department of Statistics covers 80 per cent of the labour force engaged in manufacturing activity. Actually the proportion of industrial production covered by the survey would be greater than 80 per cent, in that all establishments of any considerable size are included.

The year covered by these statistics is in general that ended 31 March 1956, although concerns are permitted to furnish returns covering financial years most closely corresponding to that period. In the case of dairy factories and meat-freezing works the years correspond to the respective seasons ended June and September 1956.

Summary (p. 619).—Following are the principal statistics of factory production for 1955–56, with comparable figures for the two previous years.

General Summary1953–541954–551955–56
Number of establishments8,3778,3668,515
Persons engagedNo.146,426153,558158,148
Production costs—
  Salaries, wages£86,579,12398,362,829107,870,738
  Materials£332,858,177365,373,468382,866,557
  Other expenses£40,392,91747,943,23056,540,803
      Totals£459,830,217511,679,527547,278,098
Value of output£495,376,770550,790,555584,035,667
Manufacturers' surplus£35,746,55339,111,02836,757,569
Value added in manufacture£162,518,593185,417,087201,169,110
Overtime worked by wage-earnersHrs.16,555,37019,629,27521,037,049
Volume index for industry: Base 1949–50 (= 1000) 1,1841,3051,379
Premises and plant—
  Value at end of year—
    Land and buildings£69,359,86080,687,46196,214,215
    Plant and machinery£52,909,37057,886,92073,659,189
  Capital expenditure during year—
    Land and buildings£6,511,4378,530,21111,000,461
    Plant and machinery£11,786,76912,061,18215,113,205
Coal consumption as fuelTons864,521898,571955,171

Principal Statistics 1955–56 (p. 643).—The following table gives the number of persons engaged, production costs, value of output, and added value for the year 1955–56, classified according to industry groups.

Industry GroupNumber of Persons EngagedProduction CostsValue of OutputAdded Value
Salaries and WagesMaterialsOther ExpensesTotal
 £(000)£(000)£(000)£(000)£(000)£(000)
Food28,46921,745184,87212,784219,401226,16741,295
Beverages2,1951,6875,1141,5788,37910,0094,894
Tobacco manufactures1,1006144,3944175,4256,0691,675
Textiles8,3234,93820,4312,62127,99029,1328,701
Footwear, other wearing apparel, and made-up textile goods25,63012,41223,5632,88738,86241,12317,560
Wood and cork products (except furniture)12,9169,24119,1035,14733,49136,47817,375
Furniture and fittings4,9503,2425,1377969,1759,9434,806
Paper and paper products4,3543,1859,4316,49619,11219,0739,642
Printing, publishing, etc.9,4576,7807,0983,00416,88219,81712,719
Leather and leather products (except footwear and apparel)1,6121,0212,8243264,1714,4761,652
Rubber products2,8482,2895,0431,4228,7549,9644,921
Chemicals and chemical products4,9113,62217,0952,72523,44226,0798,983
Petroleum and coal products2982311,4812251,9362,130649
Non-metallic mineral products n.e.i.6,3344,7846,4384,72315,94418,16911,731
Basic metal manufactures8616741,8193292,8213,1311,312
Metal products (except machinery and transport equipment)7,5055,86910,8222,25418,94620,98010,158
Machinery (except electrical)9,1476,96814,8572,31424,13926,42711,570
Electrical machinery and appliances4,2852,8406,1901,18110,21111,0914,901
Transport equipment20,21914,06534,4694,62853,16258,24523,776
Miscellaneous products2,7141,6652,6856855,0365,5322,847
      Totals, all groups158,148107,871382,86756,541547,278584,036201,169

Volume of Industrial Production (pp. 640–641).—The following analysis shows the variations in the volume of industrial production in the several industrial groups. The series is based on the volume of production in 1949–50.

GROUP INDICES: BASE 1949–50 (= 1000)

Industry Group1953–54 Index1954–55 Index1955–56
IndexIncrease Over 1954–55

* Decrease.

 Per Cent
Food1,0631,0961,1343.44
Beverages1,1821,3061,3745.18
Tobacco manufactures1,1741,1481,122–.26*
Textiles1,1851,2231,163–4.92*
Footwear, other wearing apparel, and made-up textile goods1,0551,1611,1700.77
Wood and cork products (except furniture)1,1961,2521,2751.81
Paper and paper products1,59919992,86843.42
Printing, publishing, etc.1,1741,3631,4808.60
Leather and leather products (except footwear and apparel)981946883–6.65*
Rubber products1,6082,1882,4079.99
Chemicals and chemical products1,2381,4111,4885.48
Non-metallic mineral products n.e.i.1,1551,3141,3976.29
Electrical machinery and appliances1,2861,3961,4967.13
Furniture and fittings1281144415336.20
Petroleum and coal products
Basic metal manufactures
Metal products (except machinery and transport equipment)
Machinery (except electrical)
Transport equipment
Miscellaneous products
      Totals, all groups1,1841,3051,3795.67

Regional Distribution of Factory Production, 1955–56.—The table following gives a general summary by employment districts and shows a comparison of the manufacturing strengths of each district. The fairest guide to actual volume of production is the column in the table on Added Value. This shows Auckland district's dominance in the manufacturing world; its production all but equalling the total for the South Island.

FACTORIES: SUMMARY OF OPERATIONSBY EMPLOYMENT DISTRICTS, 1955–56

Employment DistrictNumber of FactoriesPersons EngagedSalaries and Wages Paid
MalesFemalesMalesFemales
 No.No.££
Whangarei2452,4812501,800,05586,238
Auckland2,02532,03014,56525,589,5955,944,953
Hamilton5315,6587514,203,644299,704
Paeroa1271,345272933,81797,653
Tauranga108884165623,37268,091
Rotorua2074,8143323,946,870132,224
Gisborne1171,331327970,079114,348
Napier1431,4314081,087,832140,874
Hastings1702,7105542,123,665225,652
New Plymouth3433,7656922,866,995241,937
Wanganui2342,6778572,092,178320,210
Palmerston North4094,4361,3183,302,352510,386
Masterton1601,5722551,179,70095,013
Lower Hutt3097,3802,3076,404,9581,053,873
Wellington7809,1364,9957,475,1292,180,294
  Totals, North Island5,90881,65028,04864,600,24111,511,450
Blenheim98795247565,90286,863
Nelson1821,7213431,223,163129,522
Westport4326931190,58311,188
Greymouth1301,077199756,16962,795
Christchurch1,00416,3416,66712,205,0462,607,156
Ashburton67757159580,24052,610
Timaru1652,1603561,625,744134,386
Oamaru56851171621,01656,777
Dunedin5158,1783,2666,103,8271,222,731
Invercargill3474,3235393,324,104199,225
  Totals, South Island2,60736,47211,97827,195,7944,563,253
  Totals, New Zealand8,515118,12240,02691,796,03516,074,703
Employment DistrictCost of MaterialsValue of OutputAdded Value
TotalPercentage of Total*

* Bracketed figures are percentages in previous year (1954–55).

 £££ 
Whangarei13,016,21817,372,8344,356,6162.2 (2.0)
Auckland97,107,357152,767,02355,659,66627.7 (28.7)
Hamilton25,088,31033,651,9298,563,6194.3 (4.5)
Paeroa10,105,72412,468,8852,363,1611.1 (1.1)
Tauranga3,697,6614,975,5781,277,9170.6 (0.7)
Rotorua11,580,11522,311,84610,731,7315.4 (3.8)
Gisborne3,422,4545,393,0791,970,6251.0 (1.0)
Napier3,982,1696,305,4612,323,2921.2 (1.1)
Hastings11,191,08515,193,8334,002,7482.0 (1.9)
New Plymouth20,046,16825,720,3615,674,1932.8 (3.0)
Wanganui9,821,20914,117,0054,295,7962.1 (2.2)
Palmerston North18,585,96325,621,7927,035,8293.5 (3.7)
Masterton6,472,5918,709,8472,237,2561.1 (1.2)
Lower Hutt32,488,95748,172,71515,683,7587.8 (6.9)
Wellington19,005,65135,773,68616,768,0358.3 (8.8)
  Totals, North Island285,611,632428,555,874142,944,24271.1 (70.6)
Blenheim2,141,0323,056,188915,1560.4 (0.4)
Nelson3,727,9656,601,1892,873,2241.4 (1.5)
Westport438,528776,173337,6450.2 (0.2)
Greymouth1,922,9593,505,2321,582,2730.8 (0.8)
Christchurch38,147,45064,478,40526,330,95513.1 (13.1)
Ashburton2,610,6243,793,2841,182,6600.6 (0.7)
Timaru8,773,88011,672,1082,898,2281.4 (1.5)
Oamaru2,826,8044,422,1981,595,3940.8 (0.8)
Dunedin20,210,64433,508,95713,298,3136.6 (6.8)
Invercargill16,455,03923,666,0597,211,0203.6 (3.6)
  Totals, South Island97,254,925155,479,79358,224,86828.9 (29.4)
  Totals, New Zealand382,866,557584,035,667201,169,110100.0 (100.0)

BUILDING ACTIVITY (pp. 672–680)

Building Permits in Urban and Rural Districts Combined.—The following table gives a summary for New Zealand of building permits (including State building operations) for the years ended 31 March 1956 and 1957.

1955–561956–57
New Houses and Flats: NumberNew Houses and Flats: ValueTotal, All Buildings: ValueNew Houses and Flats: NumberNew Houses and Flats: ValueTotal, All Buildings: Value
 ££ ££
Urban districts14,16238,511,68770,156,97813,44537,171,05469,009,424
Rural districts5,34212,974,09520,016,2664,90912,042,73220,378,817
  Totals, New Zealand19,50451,485,78290,173,24418,35449,213,78689,388,241

Building Permits Issued: New Zealand Totals

Year Ended 31 MarchNew Houses and FlatsValue of Other Buildings and Alterations and AdditionsTotal Value of All Buildings
NumberValue
 £££
195520,86352,766,84240,638,39593,405,237
195619,50451,485,78238,687,46290,173,244
195718,35449,213,78640,174,45589,388,241

Building Permits Issued: Urban Districts.—Urban districts include all cities, boroughs, and town districts, together with the counties of Waitemata, Manukau, Makara, Hutt, Paparua, Waimairi, Heathcote, Peninsula, and Taieri.

Year Ended 31 MarchNew Houses and FlatsValue of Other Buildings and Alterations and AdditionsTotal Value of All Buildings
NumberValue
 £££
195515,44340,241,57334,348,71374,590,286
195614,16238,511,68731,645,29170,156,978
195713,44537,171,05431,838,37069,009,424

Building Permits Issued: Rural Districts.—Rural districts include the remaining counties of New Zealand and islands outside county boundaries.

Year Ended 31 MarchNew Houses and FlatsValue of Other Buildings and Alterations and AdditionsTotal Value of All Buildings
NumberValue
 £££
19555,42012,525,2696,289,68218,814,951
19565,34212,974,0957,042,17120,016,266
19574,90912,042,7328,336,08520,378,817

Houses and Flats Completed.—Local authorities supplying building permit figures were also requested to supply the number of houses and flats which were completed during the year. In those cases where local authorities could not supply actual figures for completions, they were asked to make an estimate of the number.

The total figures on this basis for new houses and flats completed during 1956–57 were 19,200, compared with 19,200 in 1955–56 and 18,500 in 1954–55. Those completed in urban districts numbered 14,300 in 1956–57, 14,200 in 1955–56, and 13,900 in 1954–55.

EXTERNAL TRADE

Statistics of external trade in the calendar year 1956, in continuation of the statistics included in pages 292–355 of this Year-Book, are given below.

Total Commodity Trade.—Following are statistics of exports and imports in 1954, 1955, and 1956.

£(000)

Calendar YearExportsImports (c.d.v.)Excess of Exports Over Imports
New Zealand ProduceTotal Exports

* The corresponding c.i.f. values were £245,820,000 in 1954, £287,134,000 in 1955, and £268,564,000 in 1956.

1954242,373244,466213,155*31,311
1955256,692258,850250,661*8,189
1956272,699275,134235,425*39,709

INDEX NUMBERSOF VALUEAND VOLUMEOF TRADE

BASE 1952 (=100)

Calendar YearExportsImports
Value IndexVolume IndexValue IndexVolume Index
195398907176
1954102909399
195510896110116
1956114100103108

The total trade per head of mean population in 1956 was £234 (exports £126 and imports £108).

Exports.—New Zealand's export commodity trade in 1956 was valued at £275.1 million, an increase of 6.3 per cent over the previous year. An indication of the movement in the value of exports in the main groups of commodities is afforded by the following table.

VALUEOF EXPORTS

£(000)

Calendar YearButterCheeseFrozen MeatWoolHides, Pelts, and Skins
195351,38518,37339,88784,59810,692
195444,71416,38051,90588,43710,449
195550,83013,41360,67093,7809,333
195652,15122,51163,61990,15810,468

Apart from the question of values, a special interest attaches to progress in the volume of our export trade in major export commodities. In the following table the fluctuations in the quantities of exports of butter, cheese, meat, and wool since 1946 are shown. Tons (000)

Calendar YearButterCheeseFrozen MeatWool
1946101.875.7337.7163.1
1947127.787.0347.8167.5
1948135.675.6343.5188.0
1949147.693.9344.1191.8
1950138.399.9338.1175.9
1951147.5106.6274.8141.5
1952184.091.3385.5195.6
1953159.1101.4326.7174.8
1954132.592.4370.3175.4
1955155.583.9386.7186.2
1956163.289.3416.7188.3

Direction of Export Track.—The table below shows the main destinations of New Zealand exports in 1956. £(000)

CountryTotal Exports*

* Provisional figures.

United Kingdom177,679
India1,530
Ceylon108
Malaya and Singapore545
Hong Kong237
Rhodesia-Nyasaland Federation136
Union of South Africa384
Trinidad and Tobago988
Barbados222
British Guiana92
Jamaica933
Canada4,067
Australia8,425
Fiji1,336
Gilbert and Ellice Islands58
Tonga308
Nauru70
Western Samoa573
Other Commonwealth countries472
  Totals, Commonwealth countries198,163
Belgium and Luxemburg5,697
Czechoslovakia1,776
Denmark439
France16,133
German Federal Republic10,246
Greece751
Republic of Ireland134
Italy6,589
Netherlands4,553
Poland2,179
Russia2,049
Sweden697
Bulgaria163
Switzerland75
China131
Philippines201
Japan2,650
Belgian Congo93
Egypt656
Mexico122
Netherlands Antilles284
Panama Republic207
United States of America19,304
Hawaii166
Society Islands137
American Samoa115
Other countries735
    Totals, all other countries76,282
Ships' stores689
    Totals, all countries275,134

Exports to Commonwealth countries in 1956 accounted for 72 per cent of the total exports, excluding ships' stores.

Imports.—The table following classifies imports by broad divisions.

IMPORTS VALUEDAT CURRENT DOMESTIC VALUEIN COUNTRYOF EXPORT

£(000)

Calendar YearFood, Beverages, and TobaccoMineral FuelsChemicals (Including Manufactured Fertilizers)Base Metals and Manufactures of MetalMachinery and Transport EquipmentTextiles, Clothing, and FootwearTotal*

* Including classes not listed.

195424,82914,96413,23727,13561,48935,272213,155
195526,22616,55115,80135,16575,45637,229250,661
195625,20418,84415,54232,69267,28033,494235,425

Direction of Import Trade.—The next table shows the main sources (origin) of New Zealand's imports in 1956.

£(000)

CountryTotal Imports*

* Provisional figures.

United Kingdom126,249
Aden912
Bahrain Island3,192
Ceylon2,223
Hong Kong968
India3,448
Malaya and Singapore3,180
Ghana427
Kenya and Uganda306
Tanganyika254
Union of South Africa1,019
Jamaica247
Trinidad and Tobago182
Canada6,251
Australia33,531
Fiji1,470
Gilbert and Ellice Islands149
Nauru Island628
Western Samoa257
Other Commonwealth countries503
  Totals, Commonwealth countries185,396
Austria371
Belgium and Luxemburg2,115
Czechoslovakia347
Denmark305
France1,945
German Federal Republic6,590
Italy1,492
Netherlands2,085
Norway671
Portugal193
Spain143
Sweden1,826
Switzerland1,560
China323
Indonesia6,316
Iran1,565
Iraq111
Japan2,241
Saudi Arabia505
Tunisia101
Chile100
Netherlands Antilles376
United States of America18,065
Other countries683
    Totals, all other countries50,029
    Totals, all countries235,425

Imports from Commonwealth countries in 1956 comprised 79 per cent of the total.

DISTRIBUTION STATISTICS: QUARTERLY SURVEY OF RETAIL TRADING (pp. 708–711)

Following the Census of Distribution in 1953 a continuing quarterly retail sample inquiry was inaugurated. The results of the census formed the framework from which a random sample of firms, stratified by store-type in broad geographical divisions and size of turnover, was drawn,

The actual sample inquiry is confined to just under 10 per cent of establishments, but these, on the basis of the census, represent approximately 28 per cent of total turnover. To provide the estimates presented in the following tables the figures have been expanded to represent the activity of all retail stores with the exception of hotel, motor vehicle, and motor accessory trading, which are excluded from the sample inquiry, and also from the census figures quoted by way of comparison.

Turnover by Store-types.—In the following tables details are shown for the latest periods. With two exceptions, other apparel and hardware, value of turnover increased in all store-types in the year ended 31 March 1957 as compared with the year ended 31 March 1956, the largest relative increases occurring in the grocer, other food and drink, chemist, and “other” store-type groups.

TOTAL SALESOR TURNOVER

£(000)

Store-typeNorth IslandSouth IslandTotals, New Zealand
Auckland Urban AreaWellington and Hutt Urban AreasRemainder of North IslandTotals, North IslandChristchurch Urban AreaDunedin Urban AreaRemainder of South IslandTotals, South Island
Year Ended 31 March 1956
Butcher, etc.4,1302,8488,99215,9702,3701,4404,1697,97923,949
Grocer8,1256,88817,70132,7145,1872,5878,60916,38349,097
Other food and drink9,7144,93313,67028,3173,7362,3275,47811,54139,858
Footwear1,6451,1882,8455,6788574881,2662,6118,289
Other apparel10,6356,97519,10236,7124,5922,8217,73215,14551,857
Furniture and soft furnishings4,5112,4545,50012,4651,7039762,0104,68917,154
Household appliances, radios, etc.1,8401,5313,3246,6959316911,4193,0419,736
Hardware2,9944,0286,43113,4538785342,0593,47116,924
Chemist1,9921,1523,1656,3098635341,3102,7079,016
General, department, and variety12,8225,58634,68053,0888,8213,36514,51326,69979,787
Other11,7809,73823,89145,40911,6123,0479,39424,05369,462
      Totals70,18847,321139,301256,81041,55018,81057,959118,319375,129
Year Ended 31 March 1957
Butcher, etc.4,1902,9738,93616,0992,3311,4194,1967,94624,045
Grocer8,4557,13918,67834,2725,4042,7668,79216,96251,234
Other food and drink10,4405,08114,13229,6533,9812,4725,55212,00541,658
Footwear1,6511,2462,9365,8338345161,3232,6738,506
Other apparel10,1316,74818,79235,6714,3742,7757,75414,90350,574
Furniture and soft furnishings4,7932,4385,41412,6451,7271,0292,2384,99417,639
Household appliances, radios, etc.1,5191,5143,4886,5219977181,5123,2279,748
Hardware2,8283,6286,34712,8031,0496241,9153,58816,391
Chemist1,9901,2253,3866,6018595351,4192,8139,414
General, department, and variety12,9175,40935,07253,3988,7003,36914,59126,66080,058
Other12,8859,36425,38947,63812,1432,9789,72924,85072,488
      Totals71,79946,765142,570261,13442,39919,20)59,021120,621381,755
Quarter Ended 31 December 1955
      Totals19,48612,89038,80671,18211,7345,16416,16933,067104,249
Quarter Ended 31 March 1956
Butcher, etc.9486852,1893,8225823161,0451.9435,765
Grocer1,9491,6734,5108,1321,2736272,1154,01512,147
Other food and drink2,4431,2123,3837,0389005731,4672,409,978
Footwear3502716481,2691981123076171,886
Other apparel2,2071,5674,4018,1751,0076181,6553,28011,455
Furniture and soft furnishings9735841,1522,7093791974199953,704
Household appliances, radios, etc.3813327871,5002131603277002,200
Hardware7179101,5293,1562231344658223,978
Chemist4632837681,5142091163276522,166
General, department, and variety2,7211,2028,16612,0891,9097713,5626,24218,331
Other2,7802,2175,74410,7412,6797222,1485,54916,290
      Totals15,93210,93633,27760,1459,5724,34613,83727,75587,900
Quarter Ended 31 December 1956
      Totals19,80412,85039,84372,49712,0415,42816,71334,182106,679
Quarter Ended 31 March 1957
Butcher, etc.1,0137152,1633,8915643421,0611,9675,858
Grocer2,0271,6624,6948,3831,2776492,1874,11312,496
Other food and drink2,5891,2403,5267,3559666111,3862,96310,318
Footwear3532836701,3061971223276461,952
Other apparel2,2071,4164,1897,8129246451,6893,25811,070
Furniture and soft furnishings9735161,1862,6753622165101,0883,763
Household appliances, radios, etc.3644108811,6552351593637572,412
Hardware7048491,5083,0612901444478813,942
Chemist4583128711,6412111273516892,330
General, department, and variety2,7611,1928,42312,3761,9837553,6746,41218,788
Other3,2902,1606,27511,7253,0187052,2175,94017,665
      Totals16,73910,75534,38661,88010,0274,47514,21228,71490,594

The following table covering retail trading throughout the whole of New Zealand presents turnover figures classified according to the main commodity groups for both yearly periods and for recent quarterly periods.

COMMODITY SALESOR TURNOVEROF RETAIL STORES

£(000)

Commodity GroupYear EndedQuarter Ended
31 March 195531 March 195631 March 195731 Dec. 195531 March 195631 Dec. 195631 March 1957

* Information obtained in the quarterly surveys indicates that retail trading in “Clothing, drapery, dress piece-goods” was divided in the following proportions in the year ended 31 March 1957: Men's and boys' wear, 32 per cent; women's, girls', and infants' wear, 57 per cent; household drapery, 11 per cent.

Groceries and small goods (including butter, bacon, etc.)66,51267,28270,45918,13616,56119,01317,037
Butchers' meat, fish, fruit, and vegetables34,42235,20336,2549,2438,4609,5288,835
Other foods (bread, cakes, pastry, etc.)12.83413,80213,9853,6513,7783,6993,331
Milk, ice-cream, confectionery, soft drinks, etc.11,11911,62011,9203,0193,0173,2053,233
Tobacco, cigarettes, and tobacconists' sundries9,0798,9728,9052,4362,1092,4472,090
Chemists' goods, toiletries, cosmetics (including dispensing)9,65810,86011,2453,0532,5963,0642,778
Clothing, drapery, dress piece-goods*63,53865,42163,77218,62414,51718,17713,990
Footwear10,26310,50010,7953,0182,3873,1472,479
Furniture, bedding, floor coverings, soft furnishings, and household textiles22,53022,20522,6385,9754,8496,2844,883
Musical instruments, including radios5,0765,2525,7661,5181,1521,6421,314
Household appliances and electrical goods12,65112,72412,4393,8352,8703,9692,926
Hardware—
  Domestic hardware, china, and glassware12.01712,42012,3393,5652,9103,5962,876
  Builders' hardware and materials (excluding timber, bricks, and roofing tiles)15,15915,70614,7273,9543,6933,8533,628
Books, stationery, etc.9,7969,63410,1492,8522,5352,9942,617

Stocks.—The following table shows details of stock figures as at 31 March of the last six years; also as at 31 December 1956.

The figures for March 1957 show a slight increase as compared with stocks at both 31 December 1956, and 31 March 1956.

VALUEOF STOCKS HELDBY RETAIL STORES

£(000)

Store-typeStocks at
31 March 195231 March 195331 March 195431 March 195531 March 195631 Dec. 195631 March 1957
Butcher, etc.378441363408338302310
Grocer4,5204,5854,7124,7584,8174,9194,818
Other food and drink1,6171,8811,8301,8621,8851,8551,824
Footwear2,3212,4682,6253,0313,0883,2603,127
Other apparel14,64015,11915,04217,62617,80618,11718,234
Furniture and soft furnishings4,3284,3914,3454,5654,8234,7584,669
Household appliances, radios, etc.1,2781,4141,3461,5801,7391,8041,862
Hardware2,7783,7433,4773,6174,0423,7513,813
Chemist1,4031,5411,6301,7261,8381,9371,913
General, department, and variety12,85114,25613,38114,75615,19515,11515,384
Other11,97414,52713,41812,65114,32214,32615,047
      Totals58,08864,36662,16966,58069,89370,14471,001

FINANCE

Banking and Currency

Reserve Bank (pp. 855–856).—Data showing the liabilities and assets of the Reserve Bank of New Zealand at the last balance day in May 1957 are shown below, together with the corresponding figures for the last balance day in March 1957.

£(000)

As at Last Balance Day in
March 1957May 1957

* Expressed in New Zealand currency.

Liabilities—
  Total liabilities (including other)171,287161,837
  Bank notes71,99872,711
  Demand liabilities—
    State41,9187,072
    Marketing1,5761,218
    Banks43,23467.075
    Other1,2611,976
Assets—
  Total assets (including other)171,287161,837
  Investments—
    Overseas*27,78632,736
    In New Zealand10,38710,387
  Reserve*
    Sterling exchange34,83545,961
    Other exchange249434
  Advances—
    State50,00026,034
    Marketing organizations35,19333,750
    Other5,0394,394

Trading Banks (pp. 856–865).—The principal statistics of trading banks for the months of March and May are given below. Debits and clearings cover the weekly periods ended on the last Wednesday of the respective months, while the remaining figures are as at those dates.

As at Last Balance Day in
March 1957May 1957
Bank debits during week—
  Government£15,056,56210,070,779
  Other£120,506,362111,559,090
Advances, including notes and bills discounted£168,741,704162,749,571
Unexercised overdrafts£97,025,863101,817,615
Deposits—
  Total£274,769,692289,534,625
  Government£4,367,9893,502,613
  Not bearing interest£233,800,045246,959,707
  Bearing interest£36,601,65839,072,305
Reserve Bank notes—
  Notes held by trading banks£11,566,96212,487,922
    Net note circulation£60,430,99260,222,894
Ratio of advances to depositsPer Cent61.4156.21

Overseas Assets of Banks (pp. 867–868).—In the following table overseas assets of banks (on account of New Zealand business only) are shown.

£(000)

Overseas Assets at End of
March 1956March 1957
Trading banks' overseas assets—
  In London30,40624,228
  Elsewhere5,9747,147
Reserve Bank's overseas assets—
  Sterling exchange28,22734,835
  Other overseas assets28,58628,202
Total gross overseas assets93,19394,412
Overseas liabilities of trading banks8,2734,982
Overseas liabilities of Reserve Bank1459
Net overseas assets84,77589,421

Savings Banks (pp. 871–876).—A summary of statistics of savings banks at 31 March 1957 is given below.

Post Office Savings BankTrustee Savings BanksNational Savings Accounts

* Excess of withdrawals over deposits.

† On deposits held during year ended 30 June 1956.

Number of depositors1,650,331400,395 
 £££
Total amount of deposits during year131.443,89033,444,8258,836,057
Total amount of withdrawals during year121,319,48930,407,84513,005,415
Excess of deposits over withdrawals10,124,4013,036,980–236,593*
Interest credited to depositors6,300,8571,229,2672,040,230
Total amount to credit of depositors at end of March 1957236,605,66049,121,27167,321,998

Post Office Savings-bank Accounts Classified by Amount Groups (p. 873).—The following is a classification of the balances in Post Office Savings-bank accounts at 31 March 1955, 1956, and 1957, shown by amount groups and percentage of accounts within each group.

At 31 March 1955*Percentage of TotalAt 31 March 1956*Percentage of TotalAt 31 March 1957Percentage of Total

* Excludes 17,343 accounts in 1954–55 and 18,278 in 1955–56 domiciled at Apia and Rarotonga.

£ £ 
Under 1354,53523.06342,88621.88345,03720.91
1 and under 10368,07023.94384,66424.55437,41526.50
10 and under 50289,71418.85301,44319.23316,85519.20
50 and under 100123,7868.05126,3118.06130,3767.90
100 and under 200125,9558.19131,6838.40126,9977.70
200 and under 30070,7344.6071,2074.5471,7194.35
300 and under 40045,7772.9847,1743.0147,5502.88
400 and under 50036,9522.4036,7602.3537,4982.27
500 and under 60027,3471.7829,2141.8629,2081.77
600 and under 70016,4861.0716,5931.0618,0261.09
700 and under 80012,3670.8112,9320.8313,6580.83
800 and under 90010,0590.6610,0340.6410,6000.64
900 and under 1,0008,2990.548,5900.559,1840.56
1,000 and under 1,50023,8971.5624,5281.5627,5311.67
1,500 and under 2,00011,0220.7210,7630.6912,5690.76
2,000 and under 3,0009,2170.609,2290.5910,7420.65
3,000 and under 4,0001,8280.121,9120.123,2820.20
4,000 and under 5,0006740.047320.051,1980.07
5,000 and over4870.034890.038860.05
  Total number of accounts1,537,206*100.001,567,144*100.001,650,331100.00

Overseas Receipts and Payments.—The following statement gives statistics of overseas exchange transactions for the years ended 31 March 1956 and 1957. Comparable items for the calendar years 1955 and 1956 are, however, given on pages 869–870. All figures quoted are taken from Reserve Bank sources.

£NZ(000)

Year Ended 31 March 1956Year Ended 31 March 1957
ReceiptsPaymentsReceiptsPayments
Exports—
  Butter49,980 43,336 
  Cheese19,571 20,213 
  Meat67,738 68,309 
  Wool98,375 97,943 
      Totals (including other)273,257 275,289 
Imports—
  Licensed 43,635 31,901
  Decontrolled 194,461 198,818
  Government 22,285 29,275
      Totals (including other) 264,380 263,576
Transport: Freights, fares, ships' charters3,1485,7554,3157,087
Travel: Private and business (exclusive of fares)2,3966,5913,1556,675
Insurance—
  Insurance, reinsurance, other transfers1,3361,6871,2471,906
International investment income—
Interest, dividends, and other private investment income5,3066,2945,4757,406
Interest on Government and local authority loans 3,592 3,599
      Totals, international investment income5,3069,8865,47511,005
Government transactions—
  Current expenditure by New Zealand Government overseas 6,507 6,424
  Current receipts by New Zealand Government and expenditure by other Governments in New Zealand1,337 1,770 
      Totals, Government transactions1,3376,5071,7706,424
Miscellaneous current transactions—
  Commissions, royalties, rebates, etc.1,5152,3511,5162,867
  Films and entertainments 1,017 929
  Unilateral transfers (immigrants' transfers, personal remittances, charitable, legacies, etc.)7,1857,4527,9588,147
  Expenses of business firms4813,6957134,727
  Other current transactions5421,090511931
      Totals, miscellaneous current transactions9,72315,60610,69817,601
Capital transfers—
  Private9,9972,4235,9583,141
  Government4,4876,80212,8892,766
  Local authority   6
      Totals, capital transfers14,4849,22518,8475,913
Cook Islands exports or imports92100159105
Unidentified84 99 
Net export and contra prepayments 7,827  
      Grand totals311,164327,565321,054320,290

PUBLIC FINANCE

Consolidated Fund (pp. 785–789).—The following table contains a summary of the receipts and payments of the Consolidated Fund for the financial years ended 31 March 1956 and 1957.

£

1955–561956–57
Receipts
Taxation167,418,995172,794,730
Interest on capital liability—
  Post and Telegraph1,524,3071,964,607
  Electric supply3,592,0014,592,178
  Housing and Housing Construction1,366,1451,474,933
  Land settlement1,625,5561,708,192
  New Zealand National Airways Corporation42,00042,000
  Working railways 716,758
Interest on other public moneys996,6451,055,376
Profits on trading undertakings2,906,3624,254,822
Departmental receipts17,961,28917,672,735
      Totals, receipts197,433,300206,276,330
Payments
Permanent appropriations—
  Civil list162,395171,608
  Debt services—
  Interest21,000,62722,728,532
  Amortization12,702,81012,006,709
  Administration and management830,309673,318
Superannuation (subsidy and contribution)3,602,0003,864,000
Miscellaneous589,191731,099
      Totals, permanent appropriations38,887,33240,175,265
Annual appropriations—
  Legislative245,317246,256
  Prime Minister's Office21,54020,532
  External Affairs2,153,8922,191,975
Finance—
  Treasury330,351345,182
  Stabilization11,824,95412,350,861
  Customs476,403497,915
  Inland Revenue1,372,4981,508,451
  Audit203,637216,552
      Totals, finance14,207,84314,918,961
General administration—
  Public Service Commission119,492130,261
  Internal Affairs3,554,3093,088,707
  Island Territories992,9071,196,092
  Printing and Stationery1,106,8141,169,216
  Marine584,765604,963
  Labour1,925,0652,039,124
  Maori Affairs887,182908,226
  Valuation396,302412,870
  Statistics166,260350,055
  Rehabilitation1,127,2891,064,680
      Totals, general administration10,860,38510,964,194
Law and order—
  Justice1,440,4811,599,794
  Crown Law25,56727,700
  Police2,032,5842,630,089
      Totals, law and order3,498,6324,257,584
Defence—
  Navy5,817,3636,467,986
  Army7,611,5677,678,000
  Air8,758,5009,330,169
  Defence construction and maintenance2,205,7062,745,114
      Totals, defence24,393,13626,221,270
Maintenance—
  Maintenance of public works and services10,558,75613,154,578
Development of primary and secondary industries—
  Lands and Survey1,944,9021,976,709
  Forest Service2,202,0302,436,264
  Agriculture4,001,5854,951,204
  Industries and Commerce400,711432,031
  Tourist and Publicity1,509,6411,520,915
  Scientific and Industrial Research1,212,6581,404,298,
  Mines121,860292,686
  Transport567,277587,369
  Civil Aviation and Meteorological Services2,552,7273,077,054
      Totals, development of primary and secondary industries14,513,39116,678,531
Social services—
  Health5,797,3156,346,558
  Subsidies to Hospital Boards10,704,31412,895,674
  Education27,455,70831,826,068
  War and other pensions8,444,5218,927,659
  Contribution to Social Security Fund14,000,00014,000,000
      Totals, social services66,401,85873,995,958
      Totals, annual appropriations146,854,750162,649,838
Unauthorized expenditure40,047125,528
Transfer to Public Works Account7,500,000 
      Totals, payments193,282,129202,950,630
Surplus from current year's operations4,151,1713,325,700
Balance in Fund at end of year11,291,87210,466,402

The surplus for the year 1954–55 of £6,839,916 was expended during the year 1955–56 by transfer to the Public Works Account. The corresponding surplus for the year 1955–56 of £4,151,171 was expended during the year 1956–57 by transfer to the Public Works Account.

Taxation (pp. 796–797).—Particulars of revenue from taxation for the financial years 1954–55, 1955–56, and 1956—57 are contained in the following table.

£

Item of Revenue1954–551955–561956–57
Consolidated Fund—
  Customs27,968,86530,065,57128,937,751
  Beer duty6,208,3596,567,3026,753,521
  Sales tax22,621,11923,443,49822,280,915
  Film-hire tax135,959142,021147,218
  Stamp duties6,905,5856,791,1726,889,389
  Death (including gift) duties9,385,1458,483,8108,268,365
  Land tax966,6321,227,6561,399,837
  Income tax88,316,88090,697,96598,117,734
      Totals162,508,544167,418,995172,794,730
Social security taxation—
  Social security charge56,175,15159,910,71761,635,224
National Roads Fund taxation—
  Highways revenue (less rebates)16,082,40317,499,06518,421,809
      Grand totals234,766,098244,828,777252,851,763

A summary showing the amounts received from direct taxes on income and from all sources during the last eleven years is now given.

YearDirect Taxes on Income (Including War and Social Security Charges on Income)Total Taxation
AmountPer Head of Mean PopulationPercentage of Total TaxationAmountPer Head of Mean Population
 ££s.d. ££s.d.
1946–4763,873,162361756.5113,119,04663180
1947–4863,581,244353652.0122,275,911671211
1948–4978,386,0574210360.1130,440,249701411
1949–5080,186,0204212559.2135,556,3197211
1950–5195,208,07549121060.3157,946,9758271
1951–52121,714,371622960.7200,549,80710279
1952–53124,209,3146116362.2199,770,2839983
1953–54130,517,095636463.4206,802,31710065
1954–55144,492,0316812461.5234,766,09811199
1955–56150,608,6827001061.5244,828,777113172
1956–57159,752,9587216263.2252,851,763115410

State Indebtedness (p. 816).—The public debt as at 31 March 1957 amounted to £757,119,696, an increase of £21,918,452 as compared with a year earlier. Of the 1957 debt figure, £100,425,184 was held in the United Kingdom, an increase of £4,621,150.

SOCIAL SECURITY AND WAR PENSIONS (pp. 198–233)

Revenue of the Social Security Fund for the year ended 31 March 1957, together with the 1955–56 figures in parentheses, was as follows: Charge on salaries and wages, £37,262,667 (£35,272,654); charge on other income of persons, £16,655,458 (£16,706,970); charge on company income, £7,717,099 (£7,931,093); grant from Consolidated Fund, £14,000,000 (£14,000,000); interest or. investments, £80,738 (£77,432); miscellaneous receipts, £140,557 (£122,832); total receipts, £75,856,519 (£74,110,981).

Payments from the Fund in 1956–57, with 1955–56 payments in parentheses, were: Monetary benefits, £57,921,763 (£55,457,934); emergency benefits and special assistance, £913,585 (£697,437); medical, etc., benefits, £16,772,712 (£15,547,154); administration expenses, £1,249,542 (£1,176,779); other payments, £10,342 (£4,488). Total payments from the Fund were therefore £76,867,944 (£72,883,792). The balance in the Fund at the end of March 1957 was £17,056,230.

Particulars of the various social security benefits (monetary and health) and war pensions in force at the end of March 1957, together with total payments during the financial year 1956–57, are shown in the following table.

Class of Benefit or PensionAs at 31 March 1957Payments During Year Ended 31 March 1957£
Number in ForceAnnual Value£
Social security benefits—
  Monetary—
    Superannuation83,4318,343,1007,908,795
    Age119,11823,954,15323,305,383
    Widows'12,1183,028,8692,934,265
    Orphans'27832,29931,599
    Family315,29819,346,68519,444,421
    Invalids'7,7731,748,8322,934,265
    Miners'422120,913121,048
    Sickness3,619 1,221,409
    Unemployment94 20,578
    Emergency2,991 729,309
    Special assistance  184,276
      Totals545,142 58,835,348
  Medical—
    Medical  3,797,062
    Hospital  4,869,453
    Maternity  1,414,767
    Pharmaceutical  4,572,556
    Supplementary  2,118,874
      Totals  16,772,712
  War pensions—
    First World War16,3153,100,9593,126,546
    Second World War24,5212,409,3352,410,859
    War Veterans' Allowances9,4733,177,4252,999,656
    South African War245,1065,160
    Mercantile Marine pensions273,4613,375
    Emergency Reserve Corps91,9981,943
    Kayforce20018,22317,990
      Totals50,5698,716,5078,565,529
  Sundry pensions and annuities52072,51671,585
      Grand totals596,231 84,245,174

LIFE ASSURANCE BUSINESS, 1956 (pp. 913–920)

Ordinary Department.—During the year ended 31 December 1956 New Zealand ordinary life assurance business maintained a rate of growth comparable with recent years. The preliminary figures for 1956 which follow include estimates for two companies whose returns are not yet available. Although the number of new policies issued (excluding annuity policies) decreased slightly from the 1955 figure (81,800 as against 83,391), the amount of new assurance totalled £100.3 million, a rise of £4.7 million over the previous year. The average sum assured per policy was thus £1,195 (£1,147 in 1955). The annual premiums payable on new business during 1956 amounted to £2.74 million (1955 figure, £2.77 million).

Policies in force at 31 December 1956 numbered 978,000, assuring £689.3 million, an average per policy of £705. Comparative figures for twelve months earlier were 927,934, £620.4 million, and £669.

Premium revenue from ordinary business during 1956 totalled £20.7 million, an increase of £1.7 million over the previous year.

Industrial Department.—Policies issued, sum assured, and annual premiums for new industrial business during the year were 27,700, £4.1 million, and £189,000 respectively. The 1955 figures were 29,885, £4.4 million, and £205,000. Industrial policies in force at the end of 1956 numbered 532,800, assuring £43.6 million, compared with 535,188 and £41.8 million for the previous year. The average face value per new policy was £146, and for policies in force £82.

PRICES

Retail Prices (pp. 967–971).—Details of the consumers' price index for the calendar year 1956, and for each of the quarters ended 31 March 1957 and 30 June 1957, are given below.

CONSUMERS' PRICE INDEX

(Revised Series)

Base: Weighted average twenty-one towns, 1955 (= 1000)

Calendar Year 1956Quarter Ended 31 March 1957Quarter Ended 30 June 1957
Food—
  Meat and fish9959921,028
  Fruits, vegetables and eggs1,2311,0911,141
  Other foods1,0021,0101,029
      All foods1,0571,0251,057
Housing—
  Rent1,0481,0891,097
  Home ownership1,0581,1011,118
      All housing1,0551,0981,112
Household operation—
  Fuel and light1,0151,0391,043
  Home furnishing1,0101,0151,016
  Domestic supplies and services1,0161,0561,057
      All household operation1,0131,0331,035
Apparel—
  Clothing992988988
  Footwear1,0391,0541,076
      All apparel9999981,001
Transportation—
  Public transport1,0071,1131,113
  Private transport1,0201,0521,063
      All transportation1,0161,0691,077
Miscellaneous—
  Tobacco and alcohol1,0101,0131,014
  Other supplies1,0351,0511,064
  Other services1,0661,1101,132
      All miscellaneous1,0301,0471,056
All groups1,0351,0411,056

Share Prices (pp. 980–984).—Index numbers of share prices in 1956, together with the average for the year ended March 1957, are given below.

GroupIndex Numbers Base Average for Each Group, 1938 (= 1000)
Average for 1956Average for Year Ended March 1957
Frozen meat2,8092,982
Woollens1,6711,598
Gas964962
Timber1,6481,650
Minerals1,1821,173
Miscellaneous (including breweries)1,3531,364
      All industrial groups1,4701,490
Banks1,1851,217
Insurance2,9943,026
Loan and agency2,8432,860
Miscellaneous2,1162,043
      All finance, etc., groups2,2612,270
      All groups combined1,8651,880

Monthly statistics for the first five months of 1956 and of 1957 are given below.

SHARE PRICES MONTHLY INDEX NUMBERS, BASE: YEAR 1938 (= 1000)

19561957
Industrial GroupsFinance GroupsAll GroupsIndustrial GroupsFinance GroupsAll Groups
January1,4382,2351,8361,5352,2601,897
February1,4512,2681,8591,5242,2971910
March1,4442,2461,8451,5152,3071911
April1,4382,2631,8511,5702,4121991
May1,4512,3121,8821,6162,4652,040

LABOUR STATISTICS

Wage-rates (pp. 990–993).—Index numbers of average nominal weekly wage-rates of adult male and adult female wage-earners in 1955 and 1956, and of adult male wage-earners as at 31 March 1957, are as follows.

Industrial GroupBase: All Groups 1954 (= 1000)
Adult MalesAdult Females
Average for YearAs at 31 March 1957Average for Year
1955195619551956
Provision of—
  Food, drink, etc.1,0911,1181,163938960
  Clothing, footwear, and textiles1,0231,0461,0861,0191,037
  Building and construction9911,0051,057  
  Power, heat, and light9589861,033  
  Transport by water and air1,2121,2431,303  
  Transport by land1,0321,0591,103  
  Accommodation, meals, and personal service9991,0071,0491,1271,138
Working in or on—
  Wood, wicker, seagrass, etc.1,0451,0661,121  
  Metal1,0931,1191,168  
  Stone, clay, glass, chemicals, etc.9811,0031,044  
  Paper, printing, etc.1,1081,1301,180961988
  Skins, leather, etc.9981,0141,054  
  Mines and quarries1,0111,0561,119  
  The land (farming pursuits)950952982  
      All groups combined1,0351,0551,1011,0391,056

Effective Weekly Wage Rates (p. 994).—The following table shows nominal and effective weekly wage rates of adult workers for the years 1955 and 1956, and of males only for the first quarter of 1957. The base of the index numbers is in each case the calendar year 1954 (= 1000).

YearRetail Prices (All Groups)Nominal Weekly Wage RatesEffective Weekly Wage Rates
MalesFemalesMalesFemales
19551,0241,0351,0391,0111,015
19561,0611,0551,056994995
1957—
  March quarter1,0671,101 1,032 

Average Rates of Wages (pp. 996–999).—The following table gives the prescribed minimum average weekly wage rates as at 31 March 1957, the series being confined to adult males.

OccupationAverage Wage (Four Principal Districts) at 31 March 1957
S.d.
Adult Males
Bakers—
  Journeymen2482
  Labourers2108
Butchers—
  First shopmen2646
  Second shopmen2465
  Butter-factory employees—
Churning and butter making:
  Others2306
Flourmilling—
  Kilnmen2404
  Assistant smuttermen2296
  Rollermen2580
Meat freezing—
  Slaughtermen, per 100 sheep1117
  Workers not otherwise specified2578
Meat preserving—
  Boners30410
  Others2597
  Sausage-casing making: Workers not otherwise specified2656
Aerated water and cordial making—
  Cordial makers2244
  Others2147
  Brewing: Others23811
Tailors—
  Journeymen23911
  Stock cutters (Factory)23911
  Footwear manufacturing workers24410
Woollen mills—
  Spinners24510
  Others2203
Building—
  Bricklayers2518
  Carpenters and joiners2481
  Plasterers2555
  Plumbers2595
  Builders' labourers2248
  General labourers2074
Sawmilling—
  Sawyers2639
  Tailers-out2412
  Yardmen, head2584
  Workers not specified2369
Boatbuilding: Shipwrights25510
Metal works, etc.—
  Boilermakers, journeymen24710
  Iron and brass moulders2509
  Tinsmiths, journeymen2533
  Engineering fitters, etc.2541
  Electrical wiremen2585
  Motor mechanics25911
Printing—
  Linotype operators (day)2636
  Letterpress machinists (day)2538
Skin and leather workers—
  Curriers2350
  All other workers20810
Mineral and stone workers—
  Flangers and moulders2381
  All other workers2166
Mining (coal)—
  Surface: Tippers2539
  Miners (on day wages, per shift)4910
  Truckers2359
  Quarrymen2109
Agricultural and pastoral workers—
  General farm hands1616
  Threshing-mill: Other workers, per hour5
  Ploughmen1616
  Shearers (per 100 sheep shorn)680
  Shepherds1616
  Wool pressers2458
  Dairy-farm workers1900
Railways—
  Engine drivers, average third and sixth years2839
  Firemen, average second and ninth years25211
  Guards, average first and third years2713
Tramways—
  Drivers2360
  Conductors (after six months)2272
Shipping and cargo working—
  Assistant stewards, first grade2310
  Assistant stewards, second grade2271
  Chief cooks2826
  Second cooks2557
  Able seamen24711
  Ordinary seamen, 18 years or over1908
  Waterside workers: Ordinary cargo2597
Hotel workers—
  First cooks2386
  Waiters1700
Miscellaneous—
  Retailing of apparel: Shop assistants2360
  Grocers' assistants2258
  Warehouse storemen2262

NOTE.—The following perquisites (as assessed for statistical purposes), as at 31 March 1957, should be added to the listed occupations: General farm hands, ploughmen and shepherds, 39s., and dairy-farm workers, 36s. per week for board and lodging; shearers and wool pressers, 7s. per day for rations; assistant stewards (first and second grade), chief and second cooks, able and ordinary seamen, 50s. 10d. per week as value of board and lodging; and hotel first cooks and waiters, 44s. 10d. per week as value of board and lodging.

Estimated Distribution of the Labour Force (p. 1058).—The following table supplies an estimated distribution of the total labour force at 15 October 1956 and 15 April 1957. (000)

Industrial GroupMalesFemalesTotals
October 1956April 1957October 1956April 1957October 1956April 1957
Primary industry139.6139.212.812.8152.4152.0
Manufacturing industry150.1156.945.245.9195.3202.8
Power, water, and sanitary services11.411.30.80.812.212.1
Building and construction69.469.61.41.370.870.9
Transport and communication72.072.99.39.681.382.5
Distribution and finance92.094.444.345.1136.3139.5
Domestic and personal services19.519.726.927.346.447.0
Administration and professional59.560.454.255.8113.7116.2
      Totals, in industry613.4624.4195.0198.6808.4823.0
Armed forces8.99.20.60.79.59.9
Unemployed0.30.4  0.30.4
      Totals, labour force622.6634.0195.6199.3818.2833.3

Half-yearly Surveys of Employment (pp. 1060–1063).—Following is a summary of the employment statistics as returned for 15 April 1957.

Primary Industry (Other than Farming, Fishing, and Hunting)Manufacturing IndustryPower, Water, and Sanitary ServicesBuilding and ConstructionTransport and CommunicationDistribution and FinanceDomestic and Personal ServicesAdministration and ProfessionalTotal, all Industries Covered
Male employees (full-lime)10,705139,01111,30349,33153,74669,74911,49645,887391,228
Male working proprietors4569,69396,3441,96910,1053,26057332,492
Female employees (full-time)25742,7647921,1948,98538,74714,15945,673152,571
Female working proprietors21,269  703,4262,0701897,035
Number of establishments63212,5442425,8992,54315,1434,5013,73945,243

The figures shown in the manufacturing industry column are further subdivided as follows.

Food, Drink, and TobaccoTextiles, Clothing, and LeatherBuilding Materials and FurnishingsEngineering and Metal WorkingMiscellaneous Manufacturing
Male employees (full-time)31,06611,58824,31052,31319,734
Male working proprietors1,0491,1592,0534,4101,022
Female employees (full-time)6,93622,5411,4535,1276,702
Female working proprietors45255236124105
Number of establishments1,8141,8752,5994,8661,390

Limitations in the coverage of the figures shown above are noted on page 1061.

Summary of Vacancies, Placements, and Disengaged Persons.—This table gives additional figures to those presented on page 1071.

Vacancies at End of MonthPlacements During MonthDisengaged Persons at End of Month
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Monthly average over calendar year—
  195510,1534,70114,8549013901,291441256
  19568,9584,02812,9868663971,26324019259
Monthly total—
  1957—
    January7,3213,68111,0021,1117091,82025530285
    February6,9723,44710,4191,2361,0972,33320215217
    March6,4323,1309,5628544331,28729931330
    April6,1503,0889,23869628297828321304
    May5,8393,0078,8461,3574811,83837530405

TRANSPORT

Shipping and Cargo Handled (pp. 368–377).—Statistics of entrances and clearances of vessels in the foreign trade in 1955 and 1956, and the total calls made in the foreign and coastal trade for the same years, are shown in the following table. The tonnage of cargo handled is also given.

Calendar Year
19551956
Entrances—
  Overseas—
    Number of vessels824780
    Net tonnage3,526,5683,364,548
Clearances—
  Overseas—
    Number of vessels800785
    Net tonnage3,450,4733,454,721
Total calls made—
  Overseas—
    Number of vessels2,2002,268
    Net tonnage9,189,0669,752,769
  Coastal—
    Number of vessels13,23912,984
    Net tonnage4,740,2674,855,295
  Total—
    Number of vessels15,43915,252
    Net tonnage13,929,33314,608,064
Tonnage of cargo handled—
  Inwards7,205,6787,096,060
  Outwards3,340,6713,499,382
  Transhipped408,610380,344
Total manifest tonnage10,954,95910,975,786

Statistics of shipping movement and cargo handled at New Zealand ports in 1955 and 1956 are given below.

(000)

Total Shipping MovementTotal Cargo Handled
1955: Net Tonnage1956: Net Tonnage1955: Tons1956: Tons
Auckland5,9886,0593,5093,338
Wellington7,8647,8712,6052,535
Lyttelton5,0125,4511,2951,446
Dunedin2,1022,284662627
Other ports6,7287,4512,8843,030
      Totals27,69429,11610,95510,976

Railway Transport (pp. 381–391).—Summarized statistics of railway transport in the years ended 31 March 1955, 1956, and 1957 follow.

UnitYear Ended 31 March
195519561957

* Including road motor and other subsidiary services.

Passenger journeys—
  Railways(000)24,73525,07525,377
  Railway road motor services(000)19,94619,27119,083
Tonnage of goods carried—
  TimberTons (000)7858931,130
  LivestockTons (000)647641628
  Other goodsTons (000)8,9049,1828,567
  TotalsTons (000)10,33610,71610,325
Net ton-miles runMillions1,1091,1481,136
Revenue—
  Railway operation£(000)27,00927,871 
  Total*£(000)31,28532,263 
Expenditure—
  Railway operation£(000)25,54226,775 
  Total*£(000)29,41730,829 

Road Transport (p. 408).—Statistics of motor vehicles licensed at 31 March 1956 and 1957 are as follows.

ClassAs at 31 March
19561957
Cars393,504425,018
Trucks—
  Light63,20060,946
  Heavy51,96360,522
Contract vehicles2,2072,166
Omnibuses2,0552,174
Taxis2,4362,438
Rental cars2,0101.977
Private-hire cars253246
Service cars733733
Trailers60,71077,988
Vehicles exempted from payment of licence fees (other than exempted Government-owned vehicles)50,68548,459
Government vehicles15,78916,543
Motor cycles24,59225,389
Power cycles4,1805,781
    Totals674,317730,380
Dealers' cars2,8753,079
Dealers' motor cycles130197
    Grand totals677,322733,656

EDUCATION (p. 171)

The following table shows the number of scholars and students receiving instruction in the educational institutions of New Zealand during the years 1955 and 1956. Registered private schools are included.

19551956

* Exclusive of students taking part-time courses with the Correspondence School, 1,345 in 1955 and 1,241 in 1956.

† Includes 891 students taking short courses at the agricultural colleges in 1955 and 676 in 1956.

Primary schools382,714399,466
Post-primary schools81,338*85,774*
Technical classes (part-time)38,41637,877
Universities11,74211,753
Teachers' training colleges2,7412,979
      Totals516,951537,849
Kindergartens6,5436,816

MISCELLANEOUS STATISTICS

Radio Licences (p. 444).—The number of radio licences for receiving stations in force on 31 March 1957 was 519,778, and for all classes of radio licences 525,049, compared with 516,792 and 521,813 respectively at 31 March 1956.

Horse Racing (p. 811).—The number of racing days in the calendar year 1956 was 373. Totalizator investments totalled £43,468,000 in 1956 (£44,697,000 in 1955) while Government taxation totalled £4,018,000 in 1956 (£4,144,000 in 1955).

Land Transfers (pp. 450–454).—Transactions under the Land Transfer Act showed decreases in both number and consideration for the second successive year. The average amount per transaction (town and suburban properties) in 1956–57 was £1,986, as compared with £1,950 in 1955–56 and £1,889 in 1954–55.

Year Ended 31 March
195519561957
Town and suburban properties—
  Number46,97841,37838,066
  Consideration £88,761,00080,684,00075,614,000
Country properties—
  Number9,5937,7227,268
  Area Acres2,123,5001,525,6091,449,962
  Consideration £47,964,00040,256,00039,064,000
All properties—
  Number56,57149,10045,334
  Consideration £136,725,000120,940,000114,678,000

Mortgages (pp. 887–897).—Particulars of gross totals of mortgages registered and discharged during the last three financial years are shown below. Mortgage registrations have shown a decrease in both number and value. Mortgages discharged have shown a decrease in number but an increase in value.

Year Ended 31 MarchRegistered*Discharged*
NumberAmountNumberAmount

* Inclusive of duplicate registrations and discharges.

 £ £
195558,03185,258,00037,93441,196,000
195655,58698,144,00034,08635,407,000
195751,25791,361,00032,66637,689,000

Justice.—Prisoners in gaols at end of calendar year (p. 260): 1955, 1,154, or 5.39 per 10,000 of population; 1956, 1,403, or 6.43 per 10,000 of population.

Registration of Aliens (p. 43).—The number of aliens on the register at 1 April 1957 totalled 26,381 (16,832 males, 9,549 females), compared with 1 April 1956 figures of 25,184 (16,337 males, 8,847 females).

Naturalizations (p. 42).—The number of certificates of naturalization issued to former aliens during the year ended 31 March 1957 was 627, compared with a total of 255 in the previous year. Certificates of registration as a New Zealand citizen were granted to 665 citizens of other countries of the Commonwealth or of former aliens (415 in 1955–56), and 292 certificates of registration (107 in 1955–56) to minor children (either citizens of other countries of the Commonwealth or former aliens).

Dog Registrations.—In connection with the problem of hydatids, it may be of interest to give the number of dog registrations. A special collection was made of dog registration statistics, and in the year ended 31 December 1955 there were 146,669 dogs registered in counties, of which 96,696 were in the North Island and 49,973 in the South Island. The total number of dogs registered in boroughs was 30,170, in town districts 1,082, and in road districts 218.

Unregistered dogs and those up to six months old are not included in these figures.

Chapter 1. SECTION 1—DESCRIPTIVE

AREA AND BOUNDARIES.—The administrative responsibilities of New Zealand devolve over a large area, the land territories of which consist principally of a number of islands of varying size in the South Pacific Ocean, together with a large normally uninhabited tract in the Antarctic Ocean. While the two largest and most important islands, the North and South Islands of New Zealand, are separated only by a relatively narrow strait, the remaining islands or island groups are very much smaller and in general are widely dispersed over a considerable expanse of ocean.

The boundaries of New Zealand inclusive of its most outlying islands and dependencies range from the northern limit of the 8th degree of south latitude to south of the 60th degree of south latitude, the complementary extremes of longitude with origin Greenwich being from the 160th degree of east longitude to the 150th degree of west longitude.

The precise boundaries as they now exist were originally defined in the relevant proclamations, letters patent, and legislation mentioned in the pages immediately following; general statements are contained in the description next presented relating to those areas over which New Zealand exercises jurisdiction or administrative responsibility. In all instances the measurement of longitude refers to the number of meridians east or west of Greenwich.

In proceeding from north to south, the first area, including the Tokelau Islands some 300 miles north of Western Samoa or 2,300 miles approximately north by east of Wellington (the capital of New Zealand), extends from the 8th to the 10th degrees of south latitude and from the 171st to the 173rd degrees of west longitude. The second area encloses the Cook and associated islands distant from Wellington in a north-easterly direction approximately 2,100 miles Lower (Southern) Group to 2,800 miles Northern Group and Niue. The Lower (Southern) and Northern Groups are bounded on the east and west by the 156th and 167th degrees of west longitude respectively, and on the north and south by the 8th and 23rd degrees of south latitude. Niue Island is situated in latitude 19° 02' south and longitude 169° 52' west.

Then follows a third zone covering the Trust Territory of Western Samoa, which is some 2,000 miles distant to the north-north-east and contained within the 13th to the 15th degrees of south latitude and the 171st to 173rd degrees of west longitude.

Farther south, and slightly north by east from New Zealand, a matter of roughly 1,000 miles from Wellington, are situated the Kermadeo Islands. These islands lie between the 29th and 32nd degrees of south latitude and the 177th and 180th degrees of west longitude.

New Zealand as defined after the extension of boundaries in 1863 constitutes the fifth and principal area. Its boundaries extend from the 33rd to the 53rd degrees of south latitude and from the 162nd degree of east longitude to the 173rd degree of west longitude.

The sixth area relates to the Ross Dependency which is administered by New Zealand and consists of the coasts of the Ross Sea with adjacent islands and territories between the 160th degree of east longitude and the 150th degree of west longitude, and south of the 60th degree of south latitude.

Jointly with the United Kingdom Government and the Government of Australia, New Zealand is responsible for the administration of the Trust Territory of the Island of Nauru. The administrative appointments for Nauru are made by the Australian Government, but New Zealand appoints a representative to the British Phosphates Commission, which controls the working of the phosphate deposits.

For statistical purposes, the following classification of the administrative area of New Zealand is the most convenient, the actual areas being also given. It should be noted also that statistics for “New Zealand” refer to the group of islands shown in (a) only, unless it is expressly stated that the other islands as a whole or in part are included.

New Zealand:

(a) Exclusive of Island Territories—Area in Square Miles
North Island44,281
South Island58,093
Stewart Island670
Chatham Islands372
Minor islands—
  Inhabited—
    Kermadec Islands13
    Campbell Island44
  Uninhabited (areas in parentheses)263
Three Kings (3). Snares (1). 
Solander (½). Antipodes (24). 
Bounty (½). Auckland (234). 
      Total New Zealand, exclusive of Island Territories103,736
(b) Island Territories—
Tokelau Islands, comprised of Fakaofo Island, Nukunono Island, Atafu Island.4
Cook and associated islands, comprised of—
  Lower (Southern) Group78
Rarotonga.  Aitutaki. 
Mangaia.  Mauke. 
Atiu.  Takutea. 
Mitiaro.  Manuae and Te-au-o-tu. 
Northern Group12
Palmerston.  Pukapuka. 
Penrhyn.  Suwarrow. 
Manihiki.  Nassau. 
Rakahanga. 
Niue Island100
    Total New Zealand, inclusive of Island Territories103,930
Ross Dependency(Estimated) 175,000
Trust Territory of Western Samoa1,133

The total area of the foregoing groups exclusive of the Ross Dependency and the Trust Territory of Western Samoa is 103,930 square miles. Elsewhere in this issue—viz., in the section on land tenure, settlement, etc.—the aggregate area of New Zealand appears as 66,390,700 acres—i.e., 103,736 square miles. The latter area does not include the Cook and associated islands or the Tokelau Islands.

The relevant Proclamations, defining from time to time the administrative area of New Zealand, are briefly referred to in the following paragraphs.

The Proclamation of British sovereignty over New Zealand, dated 30 January 1840, gave as the boundaries of what was then the colony the following degrees of latitude and longitude: On the north, 34°30' S. lat.; on the south, 47° 10' S. lat.; on the east, 179° 0' E. long.; on the west, 166° 5' E. long. These limits excluded small portions of the extreme north of the North Island, and of the extreme south of Stewart Island.

In 1842, by Letters Patent, and again by the Imperial Act 26 and 27 Vict., c. 23 (1863), the boundaries were altered so as to extend from 33° to 53° of south latitude and from 162° of east longitude to 173° of west longitude. The minor islands mentioned earlier were thus brought within the extended boundaries of New Zealand, being assigned to the appropriate province on the occasion of the 1847 Proclamation dividing the country into two provinces. The number of provinces was increased in later years, though all were finally abolished in 1875. By Proclamation bearing date 21 July 1887 the Kermadec Islands were declared to be annexed to and to become part of the then colony of New Zealand.

By Proclamation of 10 June 1901 the Cook Islands, and all the other islands and territories situate within the boundary lines mentioned earlier, were included as from 11 June 1901.

The Territory of Western Samoa was formerly administered pursuant to a mandate conferred upon His Britannic Majesty, to be administered on his behalf by the Government of New Zealand, and confirmed by the Council of the League of Nations on 17 December 1920. Following the replacement of the League of Nations by the United Nations, a draft Trusteeship Agreement for Western Samoa was prepared by the New Zealand Government and submitted to the General Assembly of the United Nations late in 1946. This draft agreement replaced the original mandate and thus brought the Territory within the framework of the international trusteeship system established under the United Nations Charter. Under the new agreement the New Zealand Government assumed direct responsibility for the administration of Western Samoa. The agreement was approved by the General Assembly on 13 December 1946. Western Samoa is comprised of two large islands, Upolu and Savai'i, and the small islands of Manono, Apolima, Fanuatapu, Namu'a. Nu'utele, Nu'ulua, and Nu'usafe'e.

By Imperial Order in Council of 30 July 1923 the coasts of the Ross Sea (in the Antarctic regions), with the adjacent islands and territories between the limits specified earlier, were declared a British settlement within the meaning of the British Settlements Act 1887. This region was named the Ross Dependency, and placed under the administration of the Governor-General of New Zealand. The Dependency is normally uninhabited. However, part of the Dependency became one of the main bases for the New Zealand expedition to the Antarctic in the summer of 1956–57.

By Imperial Orders in Council of 4 November 1925 the Tokelau Islands (consisting of the islands of Fakaofo, Nukunono, and Atafu, and the small islands, islets, rocks, and reefs depending on them, a total area of only four square miles) were excluded from the Gilbert and Ellice Islands Colony, and placed under the administration of the Governor-General of New Zealand. In accordance with a provision of the second of these Orders in Council, the Governor-General's authority and power in connection with the administration of the islands were, by New Zealand Order in Council of 8 March 1926, delegated to the Administrator of Western Samoa.

By the Tokelau Islands Act 1948, which came into operation on 1 January 1949, the Tokelau Islands were declared to form part of New Zealand. This Act emerged as the result of an agreement between the United Kingdom and New Zealand Governments.

GEOGRAPHICAL FEATURES.—Coast Line.—Since the combined length of the North and South Islands extends just over a thousand miles, and since the width of neither Island exceeds 280 miles at its broadest point, New Zealand possesses a very lengthy coast line in proportion to its area. With the exception of the low-lying North Auckland Peninsula, the New Zealand landmass lies along a south-westerly and north-easterly axis, parallel to the direction of its mountain chains.

By reason of the latter fact the coast line is, on the whole, not greatly indented; and, as a consequence, New Zealand is not well endowed with natural harbours. In the North Island, Auckland and Wellington are the only two safe natural harbours of which the fullest commercial use can be made. On the east coast of the North Auckland Peninsula several deep and sheltered harbours exist, but as the surrounding country is comparatively undeveloped they are of little economic consequence at present. In the South Island the Marlborough Sounds and the West Coast Sounds form perfect land-locked harbours, but owing to their situations and to the rugged nature of the terrain they have—with the exception of Queen Charlotte Sound—little or no commercial utility. Where vital localities have not been endowed with ideal harbours it has been necessary to improve existing facilities by dredging and by breakwater construction, etc. In this manner efficient ports, capable of accommodating overseas vessels, have been formed in Lyttelton, Otago, and Bluff harbours. On the west coast of both Islands the strong ocean drifts and high seas cause shoaling at river mouths and harbour entrances, while on the east coast of the South Island similar circumstances prevail, due to the large quantities of shingle brought down by the rivers being spread along the coast by ocean currents. The mountainous nature of the country makes the haulage of goods to and from the better equipped natural harbours both costly and difficult, and the construction and maintenance of further ports at various points along the coasts of both Islands has been necessary, either by dredging river mouths or by harbour-construction work.

Mountains.—The mountainous nature of New Zealand is one of its most striking physical characteristics, less than one-quarter of the land surface lying below the 650 ft. contour. In the North Island the higher mountains occupy approximately one-tenth of the surface; but, with the exception of the four volcanic peaks of Egmont (8,260 ft.), Ruapehu (9,175 ft.), Ngauruhoe (7,515 ft.), and Tongariro (6,458 ft.), they do not exceed an altitude of 6,000 ft. Of these four volcanoes only the first named can be classed as dormant. Ruapehu was particularly active from March 1945 to the end of that year, being responsible for considerable deposits of volcanic ash over a very wide area, while spectacular activity was exhibited by Ngauruhoe in 1949 and again in 1953 and 1954. In both cases violent eruptions alternated with quieter periods. Other volcanoes include Mount Tarawera and White Island, each of which has, upon one occasion within historical times, erupted with disastrous consequences. Closely connected with the volcanic system are the multitudinous hot springs and geysers.

The mountain system of the North Island runs generally in a south-west direction, parallel to the coast, from East Cape to Cape Turakirae, and includes the following ranges from the north: Raukumara, Huiarau, Ruahine, Tararua, and Rimutaka. This chain is flanked on the west between the Huiarau and Ruahine by the Ahimanawa, Kaweka, and Kaimanawa ranges, while west of the Kaimanawa is the National Park volcanic group comprising Mounts Ruapehu, Ngauruhoe, and Tongariro. The Hauhangaroa and Rangitoto ranges run in a northerly direction from the National Park group. In the east the Colville and Moehau ranges parallel the length of the Coromandel Peninsula. Mount Egmont forms the only country above 4,000 ft. on the west coast of this island.

The South Island is much more mountainous than the North, but shows fewer manifestations of recent volcanic activity. Along almost the entire length of the Island runs the massive chain known as the Southern Alps, which attains its greatest height in Mount Cook (12,349 ft.), while no fewer than seventeen peaks exceed 10,000 ft. West and north-west of the main portion of the Southern Alps are the Victoria, Brunner, and Lyell ranges and the Tasman Mountains, the Victoria range being flanked by the Paparoa range. To the north run the St. Arnaud and Raglan ranges, while to the north-east are the Spenser Mountains and the Kaikoura and Seaward Kaikoura ranges, the two latter ranges running parallel to the east coast. The south portion of the Southern Alps breaks up into a miscellany of ranges dominating the mountainous Fiord and north-western Southland regions.

As might be expected, the higher mountains of the South Island have exerted a greater influence on the economic development of the country than those of the North Island. For many years the Southern Alps were an effective barrier to communication by land between the east and west coasts, while their climatic effects on the Canterbury plains and Otago plateaux determined the types of cultivation undertaken. Moreover, the existence of much elevated open country led to the development of pastoral holdings on a large scale. While the mountains in the North Island are not as high nor as extensive as those of the South Island, in the early days they effectively isolated various portions of the coastal plains and valleys. Their effect on climatic conditions, however, is considerably less, the rainfall being more evenly distributed. Owing to this more even distribution of the rainfall, and to the existence of considerable areas of lower relief, the foothills of the mountain systems were heavily wooded, and so proved a hindrance to agrarian development.

In the 1931 issue of the Year-Book a list was given, not claimed as exhaustive, of 223 named peaks of 7,500 ft. or more in altitude. Below is a list of the peaks restricted to the four largest volcanic cones in the North Island and to mountains of a minimum height of 9,000 ft. in the South Island. The list has been compiled from various sources, and does not purport to be free from omissions.

Mountain or PeakHeight (Feet)
NORTH ISLAND
Ruapehu9,175
Egmont8,260
Ngauruhoe7,515
Tongariro6,458
SOUTH ISLAND
Kaikoura Ranges
  Tapuaenuku9,465
  Alarm9,400
Southern Alps
  Cook12,349
  Tasman11,475
  Dampier11,287
  Silberhorn10,757
  Lendenfeldt10,450
  David's Dome10,443
  Malte Brun10,421
  Torres10,376
  Teichelmann10,370
  Sefton10,354
  Haast10,294
  Elie de Beaumont10,200
  Douglas Peak10,107
  La Perouse10,101
  Haidinger10,059
  De la Beche10,058
  The Minarets10,058
  Aspiring9,975
  Hamilton9,915
  Glacier Peak9,865
  Arguilles Rouges9,731
  Nazomi9,716
  Darwin9,715
  Chudleigh9,686
  Annan9,667
  Lowe9,653
  Haeckel9,649
  Le Receveur9,562
  Goldsmith9,532
  Big Mac9,511
  Conway Peak9,510
  Bristol Top9,508
  Walter9,507
  Grey9,490
  Green9,307
  Hutton9,297
  D'Archiac9,279
  Bell9,276
  Hochstetter Dome9,258
  Earnslaw9,250
  Nathan9,200
  Barnicoat9,183
  Sibbald9,181
  Arrowsmith9,171
  Spencer9,167
  The Footstool9,073
  Rudolf9,039
  The Dwarf9,025
Darran Range
  Tutoko9,691
  Madeline9,042

Glaciers.—In keeping with the dimensions of the mountain system, New Zealand possesses, in the South Island, a glacial system of some magnitude. Of the glaciers the largest is the Tasman, which, with others of comparable site, rises in the more elevated area surrounding Mount Cook. Flowing down the eastern slope of the range, the Tasman Glacier has a length of 18 miles and a width of 1½ miles. In common with other glaciers on the eastern slope, of which the more important are the Murchison (11 miles), the Mueller (8 miles), the Godley (8 miles), and the Hooker 71¼ miles), its rate of flow is slow, while its terminal face is at an altitude of somewhat over 2,000 ft. On the western slope of the range, owing to the greater snow precipitation, the glaciers are more numerous and descend to lower levels, while the steeper slope gives them a more rapid rate of flow. The two largest of these are the Fox and the Franz Josef, with lengths of 91¾ miles and 81½ miles respectively, and terminal faces at altitudes of 670 ft. and 690 ft.

As will be realized, these glaciers are an important tourist attraction, and as such have definite economic significance. Moreover, those glaciers on the eastern slopes which feed rivers utilized for irrigation and hydro-electric purposes are valuable in that they help to ensure a steady volume of water throughout the year.

Rivers.—Of the numerous New Zealand rivers few are cf sufficient length or volume to be navigable. Moreover, owing to the high relief of the country, they are mostly swift-flowing, while, as mentioned previously, nearly all are obstructed at their mouths by bars. For the purpose of internal communication, therefore, they are of little economic utility, and only in two or three isolated instances have they been thus consistently used. With improved roading conditions, however, their traffic has become negligible even in these cases.

As sources of hydro-electric power New Zealand rivers are of considerable importance, since their rapid rate of flow and dependable volume of ice-free water make them eminently suitable for this purpose. At the present time the Waikato and the Mangahao in the North Island and the Waitaki, Cobb, Clutha, and Waipori in the South arc used for major hydro-electric schemes. The characteristics just mentioned are also important for purposes of irrigation, but, owing to the country's reliable rainfall, there are few areas other than in Canterbury and Otago where the rivers are so utilized.

In the 1932 Year-Book appears an account of the rivers of New Zealand, but space in this issue is however, available only for a list of the more important ones. The lengths of rivers shown have been recently revised and differ in many instances from those previously given. For purposes of uniformity, the length of a river is taken to be the distance from the mouth to the farthest point in the system, whether this should happen to bear the same name or that of an affluent, and is inclusive of the estimated course of a river flowing into and emerging from any lake in the system.

 Miles
NORTH ISLAND
Flowing into the Pacific Ocean
  Piako65
  Waihou (or Thames)95
  Rangitaiki95
  Whakatane65
  Waiapu (from source Mata River)75
  Waipaoa (from source Waipapa Stream)70
  Wairoa (from source Hangaroa River)85
  Mohaka (from source Taharua River)95
  Ngaruroro90
  Tukituki70
Flowing into Cook Strait
  Ruamahanga90
  Hutt35
  Otaki30
  Manawatu120
  Rangitikei130
  Turakina70
  Wangaehu100
  Wanganui180
  Waitotara55
  Patea75
Flowing into the Tasman Sea
  Waitara85
  Mokau85
  Waikato (from source Upper Waikato River)270
  Wairoa (from source Waiotu Stream)115
  Hokianga (from source Waihou River)45
SOUTH ISLAND
Flowing into Cook Strait
  Aorere (from source Spec River)45
  Takaka (from source Cobb River)45
  Motueka70
  Waimea (from source Wai-iti River)30
  Pelorus40
  Wairau105
  Awatere70
Flowing into the Pacific Ocean
  Clarence130
  Conway30
  Waiau-uha (or Waiau)105
  Hurunui90
  Waipara40
  Ashley60
  Waimakariri100
  Selwyn50
  Rakaia90
  Ashburton70
  Rangitata (from source Clyde River)75
  Opihi50
  Pareora35
  Waihao45
  Waitaki (from source Hopkins River)135
  Kakanui40
  Shag45
  Taieri175
  Clutha (from source Makarora River)210
Flowing into Foveaux Strait
  Mataura140
  Oreti120
  Aparima (Jacobs River)70
  Waiau (from source Clinton River)135
Flowing into the Tasman Sea
  Hollyford50
  Cascade40
  Arawhata45
  Haast60
  Karangarua25
  Cook25
  Waiho (from source Callery River)20
  Whataroa35
  Wanganui35
  Waitaha25
  Hokitika40
  Arahura35
  Taramakau50
  Grey75
  Buller (from source Travers River)110
  Mokihinui35
  Karamea50
  Heaphy25

The discovery in 1861 that the beds of numerous rivers in the South Island contained extensive deposits of alluvial gold was of considerable importance in the economic development of the country. Not only did it lead to an increase in population and in wealth, but, through the following of the numerous streams to their sources, it also led to the rapid exploration of large tracts of remote country. The exploitation of these deposits has been carried on with varying degrees of success up to the present time by both manual and mechanical means.

A further factor in connection with the rivers is that, owing to the very successful acclimatization of fresh-water fish, notably trout, many of them now provide exceptionally fine fishing.

Lakes.—In considering New Zealand's numerous lakes a distinction can be made, especially from the scenic viewpoint, between the lakes of the two Islands. Surrounded by extremely rugged country the larger lakes of the South Island are distinguished by the grandeur of their alpine settings, while those of the North Island, situated on a volcanic plateau, are of interest by reason of the neighbouring thermal activity. Owing to the excellence of their fishing, the North Island lakes possess an added tourist attraction. In both Islands the larger lakes are situated at high altitudes, and their consequent remoteness renders them unsuitable as a means of communication. In their functions as reservoirs the lakes of both Islands are of vital importance for the maintenance of the streams draining them and as a means of flood prevention. More especially is this the case where hydro-electric schemes are involved, Lakes Waikaremoana and Taupo in the North Island, and Lakes Coleridge, Pukaki, Tekapo, Wanaka, Hawea, and Wakatipu in the South Island, being of particular significance in this respect.

An article on the lakes of New Zealand will be found in the 1932 Year-Book. Some particulars of the more important are given in the following table.

LakeLength, in MilesGreatest Breadth, in MilesArea, in Square MilesDrainage Area, in Square MilesApproximate Volume of Discharge, in Cubic Feet Per SecondHeight Above Sea Level, in FeetGreatest Depth, in Feet
NORTH ISLAND
Taupo25172381,2505,0001,177534
Rotorua63215842091584
Rotoiti10¾1426500913230
Tarawera1575 1,032285
Waikaremoana12211287722,015846
Wairarapa104271,250  64
SOUTH ISLAND
Rotoiti5286 1,997228
Rotoroa78146 1,470 
Brunner5416145 280357
Kaniere5811 422646
Coleridge1131870 1,667680
Tekapo124325805,0002,323620
Pukaki105315156,0001,588 
Ohau103234245,0001,720 
Hawea205485185,7001,062 
Wanaka30475960 922 
Wakatipu5231121,16213,0001,0161,242
Te Anau3361321,32012,660694906
Manapouri12656416 5961,458
Monowai1211251700600 
Hauroko203251951,800611 
Poteriteri17217162 96 
Waihola1⅛3 1/32,200 (Tidal)52
Ellesmere1610107½745 (Tidal)45

GEOLOGY.—An article on the geology of New Zealand, prepared by Dr. J. Henderson, M.A., F.R.S.N.Z., former Director of the Geological Survey, is contained in the 1940 and earlier editions of the Year-Book. For more detailed information the reader is referred to the treatises of Professors Park and Marshall, the bulletins of the Geological Survey, and the many papers that have appeared in the “Transactions of the Royal Society of New Zealand”.

EARTHQUAKES.—An article on earthquakes in New Zealand appeared in the 1942 and earlier issues of the Year-Book. The information given below has been supplied by Mr. R. C. Hayes, Superintendent of the Seismological Observatory.

Seismicity and Earthquake Distribution.—A comparison between the records of destructive earthquakes in New Zealand and those in other seismic countries shows that the seismicity of New Zealand, on the whole, is surprisingly high. However, this is due to the occurrence of a large number of earthquakes of the semi-destructive type (M.-M. 7) with comparatively few major destructive shocks (M.-M. 8–12).

During the period 1835–1956, 81 destructive earthquakes are known to have occurred in New Zealand, 61 of which were of the semi-destructive type (not exceeding intensity M.-M. 7). Of the remainder 14 were of intensity M.-M. 8–9 and 6 of intensity M.-M. 10–12.

The total number of earthquakes of all intensities, and the maximum intensity, reported felt in New Zealand in each of the years 1922 to 1956 were as follows.

YearNumber of Earthquakes Reported FeltMaximum Intensity of Heaviest Shock
R.-F. ScaleM.-M.* Scale

* Modified Mercalli Scale of 1931, which is now used for recording earthquake effects in New Zealand.

19221,18787
19237665–6
19247076–7
19257687
192617387
192710787
19288087
19296781010
193074887
19314321010
193231398+
193310876–7
193423098 +
193515076–7
193612365–6
19371796–76
193813287
193915776–7
194012076–7
194110787
19421989+9
194317687
19449565+
194512776+
194630287
19472338+7+
19481278+8
1949976–76
195018876–7
195122687–8
1952836–76
195313387
1954946–76
1955846–76
195613187

The abnormally large number of earthquakes reported in the year 1922 was due to the swarm of local shocks in the Taupo region in the latter half of that year. Abnormally large numbers of shocks also occurred in 1929–30, due to aftershocks of the Buller earthquake of 17 June 1929.

Summary of Earthquake Activity in New Zealand During the Year 1956.—During 1956 there were two earthquakes of sufficient strength to cause minor damage.

The most severe one occurred on 29 December in the region between Opotiki and Tolaga Bay, where reports indicate an intensity of at least M.-M. 7 at some places in the vicinity of Toatoa. Intensity 6 was experienced at Opotiki and Motu. The instrumental magnitude was 6½. The shock was perceptible to the western Bay of Plenty and as far south as parts of Northern Manawatu. There were a considerable number of aftershocks and minor tremors.

The other shock causing damage occurred on 3 March, with maximum intensity M.-M. 6–7 in the Tokaanu area. The instrumental magnitude was 5.3. The origin was some ten miles north-west of Tokaanu, at very shallow depth. Owing to the small focal depth, the shock was not reported felt at any places beyond about sixty miles from the epicentre. There were a large number of aftershocks and minor tremors.

On 30 January a series of shocks affected a region extending from the Auckland area to eastern Bay of Plenty. No intensities above M.-M. 5 were reported. The disturbances originated about seventy miles north-east of Tauranga.

On 14 March another series of shocks originated off the Bay of Plenty. These affected mainly the Great Barrier Island, but some of the shocks were also felt at Auckland and in the Coromandel Peninsula.

A third disturbance, originating off the Bay of Plenty on 8 April, gave rise to a shock felt on Great Barrier Island, the Coromandel Peninsula, and in the Auckland area. Intensities up to M.-M. 4 were reported.

Local shocks reaching M.-M. 5 were experienced at Wanganui on 2 May and 15 June.

A total of 131 shocks were reported felt during the year; 110 of these were felt in the North Island and 27 in the South Island, while 6 shocks were felt in some part of both Islands.

Regional Distribution.—New Zealand earthquake statistics over the past hundred years or so show that certain parts of the country are subject to almost continuous seismic activity with occasional destructive shocks, while other parts are more or less free from seismic disturbances. By combining early earthquake records with the more precise data of later years it is possible to divide the country roughly into four seismic regions. These regions are classified below, in order of seismicity.

  1. All areas of the North Island east and south of an approximate line from the vicinity of Whakatane in the Bay of Plenty to the vicinity of Hawera in South Taranaki, and all areas of the South Island north of an approximate line from the vicinity of Hokitika on the West Coast, through the region of Lake Coleridge, to Banks Peninsula:

  2. South Auckland, western Bay of Plenty, Waikato, and Taranaki (except the southern portion):

  3. Areas of the South Island, south of the boundary of region I:

  4. Areas north of Auckland.

The following table shows the average frequency of earthquakes in each of the four regions defined above.

RegionAverage Number of Earthquakes Per Year (1921–1940)Average Number of Destructive Shocks Per Decade (1835–1940)Relative Seismicity Based on Destructive Shocks
Minor Shocks (R.-F. 8)Major Shocks (R.-F. 9. 10)
I97.84.11.711.5
II23.01.1 1.1
III12.10.1 0.1
IV1.1  0.0

The boundaries between the seismic regions are not well defined, since one region generally merges more or less imperceptibly into another. Further, seismic frequency is not uniform. This leads to the number of shocks being considerably above the average in some years and below it in others. The normal irregularity is increased by the occasional occurrence of earthquake swarms in certain regions. Probably the most notable swarm in New Zealand was that which occurred in the Taupo region in the latter half of 1922. The number of minor local shocks in this swarm was so great that only the stronger ones, or those affecting the adjacent region, were used in determining the average frequency of region I. Major earthquakes occur chiefly in the eastern and southern parts of region I.

Deaths Due to Earthquakes.—During the period 1848–1956 the number of deaths recorded in New Zealand as due directly or indirectly to earthquakes was 284. Of these, 255 were due to the Hawke's Bay earthquake of 3 February 1931.

CLIMATE.—The collection of climatic data for the use of Government Departments and the general public is a function of the New Zealand Meteorological Service. It maintains approximately 140 climatological stations within New Zealand and 60 on islands of the South Pacific. In addition, there are 1,070 rainfall stations in New Zealand and 90 in the Pacific Islands. Most of these stations are operated by public bodies, Government Departments, or voluntary observers. Additional records are provided by over a hundred stations which report by telegraph or radio for forecasting purposes.

A general description of the climate of New Zealand is contained in an article supplied by Dr. M. A. F. Barnett, O.B.E., M.Sc., Ph.D., F. Inst. P., Director of the New Zealand Meteorological Service, which was included in the 1942 and earlier editions of the Year-Book.

Detailed climatological statistics are published annually in the Meteorological Observations. Work on this publication ceased during the war years, and this has delayed the appearance of recent issues, the latest available being that for 1950. Current statistics appear monthly in a climatological table included in the New Zealand Gazette.

The following table provides a brief summary of the main climatological elements for selected locations.

CLIMATOLOGICAL AVERAGES (OVERA PERIODOF YEARS)

StationAltitudeAverage Annual Rainfall*Average Number of Rain DaysAverage Bright SunshineTemperature in Shade, Degrees Fahrenheit
Mean Daily MaximumMean Daily Minimum
Jan.JulyYearJan.JulyYear

* Rainfall averages refer to standard period (1921–1950).

† Normals relate to present site.

 Ft.In. Hrs. 
Te Paki, Te Hapua20056.711692,16972.859.265.957.045.952.0
Auckland16048.801822,05972.856.764.960.046.153.2
Tauranga1053.421522,37674.557.466.154.740.147.6
Hamilton East13145.951612,05674.655.65.551.737.144.7
Rotorua96954.441452,06174.353.63.651.336.944.5
Gisborne1239.751472,28475.755.865.953.839.547.1
Onepoto, Lake Waikaremoana2,10076.90183 68.147.658.042.037.745.0
New Plymouth16061.161862,21169.154.862.255.242.949.3
Napier531.201142,40673.955.164.857.039.448.7
Wanganui7234.321552,18271.054.263.055.941.048.9
Grasslands Division, Palmerston North11039.051701,83970.553.162.254.339.146.9
Waingawa, Masterton34038.011422,09174.353.363.750.535.843.4
Kelburn, Wellington41547.471662,04567.651.259.854.441.548.3
Nelson2438.631162,49071.254.263.054.537.146.1
Blenheim1225.841102,44972.053.063.552.735.144.4
Hanmer1,27045.251331,96671.648.260.947.829.039.1
Hokitika15110.401971,89865.351.758.850.935.643.8
Lake Coleridge1,19531.54114 70.148.160.648.629.840.2
Christchurch2226.281251,98870.250.060.952.734.744.0
Timaru5623.461161,92770.049.460.751.433.442.8
Milford Sound20253.50194 64.448.357.050.034.242.5
Queenstown1,10032.031042,00369.845.658.849.030.940.9
Alexandra52013.22992,14372.644.660.950.828.040.2
Musselburgh, Dunedin529.741611,71565.249.359.051.236.244.3
Invercargill3243.302011,64066.348.858.348.433.841.7

Brief Review of 1955: Year.—Rainfall was well above average in Northland, in eastern districts, from Gisborne to Castlepoint, in the south-western part of the Wellington Province, and in Marlborough Sounds and northern coastal districts of Nelson; in coastal areas of northern Hawke's Bay the departure reached about 50 per cent. It was appreciably drier than usual in Waikato and Canterbury; in parts of South Canterbury the departure exceeded 30 per cent.

The year 1955 was one of the warmest on record, with an average departure from normal over the whole country of 1.6° F. From Northland to Waikato and in mid-Canterbury departures exceeded 2° F. Other very warm years in New Zealand were 1910, 1916, 1924, and 1938.

For the fifth year in succession sunshine was mainly below normal, and departures were greatest over the North Island. The total of 1,660 hours for Whangarei was one of the lowest ever recorded in any town in the North Island.

Seasonal Notes.—A warm spell which had started in November 1954 continued until May 1955. In the North Island in February mean temperatures were mainly about 5° F. above normal, approximately the same as February 1935 and February 1938, the two warmest months on record February was also unusually cloudy.

January was a dry month; in fact, for many parts of the North Island it was the driest January since 1928. By the end of the month the countryside looked very parched. In the Waikato the dry weather continued until the middle of April, causing a serious shortage of green feed. Most other districts received good rain in February or March.

There were two periods of particularly heavy rain in February in western districts from Levin to Westport, with flooding in the Wairau, the Buller, and several rivers rising in the Tararua ranges. In Northland, March proved to be a very wet month, and many areas were flooded on 15 March after five days of heavy rain.

April was exceptionally dry in Canterbury and North and Central Otago. On the last three days of the month there was a temporary change to wintry conditions with strong south-westerly gales over the South Island and snow on the mountains of the North Island.

In May a combination of mild weather with adequate rainfall proved beneficial, and in most districts good growth was reported. During a spell of northerly winds from 4.8 May heavy rain was reported in central districts, with serious flooding in parts of Wairarapa and Marlborough.

The winter months from June to August were unusually dull. In July a high frequency of south-easterly winds caused very wet conditions in eastern districts, with flooding on several occasions, notably from 21–24 July on the Taieri Plains. July was also colder than usual, especially in inland districts of the South Island. From 12–14 July snow affected many districts as far north as Rotorua, and there were some exceptionally heavy falls on the high country of the North Island. However, August was a mild month and provided favourable conditions for early lambs.

The spring season from September to November was marked by unusually warm temperatures and an absence of cold spells. In dairying districts conditions were favourable, but on the East Coast rainfall proved rather inadequate and there was a shortage of feed. On 5 October heavy rain resulted in the flooding of thousands of acres of farm lands in central districts of Northland.

The warm spell continued through December, which was in some respects a month of contrasts. In Otago it was one of the driest, sunniest, and warmest Decembers on record, but in Northland it was exceptionally dull and wet. Flooding was reported over large areas of Northland on 6, 17, and 18 December. Feed was plentiful in Auckland and Hawke's Bay, but in the South Island pastures were drying up.

Brief Review of 1956: Year.—1956 was an exceptional year in the North Island, being in fact the wettest in seventy years of records (equal with 1893), the warmest in sixty years (equal with 1916) and the cloudiest in thirty years (equal with 1953).

Rainfall was well above normal over the whole of the North Island and also in parts of Nelson, Marlborough, and Canterbury. Departures exceeded 50 per cent over considerable areas of the Auckland district, where many stations established new records. Southland was the only part of the country with rainfall appreciably below normal.

Temperatures were above normal over the whole country. The average departure was 2.0° F. over the North Island and 1.6° F. over the South Island.

Sunshine was below normal, except in most of Westland and on the Southland coast. The deficiency exceeded 200 hours over the greater part of the North Island and also in the Mackenzie County of Canterbury and in Central Otago. Five stations received record low totals, including Napier, which had only 2,026 hours, nearly 400 hours less than normal.

Seasonal Notes.—January was an exceptionally warm month. For the South Island it was easily the warmest month on record. The temperature of 101° F. at Ashburton on 19 January was the highest temperature ever officially recorded in this country. Drought conditions developed from Canterbury southwards following several months of low rainfall and warm temperatures, but good rains at the end of the month brought relief to all but North Canterbury.

February and March were both very dry months in the southern half of the South Island. For the seven-month period from September 1955 to March 1956, parts of Central Otago and inland South Canterbury had the lowest rainfall in 60 years of record.

The following month was the warmest April on record and it was also rather humid. Growth was unusually good for the time of the year, but the Auckland district suffered from excessive rain. During the first four months of the year stock in many parts of the North Island were severely affected by several outbreaks of facial eczema.

The four-month period from May to August was unusually wet and unsettled in the North Island, where the health of stock was adversely affected. In the South Island conditions were drier and mainly favourable.

By contrast September was dry, and sunny in most district. Lambing conditions varied considerably; in the South Island losses occurred during south-westerly weather from 13–15 September.

The last three months of the year were rather unsettled, and wetter than usual. Conditions were favourable for growth, but shearing and haymaking were seriously delayed.

SUMMARYOF METEOROLOGICAL OBSERVATIONS

The observations from which the following summary was compiled for the year 1955 were taken at 0900 hours New Zealand Standard Time—i.e., 2100 hours Greenwich Mean Time.

StationTemperatures in Shade—Degrees FahrenheitBright Sunshine (Hours)Rainfall
Mean Daily MaximumMean Daily MinimumApproximate Mean Temp.Extremes for 1955Extremes*
Maximum and MonthMinimum and MonthAbsolute MaximumAbsolute MinimumTotal Fall (Inches)No. of Rain Days

* Highest and lowest temperatures for duration of records.

Te Paki, Te Hapua68.053.960.982.8 Feb.32.2 July82.827.01,88359.86199
Auckland67.454.761.084.0 Feb.37.1 July90.431.91,99847.28165
Tauranga67.050.458.785.2 Feb.27.4 June91.922.52,16749.47155
Hamilton East67.047.257.184.9 Feb.23.8 July94.414.21,80341.03157
Rotorua65.346.956.187.0 Feb.25.7 June98.021.31,87347.98156
Onepoto Lake Waikaremoana59.046.652.881.2 Feb.30.8 June88.122.2 93.11184
Gisborne67.348.958.192.0 Feb.28.7 June95.825.92,09749,86145
New Plymouth63.550.957.278.5 Mar.33.1 June86.029.12,03059.31155
Napier66.450.558.593.0 Feb.29.0 June96.527.52,17439.51116
Wanganui64.550.757.686.2 Feb.30.8 July88.028.62,05238.34139
Grasslands Division, Palmerston North64.648.156.486.1 Feb.26.7 June87.021.21,79736.89171
Waingawa, Masterton65.345.155.287.0 Jan.24.0 June95.419.52,04343.37170
Kelburn, Wellington60.749.655.277.3 Mar.34.0 June88.028.61,99558.56166
Nelson Airfield62.545.654.079.9 Mar.21.0 July92.021.02,35346.42127
Blenheim65.645.655.687.1 Dec.25.1 June94.616.12,42626.04110
Hanmer62.640.051.387.0 Dec.20.0 July97.08.21,95641.88136
Hokitika60.245.552.872.0 Mar.26.8 June84.525.01,823110.06181
Lake Coleridge61.841.751.885.0 Dec.21.0 June92.010.0 29.23105
Christchurch63.545.354.491.7 Jan.24.3 July95.719.32,06322.32116
Timaru62.444053.290.8 Jan.24.6 July99.019.81,92619.27115
Milford Sound59.344.551.979.2 Dec.27.2 July81.823.1 246.19192
Alexandra63.241.252.290.4 Dec.20.0 July94.411.02,04411.9992
Musselburgh, Dunedin59.845.352.584.1 Jan.26.5 July94.023.01,73535.95170
Invercargill59.243.551.483.5 Feb.22.8 July90.019.01,68543.00192

For 1955 the mean sea-level pressure values in millibars at 0900 hours New Zealand Standard Time were: Auckland 1016.7; Wellington 1015.1; Nelson 10154; Hokitika 1015.5; Christchurch 1013.6; and Dunedin 1012.6.

PLANTS OF NEW ZEALAND.—Those desiring information on the flora and plant covering of New Zealand are referred to the article by Dr. W. R. B. Oliver, D.Sc., F.R.S.N.Z., which appeared in the 1940 and previous issues of the Year-Book, while a brief reference to the geographical distribution of the forest trees is made in the section of this Year-Book dealing with Forestry (Section 21). For more detailed information the following works may be consulted: “The Forest Flora of New Zealand” and “The Students' Flora of New Zealand and its Outlying Islands”, by T. Kirk, 1889; “The Cultivation of New Zealand Plants”, by L. Cockayne, 1923; “Manual of the New Zealand Flora”, by T. F. Cheeseman, ed. 2, 1925; “New Zealand Plants and Their Story”, by L. Cockayne, ed. 3, 1927; “New Zealand Trees and Shrubs and How to Identify Them”, by H. H. Allan, 1928; “The Vegetation of New Zealand”, by L. Cockayne, ed. 2, 1923; “Grasses of New Zealand”, by H. H. Allan, 1936; “A Handbook of the Naturalized Flora of New Zealand”, by H. H. Allan, 1940; “The Flora of New Zealand”, by W. Martin, ed. 3, 1947; “Pasture Plants and Pastures of New Zealand”, by F. W. Hilgendorf and revised by J. W. Calder, ed. 6, 1948; “The Trees of New Zealand”, by L. Cockayne and E. Phillips Turner, 1950 (reprint); “Poisonous Plants in New Zealand”, by H. E. Connor, 1951; “Plants of New Zealand”, by R. M. Laing and E. W. Blackwell, ed. 6, 1951; “New Zealand Ferns”, by H. B. Dobbie, ed. 4, 1952; “Weeds of New Zealand and How to Eradicate Them”, by F. W. Hilgendorf and revised by J. W. Calder, ed. 5, 1952; “New Zealand Birds and Flowers”, published by A. H. and A. W. Reed, Revised Edition, 1955; and numerous articles published in the Transactions of the Royal Society of New Zealand.

FAUNA.—A brief article on the fauna of New Zealand, originally prepared by the late Mr. James Drummond, F.L.S., F.Z.S., and revised by him in 1935, is contained in the 1940 and earlier editions of the Year-Book. Other publications dealing with this topic include “The Animals of New Zealand”, by Captain F. W. Hutton and J. Drummond, ed. 4, 1923; “Native Animals of New Zealand”, by A. W. B. Powell, 1947; “Introduced Mammals of New Zealand”, by Dr. K. A. Wodzicki, 1950; and “New Zealand Birds and How to Identify Them”, by P. Moncrieff, ed. 4. 1952.

Chapter 2. SECTION 2—HISTORY, CONSTITUTION, AND ADMINISTRATION

Table of Contents

EARLY HISTORY: General.—When New Zealand was discovered by Europeans in 1642 it was found to be inhabited by a race of Polynesians called Maoris, who had migrated to these islands many centuries previously. At what time the discovery of New Zealand was made by the Maoris, and from what country they came, cannot be stated accurately, for being an unlettered people they had only oral records of their history. The origins of the Maori people prior to their final migration are even more obscure, but in accordance with the general tradition of the Polynesian race it would seem that from Asia they migrated eastward by way of Malaysia to the Pacific. According to their mythology their Pacific home was the island of Hawaiki—the position of which is now unknown—and from there, many generations ago, one of their chiefs, after a long voyage, reached the northern island of New Zealand. Returning to his home with a glowing description of the country he had discovered, this chief persuaded a number of his people to set out in a fleet of double canoes for the new land. This migration was followed by others, and from comparisons of the tribal legends it has been possible to obtain a definite knowledge of the subsequent division and history of the numerous tribes after their occupation of New Zealand. On their arrival the Maoris found inhabitants on the east coast of the North Island of similar racial origins to themselves. Known to the Maoris as Morioris, “inferior people”, this race was driven to the South Island and to the Chatham Islands. Through absorption by the dominant Maoris, the Morioris finally became extinct by the death of their last member during the last decade. Of their history nothing is known, and their origins remain a mystery.

Coming from tropical latitudes, the Maoris mainly confined themselves to the warmer North Island, and when discovered by Europeans were in a high state of neolithic civilization, with marked superiority in the arts of wood-carving and military engineering. Their principal social unit was the family group, and from combinations of the numerous groups were formed the sub-tribes and tribes. With highly developed social and ritualistic customs, their system of land tenure and methods of cultivation were communal within the sub-tribes. Inter-tribal and intra-tribal warfare was common, and as individuals they displayed exceptional courage and intelligence.

The immediate effect of European contacts on the Maoris was the outburst of a series of tribal wars waged with greater ferocity and a vastly greater loss of life than was customary in pre-European tribal engagements. The high mortality could, of course, be credited to the acquisition of a more lethal weapon, the musket. The advantage lay originally with the coastal tribes as a result of their earlier contact with Europeans, the wars continuing until all tribes were equally well armed. These wars were later followed by wars against the colonists, but after 1870 the story has been one of unbroken peace between Maoris and Europeans.

The introduction of European diseases and firearms, and the impact of European civilization on the traditional way of life and customs of the Maoris, had such an adverse effect that their numbers must have been reduced by over half during the nineteenth century. However, the virility of the race gradually asserted itself, and from the beginning of the twentieth century the Maori population has been rapidly increasing.

Other island groups, such as the Cook Islands, Niue Island, and the Tokelau Islands, had also long been inhabited by Polynesians from various successive migrations extending over considerable periods prior to their discovery by Europeans.

Discovery by Europeans.—On 13 December 1642, Abel Janszoon Tasman, a navigator of the Dutch East India Company, discovered the country to which he gave the name of Straaten Land, and which later became known as “Nieuw Zeeland”. Tasman had left Batavia on 14 August 1642, and, after having discovered Tasmania, he steered eastward and sighted the west coast of the South Island, described by him as a high mountainous country. Sailing north, he had the misfortune to come into conflict with the Maoris at Golden Bay, on the north coast of the South Island, so that though he continued his northward journey until he reached the northern tip of the country, he did not again attempt to land. His exploration was of necessity very cursory, for having explored only part of one coast he had no knowledge of the country's extent or shape.

There is no record of any European visit to New Zealand after Tasman's departure until Captain Cook sighted land on 6 October 1769, at Young Nick's Head. On his first voyage Cook spent six months exploring the New Zealand coast-line, and he completely circumnavigated the North and South Islands. His activities can be best described by saying “he found New Zealand a line on the map, and left it an archipelago.” Not only was Cook's ability shown by his cartographical accuracy, but also in his peaceful dealings with the truculent Maoris. He returned to New Zealand again in 1773, in 1774, and in 1777.

Several other explorers also visited New Zealand during the latter portion of the eighteenth century, amongst whom may be mentioned M. de Surville 1769, M. Marion du Fresne 1772, Captains Vancouver and Broughton 1791, Captain Raven 1792–93, Alejandro Malaspina and Jose de Bustamente y Guerra 1793, Lieutenant Hanson 1793.

The European discovery of many of the islands of the Cook group was made by Captain Cook in 1773. Rarotonga and Mauke were not officially discovered for another fifty years, although there were records of earlier visits by the Bounty under the control of the mutineers in 1789 and later, in 1814, by the Cumberland. Niue Island was discovered by Cook in 1774. The first recorded discovery of the Tokelau Islands was made by Quiros in 1606. Of the remaining islands of the group, Atafu was discovered in 1765, Nukunono in 1791, and Fakaofa in the 1840's.

European Settlement and Colonization.—So far as is known, the first instance of Europeans being left in New Zealand to their own resources occurred in 1792, when Captain Raven of the Britannia landed a sealing-party at Facile Harbour, on the west coast of the South Island, where they remained a little over twelve months before being called for.

In the years that followed, whaling stations sprang up along the coast, and a trade with New South Wales began not only in whale oil and seal skins, but also in flax and timber—to say nothing of the disreputable traffic in dried tattooed heads. Attracted to New Zealand were deserters from whaling vessels and escaped convicts from Australia, who, in the absence of any jurisdiction, soon became notorious for their extreme lawlessness. In 1814 Samuel Marsden, chaplain to the Governor of New South Wales, obtained permission to send two of his proteges, Kendall and Hall, to the Bay of Islands to consider the desirability of establishing a mission station. Later they returned to Sydney for Marsden, who arrived in New Zealand to preach his first sermon at the Bay of Islands on Christmas Day, 1814. Of the many admirable activities undertaken by the missionaries, their action in having the Maori language “reduced to a rational orthography” deserves special mention.

In 1825 three separate, but abortive, attempts were made to found colonies; however for some years the only settlements were those round the principal whaling stations, although a number of Europeans gradually penetrated inland and resided there permanently, many marrying Maori women.

The first body of immigrants under a definite scheme of colonization arrived in Port Nicholson in January 1840, there to found the town of Wellington. The New Zealand Company, whose moving spirit was Edward Gibbon Wakefield, endeavoured to systematize colonization by transplanting sections of English society into virgin country.

It was hoped that, by producing a proper balance of capitalists and artisans, self-contained communities could be successfully established. However, owing to the unsatisfactory nature of the land-purchases, considerable difficulty was experienced in these initial settlements, and friction grew up not only between the settlers and the Maoris, but also between the Governor and the settlers. Before his death in 1842 Governor Hobson had transferred his capital from Russell to Auckland, but this transfer was of little assistance to the colonists, who had extended their settlements to Wanganui, New Plymouth, and Nelson. In 1865 the seat of government was removed to Wellington.

Following the death of Hobson, the existence of the colony became precarious, for, through lack of funds and weak administration, Maori aggression became a real menace. To cope with the situation, the Colonial Office appointed Captain George Grey as Governor. Being well equipped with troops and funds, as well as being a man of vigour and perception, Grey soon restored order and won the confidence of both the settlers and the Maoris. During Grey's term two further organized settlements were made. In co-operation with the New Zealand Company the Free Church of Scotland sponsored the Dunedin Settlement of 1848, and the Church of England the Canterbury Settlement of 1850. These settlements, owing to their more favoured situations, their satisfactory land-purchase agreements, and their freedom from trouble with the Maoris, achieved a greater measure of success in carrying out the company's avowed aims.

After Grey's departure the question of relationship with the Maoris again came to the fore through the land-purchasing activities of the settlers—a situation aggravated by subsequent lack of consideration for the Maori system of land tenure. Following an incident at Waitara in the Taranaki district, where a dispute arose concerning land titles, war broke out in 1860 and lasted spasmodically till 1870. The recall of Grey did not solve the problem, as Grey, an autocrat, could not work with the elected Ministers, nor did his presence prevent the confiscation of land belonging to the Maoris, whether friendly or hostile. It was under the sympathetic administration of Sir Donald McLean as Minister for Maori Affairs that the dispute finally died down.

These hostilities were confined to the North Island; and, in the meantime, in 1861, large alluvial deposits of gold had been discovered in the South Island—leading to a tremendous influx of population and an alteration of the economic structure of the country.

No organized form of European colonization has at any time taken place in the Cook Islands, Niue Island, or the Tokelau Islands.

SUBSEQUENT HISTORY AND DEVELOPMENT (1870 ONWARDS).—The discovery of gold, by its increase of wealth, allowed the South Island to obtain a lead in commercial and political development which it long maintained. Moreover with the subsequent agrarian expansion, especially in the development of the large pastoral holdings, the country ceased to be merely self sufficient agriculturally, but began to develop a substantial export trade, mainly in wool, which it has maintained to the present day.

These factors, together with freedom from strife with the Maori population, led after 1870 to a quickening in political activities. Under the leadership of Sir Julius Vogel a policy of extensive borrowing for railway and road construction was begun. The provincial system which really commenced in 1853 had largely outlived its usefulness; in fact, the parochialism of their assemblies had frequently proved obstructive, and in consequence the provincial system was abolished in 1875, local administration being provided for by the Counties Act and the Municipal Corporations Act of 1876.

Of great social significance was the passing in 1877 of the Education Act, making education-free, compulsory, and secular, while the laying during that decade of the first cable between Australia and New Zealand was a major advance in communications. At this time party politics began to enter into the parliamentary system, and the slump conditions which prevailed in the “eighties” (due to a fall in the world price level) intensified the political atmosphere. By the abolition of plural voting in 1889, and the introduction of female suffrage in 1893, the way was opened for a practical expression of political convictions by all adult members of the community.

In 1891 Ballance, as Leader of the Liberal Party, became Premier, to be followed on his death in 1893 by Seddon, and during the next decade the legislative essays of this party evoked world-wide interest. The main aim of the legislation was social justice, and its principal manifestations were in land division, the establishment of the Court of Arbitration, and the introduction of old-age pensions. The policy of land division aimed at closer land settlement, and it was achieved by the compulsory subdivision of large estates, with subsequent loans to small independent farmers wishing to establish themselves. In inaugurating the Court of Arbitration the object was to eliminate strikes by giving labour a recognized bargaining status; and the enactment was in accord with the enlightened code of labour legislation passed at that time.

With the commencement of the refrigerated trade in 1882, the policy of closer settlement progressed rapidly, since the production of frozen meat and dairy produce for export encouraged more intensive farming. There thus arose a new farming class which in 1911, some five years after Seddon's death, was mainly responsible for the overthrow of the Liberal regimé.

The policy of the succeeding Reform Party under Massey was one favouring agricultural production. Farming interests were given constant encouragement by a series of enactments of which the extension of rural credit was typical. Three years after the advent of the Reform Party the First World War 1914–18 broke out, leading to the formation of a Coalition Government and an Imperial commandeer of exports. War activities were marked by heavy casualty lists, in proportion to the population, and by enhanced cordiality in Imperial relations. One noteworthy outcome of the war commandeer was the precedent given for the establishment, after the war, of Control Boards to regulate the export of pastoral products.

Though the effects of the post-war depression during the period 1921–24 showed themselves in an increase in unemployment and slight wage reductions, no drastic legislation was necessary to stabilize economic conditions. During the following years the price level rose; and, from the administrative side, it was characterized by extensive public-works expenditure, with particular attention to hydro-electric schemes and highways.

Owing to the encouragement given to farming, pastoral production constantly expanded, so that New Zealand became one of the world's greatest exporters of pastoral produce. As a consequence, her national income was extremely sensitive to price fluctuations of these products; so that, with the advent of the depression in 1930, her economic position became extremely vulnerable. In order to produce balanced budgets, both public and private, various legislative remedies were attempted. In particular, enactments were provided for unemployment relief, for the suspension, in effect, of compulsory arbitration, for the establishment of a Reserve Bank, for a mortgage moratorium, for raising the exchange rate, and for reduction in interest rates and wages. With the recovery in price levels and consequent general economic revival, amendments were made to several of these Acts, removing the more stringent measures. The election of a Labour Government in 1935 led to a change in administrative policy, the preoccupation being mainly with social problems. Further amendments were made to the depression legislation, certain restrictive measures were removed, and other temporary adjustments made permanent.

The general climate of opinion and gradual maturity of outlook furnish the background in which certain distinctive trends appear in legislation passed from 1936 to 1956.

The first major influence was an attitude which forcefully rejected the human suffering and economic waste associated with a major depression. Evidence of this is implicit in the provision for a basic wage, and later for a minimum wage, employment-promotion legislation, amendments to workers' compensation, industrial conciliation and arbitration, mining, etc., legislation, the system of guaranteed prices for certain primary produce, the creation of farm industry reserves, and the rationalization of production and marketing by the establishment of boards for certain items of primary produce.

The second major influence on legislation was conditioned by the outbreak of the Second World War, 1939–45. A vast body of legislation was placed on the statute book during the war period dealing with the control of manpower and materials, stabilization of prices, wages, and rents, conditions of employment and suspension of certain peacetime features of industrial activity, discouragement of some industries and diversion to or encouragement of other industries, provision for rehabilitation, etc.

A third dominant trend was the acceptance of the principle that society should take active steps towards the improvement of the working, living, and social circumstances of its members. Foremost in this category was the Social Security Act and its later extensions providing for monetary benefits such as age, superannuation, family allowances, sickness, and unemployment, and for removal of the fear of want; failure to obtain needed medical assistance and hospitalization by the deterrence of crippling costs was obviated by the provision of a system of medical benefits.

Other legislative enactments under this heading include the provision for paid annual holidays, joint family homes, reduction of working hours, extension of workers' compensation insurance, improvement in safety and health and welfare conditions in industry, and extension of educational facilities and opportunities.

A fourth approach to law-making resulting from maturity of outlook has been the increased participation by New Zealand in international affairs consequent on its acceptance of responsibility in the wider issues of the present era. Legislation authorizing participation in United Nations activities generally and in particular emergencies, such as army and naval service in Korea, Malaya, and elsewhere; the extension of New Zealand representation in overseas countries and with the United Nations; the greater frequency of Commonwealth consultation; extension of aid to less developed countries, e.g., to Greece, and participation in the Colombo Plan; all bear witness to this change in outlook.

Another influence on legislation presents some parallels to that last mentioned, but is more concerned with the domestic sphere. It is exemplified in the increasing interest taken in welfare and social development generally of both the rapidly growing Maori population and the inhabitants of New Zealand's island and trust territories, such as the Cook Islands and Western Samoa.

Contemporaneously with the expansion of the field of legislative interest, other economic and industrial development of the country has proceeded with marked impetus in recent years. Partly induced by war-time shortages and the lack of self-sufficiency, and partly because the predominantly farming section of the country cannot absorb any very large inflow into the labour force, there has been in evidence a marked expansion with greater diversification of secondary industry. At the same time the basic industries of the country, those concerned with primary production, have prospered, assisted by the rapid absorption into practice of the technological improvements and achievements of the period.

The history of New Zealand's island territories has been largely one of wise paternal oversight, particularly in the earlier periods, by the New Zealand Government and by the various missions established in the islands. More recently, successive Governments have in various ways encouraged the inhabitants to take an increasing share in the administration of their communities, thus paving the way for some form of self-government. Much attention has been paid to combating tropical diseases and to health problems generally; such island industries as citrus, orange, and banana growing being fostered and encouraged in various ways, with outlets being found for produce available for export. By and large, however, their economy is necessarily one of a subsistence type only, with financial and other assistance provided from Government sources for the expansion of educational facilities and opportunities, public works such as roading, conservation of water supplies by reservoir construction, communication facilities, etc.

Owing to limitations of space, the foregoing is but a brief résumé of New Zealand history. For detailed information, reference should be made to the many excellent books dealing with the subject, of which the more recent ones are listed in the General Bibliography appearing in Appendix C of this volume, and others in earlier issues.

SOVEREIGNTY.—Following representations from Maori chiefs for protection from the prevailing turmoil and lawlessness caused by inter-tribal warfare and the rough element around the whaling stations, the New South Wales Government appointed, in 1832, Mr James Busby as British Resident at Russell. Owing to the failure to supply him with any means of exerting authority, his appointment was largely ineffective. Finally the disorder, and the friction between the two races, became so intolerable that even the missionaries, who were opposed to annexation, made representations for British sovereignty.

On 29 January 1840, Captain William Hobson, R.N., arrived at the Bay of Islands, empowered, with the consent of the Maoris, to proclaim the sovereignty of Queen Victoria over the Islands of New Zealand, and to assume the government thereof. Hobson formally read his commissions at Kororareka on 30 January 1840, and on 6 February of the same year a compact called the Treaty of Waitangi was entered into, whereby all rights and powers of sovereignty were ceded to the Queen, all territorial rights being secured to the chiefs and their tribes.

On 21 May 1840 Governor Hobson proclaimed British sovereignty in the case of the North Island by virtue of the Treaty of Waitangi, and in the case of the South Island and Stewart Island by right of discovery. New Zealand remained a dependency of New South Wales until 3 May 1841, when it was created a separate colony by Royal Charter dated 16 November 1840. The capital was at first transferred by Hobson from Russell to Auckland, but in 1865 it was again transferred, on this occasion to Wellington, where the seat of Government has since remained.

During Governor Grey's term, steps were taken to draft a constitution for the colony. An Act granting representative institutions was passed by the Imperial Parliament on 30 June 1852, and was published in New Zealand by Proclamation on 17 January 1853. Under it provision was made for the constitution of a General Assembly consisting of a Legislative Council and a House of Representatives. Provision was also made for the division of the country into provinces, each province having an elected Council and Superintendent. (The provincial system was abolished in 1875 and the Legislative Council in 1950.) In the first General Assembly of 27 August 1854 certain members of this body were associated with the permanent members of the executive but they did not hold any portfolios. It was not until 7 May 1856 that responsible government was actually established.

With the gradual development of the country's economy, the acquisition of political and administrative experience, and the increasing desire for self-reliance in political matters, the degree of self-government became more complete. In recognition of this and of a nascent sense of nationality, New Zealand was given the title of Dominion in lieu of Colony, the new title taking effect on 26 September 1907.

Of the constitutional events in recent years the passing by the United Kingdom Parliament of the Statute of Westminster in December 1931, was of major importance. The draft of this statute was submitted for the confirmation of the various Commonwealth Legislatures before its passage through the United Kingdom Parliament. The statute granted complete autonomy to the various self-governing member countries, but it did not automatically apply to Australia or New Zealand. In other words, its operation in the latter self-governing members of the Commonwealth was declared to require specific adoption by the Legislature of that country. It was not until 1947 that the New Zealand Government formally adopted the Statute of Westminster.

As far as the island territories are concerned, the Cook Islands were proclaimed a British protectorate in 1888, and in 1901 were annexed and proclaimed part of New Zealand under the Colonial Boundaries Act 1895, Niue Island is part of the Cook Islands, though separately administered, and became part of New Zealand in 1901 with the extension of boundaries to include the Cook Islands. The Tokelau Islands were placed under the protection of Great Britain in 1877, formally annexed at the inhabitants' request in 1916, and from 1925 were administered by New Zealand at the request of the United Kingdom Government. From 1948 they became part of New Zealand by virtue of the Tokelau Islands Act 1948.

CONSTITUTION OF NEW ZEALAND: General.—New Zealand is a monarchical state; it is also a constituent member of the Commonwealth. It is in this context that the preamble to the Royal Titles Act 1953 is significant … whereas it is expedient that the style and titles at present appertaining to the Crown should be altered so as to reflect more clearly the existing relationships of the Members of the Commonwealth to one another and their recognition of the Crown as the Symbol of their free association and of the Sovereign as the Head of the Commonwealth … Constitutional elements besides that of the titular head, the Monarch, can be reviewed under the categories of legislative authority, the executive and administrative structure, and the judiciary. This division is a convenient one, even though there is no absolute line of demarcation between the three phases (e.g., legislation may and often does arise through the day to day experience of those responsible for administration and execution of policy, or through difficulties or anomalies made explicit in the course of dispensing justice or interpreting law). Conversely, in the exercise of the powers and functions of industrial and other tribunals, commissions, authorities, etc., both administrative and judicial elements may be discerned.

THE MONARCH.—The New Zealand Parliament in the Royal Titles Act 1953 gave its assent to the use of the royal style and titles as follows: Elizabeth the Second, by the Grace of God of the United Kingdom, New Zealand, and Her Other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith.

While the seat of the Monarch is normally in the United Kingdom, the Queen is represented in New Zealand by the Governor-General appointed by the Crown on the advice of Her New Zealand Ministers. The Governor-General has however an official existence, even in the country to which he has been appointed, only in the absence of the Queen from that country. In the island territories the Crown is represented by the Resident Commissioner or Resident Agent, and in the trust territory of Western Samoa by the High Commissioner. These officials carry out the constitutional functions of the Crown, but they also possess in varying degree certain executive and legislative powers, being responsible to the New Zealand Government for the administration and good government of the islands concerned.

Many powers held by the Monarch (or her representative) comprise but the means of giving effect to the public will. In New Zealand the Governor-General acts on the advice of the Ministers, which cannot be constitutionally ignored. Despite the long-term trend for powers to be assigned directly to Ministers without any necessity for vice-regal consultation, there are still many phases of Government which require Royal participation.

The Queen (in her absence the Governor-General) gives consent or approval prior to a Minister taking office or the formation of a Ministry; summons and prorogues Parliament; delivers the Speech from the Throne at the opening of a session; gives the Royal Assent to measures which have passed all stages in the House of Representatives, without which they have not the force of laws; makes appointments to most important State offices, to Knighthoods and other honours, etc.; and also provides that background of stability, continuity, and experience in many facets of government which is so desirable whenever there are sweeping changes in the dominance of political parties.

Besides those duties associated with the constitutional role, the Royal personage or representative makes an important contribution to the ceremonial life of the nation. This was particularly well illustrated during the sojourn of the Royal visitors to New Zealand in 1953–54. Both as the symbol of the nation and in virtue of her identification with the life and interests of her people, the Queen becomes the focus for all State occasions, as does the Governor-General in her absence.

LEGISLATIVE AUTHORITY.—The Supreme law-making body with power to legislate for the whole country is Parliament, which consists of the House of Representatives only, the former Legislative Council having been abolished since the close of 1950.

The powers of Parliament to make laws are legally untrammelled. This was not always so, for prior to the adoption by New Zealand of the Statute of Westminster in 1947 there was incapacity to make laws on certain matters which conflicted with United Kingdom statutes extending to New Zealand. There was also some doubt as to New Zealand's power to make laws possessing extra-territorial validity.

Although they do not limit the legal powers of Parliament as stated above the provisions of the Electoral Act 1956 creating reserved sections in that Act are of great constitutional significance. The Act provides that certain of its sections may not be repealed except by a 75 per cent majority of the House of Representatives or following a referendum. These sections are those relating to—

  1. The constitution and order of reference of the Representation Commission;

  2. The number of European electoral districts and the basing of their boundaries on the total population;

  3. The fixing of the tolerance within which the Commission must work at 5 per cent;

  4. The age of voting;

  5. The secret ballot;

  6. The duration of Parliament.

This innovation is not legally effective in the sense that it does not prevent a subsequent Parliament from ignoring it, since one Parliament cannot bind its successors. It should not be thought, however, that the new provision is a mere gesture. It records the unanimous agreement of both parties represented in Parliament that certain provisions have a fundamental character in the system of Government and should not be altered at the whim or a bare majority. Considered in this light the provision creating reserved sections introduces something in the nature of a formal convention which could not constitutionally be ignored.

While the law-making function is the prerogative of the members of Parliament, it must be remembered that, as in most democracies, laws are passed because of their acceptability to the majority party in Parliament—i.e., the Government party. Furthermore the initial acceptance will have probably been made in the deliberations of Cabinet.

With the increasing range and complexity of the statutory field, the multifarious concerns of a modern twentieth century government, and the necessity of conserving time for consideration of more important issues, much of the detailed procedural steps and other amplifying matter must become the subject of Orders in Council or of regulations made under the authority of some statute, rather than being incorporated in the statute itself. In this form of what has been termed legislation by delegation, the power to originate and sanction regulations rests with that comparatively small proportion of the majority party in Parliament individually known as Members of the Executive Council (or of Cabinet) and who collectively, together with the Governor-General, comprise the Executive Council. The same individuals, excluding the Governor-General, in New Zealand are members of the Cabinet, provided that each is the holder of a portfolio.

Cabinet may and often does function in a deliberate sense as well as in an executive or administrative sense. However regulations, etc., though originating in Cabinet and becoming effective in the proceedings of the Executive Council, still remain subject eventually to the sovereign will of Parliament as a whole.

Parliament.—The General Assembly now consists of the House of Representatives, the former Legislative Council (in existence 1854 to 31 December 1950) having been abolished by the Legislative Council Abolition Act 1950.

Meeting of Parliament.—Parliament is summoned, prorogued, or dissolved by Proclamation issued by the Governor-General. A session is that period between the summoning of Parliament and its prorogation. Its length varies, but it usually occupies the months from June to November. When Parliament is prorogued all the business on hand lapses, and if this is to be proceeded with in the next session it must be re-introduced.

The course of a session may be interrupted by an adjournment.

Parliamentary Privileges.—While in session these include freedom of speech and freedom from arrest, and also the right to engage in secret debate, if required, etc.

The Party System.—There are two political parties represented in Parliament in New Zealand at present: National and Labour. At any General Election these parties, together with any other political parties which may be desirous of so doing and also those standing as independents, state their respective policies before the electors. Each party normally puts forth one candidate for each of the eighty electorates into which the country is divided. The party which wins the majority of seats, although not necessarily the majority of votes, at the General Election forms the Government. The leader of the elected members of the majority party becomes the Prime Minister, who selects the most outstanding or experienced persons from among the majority party (Government members) for Ministerial appointments. The leader of the minority party in Parliament becomes the Leader of the Opposition. The effectiveness of the party system relies largely on the general agreement that the majority party is to govern and the minority is to criticize—so that there is ample time allocated for debate on Government measures in Parliament. While party control is exercised by national and local organizations outside Parliament, within the latter it is maintained by the respective party Whips.

Parliamentary Procedure.—The House of Representatives has its Standing Orders, which govern its procedure and which are administered by Mr Speaker in the exercise of his control of the House. Mr Speaker's rulings on interpretation of the Standing Orders are followed in a similar manner to judicial decisions in the ordinary courts of law. The main means by which Parliament does its work is through the system of debate and Committees. The election of a Speaker is the first business of a new House after the members have been sworn. A Chairman of Committees is elected as soon afterwards as is convenient. Twenty members, inclusive of the Speaker, constitute a quorum.

Parliamentary Functions and Control.—The Parliament controls the Government in power in the last resort by its power to pass a resolution of no confidence in the Government, or to reject a proposal which the Government considers so necessary that it is made a matter of confidence, and thus force the Government to resign.

Financial control is exercised by the fact that expenditure of public money must be authorized by the House of Representatives in the form of an Appropriation Act, which authorizes or grants money to the Government for the purposes approved. The authority for the raising of revenue by taxation or borrowing must also be given by Parliament. The functions of Parliament are of course the passing of legislation and taking action to make available finances or funds as required for State expenditure, while it also controls the Government. Legislation can be initiated from any member of Parliament, but in practice almost all Bills are introduced by the Government in power as a result of policy decisions taken in Cabinet, sometimes at the instigation of those Government Departments which will be responsible for their administration when the Bills become law. The chief exceptions are private Bills, which are designed for the particular interest or benefit of a person or body of persons, whether incorporated or not, and local Bills which relate largely to matters of local (as distinct from central) government business. The process of passing a public Bill is as follows: it receives a formal first reading on introduction, is then printed, and after some time may be given a second reading as a result of a debate on its general merits or principles. It may then be referred to one of the Select Committees, for consideration in the closest detail, before being considered by the whole House sitting in Committee. During these stages members have opportunities to suggest amendments which may be incorporated in the Bill if the majority so decide. The Bill is then reported to the House, and later read a third time, and passed. Debate rarely occurs at these stages. The final stage is to send the Bill to the Governor-General for the Royal Assent and, unless provision is made for commencement on another date, it then becomes law. The Bills providing for receipt of moneys, such as the Finance Bill, and expenditure of moneys, such as the Appropriation Bill, are initiated only by a Minister of the Crown, normally the Minister of Finance.

Duration of Parliaments.—Quinquennial Parliaments, instituted under the Constitution Act, were abolished by the Triennial Parliaments Act 1879, which fixed the term at three years. General elections have been held at three-yearly intervals since 1881, with a few exceptions. The term of the nineteenth Parliament was during the First World War extended to five years by special legislation, and that of the twenty-fourth (1931–35) and subsequent Parliaments to four years under the Electoral Amendment Act 1934. By the Electoral Amendment Act 1937 the three-year term was restored, but on account of war conditions the term of the twenty-sixth Parliament was extended to four years by the Prolongation of Parliament Act 1941. The Prolongation of Parliament Act 1942 extended the term still further to one year from the termination of the war, but with a proviso for a motion to be moved in the House of Representatives each year after the year 1942 either approving the continuation of the House or fixing an earlier date for its expiry. During the 1943 session a motion in favour of dissolution was carried, and Parliament was dissolved on 30 August 1943. Since then the duration of Parliaments has been of three years, with the exception that the twenty-ninth Parliament was dissolved after the expiration of approximately twenty months. The three-year limit was re-enacted in the Electoral Act 1956, this being one of the reserved provisions referred to on page 21.

Number of Representatives.—The number of members constituting the House of Representatives is eighty—seventy-six Europeans and four Maoris. They are designated “Members of Parliament”. The number was originally fixed by the Constitution Act as not more than forty-two and not less than twenty-four, and the first Parliament called together in 1854 consisted of forty members. Legislation passed in 1858 fixed the number of European members at forty-one; in 1860, at fifty-three; in 1862, at fifty-seven; in 1865, at seventy; in 1867, at seventy-two; in 1870, at seventy-four; in 1875, at eighty-four; in 1881, at ninety-one; in 1887, at seventy; and in 1900, at seventy-six. Since 1867 there have been four Maori representatives, and provision for this number was retained in the Electoral Act 1956. In 1952 the boundaries of the Maori electoral districts, which had remained unaltered since 1867, were changed by Proclamation so as to give a greater degree of equality of population among the four districts (in effect the Southern Maori Electoral District now includes a considerable area of the North Island).

Qualifications of Members.—Under the Electoral Act 1956 every registered elector of either sex, but no other person, is qualified to be a parliamentary candidate. It is provided, however, that a person shall not be so elected who is disqualified as an elector under any of the provisions of the Act (see under “Franchise” post); or is an undischarged bankrupt; or is a contractor to the public service of New Zealand to whom any public money above the sum of £200 is payable, directly or indirectly (but not as a member of a registered company or incorporated body), in any one financial year. Although women have had the vote since 1893, they were not eligible as Parliamentary candidates until the passing of the Women's Parliamentary Rights Act 1919. Prior to 1936 a public servant was prohibited from being elected, but this prohibition was removed by the Political Disabilities Removal Act 1936. The present law is that if a public servant is elected to Parliament he vacates his office forthwith and he cannot resume employment in the Public Service within twelve months of ceasing to be a member of Parliament unless he had previously been a public servant for at least five years.

Salaries, etc.—In accordance with the recommendations contained in the report (issued in 1955) of the Royal Commission upon parliamentary salaries and allowances, the Prime Minister's salary, as from 1 August 1955, was increased to £3,750 with a tax-free allowance of £1,500 for the expenses of his office and the Ministerial residence. In addition, while travelling on official business he receives £3 3s. per day to meet expenses, and by virtue of his office is entitled to free cars, secretarial assistance, and free postage. The salary of each Minister holding a portfolio is £2,500 with a tax-free expense allowance of £550, and that of each Minister without portfolio £2,000, with £450 tax-free expense allowance. Where the office of Minister of External Affairs is held by a Minister other than the Prime Minister the expense allowance is increased to £715. Any Minister not occupying a Ministerial residence receives an allowance in lieu at the rate of £300 per annum. This allowance or the assessed value of the residence where one is provided is subject to income tax. Previously Ministers did not receive an expense allowance as such, but the Commissioner of Inland Revenue allowed a deduction from salary of £250 as an expense allowance. Ministers also receive an allowance of £3 3s. per day when travelling on official business.

The Civil List Amendment Act 1936 made provision for the appointment of Parliamentary Under-Secretaries, an innovation in executive control in New Zealand. The rate of salary attachable to such position is now £1,500, with the same house provision or allowances, and travel allowance while on official business, as for Ministers. An expense allowance of £400 is also payable. Since the general election of November 1954, no appointments or reappointments have been made.

The Civil List Act 1950 provided that, on a recommendation of a Royal Commission, the salaries and allowances of Ministers and Members of Parliament may be fixed by Order in Council, in which event the salaries and allowances so fixed will be payable instead of those specified in the Civil List Act 1950. In conformity with the recommendations of the Royal Commission issued in 1955 the honorarium paid to members of the House of Representatives has been increased to £1,100 per annum. They are also paid a basic allowance at the rate of £275 per annum for expenses incurred in connection with parliamentary duties and a sessional allowance of £165 per annum to all members except those representing the nine electorates in or around Wellington. To meet the higher travelling and other expenses for partly rural and predominantly rural electorates additional increments of £82 10s. and £165 respectively are paid to members representing such electorates, subject to the classification of electorates by the Representation Commission into the five classes of (a) urban electorates in or near Wellington or Lower Hutt, (aa) substantially urban (where an allowance of £25 per annum is made to meet extra travel costs), (b) urban electorates other than Wellington electorates, (c) partly urban and partly rural electorates, and (d) predominantly rural electorates. A special additional allowance of £100 per annum is paid to the member for Southern Maori and a special additional allowance of £50 per annum to the members representing the other three Maori electorates (refer Parliamentary Salaries and Allowances Order 1955). Payment to members is subject to certain deductions for absence not due to sickness or other unavoidable cause. In addition to the honorarium, members are entitled to certain privileges in respect of railway and other forms of travel, a stamp allowance of £5 a month, etc. The Civil List Act 1955 provides that a Royal Commission shall be appointed to fix parliamentary salaries and allowances within three months after the date of every General Election.

Part V of the Superannuation Act 1947, as amended by the Superannuation Amendment Act 1955, introduced a contributory superannuation scheme for members of the House of Representatives, which provided a minimum retiring allowance of £350 per annum for a member with nine years' service, the allowance increasing by £50 per annum for every year's service in excess of that period until a maximum allowance of £700 per annum is reached after fifteen years' service.

A member must be fifty years of age before he qualifies, on ceasing to be a member, to receive the allowance. The annual contribution, which is compulsory, is £85 per annum, but a member may if he so desires receive a refund of his contributions upon ceasing to be a member.

In the case of a male member dying and leaving a widow surviving she becomes entitled during her widowhood to receive an annuity of two-thirds of the retiring allowance to which her husband was entitled at the time of his death.

Both the Speaker and Chairman of Committees hold office until a dissolution and receive payment until the first meeting of a new Parliament. The Speaker's remuneration is £1,950 per annum, in addition to which he receives an expense allowance of £600 and residential quarters in Parliament House. The honorarium of the Chairman of Committees is £1,575, and an allowance of £500 per annum to cover expenses incurred in connection with his parliamentary and official duties is also paid.

The Leader of the Opposition is paid a salary of £1,950 with an expense allowance of £490. In addition, a secretary and typist are provided by the State and an allowance of £215 is payable for travel outside his electorate. His official stamp allowance is £12 10s. per month.

ADMINISTRATION AND EXECUTIVE RESPONSIBILITY.—After the election of a new Parliament, the Prime Minister, who is the leader of the majority party in the elected members, is given the task of selecting the members of the Executive Council (i.e., the new Ministry). Each of those members of Parliament to form the Government is entrusted by the Prime Minister with responsibility for administration of a specified field or aspect of government. This field is entitled a portfolio e.g., all relevant matters relating to Customs would be allocated to one member, who is henceforth known as the Minister of Customs. He may also have other portfolios and the supervision of one or more Government Departments in which the activities carried out, though important, either do not rank as portfolios or are subsidiary aspects of the field—in these cases the Minister's responsibility will extend to being in charge of the named Department. One or other of the appointed Ministers in this way is responsible for the direction of activities and executive acts of each of the Government Departments and offices, etc., embracing the entire range of State activities. Thus arises the concept of Ministerial responsibility.

In the legal sense those members of Parliament who have been appointed Ministers, together with the Governor-General, comprise the Executive Council; for purposes of prior and informal discussion on executive or administrative action and deliberation on proposed policy, they, with the exclusion of the Governor-General and of those Ministers without portfolio, become what is known as Cabinet.

Executive Council.—The powers, duties, and responsibilities of the Governor-General and the Executive Council under the present system of responsible government are set out in Royal Letters Patent and Instructions thereunder of 11 May 1917, published in the New Zealand Gazette of 24 April 1919. The Royal Powers Act 1953 provides that the statutory powers conferred on the Governor-General may be exercised either by Her Majesty the Queen in person or by the Governor-General. In the execution of the powers and authorities vested in him the Governor-General must be guided by the advice of the Executive Council; but, if in any case he sees sufficient cause to dissent from the opinion of the Council, he may act in the exercise of his powers and authorities in opposition to the opinion of the Council, reporting the matter to Her Majesty without delay, with the reasons for his so acting.

In any such case any member of the Executive Council may require that there be recorded in the minutes of the Council the grounds of any advice or opinion that he may give upon the question.

A point of interest is that the Civil List Act 1950, in section 6, provided that no person shall be appointed a Minister or a member of the Executive Council unless he is a member of Parliament and that a person who ceases to be a member of Parliament cannot continue to be a Minister or a member of the Executive Council for more than twenty-one days. This gave statutory recognition for the first time to what had long been the convention.

At present (January 1957) the Executive Council consists of sixteen members in addition to the Governor-General. Two members, exclusive of His Excellency or the presiding member, constitute a quorum.

Under the Civil List Act 1950, which consolidated and amended the Civil List Act 1920 and its amendments, His Excellency the Governor-General receives an honorarium of £5,000 per annum, an allowance of £5,000 per annum for the salaries and expenses of his establishment (exclusive of the Official Secretary), plus all expenditure incurred in respect of the transport to and from New Zealand and the travel within or outside New Zealand of the Governor-General and his family and staff.

Cabinet.—There is a close relationship between the Cabinet, in itself not a legal entity, and the Executive Council, a statutory body. While the Executive Council consists of all Ministers, and is presided over by the Governor-General, membership of Cabinet may or may not extend to the entire Ministry; at present Ministers without portfolio are not members of Cabinet nor, of course, are its proceedings attended by the Governor-General. Where certain Cabinet decisions have to bear the imprint of legal form to become effective, the juridical acts are taken by others—the Crown, the Executive Council, a Minister of the Crown, a Statutory Commission, and the like. The preliminary review of proposed policy or of current administrative developments which takes place in the informal discussion atmosphere of Cabinet meetings implies both deliberate or selective and administrative procedures on the part of this body. Consequently, as a result of the device of Cabinet, a general consensus of agreement can exist on any proposed line of action by either an individual Minister, or by the Government as a whole, which enables (a) the Executive Council confirmation to proceed smoothly and expeditiously, (b) the Minister in introducing legislation into the House of Representatives or on other occasions to be confident that his measure will have the unqualified support of the Government no matter what divergences of opinion may have individually been apparent before the general agreement in Cabinet was made, (c) a consistent and agreed upon course of action or attitude to be followed on any particular issue. Thus the concept of collective responsibility of the Government is introduced and exemplified in the workings of Cabinet.

Complex questions and/or related problems may be initially considered by committees of Cabinet composed of those Ministers primarily concerned. Some executive action may be undertaken by these committees within the lines of established Government policy. Their work is subject to periodical report to and overall supervision by the entire Cabinet. On occasions also ad hoc committees may be established to review or investigate particular questions of the moment and to present their conclusions and recommendations to Cabinet for decision or for authority to take executive action. The decisions of Cabinet which require executive action, although notified to all concerned, are usually made effective through the agency of the Minister concerned.

Cabinet deliberations being investigatory or preliminary to action in other organs of Government are naturally informal, while anonymity as to the individual advocacy or opposition to some concerted line of action or area or general agreement is preserved in the form of recording system adopted. A small Cabinet secretarial is set up for the purpose of achieving co-ordination, continuity of action, and review, and to enable the smooth functioning of the work of Cabinet.

In brief, the functions of a Cabinet have been described as (a) the final determination of the policy to be submitted to Parliament, (b) the supreme control of the national executive in accordance with the policy prescribed by Parliament, (c) the continuous co-ordination and delineation of the activities of several Departments of State.

Government Departments.—The Minister as the political head of a Department of State may in fact have several Departments under his control. There are however some forty-four different Departments with separate functions in New Zealand. Each of these has a permanent head who is responsible for the work and administration of the Department. He is of course responsible to the Minister in charge of the Department, while he also acts as adviser to the Minister on all matters within his appointed competence. Besides ensuring that the Ministerial policy and directions communicated to him are effectively put into practice, his functions as the adviser include assessing the consequences of any executive action resulting from his departmental activity, evaluating the merits and demerits, whether political, social, or financial, of various modes of action, and making suggestions for improvements and for new policy measures as derived from departmental experience in the day to day execution of policy.

Departments can be broadly classified according to the administrative or regulatory, developmental, or social nature of their activities. Within the first group are the servicing sub-group, such as the Legislative, Prime Minister's Office, External Affairs, Printing and Stationery, Law Drafting, Valuation, Statistics, and Audit; the finance sub-group—Treasury, Customs, Inland Revenue; the regulatory sub-group—Public Service Commission, Internal Affairs, Island Territories, Labour, Marine; the defence and law and order sub-group—Navy, Army, Air, Justice, Crown Law, and Police; the publicity and research sub-group—New Zealand Broadcasting Service, Tourist and Publicity, Scientific and Industrial Research.

In the second group are the transport and communications sub-group, such as Transport, Post and Telegraph, and Railways; the developmental—Ministry of Works, Agriculture, Lands and Survey, Mines, State Hydro-electric, Maori Affairs, and Industries and Commerce; the commercial—Public Trust, Government Life Insurance, State Advances Corporation, and State Fire and Accident Insurance.

The third group comprises the Education, Health, and Social Security Departments.

This broad division serves merely to indicate in which field the dominant activity or purpose of the particular Department is engaged on or concerned with. Most Departments have servicing, informative, and regulatory functions, and many are equally regulatory and developmental in nature.

In addition to the system of direct administration in the form of Government Departments, there are other activities over which the State exercises some ultimate measure of control or ownership, though divorced in varying degrees from immediate supervision. The Reserve Bank of New Zealand (the central bank), and one trading bank, are entirely State-owned, although the actual administration is quite independent, subject in the case of the Reserve Bank to the proviso that the Governor or Board of Directors is to give effect to any resolution of the House of Representatives in respect of the bank's functions or business.

Further instances of this principle are shown by the National Airways Corporation, which, although owned by the State, is administratively self-contained, and by the Tourist Hotel Corporation. In certain other avenues the type of administration is in between the normal departmental form and that evident in the corporation type; of such is the National Roads Board, which, though determining policy to a large degree, yet makes' use of departmental administrative structures for implementation of policy.

Some administrative organizations have also quasi-judicial functions. Examples of this class are the Price Tribunal, Transport Charges Authority, Licensing Control Commission, and Local Government Commission.

JUDICIARY.—The hierarchy of Courts in New Zealand comprises the Court of Appeal, the Supreme Court, and the Magistrates' Court. Apart from these Courts of general jurisdiction there are other Courts dealing with specific fields. In the latter category are the Court of Arbitration, concerned with awards and general orders governing wage determination and conditions of employment in industry; the Compensation Court dealing with workers' compensation; and the Land Valuation Court, which settles land valuation disputes and compensation claims where land is taken for public works. For further details refer to Section 8 (Justice) of this issue.

ELECTORAL PROVISIONS.—The law on these matters is now contained in the Electoral Act 1956. Following each population census, which is normally taken every five years, New Zealand is divided anew into seventy-six European electorates. In addition, there are four Maori electoral districts, three in the North Island and one covering a portion of the North Island together with the whole of the South Island, where the Maori population is comparatively small. The Governor-General may at any time by Proclamation alter the boundaries of the Maori electoral districts, but, as in the case of European electoral districts, any alterations are to come into force at the expiry of the Parliament existing when the Proclamation is issued.

The Government Statistician is required to supply population figures to the Surveyor-General as soon as possible after the census. The population used as the basis in obtaining the quota for each European electoral district is defined in section 2 (1) of the Electoral Act 1956.

The term “European population” means total population with the following exceptions:

  1. Maoris:

  2. Persons residing on board ship, whether as passengers or members of the crew or otherwise:

  3. Persons residing temporarily as guests in any licensed hotel:

  4. Persons residing temporarily in any naval, military, or air force camp, station, or establishment:

  5. Persons residing as patients or inmates in any hospital:

  6. Persons in respect of whom receptions orders under the Mental Health Act 1911 are in force:

  7. Persons detained pursuant to convictions in any penal institution.

After the population is supplied by the Government Statistician it is then the responsibility of the Representation Commission to define new electoral districts for Europeans. The Commission is constituted by virtue of section 15 of the Electoral Act 1956 and comprises seven members. Four of these, the Surveyor-General, the Government Statistician, the Chief Electoral Officer, and the Director-General of the Post and Telegraph Department, are official members. Two are unofficial members, being persons nominated by the House of Representatives, one nominated to represent the Government, and one to represent the Opposition. The seventh member is appointed, on the nomination of the official and unofficial members of the Commission or a majority of them to be the Chairman of the Commission. The Chairman and unofficial members cease to be members on the date on which the first periodical census is taken after the date of their appointment.

The Commission then determines the number of electoral districts in the North and in the South Islands so that the number of districts in the North Island bears, as nearly as possible, the same proportion to the number of districts in the South Island as the European population of the North Island bears to the European population of the South Island. Once this is done the next step is to determine the population quota for electoral districts in each Island by dividing the European population of each Island by the number of districts in that Island. In applying the quota, provision exists for an allowance by way of addition or subtraction of 5 per cent of the total population where districts containing the exact quota could not be formed consistently with consideration of topography, community of interest, communications, and existing electoral boundaries.

When the boundaries have been provisionally determined, maps are prepared illustrating the proposed electoral districts, and descriptions of each electoral district are published in the New Zealand Gazette. A time limit of one month is given thereafter in which objections to the proposed boundaries may be lodged. These objections are then considered by the Representation Commission and a final decision reached on boundaries which then become the new electoral districts.

In addition to determining new European electoral districts the Representation Commission is also charged with the responsibility of classifying them for the purpose of allowances as provided by section 11 of the Parliamentary Salaries and Allowance Order 1955. Under this section provision is made for an allowance based on the size, topography, and transport facilities of the electorate, the nature of its roads, the distribution of its population, and all other considerations that the Commission deems relevant.

The 1950 amendment Act provided that all general elections and by-elections shall be held on a Saturday and for both European and Maori elections to be held on the same day. Previously the Maori elections were held on the day preceding the European elections. An amendment in 1951 provided for the polling hours in Maori electorates to be extended to 7 p.m., as in the case of European electorates.

The Electoral Amendment Act 1951 provided that, if at any time Parliament is dissolved before it has been two years in existence, the main and supplementary rolls used in the previous general election, together with a further supplementary roll, may be used if in the opinion of the Chief Electoral Officer it is impracticable to print new main rolls. The same rolls, together with a further supplementary roll, are to be used for any by-election occurring before the next following general election.

The latter amending Act also provided for the voting at elections and licensing polls by servicemen serving overseas who are or will be of, or over the age of, twenty-one years before the date of the election or poll, whether or not registered as electors of any electoral district. Each such serviceman shall be qualified to vote as an elector of the electoral district in which is situated his usual place of residence before he last left New Zealand.

FRANCHISE.—Since the abolition of plural voting in 1889 and the introduction of women's suffrage in 1893 every person 21 years of age or over (with certain obvious exceptions) has had the right to exercise one vote and one vote only in the election of members of the House of Representatives. The present law relating to electors and elections is contained in the Electoral Act 1956, and a note of some of the more important provisions of this Act is given below.

Qualification for Registration as Elector.—To be qualified for registration as a parliamentary elector in New Zealand a person must have attained the age of 21 years and must (a) be a British subject or Irish citizen, (b) be ordinarily resident in New Zealand, (c) at some period have resided continuously in New Zealand for at least a year, and (d) except in special cases have resided continuously for three years or more in the electoral district in respect of which application for registration is made, and not have subsequently resided for three months or more in any other electoral district.

The Act defines what is meant by the term “ordinarily resident.” To be ordinarily resident in New Zealand, a person must be or have been actually resident in New Zealand with the intention of residing there indefinitely. If he is absent from New Zealand he must have had, ever since he left New Zealand, an intention to return to reside there indefinitely, and (except in the case of a public servant or the wife or husband of a public servant) must not have been absent from New Zealand for more than three years.

This new requirement that an elector must be ordinarily resident in New Zealand is an important departure from the previous position. Prior to 1957 any British subject who had been in New Zealand for a year was entitled to register and to vote, even though his residence might have been of a temporary nature and although he did not associate himself with the New Zealand community. Conversely, a New Zealander absent from New Zealand for more than a year lost the right to vote. Broadly speaking, the new qualifications restrict the right to vote to permanent residents, the test laid down being similar to the legal concept of domicile.

The following persons are disqualified from registration as electors: (a) Those in respect of whom reception orders under the Mental Health Act 1911 are in force, (b) those detained pursuant to a conviction in any penal institution, and (c) those whose names are on the Corrupt Practices List for any district. These qualifications and disqualifications apply alike to Maoris and Europeans.

Registration of Electors.—A system of compulsory registration of electors has been in operation in respect of Europeans since 1924 and was introduced in respect of Maoris in 1956. Every person qualified to be registered as an elector of any district must, if he is in New Zealand, apply for registration within one month after the date on which he first becomes qualified to be registered as an elector. He must also apply for registration within three months after the issue of every Proclamation proclaiming the names and boundaries of electoral districts or within such later period as may be provided by Order in Council. Qualified electors who are outside New Zealand may apply for registration if they wish.

A European is not entitled to be registered as an elector of a Maori district and a Maori (other than a half-caste) is not entitled to be registered as an elector of a European district. A half-caste Maori may choose to be registered either for a Maori or European district, and special rules are laid down to govern a change from one to the other.

Voting at Elections.—Voting at parliamentary elections is by secret ballot, a method which was first introduced in New Zealand in 1870. Recognition of the fundamental character which the secret ballot has attained in New Zealand was given in the Electoral Act 1956, which included the section providing for this method of voting among the reserved sections which may be repealed only by a 75 per cent majority vote or following a referendum.

In general, only those persons whose names are lawfully on the main and supplementary rolls of electors compiled prior to an election may vote at that election. The following classes of persons whose names are not on the roll are however entitled to vote—

  1. Those who have applied for registration between writ day and polling day and have satisfied the Registrar that they became qualified for registration not earlier than one month before writ day;

  2. Those who are qualified for registration and were at the last preceding election registered in that district or, where boundary changes have intervener', in some other district in which their then residence within the first-mentioned district was then situated;

  3. Those who are qualified for registration and have since the last election and before 6 p.m. on writ day applied for registration in that district, or where boundary changes have intervened, in some other district in which their then residence within the first-mentioned district was then situated.

  4. Servicemen outside New Zealand, if they are or will be twenty-one years of age or more on polling day and their place of residence before they left New Zealand is within the district.

Special Voters.—A vote is normally cast by the elector at a polling booth within his district. An elector may, however, vote as a “special voter”, either at a polling booth outside his district or by post, in the following cases:

  1. If his name does not appear on the main roll, or any supplementary roll for the district or has been wrongly deleted from the roll;

  2. If he will be outside New Zealand on polling day;

  3. If he is or will be absent from the district on polling day;

  4. If he will not be within two miles by the nearest practicable route of any polling place in the district during the hours of polling;

  5. If he will be travelling during the hours of polling under conditions which will preclude him from voting at a polling place in the district;

  6. If he is ill or infirm;

  7. If, in the case of a woman, she is precluded from attending at a polling place by reason of approaching or recent maternity;

  8. If he is a lighthouse keeper or a member of a lighthouse keeper's staff, or if she is the wife of a lighthouse keeper or of one of his staff;

  9. If he has a religious objection to voting on the day of the week on which polling day falls;

  10. If he satisfies the Returning Officer or Deputy Returning Officer that on any other ground he cannot vote at a polling place in the district without hardship or undue inconvenience.

These latter conditions replace the former classes of absentee, postal, and declaration voters, including servicemen outside New Zealand.

Local Authority Elections.—For the system of local government administration a modified form of franchise exists, a ratepaying qualification being necessary for the exercise of votes on financial issues. Further reference to the local government franchise will be found in Section 31 of this Year-Book.

Chapter 3. SECTION 3—POPULATION

Table of Contents

GENERAL REVIEW.—A population census was taken as for the night of Tuesday, 17 April 1956, in New Zealand, while censuses of its Island Territories were conducted by the Department of Island Territories for the night of Tuesday, 25 September 1956. Final population figures by sex and by geographical areas for the 1956 census are published in this Section. For tables where 1956 returns are not yet available figures for the 1951 census have been used.

The minor islands (see page 2), other than the Kermadec Islands and Campbell Island, were uninhabited at the date of the census. The Ross Dependency, situated in Antarctic regions, had a population of 166 males at the 1956 census date.

The 1956 census population of geographic New Zealand (i.e., excluding Island Territories and the Ross Dependency) was 2,174,062, inclusive of 137,151 Maoris.

For the Island Territories 1956 census figures were: Cook Islands and Niue Island, 21,103 (as estimated at 1 April 1956); Tokelau Islands, 1,619; Trust Territory of Western Samoa, 96,969. The total census population of New Zealand and Island Territories was 2,196,784. Armed Forces personnel overseas at the time of the census and not included in the population numbered 2,162 (Europeans 1,972, Maoris 190).

The following table gives a complete summary of New Zealand population.

DateMalesFemalesTotal

* Includes population of the inhabited minor islands—i.e., Kermadec Islands, 11 (males); and Campbell Island, 7 (males).

† Preliminary census figures.

New Zealand—    
(a) Exclusive of Island Territories—    
    EuropeansCensus 17 April 19561,023,1221,013,7892,036,911*
    MaorisCensus 17 April 195670,08967,062137,151
    Totals, New Zealand (excluding Island Territories) 1,093,2111,080,8512,174,062*
(b) Island Territories—    
  Tokelau IslandsCensus 25 September 19567378821,619
  Cook IslandsEstimate 1 April 19568,6007,82416,424
  Niue IslandEstimate 1 April 19562,2712,4084,679
  Totals, New Zealand (including Island Territories) 1,104,8191,091,9652,196,784
Trust Territory of Western SamoaCensus 25 September 195649,72447,24596,969
Ross DependencyCensus 25 September 1956166 166

INCREASE OF POPULATION.—Since the commencement of European settlement in New Zealand the European population has in every year shown an increase, though the rate of increase has fluctuated considerably. As will be seen later in this Section, the movement of Maori population has followed a different course. Census records since 1901 are quoted in the succeeding table and include Maoris.

Date of CensusNumbersIntercensal Numerical IncreaseIntercensal Percentage IncreaseAverage Annual Percentage Increase

* Excludes New Zealand Armed Forces personnel overseas, overseas.

† Includes New Zealand Armed Forces personne

March 1901*815,85372,6469.771.89
April 1906936,304120,45114.762.75
April 19111,058,308122,00413.032.52
October 1916*1,149,22590,9178.591.50
April 19211,271,664122,43910.652.27
April 19261,408,139136,47510.732.06
March 19361,573,810165,67111.771.13
September 1945*1,702,298128,4888.160.83
September 19451,747,679173,86911.051.11
April 1951*1,939,472237,17413.932.37
April 19511,941,366193,68711.081.91
April 1956*2,174,062234,59012.102.31
April 19562,176,224234,85812.102.31

In no fewer than five of the ten censuses covered by the above table the figures are disturbed by the absence overseas of Armed Forces. Increase during the intercensal period preceding the census is thus diminished and in the period following is augmented by the return of such personnel or, more accurately and regrettably, the survivors. Numbers of Armed Forces personnel overseas at the respective dates were: 1901, 2,500 (approx.); 1916. 44,000 (approx.); 1945, 45,381; 1951, 1,894; and 1956, 2,162.

It will be noted that the growth of population has been substantial in each period. The lowest rates are those of 1926–36, a result of the great economic depression, and of 1936–45, which included six years of war.

Omitting movements of army and air force personnel but including naval crews, post-war increases in population have been—

 NumbersPer Cent
194634,9322.02
194733,7161.89
194833,7101.85
194938,3632.07
195036,6781.94
195543,3922.25
195253,9132.74
195350,3842.49
195442,8822.07
195546,1162.18
195645,2802.09
      Total459,366 

The increase in the rate of population growth, after an upward movement from 1950 to 1952 (the highest gain in the history of New Zealand), showed a downward trend in 1953, which was sharply accelerated in 1954. However, in 1955 and 1956 this downward trend war halted.

Sources of population increase are threefold—viz., enlargement of territory, excess of arrivals over departures, and excess of births over deaths or natural increase. The first is inapplicable to New Zealand, the second is dealt with later in this Section, and the third is discussed in the Section relating to vital statistics. One aspect of the latter may, however, be given here. This is the reproduction index which, though not free from error, is a convenient indication of the growth or decline of a population. It is based on female children born (gross rate) and probably surviving to maturity (net rate). A net rate of 1.0 indicates a stationary population; above unity a rising population and below unity a falling population.

Reproduction rates during the latest five years were as follows, the figures relating only to the European population.

YearGross RateNet Rate
19511,6401,578
19521,7171,652
19531,6961,632
19541,7571,691
19551,8171,749

A cautionary observation may be appended here. Though the total increase of population is the sum of natural increase and migration increase, certain discrepancies may be noted. The reason is that, following the census, revisions have been made to statistics of total population, but it has not been possible to make corresponding adjustments to migration or natural increase figures. A further discrepancy may be due to the exclusion from the migration statistics of movements of members of the Armed Forces.

POPULATION PROJECTION.—It is of interest to note that New Zealand reached its first million of population in December 1908 and the second million in August 1952, the population thus having doubled in approximately 43¾ years.

Interest in the future population of New Zealand was such that it was obvious there was a real need for up-to-date forecasts. However, to produce forecasts of real value, considerable work is involved in making careful studies of trends in fertility, mortality, immigration, etc. To meet the needs of those wishing to make estimates based on probable future changes in population, the following provisional projections have been made after the 1956 census for the total population, inclusive of Maoris. These are based on two assumptions:

  1. That the annual rate of natural increase will be 15 per thousand persons living.

  2. That the net inflow due to migration will be 10,000 persons per annum.

MEAN POPULATIONFOR TWELVE MONTHS ENDING 31 DECEMBER (INCLUDING MAORIS)

YearEstimated Population
 (000)
19582,269
19592,313
19602,358
19612,403
19622,449
19632,496
19642,544
19652,592
19662,641
19672,691
19682,741
19692,792
19702,844
19712,897
19722,951
19733,005
19743,060
19753,116
19763,173
19773,231
19783,289
19793,348
19803,409
19813,470
19823,532
19833,595
19843,659
19853,724
19863,790
19873,857
19883,925
19893,994
19904,064
19914,135
19924,207
19934,280
19944,354
19954,429
19964,506
19974,584
19984,663
19994,743
2,0004,824

COMPARISON WITH OTHER COUNTRIES.—In the following summary of certain selected countries the two most recent census years are quoted together with the annual average percentage increase of population during the respective intercensal periods.

CountryCensus PeriodAverage Annual Percentage Increase

* Excluding Newfoundland.

† European population.

‡ Including Hyderabad, but excluding Kashmir, Jammu, and the tribal areas of Assam.

§ Excluding full-blooded aborigines.

NOTE.—Minus sign (—) denotes a decrease.

New Zealand1951–562.31
England and Wales1931–510.46
Scotland1931–510.26
Northern Ireland1937–510.48
Republic of Ireland1946–510.03
Austria1939–510.33
Denmark1945–501.04
Finland1940–500.82
France1946–540.92
Hungary1941–49–0.15
Netherlands1930–471.18
Portugal1940–500.89
Sweden1945–501.09
Switzerland1941–501.12
Union of South Africa1946–512.18
India1941–511.26
Pakistan1941–510.80
Ceylon1931–461.51
Australia§1947–542.46
Canada*1941–511.97
United States of America1940–501.36

It will be noted from the above table that the highest annual rate of increase is that shown for Australia—2.46 per cent for the intercensal period 1947–54. During the previous intercensal period, 1933–47, the annual rate of increase was only 0.96 per cent. The large rise in the annual rate, since 1947, is due mainly to post-war immigration.

The next highest rate of increase is that shown for New Zealand, 2.31 per cent. The Union of South Africa (2.18 per cent), Canada (1.97 per cent), and Ceylon (1.51 per cent) show the next highest rates of increase. On the other hand, European countries show the lowest rates of increase—Hungary actually shows a decrease—with the United Kingdom countries recording very low figures.

SEX PROPORTIONS.—The figures for the census of 17 April 1956 show that males outnumber females by 9,333 in the European population, 3,027 in the Maori population, and 12,360 in the total population. Females per 1,000 males were: European, 991; Maori, 957; total population, 989. Net increase of population from migration adds to the male preponderance, but the major source of population increase is the excess of births over deaths, and this results in a female preponderance. Females per 1,000 males at the last five censuses have been—

1926957
1936970
19451,044
1945 (including Armed Forces abroad)991
1951991
1951 (including Armed Forces abroad)989
1956989
1956 (including Armed Forces abroad)987

There are marked differences in the sex proportions of the population of different parts of New Zealand. The following observations relate to the census of 1956 and give the number of females per 1,000 males.

In the aggregate of cities and boroughs the ratio was 1,060, in town districts, 962; and in counties, 887. For the provincial districts ratios were—

Canterbury1,021
Hawke's Bay1,014
Otago (Otago portion)1,009
Wellington990
Auckland981
Taranaki974
Nelson970
Westland940
Marlborough937
Otago (Southland portion)935

Female preponderance in towns does not appear to have a direct relation to the size of the towns. Of the fifteen urban areas which comprise the largest centres of population, ten had ratios higher than the average for all cities and boroughs, but five were below the average, and of these Hutt, fifth largest urban area, even had an excess of males.

Timaru1,106
Napier1,093
Hastings1,085
New Plymouth1,084
Dunedin1,080
Palmerston North1,077
Nelson1,075
Christchurch1,072
Gisborne1,067
Wanganui1,065
Invercargill1,052
Auckland1,045
Hamilton1,041
Wellington1,039
Hutt991

METHOD OF COMPILATION.—In common with almost all countries, the chief instrument in compiling population data in New Zealand is the census, which in this country in normal times is taken quinquennially. The minutiae of the distribution of population, together with analyses of various population characteristics compiled from census data, will be found in the official publications compiled after each census.

The basis adopted for the census, and virtually throughout population statistics in New Zealand, is that of the population present, which may be defined as the population present at the place of enumeration at the time of the enumeration.

All references to New Zealand relate solely to geographic New Zealand—i.e., Island Territories are omitted except hi the first table where their inclusion is specifically stated. Though Cook Islands, Niue Island, and Tokelau Islands are constitutionally part of New Zealand, for geographical reasons they are administered separately.

Maoris are included in all population data unless the contrary is stated. Maori-Europeans who are in half or greater degree of Maori origin are included with Maoris. For some purposes the population dichotomy of European and Maori is necessary or desirable and “European” is used, conveniently if not altogether accurately, as referring to all population other than Maori, a usage long established in New Zealand.

INTERCENSAL RECORDS.—The intercensal statements of total population, prepared from the records of vital statistics and of external migration, have been, by virtue of the favourable position of New Zealand in this respect, relatively accurate. Discrepancies have in fact been so slight that no revisions of the intercensal figures are contemplated.

The following population figures exclude members of New Zealand Armed Forces who were overseas, and also members of the Armed Forces of other countries who were in New Zealand.

Population (Including Maoris) at End of YearIncrease During YearMean Population for Year
MalesFemalesTotalNumericalPer Cent
Years Ended 31 March
1946878,739878,0171,756,75676,7844.571,710,680
1947894,810894,6661,789,47632,7201.861,770,291
1948915,359912,6661,828,02538,5492.151,807,611
1949935,019929,5411,864,56036,5352.001,843,767
1950955,427947,4561,902,88338,3232.061,881,317
1951973,082964,9501,938,03235,1491.851,917,934
1952997,468987,2621,984,73046,6982.411,958,729
19531,024,4631,013,0902,037,55352,8232.662,009,506
19541,049,9631,037,7772,087,74050,1872.462,061,376
19551,072,0901,058,8372,130,92743,1872.072,105,767
19561,094,2831,081,0902,175,37344,4462.092,150,291
Years Ended 31 December
1945855,494872,3231,727,81751,5313.071,694,641
1946891,321889,8931,781,21453,3973.091,759,526
1947910,055907,3981,817,45336,2392.031,798,262
1948929,233924,5731,853,80636,3532.001,834,655
1949949,443942,5991,892,04238,2362.061,871,748
1950967,308960,3211,927,62935,5871.881,909,092
1951989,513981,0091,970,52242,8932.231,947,529
19521,017,8741,006,6822,024,55654,0342.741,996,149
19531,043,1431,031,6382,074,78150,2252.482,048,826
19541,065,4901,052,9442,118,43443,6532.102,094,910
19551,089,0701,075,6642,164,73446,3002.192,138,946

The figures given in the preceding table show the copulation inclusive of Maoris. The following table shows the population exclusive of Maoris.

Population (Excluding Maoris) at End of YearIncrease During YearMean Population for Year
MalesFemalesTotalNumericalPer Cent
Years Ended 31 March
1946826,877828,9671,655,84477,4534.911,610,193
1947841,070843,8701,684,94029,0961.761,667,631
1948860,419860,5381,720,95736,0172.141,701,873
1949878,487876,1111,754,59833,6411.951,735,223
1950897,618892,7101,790,32835,7302.041,770,130
1951913,852908,6741,822,52632,1981.801,803,944
1952936,338929,1041,865,44242,9162.351,841,332
1953961,389952,9651,914,354'48,9122.621,888,334
1954984,822975,5341,960,35646,0022.401,936,202
19551,004,530994,4321,998,96238,6061.971,976,156
19561,024,4271,014,3672,038,79439,8321.992,016,067
Years Ended 31 December
1945804,809823,5481,628,35752,9063.361,593,898
1946838,010839,4881,677,49849,1413.021,657,851
1947855,480855,6401,711,12033,6222.001,693,168
1948873,062871,4891,744,55133,4311.951,726,839
1949891,991888,2371,780,22835,6772.051,761,204
1950908,479904,4671,812,94632,7181.841,795,830
1951928,879923,3371,852,21639,2702.171,831,058
1952955,354947,1021,902,45650,2402.711,875,940
1953978,636969,9991,948,63546,1792.431,924,680
1954998,544989,0841,987,62838,9932.001,966,454
19551,019,7921,009,5732,029,36541,7372.102,005,871

EXTERNAL MIGRATION.—Statistics of external migration have been recorded in New Zealand since 1860. Since 1 April 1921 they have been compiled from individual statements obtained from each person entering or leaving New Zealand.

Including crews of vessels, 134,380 persons from overseas arrived in New Zealand during the year ended 31 March 1956, which, compared with 1954–55, shows an increase of 9,091. During the same period 125,711 persons departed. This figure, compared with the corresponding one for 1954–55, shows an increase of 7,798.

In addition to the figures just quoted there were also 8,264 “through passengers” and tourists on cruising liners who called at a port of New Zealand en route to their destination.

The excess of total arrivals over total departures for 1955–56 was 8,669, compared with an excess of 7,376 during 1954–55.

The numbers of arrivals and departures during the last eleven years are given in the table following. Crews of vessels, “through passengers,” tourists on cruising liners, and members of the Armed Forces, etc., have not been taken into account in this table.

Year Ended 31 MarchArrivalsDeparturesExcess of Arrivals Over Departures
MalesFemalesTotalMalesFemalesTotal
19466,4166,89313,3095,6575,30910,9662,343
194712,68212,67625,35811,41710,90322,3203,038
194817,00416,14033,14413,94513,44327,3885,756
194918,64617,30035,94615,83715,92831,7654,181
195026,19024,69050,88021,47121,52943,0007,880
195128,30926,33554,64423,41123,71147,1227,522
195233,16229,33662,49824,00922,82546,83415,664
195335,57430,66666,24022,39921,80944,20822,032
195432,26629,57961,84524,17622,22846,40415,441
195532,49629,11461,61028,59325,98754,5807,030
195634,78931,68366,47230,33628,04458,3808,092

In 1953–54 the number of arrivals decreased by 4,395 from the preceding year and a further decrease of 235 occurred again in 1954–55. However, this trend has been halted, and in 1955–56 there was an increase in the number of arrivals of 4,862 over the 1954–55 figure.

Departures continued to increase and in 1955–56 the increase was 3,800, compared with an increase of 8,176 in 1954–55.

The decline in the excess of arrivals over departures evident in 1954–55 has been checked and 1955–56 showed a slight increase, the excess being 8,092, compared with 7,030 in the previous year.

In the ten-year period ended 3 i March 1956 the net gain from passenger migration was 96,636, while if movement of crews is taken into account this is increased to 98,045.

Classes of Arrivals and Departures.—The following table gives an analysis of all classes of arrivals during the last five years, including “through passengers,” tourists on cruising liners, and crews. In classifying arrivals or departures as “permanent” the commonly used international rule is applied—i.e., residence or absence of one year or more.

1951–521952–531953–541954–551955–56
Immigrants intending permanent residence24,92229,00524,89619,45320,878
New Zealand residents returning20,42618,57017,44320,21121,915
Visitors—
  Tourists12,32513,30913,85815,82716,884
  On business2,8462,5022,8343,1643,154
  Theatrical, entertaining, etc.582785686629696
  Educational purposes133199128152191
  Others, officials, etc.6131,0351,1981,3861,943
  In transit651835802788811
Through passengers and tourists on cruising liners2,7445,6457,44811,0058,264
Crews49,56155,23155,80363,67967,908
    Totals114,803127,116125,096136,294142,644

The succeeding table gives a similar analysis of departures.

1951–521952–531953–541954–551955–56
New Zealand residents departing—
  Permanently7,3006,2717,0489,0129,436
  Temporarily21,09018,31518,27721,96523,287
Temporary residents departing18,44419,62221,07923,60325,657
Through passengers and tourists on cruising liners2,7445,6457,44811,0058,264
Crews49,74656,92956,19763,33367,331
      Totals99,324106,782110,049128,918133,975

Ages.—The following table gives the age-distribution of immigrants and emigrants for the twelve months ended 31 March 1956.

Age, in YearsPermanent ArrivalsPermanent DeparturesExcess of Arrivals Over Departures
MalesFemalesTotalsMalesFemalesTotals
0–142,0911,9314,0228908861,7762,246
15–242,6032,1694,7721,0621,2352,2972,475
25–343,3842,6956,0791,5011,3542,8553,224
35–441,5501,3732,9235625431,1051,818
45–599031,0941,9973764528281,169
60 and over3537061,059238330568491
Not specified16102625719
  Totals10,9009,97820,8784,6314,8059,43611,442

Of the permanent arrivals during the year 1955–56, 19 per cent were under fifteen years of age, 42 per cent under twenty-five years, 71 per cent under thirty-five years, and 85 per cent under forty-five years. Permanent departures represented a similar age distribution, with percentages of 19, 43, 73, and 85 respectively.

Origin.—The following table shows for the last three years the birthplaces of immigrants intending permanent residence and of New Zealand residents departing permanently.

Abnormal figures are reflected in some years, particularly in those cases where the acceptance of displaced persons or assisted immigrants from countries other than Great Britain (e.g., Netherlands) was for a limited period only.

Country of BirthImmigrants Intending Permanent ResidenceNew Zealand Residents Departing Permanently
1953–541954–551955–561953–541954–551955–56
Commonwealth Countries
England and Wales10,7257,5538,8811,6772,5722,287
Scotland2,3381,6881,834279372414
Northern Ireland507311401619862
United Kingdom (undefined)311261238404952
India370290'2777891115
Canada201329347505979
Australia2,0911,9941,731765845804
Gook Islands and Niue314425383293033
Fiji200179178425249
New Zealand3,6223,0963,2303,3593,9024,592
Other Commonwealth countries in the Pacific218211255617269
Other countries within the Commonwealth316308360968787
  Totals, Commonwealth countries21,21316,64518,1156,5378,2298,643
Other Countries
Republic of Ireland60139646571155159
Russia (U.S.S.R.)321828142215
Poland383320161422
Germany1148985182925
Netherlands1,6811,1901,06982168208
Czechoslovakia91812498
Yugoslavia61514981114
Rumania17885810
Indonesia4442507812
China22512513892622
United States of America248297278133131142
Others593526551139200156
  Totals, other countries3,6632,7932,753506781793
At sea121   
Not specified1913952 
    Grand totals24,89619,45320,8787,0489,0129,436

Assisted Immigration.—Various systems of assisted immigration have been in force since 1871, with the exception of the period 1892 to 1903 (inclusive). The scheme that was operating prior to 1947 had been largely suspended since 1927, and only 50 immigrants received financial assistance during the ten years ended 31 March 1946.

To alleviate the shortage of staffs in mental hospitals the Government decided in 1946 to recruit labour in the United Kingdom, and the number of arrivals under this system totalled 240 (all females).

In July 1947 a comprehensive assisted-passage scheme was introduced by the Government. Under this scheme financial aid was granted to certain categories of immigrants. Eligibility was confined to single residents of the United Kingdom (with no dependants) between the ages of twenty and thirty-five years who were suitable for, and willing to accept employment in, a wide variety of productive and servicing occupations. All assisted immigrants were required to enter into a contract with the New Zealand Government that they would engage in approved employment for two years after their arrival in New Zealand.

A scheme of child migration from the United Kingdom was in operation from June 1949 to May 1953. Arrivals of British children between the ages of five and seventeen years totalled 169 in 1949–50, 107 in 1950–51, 99 in 1951–52, 87 in 1952–53, and 68 up to terminating date during 1953–54.

In May 1950 a new immigration policy was announced by the Government, the main changes being as follows:

  1. The existing scheme in regard to unmarried British immigrants, including nominations, to continue, but with an extension of the age limit from thirty-five to forty-five years of age.

  2. Extension of the free-passage scheme to certain categories of married British immigrants with up to two children.

  3. The acceptance, after negotiation and conclusion of agreements with the countries concerned, of a number of single non-British men and women between the ages of twenty and thirty-five years. Dutch, Danish, Swiss, Austrian, and German nationals are being selected.

The number of assisted immigrants (exclusive of displaced persons) arriving in New Zealand since the reintroduction of the scheme in 1947 was as follows.

 BritishDutchTotal
Year ended 31 March 1947158 158
19481,140 1,140
19491,527 1,527
19502,532 2,532
19512,873552,928
19523,8491,1004,949
19534,8722,7097,581
19545,6116886,299
19553,8804524,332
19564,7323915,123

In the preceding migration tables assisted immigrants are included in the totals of “Immigrants intending permanent residence”.

Displaced Persons.—Commencing with the year 1949–50 the Government agreed to accept drafts of displaced persons from Europe, who were brought to New Zealand in shipping provided by the International Refugee Organization. These settlers were chosen by a New Zealand Selection Mission, and arrivals totalled 941 in 1949–50, 978 in 1950–51, and 2,663 in 1951–52, made up of young single men and women, widows with one child, family groups, orphans, and a number of elderly people. This scheme was brought to an end with the arrival in April 1952 of the final two displaced persons accepted by the Government.

PASSPORTS.—Authority for the issue of passports in New Zealand and by New Zealand representatives overseas is contained in the Passports Act 1946 and the Passport Regulations 1946.

New Zealand passports are issued by the Department of Internal Affairs at Wellington, Auckland, and Christchurch. United Kingdom, Canadian, Australian, and Indian passports are issued by the respective High Commissioners for those countries. The representatives of New Zealand at London, Washington, New York, San Francisco, Ottawa, Canberra, Paris, The Hague, Bombay, Tokyo, Singapore, and Bangkok, are authorized to issue and renew New Zealand passports.

Entry into New Zealand.—Apart from British subjects arriving from Australia, no person sixteen years of age or over may land in New Zealand unless in possession of a valid passport or other travel document satisfactorily establishing nationality and identity. Exemption (which is additional to the requirements of the Immigration Restriction and Undesirable Immigrants Exclusion Acts) may be granted by the Minister of Internal Affairs. With the exception of nationals of those countries with which New Zealand has concluded agreements for the mutual abolition of visas, all aliens require a British visa.

People born in Niue and Cook Islands are British subjects and New Zealand citizens. They require to obtain formal exit permission from the Resident Commissioner if they wish to proceed to New Zealand.

Most people born in Western Samoa are New Zealand protected persons. If they wish to visit New Zealand as temporary visitors for periods of up to three months they must obtain prior permission from the High Commissioner for Western Samoa. Those desiring to enter New Zealand for longer periods than three months are required in addition to make prior application to the Secretary of Labour, Department of Labour, Wellington.

A British subject who is the master or a member of the crew of the vessel in which he arrives does not need to produce a passport.

Departure from New Zealand.—British subjects leaving New Zealand, with the exception of those travelling to Australia or making the round trip to New Zealand's island territories, should be in possession of a valid passport or other travel document.

IMMIGRATION RESTRICTION.—The legislation respecting the restriction of immigration into New Zealand is contained in the Immigration Restriction Act 1908 and its amendments, and the Undesirable Immigrants Exclusion Act 1919.

The Immigration Restriction Act is administered by the Department of Labour, while the Undesirable Immigrants Exclusion Act is administered by the Department of Justice.

Subject to certain exemptions, the following classes of persons are prohibited from landing in New Zealand:

  1. Persons not of British birth, unless in possession of permits issued by the Department of Labour. (Note.—A person is not deemed to be of British birth by reason that he or his parents or either of them is a naturalized British subject, or by reason that he is an aboriginal Native or the descendant of an aboriginal Native of any dominion (other than New Zealand), colony, possession, or protectorate of Her Majesty.)

  2. Idiots or insane persons.

  3. Persons suffering from contagious diseases which are loathsome or dangerous.

  4. Persons arriving in New Zealand within two years after the termination of a period of imprisonment for a serious offence.

  5. Persons who are considered by the Attorney-General to be disaffected or disloyal, or of such a character that their presence in New Zealand would be injurious to the peace, order, and good government of the country.

  6. Aliens of the age of fifteen years or over who refuse or neglect to take an oath (or make an affirmation) of obedience to the laws of New Zealand.

To obtain permits to enter New Zealand as permanent residents, application must be made by the intending immigrants themselves to the Secretary of Labour, Wellington. The application must be made in the prescribed form and must be supported by documents duly attested in the country of origin, in which country the applicant must have resided for at least twelve months prior to the date of application. Each application is considered individually on its own merits.

Provision is made in the law to permit persons covered by clause (1) above to pay temporary visits to New Zealand for the purposes of business, pleasure, or health. Temporary permits are normally restricted to some period not exceeding six months, but may be extended if the proper authorities consider that the circumstances warrant such action. A deposit may be required in respect of such temporary permit, and is returned on the departure of the visitor if the conditions of the temporary permit have been complied with. A deed to be entered into by some approved person or persons resident in New Zealand guaranteeing to pay all expenses that may be incurred by the Crown or any public body for the visitor's maintenance, relief, arrest, or detention in New Zealand or his deportation therefrom may also be required.

Provision is also made whereby, under certain conditions, students may be allowed to enter New Zealand temporarily.

Restricted Immigrants.—When persons who are lunatic, idiotic, deaf, dumb, blind, or infirm arrive in New Zealand and are likely to become a charge upon the public or upon any public or charitable institution, the master, owner, or charterer of the ship by which such persons came to New Zealand may be called on to enter into a bond of £100 for each such person, guaranteeing payment of any expenses which may be incurred for his support and maintenance by or in any such institution within a period of five years.

Declaration by Persons Arriving in New Zealand.—Every person of and over the age of fifteen years who lands in New Zealand must, unless exempted by the Minister of Immigration, make and deliver an officer of Customs a declaration giving the following particulars: Name, age, marital status, occupation, birthplace, nationality, race, particulars of children under fifteen years of age arriving with him, residence, etc.

NATIONALITY AND NATURALIZATION.—The British Nationality and New Zealand Citizenship Act 1948, which came into force on 1 January 1949, was enacted following a conference of nationality experts of Commonwealth countries in February 1947 to discuss the basis of new nationality legislation. The scheme of the new legislation accepted by Commonwealth Governments is the “common status” of all British subjects, namely, that in each Commonwealth country all persons are recognized as British subjects who possess citizenship under the citizenship laws of any of the members of the Commonwealth. (Note.—The Act states that “British subject” and “Commonwealth citizen” have the same meaning.)

Upon the commencement of the Act, New Zealand citizenship was automatically conferred on the following classes of British subjects:

  1. Those born in New Zealand.

  2. Those naturalized in New Zealand.

  3. Those ordinarily resident in New Zealand throughout the whole of the year 1948.

  4. Those whose fathers were British subjects born or naturalized in New Zealand.

  5. Women married before the commencement of the Act to men who become citizens under the various provisions of the Act.

Since the commencement of the Act, New Zealand citizenship may be acquired in the following ways:

  1. By birth in New Zealand.

  2. By descent.

  3. By registration.

  4. By naturalization.

Citizens of other Commonwealth countries acquire New Zealand citizenship by registration. The requirement is twelve months' ordinary residence. A British woman married to a New Zealand citizen is entitled to registration without any residence qualification.

The principal conditions governing the grant of naturalization to aliens under the 1948 Act are that the applicant shall satisfy the Minister of Internal Affairs (a) that he has resided in New Zealand for a period of five years, (b) that he is of good character and has a sufficient knowledge of the English language, (c) that if his application is granted he intends to reside permanently in New Zealand, (d) that the applicant gives a year's notice of his intention to apply, and (e) that the applicant possesses a sufficient knowledge of the responsibilities and privileges of New Zealand citizenship. There is discretionary provision for the Minister to allow residence in other Commonwealth countries to be reckoned for the purposes of the first condition, but in such cases a minimum of two years' residence in New Zealand is essential.

Naturalization granted to a married man does not automatically confer New Zealand citizenship on his wife and children, if they are aliens. These dependants may apply to be registered as New Zealand citizens after the head of the family has been naturalized. An alien woman marrying a British subject does not acquire her husband's nationality on marriage, but may apply to be registered as a British subject and New Zealand citizen. Acquisition of citizenship by naturalization or registration automatically confers the status of a British subject, and the two methods of acquiring citizenship are differences in legal procedure only.

A British woman marrying an alien does not lose her nationality under the present Act.

The complete numbers of naturalizations, registrations, etc., during the year ended 31 March 1956 were as follows.

Country of BirthCertificates of Naturalization (Aliens and British-protected Persons)Certificates of Registration as a New Zealand Citizen (British Subjects, Irish Citizens, British-protected Persons, and Aliens)Certificates of Registration as a New Zealand Citizen—Minor Children (British Subjects and Aliens)
MalesFemalesMalesFemalesMalesFemales
United Kingdom  138721413
Northern Ireland  6   
Federation of Rhodesia and Nyasaland    2 
Union of South Africa   2  
Cyprus   2  
India3 13982
Pakistan  1   
Federation of Malaya   1  
Hong Kong  1   
Canada  1   
Australia  421 
Western Samoa2  41 
Fiji  21  
Tonga1  2  
Republic of Ireland  82  
Norway21 122
Sweden1     
Denmark6  351
Finland   1  
Russia (U.S.S.R.)14413  
Estonia34 21 
Latvia55 7 1
Lithuania5  531
Poland203 114 
Germany143 1664
Netherlands61  2445
France1  1  
Spain1     
Switzerland5  3  
Italy83 4 1
Czechoslovakia222 1042
Austria31 4 4
Hungary54 8  
Yugoslavia10  611
Rumania 1 1  
Greece1  2  
Egypt1  3  
Turkey 2    
Syria 11   
Lebanon   1  
Burma  10621
Indonesia12  22 
China13  526
Japan   1  
United States of America   11 
Society Islands1  1  
At sea1     
      Totals221341862296344

Of the certificates of registration granted to adult males, 183 were to British subjects or Irish citizens who acquired New Zealand citizenship by virtue of one year's residence in the country immediately preceding the date of application, and 3 to British subjects generally resident outside New Zealand who were registered as New Zealand citizens by virtue of their close associations by way of descent, residence, or otherwise, with New Zealand.

The certificates of registration granted to adult females were 82 to British subjects who acquired New Zealand citizenship by virtue of one year's residence in the country immediately preceding the date of application, 22 to British wives of New Zealand citizens, and 125 to alien women married to New Zealand citizens by birth or naturalization.

Certificates of registration granted to minor children were 96 (57 males, 39 females) to children of New Zealand citizens by naturalization or registration, and 11 (6 males, 5 females) who lodged applications independently.

REGISTRATION OF ALIENS.—The registration of aliens in New Zealand is provided for by the Aliens Act 1948, the administration being carried out by the Police Department. This Act repealed earlier enactments relating to aliens.

The number of aliens on the New Zealand register at 1 April 1956 was 25,184, comprising 16,337 males and 8,847 females. This is not the complete number in New Zealand, as certain classes are not required to register, including the following: (a) children under sixteen years of age; (b) persons holding diplomatic status, Consuls, or employees of Embassies, Legations, and Consulates who are resident in New Zealand solely for the purpose of performing official duties; (c) certain temporary visitors to New Zealand'; (d) Western Samoans, except in special circumstances. Under the British Nationality and New Zealand Citizenship Act 1948 a citizen of the Republic of Ireland, though not possessing the status of British subject (or, in alternative phraseology, Commonwealth citizen), is nevertheless not classed as an alien and is not required to register.

The following table shows the numbers on the register at 1 April 1955 and 1 April 1956.

Country of Nationality1 April 19551 April 1956
MalesFemalesTotalMalesFemalesTotal
Norway1203715712737164
Sweden77291067832110
Denmark385207592406226632
Finland58451035843101
Russia (U.S.S.R.)1278220912377200
Estonia70901606792159
Latvia226237463215221436
Lithuania83811647876154
Poland9886961,6849916881,679
Germany165216381169222391
Netherlands7,6793,69411,3737,9964,05512,051
Belgium301545331649
France71851567776153
Portugal591451015
Switzerland305151456331174505
Italy246168414260177437
Czechoslovakia23110133221385298
Austria2025525721661277
Hungary14810024814387230
Yugoslavia7073471,0547053601,065
Albania31 3131 31
Rumania493281472774
Bulgaria1421215414511156
Greece6144501,0646374701,107
Lebanon191231191029
China2,2971,0033,3002,3441,0643,408
United States of America625306931675316991
Other countries70361066658124
Stateless98911898276158
      Totals15,8688,38724,25516,3378,84725,184

The number of aliens on the register at 1 April 1956 shows an increase of 929 as compared with twelve months earlier. The only country which contributed a substantial increase was Netherlands, the increase being 678. Other countries showing increases of note were United States of America, 60; China, 108; Switzerland, 49; and Denmark, 40.

Decreases were shown by several countries, the largest being Czechoslovakia, 34.

The following table shows the number of aliens on the register classified by ages and country of nationality.

ALIENSON NEW ZEALAND REGISTERAT 1 APRIL 1956 AGE, BYCOUNTRYOFNATIONALITY

Country of NationalityAge in YearsTotal
Under 2121–2930–3940–4950–5960–6970 and OverNot Specified
Males
Norway4224012171814 127
Sweden2101212111714 78
Denmark1210212397351819 406
Finland26172355  58
Russia (U.S.S.R.)411323424153 123
Estonia36339754 67
Latvia1026695141153 215
Lithuania18283281  78
Poland52294295198119303 991
Germany9613821121414 169
Netherlands2134,5112,5994811374312 7,996
Belgium 1084218 33
France71915161154 77
Portugal1121    5
Switzerland711010948242310 331
Italy12688039341611 260
Czechoslovakia37075402041 213
Austria5147486334 216
Hungary3364628219  143
Yugoslavia191151741521388126 705
Albania 191011   31
Rumania27201251  47
Bulgaria27653104   145
Greece26149164149933818 637
Lebanon 9721   19
China17642415220869446022912,344
United States of America29135243107714545 675
Other countries3231413535 66
Stateless27191623114 82
      Totals, males6096,4824,5251,8221,566881451116,337
Females
Norway 812881  37
Sweden 9910112 32
Denmark184678611481 226
Finland2819131   43
Russia (U.S.S.R.)61022181443 77
Estonia7637221091 92
Latvia42865940178 221
Lithuania310385631 76
Poland93260176050145 688
Germany107561 181113 222
Netherlands1322,2371,16233213152814,055
Belgium 571 12 16
France323247784 76
Portugal12331   10
Switzerland94652391396 174
Italy643572626136 177
Czechoslovakia22023211351 85
Austria 24167545 61
Hungary414221515611 87
Yugoslavia21701057266233 360
Rumania 61272   27
Bulgaria 54 11  11
Greece25112135114452415 470
Lebanon 17 11  10
China9022494274280841711,064
United States of America10726574542219 316
Other countries222164473 58
Stateless 715192294 76
      Totals, females4483,3932,3361,34584833713828,847

The next table shows the number of aliens on the register at 1 April 1956, classified by occupational groups and principal countries of nationality.

Occupational GroupNationalityTotal
PolandNetherlandsGreeceChinaOther Countries (Including Stateless)
Males
Architects, engineers, surveyors, draughtsmen, and related technicians13993 77192
Biologists, agricultural, silvicultural, and animal scientists, and veterinarians and related workers3281 2961
Nurses, health technicians, and midwives232231251
Teachers (including University teachers)231 22762
Clergy23516155199
Other professional, technical, and related workers (including professional accountants, social scientists, and social workers)231  2053
Proprietors, directors, and managers: wholesale and retail trade44021505107677
Proprietors, directors, and managers, n.e.c.139211971151
Office clerks, n.e.c.40285102105442
Salesmen, shop assistants, and related workers: wholesale and retail trade61671021986488
Commercial travellers and manufacturers' agents 43182173
Farmers, farm managers, and overseers82643553151979
Specialised farm workers (including farm machinery drivers and operators, shearers, etc.)337  1151
Other farm workers23965 2801561,424
Fishermen and related workers 43 4855
Forestry and related workers (including loggers)629  4277
Stevedores, dock and wharf labourers86106321116341
Drivers, n.e.c. and deliverymen3023813669356
Other workers in transport occupations274326138135
Spinners, weavers, knitters, dyers, and related workers832333278
Tailors, cutters, furriers, and related workers156310444136
Leather cutters, lasters and sewers, and related workers16189 2871
Carpenters, joiners, cabinet makers, coopers, and related workers738241333831,296
Furnacemen, rollers, drawers, moulders, and related metal making and treating workers14541233104
Toolmakers, machinists, plumbers, welders, platers, and related workers1001,15550184271,750
Electricians and related electric and electronics workers28321201170450
Bricklayers, masons, and related workers1232125 175533
Compositors, pressmen, photo-engravers, bookbinders, and related workers3651336108
Bakers, millers, brewmasters, and related food and beverage workers35254121987407
Skilled and semi-skilled production process and related workers126885107200
Labourers n.e.c.3111,6652451479083,276
Housekeepers, stewards, cooks, and related workers753285550193
Waiters, bartenders, and related workers7332112578
Building caretakers, cleaners, and related workers7221412569
Launderers, dry cleaners, and pressers614611910155
Other personal service workers3591 1780
Other occupations33292138247593
Occupations ill-defined or not classifiable15841362100274
Persons not actively engaged in gainful occupations287416268223609
Armed forces 9  110
      Totals, males9917,9966372,3444,36916,337
Females
Nurses, health technicians, and midwives121411293249
Teachers (including University teachers)6131 3252
Clergy6   52.58
Typistes, stenographers, and related workers481208247225
Office clerks, n.e.c.5315618475306
Saleswomen, shop assistants, and related workers146285836178
Spinners, weavers, knitters, dyers, and related workers165019 40125
Tailoresses, cutters, furriers, and related workers110230729209630
Skilled and semi-skilled production process and related workers10371723197
Labourers, n.e.c.6715989111334–59
Housekeepers, stewardesses, maids, cooks, and related workers83753472363561,475
Waitresses, barmaids, and related workers940652181
Other personal service workers2373 1759
Other occupations481803737145447
Occupations ill-defined or not classifiable4322134148254700
Persons no; actively engaged in gainful occupations1611,8561105501,0293,706
      Totals, females6884,0554701,0642,5708,847

The final table on aliens shows, for the same countries as in the previous table, the geographical location of those on the register.

LocalityNationalityTotal
PolandNetherlandsGreeceChinaOther Countries (Including Stateless)
Males
Auckland Urban Area1251,377146501,2933,459
Hamilton Urban Area2019213587335
Gisborne Urban Area26144130138
Remainder of Auckland Provincial District831,69282436902,716
Napier Urban Area124383827128
Hastings Urban Area683212831169
Remainder of Hawke's Bay Provincial District789 4617159
New Plymouth Urban Area226921742152
Remainder of Taranaki Provincial District401361981267
Wanganui Urban Area8735754147
Palmerston North Urban Area17127197769309
Hutt Urban Area1273562785222817
Wellington Urban Area3268684224108812,907
Remainder of Wellington Provincial District373177260151772
Marlborough Provincial District552 61376
Nelson Urban Area771 738123
Remainder of Nelson Provincial District1385 441143
Westland Provincial District426151955
Christchurch Urban Area55843371093281,372
Timaru Urban Area251 16675
Remainder of Canterbury Provincial District2018282535270
Dunedin Urban Area2549033144111803
Remainder of Otago portion of Otago Provincial District14344147069511
Invercargill Urban Area52355720272
Remainder of Southland portion of Otago Provincial District9134 514162
      Totals, males9917,9966372,3444,36916,337
LocalityNationalityTotal
PolandNetherlandsGreeceChinaOther Countries (Including Stateless)
Females
Auckland Urban Area83800122348361,965
Hamilton Urban Area2212131255213
Gisborne Urban Area243 211379
Remainder of Auckland Provincial District2880011263031,258
Napier Urban Area12277162385
Hastings Urban Area34813111691
Remainder of Hawke's Bay Provincial District84822716101
New Plymouth Urban Area253611334109
Remainder of Taranaki Provincial District25633651148
Wanganui Urban Area543483595
Palmerston North Urban Area1563133038159
Hutt Urban Area60182749119417
Wellington Urban Area2754273401844831,709
Remainder of Wellington Provincial District24186212666404
Marlborough Provincial District124 6536
Nelson Urban Area245 12876
Remainder of Nelson Provincial District450 52281
Westland Provincial District1712718
Christchurch Urban Area444231941241768
Timaru Urban Area123 8335
Remainder of Canterbury Provincial District137651727138
Dunedin Urban Area20249277697469
Remainder of Otago portion of Otago Provincial District513573728212
Invercargill Urban Area296349114
Remainder of Southland portion of Otago Provincial District840 41567
      Totals, females6884,0554701,0642,5708,847

DISTRIBUTION OF POPULATION.—Detailed population statistics are compiled for each census, and these are published in Census Vol. I—Increase and Location of Population. Preliminary figures for the 1956 census for provincial districts, urban areas, counties, cities, boroughs, town districts, extra-county islands, and shipping have been published in “Interim Returns of Population and Dwellings, 1956 Census”. Final figures for these have been published in the “Report on Population, Migration, and Buildings, 1955–56”. In addition to these, Vol. I will show figures for subdivisions of counties into (a) ridings, and (b) townships, localities, etc.

North and South Islands.—In 18.30 the North Island had a larger population than the South, but this position was reversed at the succeeding enumeration, and the South Island had the larger population (exclusive of Maoris) at each census from 1861 to 1896. In 1901 the North Island was found to have slightly the larger total and since then has steadily increased its lead

The following table gives the population of the North and South Islands as disclosed by each census since 1901.

Census YearPopulation (Excluding Maoris)Proportions Per Cent
North IslandSouth IslandTotalNorth IslandSouth Island

* Includes Maori half-castes (total, 4,236) living as Europeans.

1901388,626381,678770,30450.4549.55
1906474,605411,390885,99553.5746.43
1911561,281444,3041,005,58555.8244.18
1916648,439447,7891,096,22859.1540.85
1921741,255*477,658*1,218,913*60.8139.19
1926831,813512,6561,344,46961.8738.13
1936938,939552,5451,491,48462.9537.05
19451,050,984552,5701,603,55465.5434.46
19511,202,357621,4391,823,79665.9334.07
19561,365,470671,4412,036,91167.0432.96

The natural increase of European population (i.e., excess of births over deaths) for the North Island during the 1951–56 intercensal period was 103,999, and the total net increase 163,113. For the South Island the natural increase was 45,832, and the total net increase 50,002. The population of the North Island has increased at a greater proportionate rate than the South Island between the 1951 and 1956 censuses. Inclusive of Maoris, the North Island increase was 183,495, or 13.97 per cent, and the South Island increase 51,095, or 8.17 per cent.

At the 1956 census the North Island population was 1,497,364, inclusive of 131,894 Maoris; and the South Island population 676,698, inclusive of 5,257 Maoris.

Provincial Districts.—The approximate areas and the estimated populations, inclusive of Maoris, of the various provincial districts are given in the next table.

For the guidance of overseas readers it is necessary to explain that there have been no provinces in New Zealand since 1875. Provincial districts are simply the former provinces, but they have no functions and are now merely historic divisions serving as useful units for a primary geographical break-down. There is no Southland Provincial District and the “Southland portion of Otago” has little resemblance in area to the former Southland Province.

Provincial DistrictArea (Square Miles)Population Census 1956
Auckland25,420871,745
Hawke's Bay4,260102,326
Taranaki3,75094,109
Wellington10,870429,184
Marlborough4,22025,697
Nelson10,87070,848
Westland4,88018,508
Canterbury13,940307,513
Otago—
  Otago portion14,070168,861
  Southland portion11,46085,271
New Zealand103,7402,174,062

The foregoing table illustrates the wide disparities in the size of the provincial districts, whether measured by area or by population.

Urban and Rural Population.—On 17 April 1956 somewhat over two-fifths (43.3 per cent) of the population of New Zealand (excluding Maoris) were included in the five principal urban areas—Auckland, Hutt, Wellington, Christchurch, and Dunedin—and over one-half (57.7 per cent) in all the urban areas. In the following table urban population means the population in cities and boroughs, while rural population covers counties, all town districts, and extra-county islands. It will be observed that there was a marked slackening in the rate of the urban drift between 1926 and 1936, but the 1945 figures, due no doubt to wartime influences, disclosed a substantial increase in the urban population, whereas the rural population for the first time recorded a decrease. In the 1945–51 period a substantial gain was recorded in the rural population, but it was insufficient to prevent further deterioration of its ratio to total population. This drop in the ratio of rural population has continued in the period 1951–56.

CensusPopulationPercentage of Total
RuralUrbanMigratoryRuralUrbanMigratory

* Figures exclude military and internment camps.

† Figures include Armed Services in New Zealand at census date and internment camps, but exclude members of the United States Forces present in New Zealand and also enemy prisoners of war.

‡ Inclusive of Maori half-castes (3,221 in 1916 and 4,236 in 1921) living as Europeans.

Excluding Maoris—
  1901416,701349,8423,76154.0945.420.49
  1906457,297424,2514,44751.6147.890.50
  1911495,577505,0035,00549.2850.220.50
  1916*501,956585,3063,46346.0253.660.32
  1921531,694681,9885,23143.6255.950.43
  1926552,344785,0407,08541.0858.390.53
  1936602,519884,2934,67240.4059.290.31
  1945591,8551,008,5343,16536.9162.890.20
  1951654,9211,163,0905,78535.9163.770.32
  1956704,5361,327,9964,37934.5965.200.21
Including Maoris—
  1926610,446790,5557,13843.3556.140.51
  1936677,087892,0244,69943.0256.680.30
  1945674,8211,024,2923,18539.6460.170.19
  1951748,9221,184,6725,87838.6261.080.30
  1956809,2671,360,3474,44837.2262.570.21

Another conception of urban and rural population is presented in the next table. For this purpose urban population has been taken as that enumerated in cities, boroughs, or town districts with a minimum population of 1,000. Migratory population is excluded.

Including MaorisExcluding Maoris
1926195619261956
Numbers
Urban : towns of—
1,000–2,500104,36065,931102,20171,249
2,500–5,00086,408158,60585,430155,068
5,000–10,00082,662133,60082,144116,592
10,000–25,000186,545297,699185,580289,271
25,000 or over338,213701,948337,221690,231
  Totals, urban798,1881,357,783792,5761,322,411
Rural602,813816,279544,808714,500
  Totals, New Zealand1,401,0012,174,0621,337,3842,036,911
Percentages
Urban : towns of—
1,000–2,5007.453.037.643.50
2,500–5,0006.177.296.397.61
5,000–10,0005.906156.145.72
10,000–25,00013.3113.6913.8814.20
25,000 or over24.1432.2925.2133.89
  Totals, urban56.9762.4559.2664.92
Rural43.0337.5540.7435.08
  Totals, New Zealand100.00100.00100.00100.00

Some apparent anomalies, where the numbers exclusive of Maoris exceed those inclusive of Maoris, arise from the transfer of towns to other population categories.

An important characteristic of the distribution of urban population in New Zealand is what may be termed its decentralization. In place of one great metropolis containing a huge proportion of the population, the more highly urbanized portion of the community is localized in four widely separated centres. These four centres (counting Wellington and Hutt as a single conurbation) have always existed more or less on the same plane, a fact which has played no small part in the development of the country. An interesting feature is the wide gap which has long existed between the four major centres and the next largest towns.

Urban and rural communities are not evenly distributed. The South Island, for example, contains proportionately more rural population than does the North Island.

RECENT MOVEMENTS IN TOWNS AND COUNTIES: Urban Areas.—These are statistical conceptions and not administrative units. Their purpose is to provide definite, stable, and comparable boundaries for the larger centres of population. In addition to the central city or borough, they include neighbouring boroughs, town districts, and parts of counties which are regarded as suburban to the centre of population.

Urban areas were formed in 1917 and, except for two additions and one deletion, remained unaltered until 1951, when a revision of boundaries was made and the new areas used in the 1951 census. From census records and maps revised population figures were prepared on the basis of the new boundaries. In the case of European population the figures were revised for each census back to 1911, and on the basis of population including Maoris the revision was possible back to the 1926 census. The most significant change resulting from this revision was the division of the former Wellington Urban Area, plus additional areas to the north, into the two adjacent urban areas of Hutt and Wellington. The two areas in a sense form a single conurbation, and for some purposes it may still be convenient to use a combined figure. However, the extent and pattern of development in the Hutt Valley have been such as to establish it as a centre complementary to Wellington but no longer suburban to it. In Auckland the boundaries were extended considerably, but in most other cases it was found that little change was necessary.

Urban AreaPopulation (Including Maoris)Population Increase 1951–56
1936194519511956NumericalPercentage
Auckland226,366286,767329,123381,06351,94015.78
Hamilton20,09627,31933,13740,6467,50922.66
Gisborne15,87816,99519,77422,6222,84814.40
Napier19,17020,74124,53827,5072,96912.10
Hastings17,92020,30623,79727,7873,99016.77
New Plymouth18,59721,05724,92328,2923,36913.52
Wanganui25,75026,26229,71732,1002,3838.02
Palmerston North24,37227,82032,90837,7754,86714.79
Hutt37,29555,78674,87886,05311,17514.92
Wellington122,062132,305133,414138,2974,8833.66
Nelson13,49316,52320,49722,5032,0069.79
Christchurch133,515151,068174,221193,36719,14610.99
Timaru18,77119,67222,85124,6941,8438.07
Dunedin85,60787,58795,45799,3703,9134.10
Invercargill25,91227,75531,61335,1073,49411.05
      Totals804,804937,9631,070,8481,197,183126,33511.80

In the twenty years covered by the table all urban areas have consistently recorded increases in population. Auckland has had the greatest numerical growth in this period, Hamilton and Hastings the highest proportionate increase.

Wellington Urban Area's increase of nearly 4 per cent between 1951 and 1956, compared with under 1 per cent in the previous intercensal period, resulted mainly from housing development in the Titahi Bay and Porirua areas. The rate of growth of Hutt Urban Area is seen to be slowing down in the last intercensal period, the greatest expansion now taking place in the Upper Hutt Borough just north of the urban area. For Hutt and Wellington Urban Areas combined the increase rate was 7.71 per cent, a rate exceeded by all urban areas except Dunedin.

Of particular interest is the marked increase in the Maori population in urban areas during the last twenty years. In Auckland the number of Maoris increased from 1,863 in 1936 to 11,361 in 1956. In the fifteen urban areas there were 5,371 Maoris in 1936 as compared with 22,825 in 1956.

The next table contains the population (Maoris included) of the fifteen urban areas as recorded at the census of 17 April 1956. The component parts of the five largest centres of population are given in detail, while for the remaining ten areas totals only are quoted. In most of the ten cases the urban area comprises the central city or borough plus the urban portion of the adjoining county. At the 1956 census the five largest urban areas had a total population of 898,150, this being equivalent to 41.31 per cent of the New Zealand total. The total for all urban areas at the same date was 1,197,183, or 55.07 per cent, of the total population of New Zealand.

Urban AreaPopulation (Including Maoris)
Auckland
Auckland City136,540
  East Coast Bays Borough7,498
  Birkenhead Borough5,644
  Northcote Borough3,777
  Takapuna Borough18,724
  Devonport Borough11,179
  Henderson Borough2,623
  Glen Eden Borough4,096
  New Lynn Borough7,547
  Mount Albert Borough25,644
  Mount Eden Borough18,629
  Mount Wellington Borough11,990
  Newmarket Borough2,217
  Ellerslie Borough4,501
  One Tree Hill Borough12,889
  Mount Roskill Borough25,555
  Howick Borough3,788
  Onehunga Borough16,702
  Otahuhu Borough8,555
  Papatoetoe Borough11,031
  Manurewa Borough4,596
  Papakura Borough5,235
  Remainder of urban area32,103
      Total381,063
Hutt
Lower Hutt City47,813
  Upper Hutt Borough12,226
  Petone Borough10,288
  Eastbourne Borough2,724
  Remainder of urban area13,002
      Total86,053
Wellington
Wellington City122,070
  Tawa Flat Borough4,015
  Remainder of urban area12,212
      Total138,297
Christchurch
Christchurch City142,711
  Riccarton Borough7,914
  Lyttelton Borough3,589
  Heathcote County5,228
  Remainder of urban area33,925
      Total193,367
Dunedin
Dunedin City71,277
  Port Chalmers Borough3,012
  West Harbour Borough2,182
  St. Kilda Borough6,946
  Green Island Borough4,482
  Mosgiel Borough4,050
  Remainder of urban area7,421
      Total99,370
Hamilton40,646
Gisborne22,622
Napier27,507
Hastings27,787
New Plymouth28,292
Wanganui32,100
Palmerston North37,775
Nelson22,503
Timaru24,694
Invercargill35,107

Counties.—The following table gives the population (including Maoris) of individual counties at the 1956 census, together with the approximate area of each. It should be noted that “Administrative Counties” do not include boroughs or town districts independent of county control, but include town districts which form parts of counties.

Administrative CountyPopulation (Including Maoris)Approximate Area, in Acres
North Island—
  Mangonui7,754958
  Whangaroa2,503240
  Hokianga7,325613
  Bay of Islands12,310823
  Whangarei14,3921,042
  Hobson6,709745
  Otamatea6,826421
  Rodney6,532477
  Waitemata32,224600
  Great Barrier Island271110
  Manukau21,679240
  Franklin17,932550
  Raglan12,062930
  Waikato16,259644
  Waipa17,691444
  Otorohanga7,881762
  Waitomo9,1791,301
  Taumarunui4,239878
  Coromandel2,761444
  Thames3,209414
  Hauraki Plains5,75223?
  Ohinemuri4,401241
  Piako12,374444
  Matamata19,303994
  Tauranga18,853717
  Rotorua14,5071,040
  Taupo9,6163,040
  Whakatane15,0961,680
  Opotiki5,1521,326
  Matakaoa1,834295
  Waiapu6,228793
  Uawa1,707261
  Waikohu3,7351,018
  Cook8,903818
  Wairoa8,0001,385
  Hawke's Bay19,7841,671
  Waipawa3,962524
  Patangata3,522651
  Waipukurau1,291128
  Dannevirke4,838546
  Woodville1,840156
  Ohura1,881423
  Clifton2,772443
  Taranaki9,072229
  Inglewood3,322199
  Stratford6,219866
  Egmont6,347240
  Eltham3,631207
  Waimate West2,99883
  Hawera6,603191
  Patea4,007591
  Kaitieke3,800550
  Waimarino2,688829
  Waitotara3,496468
  Wanganui3,614460
  Rangitikei13,2071,729
  Kiwitea2,362359
  Pohangina1,297259
  Oroua4,616190
  Manawatu7,215265
  Kairanga6,258184
  Horowhenua9,284544
  Hutt23,352450
  Makara10,39399
  Pahiatua2,837286
  Akitio1,189321
  Eketahuna1,906311
  Mauriceville546115
  Castlepoint635230
  Masterton3,507586
  Wairarapa South3,090440
  Featherston3,787952
      Totals536,36743,696
South Island—
  Sounds951457
  Marlborough8,7681,947
  Awatere1,6921,030
  Kaikoura3,243905
  Amuri2,9812,285
  Cheviot1,466327
  Collingwood1,083552
  Takaka2,235458
  Waimea17,0321,537
  Buller4,5681,885
  Murchison1,4721,372
  Inangahua3,357942
  Grey5,0091,579
  Westland4,5374,410
  Waipara2,813937
  Kowai2,100157
  Ashley692309
  Rangiora3,64496
  Eyre1,626175
  Oxford1,637318
  Tawera754941
  Malvern4,578250
  Paparua13,095136
  Waimairi25,29743
  Heathcote5,22813
  Halswell1,55439
  Mount Herbert60566
  Akaroa1,402169
  Chatham Islands524372
  Wairewa915170
  Springs2,39891
  Ellesmere2,875231
  Selwyn1,658954
  Ashburton11,2892,460
  Geraldine5,336691
  Levels5,243263
  Mackenzie3,1212,739
  Waimate6,3991,383
  Waitaki9,3492,414
  Waihemo1,099338
  Waikouaiti3,898316
  Peninsula3,67740
  Taieri7,204901
  Bruce3,958520
  Clutha6,1211,045
  Tuapeka7,8391,388
  Maniatoto2,7531,340
  Vincent4,8072,922
  Lake1,8123,871
  Southland27,8743,703
  Wallace9,8183,727
  Fiord113,035
  Stewart Island541670
      Totals253,93858,919
      Grand totals790,305102,615

Between the 1951 and 1956 censuses Makara County recorded the highest rate of increase for counties (113 per cent), the bulk of this taking place in the townships of Porirua and Titahi Bay, both dormitory suburbs to Wellington City. Other counties with high rates of increase were Rotorua (55 per cent), Waitemata (53 per cent), Paparua (48 per cent), Malvern (47 per cent), and Matamata (44 per cent). The last was due almost entirely to the expansion of Tokoroa Township in Matamata County, which serves the timber industry located there. The fluctuations in the population of Malvern County (which actually recorded a decline of 13 per cent in the previous intercensal period) result largely from the movement in personnel at Burnham Military Camp. Eden County, which showed a high rate of gain (112 per cent) between 1945–51, was merged into Auckland City at 1 April 1956.

Twenty counties lost population in the 1951–56 intercensal period, ten in each island, the South Island on the whole showing greater proportionate losses. The decline in Mackenzie County, which recorded the highest loss (23 per cent), involving some 900 people, was due mainly to the transfer of Ministry of Works employees to other major public works projects in neighbouring counties.

Boroughs.—Similar information as in the case of counties is now given for boroughs.

BoroughPopulation (Including Maoris)Approximate Area, in Acres

* Proclaimed a city from 8 September 1956.

North Island—
  Kaitaia2,3581,310
  Kaikohe2,1221,342
  Whangarei13,3633,507
  Dargaville3,3062,800
  Helensville1,1511,315
  East Coast Bays7,4983,850
  Takapuna18,7243,280
  Devonport11,1791,100
  Northcote3,7771,190
  Birkenhead5,6443,084
  Henderson2,6231,265
  Glen Eden4,0961,244
  New Lynn7,5471,393
  Auckland (City)136,54018,493
  Newmarket2,217182
  Mount Albert25,6442,430
  Mount Eden18,6291,476
  Mount Roskill25,5554,605
  Onehunga16,7021,876
  One Tree Hill12,8892,430
  Ellerslie4,501745
  Mount Wellington11,9904,075
  Howick3,7881,103
  Otahuhu8,5551,345
  Papatoetoe11,0311,587
  Manurewa4,5961,545
  Papakura5,2352,010
  Pukekohe4,6893,470
  Waiuku1,4171,465
  Tuakau1,3261,091
  Huntly4,1871,678
  Cambridge3,4081,280
  Ngaruawahia2,7031,112
  Hamilton (City)35,9416,145
  Te Awamutu4,6141,162
  Otorohanga1,917560
  Te Kuiti3,7811,668
  Taumarunui3,3441,925
  Thames5,0012,712
  Paeroa2,8711,419
  Waihi3,0751,330
  Te Aroha2,8542,783
  Morrinsville3,552950
  Matamata2,703934
  Putaruru2,815975
  Mount Maunganui3,4323,475
  Tauranga9,5722,748
  Te Puke1,9251,047
  Rotorua12,3023,611
  Taupo2,8492,290
  Whakatane5,4451,539
  Kawerau2,7401,718
  Opotiki2,346772
  Gisborne (City)19,6613,610
  Wairoa3,7961,603
  Napier (City)21,2703,007
  Taradale3,3981,002
  Hastings (City)*19,1832,612
  Havelock North2,6431,165
  Waipawa1,6071,710
  Waipukurau2,886971
  Dannevirke5,2941,300
  Woodville1,4391,054
  Waitara3,6751,587
  New Plymouth (City)24,0714,257
  Inglewood1,682703
  Stratford4,8112,016
  Eltham2,1921,599
  Hawera5,620897
  Patea1,8981,420
  Ohakune1,6262,079
  Raetihi1,186958
  Wanganui (City)29,6715,886
  Taihape2,4641,923
  Marton4,0011,415
  Feilding6,7842,031
  Foxton2,525757
  Palmerston N. (City)35,6326,943
  Shannon1,189844
  Levin6,4881/332
  Otaki2,7221,390
  Upper Hutt12,2262,165
  Lower Hutt (City)47,8137,602
  Petone10,2881,132
  Eastbourne2,7241,546
  Tawa Flat4,015799
  Wellington (City)122,07017,789
  Pahiatua2,322720
  Eketahuna774948
  Masterton13,0003,116
  Carterton2,5901,265
  Greytown1,4291,927
  Featherston1,197759
  Martinborough1,1921,070
      Totals943,123217,350
South Island—
  Picton2,0791,052
  Blenheim9,2191,945
  Nelson (City)17,7075,550
  Richmond2,5152,600
  Motueka2,8242,523
  Westport5,522760
  Runanga1,8041,186
  Greymouth8,9482,594
  Brunner1,1445,700
  Kumara505842
  Hokitika3,032674
  Ross5493,800
  Rangiora3,150877
  Kaiapoi2,738786
  Riccarton7,914728
  Christchurch (City)142,71125,647
  Lyttelton3,5892,560
  Akaroa560233
  Ashburton10,1762,501
  Geraldine1,640745
  Temuka2,254795
  Timaru (City)23,3083,524
  Waimate3,107771
  Oamaru9,8011,755
  Hampden307630
  Palmerston878900
  Waikouaiti6311,958
  Port Chalmers3,012714
  West Harbour2,1822,181
  Dunedin (City)71,27713,921
  St. Kilda6,946462
  Green Island4,4821,789
  Mosgiel4,050965
  Milton1,904315
  Kaitangata1,2861,280
  Balclutha3,3231,258
  Tapanui409129
  Lawrence589615
  Roxburgh794515
  Naseby189112
  Alexandra1,823815
  Cromwell885972
  Arrowtown186457
  Queenstown1,198998
  Gore6,5672,276
  Mataura1,8501,272
  Winton1,287505
  Invercargill (City)29,0946,571
  South Invercargill1,4152,204
  Bluff2,6932,111
  Riverton1,171989
      Totals417,224117,062
      Grand totals1,360,347334,412

Eighteen boroughs recorded decreases between the 1951 and 1956 censuses, though only three show a significant loss of population. Losses in Newmarket (17 per cent) and Petone (5 per cent) record the normal experience of a built-up central area where commercial buildings are replacing dwellings. Wellington City records the second recession in its history, a loss of 2 per cent; the first decrease of population (3 per cent) took place between 1945 and 1951 censuses. The main cause is the limited amount of building land available owing to the situation and terrain of the city. The population is moving into the Hutt Valley and the Tawa-Porirua-Titahi area and outside the centre of the city into the county portion of Wellington Urban Area.

Kawerau Borough records the greatest proportionate increase; it has expanded in five years from a district of 43 people in 1951 to a borough of 2,740, housing the employees in the pulp and paper mills. Other boroughs with a high rate of growth are Taupo (110 per cent), Howick (74 per cent), Papakura (64 per cent), Tawa Flat (63 per cent), Mount Wellington (63 per cent), and Glen Eden (59 per cent). Apart from Taupo, these areas are in effect suburbs of Auckland or Wellington.

Christchurch City, with a gain of 9,213, had the highest numerical increase of all cities and boroughs, and retained its place as the largest city in New Zealand. Auckland City, with an increase of 8,153, had the second highest numerical increase.

Town Districts.—As stated earlier, the population of independent town districts—i.e., those contained in section (a) of the following table—is not included with that of the county in which the town district is located, but the population of dependent town districts—section (b)—is included in that of the respective parent county.

Town DistrictPopulation (including Maoris)Approximate Area, in AcresTown DistrictPopulation (Including Maoris)Approximate Area, in Acres
(a) Town Districts Not Forming Parts of Counties
North Island—South Island—
  Kawakawa758280  Takaka739585
  Hikurangi1,007960  Leeston724391
  Kamo1,013852  Wyndham636680
  Onerahi1,476990  Lumsden5921,264
  Warkworth8831,420  Nightcaps650285
  Leamington1,1961,330  Otautau767954
  Murupara8691,005   
  Ohura575815   
  Manaia718510   
  Waverley859484   
  Manunui8771,251   
  Mangaweka342955   
  Hunterville581791   
  Bulls793677      Totals4,1084,159
  Totals11,94712,320      Grand totals16,05516,479

* Parent county shown in parentheses.

(b) Town Districts Forming Parts of Counties*
North Island—
  Kohukohu (Hokianga)2391,020
  Rawene (Hokianga)463280
  Russell (Bay of Islands)6171,066
  Mercer (Franklin)3261,000
  Te Kauwhata (Waikato)6771,290
  Ohaupo (Waipa)3231,281
  Kihikihi (Waipa)747523
  Te Karaka (Waikohu)392700
  Patutahi (Cook)2541,275
  Kaponga (Eltham)510558
  Normanby (Hawera)478260
      Totals5,0269,253
South Island—
  Havelock (Marlborough)286210
  Southbridge (Ellesmere)447531
  Outram (Taieri)362886
  Edendale (Southland)561696
      Totals1,6562,323
      Grand totals6,68211,576

Of all town districts, Murupara, built like Kawerau to serve the timber-milling industry, records the highest proportionate increase (286 per cent). Two other town districts with high rates of growth. Onerahi (78 per cent) and Kihikihi (66 per cent) serve as dormitory suburbs to adjacent boroughs of Whangarei and Te Awamutu respectively. Three town districts with high increase rates between 1945 and 1951, Tawa Flat, Glen Eden, and Howick, have since been constituted boroughs and these have continued to expand in the last intercensal period. Two town districts, Mangaweka and Leeston, have lost population between 1951 and 1956.

Extra-county Islands and Migratory Population.—In addition to the populations quoted for administrative counties, cities and boroughs, and independent town districts, the New Zealand totals include migratory population and persons located on islands not within the boundaries of any county. The two latter categories comprised a total of 7,355 people at the 1956 census.

Of the islands concerned, Waiheke, with a population of 2,105 at the 1956 census, was the only one of any size.

AGE DISTRIBUTION.—The following table shows the estimated age distribution of the population at 31 December 1955 and of the mean population for the year 1955. The figures are based on the 1951 census data and brought up to date from statistics of births, ages of persons dying, and ages of persons arriving in or departing from New Zealand.

Age, in YearsEstimated Numbers, Excluding MaorisEstimated Numbers, Maoris
MalesFemalesTotalMalesFemalesTotal

NOTE.—The age stated is the age last birthday.

Age Distribution at 31 December 1955
Under 5119,022113,143232,16513,15812,39125,549
5 and under 10110,400106,000216,40010,51010,10020,610
10 and under 1586,00082,300168,3008,3708,06016,430
15 and under 2070,60068,400139,0007,7907,55015,340
20 and under 2564,50061,300125,8006,0105,95011,960
25 and under 3074,50068,100142,6004,9804,9909,970
30 and under 3574,70071,800146,5004,0203,9607,980
35 and under 4067,10068,400135,5003,0303,1706,200
40 and under 4567,80067,400135,2002,9602,8905,850
45 and under 5062,80060,700123,5002,4902,0604,550
50 and under 5554,40052,300106,7001,9001,6203,520
55 and under 6043,80045,70089,5001,3701,1002,470
60 and under 6535,50040,60076,1001,0107901,800
65 and under 7032,30036,60068,9007606301,390
70 and under 7526,80030,80057,600505440945
75 and under 8017,52020,57038,090240210450
80 and over12,05015,46027,510175180355
    Totals, adults (21 and over)621,190627,6901,248,88028,12026,71054,830
    Totals, minors (under 21)398,602381,883780,48541,15839,38180,539
    Grand totals, all ages1,019,7921,009,5732,029,36569,27866,091135,369
Age Distribution of Mean Population, Year 1955
Under 5117,211111,530228,74112,97212,19825,170
5 and under 10108,400104,100212,50010,2309,81020,040
10 and under 1584,70081,000165,7008,3808,06016,440
15 and under 2068,40066,200134,6007,6207,37014,990
20 and under 2564,70061,500126,2005,8705,85011,720
25 and under 3074,50068,200142,7004,9004,8909,790
30 and under 3573,70071,500145,2003,9303,8807,810
35 and under 4066,50068,000134,5002,9903,1306,120
40 and under 4567,50066,900134,4002,9702,8505,820
45 and under 5062,00059,800121,8002,4202,0004,420
50 and under 5553,70051,600105,3001,8801,6103,490
55 and under 6042,90045,20088,1001,3301,0702,400
60 and under 6535,50040,40075,9001,0007901,790
65 and under 7032,40036,60069,0007406301,370
70 and under 7526,70030,40057,100490420910
75 and under 8017,28020,14037,420235200435
80 and over11,79014,92026,710165195360
    Totals, adults (21 and over)616,760623,1401,239,90027,62026,25553,875
    Totals, minors (under 21)391,121374,850765,97140,50238,69879,200
    Grand totals, all ages1,007,881997,9902,005,87168,12264,953133,075

DENSITY OF POPULATION.—The relation of population to area, which is commonly referred to as “density of population,” is a subject of much interest and a source of serious misconceptions. Generally speaking, a dense population must depend upon land-utilization or industrialization. In New Zealand there is a great area of high mountainous country, particularly in the South Island, while there are also large areas of water or of broken, swampy, or hilly country which is either incapable of effective use or which can be used profitably only for pastoral purposes, afforestation, or the like. No exact figures for the whole country are available, but it is known that only a moderate fraction of the total area of New Zealand is potentially arable.

There are no large areas of good land still to be brought into occupation, and most of the land remaining will require special methods or heavier capital expenditure to bring into use. Ultimately many such areas will be developed, and, in addition, new and improved methods and facilities, such as aerial top-dressing, will no doubt increase production from the land, but it seems unlikely that exceptional development may be expected in the near future.

While industrial development has made very marked growth in New Zealand over the years, and extensive further development appears certain, there are factors unfavourable to the growth of industry to a point where dense populations could be supported—not the least of which are weakness in mineral resources, relative smallness of the home market (even with an expanded population), and distance from export markets.

Within New Zealand there are wide variations in density of population. The North Island, with an area of 44,294 square miles, had a population density of 33.80 persons per square mile at the 1956 census date, and the South Island, with an area of 59,442 square miles, had a population density of 11.38 persons per square mile at the same date.

The following table provides comparative density figures on a provincial district basis.

Provincial DistrictArea, in Square MilesPersons Per Square Mile
19111921193619511956
Auckland25,42011.7516.0021.5229.3134.29
Hawke's Bay4,26012.4614.9418.0721.4124.02
Taranaki3,75014.4417.4020.7123.1725.10
Wellington10,87018.8023.4329.1135.9439.48
Marlborough4,2203.904.334.545.426.09
Nelson10,8704.484.395.476.236.52
Westland4,8803.242.923.833.723.79
Canterbury13,94012.5214.3416.8120.0922.06
Otago—
  Otago14,0709.469.7610.7611.3312.00
  Southland11,4605.175.446.356.767.44
      Totals103,74010.2012.2615.1718.7020.96

MAORI POPULATION.—The first official general census of Maoris was taken in 1857–58, and others occurred in regular sequence from 1874 onwards. Owing to inherent difficulties the earlier census records make no pretence towards complete accuracy.

According to census records the Maori population suffered a period of almost unbroken decline from 1858 to 1896. The following causes no doubt contributed to this decline—internecine warfare of the tribes and the heavier casualties which resulted from the introduction of firearms; the susceptibility of the Maori to epidemic and other diseases introduced with the white race; and the mental outlook of the Maori under the new conditions.

During the last fifty years, however, the Maori population has increased continuously, at first steadily and of later years at a fairly rapid rate. In fact, the vitality exhibited by the Maori race in recent years is a most outstanding feature. The rate of natural increase of the Maori population is more than double that of the European.

A statement of Maori population is now given for each census from 1901 to 1956.

YearMaori PopulationIntercensal IncreaseIntercensal IncreaseAverage Annual Increase

* Includes members of Armed Forces overseas at census date.

 NumberPer CentPer Cent
190145,5493,4368.21.6
190650,3094,76010.52.0
191152,7232,4144.81.0
191652,9972740.50.1
192156,9873,9907.51.6
192663,6706,68311.72.2
193682,32618,65629.32.6
194598,74416,41819.91.9
1945*100,04417,71821.52.1
1951115,67616,93217.12.9
1951*115,74015,69615.72.7
1956137,15121,47518.63.5
1956*137,34121,60118.73.5

The average annual percentage increase from 1951 to 1956 was 3.47, which is considerably higher than the corresponding figure for the European population—viz., 2.24 per cent. The natural increase ratios for the year 1955 shown below afford a better illustration.

 EuropeanMaori
Birth rate24.8643.64
Death rate8.959.56
Natural-increase rate15.9134.08

Of the 137,151 Maoris at the 1956 census, 131,894 were in the North Island. Auckland Provincial District contains the bulk of the Maoris, particularly in the Auckland Peninsula and Poverty Bay regions. In the South Island Maoris do not attain any numerical significance. Maoris have always been residents in rural communities and this is still substantially true. A marked change has, however, taken place during and since the war as a result of employment conditions. As late as the 1936 census only 8,249 Maoris (10.02 per cent) dwelt in cities, boroughs, or independent town districts. By the 1956 census the comparative figure was 33,424 (24.37 per cent). The largest concentration is in Auckland Urban Area, where 11,361 Maoris were enumerated.

The records of the 1945 and 1951 censuses permit of a statement of the total numbers wholly or partly of Maori blood. This information is not yet prepared for the 1956 census.

Counted in the Maori population—

 19451951
Full Maori61,44076,918
Maori-Europeans—
  Three-quarter caste18,95615,201
  Half-caste18,34823,183
  Maori-other Polynesian 374
    Totals98,744115,676

Counted in the population other than Maori—

 19451951
Maori-European quarter-caste16,90218,421
Maori-Polynesian263 
Maori-Japanese2016
Maori-Chinese198369
Maori-Indian134220
Maori-Syrian5742
Maori-Lebanese31
Maori-American Indian28 
Maori-Negro1911
Maori-Filipino810
Maori-West Indian1113
Maori-Melanesian1033
    Totals17,65019,166

In 1951 there were recorded in New Zealand some 134,842 persons wholly or partly of Maori origin, compared with 116,394 in 1945.

STATISTICS OF THE 1951 CENSUS.—The tabulation and analysis of the population census taken for the night of 17 April 1951 is complete and all subject volumes (listed below) have been published.

  • Volume I—Increase and Location of Population.

  • Volume II—Ages and Marital Status.

  • Volume III—Religious Professions, etc.

  • Volume IV—Industries, Occupations, and Incomes.

  • Volume V—Birthplaces and Duration of Residence of Overseas-born.

  • Volume VI—Maori Census.

  • Volume VII—Dwellings and Households.

  • Volume VIII—General Report.

  • Appendix A—Census of Poultry.

  • Appendix B—New Zealand Life Tables, 1950–52, and Values of Annuities. Interim Returns of Population and Dwellings.

Certain statistics of the 1951 census will be found on pages 44–54 of the 1954 Year-Book.

STATISTICS OF THE 1956 CENSUS.—The only volume so far published for the 1956 census taken for the night of 17 April 1956 is the Interim Returns of Population and Dwellings. The others will be published as the results become available.

Chapter 4. SECTION 4—VITAL STATISTICS

4 A—VITAL STATISTICS OF THE TOTAL POPULATION

IT is desirable that a complete coverage of the vital statistics of a country as a whole should be available, and the statistical data presented in this subsection cover the entire population of New Zealand. Europeans and Maoris are dealt with separately in later subsections.

For many years the standard of registration of vital events for Maoris was subject to elements of inaccuracy and incompleteness due to several factors. However, with the introduction of the medical and related benefits under the social security legislation, which covers Maori and European alike, certain information was essential for the claiming of benefits, and a gradual improvement in recent years has been in evidence. Since 1 April 1952 all Maori marriages have been celebrated in the same manner and registration effected in the same way as European marriages. As regards births and deaths, however, separate registers for Maoris and Europeans are used, and in the case of Maoris the information required is not as detailed as that for Europeans. It is probable that the standard of registration of Maori vital events is now very little inferior to that of Europeans.

BIRTHS.—Registration of Maori births is somewhat less accurate (although improvement has been manifest in recent years) than those of the European population. In the table following. which shows the numbers and rates of European, Maori, and total births for each of the last eleven years, allowance should be made for the element of inaccuracy and incompleteness affecting a pro portion of the figures, particularly for the earlier years covered.

For instance, owing to the extensive time lag in the receipt by the Registrar-General of a considerable number of registrations, the statistics of Maori births relate to the number of registrations received during the year, whereas the European figures cover actual registrations effected during the year.

YearNumbersRates Per 1,000 of Mean Population
EuropeanMaoriTotalEuropeanMaoriTotal
194641,8715,77647,64725.2656.8127.08
194744,8164,98849,80426.4747.4627.70
194844,1934,95649,14925.5945.9726.79
194943,9884,91748,90524.9844.4826.13
195044,3095,10549,41424.6745.0725.88
195144,6515,23849,88924.3944.9725.62
195246,4695,45951,92824.7745.4126.01
195346,4145.52951,94324.1244.5425.35
195448,4315,70054,13124.6344.3725.84
195549,8695,80755,67624.8643.6426.03
195650,4306,16356,59324.6744.6425.93

The abnormal increase in the number of Maori births shown for the year 1946 is mainly accounted for by the late registration of births which occurred prior to 1946 (see page 110).

The inclusion of Maoris raises the level of the birth rate all through the period covered, but in no case does it reverse the trend of the rate for New Zealand, exclusive of Maoris. In an international comparison for the quinquennium 1951–55 the inclusion of Maoris raises New Zealand's position from twelfth to tenth in a total of twenty-eight countries covered.

NATURAL INCREASE.—The birth and death rates of the population are not subject to violent fluctuation, and consequently the natural-increase rate—i.e., excess of births over deaths—shows, in the period covered by the next table, a steady rise to 1947, and then a regular decline each year until 1952, when a sharp increase was recorded. In 1953 a small decrease was again evident despite the fact that the numerical increase was greater than the previous year. Increases were recorded in 1954 and 1955 but there was a small decrease in 1956. The following table shows the numbers gained by natural increase, together with the rate per 1,000 of mean population, for the last eleven years.

YearNumbersRates Per 1,000 of Mean Population
EuropeanMaoriTotalEuropeanMaoriTotal
194625,7784,14929,92715.5540.811,701
194728,9123,45032,36217.0832.8318.00
194828,3813,48331,86416.4332.3117.37
194927,9763,35131,32715.8930.3116.74
195027,5943,73631,33015.3632.9816.41
195127,1393,91431,05314.8333.6015.94
195229,0563,97633,03215.4933.0716.54
195329,4054,18433,58915.2833.7016.39
195430,7644,49135,25515.6534.9616.83
195531,9164,53536,45115.9134.0817.04
195632,0274,87036,89715.6735.2816.90

In the ten years 1947–56 New Zealand has gained by natural increase of the population a total of 333,160, comprising 293,170 Europeans and 39,990 Maoris.

MARRIAGES.—The following table shows the numbers of European, Maori, and total marriages celebrated during each of the last eleven years.

YearNumbersRates Per 1,000 of Mean Population
EuropeanMaoriTotalEuropeanMaoriTotal

* Not available, see next paragraph.

194620,53556121,09612.395.5211.99
194718,52552219,04710.944.9710.59
194817,19255817,7509.965.189.67
194916,78556917,3549.535.159.27
195016,50459517,0999.195.258.96
195116,35955616,9158.934.778.78
1952**17,061**8.55
1953**17,224**8.41
1954**17,557**8.38
1955**17,795**8.32
1956**17,531**8.03

The fluctuations in the Maori marriage rate, and hence, to a lesser extent, in the total marriage rate, cannot be taken at their face value, as elements of Maori psychology played no small part on occasions in influencing the number of Maori marriages registered, as distinct from the number actually celebrated. Apart from these factors, the differences observed in the movements of the respective rates to 1951 are, of course, considerably affected by variations in the application of social and other legislation tc the Maori race and the European population respectively. As a result of legislative changes it is not possible to distinguish marriages of Maoris from those of Europeans after 1 April 1952.

DEATHS.—The effect of including Maoris is to increase slightly the total death rate for New Zealand, as is seen in the following table.

YearNumbersRates Per 1,000 of Mean Population
EuropeanMaoriTotalEuropeanMaoriTotal
194616,0931,62717,7209.7116.0010.07
194715,9041,53817,4429.3914.639.70
194815,8121,47317,2859.1613.669.42
194916,0121,56617,5789.0914.179.39
195016,7151,36918,0849.3112.099.47
195117,5121,32418,8369.5611.379.67
195217,4131,48318,8969.2812.349.47
195317,0091,34518,3548.8410.848.96
195417,6671.20918,8768.989.419.01
195517,9531,27219,2258.959.568.99
195618,4031,29319,6969.009.379.02

Although the Maori death rate is consistently higher than the European rate, the continuous decline of the former has now brought it to a position of almost equality with the European rate. The net result now is that the inclusion of Maoris does not raise the general death rate much above the European rate. Countries with lower death rates (in 1955) than New Zealand included Israel, 5.8; Netherlands, 7.6; Canada, 8.1; Norway, 8.3; and Union of South Africa (European population only), 8.6.

Total Deaths by Causes.—Although the incidence of different diseases as causes of death varies considerably as between the Maori and European sections of New Zealand's population, the only important disease to show a marked influence on the general death rate by the inclusion of Maoris is tuberculosis. The average death rate for the total population from tuberculosis (all forms) for the four years 1952–55 was 167 per million of mean population, as against 120 for the European death rate. New Zealand has for many years had a comparatively low tuberculosis death rate for the European section of its population, but when Maoris are included the latest triennial international figures available (1947–49) show New Zealand to be sixth out of a total of thirty-one countries. With Maoris excluded, New Zealand's position would be second for the same period.

Total deaths for the years 1952 to 1955, according to the Abbreviated List of the Sixth (1948) Revision of the International Classification of Causes of Death, are contained in the following table. Comparative tables for the European and Maori population separately may be found by reference to Section 4D and Section 4E respectively.

Causes of DeathNumber of DeathsRate Per Million of Mean Population
19521953195419551952195319541955
Tuberculosis of respiratory system336262252256168128120120
Tuberculosis, other forms8595523743462517
Syphilis and its sequelae6669293133341414
Typhoid fever 552 221
Dysentery, all forms54363213
Scarlet fever and streptococcal sore throat22211111
Diphtheria23421221
Whooping-cough18151079753
Meningococcal infections2127272410131311
Acute poliomyelitis57271292913 14
Measles4413181522697
All other diseases classified as infective and parasitic7686679638423245
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissues2,9052,8892,9653,1711,4551,4101,4151,483
Benign and unspecified neoplasms4341433921202118
Diabetes mellitus22625319921611312495101
Anaemias7666878738324241
Vascular lesions affecting central nervous system2,2092,2922,3062,3251,1071,1191,1011,087
Non-meningococcal meningitis4056304220271420
Rheumatic fever223321111116105
Chronic rheumatic heart-disease256259234241128126112113
Arteriosclerotic and degenerative heart-disease4,7984,9984,8654,8992,4044392,3232,291
Other diseases of the heart7045736827603532,280326355
Hypertension with heart-disease653579696663327283332310
Hypertension without mention of heart17015111312485745458
Influenza15241802876203813
Pneumonia600517583628301252278294
Bronchitis413332419460207162200215
Ulcer of stomach and duodenum15016117117675798282
Appendicitis3033292215161410
Intestinal obstruction and hernia11912114610260597048
Gastritis, duodenitis, enteritis, and colitis, except diarrhoea of the newborn15113714415176676971
Cirrhosis of liver3847547219232634
Nephritis and nephrosis2121932201781069410583
Hyperplasia of prostate14511812414473585967
Complications of pregnancy, childbirth, and the puerperium4732343423161616
Congenital malformations295262308290148128147136
Birth injuries, post-natal asphyxia, and atelectasis339317261329170155125154
Infections of the newborn3948703119233314
Other diseases peculiar to early infancy, and immaturity unqualified356322321302178157153141
Senility without mention of psychosis, ill-defined, and unknown causes203134189175102659082
All other diseases1,6401,5691,6701,792822766797838
Motor-vehicle accidents296318332364148155158170
All other accidents638639815653320312389305
Suicide and self-inflicted injury19819817718799978487
Homicide and operations of war21171823108811
      Totals18,89618,35418,87619,2259,4668,9589,0108,990

TOTAL INFANT MORTALITY.—The establishing of the vital statistics of New Zealand on a total basis by the inclusion of Maoris has the greatest influence upon the infant-mortality rate. The infant-mortality rate of the European population of New Zealand was the lowest in the world for a long period, and recently has declined to a particularly low level. The Maori rate, on the other hand, always a high one, has not shown any noticeable improvement until recent years. It is also subject to violent fluctuations owing to the ravages of certain epidemic diseases, which have relatively very little effect on the European rate. The European, Maori, and total infant-mortality figures for the last twenty years are given in the next table.

YearNumbersRates Per 1,000 Live Births
EuropeanMaoriTotalEuropeanMaoriTotal
19378123661,17831.2192.1739.29
19389715661,53735.63153.2649.67
19398984731,37131.14114.9241.61
19409903721,36230.2187.2236.78
19411,0455171,56229.77125.0639.81
19429644241,38828.7197.9236.62
19439513991,35031.3789.8638.85
19441,0124611,47330.12102.2638.65
19451,0364131,44927.9988.9334.79
19461,0934311,52426.1074.6231.99
19471,1223651,48725.0473.1829.86
19489703801,35021.9576.6727.47
19491,0464221,46823.7885.8230.02
19501,0083561,36422.7569.7427.60
19511,0173571,37422.7868.1627.54
19521,0144611,47521.8284.4528.40
19539314041,33520.0673.0725.70
19549683341,30219.9958.6024.05
19551,0023631,36520.0962.5124.52
19569783351,31319.3954.3623.20

The inclusion of Maoris not only places the infant-mortality rate for New Zealand on a considerably higher level, but also replaces the general downward movement by a much more fluctuating trend.

It also has a considerable effect on the position occupied by New Zealand among the countries of the world. In the quinquennium 1951–55 New Zealand's infant-mortality rate (exclusive of Maoris), with an average of 21, was the second lowest of twenty-seven countries for which reliable figures were available, whereas the inclusion of the Maori population relegated it to sixth place, with Sweden clearly in the lead, and the Netherlands in second place.

4 B—EUROPEAN BIRTHS

(NOTE.—The term European, used in the context of this subsection, means the population exclusive of Maoris.)

REGISTRATION.—The law as to registration of European births is embodied in the Births and Deaths Registration Act 1951, a consolidation of the then existing legislation. The provisions generally as to registration are that a birth may be registered within two months without fee. After two months and within six months a birth is registrable only after a statutory declaration of the particulars required to be registered has been made before the Registrar by the parent or some person present at birth, and on payment of the prescribed fee. A birth may be registered after six months only upon the direction of the Registrar-General, who may authorize registration in any case within two years after the date of birth. An information for neglect to register must be laid within two years of date of birth. In cases of neglect or refusal to give the Registrar information in respect of any birth the Registrar-General may at any time within two years after the birth of the child authorize some person to give the Registrar the information required to enable him to register the birth, and to sign as informant the entry in the register, upon which the Registrar shall register the birth.

Notwithstanding the foregoing provisions, power is given by the Act for the Registrar-General to register an unregistered birth which occurred in New Zealand, irrespective of the time that may have elapsed. Satisfactory evidence on oath, and such other proof as the Registrar-General may deem necessary, are required. This provision does not, however, relieve any person from liability to prosecution for failure to register in the proper manner.

Although two months are allowed for the registration of a birth, it is compulsory to notify the birth to the Registrar within a much shorter interval. The occupier of any premises in which a child is born is to give notice to the Registrar according to the best of the knowledge and belief of the occupier of the fact of the birth, the date on which it occurred, the name and address of the mother or father of the child, and of such other particulars as the Registrar-General may require. Any such notice is to be in writing, signed by the occupier and endorsed by some other person, if any, in attendance at the confinement, and is to be delivered or posted to the Registrar within forty-eight hours after the birth if in a borough, or seven days in any other case. Births are to be registered by the Registrar whose office is nearest to the place of birth.

Particulars required to be registered are: date and place of birth; name and sex of child; names, ages, and birthplaces of parents; occupation of father; maiden name of mother; date and place of parents' marriage; and ages and sex of previous issue (distinguishing living and dead) of the marriage. The father of an ex-nuptial child is not required to give information, nor is his name entered in the register unless at the joint request of the mother and himself, or unless he subsequently marries the mother. A child born out of New Zealand but arriving before attaining the age of eighteen months may be registered within six months of arrival. The Registrar-General may authorize registration of such a child who is over eighteen months but under three years of age. Additional information required on notification of birth—but not registration—includes (a) weight of child at birth, and (b) period of gestation of mother. These particulars are required for statistical purposes.

Birth statistics are compiled from the records of the Registrar-General. The births covered by a year's statistics are those registered during the year irrespective of the year of birth. The figures do not include still-births, except in the tables on pages 71–72. A special classification of still-births is given on pages 77–78.

Registration of Maori Births.—Registration of the births of Maoris are effected with the Maori Registrars in the various districts set up for this purpose. Statistics relating to the births of Maoris will be found in Section 4E.

NUMBERS AND RATES.—The general long-term history of the birth rate in New Zealand has been downward. A reference to the diagram on page 70 and to the table on page 68, Showing quinquennial average birth rates, indicates this trend very clearly. After the pioneering days of the nineteenth century, when the population consisted very largely of young immigrants faced with the raising of a family, the birth rate began to decline appreciably. A further migration wave at the turn of the century reversed the trend temporarily, but in 1909 the downward movement was again resumed. With minor fluctuations in the earlier stages and in the years influenced by the First World War this decline continued until 1936. In that year a slight upward movement began, and by 1940 some of the deficit had been made up by the gradual rise. This was accelerated during the Second World War (with minor fluctuations) until successive record high totals (as regards the numbers of births) were established in 1945–47. In 1948 a decline in births was shown with a further recession in 1949. The decreases were not large, and in 1950–52 increases were again in evidence. A very small decrease was shown in 1953. Increases followed in 1954, 1955, and 1956, and in the last year the total exceeded 50,000 for the first time. The numbers and rates of births (children born alive) for each of the last twenty years are given in the following table.

YearNumberRate Per 1,000 of Mean Population
193726,01417.29
193827,24917.93
193928,83318.73
194032,77121.19
194135,10022.81
194233,57421.73
194330,31119.70
194433,59921.59
194537,00723.22
194641,87125.26
194744,81626.47
194844,19325.59
194943,98824.98
195044,30924.67
195144,65124.39
195246,46924.77
195346,41424.12
195448,43124.63
195549,86924.86
195650,43024.67

Much of the movement in the birth rate during recent years has been allied to movement in the marriage rate. As may be expected, the movement in the birth rate reflects the tendency for couples to marry and have children in prosperous years rather than in years of depression.

Comparisons of birth rates over a series of years or between different countries are usually made on the basis of the “crude” rates—i.e., the number of births per 1,000 of the mean population, irrespective of sex or. age.

The “crude” rates do not permit of allowance being made for variations in the proportion of women of the child-bearing ages, and it is advisable and of interest to supplement the table of “crude” rates with a computation of the legitimate birth rate per 1,000 married women of 15 and under 45 years of age, or the total birth rate per 1,000 of all women of these ages. The following table gives both rates for New Zealand for each census from 1901 to 1951 together with the “crude” rate for the year.

YearBirth Rate Per 1,000 Women 15 and Under 45 Years“Crude” Birth Rate
Legitimate*Total

* Per 1,000 married women.

1901246.2111.726.34
1906235.3114.127.08
1911211.7109.525.97
1916193.6106.725.94
1921181.699.023.38
1926166.990.921.06
1936136.672.216.64
1945166.599.823.22
1951172.8116.924.39

The legitimate rate per 1,000 married women between the ages of 15 and 45 fell steadily at each census date from 1901 to 1936, the figure registered in the latter year being equal to a decline of 44 per cent. Considerable improvement was, however, effected in 1945, with a further improvement in 1951, but the latter rate shows a fall of 42 per cent on the 1901 figure. The rate on the basis of all women between the ages of 15 and 45 did not exhibit such a large fall, the 1936 figure being 35 per cent lower, but again substantial improvement was shown in 1945 and 1951, the latter rate being equivalent to an increase of 5 per cent. The proportion of married women in the child-bearing ages is now much higher than in former years; in fact the percentage in 1901 was 43.3 as compared with 64.8 in 1951.

The “crude” birth rates have fluctuated more so than the refined rates, but the decline in 50 years has not been great, the 1951 figure being equal to a fall of 7 per cent on the 1901 rates Figures for 1956 were not available at the time of writing.

A study of the figures for successive censuses reveals considerable changes in the age constitution of married women within the child-bearing ages. As the birth rate varies with age, the change in age constitution over the period is a factor which should be taken into account.

NATURAL INCREASE.—The long-term decline of the birth rate in New Zealand has been accompanied until recent years by a decrease in the death rate. Nevertheless, the nominal rate of natural increase of population has fallen from 29.32 per 1,000 of mean population in 1880 to 15.67 in 1956. Acceptance of this figure without consideration of the effect of the changing age constitution will give an erroneous view of the present margin of increase and of the probable trend of population growth in the future.

The average annual rate of natural increase for the quinquennium 1951–55 was 15.43, compared with an annual average rate of 16.06 for the period 1946–50.

YearNumbersRate Per 1,000 Mean Population
BirthsDeathsNatural IncreaseBirthsDeathsNatural Increase
194537,00716,05120,95623.2210.0713.15
194641,87116,09325,77825.269.7115.55
194744,81615,90428,91226.479.3917.08
194844,19315,81228,38125.599.1616.43
194943,98816,01227,97624.989.0915.89
195044,30916,71527,59424.679.3115.36
195144,65117,51227,13924.399.5614.83
195246,46917,41329,05624.779.2815.49
195346,41417,00929,40524.128.8415.28
195448,43117,66730,76424.638.9815.65
195549,86917,95331,91624.868.9515.91
195650,43018,40332,02724.679.0015.67

The natural increase rate provides a useful guide to population increase and a further method is that of the net reproduction index, which is based on female children born and probably surviving. Details of gross and net reproduction rates for recent years will be found in Section 3 of this issue.

The movements that have taken place since 1880 are well illustrated in the accompanying diagram, which shows the rates at annual intervals.

COMPARISON WITH OTHER COUNTRIES.—An international comparison of birth and natural increase rates is made in the following table. New Zealand's position is higher on the basis of natural increase than it is on that of the birth rate. The rates, which are the average of the five years 1951–55, are taken from the Monthly Bulletin of Statistics issued by the United Nations.

CountryRates Per 1,000 of Population
BirthsNatural Increase
Costa Rica52.140.8
Mexico45.230.3
Ceylon38.727.3
Puerto Rico35.727.3
Chile34.120.8
Israel29.823.5
Canada28.119.6
Yugoslavia28.116.0
India27.113.3
Union of South Africa25.717.0
United States of America24.715.2
New Zealand24.615.5
Portugal23.812.3
Australia22.913.7
Finland22.112.6
Japan22.013.2
Netherlands21.914.4
Republic of Ireland21.38.8
Spain20.410.5
France1906.5
Norway18.610.2
Italy17.98.2
Denmark17.68.7
Switzerland17.17.0
Germany (Western)15.75.1
United Kingdom15.74.0
Sweden15.25.6
Austria1502.8

SEXES OF CHILDREN BORN.—With the exception of one year (1860), there has always been a preponderance of males in the number of children born in New Zealand. The proportions are usually shown by stating the number of births of male children to every 1,000 female births. This number has been as high as 1,113 (in 1859), and as low as 991 (in 1860), but little significance can be attached to any figures prior to 1870, on account of the comparatively small number of births. It is a popular idea that the proportion of male births tends to increase considerably in war years, but the experience in this country does little to bear out this theory, the average over the six years 1940–45 being 1,057, as against that of 1,050 for the preceding ten years. Figures taken out some years ago prove that the masculinity rate for first births is distinctly higher than for subsequent births. The extreme range since 1870 has been from 1,016 male per 1,000 female births in 1878 to 1,081 in 1923. Rates for the last five years are given below.

YearNumber of Births ofMale Births Per 1,000 Female Births
MalesFemales
195123,06821,5831,069
195223,81422,6551,051
195323,82222,5921,054
195424,97323,4581,065
195525,66424,2051,060

MULTIPLE BIRTHS.—The number of cases of multiple births and the proportion per 1,000 of the total (living births only) during the last five years are shown in the following table.

YearTotal BirthsTotal CasesCases of TwinsCases of TripletsMultiple Cases Per 1,000 of Total Cases

* Includes one case where triplets would have been recorded had not one child been still-born.

† Includes one case of quadruplets.

‡ Includes three cases where triplets would have been recorded had not one child been still-born.

195144,65144,125510*811.74
195246,46945,893570*312.49
195346,41445,840563*512.39
195448,43147,818603512.71
195549,86949,254605512.38

Counting only cases where both children were born alive, there were 605 cases of twin births registered in 1955. There were also five cases of triplets.

The total number of confinements resulting in living births was 49,254, and on the average one mother in every 81 gave birth to twins (or triplets).

When still-births are taken into account, the total number of confinements for the year 1955 is increased to 49,995, and the number of cases of multiple births to 664. On this basis the proportion of mothers giving birth to twins or triplets is increased to one in 74,

The incidence of multiple births has not varied greatly in recent years, as may be seen from the following summary.

YearCases of TwinsCases of TripletsTotal Multiple CasesRate Per 1,000 Confinements
Both Born AliveOne Born Alive, One Still-bornBoth Still-bornTotalAll Born AliveOne Born Alive, Two Still-bornTwo Born Alive One Still-bornAll Still-bornTotal

* Includes one case of quadruplets.

195150940105598 1 956812.7
19525694786243 1 462813.7
19535624386135* 1 661913.3
195460033136465 31965513.7
195560546765851  666413.3
  Average of five years5694296205 1 762713.3

The proportion of multiple births has been consistently high during recent years, while the rate of 14.2 experienced in 1944 was a record figure. The number of cases of live triplets recorded in 1951 was exceptional.

The likelihood of still-births occurring is much greater in cases of multiple births than in single cases. This is exemplified in the following table. The figures in respect of multiple cases include all cases where one or more of the children were still-born.

YearStill-birth Cases Per 100 of Total Cases (Including Still-births)
Single CasesMultiple Cases
19511.688.98
19521.708.92
19531.808.40
19541.667.63
19551.498.13
    Average of five years1.678.41

During the five years 1951–55 there were 2,845 cases of live twin births (including ex-nuptial), and of these in 911 instances, or 32.0 per cent, both children were males; in 894, or 31.4 per cent, both were females; and in the remaining 1,040, or 366 per cent, the children were of opposite sexes.

The five cases of triplets in 1955 comprised one of three males, three of three females, and one of two males and one female.

AGES OF PARENTS.—Information as to the relative ages of parents of legitimate living children whose births were registered in 1955 is shown in the following tables.

Age of Mother, in YearsAge of Father, in Years
Under 2121 and Under 2525 and Under 3030 and Under 3535 and Under 4040 and Under 4545 and Under 5050 and Under 5555 and Under 6565 and OverTotal Cases

* Including 44 legitimate cases where twins would have been registered had not one child been still-born, and one case where two of triplets were still-born.

† Including 5 cases of triplets.

Single Births
Under 213561,6481,001152244311 3,190
21 and under 251173,1736,1181,619267762273 11,402
25 and under 30136176,9955,6121,579428983015415,391
30 and under 354551,0544,4463,0191,0703187436510,081
35 and under 40 61066151,9041,5095191435394,864
40 and under 45 26472415743651075361,401
45 and over  11593431164101
    Totals4905,50115,28112,4927,0393,6701,35939317728*46,430
Multiple Births
Under 21 962      17
21 and under 25 3750252  1  115
25 and under 30 9837619412  194
30 and under 35 315714319512 159
35 and under 40  11829271031 89
40 and under 45   12431  11
45 and over           
    Totals 5815519395541983 585
    Grand totals4905,55915,43612,6857,1343,7241,3784011802847,015

PREVIOUS ISSUE OF PARENTS.—Information as to the previous issue of the existing marriage, required in connection with the registration of births in New Zealand is useful not only for record purposes, but also as providing valuable data for statistical purposes. Tables are given in the annual Report on Vital Statistics containing detailed information as to number of previous issue in conjunction with (1) age of mother and (2) duration of marriage. The table under the first heading for the year 1955 is here summarized.

Age of Mother, in YearsNumber of Previous IssueTotal Legitimate Cases
01234 6 and Under 1010 and Under 1515 and Over

* This number represents 46,430 single cases and 585 multiple cases.

Under 212,41566711312     3,207
21 and under 255,7673,7601,444420113121  11,517
25 and under 303,8285,2413,8331,7226192311101 15,585
30 and under 351,3822,1622,9621,9199834343908 10,240
35 and under 405667301,0851,0306823874264614,953
40 and under 451601632292332231472193621,412
45 and over1291414117268 101
    Totals14,13012,7329,6805,3502,6311,2181,17299347,015*

In computing previous issue, multiple births have been given their full significance, the numbers at the head of the columns relating to children born alive. In the following table this procedure has been followed not only for the previous issue, but also for children covered by the 1955 registrations, who are also taken into account in the computation of the averages.

Age of Mother, in YearsTotal MothersTotal IssueAverage Issue
Under-213,2074,1531.18
21–2411,51720,0601.71
25–2915,58538,2052.47
30–3410,24033,0033.25
35–394,95319,1273.92
40–441,4126,3604.62
45 and over1015294.89
    Totals47,015121,4372.58

It should be stressed that the averages are no more than they purport to be—viz., the average number of children (including those registered in 1955) born up to the present time to those mothers of legitimate children whose births were registered during the year. They do not purport to represent, nor do they represent, the average issue of all women of the ages shown. Furthermore, they include issue born to the existing marriages only. The averages for recent years were as follows: 1951, 246; 1952, 2.49; 1953, 2.51; and 1954, 2.54. In 1915, the earliest year for which reliable comparative figures are available, the average issue was 3.11. This fall in the average issue of women giving birth to children is some indication of the tendency towards smaller families. The 1943 average, for the first time since these figures were compiled, reversed the trend, and a further increase was recorded in 1944, but with the increase in the proportion of first births in the three following years the average declined. A slight improvement has been noted for each year since 1948, this being accounted for by decreases in the proportion of first births.

OCCUPATIONS OF FATHERS AND AVERAGE NUMBER OF CHILDREN.—Page 70 of the 1956 Year-Book gives details of average issue with the occupations of fathers who had children born to them during the years 1953 with comparative figures for 1938.

FIRST BIRTHS.—Of a total of 264,651 confinements resulting in legitimate births during the six years 1950–1955, the issue of no fewer than 82,592, or 31 per cent, were first-born children. In 34,258, or 41 per cent, of these cases the birth occurred within twelve months, and in 60,521, or 73 per cent, within two years after the marriage of the parents. In the remaining 27 per cent of cases where there was any issue to the marriage two years or more had elapsed before the birth of the first child.

Statistics of first births over the last six years indicate that the proportion occurring within one year after marriage is gradually increasing, the rate rising from 39.76 per cent in 1950 to 43.57 in 1955. There has been little fluctuation during the same period in the proportion of first births occurring within two years after marriage. The steady decline in the marriage rate in recent years has been accompanied by a marked downward movement in the actual proportion of first births to total births.

YearTotal Legitimate CasesTotal Legitimate First CasesProportion of First Cases to Total CasesFirst Cases Within One Year After MarriageFirst Cases Within Two Years After Marriage
NumberProportion to Total First CasesNumberProportion to Total First Cases
 Per Cent Per Cent Per Cent
195042,00613,62932.455,41939.769,96473.12
195142,21013,44731.865,42440.349,83073.10
195243,81313,72331.325,54740.429,88172.00
195343,86413,59731.005,71442.029,98873.45
195445,74314,06630.755,99842.6410,29673.20
195547,01514,13030.016,15643.5710,56274.75
Totals for six years264,65182,59231.2134,25841.4860,52173.28

The period of time elapsing before the birth of the first child has varied considerably during recent years mainly as a result of war and post-war influences. The following table compares the 1955 figures with those for earlier years, and illustrates the movement in the duration-of-marriage factor in first births.

Duration of Marriage, in YearsProportion Per Cent of Total First Births
19241934194419541955
Under 1 year50.0646.2538.4742.6443.57
1 and under 2 years26.6426.7926.3030.5631.18
2 and under 3 years10.4310.2411.2811.5610.72
3 and under 4 years5.516.167.885.955.61
4 and under 5 years3.033.967.183.303.09
5 and under 10 years3.365.497.365.054.87
10 years and over0.971.111.530.940.96
      Totals100.00100.00100.00100.00100.00

For the years covered by the foregoing table the average duration of marriage before the birth of the first child was—1924, 1.76 years; 1934, 1.85 years; 1944, 2.22 years; 1954, 1.87 years; and 1955, 1.81 years.

An item of interest extracted from the birth statistics is a table of first births occurring to mothers in different age groups, expressed as a proportion per cent of the total first births. A comparison has also been computed on this basis for the years, 1924, 1934, 1944, 1954, and 1955.

FIRST BIRTHS, BY AGEOF MOTHER

Age of Mother, in YearsFirst Births, Proportion Per Cent at Each Age Group to Total First Births
19241934194419541955
Under 207.558.907.339.089.91
20 and under 2538.1640.3941.7947.7148.00
25 and under 3032.5932.7929.5427.7927.09
30 and under 3514.681,31014.6110.399.78
35 and under 405.333.795.363.924.01
40 and under 451.590.991.341.021.12
45 and over0.100.040.030.090.09
      Totals100.00100.00100.00100.00100.00

The figures of average ages of mothers at the birth of their first child are as follows for the above years: 1924, 26.39; 1934, 25.90; 1944, 25.18; 1954, 25.32; and 1955, 25.20.

EX-NUPTIAL BIRTHS.—The numbers of ex-nuptial births registered during each of the years 1945–55, with the percentages they bear to total births registered, were as follows.

YearNumberPercentage of Total Births
19451,8244.93
19461,8244.36
19471,7273.85
19481,6863.82
19491,6713.80
19501,7683.99
19511,9354.33
19522,1044.53
19531,9974.30
19542,1004.34
19552,2644.54

The long-term trend in the rate of ex-nuptial births is indicated by the movement in the proportion of ex-nuptial births per 1,000 unmarried women—i.e., spinsters, widows, and divorced women—at the reproductive ages. The figures for each census year from 1911 to 1951 are as follows.

Census YearUnmarried Women 15 and Under 45 Years of AgeEx-nuptial BirthsEx-nuptial Birth Rate Per 1.000 Unmarried Women
1911120,7781,0788.93
1916125,4611,1599.24
1921136,5391,2589.21
1926148,5511,4739.92
1936167,7811,1266.71
1945156,3261,82411.67
1951130,3431,93514.85

Included in the total of 2,264 ex-nuptial births in 1955 were twenty-five cases of twins, the number of confinements being thus 2,239. From the following table it will be seen that of the 2,239 mothers 695, or 31 per cent, were under twenty-one years of age.

AgeCases
121
132
146
1522
1660
17102
18145
19172
20185
21172
22144
23140
24115
25–29470
30–34294
35–39148
40–4457
45 and over4
      Total2,239

The Births and Deaths Registration Amendment Act 1930 directed the omission of the word “illegitimate” from the register when the birth of an ex-nuptial child is registered. The word “illegitimate” appearing in any entry made prior to the passing of the Act is deemed to be expunged and deleted, and must also be omitted from any certified copy of an entry.

The Legitimation Act.—Important changes were made by the Legitimation Act of 1939, which repealed previous legislation on the subject. This Act stipulates that every ex-nuptial person whose parents have intermarried, whether before or after the passing of the Act, shall be deemed to have been legitimated from birth by reason of such marriage. The Act requires the parents or surviving parent of any person legitimated under the Act to register with the Registrar-General the particulars of the birth of that person, showing that person as the lawful issue of the parents. Application for registration was required to be made within six months after the date of the passing of the Act in cases where the marriage took place prior to that date. In cases where the marriage has taken place subsequent to the passing of the Act, application for registration must be made within three months after the date of the marriage.

Where the Registrar-General has reason to believe that any person has been legitimated under the terms of the Act, and no application for registration has been made within the prescribed time, he may require the responsible parents or parent to make an application within a specified period of not less than seven days after receiving notice to do so. Any failure to comply with the notice requiring application for registration within the time specified renders the person or persons responsible liable on summary conviction to a fine of £5. If no application for registration is made within the appropriate time specified in the Act or in the notice received from the Registrar-General, application for registration of the particulars of the birth of any legitimated person may be made by that person, or by one of his parents, or by any other person.

The number of legitimations of Europeans registered in each of the last five years, and the total since the Act of 1894 came into force, are shown in the following table.

YearNumber of Children Legitimated
Previously RegisteredNot Previously RegisteredTotal
1951394 394
1952415 415
1953449 449
1954463 463
1955463 463
    Totals from 1894 to 195514,1013,29417,395

ADOPTIONS.—The Adoption Act 1955 consolidated and amended the provisions regarding the adoption of children formerly contained in Part HI of the Infants Act 1908 and Part IX of the Maori Affairs Act 1953. The Births and Deaths Registration Act contains provision for the registration of adopted children. The Registrar of the Court by which any adoption order is made is required to furnish to the Registrar-General particulars of the order, including the full name and place of birth of the child, as well as the full names and addresses of both the natural and the adopting parents. An entry is made in the prescribed form in the register of births, particulars of the adopting parents being given in lieu of those of the natural parents. If the child's birth has previously been registered in New Zealand a note of the adoption order is made on the original entry. An amendment to the Infants Act in 1939 extended the age at which a child might be legally adopted from under fifteen years to under twenty-one years.

The adoption of a Maori child is required to be registered in the same manner as that of a European child.

The following table shows the number of adoptions (exclusive of Maori children) which have been registered during the last five years.

YearNumber
MalesFemalesTotal
19516967091,405
19526907401,430
19537097361,445
19546746731,347
19557447111,455

Of the 1,455 adoptions registered in 1955, 878 were children under the age of one year, 251 were between one and five years, 153 were between five and ten years, and 173 were aged ten years or over. In addition, 170 Maori children (92 males and 78 females) were adopted in 1955.

Statistics of adoptions registered have been available in New Zealand since 1919, and these indicate that the numbers are considerably influenced by the economic condition of the country, the lowest total, 329, being recorded in 1931. The highest total prior to 1940 occurred in 1921, when 584 adoptions were registered, this, no doubt, being the result of influences operating after the First World War.

STILL-BIRTHS.—The registration of still-births was made compulsory in New Zealand as from 1 March 1913. Although it is necessary to effect a birth-registration entry for a still-born child, no entry is made in the register of deaths. Section 15 of the Statutes Amendment Act 1946, amending the Births and Deaths Registration Act 1924, stipulated, however, that a medical practitioner or a midwife in attendance at a confinement where a still-birth occurs must furnish a certificate stating to the best of his or her knowledge and belief the cause of the still-birth. Particulars of causes of still-births will be found in Section 4D relating to deaths. A still-born child is defined as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue.” Still-births are not included either as births or as deaths in the various numbers and rates shown in this subsection and in that relating to deaths. The rate of 1.57 per 100 total births in 1955 is the lowest rate recorded since the registration of still-births was made compulsory in 1913.

The registrations of European still-births during each of the years 1951–55 were as follows.

YearMalesFemalesTotalMale Stillbirths Per 1,000 Female Still-birthsPercentage of Still-births to—
Living BirthsAll Births
19514493558041,2651.801.77
19524424048461,0941.821.79
19534814068871,1851.911.88
19544783948721,2131.801.77
19554303667961,1751.601.57

Masculinity is in general much higher among still-births than among living births, the rate for still-births in 1955 being 1,175 males per 1,000 females as compared with 1,060 for living births.

The percentage of ex-nuptials among still-born infants was in 1955, 5.33, and among infants born alive, 1.91.

Of the living legitimate births registered in 1955, 30 per cent were first births, while of legitimate still-births 39 per cent were first births. Statistics over many years indicate that there is a considerably greater probability of still-births occurring to mothers having their first confinement than to those having subsequent confinements. In addition to the 796 European still-births in 1955, there were 95 Maori still-births registered, comprising 56 males and 39 females.

FOETAL DEATHS.—Section 20 of the Births and Deaths Registration Act 1951 stipulates that in the case of a foetal death where the child has issued from its mother after the twentieth week, and up to and including the twenty-eighth week of pregnancy, a medical practitioner or a midwife who was in attendance at the confinement shall sign and supply a certificate stating to the best of his or her knowledge and belief the cause of the foetal death, and such other particulars as may be required by the Registrar-General. This requirement came into force as from 1 April 1952. A foetal death is not required to be registered as in the case of a still-born child.

4 C—TOTAL MARRIAGES

MARRIAGE may be celebrated in New Zealand either by a person whose name is on the list of officiating ministers under the Marriage Act, or before a duly appointed Registrar or Deputy Registrar of Marriages. A licence must be obtained from a Registrar of Marriages before a marriage by an officiating minister can be celebrated. Marriage by an officiating minister may be celebrated at any time between 6 o'clock in the morning and 8 o'clock in the evening. Marriage before a Registrar can be celebrated at any time during the hours the office of the Registrar is open for the transaction of public business.

Notice of intended marriage must be given to a Registrar of Marriages by one of the parties to the proposed marriage. In the case of a person under twenty-one years of age, not being a widow or widower, the consent of parents or guardian is necessary. Consent of the Court may also be given in cases of refusal by any person whose consent is required.

The system of notice and licence has operated in New Zealand since 1855. Officiating ministers and Registrars are required to send to the Registrar-General returns of all marriages celebrated, and as the returns come in they are checked off with the entries in the Registrars' lists of notices received. In case of the non-arrival of a marriage return corresponding to any entry in the list of notices, inquiries are made with a view to obtaining the return if the marriage has been solemnized.

Marriage is forbidden between persons within certain degrees of relationship, any such marriage being declared void. The prohibition applies whether the relationship is by the whole blood or by the half-blood, and whether the relationship is nuptial or ex-nuptial. The present law on this matter is contained in the Marriage Act 1955.

Section 34 of this Act provides that proxy marriages may be authorized by a Magistrate in New Zealand of any person who is resident in New Zealand to any person who is outside New Zealand if the Magistrate is satisfied that the person who is outside the country is unable to come to New Zealand by reason of the existence of a state of war or armed conflict.

Any New Zealand citizen who intends to be married in a country other than New Zealand according to the law of that country, and who desires to obtain a certificate for the purpose of complying with the law of that country, may give notice to the Registrar-General who, upon receiving the notice, shall make such searches and inquiries and give such notices as may be prescribed under the Act. If no caveat is entered within fourteen days of the receipt by the Registrar-General, a certificate may be issued, after proper notices have been given that no lawful impediment to the marriage has been shown to the Registrar-General to exist.

Any New Zealand representative who has attended the marriage of a New Zealand citizen in a country other than New Zealand, and is satisfied that the marriage has been solemnized in accordance with the formalities of the law of that other country, may give a certificate and forward a duplicate copy to the Registrar-General, who shall bind the duplicate in a special register kept by him for the purpose.

Since 1933 the minimum age for marriage has been sixteen years of age. No marriage shall be deemed to have been unduly solemnized, however, by reason only of an infringement of the minimum age.

The Maori Purposes Act 1951 stipulates that after 1 April 1952 every marriage to which a Maori is a party shall be celebrated in the same manner, and its validity shall be determined by the same law, as if each of the parties was a European.

As a result of this legislative change, marriage statistics for the year 1952 are inclusive of Maoris and Maori marriage figures as a separate feature have lapsed. Figures quoted in this subsection for years prior to 1952 are all exclusive of Maoris.

Particulars regarding divorce will be found at the close of this subsection.

NUMBERS AND RATES.—The movement of the marriage rate over a lengthy period of time may be observed from the statistical summary appearing towards the end of this Year-Book. The numbers and rates of marriages during each of the last twenty years are here given.

YearNumberRate Per 1,000 of Population

* Inclusive of Maoris.

193714,3649.55
193815,32810.09
193917,11511.12
194017,44811.28
194113,3138.65
194212,2197.91
194311,5797.53
194413,1258.43
194516,16010.14
194620,53512.39
194718,52510.94
194817,1929.96
194916,7859.53
195016,5049.19
195116,3598.93
1952*17,0618.55
1953*17,2248.41
1954*17,5578.38
1955*17,7958.32
1956*17,5318.03

Both the marriage rate and the number of marriages in 1946 were the highest on record. The main reason for this was the return from overseas of many thousands of men in the most prolific marriage age groups. An appreciable decline, however, in both the number of marriages and in the marriage rate took place in 1947 and 1948 and continued until 1951. Separate figures for European marriages are not available after 1951.

Comparison with Other Countries.—Marriage rates for certain countries for 1955 are given below (these particulars have been taken from the Monthly Bulletin of Statistics, issued by the Statistical Office of the United Nations).

CountryRate Per 1,000 Mean Population
United States of America9.3
Yugoslavia9.3
Chile8.7
Israel8.7
Netherlands8.3
New Zealand8.3
Portugal8.3
Puerto Rico8.3
Canada8.1
Spain8.1
Austria8.1
Switzerland8.0
United Kingdom8.0
Australia7.8
Denmark7.5
Norway7.5
Italy7.4
France7.2
Sweden7.1
Mexico6.8
Ceylon6.1
Republic of Ireland5.5

MARITAL STATUS.—The total number of persons married during the year 1955 was 35,590 of whom 31,677 were single, 1,551 widowed, and 2,362 divorced. The figures for the five years 1951 to 1955, showing the sexes separately, are given in the table following.

YearSingleWidowedDivorcedTotal Persons Married
BridegroomBrideBridegroomBrideBridegroomBride

* Inclusive of Maoris.

195114,24414,3718547311,2611,25732,718
1952*14,92714,9409118391,2231,28234,122
1953*15,17315,2608387551,2131,20934,448
1954*15,47015,5398547561,2331,26235,114
1955*15,85815,8198037481,1341,22835,590

The position is more easily seen by studying the percentages given in the next table.

YearBridegroomsBrides
SingleWidowedDivorcedSingleWidowedDivorced

* Inclusive of Maoris.

195187.075.227.7187.854.477.68
1952*87.495.347.1787.574.927.51
1953*88.094.877.0488.604.387.02
1954*88.124.867.0288.504.317.19
1955*89.124.516.3788.904.206.90

Reference to the divorce statistics at the end of this subsection will show that the number of divorces since and including the later war years has been at a high level, although there has been a steady decline since 1946. The number of decrees absolute in the period 1951–55 was 7,814, as compared with 4,907 in the five years 1936–40, an increase of 59 per cent. The large number of divorced people remarrying is therefore not surprising. The number of widowed persons remarrying, which was 39 per 1,000 in 1940, rose to 44 per 1,000 in 1955.

The relative marital status of bridegrooms and brides for each of the five years 1951 to 1955 is next given.

YearMarriages Between Bachelors andMarriages Between Widowers andMarriages Between Divorced Men and
SpinstersWidowsDivorced WomenSpinstersWidowsDivorced WomenSpinstersWidowsDivorced Women

* Inclusive of Maoris.

195113,260288696364306184747137377
1952*13,875316736378367166687156380
1953*14,211290672329339170720126367
1954*14,469284717354330170716142375
1955*14,892292674305321177622135377

The relative proportions of divorced men and divorced women remarrying during the last three years has changed but little compared with ten years earlier. During the three years 1938–40 the number of male divorcees remarrying was 2,066, as compared with 2,169 females, which gives a rate of 95 males for every 100 females. In 1953–55 the respective numbers were 3,580 males and 3,699 females, and the corresponding rate 97 males for every 100 females. In the case of widowed persons remarrying, however, there has been a marked change in the figures. In the three-year period 1938–40, 2,420 widowers remarried but only 1,619 widows, whereas in 1953–55 there were 2,495 widowers and 2,259 widows who remarried, the number of widowers per 100 widows being 149 in the former period and 110 in the latter period.

AGES OF PERSONS MARRIED.—Of the 35,590 persons married in 1955, 6,134 or 17 per cent, were under twenty-one years of age; 13,174, or 37 per cent, were returned as twenty-one and under twenty-five; 8,344, or 23 per cent, as twenty-five and under thirty; 4,704, or 13 per cent, as thirty and under forty; and 3,234, or 10 per cent, as forty years of age or over. The following table relates to the year 1955.

Age of Bridegroom, in YearsAge of Bride, in YearsTotal Bridegrooms
Under 2121 and Under 2525 and Under 3030 and Under 3535 and Under 4040 and Under 4545 and Over
Under 217682151923  1,007
21 and under 252,8073,0684645713316,413
25 and under 301,3002,7191,263301631755,668
30 and under 3519857659439611850121,944
35 and under 40421221982222036029876
40 and under 451143941321279957563
45 and over118441001472237911,324
    Total brides5,1276,7612,6761,21067445289517,795

There have been some considerable changes in the proportions of persons marrying at the various age periods. To illustrate the extent to which these figures have varied a table is given showing since 1920 the proportions of men and women married at each age group to every 100 marriages.

PeriodUnder 2121 and Under 2525 and Under 3030 and Under 3535 and Under 4040 and Under 4545 and OverTotals

* Inclusive of Maoris.

Males
1920–243.1324.6632.2117.7310.245.436.60100.00
1925–293.4928.0434.4914.337.704.487.47100.00
1930–343.4627.2837.0215.146.103.617.39100.00
1935–392.6825.9138.2616.466.753.226.72100.00
1950–54*5.0535.4231.2110.955.863.567.95100.00
1955*5.6636.0431.8610.924.923.167.44100.00
Females
1920–2415.9935.4726.2110.665.532.983.16100.00
1925–2918.6137.8823.678.934.652.823.44100.00
1930–3418.6738.5124.798.223.852.403.56100.00
1935–3917.1038.2626.308.863.912.023.55100.00
1950–54*25.7838.6516.856.964.122.595.05100.00
1955*28.8137.9915.046.803.792.545.03100.00

A perusal of the above table reveals the fact that greater proportions of marriages are now being celebrated at the younger and, to a lesser extent, at the older age groups. This became very marked in the 1951–55 period, and was mainly due to the fact that the outbreak of war induced a number of earlier marriages which resulted in fewer unmarried people entering the middle age groups.

For many years the average age (arithmetic mean) at marriage for both males and females, more particularly the latter, showed a tendency to increase. However, in recent years there has been a tendency towards a slight fall. The figures for each of the years 1946–55 are as follows.

YearBridegrooms (Years)Brides (Years)

* Inclusive of Maoris.

194629.7326.18
194729.7126.11
194829.9626.32
194929.8926.30
195029.6726.14
195129.4225.96
1952*29.5226.19
1953*29.3125.90
1954*29.2025.85
1955*28.9925.67

The average ages of bachelors and spinsters at marriage are considerably lower than those shown in the preceding table, which covers all parties and is naturally affected by the inclusion of remarriages of widowed and divorced persons. The average ages of grooms and brides for each of the last five years according to marital status were as shown below. Years

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows

* Inclusive of Maoris.

195126.9540.7753.9323.9736.1947.05
1952*26.9841.0055.6024.0835.9848.83
1953*26.9640.7755.6123.9736.5147.83
1954*26.8041.1455.2923.8936.7747.83
1955*26.7441.6755.4623.7637.0147.42

The foregoing figures give the average ages at marriage, but these do not correspond with the modal or popular age, if the age at which the most marriages are celebrated may be so termed. The modal age for brides (21) has remained unchanged for very many years, but in the case of bridegrooms the most popular age has varied, and for recent years it has been 23 or 24.

Marriages of Minors.—Of every 1,000 men married in 1955, 57 were under twenty-one years of age, while 288 in every 1,000 brides were under twenty-one.

In 768 marriages in 1955 both parties were given as under twenty-one years of age, in 4,353 marriages the bride was returned as a minor and the bridegroom as an adult, and in 233 marriages the bridegroom was a minor and the bride an adult.

The proportion of minors among persons marrying has been increasing over a fairly long period, and in the table below figures are given for the last five years. In the latest year (1955) two brides in every seven were under twenty-one years of age, the proportion for grooms being one in eighteen.

YearAge, in YearsTotals
1617181920NumberRate Per 100 Marriages

* Inclusive of Maoris.

Bridegrooms
1951313632224577584.63
1952*2261032544898745.18
1953*6291042174998554.96
1954*3311112785079305.30
1955*736125267572.1,0075.66
Brides
19511153167271,2361,6464,04024.70
1952*1583848841,3001,5624,28825.13
1953*1624438331,3711,6544,46325.91
1954*2064709021,4451,7724,79527.31
1955*1965261,0151,5341,8565,12728.81

MARRIAGES BY MINISTERS OF VARIOUS CHURCHES.—Of the 17,795 marriages registered in 1955, Church of England clergymen officiated at 4,560, Presbyterians at 4,676, Roman Catholics at 2,679 and Methodists at 1,437, while 3,246 marriages were celebrated before Registrars.

The following table shows the proportions of marriages by ministers of the largest churches and before Registrars in each of the years 1949–55.

ChurchPercentage of Marriages
1949195019511952*1953*1954*1955*

* Inclusive of Maoris.

Presbyterian28.0728.3127.9125.9527.0426.2326.27
Church of England25.8025.9525.8325.4025.0426.2125.63
Roman Catholic12.1711.9312.6713.2314.5214.4015.05
Methodist9.199.328.538.528.167.968.08
Others5.785.655.517.066.396.566.73
Before Registrars18.9918.8419.5519.8418.8518.6418.24
    Totals100.00100.00100.00100.00100.00100.00100.00

The foregoing figures must not be taken as an exact indication of the religious professions of the parties married, as it does not necessarily follow that both (or even one) of the parties are adherents of the Church whose officiating minister performed the ceremony, and persons married before Registrars may belong, in greater or lesser proportion, to any or none of the churches. Of the total population (inclusive of Maoris) at the general census of 1951, 37.8 per cent were recorded as adherents of the Church of England, 24.3 percent Presbyterian, 13.6 percent Roman Catholic, 8.1 per cent Methodist, and 16.2 per cent of other religions or of no religion, or who objected to state their religious profession.

NUMBER OF OFFICIATING MINISTERS.—The number of names on the list of officiating ministers under the Marriage Act was (January 1956) 2,832, and the churches to which they belong are shown hereunder.

ChurchNumber
Roman Catholic Church622
Church of England514
Presbyterian Church of New Zealand460
Methodist Church of New Zealand338
Salvation Army161
Ratana Church of New Zealand155
Baptist122
Brethren47
Ringatu Church46
Seventh Day Adventist39
Latter Day Saints34
Associated Churches of Christ32
Congregational Independent30
Assemblies of God28
Commonwealth Covenant Church21
Jehovah's Witness19
Apostolic Church18
Liberal Catholic Church15
Evangelistic Church of Christ10
Churches of Christ10
United Maori Mission9
Spiritualist Church of New Zealand8
Evangelical Lutheran Concordia Conference8
Church of God7
Church of Te Kooti Rikirangi6
Hebrew Congregations4
Others69
      Total2,832

The Ratana Church of New Zealand, the Ringatu Church, the United Maori Mission, and the Church of Te Kooti Rikirangi are Maori organizations.

DIVORCE AND NULLITY.—The first New Zealand enactment relating to divorce was passed in 1867, and a brief historical account of the development of the legislation on this subject is given in the 1931 issue of the Year-Book. The present law is contained in the Divorce and Matrimonial Causes Act 1928 and its amendments and a résumé of its principal provisions is now given.

Grounds for Divorce.—These are set out as follows:

  1. Adultery since the celebration of the marriage;

  2. Wilful and continuous desertion for three years or more;

  3. Habitual drunkenness for four years, coupled with (wife's petition) failure to support or habitual cruelty, or with (husband's petition) neglect of, or self-caused inability to discharge, domestic duties;

  4. Conviction for attempted murder of petitioner or of any child of petitioner or respondent or for an offence under section 197 of the Crimes Act 1908 against petitioner or any such child;

  5. Conviction for murder;

  6. Insanity and confinement as a lunatic for seven out of ten years preceding the petition;

  7. Insanity for seven years, and confinement for three years immediately preceding the petition;

  8. Insanity and confinement as a lunatic for the five years immediately preceding the petition;

  9. Failure for three years or more to comply with a decree for restitution of conjugal rights;

  10. Separation under an agreement, written or verbal, which has been in full force for not less than three years;

  11. Separation by decree of judicial separation or separation order (or their equivalent in any country), which has been in force for not less than three years;

  12. Parties living apart for not less than seven years and unlikely to be reconciled;

  13. Husband guilty of rape, sodomy, or bestiality since marriage.

In cases based on separation of the parties, whether by order or agreement or otherwise, the Court must dismiss the petition if the respondent opposes it and the Court is satisfied that the separation was due to the wrongful act or conduct of the petitioner. In these cases, and in cases where the ground is failure to comply with a decree for restitution of conjugal rights, the Court has in any event a discretion whether or not to grant a divorce. In practice, however, where the petition is not opposed the Court rarely exercises this discretion against a petitioner.

Jurisdiction.—The court has jurisdiction in divorce only in cases where the petitioner is domiciled in New Zealand. In petitions based on grounds (i) above the petitioner must have been domiciled in New Zealand for at least three years at the time when the petition is filed.

Under the common law a married woman takes her husband's domicile and is incapable of acquiring a separate domicile while the marriage subsists. As a result of a series of statutory amendments, however, a wife who is living in New Zealand apart from her husband has in effect the capacity to acquire a separate domicile for the purposes of the divorce and nullity law as if she were unmarried.

Overseas Divorces.—The common law relating to the recognition of overseas divorces was clarified and extended by an amendment in 1953. Under this new provision New Zealand Courts will recognize divorces granted in any country by Courts exercising jurisdiction there on the basis of the domicile of either party in that country, or of the residence in that country of the wife for at least two years.

Nullity.—The first New Zealand legislation on the subject of nullity was enacted in 1953. It replaces and extends the common law on this topic.

The Court has jurisdiction to make a decree of nullity of marriage if either of the parties is domiciled in New Zealand when the petition is filed or if the marriage was solemnized in New Zealand.

A petition for a nullity decree may be presented in the case of either a void or a voidable marriage. Void marriages are those which are of no effect whether or not a decree is obtained. Voidable marriages are those which are valid unless and until a decree is obtained.

The following are the cases in which a marriage is void by the law of New Zealand:

  1. Where at the time of the ceremony either party to the marriage was already married;

  2. Where, whether by reason of duress or mistake or insanity or otherwise, there was at the time of the marriage an absence of consent by either party to marriage to the other party;

  3. Where the parties are within the prohibited degrees of relationship as set out in the Marriage Act 1955;

  4. Where the marriage was not solemnized in due form.

A marriage is voidable in New Zealand on the following grounds:

  1. Incapacity or wilful refusal of the respondent to consummate the marriage;

  2. Mental deficiency of either party within the meaning of the Mental Health Act 1911, although that party was capable of consenting to the marriage;

  3. Venereal disease (of the respondent) in a communicable form;

  4. Pregnancy of the respondent by some person other than the petitioner.

In cases (b), (c), and (d) the facts alleged must have existed at the time of the marriage and proceedings must be instituted within a year of the marriage. Furthermore the Court must be satisfied—

  1. That the petitioner was at the time of the marriage ignorant of the facts;

  2. That marital intercourse with the petitioner's consent has not taken place since the discovery of the existence of the grounds for a decree.

With the exception of inability to consummate the marriage there was no ground on which a marriage was voidable before the passing of the 1953 amendment.

A decree of nullity in a voidable marriage puts an end to the marriage from the date of the decree only and not from the date of the marriage. The principal effect of this is to ensure the legitimacy of any children of the marriage.

War Legislation.—The Matrimonial Causes (War Marriages) Act 1947 made special provisions in respect of war marriages (i.e., marriages celebrated between 3 September 1939 and 1 June 1950) where one of the parties was domiciled outside New Zealand by—

  1. Extending the jurisdiction of the Supreme Court to certain marriages irrespective of domicile;

  2. Recognizing decrees and orders in relation to such marriages made in the United States of America; and

  3. Shortening the period of desertion or separation as a ground for divorce in such cases from three years to twelve months.

By authority of the Act previous legislation on the subject embodied in the Matrimonial Causes (War Marriages) Emergency Regulations 1946 was revoked, accrued rights being protected.

Statistical Data.—Figures showing the operations of the Supreme Court in its divorce jurisdiction during recent years are as follows. About 50 per cent of the decrees granted in any year relate to petitions filed in prior years.

YearDissolution or Nullity of MarriageJudicial SeparationRestitution of Conjugal Rights
Petitions FiledDecrees NisiDecrees AbsolutePetitions FiledDecrees for SeparationPetitions FiledDecrees for Restitution
19452,2111,9151,725112550461
19462,3632,1372,133106562463
19472,1912,0512,11771430371
19482,1601,9741,853207355300
19492,0011,8241,892151331262
19501,9121,7071,633114304217
19511,8821,6661,582117263210
19521,9601,7271,684158296204
19531,8971,6431,540103227197
19541,8861,4791,5361232819
19551,7991,3791,472143248

The later years of the war and the immediate post-war years witnessed a marked increase in divorce. After the peak year of 1946, when 2,133 decrees absolute were granted, the following two years, 1947 and 1948, saw a falling off in numbers, that of the latter year being much larger than the former. A small increase was shown in 1949, after which a substantial decrease was recorded in 1950, with a smaller one in 1951. In 1952, however, an increase of 102, or 64 per cent, was shown, but this was more than offset by a decrease in 1951 of 144, or 8.6 per cent.

For 1954 a drop of only four was recorded, but in 1955 the decrease was rather larger at 64, or 4.2 per cent, below the previous year.

The passing in November 1953 of the Divorce and Matrimonial Causes Amendment Act was expected to have some effect on future divorce statistics, more particularly as regards petitions and decrees for restitution of conjugal rights. While no great change can be seen yet in the number of decrees absolute granted, the expected change has materialized in the number of petitions and decrees for restitution of conjugal rights. This can be seen in the table above.

It is worth noting that there was one divorce for every eleven marriages solemnized in 1953 and 1954, while the ratio in 1955 was one divorce to every twelve marriages.

The next table gives the grounds (dissolution or nullity cases) of petitions and decrees during 1954 and 1955.

GroundsPetitions FiledDecrees Absolute Granted
Husbands' PetitionsWives' PetitionsHusbands' PetitionsWives' Petitions
19541955195419551954195519541955
Adultery302309154178192212137119
Bigamy21221 21
Desertion132119122113109114120109
Drunkenness with cruelty, failure to maintain, etc.3 106 132
Insanity101545 1253
Sodomy  1   11
Non-compliance with order for restitution of conjugal rights48713 109233112
Separation for not less than three years416390505536314291442480
Nullity  2 21  
Non-consummation59931153
Living apart for not less than seven years9765483927492635
Murder 11  11 
Presumption of death     1  
Bestiality   1   1
 1,015916871883763706773766

The figures shown for decrees absolute cover all such granted during the year, whether the antecedent decree nisi was granted in the same or in a previous year. It should be mentioned here that the number of decrees absolute granted can, and often do, number more than the petitions filed. The reason for this is that all decrees granted are not necessarily from petitions filed in a particular year. The petition may have been filed in one year but the case not heard until the succeeding year.

Mention should be made here of the fact that over a period of five years, 1951–55 inclusive, the average percentage of decrees absolute granted on wives' petitions was greater than those granted to husbands. The figures are—wives 86.1 per cent, husbands 79.9 per cent.

The principal grounds on which decrees absolute were granted during 1955 showed the following increases compared with 1938, a normal pre-war year: adultery 174 (110.8 per cent); desertion 20 (9.8 per cent); and separation 199 (34.8 per cent). Decrees for non-compliance with restitution order show a decrease of 61, or 63.5 per cent.

In 446 of the 1,472 cases where decrees absolute were granted during 1955 there was no living issue of the marriage. The number of living issue was 1 in 389 cases, 2 in 315 cases, 3 in 162 cases, and 4 or more in 160 cases.

The table which follows shows the duration of marriage in all cases for which decrees absolute were granted in the five years 1951 to 1955.

Duration of Marriage, in YearsHusbands' Decrees Absolute GrantedWives' Decrees Absolute Granted
1951195219531954195519511952195319541955
Under 516515612687651401101116269
5 and under 10222259231221204228242255286234
10 and under 15171177173184155161206178161163
15 and under 208090109116123114115101116138
20 and under 30.10912491112110118113102112112
30 and over40533543493239283650
Not stated2         
      Totals789859765763706793825775773766

The number of living issue affected by the decrees absolute of their parents during each of the last five years was as follows: 1951, 2,178; 1952, 2,497; 1953, 2,348; 1954, 2,300; and 1955, 2,294.

4 D—EUROPEAN DEATHS

(NOTE.—The term European used in the context of this subsection means the population exclusive of Maoris.)

REGISTRATION.—The law as to registration of deaths is now embodied in the Births and Deaths Registration Act 1951, a consolidation of the then existing legislation. Particulars required in the registration of a death include date, place of residence and domicile, name, occupation, sex, age, cause of death, birthplace, duration of residence in New Zealand, whether cremated or not, marital status, living issue of married persons, race (European or Maori), medical attendant by whom certified, particulars as to burial, and, in the case of married males, age of widow.

Every death occurring in New Zealand is required to be registered within three days after the day of the burial. There is a penalty up to £10 for neglect, the funeral director in charge of the burial being solely responsible for registration. When an inquest is held the Coroner becomes responsible for registration, the time allowed being three days after the conclusion of the inquest. The Coroner may, in writing, authorize an agent to attend to registration on his behalf. Registrations must not be effected before the conclusion of the inquest.

Where the Coroner decides not to hold an inquest the funeral director is responsible for registration of the death.

The law does not impose any limit of time after which a death may not be registered as it does in the case of a birth. Although it is necessary to effect a birth-registration entry in the case of a still-born child, no entry is made in the register of deaths. The principal Act stipulates, however, that a medical practitioner or a midwife in attendance at a confinement where a still-birth occurs must furnish a certificate stating to the best of his or her knowledge and belief the cause of the stillbirth.

New provisions in the 1951 Act include prohibition of burial at sea of a person dying in New Zealand except upon the authority of a Coroner, and provide for the registration of the death of a person whose body is removed for anatomical examination under Part II of the Medical Act 1908, or is removed for burial outside New Zealand.

Any person burying, or permitting or taking part in the burial of the body of any deceased person without a certificate of cause of death signed by a duly registered medical practitioner, or a Coroner's order to bury the body, renders himself liable to a fine of £50.

From 1 April 1952 (reverting to the system followed prior to 1937) it is incumbent upon a medical practitioner to give the certificate of cause of death to the person required to supply information for the purpose of registering the death (the funeral director in charge of the burial). During the intervening period the medical practitioner was required to deliver the certificate direct to the Registrar. The practitioner is required to report forthwith to the Coroner any case where, in his opinion, the death has occurred in any circumstances of suspicion.

The Act provides for the correction of errors (clerical, of fact, of substance, or of omission) in the register in the manner authorized by the Registrar-General.

The Births and Deaths Registration Amendment Act 1955 provides that—where the death of any person occurs outside New Zealand and the death took place on board a New Zealand ship within the meaning of the Shipping and Seaman Act 1952; or on board an aircraft registered in New Zealand pursuant to the Civil Aviation Act 1948 or as the result of any occurrence on board any such aircraft during its operation—the Registrar-General may authorize any Registrar to register the death in accordance with the provisions of the Act relating to the registration of deaths taking place in New Zealand.

Deaths of Members of the Forces While Overseas.—The Registration of Deaths Emergency Regulations 1941, which superseded 1940 regulations of similar title, required the Registrar-General to compile a War Deaths Register of persons of New Zealand domicile who died while out of New Zealand on service in some capacity in connection with the Second World War. Members of the New Zealand Naval Forces were excluded from the regulations, special provision having previously been made in their case. These regulations were revoked by the Births and Deaths Registration Amendment Act 1947, which made statutory provision in this connection. The amendment required the Registrar-General to compile a register of all persons who have died while out of New Zealand on service with any of the Armed Forces of Her Majesty and who at the time of their deaths were domiciled in New Zealand. Deaths registered in the War Deaths Register were not taken into account in arriving at the number and rate of deaths in New Zealand, nor were deaths of visiting overseas servicemen or prisoners of war in New Zealand. Deaths of New Zealand servicemen which occurred in New Zealand were, however, included. The Births and Deaths Registration Act 1951 requires the Registrar-General to compile a register containing particulars of all persons who have died while out of New Zealand on service with any Commonwealth force within the meaning of the Army Act 1950 and who at the time of their deaths were domiciled in New Zealand.

Registration of Maori Deaths.—Registration of the deaths of Maoris are effected with the Maori Registrars in the various districts set up for this purpose. Statistics relating to the deaths of Maoris are not included in this subsection, but are fully covered in Section 4E.

NUMBERS AND RATES.—The following table shows the number of deaths and the death rate per 1,000 of the mean population during each of the last twenty years.

YearNumberRate Per 1,000 of Mean PopulationYearNumberRate Per 1,000 of Mean Population
193713,6589.08194715,9049.39
193814,7549.71194815,8129.16
193914,1589.20194916,0129.09
194014,2829.24195016,7159.31
194115,1469.84195117,5129.56
194216,38510.60195217,4139.28
194315,44710.04195317,0098.84
194415,3639.87195417,6678.98
194516,05110.07195517,9538.95
194616,0939.71195618,4039.00

New Zealand has been noted for many years for its favourable death rate. The fact that the death rate is still comparatively very low, despite the older age constitution of the population, is probably due, inter alia, to improvements in medical techniques, expansion of health services, etc. This progress has been reflected, for example, in a relatively low incidence of serious outbreaks of the more important epidemic diseases (which were much more prevalent in the early years of colonization) and in a remarkably low infant-mortality rate.

The general trend of the death rate in New Zealand was for many years downwards, reaching its lowest level during the depression years of the early “thirties”. Since then an upward trend was in evidence for some years, the figures recorded during the war years being the highest for a long time. It is possible that the absence overseas of considerable numbers of men of early adult age, at which mortality experience is the most favourable, would have some effect on the rates established. The strains of wartime would also have some effect on deaths in the older age groups; in fact, the high rate of 1942 disclosed a sharp rise in deaths resulting from diseases of the heart and nervous system. For four years following 1945 a downward trend was again in evidence and, although small increases were recorded in 1950 and 1951, the 1952 and 1953 rates again showed decreases; the figure of 8.84 for 1953 being the lowest recorded rate since 1936 (8.75). A contributing factor to the slight rise in the rate recorded in 1954 was the registration during the year of the deaths of the victims of the Tangiwai railway disaster.

The death rates of males and females for the last eleven years are shown separately in the next table.

YearDeaths Per 1,000 of Mean PopulationMale Deaths to Every 100 Female DeathsMale Rate Expressed as Index Number of Female Rate (= 100)
MalesFemalesTotal
19460.558.869.71118119
194710.508.289.39127127
194810.178.149.16125125
19499.948.249.09121120
195010.238.389.31123122
195110.508.629.56122122
195210.128.449.28121120
19539.807.868.84126125
19549.968.008.98126125
19559.868.038.95124123
19569.998.009.00126125

COMPARISON WITH OTHER COUNTRIES.—An international comparison of death rates is made in the following table. They are the average of the five years 1951–55 and are taken from the Monthly Bulletin of Statistics issued by the United Nations.

CountryRates Per 1,000 of Population

* European population only.

Israel6.3
Netherlands7.5
Norway8.4
Puerto Rico8.4
Canada8.5
Union of South Africa*8.7
Japan8.8
Denmark8.9
New Zealand91
Australia9.2
Finland9.5
United States of America9.5
Sweden9.6
Italy9.7
Spain9.9
Switzerland101
Germany (Western)10.6
Costa Rica11.2
Ceylon11.4
Portugal11.5
United Kingdom11.7
Yugoslavia12.1
Austria12.2
France12.5
Republic of Ireland12.5
Chile13.3
India13.8
Mexico14.9

DISTRIBUTION OF DEATHS OVER THE YEAR.—An examination of the total number of deaths registered in each quarter of the period 1945–55 gives the following averages: March quarter, 3,602; June quarter, 4,081; September quarter, 4,901; and December quarter, 4,156.

A classification according to month of death shows that in 1955 the months during which the greatest number of deaths occurred were July, August, and June, with totals of 1,858, 1,818, and 1,639 respectively. Excluding December, a proportion of deaths occurring in that month not being registered till January, February had the least number of deaths, 1,155, followed by April and January, with 1,296 and 1,341 respectively.

The lowest number of deaths on any one day, again excluding December, was 24, this number occurring on 27 February. The greatest number (82) occurred on 20 July.

AGE AT DEATH.—The deaths registered during the year 1955 are tabulated below according to age.

AgeMalesFemalesTotal
Under 1 month422283705
1–2 months554297
3–5 months6239101
6–11 months603999
1 year544498
2 years272754
3 years201939
4 years151530
5–9 years563692
10–14 years453075
15–19 years8835123
20–24 years10742149
25–29 years9439133
30–34 years10860168
35–39 years14695241
40–44 years186142328
45–49 years309219528
50–54 years474326800
55–59 years6473731,020
60–64 years8175661,383
65–69 years1,2058932,098
70–74 years1,5341,1582,692
75–79 years1,5621,4032,965
80–84 years1,0641,1052,169
85–89 years5676891,256
90–94 years166242408
95–99 years385492
100 years325
101 years134
106 years1 1
  Totals9,9338,02017,953

The following table indicates the changes that have occurred since 1930 in the age distribution of persons dying. The movement in the proportions of deaths occurring at the different age groups is very striking. The results of three main factors are illustrated—viz., health measures, which have achieved an immense saving of young life; the fluctuations in the birth rate over the period; and the great increase in the proportion of old people in the community.

Age, in YearsNumber of DeathsPercentage of Total
19301940195019551930194019501955
Under 19249901,0081,0027.576.936.035.58
1 and under 53272051992212.681.441.191.23
5 and under 101679887921.370.690.520.51
10 and under 1510510864750.860.760.380.42
15 and under 202221511201231.821.060.720.68
20 and under 253152471581492.581.730.950.83
25 and under 303372701421332.761.890.850.74
30 and under 353372901911682.762.031.140.94
35 and under 403743202752413.072.241.651.34
40 and under 454783623283283.922.531.961.83
45 and under 506404725225285.253.303.122.94
50 and under 557947986978006.515.594.174.46
55 and under 608811,1451,0211,0207.228.026.115.68
60 and under 651,0031,4611,5031,3838.2210.238.997.70
65 and under 701,0771,6972,1702,0988.8311.8812.9811.69
70 and under 751,1711,7722,5362,6929.6012.4115.1714.99
75 and under 801,2421,5562,3162,96510.1810.8913.8616.52
80 and over1,8052,3403,3783,93514.8016.3820.2121.92
      Totals12,19914,28216,71517,953100.00100.00100.00100.00

During the earlier period covered by the next table the fall in the death rate was common to all ages and to both sexes. In more recent years, however, there have been some fluctuations in the rates for the higher age groups, but the 1955 figures again reflect a declining tendency. Of special significance are the low rates recorded in the childhood and early adult life age groups in recent years, and the high percentage reduction effected during the entire period. The female rate for the various age groups is almost invariably lower than the male rate. The increase in the death rate (per 1,000 of population) at successive age groups is well exemplified.

YearUnder 1*1 and Under 55 and Under 1515 and Under 2525 and Under 3535 and Under 4545 and Under 5555 and Under 6565 and Under 7575 and Over

* Per 1,000 live births in this case.

Males
190178.606.811.893.523.976.1611.9423.1250.59141.67
191163.485.361.912.423.876.2711.0220.8353.22130.58
192153.104.781.852.443.565.559.6119.9646.17128.60
193138.212.831.352.282.774.648.6918.2544.18130.57
194132.552.140.991.982.623.768.7920.6746.31137.85
195126.491.400.641.541.822.937.2020.0446.90127.33
195523.341.250.521.461.362.486.7718.6746.32117.39
Females
190163.875.501.643.584.726.7010.6219.4443.32127.98
191148.745.371.482.764.344.928.3817.8940.44119.60
192142.314.491.312.343.384.468.0014.8836.81120.23
193125.672.470.971.853.203.816.8415.3636.83122.87
194126.852.040.711.352.053.146.5814.5538.06116.57
195118.811.190.360.731.172.045.2913.2732.35113.75
195516.651.190.360.600.711.764.8910.9730.6199.54
Both Sexes
190171.406.171.773.554.336.4011.3721.6347.87135.71
191156.315.361.702.584.095.649.8219.5547.74126.13
192147.824.641.582.393.475.108.8517.5941.90124.84
193132.152.651.172.072.984.227.8016.8840.56126.87
194129.772.090.851.652.323.447.6517.6842.20126.76
195122.771.300.501.151.492.496.2616.5239.36119.96
195520.091.220.441.041.052.125.8514.6637.97107.61

The average (arithmetic mean) age at death of persons of either sex at ten-yearly intervals since 1901 and during each of the last five years was as follows.

Years

YearMalesFemales
190141.6437.68
191146.1742.37
192148.4546.97
193154.1455.48
194158.6559.60
195161.5865.25
195262.1664.89
195362.3165.34
195462.7465.72
195562.7566.34

There has been a striking upward movement in the average age at death since 1901. A noticeable feature is that in the earlier years the age for females was considerably lower than that for males, the margin gradually narrowing until virtual equality was reached in 1927–28, since when the female average age at death has been higher than the male.

EXPECTATION OF LIFE.—Life tables for the European section of the population based on the mortality experience of New Zealand, ranging from 1880 to 1938, have been published at various times in previous issues of the Year-Book. The latest investigation was based on the 1951 census combined with the deaths for the three years 1950–52, and the (complete) expectation of life at various ages is given below.

AgeMalesFemales
068.2972.43
169.0372.90
268.1772.05
367.2771.12
466.3370.18
565.3969.23
1060.6064.37
2051.1554.64
3041.8945.06
4032.6535.64
5023.8326.68
6016.1918.53
7010.0511.46
805.556.16

The expectation of life at age 0 has risen by 13.00 years in the case of males and by 14.34 years in the case of females over the period since the first New Zealand life table of 1891–95. The effect of the lowered infant-mortality rate and the efficacy of the health services generally is clearly demonstrated, however, by the fact that at age 5 the expectation of life of males has increased by only 7.10 years and females by 9.20 years over the same period.

A brief comparison is quoted below:

Years

PeriodMalesFemales
1891–189555.2958.09
1896–190057.3759.95
1901–190558.0960.55
1906–191059.1761.76
1911–191560.9663.48
1921–192262.7665.43
1925–192763.9966.57
193165.0467.88
1934–193865.4668.45
1950–195268.2972.43

The above tables are exclusive of Maoris. A table showing the expectation of life of the Maori population is given in Section 4E.

A comparison of the expectation of life at age 0 for various countries is now given. In selecting comparable tables from the experience of other countries due regard was had to securing the most recent figures available. The countries selected are for the most part those of similar racial stock.

CountryMalesFemales

* Exclusive of Maoris.

† White population.

New Zealand (1950–52)*68.2972.43
Australia (1946–48)66.0770.63
Union of South Africa (1945–47)63.7868.31
England and Wales (1953)67.3072.44
United States of America (1954)67.473.6
Norway (1946–50)69.2572.65
Netherlands (1950–52)70.672.9
Denmark (1946–50)67.870.1
Sweden (1946–50)69.0471.58
Finland (1946–50)58.5965.87
France (1950–51)63.669.3
Switzerland (1939–44)62.6866.96
Canada (1950–52)66.3370.83

INFANT MORTALITY.—Over a long period of years New Zealand has been renowned for its low rate of infant mortality, a fact attributable partly to such matters as climate, virility of the race, comparative absence of densely settled areas, etc., and partly to legislative and educative measures—the latter conducted by the State as well as by various organizations (one of the most important of these is the Royal New Zealand Society for the Health of Women and Children which was founded in 1907).

Particulars of deaths of infants under one year of age for each of the years 1946–56 are shown in the following table.

YearNumberRate Per 1,000 Live Births
MalesFemalesTotalMalesFemalesTotal
19466314621,09329.322.726.1
19476244981,12227.322.725.0
194856940197025.218.622.0
19496004461,04626.421.023.8
19505694391,00825.120.322.8
19516114061,01726.518.822.8
19525534611,01423.220.421.8
195354938293123.016.920.1
195455641296822.317.620.0
19555994031,00223.316.620.1
195654243697820.817.719.4

In the following table New Zealand's infant-mortality rate is shown in comparison with that of other countries. The figures are taken from the United Nations Monthly Bulletin of Statistics. It is interesting to observe that the distinction of having the lowest infant-mortality rate in the world now belongs to Sweden, which achieved the phenomenally low ratio of 17 infant deaths per 1,000 live births in 1955, as compared with New Zealand's 20 for the same year. In the case of the Union of South Africa and New Zealand the European population only has been taken into account

CountryQuinquenniumDeaths Under 1 Year Per 1,000 Live Births
Sweden1951–5519
New Zealand1951–5521
Netherlands1951–5522
Australia1951–5523
Norway1950–5424
United States of America1951–5527
United Kingdom1951–5528
Switzerland1951–5528
Denmark1950–5429
Finland1951–5532
China (Taiwan)1951–5533
Union of South Africa1951–5534
Canada1951–5535
Israel1951–5536
Republic of Ireland1951–5540
France1951–5542
West Germany1951–5546
Belgium1951–5547
Japan1951–5548
Czechoslovakia1951–5549
Austria1951–5551
East Germany1951–5555
Cyprus1950–5456
Italy1951–5558
Spain1951–5560
Argentina1950–5466
Venezuela1951–5573
Ceylon1951–5575
Portugal1951–5591
Mexico1950–5492
Peru1950–54104
Yugoslavia1951–55116
India1950–54120
Chile1951–55124

The male rate of infant mortality is considerably above the female rate, the average for New Zealand over the five-year period 1951–55 being 23.7 male deaths per 1,000, male births and 18.1 female deaths per 1,000 female births.

The rates per 1,000 births for the two sexes combined at different ages during the first year of life are now given for each of the last eleven years.

INFANT-MORTALITY RATES, 1945–55 (PER 1,000 LIVE BIRTHS)

YearUnder One DayOne Day and Under Two DaysTwo Days and Under One WeekTotal Under One WeekOne Week and Under Two WeeksTwo Weeks and Under Three WeeksThree Weeks and Under One MonthTotal Under One MonthOne Month and Under Twelve MonthsTotal Under One Year
19458.42.55.416.31.90.80.619.68.428.0
19468.23.04.916.11.80.70.519.17.026.1
19478.03.04.515.51.40.70.518.16.925.0
19486.72.94.113.71.10.60.415.86.222.0
19498.23.04.015.21.00.50.317.06.823.8
19507.33.14.214.61.20.60.216.66.222.8
19516.92.94.914.71.00.20.316.2.6.622.8
19526.32.44.313.01.20.40.515.16.721.8
19535.92.14.112.11.10.60.514.35.820.1
19546.02.44.212.61.00.40.414.45.620.0
19556.41.93.511.81.30.50.514.16.020.1

Infants who die in the first year of life may be grouped roughly into two main classes—viz., those dying within one month of birth and those surviving the first month of life but dying before the first anniversary of their birth. Deaths amongst the first class, called neo-natal deaths, are due principally to pre-natal and natal influences. The second group covers those infants who have succumbed in the main to causes arising from post-natal influences such as the various epidemic diseases, diseases of the respiratory system, faulty feeding, and other environmental factors.

The next table shows that, whereas in the quinquennium 1951–55 the death rate for children under one month of age was 50 per cent lower than in the quinquennium 1881–85, the rate for children who had survived the first month of life was only approximately one-tenth as high as in the “eighties.” In other words, whereas formerly over sixty children out of every 1,000 who survived the first month of life died before reaching one year of age, now only six such deaths occur. While the decline in the under-one-month group has been progressive for some years, it was among infants who had survived the first month of life that the most marked reductions were achieved. In the “thirties,” however, the reduction of this rate was arrested, and in the quinquennium 1941–45 an increase was recorded for the first time. For some years it had been considered that any further substantial decrease in the total infant-mortality rate would have to be achieved in the under-one-month group. The figures for 1951–55, however, indicate that whereas this group recorded a decrease of 26 per cent from 1941–45, the one-month-and-over group declined by 36 per cent.

PeriodDeaths Per 1,000 Births
Under 1 YearUnder 1 MonthBetween 1 and 12 Months
1881–188590.6029.7760.83
1886–189084.0927.5756.52
1891–189587.6030.3457.26
1896–190080.0630.3849.68
1901–190574.7730.6444.13
1906–191069.6230.2839.34
1911–191553.6329.2824.35
1916–192048.6228.1620.46
1921–192542.7527.4815.27
1926–193036.7024.8211.88
1931–193531.8822.349.54
1936–194031.8322.519.32
1941–194529.5320.019.52
1946–195023.9217.316.61
1951–195520.9514.846.11

The accompanying diagram further illustrates the reduction in the infant-mortality rate that has taken place over a long period.

Causes of Infant Mortality.—The principal causes of infant mortality over the last ten years, showing both numbers and rates per 1,000 live births, are shown in the following table. The classification is according to the Sixth (1948) Revision of the International List.

Causes of DeathNumber of Deaths
1946194719481949195019511952195319541955
Tuberculosis, all forms5635 142 2
Congenital syphilis2 14  1  1
Enteric fever and other salmonella infections    3    2
Dysentery, all forms1  1     1
Diphtheria105  2     
Whooping-cough1204121246421
Meningococcal infections924 2510779
Tetanus4  1 1   1
Poliomyelitis      21 2
Measles11 31 222 
Influenza, pneumonia, and bronchitis after the first four weeks of life72807485539679737779
Pneumonia of the newborn27253126223022242821
Gastro-enteritis after the first four weeks of life29212117152610121610
Diarrhoea of the newborn65233 1513
Congenital malformations181190159163198151205163208196
Birth injury130154167158142146118127110144
Asphyxia and atelectasis93100102111128164174152110137
Haemolytic disease of newborn (erythroblastosis)34373530503834374040
Immaturity unqualified311276193238225191191162198162
Accidents35384452303326241727
Other and undefined causes142162130137122131129136152164
      Totals1,0931,1229701,0461,0081,0171,0149319681,002
Causes of DeathRates Per 1,000 Live Births
1946194719481949195019511952195319541955

* Less than 0.1.

Tuberculosis, all forms0.10.10.10.1 *0.1* *
Congenital syphilis0.1 *0.1  *  *
Enteric fever and other salmonella infections    0.1    *
Dysentery, all forms*  *     *
Diphtheria0.20.1  0.1     
Whooping-cough*0.50.10.30.30.10.10.1 *
Meningococcal infections0.2*0.1 0.10.10.20.20.20.2
Tetanus0.1  * *   *
Poliomyelitis      0.1  *
Measles** 0.1* 0.1** 
Influenza, pneumonia, and bronchitis after the first four weeks of life1.71.81.71.91.22.21.71.61.61.6
Pneumonia of the newborn060.60.70.60.50.60.50.50.60.4
Gastro-enteritis after the first four weeks of life0.70.50.50.40.30.60.20.30.30.2
Diarrhoea of the newborn0.10.10.10.10.1 *0.1*0.1
Congenital malformations4.34.23.63.74.53.44.43.54.33.9
Birth injury3.13.43.83.63.23.32.52.72.32.9
Asphyxia and atelectasis2.22.22.32.52.93.73.73.32.32.7
Haemolytic disease of newborn (erythroblastosis)0.80.80.80.71.10.90.70.80.80.8
Immaturity unqualified7.46.24.45.45.14.34.13.54.13.2
Accidents0.80.91.01.20.70.70.60.50.40.5
Other and undefined causes3.43.62.83.12.62.92.82.93.13.3
      Totals26.125.022.023.822.822.821.820.120.020.1

Some remarkable changes are disclosed by the next table, which gives the infant-mortality rates for various groups of causes in quinquennial periods commencing with the years 1872–76 and for 1955. It would appear that diseases which can be combated openly, such as epidemic diseases, respiratory diseases, and diseases due to faulty nourishment, etc. (i.e., diseases of the digestive system), have shown a definite response to the strenuous campaigns launched against them. If a comparison be made between the averages of the first and last five-yearly periods given —i.e., 1872–76 and 1947–51—it is found that the general infant-mortality rate shows a decline of 74 per cent, while even greater decreases are recorded for tuberculosis (98 per cent), convulsions (99 per cent), gastric and intestinal diseases (95 per cent), epidemic diseases (92 per cent), and respiratory diseases (78 per cent). The rate for epidemic diseases still continues to decline, and it is interesting to note that over 40 per cent of the total under this heading in the years 1947–51 were due to whooping-cough, while an additional 27 per cent were assigned to influenza. During the five-year period 1949–53 there were only two deaths of infants from diphtheria and three deaths due to scarlet fever and streptococcal sore throat.

The increase shown for malformations and the decrease for tuberculosis are probably somewhat less than is indicated by the figures. In the earlier years covered by the table the latter heading included all deaths from hydrocephalus, many of which were no doubt due to congenital hydrocephalus, which is now included among the malformations. A proportion of the deaths from hydrocephalus in the earlier years would also probably be due to meningitis. The following table shows quinquennial average death rates of infants under one year of age per 1,000 live births. To enable the comparison with past years to be maintained, the infant deaths for 1950 onwards have been re-assembled to conform to the former classifications for the purposes of this table—i.e., influenza deaths have been included under epidemic diseases, while both pneumonia and diarrhoea of the newborn have been included under respiratory and gastric and intestinal diseases respectively, and not as diseases of early infancy.

PeriodEpidemic DiseasesTuberculosisInfantile ConvulsionsRespiratory DiseasesGastric and Intestinal DiseasesMalformationsEarly InfancyOther CausesTotal

* Less than 0.1.

1872–187613.55.59.712.924.21.225.017.3109.3
1877–188110.25.27.512.319.81.421.915.393.6
1882–18869.34.77.911.819.11.225.512.391.8
1887–18918.93.76.310.518.51.324.78.882.7
1892–18969.83.36.611.016.61.424.911.284.8
1897–19016.12.65.610.017.21.526.29.778.9
1902–19065.51.54.19.715.31.327.67.972.9
1907–19115.91.33.37.615.51.926.76.368.5
1912–19163.60.62.25.17.43.926.23.552.5
1917–19213.20.51.94.74.54.326.12.948.1
1922–19261.80.41.34.32.84.822.43.341.1
1927–19311.50.30.53.71.75.019.43.135.2
1932–19361.50.20.63.31.25.017.52.431.7
1937–19411.40.20.23.11.35.517.42.531.6
1942–19461.10.10.12.91.24.616.12.628.7
1947–19510.60.10.12.30.83.813.62.023.3
19550.7* 2.40.43.910.81.920.1

It is convenient to consider still-births and neo-natal deaths together, as they are largely the result of common causes. The combined group may be termed perinatal mortality. The term is particularly appropriate when we consider how deaths in the newborn crowd closely towards the day of birth. This effect is clearly shown in the table on page 100. Still-births and neo-natal deaths are considered together in the next table and are computed as rates per 1,000 total births.

YearStill-birthsNeo-natal DeathsNeo-natal Deaths Plus Still-births
NumberRateNumberRateNumberRate
195180417.6972415.931,52833.62
195284617.8870414.881,55032.76
195388718.7566214.001,54932.79
195487217.6969714.141,56931.76
195579615.7170513.911,50129.63

Recent years have shown a definite trend towards improvement in the combined rate.

CAUSES OF STILL-BIRTH.—A still-born child is defined in New Zealand as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue.”

The registration of still-births has been effected in New Zealand since 1913, but no information regarding the causes of still-births was required for registration purposes until 1947. As from 1 July 1952 a certificate of the cause of death in cases of intermediate foetal deaths—i.e., deaths after the end of the twentieth but before the end of the twenty-eighth week of pregnancy—was also required to be furnished. There were 91 such cases recorded during 1954. The certificates of causes of still-birth and foetal death provide for both maternal and foetal causes to be entered.

The following table shows the 872 still-births registered during 1954 classified (a) according to maternal causes and (b) according to foetal causes.

Causes of Still-birthNumber of Cases
MalesFemalesTotal
(a) Maternal Causes
Chronic disease in mother161228
Acute disease in mother61016
Diseases and conditions of pregnancy and childbirth10292194
Difficulties in labour6756123
Other causes in mother415
      Totals195171366
(b) Foetal Causes
Placental and cord conditions11874192
Birth injury18321
Congenital malformation of foetus4259101
Diseases of foetus and ill-defined causes10587192
      Totals283223506
      Totals, a causes478394872

PERINATAL MORTALITY AND PREMATURITY.—Approximately three out of every four infants who die in the first year of life do so in the first month, and of those dying in the first month 45 per cent die in the first day of life and 83 per cent in the first week.

A principal factor in the loss of this new life is prematurity. This is seen in the following table, where causes of neo-natal deaths for 1955 are set out in accordance with the International List of 1948.

Causes of DeathUnder One DayOne Day and Under One WeekOne Week and Under Two WeeksTwo Weeks and Under Three WeeksThree Weeks and Under One MonthTotal Under One Month
Congenital malformations392822916114
Injury at birth37395  81
Injury at birth with prematurity33271  61
Post-natal asphyxia and atelectasis242821 55
Post-natal asphyxia and atelectasis, with prematurity43335  81
Pneumonia of newborn3323112
Pneumonia of newborn, with prematurity2132210
Disorders arising from maternal toxaemia911  11
Disorders arising from maternal toxaemia, with prematurity9111  21
Haemolytic disease of newborn (erythroblastosis)9111  21
Haemolytic disease of newborn (erythroblastosis), with prematurity873  18
Haemorrhagic disease of newborn35   8
Haemorrhagic disease of newborn, with prematurity11   2
Diarrhoea of newborn1  113
Diarrhoea of newborn with prematurity      
Ill-defined diseases peculiar to early infancy 21  3
Ill-defined diseases peculiar to early infancy, with prematurity 32  5
Immaturity with mention of any other subsidiary condition   1 1
Immaturity, unqualified93608  161
Pemphigus neonatorum1    1
Umbilical sepsis  1  1
Other sepsis of newborn   1 1
Other sepsis of newborn, with prematurity      
External causes11 125
Other causes4777429
      Totals320268652626705

A total of 162, or 23 per cent, of all neo-natal deaths are directly attributed to prematurity (immaturity) and a further 198 deaths are given as associated with it. The principal conditions of early infancy with which prematurity was associated were (i) asphyxia in 81 cases (11.5 per cent of all neo-natal deaths), (ii) birth injury in 61 cases (8.7 per cent of all neo-natal deaths), and (iii) all other causes peculiar to early infancy in 56 cases (7.9 per cent of all neo-natal deaths).

In the case of still-births, out of 872 in 1954 there were 488 cases, or 56 per cent, where gestation fell short of full term.

It is not possible to assess what the reduction in perinatal mortality would be if every pregnancy were to go to full term, but there is no doubt that it would be considerable.

As a first step in the campaign to reduce this grave loss of new life, details of the birth weight and gestation period of all infants born alive or dead after 1 July 1952 were required to be furnished to the Registrars of Births and Deaths. These will provide essential basic data for further studies on prematurity. It will give a measure of the extent of the problem in different localities according to the age and parity of the mother and the occupation of the father, and it will enable cohorts of infants to be followed through their first year of life so that their mortality and morbidity experience may be shown according to their degree of maturity at birth.

CAUSES OF DEATH.—Since 1908 the classification of causes of death in New Zealand has been on the basis of the international classification initiated by Dr. Jacques Bertillon. Almost all countries are member States of the World Health Assembly, and the International Statistical Classification of Diseases, Injuries, and Causes of Death has world-wide application.

The sixth (1948) revision of the classification was applied in New Zealand to the deaths for 1950. At the same time a departure was made from the previous arbitrary rules of selection, when more than one cause of death was entered on a certificate, to an assignment according to what is termed the underlying cause of death. This may be defined as (a) the disease or injury which initiated the train of morbid events leading directly to death, or (b) the circumstances of the accident or violence which produced the fatal injury. The responsibility for indicating the train of events is placed on the physician or surgeon signing the medical certificate of death.

The following table shows the numbers of deaths and death rates per million of mean population according to the Abbreviated List of 50 Causes (Sixth Revision, 1948).

The statistics for tuberculosis, cancer, puerperal causes, and violent causes, which are of special interest and significance, are discussed later on in this subsection. Certain diseases (cholera, plague, smallpox, typhus, and malaria) are not listed in the table below, as there were no deaths occurring from these causes in the years shown.

Causes of DeathNumbersRates Per Million of Mean Population
1951195219531954195519511952195319541955

* Less than one.

Tuberculosis of respiratory system319225183181195174120959297
Tuberculosis, other forms64475523233525281211
Syphilis and its sequelae67626126263733321313
Typhoid fever  23   12 
Dysentery, all forms32 1421 12
Scarlet fever and streptococcal sore throat11221*111*
Diphtheria3234221221
Whooping-cough7755244331
Meningococcal infections141920221681010118
Acute poliomyelitis15426129*2913114
Measles230788116444
All other diseases classified as infective and parasitic75666752854135352642
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissues2,8362,7992,7862,8783,0771,5491,4921,4481,4641,534
Benign and unspecified neoplasms36423639352022192017
Diabetes mellitus24422124219320513311812698102
Anaemias80756183774440324238
Vascular lesions effecting central nervous system2,0632,1652,2522,2502,2811,1271,1541,1701,1441,137
Non-meningococcal meningitis1523411927812211013
Rheumatic fever1781713594972
Chronic rheumatic heart-disease204220219200202111117114102101
Arteriosclerotic and degenerative heart-disease4,9604,6574,8494,7354,7702,7092,4822,5192,4082,378
Other diseases of the heart591660528639702323352274325350
Hypertension with heart-disease676632559679630369337290345314
Hypertension without mention of heart1541651441111228488755661
Influenza781293574234369183811
Pneumonia406416370458480222222192233239
Bronchitis250348286374407137186148190203
Ulcer of stomach and duodenum1501401581681728275828586
Appendicitis2827282618151414139
Intestinal obstruction and hernia118110111134936459586846
Gastritis, duodenitis, enteritis, and colitis, except diarrhoea of newborn115757995876340414843
Cirrhosis of liver64574652703530242635
Nephritis and nephrosis1991881782031601091009210380
Hyperplasia of prostate1541401171211428475616271
Complications of pregnancy, childbirth, and the puerperium31332525221718131311
Congenital malformations202255234286266110136122145133
Birth injuries, post-natal asphyxia, and atelectasis310292260220281169156135112140
Infections of the newborn30253666271613193413
Other diseases peculiar to early infancy, and immaturity unqualified296274258265254162146134134127
Senility without mention of psychosis, ill-defined, and unknown causes20917711917016111494628680
All other diseases1,4261,5351,4651,5661,684778818761796840
Motor-vehicle accidents269252279277313147134145141156
All other accidents549550558730571300293290371285
Suicide and self-inflicted injury182189192175181991011008990
Homicide and operations of war1419101517810588
      Totals17,51217,41317,00917,66717,9539,5649,2828,8378,9848,950

TUBERCULOSIS.—The death rate from tuberculosis of the respiratory system has shown a declining tendency for many years, but the reduction by nearly one-half in the space of the five years 1951–55 is a noteworthy achievement. The rate for 1955, 97 per million of population, is slightly higher than that recorded for 1954.

In addition to the 195 deaths from tuberculosis of the respiratory system during 1955, there were 23 deaths from other forms of tuberculosis, comprising—

Tuberculosis of meninges and nervous system4
Tuberculosis of intestines, peritoneum, and mesentery2
Tuberculosis of bones and joints6
Tuberculosis of skin 
Tuberculosis of lymphatic system1
Tuberculosis of genito-urinary system9
Tuberculosis of adrenal glands 
Tuberculosis of other organs 
Disseminated tuberculosis1

Deaths from tuberculosis of sites other than pulmonary have also declined greatly in recent years, the death rate from these causes having been reduced by nearly two-thirds during the five years 1951–55. The principal contributory factor towards this reduction has been tuberculosis of the meninges and central nervous system. In 1951 there were 22 deaths from this cause, compared with only 4 in 1955.

The following table shows the number of deaths from tuberculosis in 1955, classified according to sex and age groups. Of those dying from this cause in 1955, persons under the age of 45 years formed 23 per cent.

Age, in YearsMalesFemalesTotal
Under 5 77
5 and under 10   
10 and under 15   
15 and under 20 11
20 and under 253 3
25 and under 30224
30 and under 35538
35 and under 4010414
40 and under 459514
45 and under 5013821
50 and under 5513821
55 and under 6015318
60 and under 6515621
65 and under 7020626
70 and under 75241034
75 and under 8011617
80 and over639
  Totals14672218

CANCER.—A special report on cancer was issued in 1954 by the Medical Statistics Branch of the Department of Health. This report covers the years 1948–53, and is an analysis of the deaths occurring from cancer in New Zealand during those years, together with a survey of returns received from the various cancer clinics established in New Zealand under the auspices of the British Empire Cancer Campaign Society. From these data estimates have been prepared of the total numbers of new cases of cancer that occur each year and of cancer of different sites at different ages in the two sexes. A comparison is given of the situation in New Zealand with that in other parts of the world, together with estimates of the chances of survival. Special articles and statistical tables on the subject of cancer are contained in the 1917 and 1926 issues of the Year-Book, while the 1949 report of the Department of Health contains data covering the twenty-six years from 1924 to 1949. A summary of the special report on cancer mentioned above is contained in the Medical Statistics Report of the Department of Health for 1953.

Attention is drawn to the transference, under the 1948 Revision of the International Classification, of Hodgkin's disease, leukaemia, etc., into the category of malignant diseases. This classification was introduced in 1950, and all cancer figures quoted for that and subsequent years include these conditions.

Cancer is annually responsible for more deaths in New Zealand than can be assigned to any cause other than diseases of the heart. While it is most prevalent in middle and old age, it exacts a heavy toll throughout the life-span. With the inclusion of Hodgkin's disease and leukaemia under the cancer heading, the disease assumes a very high position as a cause of death among children and adolescents. It is interesting to compare the de-line in the death rate from tuberculosis with the rise in the cancer death rate. These rates are set out in the following table and diagram. The fall in the tuberculosis rate may be said to reflect the achievements of the public-health service, whilst the rise in the cancer rate portrays in general the increasing age of the population.

This is illustrated by the following figures.

 Average Death Rates Per 10,000 of Population
PeriodTuberculosisCancer
1880–8912.353.42
1890–9910.625.44
1900–099.106.79
1910–196.998.22
1920–295.699.30
1930–394.1711.17
1940–493.4613.56
1950–551.5314.94

The relative movements in the death rates from cancer and tuberculosis are further illustrated in the following diagram, which shows the rates at five-yearly intervals since 1875.

In 1955 there were 3,077 deaths from cancer in New Zealand, a proportion of 15.34 per 10,000 of mean population. A summary for the last eleven years is given below.

YearNumber of Deaths From CancerRecorded Death RateStandardized Death Rate*

* Standard population used for standardized rates—England and Wales 1901.

† Includes Hodgkin's disease, leukaemia, etc., from 1950 onwards.

19452,21313.888.42
19462,26813.688.48
19472,31513.678.30
19482,45314.218.65
19492,47214.048.59
19502,65214.778.99
19512,83615.499.49
19522,79914.929.03
19532,78614.488.89
19542,87814.648.98
19553,07715.349.35

A summary showing the location of the disease in deaths from cancer during 1955 is given in the following table.

Site of DiseaseNumbersRates Per Million of Mean Population
MalesFemalesTotalMalesFemalesTotal
Buccal cavity and pharynx322456322428
Oesophagus443478443439
Stomach251184435249184217
Intestine, except rectum165206371164206185
Rectum9463157936378
Larynx2532825314
Trachea, and of bronchus and lung not specified as secondary2863932528439162
Breast22942962295148
Cervix uteri 9090 9045
Other and unspecified parts of uterus 5252 5226
Prostate199 199197 99
Skin391958391929
Bone and connective tissue241135241117
All other and unspecified sites313322635310323316
Leukaemia and aleukaemia7462136736268
Lymphosarcoma and other neoplasms of lymphatic and haematopoietic system7056126695663
      Totals1,6181,4593,0771,6051,4611,534

The standardized figures for recent years suggest that cancer, while undoubtedly increasing in numerical incidence, is not doing so out of proportion to the population exposed to the cancer risk. Improvement in diagnosis has been responsible for some of the numerical increase in the recorded deaths from cancer, though this factor has now become more stabilized. A classification according to sex and age groups for 1955 is now given.

Age, in YearsMalesFemalesTotal
Under 5131023
5 and under 1011516
10 and under 159312
15 and under 205510
20 and under 257512
25 and under 305712
30 and under 35161228
35 and under 40213455
40 and under 45296089
45 and under 507395168
50 and under 55117125242
55 and under 60141109250
60 and under 65180149329
65 and under 70255204459
70 and under 75278215493
75 and under 80241219460
80 and over217202419
    Totals1,6181,4593,077

Ninety-two per cent of the deaths from cancer during 1955 were at ages 45 years and upwards, and 60 per cent at ages 65 years and upwards. Approximately one death in every six of persons who die after be age of 50 years is due to cancer.

PUERPERAL CAUSES.—In point of numbers of deaths, puerperal accidents and diseases do not rank high among causes of death. Nevertheless, deaths from puerperal causes are of special importance and significance. The rate per 1,000 live births in each of the last twenty years is shown in the following table.

YearProportion Per 1,000 Live Births
19363.70
19373.61
19384.07
19393.64
19402.93
19413.36
19422.53
19432.21
19442.71
19452.24
19462.05
19471.07
19481.26
19491.02
19500.90
19510.69
19520.71
19530.54
19540.51
19550.44

A survey of the death rate from puerperal causes since 1872 shows that for a period in the early part of the twentieth century there was a tendency for the rate to decline. Then followed a definite upward movement, culminating in a rate of 6.48 per 1,000 live births in 1920, the third highest on record, this figure having been exceeded only in 1884 and 1885. Comparatively high rates persisted until 1931, since when the decline has been more or less steady. The efficacy of new drugs and methods of treatment is reflected in the extremely low rates recorded in recent years, the figure for 1955 of 0.44 being a new record. This low rate has been achieved mainly by a reduction in the number of deaths from septic abortion and puerperal sepsis. Deaths from complications of childbirth have also been unusually few since 1949.

It is generally conceded that in years of high birth rates the maternal-mortality rate tends to rise, probably due to the abnormally high proportion of first births in the total of births, upon which the death rate for these causes is based. In common with most countries for which recent figures are available, the reverse has been the experience in New Zealand during recent years. Possibly a contributory factor in this reversal has been the rise in the proportion of births taking place in institutions, more particularly in special annexes attached to the larger hospitals, where every facility for the care of the patient is more readily available.

Details of deaths from deliveries and complications of pregnancy, childbirth, and the puerperium for the three years 1953 to 1955 are shown in the following summary.

Causes of DeathNumber of DeathsRate Per 10,000 Live Births
195319541955195319541955
Toxaemias of pregnancy131122.792.270.40
Placenta praevia      
her haemorrhage of pregnancy 12 0.210.40
Ectopic pregnancy      
Abortion without mention of sepsis or toxaemia12 0.220.410.20
Abortion with sepsis14 0.220.820.80
Abortion with toxaemia 1  0.21 
Delivery complicated by placenta praevia or antepartum haemorrhage     0.20
Delivery complicated by retained placenta21 0.420.210.20
Delivery complicated by other post-partum haemorrhage32 0.640.410.80
Delivery complicated by disproportion or malposition of foetus11 0.220.210.20
Delivery complicated by prolonged labour of other origin     0.61
Delivery with trauma1  0.22 0.20
Delivery with other complications of childbirth11 0.220.21 
Sepsis of childbirth and the puerperium1  0.22  
Puerperal phlebitis and thrombosis1  0.22  
Puerperal pulmonary embolism 1  0.210.20
Puerperal eclampsia     0.20
Other and unspecified complications of the puerperium      
      Totals, including septic abortion2525225.395.164.41
      Totals, excluding septic abortion2421185.174.343.61

A summary of maternal mortality from all puerperal causes, in triennial periods since 1927, is now given.

Causes of Death1927–291930–321933–351936–381939–411942–441945–471948–501951–53
Number
Puerperal sepsis12858394446301263
Eclampsia and other toxaemias1019793948058624230
Septic abortion47859168586133207
Accidents, haemorrhage, and other mortality12412410491135941107349
      Total maternal mortality40036432729731924321714189
      Maternal mortality, excluding septic abortion35327923622926118218412182

DEATHS FROM EXTERNAL CAUSES.—Deaths from external causes, apart from suicide, claim approximately 6 per cent of the total deaths. The following table shows deaths from external causes for the three years 1953, 1954, and 1955 according to the Intermediate List of the 1948 Revision of the International Classification. It is necessary to refer to the detailed list of circumstances of accident or means of injury if a comparison with years prior to 1949 is required, as the inclusions under the headings below differ considerably from past practice—e.g., drowning from boats and ships or from horseback whilst crossing rivers are included below as transport fatalities, as also are falls on board ship and from horseback.

Causes of DeathNumber of DeathsRate Per Million of Mean Population
195319541955195319541955
Motor-vehicle accidents279277313145141156
Other transport accidents97252855012842
Accidental poisoning27182314912
Accidental falls182181177959288
Accident caused by machinery292228151114
Accident caused by fire and explosion of combustible material234526122313
Accident caused by hot substance, corrosive liquid, steam, and radiation81012456
Accident caused by firearm14813747
Accidental drowning and submersion788795414447
All other accidental causes102107112535556
Homicide and injury purposely inflicted by other persons (not in war)101517588
      Totals8491,022901441520449

The number of deaths recorded from all accidental causes in 1955 was 884 corresponding to a rate of 4.41 per 10,000 of population.

Transport Accidents.—In classifying deaths attributable to transport accidents under the various subheadings shown in the following table the rule of assignment is that in fatalities due to collisions of railway trains and electric tram cars with motor vehicles the death is assigned to the railway train or electric tram car as being the heavier and more powerful vehicle. In the case of collisions between motor vehicles and horse-drawn vehicles, the death is assigned to the motor vehicle.

The number and rate of deaths resulting from railway, tramway, motor vehicle, and aircraft accidents during each of the last eleven years are as follows.

YearDeaths Due to AccidentRate Per 10,000 of Mean Population
RailwayTramwayMotor VehicleAircraftRailwayTramwayMotor VehicleAircraft
19452611104270.230.070.650.17
1946402215730.240.130.950.02
194739918780.230.051.100.05
1948347175240.200.041.010.14
1949287190250.160.041.080.14
195030719860.170.041.100.03
195139925490.210.051.390.05
1952322240140.170.011.280.07
1953262269280.140011.400.15
19541804269160.920.021.370.08
195542229590.210.011.470.04

Deaths occurring as a result of the Tangiwai railway disaster were not registered till 1954; and Consequently were not included in the 1953 totals. These deaths numbered 154, and of course account for the large increase in the number of deaths due to railway accidents shown for 1954. Of this number 1 was a Maori, and 7 were registered as unidentified bodies.

Deaths arising out of aircraft accidents fell off steeply after 1945. This was to be expected, since the figures include Air Force accidents in New Zealand as well as civilian casualties. In 1948 the crashing on Mount Ruapehu of a National Airways Corporation plane with the loss of 13 lives was the principal cause of the high figure for civil air transport accidents in that year. New Zealand's worst air disaster occurred in 1949, when fifteen lives were lost in a crash at Waikanae. The figure of 25 deaths is the highest total recorded in a non-war year.

Deaths from motor-vehicle accidents recorded an appreciable increase up to 1930, but this trend was reversed during the depression years, largely owing to a great reduction in the number of motor vehicles on the roads during that period. With the advent of more prosperous times, the toll of the motor vehicle again mounted, although, fortunately, not in proportion to the tremendous increase in motor vehicular traffic on the highways. An appreciable drop, however, was experienced during the war years on account of there being less traffic on the roads owing to restrictions in the use of motor spirits and rubber tires. Since the war the number of fatalities from motor-vehicle accidents progressively increased up to 1955, with the exception of a small decline in 1952.

The figures given in the above table for deaths from motor-vehicle accidents (which do not include deaths of Maoris) are exclusive of accidents where persons have been killed in collisions between motor vehicles and trains or trams, these being assigned to the heavier vehicle. For 1955 there were 18 deaths from such accidents, bringing the total number of deaths in cases where a motor vehicle was involved up to 313. The corresponding figure for 1954 was 277.

Non-transport Accidents.—The 1948 Revision of the International List makes provision for non-transport accidents (excluding therapeutic misadventure in treatment, complications following vaccination or inoculation, and late effects of injury and poisoning) to be grouped according to the place where the accident or poisoning occurred. The following table shows the deaths, both numbers and rates, for each of the three years 1953, 1954, and 1955 according to this classification.

Place of OccurrenceNumberRate Per Million of Mean Population
195319541955195319541955
Home (including home premises and vicinity and any      
non-institutional place of residence)244253233127129116
Farm (including buildings and land under cultivation, but excluding farm and home premises)433945222022
Mine and quarry7511425
Industrial place and premises9262051310
Place for recreation and sport994552
Street and highway171318979
Public building (building used by the general public or a particular group of the public)681341
Resident institution (homes, hospitals, etc.)19143510717
Other specified places897994464047
Place not specified871431
      Totals451453462235230230

One in every two fatal non-traffic accidents occurs in or about the home.

The chief killer in the home is falls, which exacts a heavy toll of the aged and infirm. Second comes asphyxia from regurgitation of foodstuffs and inhalation of other objects, or mechanically from pillows and bedclothes: this is the principal hazard of the first six months of life, though a proportion of these deaths is probably due to some undisclosed underlying respiratory infection. Almost all the home drowning fatalities are amongst toddlers between one and two years of age who fall into rivers, creeks, and ponds in the immediate home vicinity.

There were 127 deaths from non-transport accidents on farms in the period covered, while fatal non-transport accidents in industrial plants, factories, and workplaces totalled 55.

Further data regarding accidents will be found elsewhere in this volume (see Index). A later Section is devoted wholly to statistics of industrial accidents.

SUICIDES.—Suicidal deaths in 1955 numbered 181—males 130, females 51—the death rate per 10,000 of mean population being 0.90.

YearNumber of Suicidal DeathsRate Per 10,000 of Mean Population
MalesFemalesTotalMalesFemalesTotal
1951136461821.480.500.99
1952141481891.500.511.01
1953135551901.400.570.99
1954132431751.340.440.89
1955130511811.290.510.90

The following table presents, for annual averages of various quinquennia, the suicide rate per 10,000 of mean population.

Annual Average DuringMalesFemalesBoth Sexes
1895–991.480.310.93
1900–041.660.311.02
1905–091.620.341.02
1910–141.830.411.16
1915–191.790.401.10
1920–241.920.461.20
1925–292.170.561.38
1930–342.290.551.44
1935–391.630.571.10
1940–441.440.560.99
1945–491.380.570.97
1950–541.410.500.96

4 E—MAORI VITAL STATISTICS

UNLESS specially stated to the contrary, in the preceding subsections 4B and 4D, Maoris have been excluded from the statistical tables presented. The standard of registration of Maoris is still below that of the European section of the population of New Zealand. This is due partly to difficulties of language, educational status, etc., and partly to problems of access. This latter difficulty arises from the fact that the greater portion of the Maori population is resident in country districts not so well served with modern facilities as regards transport, medical, and nursing services, etc. Consequently registration of vital facts regarding the Maori race as a whole is not quite at the same high level of accuracy as obtains for the European population, but very considerable improvement has been effected in recent years.

MAORI BIRTHS.—In the successive Registration Acts special provision was made for exemption from the necessity of registration in the case of births and deaths of Maoris, though registration could be effected if desired. Section 20 of the Births and Deaths Registration Amendment Act 1912 (now section 52 of the Births and Deaths Registration Act 1951) empowered the making of regulations to provide for the registration of births and deaths of Maoris. Regulations were made accordingly, and Maori births and deaths became registrable as from 1 March 1913. The number of Registrars of Maori Births and Deaths in New Zealand is over 250, most of these being in the North Island, where the great majority of the Maori population is located. Every Maori settlement of any size is within reach of one of these Registrars. Maori registrations are entered in a separate register, which does not, however, make provision for as many particulars as is the case with registrations of Europeans.

The number of births of Maoris registered during 1956 was 6,163 (3,133 males, 3,030 females). The Maori birth rate in 1956 was almost twice the European birth rate (44.64 per 1,000). Registrations of Maori births in each of the last eleven years were as follows.

YearNumber of Maori BirthsRate Per 1,000 of Mean Population
MalesFemalesTotal
19463,0072,7695,77656.81
19472,5412,4474,98847.46
19482,5892,3674,95645.97
19492,5102,4074,91744.48
19502,6062,4995,10545.07
19512,7462,4925,23844.97
19522,8562,6035,45945.41
19532,8842,6455,52944.54
19542,9342,7665,70044.37
19552,9842,8235,80743.64
19563,1333,0306,16344.64

Prior to 1946 there was reason to believe that the number of Maori births was somewhat understated, and this view was confirmed by the registration figures for 1946, the year in which the provision of family benefits under the Social Security scheme was extended to cover all children under sixteen years of age irrespective of the income of the parents. Of the 5,776 Maori births registered during 1946, no fewer than 1,447, or 25 per cent, had actually occurred before 1945—i.e., over a year before registration.

For the purposes of the Maori Births and Deaths Registration Regulations 1935 a Maori is defined as “a person belonging to the aboriginal race of New Zealand, and includes a half-caste and a person intermediate in blood between half-castes and persons of pure descent from that race”.

Only registrations relating to persons possessing half or more Maori blood are made in the register of Maori births or Maori deaths. All registrations in respect of persons possessing less than half Maori blood must be made in the European register.

MAORI MARRIAGES.—In the 1953 and preceding issues of the Year-Book a brief statement of the legislative position relating to Maori marriages was given. The Maori Purposes Act 1951, however, brought about a complete change to that hitherto existing. The view was taken that the Maori race had reached a stage where such special dispensations were no longer justifiable. From 1 April 1952 all Maori marriages are subject to the ordinary laws affecting European marriages, and no marriage according to Maori custom subsequent to that date will be held valid. As a result it is not now possible to distinguish marriages of Maoris from those of Europeans, and Maori marriage statistics as a separate feature have lapsed.

The Maori marriage figures for each of the ten years (1942–51) were given on page 99 of the 1955 issue.

MAORI DEATHS.—Registrations of Maori deaths during each of the last eleven years have been as follows.

YearNumberRate Per 1,000 of Maori Population
MalesFemalesTotalMalesFemalesTotal
19468377901,62716.0315.9716.00
19477967421,53814.7414.5214.63
19487896841,47314.2513.0413.66
19497977691,56614.0314.3114.17
19507346351,36912.6211.5212.09
19517395851,32412.3810.3111.37
19528036801,48313.0411.6012.34
19537605851,34511.979.6510.84
19546805291,20910.358.439.41
1955694578.1,27210.198.909.56
19567085851,29310.038.679.37

The rates for the two sexes are much more nearly equal for Maoris than for the rest of the population, the female rate being actually higher than the male in 1949. The total Maori death rate has shown considerable improvement during recent years, and is fast approaching equality with the European rate. Further improvement in the infant mortality rate for Maoris could result in such equality in the near future.

Apart from mere numbers by sex, statistics of Maori deaths are not available prior to 1920, but annual tabulations are now made on the bases of age and cause of death. The ages of Maoris whose deaths were registered during the year 1955 were as shown in the following table.

Age, in YearsMalesFemalesTotal
Under 1219144363
1 and under 5534598
5 and under 10271340
10 and under 15151126
15 and under 20181028
20 and under 25211738
25 and under 30301848
30 and under 35131427
35 and under 40262046
40 and under 45191837
45 and under 50283765
50 and under 55343670
55 and under 60334174
60 and under 65412768
65 and under 70333770
70 and under 75272653
75 and under 80211738
80 and under 85121527
85 and under 9011920
90 and under 955914
95 and under 1008816
100 and over 66
    Totals6945781,272

EXPECTATION OF LIFE.—Official life tables dealing with the Maori population have been compiled for the first time. The investigation was based on the 1951 Census combined with the deaths for the three years 1950–52, and the (complete) expectation of life at various ages is given below.

AgeMalesFemales
054.0555.88
157.6959.08
257.7159.03
357.0258.26
456.2557.45
555.4256.61
1050.9952.05
2042.2143.29
3034.2535.11
4026.4127.00
5018.8620.07
6012.8114.41
708.399.98
804.795.71

The expectation of life of Maoris is much shorter than that of the European population. A comparison at age 0 shows a longer expectation of 14.24 years for European males and 16.55 years for European females.

A similar table to the above for Europeans will be found in Section 4D.

Causes of Maori Deaths.—With the exception of diphtheria and scarlet fever, epidemic and infectious diseases generally exact a much heavier toll proportionately among Maoris than among the European population, the most noteworthy examples being tuberculosis, particularly of the respiratory system, and typhoid fever. Other diseases of the respiratory system also show much higher rates for Maoris than for Europeans, and the same state of affairs is disclosed for diarrhoeal diseases and stomach complaints.

On the other hand, there is a much lower mortality rate among Maoris from certain diseases which rank high as causes of death among the European population. Principal among these are cancer, heart-disease and other diseases of the circulatory system, nephritis, the group of general diseases which includes diabetes and exophthalmic goitre, and the group of diseases of the nervous system which includes apoplexy and cerebral haemorrhage. Malformations show lower rates for Maoris than for Europeans, but the indefinite nature of the data in the registration entries covering the deaths of many Maori infants may be partly responsible, as the figures of deaths from malformations and the group “early infancy” taken in conjunction indicate a much higher rate for Maoris from these causes as a whole than for the European population.

The Introduction of the Sixth (1948) Revision of the International Classification of Causes of Death in 1950, together with the change to assignment according to the underlying cause of death, prevent accurate comparisons being made between the 1950 and subsequent mortality tabulations and those for earlier years. The following table shows the Maori deaths for 1953 to 1955 classified according to the Abbreviated List of the 1948 Revision.

Causes of DeathNumber of DeathsRate Per 10,000 of Mean Maori Population
195319541955195319541955
Tuberculosis of respiratory system7971616.365.534.58
Tuberculosis, other forms4029143.222.261.05
Syphilis and its sequelae8350.650.230.18
Typhoid fever3220.240.160.1
Dysentery, all forms4220.320.160.15
Scarlet fever and streptococcal sore throat      
Whooping-cough10550.810.390.38
Meningococcal infections7580.560.390.60
Acute poliomyelitis1  0.08  
Measles61070.480.780.53
All other diseases classified as infective and parasitic1915121.531.170.90
Malignant neoplasms, including neoplasms of lymphatic and haematopoietic tissues10387948.306.777.06
Benign and unspecified neoplasms5440400.310.30
Diabetes mellitus116110.890.470.83
Anaemias54100.400.310.75
Vascular lesions affecting central nervous system4056443.224.363.31
Non-meningococcal meningitis1511151.210.861.13
Rheumatic fever16861.290.620.45
Chronic rheumatic heart-disease4034393.222.652.93
Arteriosclerotic and degenerative heart-disease14913012912.0010.129.69
Other diseases of the heart4543583.633.354.36
Hypertension with heart-disease2017331.611.322.48
Hypertension without mention of heart7220.560.160.15
Influenza6650.480.470.38
Pneumonia14712514811.849.7311.12
Bronchitis4645533.713.503.98
Ulcer of stomach and duodenum3340.240.230.30
Causes of DeathNumber of DeathsRate Per 10,000 of Mean Maori Population
195319541955195319541955
Appendicitis5340.400.230.30
Intestinal obstruction and hernia101290.810.930.68
Gastritis, duodenitis, enteritis, and colitis, except diarrhoea of the newborn5849644.673.814.81
Cirrhosis of liver1220.080.160.15
Nephritis and nephrosis1517181.211.321.35
Hyperplasia of prostate1320.080.230.15
Complications of pregnancy, childbirth, and the puerperium79120.560.700.90
Congenital malformations2822242.261.711.80
Birth injuries, post-natal asphyxia, and atelectasis5741484.593.193.61
Infections of the newborn12440.970.310.30
Other diseases peculiar to early infancy, and immaturity unqualified6456485.164.363.61
Senility without mention of psychosis, ill-defined, and unknown causes1519141.211.481.05
All other diseases1041041078.388.108.04
Motor-vehicle accidents3955513.144.283.83
All other accidents8185826.536.626.16
Suicide and self-inflicted injury6260.480.160.45
Homicide and operations of war7360.560.230.45
      Totals1,3451,2091,272108.3494.1295.58

MAORI INFANT MORTALITY.—As regards infant mortality, the Maori rate is much higher and more variable than the European, principally owing to the ravages of epidemic diseases, tuberculosis, respiratory diseases, and diarrhoeal diseases. The infant-mortality rate for the first year of life was 69 per 1,000 births in the case of Maoris for the five years 1951–55, as compared with 21 per 1,000 among European infants. The decrease in the Maori infant-mortality rate during the years 1946 and 1947 is more apparent than real, as the birth figures on which they are based include a considerable number of late registrations of hitherto unregistered births (see p. 110). There has, however, been a substantial decrease in Maori infant mortality in recent years, the rate for 1956 being a record low figure. There has been a reduction of 9 per cent in the rate for the five years 1951–55 compared with the previous quinquennium.

The numbers and rates per 1,000 live births for the last eleven years are given in the next table.

YearMaorisEuropeans
Number of Deaths Under One YearRate Per 1,000 Live BirthsNumber of Deaths Under One YearRate Per 1,000 Live Births
194643174.621,09326.10
194736573.181,12225.04
194838076.6797021.95
194942285.821,04623.78
195035669.741,00822.75
195135768.161,01722.78
195246184.451,01421.82
195340473.0793120.06
195433458.6096819.99
195536362.511,00220.09
195633554.3697819.39

The next table shows for the year 1955 the principal causes of death of Maori infants in the various subdivisions of the first year of life. The classification is according to the Sixth (1948) Revision of the International Classification of Causes of Death.

Causes of DeathUnder 1 Day1 Day and Under 2 Days2 Days and Under 1 Week1 Week and Under 2 Weeks2 Weeks and Under 3 Weeks3 Weeks and Under 1 Month1 Month and Under 2 Months2 Months and Under 3 Months3 Months and Under 6 Months6 Months and Under 9 Months9 Months and Under 12 MonthsTotal
Tuberculosis         112
Syphilis      1    1
Dysentery, all forms         1 1
Whooping-cough        31 4
All other diseases classified as infective and parasitic    1  12329
Non-meningococcal meningitis        1416
Influenza       131 5
Pneumonia, except of newborn      37413217100
Bronchitis       226111
Intestinal obstruction and hernia        1  1
Gastritis, duodenitis, enteritis, and colitis, except diarrhoea of newborn      2415171351
Congenital malformations312  12231318
Birth injuries16851      131
Post-natal asphyxia and atelectasis1032 1  1   17
Infections of the newborn313111     10
Immaturity unqualified1612102 1     41
Other diseases peculiar to early infancy   1     1 2
Accidents1     1 6  8
Other diseases  21 416169645
      Totals4925246371024937745363

Immaturity unqualified accounted for 41 infant deaths, but in a further 34 deaths due to diseases peculiar to early infancy, prematurity was an associated condition.

The great achievement in reducing the infant-mortality rate for the European population has been accomplished during the period after the first month of life up to the end of the first year. Conversely, the causes of the high Maori mortality rates are to be found in the same period of life. This is indicated in the next table, which contrasts the mortality rates per 1,000 live births for European and Maori infants respectively for the last twenty years.

YearEuropeansMaoris
Under One MonthOne and Under Twelve MonthsTotal Under One YearUnder One MonthOne and Under Twelve MonthsTotal Under One Year
193622.318.6530.9622.3287.60109.92
193722.219.0031.2121.6670.5192.17
193824.1511.4835.6330.32122.94153.26
193921.859.2931.1432.0782.85114.92
194022.038.1830.2123.9263.3087.22
194120.009.7729.7726.8598.21125.06
194218.739.9828.7119.4078.5297.92
194321.2710.1031.3718.9270.9489.86
194420.609.5230.1219.3082.96102.26
194519.598.4027.9926.0562.8888.93
194619.087.0226.1018.3556.2774.62
194718.086.9625.0425.4647.7273.18
194815.806.1521.9528.8547.8276.67
194917.016.7723.7822.7863.0485.82
195016.576.1822.7528.4141.3369.74
195116.226.5622.7825.0143.1568.16
195215.156.6721.8225.8258.6384.45
195314.265.8020.0626.9546.1273.07
195414.395.6019.9919.8338.7758.60
195514.145.9520.0919.6442.8762.51

The principal causes of death of Maori infants responsible for the high mortality rates after the first month of life are diarrhoea and enteritis, broncho-pneumonia, pneumonia, and other diseases of the respiratory system.

4 F—MORBIDITY

COMPARISONS of healthiness of a community over a period of years which are based on death rates do not fully take into account the effect of the advance of medical science in recent years. It is common knowledge that many diseases regarded a few decades ago as incurable now show a fair proportion of recoveries. Similarly, the death rates in epidemics are in general much lower now than formerly, owing partly to the steps taken to prevent the spread of the disease, partly to the necessity of early notification in most countries, and partly to increased medical knowledge. Again, many diseases seldom if ever result fatally. Death-rate statistics are therefore supplemented by data relating to illness.

The principal source of statistics of illness in New Zealand, apart from that resulting in death, comes from the public hospitals, to which some 85 per cent of all hospital inpatients are admitted. Information concerning every person discharged from a public hospital is collected and tabulated (from 1 January 1950) in accordance with the International Statistical Classification of Diseases, Injuries, and Causes of Death, and published annually in the Department of Health publication Medical Statistics. Similar information was formerly published in the Annual Report on Vital Statistics issued by the Department of Statistics. At present no attempt is being made to bridge the gap between illness where there was admission to a public hospital and illness where there was no such admission. Other morbidity statistics in New Zealand are those concerning certain notifiable diseases, shown in the next paragraph, those about industrial accidents reported in Section 42, those concerning benefits granted under the Social Security Act reported in Section 7A, and those to sick members of Friendly Societies mentioned in Section 7E.

NOTIFICATION OF DISEASES.—The numbers of all notifiable diseases reported during the calendar year 1955 are shown in the following table; the total figures (including Maoris) are given month by month, with the totals for Maoris being shown in the last column.

DiseaseAll CasesMaoris
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotalsTotals Only
Diphtheria4313397272285110
Enteric fever—
  Typhoid39536214279 5139
  Paratyphoid2 1  1 12 1192
Tuberculosis—
  Pulmonary83116180132931401191611431441631661,640501
  Other forms11153019221616243524353027788
Cerebrospinal meningitis7865571017124649123
Poliomyelitis161721646315110524621870334
Influenza      1  12 42
Erysipelas288973275737683
Puerperal fever—
  Ordinary 31143352133291
  Following abortion4 31     11 10 
Eclampsia27336631436549 
Tetanus34 322131364325
Hydatids41235 3138243610
Trachoma   2 221 2211211
   11   1    32
Food poisoning322221911125349710819812
Bacillary dysentery1632701777353740583730845762
Amoebic dysentery41 431   14 18 
Undulant fever4316242 4648442
Malaria 1  12111  3103
Actinomycosis           11 
   1         1 
Anchylostomiasis (hookworm)        1   1 
Leptospirosis63 55 15517207742
Salmonellosis44156147565459849
      Totals2072573512332722562733153503845604953,953821

Total notifications for each of the last five years for all cases and for Maoris for some of the notifiable diseases are shown in the following table.

Disease19511952195319541955
DiphtheriaAll cases6752896951
Maori61013810
Typhoid and paratyphoid feverAll cases73851115160
Maori4954742441
Pulmonary tuberculosisAll cases1,5571,7051,7101,6511,640
Maori387493523573501
Cerebrospinal meningitisAll cases7410412312191
Maori1116233523
PoliomyelitisAll cases2789040343703
Maori1296234
Puerperal fever and septic abortionAll cases5560624539
Maori55551
TetanusAll cases2632302432
Maori43445
HydatidsAll cases5839614136
Maori1614101410
Food poisoningAll cases456312271370198
Maori2541161612
Bacillary dysenteryAll cases116115123438457
Maori28364610462
Undulant feverAll cases5878816044
Maori35532

Diphtheria.—Notifications at 51 were a decrease of 18 on 1954.

Typhoid and Paratyphoid Fever.—In 1955 the incidence was much the same as in 1954.

Cerebrospinal Meningitis.—The notifications showed a decrease of 30 on 1954.

Poliomyelitis.—1955 saw the commencement of the 1955–56 epidemic and details are available in the Department of Health's Annual Report.

Hydatids Disease.—The figures for 1955 again point to a disturbingly high incidence. As a result of the educational activities of the Department of Health, carried out in conjunction with the Department of Agriculture, farmers' organizations in several parts of the country have become very conscious of the existence of the disease, and are giving valuable assistance in encouraging their members to dose their dogs and to avoid re-infecting them.

Food Poisoning.—While the reported cases numbered 198 the number of outbreaks, however, was about the same as the previous year. It is certain, however, that while outbreaks involving numbers of people are generally reported there must be many sporadic cases and family outbreaks which are dismissed as “summer sickness” or “gastric flu”'.

Undulant Fever.—The notified cases of this disease again showed a slight decrease, although probably only a small proportion of the total infections are notified. All cases are due to Br. abortus the infectivity of which, for humans, is relatively low.

Venereal Disease.—The following table shows the number of persons seen for the first time at the venereal-disease clinics in the four main centres of Auckland, Wellington, Christchurch, and Dunedin, during each of the years 1951–55, and found to be suffering from gonorrhoea or syphilis.

GonorrhoeaSyphilis
MalesFemalesTotalMalesFemalesTotal
19519612831,2445572127
19528473101,157345084
19538543331,187294473
1954697257954274370
1955595248843313263

A large proportion of these recorded male cases refer to first attendances of infected seamen visiting our main ports. So far as the local population is concerned, as indicated by the figures for females, these diseases are relatively uncommon except in the Auckland district, where the number of new female infections remains high.

Tuberculosis.—With an intensification of case-finding by all tuberculosis workers in recent years the notification of tuberculosis has improved to a degree that enables a reasonable picture of the disease to be presented as it affects this country. From a study of the returns over the last few years there is reason to believe that the annual increase in notifications of the disease has reached stability. The Department of Health is continuing its efforts to reduce both incidence and mortality. In fact the mortality per 100,000 has decreased from 28.3 in 1951 to 13.7 in 1955. The corps of Public Health Nurses available for tuberculosis case-finding work has been increased, and hospital clinics in the charge of chest specialists have now been provided to give a wider coverage. The responsibilities of the Department of Health in case-finding and domiciliary care are being co-ordinated with those of the Hospital Boards, which are responsible for diagnosis and treatment.

The medical officers of the Department of Health assist the Public Health Nurses in the examination of contacts and arrange tuberculin tests and X-ray examinations. One mass miniature X-ray unit has been in operation for over three years in Taranaki, one mobile unit has proceeded to Christchurch, and four others will soon be built, while transportable units are established in Auckland, Christchurch, Wellington, and Dunedin. Special investigation by these methods is directed towards those groups of the population which are likely to show a high incidence of the disease, and this type of work is being extended. Cases that are found to be tuberculous, or suspected of having the disease, are referred to hospital chest clinics, which assess the diagnosis and prescribe treatment. The supervision of “after care” on discharge from a hospital or sanatorium then becomes the joint responsibility of the Public Health Nurse and the hospital clinic staff.

As a contribution to prophylaxis, health education is being stimulated, and B.C.G. vaccination against tuberculosis which was commenced in hospital staffs, contacts, and adolescents, is being extended.

During 1955 vaccinations were performed in 26,051 persons after preliminary Mantoux testing.

The Department of Health maintains a Tuberculosis Register, which attempts to classify all known cases, and a clearer conception of the type, form, and extent of the disease is being obtained as workers become more accustomed to provide the necessary information. The number of cases on the Register (inclusive of Maoris) at 31 December 1955 was 12,428, of which 11,325 were pulmonary and 1,103 non-pulmonary. The number of new cases notified in 1954 was 1,917, of which 1,328 were European and 589 Maori. Of the European cases, 1,139 were pulmonary and 189 non-pulmonary, and in the Maori cases the figures were 501 and 88 for pulmonary and non-pulmonary respectively. Some of these cases have since proved non-tuberculosis and have been deregistered.

The total number of persons on the register at the end of 1955 amounted to 43.4 per 10,000 of the European population, and 230.1 per 10,000 of the Maori population. The combined figure was 594 per 10,000.

PUBLIC HOSPITALS.—Detailed statistical information is supplied to the Department of Health about every patient, except normal maternity cases, discharged from or dying in public hospitals in New Zealand. The following tables have been compiled from that information for the years specified below.

Patients Treated.—The following table shows the number of patients treated in public hospitals for the years 1951–1955.

YearRemaining on 1 January From Previous YearAdmissionsDischargesDeathsTotal Number of Indoor PatientsRemaining on 31 December

* Does not include 106 inmates of old people's homes, previously included in the total remaining on 31 December, 1951.

†Does not include 314 normal maternity cases previously included in the total remaining on 31 December 1953.

19518,435159,293150,8338,163167,7288,732
19528,626*165,729157,3718,119174,3558,865
19538,865166,969159,0087,922175,8348,904
19548,582155,603147,6908,140164,1858,355
19558,348156,063148,0258,410164,4117,976

The fall in the number of patients treated during 1954 and 1955 was caused by excluding from the annual figures normal maternity cases treated in maternity wards. However, cases of delivery with complications, together with conditions arising out of pregnancy and the puerperium, have still been included.

Age and Sex of Patients.—The age and sex of patients discharged from or dying in public hospitals during 1955 are shown below.

Age-GroupsMalesFemalesTotal
Under 1 year3,8272,8516,678
1 and under 2 years2,0401,4753,515
2 and under 31,7841,3133,097
3 and under 41,6511,1782,829
4 and under 51,7121,320,032
5 and under 107,7666,06813,834
10 and under 154,8573,8328,689
15 and under 204,9555,35210,307
20 and under 255,5567,21712,773
25 and under 304,8776,71511,592
30 and under 354,0385,9349,972
35 and under 403,5775,0898,666
40 and under 453,8904,5258,415
45 and under 503,7183,9367,654
50 and under 554,0363,6967,732
55 and under 603,4393,0566,495
60 and under 653,6653,1586,823
65 and under 703,9823,1667,148
70 and under 753,8232,8836,706
75 and under 803,0272,3585,385
80 and under 851,6371,2702,907
85 years and over8577241,581
    Totals78,71477,116155,830

Although there is little difference in the overall totals of males and females, there is a well-defined pattern when figures for each sex are compared, age-group by age-group. In all ages under fifteen years there is a preponderance of males. This difference is common to most disease groups but is more marked in diseases of the respiratory system, genito-urinary system, and in accidental injuries. For the ages between fifteen and fifty years there are more females than males. This age-group covers the child-bearing ages in women, and the higher proportion of female patients is a reflection of this fact. Apart from conditions associated with pregnancy, abortion, delivery, and the puerperium, female patients outnumbered male patients in both malignant and non-malignant tumours and in diseases of the genito-urinary system. In the remaining age-group, that for ages over fifty years, the males once more predominate, particularly in diseases of the circulatory, respiratory, and digestive systems.

Principal Diseases.—The following summary shows the principal diseases treated, together with the number of deaths and the fatality rate per cent in public hospitals in 1954. The disease headings are the sub-titles of the International Statistical Classification of Diseases, Injuries, and Causes of Death. More detailed information is published annually in the “Report on Medical Statistics.”

It should be noted that the disease or condition for which a patient is admitted to hospital is not necessarily that which would rank as the cause of death in mortality statistics. Congestive heart failure, for instance, is comparatively highly ranked in hospital cases as the condition immediately affecting the patient, but is frequently only the consequence of some underlying disease, which would take precedence over congestive heart failure in the statistics of causes of death. Hospital returns show each disease for which the patient was treated while in hospital, but the classification for statistical purposes has been made on the basis of the principal disease for which the patient was admitted, regardless of what other unrelated diseases may have been present or developed during the stay in hospital. In mortality statistics on the other hand, the underlying cause of death is of paramount importance. In the summary below a patient admitted on account of an injury is classified according to the nature of the injury. Should the patient die, however, the death would be classified in the mortality statistics according to the cause of the injury—e.g., motor-car accident, accidental fall, etc.

SUMMARYOF PRINCIPAL DISEASES TREATEDIN PUBLIC HOSPITALS DURING 1954

DiseasesTotal Cases in Public HospitalsDeaths in Public HospitalsFatality Rate Per Cent
Tuberculosis of respiratory system3,3631514.5
Tuberculosis, other forms934394.2
Syphilis and its sequelae1541491
Gonococcal infection and other venereal diseases70  
Infectious diseases commonly arising in intestinal tract442511
Other bacterial diseases960495.1
Spirochaetal diseases except syphilis101  
Diseases attributable to viruses1,7831810
Other rickettsial diseases1  
Malaria103  
Other infective and parasitic diseases411112.7
Cancer, malignant diseases5,7101,55527.2
Benign neoplasms3,095301.0
Neoplasms of unspecified nature110109.1
Allergic disorders1,485412.8
Diseases of thyroid gland742152.0
Diabetes mellitus1,357906.6
Diseases of other endocrine glands18573.8
Avitaminoses, and other metabolic diseases286124.2
Diseases of the blood and blood-forming organs648528.0
Psychoses1,187352.9
Psychoneurotic disorders1,56910.1
Disorders of character, behaviour, and intelligence781111.4
Vascular lesions affecting central nervous system2,6801,25546.8
Inflammatory diseases of central nervous system4537316.1
Other diseases of central nervous system1,3241259.4
Diseases of nerves and peripheral ganglia33441.2
Inflammatory diseases of eye500  
Other diseases and conditions of eye1,95750.3
Diseases of ear and mastoid process1,86460.3
Rheumatic fever426174.0
Chronic rheumatic heart disease4127317.7
Arteriosclerotic and degenerative heart disease3,02693030.7
Other diseases of heart1,85547925.8
Hypertensive disease1,63123314.3
Diseases of arteries56214525.8
Diseases of veins and other diseases of circulatory system3,811411.1
Acute upper respiratory infections2,08170.3
Influenza835111.3
Pneumonia4,3844089.3
Bronchitis1,9821175.9
Other diseases of respiratory system10,857960.9
Diseases of buccal cavity and oesophagus1,758120.7
Diseases of stomach and duodenum2,4821285.2
Appendicitis5,771180.3
Hernia of abdominal cavity3,908441.1
Other diseases of intestines and peritoneum3,7931774.7
Diseases of liver, gall-bladder, and pancreas3,0131284.2
Nephritis and nephrosis5519617.4
Other diseases of urinary system2,275803.5
Diseases of male genital organs2,095944.5
Diseases of breast, ovary, Fallopian tube, and parametrium1,07430.3
Diseases of uterus and other female genital organs5,16080.2
Complications of pregnancy2,537100.4
Abortion4,30980.2
Delivery1,47020.1
Complications of the puerperium46310.2
Infections of skin and cellular tissue2,82070.2
Other diseases of skin and subcutaneous tissue1,992150.8
Arthritis and rheumatism, except rheumatic fever1,871552.9
Osteomyelitis and other diseases of bone and joint2,605180.7
Other diseases of musculoskeletal system1,97760.3
Congenital malformations2,0021407.0
Birth injuries, asphyxia, and infections of newborn3307923.9
Other diseases peculiar to early infancy1,2371229.9
Symptoms, senility, and ill-defined conditions7,8011812.3
Fracture of skull, spine, and trunk1,9931336.7
Fracture of upper limb2,89070.2
Fracture of lower limb3,5901955.4
Dislocation without fracture56110.2
Sprains and strains of joints and adjacent muscles59320.3
Head injury (excluding skull fracture)3,986862.2
Internal injury of chest, abdomen, and pelvis2712910.7
Laceration and open wound of face, neck, and trunk95830.3
Laceration and open wound of upper limb2,36630.1
Laceration and open wound of lower limb1,14510.1
Laceration and open wounds of multiple location12310.8
Superficial injury290  
Contusion and crushing with intact skin surface1,00110.1
Effects of foreign body entering through orifice67140.6
Burns1,465402.7
Injuries to nerves and spinal cord without bone injury10843.7
Effects of poisons906121.3
Effects of weather, exposure and related conditions4724.3
Other and unspecified injuries and reactions680131.9
Special conditions and examinations without sickness2,205  
Admission for convalescent care, plastic treatment and fitting of prosthetic devices236  
      Totals155,8308,1405.2

Deaths in Public Hospitals.—The proportion of deaths in public hospitals to all deaths has increased over the last twenty-five years. Examination of the following table shows three well-defined stages.

YearDeaths in Public HospitalsTotal DeathsProportion of Deaths in Public Hospitals to Total Deaths

* Not available.

19263,83512,73830.1
19273,78212,64629.9
19283,93212,93530.4
19294,12513,22031.2
19303,97913,14530.3
19313,82213,06229.3
19323,88212,87530.2
19334,03612,86231.4
19344,38313,81031.7
19354,49713,66432.9
19364,95214,65833.8
19375,27415,21534.7
19385,95916,87435.3
19395,56815,93334.9
19405,82515,87536.7
19416,51117,04738.2
19427,07318,11739.0
19437,37217,12243.0
19447,47817,04943.9
19457,93917,68644.9
19467,71017,72043.5
1947*17,442*
19487,35217,28542.5
19497,59517,57843.2
19507,74218,08442.8
19518,16318,33643.3
19528,11918,89643.0
19537,92618,35443.2
19548,14018,87643.1
19558,41019,22543.7

Before 1935 the proportion of deaths in public hospitals to total deaths remained fairly constant between 29 per cent and 31 per cent. From 1935 to 1942 there was a gradual increase from 32 per cent to 39 per cent. At this stage a sharp upward trend can be seen, the 1943 figure increasing by 4 per cent to 43 per cent. A peak was reached two years later when nearly 45 per cent of all deaths occurred in public hospitals. Since then there has been a slight fall, and the proportion has levelled off to about 43 per cent.

Accident Cases: A summary is given below of accident cases treated as in-patients in public hospitals during 1954.

MaleFemaleBoth SexesProportion of All AccidentsAggregate Stay (Days)Average Stay (Days)Proportion of Aggregate Stay
Total transport4,8301,6206,45026.095,98114.924.5
  Railway108111190.52,79223.50.7
  Motor-vehicle traffic3,3191,0004,31917.467,05515.517.1
  Motor-vehicle non-traffic103271300.53,15224.20.8
  Other road vehicles1,1245621,6866.819,11711.34.9
  Water141131540.62,69217.50.7
  Aircraft357420.21,17328.00.3
Total non-transport11,2845,07416,35866.0266,35016.367.9
  Accidental poisoning3773016782.73,0064.40.8
  Accidental falls3,2992,7556,05424.5144,24023.836.8
  Other accidents7,6082,0189,62638.8119,10412.430.3
Complications due to non-therapeutic medical and surgical procedures3619550.25059.20.1
Therapeutic misadventure and late complications of therapeutic procedures5874921,0794.417,76716.54.5
Late effects of injury and poisoning190572471.06,19825.11.6
Suicide and self-inflicted injury1021402421.02,75611.40.7
Homicide and injury purposely inflicted by other persons292603521.42,3886.80.6
Injury resulting from operations of war7 7 33247.40.1
      Grand totals17,3287,46224,790100.0392,27715.8100.0

Most cases come under the heading “Total Non-transport—Other Accidents” which includes accidents caused by cutting and piercing instruments, machinery, falling objects, fire and hot objects, and so on. Of these most occurred in the home.

The second largest group is “Accidental Falls,” which has an aggregate stay greater than any other group. This is due to the long periods spent in hospital by elderly people who have sustained serious falls.

Motor vehicle traffic accidents comprise the third largest group, and have the third largest aggregate stay. It is interesting to note that there were nearly four times as many admissions to hospital and nearly four times as many beds occupied by people injured in non-transport accidents as there were for motor vehicle traffic accidents. Moreover, although roads and highways are often considered to be extremely hazardous places, there were twice as many people in hospital who had been injured at home.

Chapter 5. SECTION 5—PUBLIC HEALTH, HOSPITALS, ETC.

5 A—PUBLIC HEALTH

DEVELOPMENT OF PUBLIC HEALTH SERVICES IN NEW ZEALAND.—Before 1872, when the first Public Health Act became law, there was no public health service in New Zealand; a few local authorities appear to have exercised a crude form of negative sanitary government, but otherwise little seems to have been done.

In 1872 a Central Board of Health was set up in each province and power was given to each Central Board to set up Local Boards of Health as required. The abolition of the provinces in 1876 brought the disappearance of the Provincial Central Boards of Health and the establishment of one Central Board of Health for the whole colony.

The first period of public health administration in New Zealand came to an end in 1900. It is doubtful whether at any time during these twenty-eight years the administration of the 1872 Act and the later consolidating Act of 1876 was marked by much energy or thoroughness. Local Boards were hampered by lack of finance and by lack of zeal and knowledge. The powers of their Medical Officers (where appointed) were limited, and often the advice given by these officers was disregarded. The incidence of typhoid fever, a good index to the sanitary standards of a community, remained high throughout the whole of this period.

In 1900 the outbreak of bubonic plague in Australia stimulated the authorities to action. In that year a Bubonic Plague Prevention Act was passed which, later in the same year, was repealed and embodied in the Public Health Act 1900. Under this Act public health administration in New Zealand was put on a much more satisfactory basis. A separate Department of Public Health was set up under its own Minister; the country was divided into a number of health districts, and properly trained and qualified staff were appointed to administer the Act. In the years following the establishment of the Department steady progress was made in the building-up of a public health organization. Acts were passed dealing with the sale of food and drugs; the registration of medical practitioners, pharmacists, nurses and midwives, plumbers; the prevention of quackery; and the control of venereal disease. Sanatoria were established to help in the prevention and treatment of tuberculosis. Attention was given to problems of maternal welfare. Medical supervision of school children came into operation, at first under the control of the Department of Education, then in 1921 it was transferred to the Department of Health.

In 1909 a closer link between curative and preventive medicine was forged by merging the Hospitals and Charitable Aid Department into the Department of Public Health's organization.

During the years 1900 to 1920 there was an increasing public interest taken in health matters. As a result a number of voluntary health organizations were established with the objects of diffusing knowledge of infant welfare, first aid, and home nursing.

The 1918–19 influenza epidemic brought to light a number of defects in the public health organization, particularly the need for a simplification of existing health legislation and the need for a clear definition of the duties of local authorities, Hospital Boards, and the Department of Health. The result of this experience was the passing of the Health Act 1920 under which, with its amendments, the Department of Health operated until 1956.

Following the passing of this Act new health districts were created and the existing activities of the Department were expanded. Among the more important of the new activities of the Department were the establishment of a School Dental Service in 1920, the building-up of health education work, and, in 1937, the institution of the Medical Research Council. Registration was widened to include dentists, opticians, and masseurs.

After 1920 the interest of the general public in health matters continued to expand and was marked by the establishment of additional voluntary health organizations.

In 1956 a new Health Act, consolidating and amending the law relating to public health, was enacted. The Health Act 1956 repealed the 1920 Act and became effective on 1 January 1957.

Developments over the last decade included a more positive attack on tuberculosis marked by the passing of the Tuberculosis Act 1948, the establishment as a Government agency of the Dominion X-ray and Radium Laboratory existing at Christchurch, and the creation of the National Health Institute in Wellington. At the end of 1947 the Mental Hospitals Department ceased to be a separate Government Department, and became the Division of Mental Hygiene of the Department of Health. Occupational therapists and dietitians are further professional classes with legislation providing for national registration.

A more detailed outline of the development of public health services in New Zealand up to 1939 will be found in the annual report of the Department of Health for that year.

PRESENT ORGANIZATION OF PUBLIC HEALTH SERVICES.—Local Authorities: Part II of the Health Act 1956 lays definite obligations on local authorities in regard to public health. Each local authority must either appoint its own Sanitary Inspectors or contribute to the salary of an Inspector of the Department of Health. Each Inspector must hold a certificate of the Royal Sanitary Institute (or certain equivalents) before he can be appointed. A local authority's responsibility in health matters is wide. It must promote and conserve the public health within its district—a function which includes regular inspections of its district; abatement of nuisances as defined in the Health Act; provision of efficient refuse, nightsoil, and sanitary services; protection and purification of water supplies; closing and demolition of insanitary buildings; registration and regulation of cattle saleyards; and the enforcement of certain minimum sanitary requirements for residences and business premises. It may also make by-laws dealing with public health matters.

Department of Health: The chief administrative officer of the Department is the Director-General of Health. He is assisted by two Deputy Directors, and the work of the Department is divided among the following Divisions: Public Hygiene, Hospitals, Child Hygiene, Nursing, Clinical Services, Tuberculosis, Private and Maternity Hospitals, Dental Hygiene, and Physical Medicine. There is also the Division of Mental Hygiene, the activities of which are described in Section 5C. New Zealand as a whole is divided into fourteen health districts, each under the control of a Medical Officer of Health, a medical practitioner with special qualifications in sanitary science.

The Department is required to secure the preparation, effective carrying out, and co-ordination of measures necessary to promote public health. It administers all Acts relating to public health; it advises local authorities on public health; it must do whatever is possible to prevent, limit, or suppress disease; it promotes research into public health fields and the prevention and treatment of disease; it conducts health publicity and organizes and controls medical, dental, and nursing services paid from public funds. With the authority of the Minister, a Medical Officer of Health may exercise very wide powers in the event of an epidemic or serious outbreak of infectious disease, including the requisitioning of land and buildings, prohibition of public gatherings, and controlling the movements of cases and contacts of any infectious disease. Certain diseases, mostly infectious, but including some non-communicable, must be notified by medical practitioners. Provisions relating to quarantine are included in the Health Act; and extensive power is given to make regulations relating to the conservation and promotion of public health.

The Department's organization includes a Board of Health, which may in certain circumstances require local authorities to carry out prescribed sanitary works.

In addition to the Health Act 1956, the following Acts are administered by the Department:

  • Cemeteries Act 1908.

  • Dangerous Drugs Act 1927.

  • Dentists Act 1936.

  • Dietitians Act 1950.

  • Food and Drugs Act 1947.

  • Hospitals Act 1926.

  • King George the Fifth Memorial Children's Health Camps Act 1953.

  • Medical Act 1908.

  • Medical Advertisements Act 1942.

  • Medical Practitioners Act 1950.

  • Medical Research Council Act 1950.

  • Mental Health Act 1911.

  • Nurses and Midwives Act 1945.

  • Occupational Therapy Act 1949.

  • Opticians Act 1928.

  • Physiotherapy Act 1949.

  • Plumbers Registration Act 1953.

  • Poisons Act 1934.

  • Radioactive Substances Act 1949.

  • Social Hygiene Act 1917.

  • Social Security Act 1938 (Part III).

  • Tuberculosis Act 1948.

A detailed report of the activities of the Department of Health is given in the annual report of the Director-General of Health (parliamentary paper H–31).

The net expenditure of the Department (excluding capital expenditure from the Public Works Account) for the years ended 31 March 1955 and 1956 is given in the following table.

 1954–551955–56Increase

NOTE.—Minus sign (–) denotes a decrease.

 £££
General health services879,9401,015,257135,317
Health education (includes assessed administration charges)38,45548,88210,427
Medical research55,00055,000 
Departmental hospitals and institutions (other than mental hospitals)429,199463,29634,097
Homes for the aged124,728202,78878,060
Youth hostels32,17221,587–10,585
Bursaries42,79939,742–3,057
Plunket Society subsidies114,297119,7475,450
Hospital Board subsidies10,726,67610,704,314–22,362
Miscellaneous grants and subsidies13,23636,54923,313
Dental Hygiene Division621,740706,67684,936
Mental Hygiene Division2,478,1922,738,287260,095
Social Security Act: Medical, etc., benefits (includes assessed administration expenses)12,741,32815,678,6972,937,369
      Totals28,297,76231,830,8223,533,060

PUBLIC HEALTH ACTIVITIES.—This account covers measures relating to “preventive” medicine, as distinct from activities in “curative” medicine, which are dealt with elsewhere in this volume—see Section 5B (Hospitals) and Section 5C (Mental Hospitals). Information on medical, hospital, and other related benefits, which are administered by the Department of Health, is given in Section 7A (Social Security).

It is convenient to consider public health activities under headings which correspond generally to certain of the divisions within the Department of Health. These headings are—

  • Public Hygiene.

  • Tuberculosis.

  • Child Hygiene.

  • Dental Hygiene.

  • Maternal Welfare.

  • Physical Medicine.

  • Nursing.

PUBLIC HYGIENE.—The Health Act places responsibility for the maintenance of the public health largely on the Department, but local authorities have powers and duties to perform in a number of sanitary and inspection services. Each of the fourteen health districts in New Zealand is under the control of a Medical Officer whose duties include the administration of all enactments relating to Public Health and who can provide local governing bodies with expert advice in this field. Public Hygiene is concerned more particularly with the control of infectious disease, environmental hygiene, food and drugs, poisons and addiction-producing drugs, and burial and cremation.

Disease: The control of disease is based on a system of notification which has long been in force. The present list of notifiable diseases is as follows.

Notifiable Infectious Diseases:

  • Anthrax.

  • Cerebro-spinal fever (cerebrospinal meningitis).

  • Cholera.

  • Diphtheria.

  • Dysentery (amoebic and bacillary).

  • Encephalitis lethargica.

  • Enteric fever (typhoid fever, paratyphoid fever).

  • Erysipelas.

  • Fulminant influenza.

  • Infective hepatitis.

  • Leprosy.

  • Leptospiral infections.

  • Ophthalmia neonatorum.

  • Ornithosis (psittacosis).

  • Pemphigus neonatorum, impetigo, or pustular lesions of the skin of the newborn infant.

Other Notifiable Diseases:

  • Actinomycosis.

  • Anchylostomiasis (hookworm disease).

  • Beriberi.

  • Bilharziasis (endemic haematuria, Egyptian haematuria).

  • Chronic lead poisoning.

  • Compressed air illness arising from occupation.

  • Damage to eyesight arising from occupation.

  • Dengue.

  • Diseases of the respiratory system arising from occupation.

  • Eclampsia.

  • Food poisoning.

  • Plague (bubonic or pneumonic).

  • Pneumonic influenza.

  • Poliomyelitis.

  • Puerperal fever involving any form of septicaemia, sepsis, or sapraemia.

  • Relapsing fever.

  • Salmonella infections.

  • Septicaemia, sepsis, or sapraemia, in any form, following abortion or miscarriage.

  • Septicaemic influenza.

  • Smallpox (variola, including varioloid and alastrim).

  • Trachoma (granular conjunctivitis, granular ophthalmia, granular eyelids).

  • Typhus.

  • Undulant fever.

  • Yellow fever.

  • Hydatid disease.

  • Impaired hearing arising from occupation.

  • Malaria.

  • Phosphorus poisoning.

  • Poisoning from any insecticide, weedicide, fungicide, or animal poison met with at work.

  • Poisoning from any gas, fumigant, or refrigerant met with at work.

  • Poisoning from any solvent met with at work.

  • Poisoning from any metal or salt of any metal met with at work.

  • Skin diseases arising from occupation.

  • Tetanus.

All forms of tuberculosis are notifiable under the Tuberculosis Act 1948.

Venereal Diseases: Venereal diseases, while scheduled infectious diseases, are only notifiable if the patient discontinues treatment before cure is effected. The Venereal Diseases Regulations 1941 give adequate powers for the examination and treatment of persons suspected of suffering from the diseases. Free treatment has been established in the larger cities and treatment is available to seamen at the main ports in accordance with the Brussels Agreement. Restrictions are also placed on the nature of the employment such persons may undertake if they are suffering from the diseases in a communicable form.

In the administration of the regulations, every precaution is taken to ensure the avoidance of publicity.

Environmental Hygiene is concerned with the provision and proper maintenance of public water supplies and sewerage systems, the disposal of refuse, the condition of dwellinghouses, the control of offensive trades, and the hygiene of premises in which food is manufactured and sold, including eating-houses. These matters are primarily the responsibility of the local authorities, but the Department of Health acts in a general advisory capacity. In the case of many of the smaller local authorities the necessary inspections are made by departmental Inspectors on behalf of and by arrangement with the local authorities.

Food and Drugs: Legislation relating to the sale of food and drugs has been in force since 1908. The Act at present in force is the Food and Drugs Act 1947. It provides for the analysis, by analysts appointed under the Act, of any article of food or drink, or of any drug, which may be sold, offered for sale, or exposed for sale, and for the inspection of any place where there is any food or drug intended for sale. If any such article is proved to be unfit for human consumption heavy penalties may be inflicted on the person or persons responsible. Stringent measures are provided for the prevention of adulteration of food, drink, or drugs, and for the inspection of places where such goods are manufactured or packed. Control is also established over all utensils and appliances coming into contact with food and drugs.

Considerable progress has been made in implementing the purposes of the Act. All the common foodstuffs are standardized, and the labelling of packages is controlled by regulations, which are revised and added to as the necessity arises. Regular sampling of foods, particularly milk, is undertaken by departmental inspectors, and these samples are analysed in the Dominion Laboratory and its branch laboratories.

An important provision of the Act controls all kinds of publicity concerning any food or drug whereby a purchaser would possibly be deceived in regard to the properties of such food or drug, whether or not it is standardized by regulation. This matter is also covered by the Medical Advertisements Act 1942, which is referred to later.

The definition of “drug” includes medicines used externally or internally by man, anaesthetics, soaps, and disinfectants.

Any person may, on payment of the prescribed fee, together with the cost of the sample, require any authorized officer to purchase a sample of any food and submit it for analysis.

A new power contained in the 1947 Act enables any drug to be withheld from the public except when prescribed by a doctor, dentist, or veterinary surgeon.

Dangerous Drugs and Poisons: In order to carry out New Zealand's obligations under international conventions relating to habit-forming drugs, the Dangerous Drugs Act 1927 was enacted. The dealing in and the use of prepared opium are prohibited, and the production, manufacture, sale, and distribution of other dangerous drugs are restricted to persons licensed by the Director-General of Health. The importation of these drugs is controlled by the Customs Department. Provision is made to prevent illicit traffic in drugs of a habit-forming nature. Suitable regulations, the Dangerous Drugs Regulations 1951, are in force to give effect to the provisions of the Act, and are similar to the regulations in the United Kingdom and Australia.

The Poisons Act 1934 controls the proper labelling and packing of poisons, and in particular requires that all liquid poisons be packed in bottles of distinctive colour and shape. It is an offence to pack poisons in bottles that are ordinarily used for food, drink, or medicine. The Act also provides for the control of certain poisonous drugs by preventing their sale to the public except on the prescription of a doctor, a dentist, or a veterinary surgeon. The regulations under the Poisons Act follow the corresponding legislation in force in the United Kingdom. Power to introduce special safeguards for certain dangerous chemicals used in horticulture is contained in the Poisons Amendment Act 1952. Labels for poisons in this “Deadly Poison” group must bear statements of the precautions to be taken in using the poison, the symptoms of poisoning, and the remedial treatment, and must be approved by the Director-General of Health.

Hydatids Prevention: In January 1937 an amendment to the Dogs Registration Act 1908 came into force requiring local authorities to keep a supply of approved remedies for the care or prevention of disease in dogs caused by infection from the parasite echinococcus granulosus. At the time of registration every person registering a dog receives a sufficient amount of an approved remedy to enable him to treat the dog every three months until the ensuing date of registration, and also printed instructions for the use of the remedy. The approved remedy at present supplied is arecoline hydrobromide.

Medical Advertisements Act 1942: This Act, which repealed the Quackery Prevention Act 1908, came into force in January 1943. Under it the word “advertisement” is defined broadly, but does not include any advertisement or scientific matter distributed only to members of the medical and allied professions.

The Act sets up a Medical Advertisements Board, which is given power to control all medical advertisements. The Board may require the claims or statements made or implied in any medical advertisement to be substantiated to its satisfaction. Subsequent publication of such an advertisement is prohibited until the Board has notified its decision, and the veto on publication becomes permanent if the Board decides the claim or statement has not been proved. For the purpose of protecting the public the Board is given power to publish privileged statements concerning the subject matter of any medical advertisement.

Regulations issued under the Act limit the nature of the subject matter which may be included in any medical advertisement, and include a list of diseases concerning which no advertisement may make a claim to cure.

Cemeteries: The law governing burial and cremation in New Zealand is found in the Cemeteries Act 1908 and its amendments of 1912, 1922, 1926, 1950, and 1953. The registration by local authorities of funeral directors and mortuaries operated by them is provided for in the Health (Burial) Regulations 1946.

Widespread provision for cemeteries has been made in the past by the reservation of areas of Crown land for this purpose, but apart from this the Cemeteries Act makes it clear that local authorities are charged with ensuring that in their districts there exists adequate provision for the disposal of the dead.

In most rural areas and in the smaller centres the local authority either acts as trustee or else has been delegated the power of appointing individual trustees to carry out the provisions of the Act. For some cemeteries established on Crown reserves trustees are appointed by the Governor-General. In the larger centres local authorities have acquired land for the establishment of cemeteries.

The law provides that cremation may be carried out subject to the conditions that the deceased was not known to have left any written direction to the contrary and that the cremation is effected in conformity with the regulations. The latter impose stringent precautions against cremation being used for any criminal purpose. Crematoria have been established in Auckland, Wellington, Christchurch, Dunedin, Hastings, Wanganui, Nelson, and Palmerston North.

TUBERCULOSIS.—In the 1947–49 issue of the Year-Book (pp. 110–112) is given an account of the developments in the control of tuberculosis in this country, which led to New Zealand being one of the first countries to have special legislation dealing solely with this disease. In addition to giving the background to the Tuberculosis Act 1948, the account mentions the work of the Tuberculosis Division of the Department of Health and refers to the recommendations of the World Health Organization.

Briefly, the control of tuberculosis is based on—

  1. Accurate notification and registration of cases:

  2. Adequate supervision and reclassification of cases:

  3. Segregation of active infectious cases:

  4. Instruction and treatment of individual patients:

  5. Rehabilitation of convalescent and arrested cases:

  6. Supervision of the health of contacts:

  7. Mass radiography and ready availability of chest X-rays:

  8. B.C.G. vaccination in hospital staff, contacts, post-primary school children, and young adults.

The death rate has significantly decreased, and there is some evidence that the incidence of infection and morbidity is also falling.

The 1950 amendment to the Tuberculosis Act 1948 empowered Inspectors of Health, in addition to those classes of persons already specified, to make inspections of residences or places of work of persons known or suspected to be suffering from tuberculosis or to be a contact of such a sufferer. The principal Act was also amended by strengthening those powers relating to isolation, in certain cases, of persons likely to spread infection who refuse to undertake the necessary treatment.

CHILD HYGIENE.—The Division of Child Hygiene is responsible for the supervision of all measures for safeguarding the health of pre-school and school children, and also for ensuring a satisfactory environment at school. Priority is given to the health of the pre-school child.

The Division consists of a Director, who is a medical practitioner, with a staff of full-time and part-time medical officers. The Medical Officer of Health in charge of a health district is responsible, within the limits of the policy laid down and the instructions he receives, for the direction and control of all child hygiene work in his district.

An effort is being made to have every pre-school child examined twice during pre-school life. The examination of pre-school children is carried out by Medical Officers of the Division in Plunket Rooms in conjunction with Plunket nurses, and at kindergartens, day nurseries, and other pre-school organizations assisted by public health nurses.

The Division aims at giving each primary school child three physical examinations during primary school life. Each infant not recorded as having been examined at a pre-school clinic by a medical officer within the preceding calendar year will be examined by the public health nurse, who will select those children who require examination by the medical officer. During the remainder of primary school life two other examinations are carried out by the public health nurse. These are in Standard 2 and Form II. As in the case of new entrants not seen by a medical officer at a preschool clinic, the nurse refers any departure from normal for a special examination by the medical officer. Special medical examinations by the medical officer, are also made whenever parents, teachers, the public health nurse, or the medical officer considers them to be necessary. The children found to be suffering from defects are kept under observation until the necessary treatment is obtained from the private practitioner or the hospital.

Mentally backward and feeble-minded children are given special attention, arrangements being made in conjunction with the Department of Education for their entry into a special school or other institution as may be necessary.

A start has been made on the more, detailed medical examination of post-primary-school children. Physically handicapped children enrolled with the Correspondence School are also thoroughly examined.

Throughout its work the Division tries to secure the interest and co-operation of parents, because only in this way can the work be made effective. With this object in view parents are invited to be present at the medical examination of their children, an opportunity of which the majority take advantage.

Prevention of Disease: The activities of the Division are not confined to the routine medical examination of school children. In addition, certain positive measures are taken to prevent disease and correct physical defects. The more important of these measures are—

  1. Poliomyelitis Vaccination.—In 1956 children in selected age groups were, for the first time, vaccinated against this disease.

  2. Diphtheria Immunization.—Protection against diphtheria is a routine procedure, and protection against whooping-cough is generally given at the same time by the use of a combined vaccine. It is preferable that immunization be done by the family doctor, and the course of injections should be commenced as soon as possible after the third month of infant life. Arrangements can be made for mothers who are unable to have the immunization done privately to attend with the infant at a departmental clinic. Where necessary in country areas the public health nurse will visit the home to immunize the child. Booster doses are given after the child's fourth birthday. If this booster dose has been missed it is given as soon as possible after the child commences school.

  3. Typhoid Inoculations.—Maori children in the North Island are inoculated annually against the typhoid group of diseases.

  4. Goitre Control.—The use of iodized salt and iodine-rich foods are advocated by the officers of the Division.

  5. The Milk-in-schools Scheme aims at maintenance of nutrition.

  6. Health Camps are established to which children are admitted for convalescence or correction of malnutrition.

Health camps cater for delicate and undernourished children in the 5–12 years age group. The service selects the children to attend the camps (which are maintained by an independent organization—the King George the Fifth Memorial Children's Health Camps Federation) and, as necessary, re-examines them before admission and after discharge. In the camps the children live under an orderly and disciplined routine, they eat plain, well-cooked food, and they get plenty of rest and sunshine. In practically all cases a child who attends a health camp benefits both physically and mentally.

For children with emotional or psychological disturbances, behaviour problems, and incipient delinquency, Child Health Clinics have been established in the larger centres. These are staffed by a team consisting of a pediatrician, psychiatrist, psychologist, play therapist, and social worker. Children are referred to these clinics through the family doctor if there is one.

DENTAL HYGIENE.—The Division of Dental Hygiene, which was instituted in 1921, is concerned with the administration of the various dental activities of the Government, and in particular—(a) The national dental service, which comprises (i) the School Dental Service and (ii) the Adolescent Dental Service; (b) the Social Security (Dental Benefits) Regulations; (c) the Dentists Act 1936 and regulations; (d) dental bursaries; and (e) dental research.

The Division of Dental Hygiene has at its head a Director (a dental surgeon) who is responsible to the Minister of Health, through the Director-General of Health. There are two Assistant Directors. A Senior Executive Officer is responsible for the secretarial services. Also attached to the Director's staff is a Dental Research Officer, who is seconded from the New Zealand Medical Research Council.

The service is organized in twelve units, each of which is controlled by a senior dental officer, who is directly responsible to the Director. These officers are: the Principals of the Schools for Dental Nurses at Auckland, Wellington, and Christchurch, and the Principal Dental Officers in charge of the nine dental districts into which New Zealand is divided.

The School Dental Service is staffed by trained school dental nurses and the Adolescent Service by dental surgeons.

The School Dental Service.—Briefly, the functions of the Service are to improve the standard of dental health of school children (and of pre-school children) by affording them regular and systematic treatment at six-monthly intervals, commencing from the primer classes (or earlier where possible), and continuing through to the highest class of the primary (or intermediate) school. Thereafter they are eligible for enrolment in the Adolescent Service. At present an unprecedented increase in the school population is being experienced as a result of the unusually high birth rate of late years. Until the number of dental nurses can be increased proportionately, children are being transferred to the “adolescent” service at an earlier stage, in order to enable the dental nurses to maintain six-monthly treatment for the younger children. This is a temporary phase, pending the training of more dental nurses.

The other main function of the School Dental Service is health education—the instruction of the children and of the general public in the principles of oral hygiene and the prevention of dental disease. For this purpose there is within the Division an organization for health education, to which further reference is made under a later heading.

Two years are devoted to the theoretical and practical training of school dental nurses. Between three and four hundred student dental nurses are in training at the one time. The course is carefully graduated, and is in the hands of a staff of dental surgeons and dental tutor sisters. Private dental practitioners are represented on the examining board for the final examination. During the period of training, student dental nurses reside in hostels owned and controlled by the Department of Health.

On completing her training, a school dental nurse is posted to a school dental clinic, where she becomes responsible to the Principal Dental Officer of her district for the dental treatment of a group of approximately five hundred patients. She is visited at intervals by the Principal Dental Officer or one of his staff, who discusses current problems, and assists the dental nurse to maintain a high standard in the conduct of her work.

Dental treatment comprises fillings in both temporary teeth and permanent teeth, cleaning and scaling of the teeth, extractions where necessary, and sodium fluoride treatment. There were 284,284 children under regular treatment by the school dental nurses during the year 1955–56. The aim of the Service is to promote dental health by conserving the natural teeth and preventing dental decay. Only a small number of teeth have to be extracted as unsaveable, about six for every hundred saved by suitable treatment.

Orthodontic treatment is carried out principally in Wellington, where an orthodontic unit is established at the Children's Dental Clinic, which is associated with the School for Dental Nurses. Dental officers in field clinics undertake a limited amount of orthodontic treatment of a simple nature.

Adolescent Dental Service.—The original aim was to provide dental service for adolescents through the medium of a full-time salaried service, but while the present shortage of dental surgeons continues, progress towards this objective will be slow. In addition to the service provided by a number of clinics controlled by the Department of Health, dental care for adolescents is in the meantime being provided by private practitioners as a dental benefit under the Social Security Act, the practitioners being reimbursed on a fee-for-service basis.

Eligibility for dental treatment as an adolescent is contingent upon a person having undergone regular dental care up to within three months of the time of application, either at a school dental clinic or from a private dental practitioner.

Treatment of adolescents is in effect a continuation of the treatment provided by the School Dental Service, and is continued until a patient has reached his nineteenth birthday, or such earlier age as the Minister may from time to time appoint. For the present the maximum age has been fixed as the sixteenth birthday.

Treatment is essentially of a nature designed to conserve the natural teeth. Dental supervision of adolescents is on a basis of examination and treatment at six-monthly intervals. There is free choice of dentists, and dentists have the right to decline patients.

The treatment (other than treatment requiring special approval) which may be provided as dental benefits, and the fees payable, are indicated in the 1955 Schedule to the Social Security (Dental Benefits) Regulations 1946. Dentists are free to exercise their professional judgment, and, if in their opinion a case demands a form of treatment that is not provided for in the schedule, there is provision, with certain limitations, for such treatment to be approved as a charge on the Social Security Fund.

At 31 March 1956 the number of adolescents enrolled for dental benefits, and the amount paid for dental benefits for the year 1955–56, were—

 NumberAmount Paid, 1955–56
 £
For general dental benefits172,379799,320
For special dental benefits1,074

Dental Health Education.—The dental health education activities of the Department include the production of posters, pamphlets, sound films, film strips, radio talks, newspaper advertisements, and all other types of advertising media. In the departmental health exhibit is a dental section which is staffed when on tour by a Dental Tutor Sister (Health Education) and by school dental nurses from the locality in which the exhibit is on view.

Officers of the Service are kept in touch with health education and other matters by means of the School Dental Service Gazette, which is published bi-monthly.

Dental officers and school dental nurses are expected to impress on their patients the necessity of maintaining a high standard of oral health. To further this end every opportunity is taken of distributing health educational literature, displaying posters, and devoting reasonable clinical time to instruction in oral hygiene. Opportunities to address meetings of various kinds are availed of wherever possible.

Dental Research.—By arrangement with the New Zealand Medical Research Council, a Dental Research Officer is attached to the Service. Primarily this officer is engaged in a long-term programme of research on dental problems, but his services are also available to assist the dental administration in carrying out short-term research projects when information is required for a specific purpose.

In addition to this work, the investigation of dental materials and methods of using them goes on constantly, and provides useful data for the selection and use of materials for the Service.

Dental Bursaries.—The Government grants between twenty and thirty bursaries each year to selected students to assist them to qualify as dentists. The bursaries are of a value of £80 per annum, plus free tuition the value of which is £50, and are tenable for five years, subject to satisfactory reports from the University authorities. An additional allowance of £50 per annum is payable to students who have to live away from home in order to pursue their studies. Students who are granted bursaries must enter into an agreement to pursue their studies diligently and, on graduating, to enter the service of the Crown or of a Hospital Board appointed by the Crown for a specified period not exceeding three years.

MATERNAL WELFARE.—Maternal and infant welfare work in New Zealand is based on cooperation between the Department of Health, Hospital Boards, the medical and nursing professions, and the Plunket Society.

The Director who deals with maternal welfare is a medical practitioner, and the division of the Department is styled “Private and Maternity Hospitals.” He supervises the inspection of maternity hospitals, the techniques in use in these hospitals, and, generally, the promotion of all aspects of maternal welfare.

The Medical Officers of Health, through their staff of Nurse Inspectors, exercise a general supervision over the work of midwives and closely control the private hospitals throughout the country. All private hospitals are required to be licensed under the Hospitals Act 1926, and the Department of Health sees that standards regarding buildings, equipment, and staff are observed.

Except in an emergency, no persons other than registered medical practitioners and registered midwives are allowed to conduct confinements, and only registered midwives and registered maternity nurses are permitted to nurse women in childbirth. Approximately 97 per cent of all confinements take place in the various types of maternity hospital—a maternity annex to a public hospital, a State (St. Helens) Hospital, or a private maternity hospital.

Important contributions to maternal welfare are made by the Division of Nursing, which includes in its duties the supervision of the training of midwives and maternity nurses, and by the Hospitals Division, which includes in its duties the approval of plans for accommodation to be provided by the various types of maternity hospital. The work of these two Divisions is surveyed elsewhere in this Section.

OCCUPATIONAL HEALTH.—The Factories Act 1946, section 78, gives to Medical Officers of Health or other authorized officers of the Department of Health the same powers and authorities as Inspectors of Factories with regard to the health and welfare sections of the Act. The Act gives the officers of the Department of Health no legal standing in relation to the provisions for safety, although the lost time caused by accidents demands more preventive work in which medical men and nurses with an industrial training could play a part.

New Zealand industry is of recent growth and contained in small units and in many of the small factories, on account of the high per caput cost, amenities tend to be of a lower standard than in the average large factory. A substantial proportion of small factories, in addition to a number of the larger ones, fail to conform to the standards of the Factories Act 1946, and the first objective of the Occupational Health Service, therefore, is to assist the Department of Labour to establish the minimum standards required by the Act. In this the Medical Officers work in close co-operation with the Inspectors of the Department of Labour.

In order to co-ordinate the work of the Departments of Health and Labour in the field of occupational health and safety education, a Joint Occupational Health and Safety Education Committee has been set up with representatives of the two Departments.

Since 1947 an industrial nursing course has been incorporated into the syllabus of the Nurses' Post-graduate Training School. Nurses completing this course have been appointed to the Department of Health, attached to the staff of the Medical Officer of Health or to Government Departments such as the Railways and Post and Telegraph. These nurses have had special training in blood examination of workers at risk from lead absorption, and their duties include the monthly blood examination of such workers as required under the Lead Process Regulations. Other groups of workers at special risk from health hazards, such, for example, as those in electro-plating shops, are included under the regular supervision of the nurses, who are also available for any special work that may be required in looking after juveniles, pregnant women, or physically handicapped workers.

In addition, a number of industrial nurses are employed by the larger private firms. A Nurse Inspector appointed by the Department of Health regularly visits these nurses in order to advise them in their work and to co-ordinate and broaden the conception of a health service in industry. Part of this officer's time is occupied as tutor at the Nurses' Post-graduate School in Wellington.

There is also the more confined objective of guarding the health of those workers who are exposed to special health risks, such as those handling lead salts, or liable to breathe dangerous fumes, or those who are in contact with skin irritants. Inevitably there is a great deal of ignorance and lack of consciousness on the part of management and workers of the dangers and hazards associated with their work. Education on these matters, together with publicity and propaganda, will do much to raise the level of understanding.

In order to obtain a clearer picture of the effects of various occupations on the health of workers, a scheme of notification of conditions arising from employment was introduced in 1953. The Notifiable Diseases Notice 1953 extended the list of notifiable diseases other than infectious diseases by conditions set out in the schedule to the notice under eight general headings. As a result of information received from general practitioners under this scheme, recommendations can be made for the improvement of working conditions.

The Department is concerned with the health of all workers, not merely those covered by the Factories Act, and from time to time surveys of working conditions are undertaken in specific industries. As a result of inspections and reports on conditions of work of waterside workers at. Wellington, Lyttelton, and Auckland, industrial health centres have been set up at each of these ports, staffed by the Department's industrial nurses and under the supervision of the Medical Officer for the area. An industrial health centre has been established in the Woolston area of Christchurch and another at the Foreshore, Dunedin, to serve industries in the neighbourhood. These are situated in premises made available by one of the larger firms in each area. The first ad hoc industrial health centre has been built in the Penrose area of Auckland, the cost of construction being borne by the Workers' Compensation Board. Contributions towards maintenance costs are made by the Penrose Industrial Progress Association, and equipment and nursing staff provided by the Department of Health.

RADIATION PROTECTION.—The rapid development of medical physics in general, and of radiological physics in particular, is mainly due to the increasing use of ionizing radiations for the treatment of malignant disease.

The provision of a centralized radiophysical advisory service for New Zealand dates back to 1933, when the New Zealand Branch of the British Empire Cancer Campaign Society decided to provide the various cancer treatment centres in this country with competent assistance in their dealings with the physical aspects of radiation therapy. By that time it had become apparent that further improvements in the results of radiation therapy could only come from systematic improvements of the therapeutic technique, improvements which require the closest co-operation of radiotherapists with physicists who specialize in radiological problems.

Under an agreement made in 1939 among the Department of Health, the New Zealand Branch of the British Empire Cancer Campaign Society, and the various Hospital Boards concerned, two calibration and inspection visits were paid each year by the staff of the Christchurch Laboratory to every X-ray therapy plant in New Zealand, requiring thousands of miles of travelling and several months of field work away from the base Laboratory each year. In addition, this part of the Laboratory's service supplied information requested by radiologists and other medical practitioners, during the calibration visits, and by correspondence.

The hazards arising from the high voltages employed were well known, but it was not until 1944, when the Electrical Wiring (X-ray) Regulations were drawn up, that these hazards became subject to specific control.

While this legislation for the protection from electrical hazard was relatively quickly passed, a period of five years elapsed before the legislation for protection from radiation hazards was actually brought down. During this time, the draft regulations decided upon at a 1943 meeting of radiologists called by the Department of Health were amended by further suggestions made by individual radiologists and by resolutions passed at the annual meetings of the Australian and New Zealand Association of Radiologists. When finally the Radioactive Substances Act 1949 was introduced, after the hearing of submissions by the Health Committee of the House of Representatives, it was passed through the House as a non-party measure.

The Radioactive Substances Act 1949 is an Act to make provision for the control of radioactive substances and irradiating apparatus for the purpose of protecting the health of persons likely to be exposed to harmful radiation. Its four main points are—

  1. It sets up a Radiological Advisory Council;

  2. It controls the manufacture of radioactive substances, and the sale and use of radioactive substances and irradiating apparatus;

  3. It provides for the issuing of licences to users of radioactive substances and irradiating apparatus; and

  4. It provides for regulations to be issued under the Act.

The functions of the Council are to advise and make recommendations to the Minister in respect of—

  1. Applications for licences under this Act:

  2. The exercise of any powers vested in the Minister by this Act:

  3. Any regulations made or proposed to be made under this Act:

  4. Any other matter to which this Act relates and which is referred to the Council by the Minister.

The seven members of the Council consist of the Director-General of Health (or his Deputy) as Chairman, three medical practitioners (two of whom must be radiologists or radiotherapists), a person nominated by the University of New Zealand, a representative of the Department of Scientific and Industrial Research, and a physicist. The Council has power to appoint advisory or technical committees of persons who need not necessarily be members of the Council. Irradiating apparatus or radioactive substances may only be used by persons licensed for this work, or under their supervision or instruction. In granting licences for the use of irradiating apparatus the Council is guided by the recommendations of an expert committee, which considers the experience and qualifications of the applicant. When licences for the use of radioactive substances are considered, reports on the facilities and the equipment for handling these substances have to be submitted by the Dominion X-ray and Radium Laboratory before the applications are considered. Since the Director of the Laboratory is a member of the Council, and since the Executive Officer of the Laboratory is Secretary to the Council, a close co-operation between the Council and the Laboratory is ensured.

One of the first duties of the newly formed Council was the consideration of drafts of Radiation Protection Regulations, and of regulations governing the safe transport of radioactive substances. Copies of the drafts were referred by the Minister of Health to the New Zealand Branch of the College of Radiologists and to the British Medical Association. Their submissions were taken into account before the regulations were approved in their final form.

On 1 April 1951 the Department of Health, under an agreement with the New Zealand Branch of the British Empire Cancer Campaign Society, took over the administration and control of all activities of the Society's physical laboratory at Christchurch, except such research on physical, chemical, and biological effects of radiation as the Society elected to undertake by its own staff of research workers associated with the Laboratory. Later in the same year, regulations under the Radioactive Substances Act were issued.

The Radiation Protection Regulations 1951 have specific requirements relating to the health of those persons whose work is likely to expose them to harmful radiations. The regulations cover such items as ventilation of rooms in which these radiations are produced, quantitative limitations on the exposure of persons to radiation, and generally those precautions and protective devices which will all contribute to safe practice. The same regulations require full records to be kept of various uses of radiations, in order that long-term effects on a person's health may later be traced. Separate regulations, the Transport of Radioactive Substances Regulations 1951, have been made to deal with all aspects of the packing, shielding, labelling, and transport of radioactive substances, and, in addition, the Department has issued to all radiation workers, to supplement the regulations, a booklet entitled Recommendations for Protection from Radiation Hazards. The departmental administration of licensing and of inspection services arising from this legislation, and generally of all problems associated with the use of irradiating apparatus and radioactive substances, is centred in the Dominion X-ray and Radium Laboratory at Christchurch.

RADIOGRAPHY STATISTICS FOR YEAR 1955–56.—During the year a total of 1,111 millicuries of radon was despatched from the Laboratory in 1,114 containers. There were 68 orders of which 61 were from hospitals, 5 from private medical practitioners, and 2 from research workers.

The number of persons holding licences to use irradiating apparatus or radioactive substances on 31 March 1956 is given below.

Number of Licences on 31 March 1955New Licences Issued Between 1 April 1955 and 31 March 1956Number of Licences on 31 March 1956
Purpose for Which Irradiating Apparatus is to be Used
All purposes8 8
Therapy628
Superficial therapy24125
Therapy and diagnosis1 1
Diagnosis17021191
Diagnosis and radiography excluding fluoroscopy63 63
Diagnosis X-ray for chiropody3 3
Diagnosis and dental diagnosis9 9
Dental diagnosis52642568
Diagnosis and veterinary diagnosis213
Veterinary diagnosis16420
Veterinary research1 1
Shoefitting58361
Experimental, testing, and industrial13215
Demonstration4 4
Electron microscopy1 1
Experimental, testing, and demonstration2 2
Testing and demonstration617
Diagnosis, demonstration, and experimental1 1
Testing, experimental, research, and diagnosis1 1
Experimental426
Experimental and research1 1
Industrial and testing5 5
Quartz crystal testing314
Industrial radiography314
Experimental and testing1 1
Research1 1
Educational and demonstration1 1
      Subtotals934811,015
Purposes for Which Radioactive Substances are to be Used
All purposes3 3
Industrial radiography4610
Therapy28129
Therapy and research1 1
Therapy, research, and testing2 2
Research17118
Research and teaching213
Industrial and research314
Scientific research1 1
Testing and experimental112
Research, testing, and experimental2 2
Luminizing1 1
Research, experimental, and industrial1 1
Research and testing3 3
Industrial and testing325
Teaching and demonstration30125155
      Subtotals102138240
      Totals1,0362191,255

The number of X-ray plants in New Zealand on 31 March 1956 registered under the Electrical Wiring (X-ray) Regulations 1944 is now shown.

Purpose Tor Which X-ray Plants are UsedOwnershipTotal
PublicPrivate
Radiographic or fluoroscopic19290282
Radiographic, fluoroscopic, and therapeutic 44
Therapeutic232649
Dental46487533
Chiropractic and naturopathic (diagnostic) 3737
Chiropodist 33
Shoefitting 7575
Veterinary 1919
Industrial5 5
Miscellaneous purposes (educational, research, testing, demonstration, etc.)16 16
      Totals2827411,023

An analysis of the exposures received by the 18,735 protection test films worn during the year ended 31 March 1956 follows.

Per Cent of Maximum Permissible Weekly ExposureFilms Used by
X-ray WorkersRadium Workers
Number of FilmsPer Cent of TotalNumber of FilmsPer Cent of Total
0–513,52383.81,74267.3
6–101,5699.739815.4
11–207214.42349.0
21–331791.1803.1
34–66900.6732.8
67–100270.2230.9
Over 100370.2391.5
      Totals16,146100.02,589100.0

Amounts of radioactive substances ordered during the year ended 31 March 1956, number of orders, and estimated stock in New Zealand on 31 March 1956 are as follows.

Radioactive Substances (Half-life)Half-life d = Days y = YearsNumber of OrdersQuantity OrderedEstimated Stock

* One source not yet received.

† To nearest mc.

 MillicuriesMillicuries
Gold 1982.7 d5900Short half-lives
Iodine 1318.1 d652,777.1
Phosphorus 3214.3 d21348
Chromium 5127 d210
Iron 5945.1 d10.02
Iridium 19274.4 d212,0003,000
Sulphur 3587.1 d  0.3
Calcium 45152 d  0.25
Cerium 144282 d  5.0
Ruthenium 1061 y140 
Caesium 1342.3 y154.0
Antimony 1252.7 y  4.5
Cobalt 605.3 y11.2700
Radium 2286.7 y  4.3
Tritium 312.5 y1450440*
Strontium 9019.9 y487.580
Caesium 13733 y212,0008,000*
Radium 2261,622 y  3,448
Carbon 145,500 y43.34.61
Totals 11028,62215,691

PHYSICAL MEDICINE.—The Division of Physical Medicine is concerned with disabling conditions such as rheumatic diseases, cerebral palsy, and other disorders of the locomotor system, and is responsible for the general organization and maintenance of physiotherapy and occupational therapy throughout the country. The Director is a medical practitioner with special training and experience in these fields.

A centre for the treatment of rheumatic diseases is established at the Queen Elizabeth Hospital, Rotorua. This hospital has approximately one hundred beds set aside for the treatment of rheumatic diseases, and active research is being carried out there in an effort to elicit information as to the causation and treatment of these diseases. A large hydrotherapy establishment, known as the Main Bath House, makes full use of the thermal waters of Rotorua, and also acts as the Out-patient Department of the Queen Elizabeth Hospital, with which it is administratively combined.

A cerebral palsy unit is also situated at the hospital, and provides residential accommodation for twenty-five children. At this unit the activity of a team of physiotherapists, occupational therapists, teachers, and speech therapists are co-ordinated by the supervisor of the unit working under a physician. In addition to treatment, continuous research is being carried out on the problems connected with cerebral palsy, and post-graduate courses are given to physiotherapists, occupational therapists, teachers, and speech therapists. Cerebral palsy day schools have been established in Auckland, Wellington, Christchurch, Dunedin, and Invercargill. These schools are administered by the relative Education Boards under the Department of Education, but close liaison exists between these schools and the Division and the Rotorua Unit. A cerebral palsy visiting physiotherapy service has been established in the Canterbury district.

The Division is closely associated with the Physiotherapy and Occupational Therapy Boards, and the Divisional Director deputises for the Director-General of Health as Chairman of these Boards.

The selection of candidates for training at the Physiotherapy School, Dunedin, is carried out by the Principal of the School in conjunction with the Departmental Inspector of Physiotherapy, who also interviews applicants for bursaries which are awarded to suitable candidates. Such bursaries carry with them conditions that on qualification the bursar will work in a public hospital for two years. The training school for occupational therapists is situated at Auckland Mental Hospital and is administered by the Mental Hospitals Division. Trainees are paid a salary while training, and have to agree to work in a departmental or public hospital for two years after qualification.

The division is actively concerned in the problem of the rehabilitation of the physically disabled, the organization of which is at present being developed by an inter-departmental committee.

NURSING DIVISION.—Training of nurses commenced in New Zealand in 1886, and registration of nurses was introduced in 1901 and of midwives in 1904. In 1921 the Division of Nursing was set up in the Department of Health and the Nurse Inspector of Hospitals was appointed Director of the Division. In 1928 a post graduate course for the purpose of providing nurses for executive, teaching, and public health positions was established. To-day a block and study day system of organization of theoretical and practical work operates in nearly all nursing schools, and any reasonable experimentation by the schools is encouraged.

The training of all nurses and midwives is governed by the Nurses and Midwives Act 1945. This Act is administered by the Nurses and Midwives Board, which comprises mainly nurse members who are in active practice, and is independent of political and departmental control, although the Director-General of Health is the Chairman, and the Director, Division of Nursing, is the Registrar. The current regulations under the Act are the Nurses and Midwives Regulations 1947 and amendments thereto.

The Division is responsible for the maintenance of an adequate and efficient nursing service and the supervision of conditions, including health for nurses and other staff and recruitment of nurses.

The Nurses and Midwives Board delegates to the Division the supervision of hospitals and nursing schools on all aspects of training, and also the examination and registration of nurses. The Nurse Supervisor who makes a visit to a hospital carries out the dual purpose, therefore, of making reports both to the Director-General of Health through the Nursing Division, and to the Nurses and Midwives Board. This integration of work is a feature which has preserved good relationships in the hospitals, and has enabled the practical and theoretical training of nurses as well as their conditions to be maintained at a uniformly high standard.

The control of most of the public health nursing services and of district (home) nursing is exercised from the Division, although the specialized infant welfare and mothercraft work of the Plunket Society is under the control of that organization; close co-operation with that Society is, however, maintained.

Another part of the work is the selection and placement of nurses in the various groups of Pacific islands for which the New Zealand Government is responsible. These nurses for hospital and public health work are seconded from the New Zealand service for periods of two years, pension rights being continuous. The supervision of this service is exercised by regular visits to the islands. Close liaison exists between the nursing services organized for the Armed Services and the Division, while any organization for emergency nursing is carried out by the Division.

The organization of refresher courses for all groups is another responsibility, while the postgraduate course is a special feature of its work. As already stated this was organized in 1928 and is controlled by a committee on which the Department of Health, the University, and Hospital Boards Association, are represented. Courses are followed in Hospital and Nursing School Administration, Public Health Nursing, Medical Social Work, Industrial Nursing, and Teaching and Administration in Obstetric Nursing. A new course in Pediatric Nursing for Sisters in Charge of Children's Wards is to be instituted in 1957.

Up to sixty students take the nine months' post-graduate course annually, and with few exceptions they are specially selected and attend on bursaries from the Department of Health, Hospital Boards, and voluntary organizations, while during recent years there has been an increasing number from overseas countries. The school has its own building, library, classrooms, offices, and hostel. The full-time instructors at the school conduct the refresher courses during the school recess, and also carry out supervision of hospitals, nursing schools, and public health work, thus keeping up to date with the practical needs of the field.

The New Zealand Nurses' Association is an active body having relationships with the Nursing Division; it is represented by four members on the Nurses and Midwives Board and by two on the Nurses' Salaries Board, while at the annual conference and more frequent executive meetings various matters are brought to the notice of the authorities concerned.

New Zealand with its small population, good climate, and good standard of living, should have a comparatively healthy people, but has its particular health and social needs. The administration on the nursing side has expanded to meet these and the increasing opportunities for service in the fields of human welfare.

MEDICAL RESEARCH COUNCIL.—Under the Medical Research Council Act 1950 a Medical Research Council was set up with the following functions:

  1. To foster medical research and to prepare and publish such reports on these matters as may in its opinion be necessary or of value to teachers or other persons:

  2. To furnish information, advice, and assistance to persons and organizations concerned with medical research.

This Council took over and developed the work of a departmental committee, bearing the same name, which had been in existence since 1938. At the end of 1956 research in the following fields was in progress:

  1. Chest diseases.

  2. Clinical medicine.

  3. Dentistry.

  4. Endocrinology.

  5. Hydatids.

  6. Island Territories research.

  7. Microbiology.

  8. Neuropathology and neurophysiology.

  9. Nutrition.

  10. Obstetrics.

  11. Surgery.

  12. Toxicology.

The Council maintains liaison with the research work being carried out by the Travis Trust Laboratory for tuberculosis research and the New Zealand Branch of the British Empire Cancer Campaign Society.

REGISTRATION COUNCILS AND BOARDS.—Medical Practitioners: The Medical Council of New Zealand, constituted under the Medical Practitioners Act 1950, consists of the Director-General of Health, the Dean of the Faculty of Medicine in the University of Otago, and five other registered medical practitioners. One of the five members is appointed on the recommendation of the New Zealand Branch of the British Medical Association.

The Council deals with all applications for registration under the Act, which prescribes that every person shall be entitled to conditional registration who satisfies the Council that he is a graduate in medicine and surgery of the University of New Zealand; or registered on the register kept in accordance with the provisions of the Acts regulating the registration of medical practitioners in the United Kingdom or the Republic of Ireland; or the holder, after a course of not less than six years, of a foreign diploma approved by the Council. The Council may, however, refuse to approve any diploma (even in the case of persons registered in the United Kingdom or the Republic of Ireland) unless it appears that New Zealand graduates are, without further examination, entitled to registration in the country granting the diploma. It may also require the holder of a foreign diploma to attend a course and pass an examination in medicine and surgery.

The fee for registration is £5, which is payable on deposit of evidence of qualifications. An applicant who is refused registration has the right of appeal to the Supreme Court. Each year every registered medical practitioner who is not specially exempted under the Act and who is actually practising medicine in New Zealand is required to obtain an annual practising certificate, the fee payable being £1.

The Medical Council is vested with certain disciplinary powers. Right of appeal to the Supreme Court is provided. The Supreme Court, on the motion of the Medical Council, may order the removal of a name from the register in cases where a medical practitioner is guilty of grave impropriety or infamous conduct in a professional respect, or is convicted of an indictable offence punishable by imprisonment with hard labour for a term of two years or upwards. The Medical Council is also given power to hear appeals against the decisions of the Medical Practitioners Disciplinary Committee also set up under the Medical Practitioners Act 1950. Any person involved who feels aggrieved by the decision of the Medical Council on an appeal from the Disciplinary Committee may appeal to the Supreme Court against the Council's decision.

The Medical Council was given power to institute an internship scheme in New Zealand. This became effective from 1 December 1952.

The number of medical practitioners on the register at 30 June 1956 was 3,107.

Dentists: The Dentists Act 1936 provides for the constitution of a Dental Council, the functions of which are to examine and approve of the qualifications of applicants desiring registration as dentists and to exercise disciplinary control over registered dentists.

The Dentists Register is kept by the Director-General of Health, to whom applications for registration are addressed. The applications are submitted by the Director-General of Health to the Dental Council for consideration and direction regarding acceptance for registration. The Director-General of Health may issue to any person who has applied for registration as a dentist a provisional practising certificate which entitles the person to practise dentistry pending consideration of his application by the Dental Council.

Any adult person is entitled to be registered as a dentist who satisfies the Dental Council that he is the holder of a qualification in dentistry obtained from the University of New Zealand; or that he is the holder of a qualification approved by the Dental Council and obtained from a University or other institution in the United Kingdom or in some other part of the British Commonwealth (in the latter case, however, the Council may require a further examination); or is the holder of an approved foreign qualification, but the Council may refuse to approve any foreign qualification if New Zealand graduates in dentistry are not accepted for registration without further examination in the country concerned, or the Council may require the applicant to pass a further examination.

The fee for initial registration is £5. If a provisional practising certificate is required, there is a further fee of 5s. A fee of £1 per annum is payable for an annual practising certificate.

The number of private dental practitioners holding annual practising certificates at 31 March 1956 was 767.

Nurses and Midwives: Under the Nurses and Midwives Act 1945 is constituted the Nurses and Midwives Board, consisting of the Director-General of Health (Chairman), the Director, Division of Mental Hygiene, the Registrar (Director, Division of Nursing), one registered medical practitioner, a representative of the Hospital Boards' Association of New Zealand, two registered nurses, one registered midwife, and one registered psychiatric nurse. Members other than official members are appointed on the recommendation of the Minister of Health, the nursing personnel being nominated by the New Zealand Registered Nurses' Association.

The functions of the Board are—

  1. To determine the courses of training and instruction to be undergone by candidates for examination.

  2. To approve hospitals and other institutions at which training or any portion of training may be received.

  3. To conduct examinations; to appoint examiners and make all necessary arrangements for examinations; to issue suitable certificates of registration.

  4. To receive applications for registration and to authorize registration in proper cases.

  5. To have regard to the conduct of persons registered under the Act, and, within the scope of its authority, to do whatever may be necessary for the effective administration of the Act.

Under the Act, regulations authorized by the Governor-General by Order in Council may be made, the current regulations being the Nurses and Midwives Regulations 1947 and amendments.

Registration.—The Nurses and Midwives Act 1945 requires that the following registers be kept by the Registrar: (a) Nurses, (b) Midwives and Maternity Nurses, (c) Male Nurses, (d) Psychiatric Nurses, and (e) Nursing Aids.

Every person trained in New Zealand who satisfies the Board that she or he has served the stipulated training period, has passed the prescribed qualifying examination, and has complied with the other conditions laid down by the Act, is entitled to have her or his name entered in the appropriate register. In addition, persons trained outside New Zealand who satisfy the Board that their training and qualifications are equal to the equivalent New Zealand training and qualifications are entitled to be registered in the appropriate New Zealand registers.

In the case of New Zealand trained nurses the fee payable for the qualifying examination includes the registration fee. Overseas-trained nurses whose applications for registration have been approved by the Board arc required to pay a fee of £1 for the initial qualification and a further fee of 10s. for each additional qualification. A practising fee of 5s. is payable annually.

Physiotherapists: Under the Physiotherapy Act 1949 is constituted the New Zealand Physiotherapy Board, consisting of the Director-General of Health, the Principal of the New Zealand School of Physiotherapy, Dunedin, the Inspecting Physiotherapist of the Department of Health, one registered medical practitioner nominated by the Minister, and three practising physiotherapists nominated by the New Zealand Society of Physiotherapists (Incorporated).

The Board is concerned with the training, examination, and registration of candidates for physiotherapy practice, and has regard to the conduct of those registered under the Act.

At present the training period is three years. Full time training for male and female students is conducted at the New Zealand School of Physiotherapy, Dunedin, and eight months of the final year is spent at one of the subsidiary training schools in various parts of New Zealand. At the conclusion of training all students are required to pass the State final examination in physiotherapy in order to qualify for registration. The fees payable for examination and registration are prescribed by regulations under the Act.

Every person registered under the Act and engaged in the practice of physiotherapy must hold an annual practising certificate. The fee payable is 10s. per annum.

The Act also provides for the admission to the register of overseas personnel whose standard of training is acceptable to the Board.

Occupational Therapists: Under the Occupational Therapy Act 1949 is constituted the Occupational Therapy Board, consisting of the Director-General of Health as Chairman; the Director, Division of Nursing as Registrar; the Director, Division of Mental Hygiene; the Medical Superintendent of a mental hospital; the Supervisor of Occupational Therapy; a Medical Superintendent of a public hospital; a representative of the Red Cross Society; a representative of the Occupational Therapists' Association, and one other person appointed by the Minister.

The Board is concerned with the training, examination, registration, and conduct of persons engaged in the practice of occupational therapy in New Zealand.

The training period is at least two and a half years, and is undertaken at the School of Occupational Therapy, Avondale, Auckland.

Every person registered under the Act and engaged in the practice of occupational therapy in New Zealand must hold an annual practising certificate, the fee payable being 5s.

The Act also provides for the admission to the register of persons trained outside New Zealand whose standard of training is acceptable to the Board.

Dietitians: Under the Dietitians Act 1950 is constituted the Dietitians Board, consisting of the Director-General of Health as Chairman; the Dean of the Faculty of Home Science of the University of Otago; the Director, Division of Nursing, Department of Health; the Nutritionist, Department of Health; Inspecting Dietitian, Department of Health; two dietitians nominated by the New Zealand Dietetic Association (Incorporated); and one other person appointed by the Minister of Health.

The functions of the Board are (a) to advise and make recommendations to the Minister of Health in respect of any matter affecting the profession of dietetics, (b) to determine courses of training and instruction to be undergone by candidates for examinations, (c) to approve hospitals and allied institutions as training schools, (d) to conduct examinations, (e) to effect registration, (f) to have regard to the conduct of persons registered under the Act, and (g) to effectively administer the Act.

The training period is in the case of the holder of a degree in home science conferred by the University of New Zealand or of the holder of a Diploma of Associate in the Home Science of the University of Otago, fifteen months in a hospital training school. In the case of a registered nurse, the training period is two academic years in the School of Home Science, University of Otago, together with two periods totalling ten months in hospital training school.

At the conclusion of training all students are required to pass the State examination for dietitians in order to qualify for registration. The fees payable for examination and registration are prescribed by regulations under the Act.

Every person registered under the Act and engaged as a practising dietitian must hold an annual practising certificate. The fee payable is 10s. per annum.

The Act also provides for admission to the Register of overseas personnel whose standard of training is acceptable to the Board.

Opticians: The Opticians Act 1928 provides for the constitution of an Opticians Board, consisting of the Director-General of Health (the Registrar), three persons engaged in practice as opticians in New Zealand (one of whom must be practising as an employee of another registered optician), and a registered medical practitioner with special knowledge of diseases of the eyes.

The Board deals with all applications for registration under the Act. On payment of the prescribed fee (£5), every person is entitled to registration as an optician who satisfies the Board that—

  1. He has received satisfactory training qualifying him to practise as an optician and is the holder of a certificate of qualification recognized by the Board; or

  2. He has passed an examination under the Act, both theoretical and practical, after a course of not less than three years' approved training in New Zealand as prescribed by regulations, or produces evidence of satisfactory training overseas.

An annual practising certificate fee of £1 is required.

Regulations pursuant to the Opticians Act 1928 prescribe the conditions and period of training and the syllabus for the examination conducted by the Opticians Board.

There are approximately 320 opticians registered, but not all are engaged in active practice as opticians.

Plumbers: The Plumbers Board of New Zealand consists of five members—the Director-General of Health or his deputy (Chairman), the Director of Education, a city or borough engineer nominated by the Municipal Association of New Zealand, and both a master plumber and a journeyman plumber elected by their respective associations.

The Board is concerned with the examination and registration of plumbers and once registered a plumber is not required to pass any further examination or pay licence fees to local authorities.

Serving as an apprentice for about five years is the most frequent method of gaining entry to the written and practical examinations of the Board, although there is some limited reciprocity in recognition of plumbing qualifications obtained overseas—e.g., United Kingdom, Australia.

In many parts of New Zealand, especially the more populous and urban areas, all sanitary plumbing as defined in the Plumbers Registration Act 1953 must be performed only by registered plumbers. This restriction on the personal qualifications of plumbers is additional to specifications and standards of workmanship, etc., which have been prescribed for sanitary plumbing. Disciplinary action could be taken against a registered plumber who does unsatisfactory work. There were approximately 3,000 plumbers registered in 1955, but not all are engaged in the plumbing trade.

Pharmaceutical Chemists: There are about 1,450 names on the Register of Pharmaceutical Chemists in New Zealand. All registered pharmaceutical chemists automatically become members of the Pharmaceutical Society of New Zealand, the Society's affairs being managed by the Pharmacy Board constituted by the Pharmacy Act 1939.

The Board consists of twelve members, one of whom is appointed by the Minister of Health, nine are elected on a district basis by registered pharmaceutical chemists, and two by persons, not necessarily registered pharmaceutical chemists, who have served an approved apprenticeship and who, at the time of the election, are employed in pharmacy. The main function of the Pharmacy Board is to administer the Pharmacy Act and generally to protect and promote the interests of the profession of pharmacy and the interests of the public in relation thereto.

It is a specific requirement of the Pharmacy Act that pharmacies in New Zealand be at all times maintained under the immediate supervision and control of a registered pharmaceutical chemist, either in the capacity of proprietor or enrolled manager.

The Board has reciprocal arrangements with the pharmaceutical authorities of Great Britain, Northern Ireland, Republic of Ireland, and all the Australian States in the matter of registration. Any person registered as a pharmaceutical chemist in any of these places is eligible for registration in New Zealand. Persons registered as pharmaceutical chemists in New Zealand, similarly, are eligible for registration in the countries mentioned.

The Board conducts the examinations prescribed in the Pharmacy Regulations. A person completing these examinations, as well as an approved apprenticeship of four years, qualifies for registration as a registered pharmaceutical chemist.

The College of Pharmacy in Wellington was taken over as a function of the Society at the beginning of 1944, after having been conducted privately for a period of eleven years. All persons indentured after 1 October 1944 are obliged to attend personally at the College for a period of three weeks during their final year of apprenticeship.

Pharmacy is subject to the provisions of the Pharmacy Amendment Act 1954. Any person or company in which not less than 75 per cent of the share capital is owned by a chemist or chemists may establish one pharmacy. Companies in which less than 75 per cent of the share capital is chemist-owned must, however, secure the consent of the Pharmacy Authority, set up under the Act, before commencing business, and in all cases the establishment of more than one pharmacy under the same ownership is subject to the consent of the Authority.

VOLUNTARY WELFARE ORGANIZATIONS.—Over the years voluntary welfare organizations have made valuable contributions to the solution of certain problems of public health. In many cases they are encouraged and assisted in their work by grants from public funds. Among the more important of these organizations are the Plunket Society, the King George the Fifth Memorial Children's Health Camps Federation, St. John Ambulance (N.Z.), the New Zealand Red Cross Society, the Crippled Children Society, and the New Zealand Federation of Tuberculosis Associations.

The Plunket Society—the Royal New Zealand Society for the Health of Women and Children—trains its own baby-welfare nurses, conducts baby-welfare clinics throughout the country, and maintains four Karitane Hospitals for premature babies or difficult feeders, but does not cater for the sick baby. The oversight of the healthy baby is left to the Plunket Society, except in those areas where there is no Plunket clinic. In these areas the Department of Health District Nurse does baby-welfare work.

The King George the Fifth Memorial Children's Health Camps Federation maintains a chain of permanent health camps for delicate and undernourished children. The Federation works in close co-operation with the Department of Health. It is the means whereby the voluntary nature of the various organizations is preserved, while ensuring that the available resources are utilized to the best advantage. Much of the finance for the Federation's activities is derived from the proceeds of the annual health stamp appeal.

The St. John Ambulance (N.Z.) has divisions throughout the country carrying out free ambulance work and instruction in first aid and home nursing. It is a branch of the Venerable Order of the Hospital of Saint John of Jerusalem.

The New Zealand Red Cross Society, a part of the International Red Cross Committee, has centres and sub-centres throughout the country. It gives training in first aid, home nursing, hygiene and sanitation, and emergency transportation of the injured. Graduates of these classes form voluntary aid detachments that in peacetime are recruited as aids in hospitals, and in wartime may be recruited for service overseas as well.

The Crippled Children Society keeps a register of all crippled children, helps them to acquire all possible medical treatment, and undertakes vocational training and home education where these are required.

The New Zealand Federation of Tuberculosis Associations looks after the interests of the tuberculous. It assists the Department of Health with health education of the public regarding tuberculosis and concerns itself with after-care and vocational training and guidance.

NATIONAL PHYSICAL WELFARE AND RECREATION.—Because of the abundant natural facilities for popular recreation, New Zealand citizens have always been characterized by a love of outdoor sporting and recreational activity. Although, compared with the older countries of the world, there are large areas available as playing-fields, even in the cities, the demand still exceeds the supply. On the other hand, the long coastlines and frequent mountain ranges enable most people to enjoy outdoor life. A temperate, equable climate ensures the use of facilities on a year-round basis.

The most popular summer sports are swimming and surfing, tennis, cricket, athletics, lawn bowls, softball, rowing, and cycle touring.

Rugby football is the premier sport in winter, but there are enthusiastic and numerically large followings for hockey, association football, tramping, ski-ing and mountaineering, outdoor and indoor basketball, badminton, and table tennis. Both professional and amateur boxing and wrestling are quite popular winter sports, whilst the game of indoor bowls, hitherto confined to isolated areas, is attracting increasing numbers.

Generally speaking, facilities for indoor sports are inadequate in the face of the growing interest and participation in such sports as indoor basketball, badminton, table tennis, and indoor bowls. There is a growing realization of this inadequacy, and steps are being taken, usually in conjunction with community-centre movements, to provide and maintain indoor sporting facilities of a high standard.

All sporting activities in New Zealand are organized on a district basis, with representatives from each district forming a national controlling body. In this way every sport has a number of associations, unions, sub-associations, etc., which control the sport in each district from the strictly local aspect, while a New Zealand association (or union) is the controlling body in all matters of nation-wide significance in that particular sport.

An exception to this arrangement, whereby each sport is responsible for its own administration, is that of selection of representatives for the Olympic and the Empire Games. There exists in New Zealand an Olympic Council made up of representatives of all sports bodies interested in Olympic and Empire Games competition.

Organizational and Practical Assistance in Learn to Swim Campaigns.—Extensive “Learn to Swim” campaigns are conducted each summer by the Department of Education (for school children) and by the Physical Welfare and Recreation Branch in conjunction with swimming associations. Frequently the two organizations combine in specific district campaigns.

During the last five summers an extensive publicity campaign has been conducted in an effort to decrease the incidence of deaths by drowning.

Financial Assistance.—Provision was made in the Physical Welfare and Recreation Act 1937 for the making of grants by the Government in aid of the development of sporting and recreational facilities. Such grants are not made for honoraria, travelling expenses, personal uniforms, or general administrative expenses, nor where it is considered that an organization can carry out a project without grant assistance. In the main, grants are restricted to national organizations for the extension of sporting and recreational facilities and to leadership groups for the furtherance of their activities in the training of leaders.

5 B—HOSPITALS AND CHARITABLE INSTITUTIONS

HISTORY.—Authentic information regarding the earliest steps taken to establish public hospitals is meagre. In July 1841 mention is made in the New Zealand Government Gazette of the appointment by the Government of the first Colonial Surgeon with Auckland as his headquarters. Apparently there was some institution in existence for European patients who obtained admission by applying to the Colonial Secretary, who was the only person having this authority. In the case of Maoris it was different; all that was required of them was to present themselves at the institution.

Due to Governor Grey's efforts, which were at first criticized by many, the Government in 1846 consented to grant money for the erection of hospitals in each of the four centres—Auckland, Wellington, Wanganui, and Taranaki—for the treatment of sick and destitute Europeans and free treatment for all Maoris. The foundation stone of the Wellington Hospital was laid in November 1846, whilst the Auckland Hospital was founded the following year.

It is recorded that the first Dunedin Hospital was built in 1851, and that Christchurch was first served by a hospital at Lyttelton known to have been operating in 1853.

In 1854 control of public hospitals was vested in the six Provincial Councils of Auckland, Taranaki, Wellington, Nelson, Canterbury, and Otago, but in 1876, following the abolition of the provinces, the hospitals reverted to the General Government.

As the result of a conference between local authority representatives and the Government in 1878 the first two hospital districts as they are now known were formed. They were based respectively on the hospitals of Dunstan (Clyde) and Cromwell. However, hospitals generally remained under Government control until 1885, when the first Hospitals and Charitable Institutions Act was passed. By it New Zealand was divided into thirty-eight hospital districts, each under the control of its own Board.

In 1886 the Hospitals and Charitable Institutions Amendment Act was passed giving power to two or more hospitals to join into a united district and control their own affairs. The legislation followed a recommendation of the Inspector of Hospitals that thirteen of the thirty-eight hospitals be closed as the population in some districts was insufficient to support a fully-equipped hospital. Instead of taking advantage of this legislation districts have moved in the opposite direction, and by amending legislation the number of districts gradually increased until by 1909 there were forty-seven; amalgamations since that date have reduced the number to thirty-seven, at which it now stands. In 1948 the title of the Act was changed to the Hospitals Act.

A Consultative Committee on Hospital Reform was appointed in May 1953 to inquire into and report on matters affecting the administrative control of public hospitals and other services provided by Hospital Boards and, after taking evidence, to make recommendations to the Government for the reform of the hospital system. A list of recommendations taken from parliamentary paper H.–31A of 1954 was given in the 1955 issue of the Year-Book.

CONSTITUTION.—A “hospital district” comprises one or more counties and includes boroughs and town districts within the boundaries of the county or counties. The County Councils Borough Councils, and Town Boards are the “contributory local authorities” within the hospital district.

Districts vary in size from Auckland with a population of 439,169 down to Maniototo which has only 2,942 people.

A Board consists of one or more representatives of each contributory local authority district or combined districts of two or more contributory districts where these do not justify independent representation, the number being fixed by the Governor-General by Order in Council, having regard to the relative populations and relative values of rateable property of the local authority districts. The total number of members of any Board must in no case be less than eight or more than twenty.

Board members are elected by the electors of the various contributory districts or combined districts in the hospital district, and the term of office is three years. Formerly electors in counties required a ratepayer's qualification, whereas electors in boroughs and town districts required only a residential qualification, and this applied even though the elected members sat on the same Board. Legislation in 1946 made the residential qualification universal.

POWERS.—A Hospital Board has power to establish, control, and manage any of the following institutions: hospitals, charitable institutions, maternity homes, convalescent homes, sanatoria, habitual inebriates' homes, reformatory institutions for women and girls, residential or day nurseries, and any other institutions for any purpose which the Governor-General by Order in Council may declare to be a public charitable purpose.

A Board cannot do the following without the consent of the Minister of Health:

  1. Borrow money for the purpose of either maintenance or capital expenditure.

  2. Expend more than the sum of £250 for the purpose of erecting, adding to, or altering buildings, or of purchasing land, or for paying off any loan, or for any other purposes of capital expenditure.

  3. Sell or exchange land.

  4. Close an institution.

  5. Make grants to medical or nursing associations or to hospitals.

  6. Make appointments to certain specified staff positions.

  7. Grant bursaries or grant study and conference leave.

AUTHORITY OF DIRECTOR-GENERAL OF HEALTH.—It is the duty of every Hospital Board to provide and maintain such hospitals as the Director-General of Health considers necessary in any part of the district for the reception, relief, care, treatment, isolation, and removal to hospital or “other place” of persons who are suffering from infectious or other disease or from injury, and for maternity cases.

A Board must appoint such number of medical practitioners, dentists, nurses, dental nurses, midwives, and other officers as the Director-General may from time to time deem necessary for the care and treatment of persons in the district of the Board, whether within an institution under the control of the Board or elsewhere within the district. The Director-General is authorized to visit and inspect hospitals and to appoint Assistant Inspectors, and is required to report to Parliament through the Minister on the administration of the Hospitals Act.

FINANCE.—When Boards were first established in 1885 they obtained their revenue from the following sources:

  1. Voluntary contributions and bequests.

  2. Government subsidy £1 for £1 on voluntary contributions and bequests.

  3. Patients' fees.

  4. Levy on contributory local authorities by rate on the capital value of land.

  5. Government subsidy on levies paid from general taxation.

Voluntary contributions and bequests and subsidy thereon at no time formed an important part of Board revenue, and in 1932 the subsidy in this connection was abolished.

In the earliest days public hospitals were meant only for the destitute sick, but as time went on the standard of service was greatly improved and gradually they were availed of by all sections of the community. The hospitals charged a fee which covered cost of maintenance, and patients able to pay were expected to do so. Fees collected were usually found to form about one-third of a Board's total revenue.

Until 1923 the subsidy on levy was paid at the rate of £1 for £1 for both capital and maintenance purposes, but in that year the subsidy on account of maintenance was amended to a scale which had relation to the burden of levy on the rates of local authorities: the Board with the highest burden was paid 26s. subsidy; the Board with the lowest burden was paid 14s. subsidy; the average of all Boards remained at 20s. subsidy.

Under the Social Security Act 1938 a charge was made on all salaries and wages and other income, and the proceeds were paid into a special fund named the Social Security Fund. The charge was fixed at 1s. in the pound, and in 1946 it was raised to 1s. 6d. in the pound. The Act was to provide, inter alia, “a system whereby medical and hospital treatment will be made available to persons requiring such treatment.” Hospital benefits for inpatients were inaugurated in 1939. The effect of this change was to transfer the liability for payment of patients' fees from the patient to the Social Security Fund. The charge on the Fund was initially fixed at 6s. per patient per day if for more than one day, being the average collection made by the Boards from patients. To keep up with the rising cost of maintenance the rate in 1943 was increased to 9s. per day. As from 1 October 1954 the rate is £1 1s. in a Class A hospital and 18s. for a Class B hospital and £1 10s. per day in maternity hospitals.

In 1943 the proportions of revenue derived from the three main sources of Social Security Fund, levy on local authorities, and Government subsidy from general taxation, were almost even. Rising costs led to increases in the levies on local authorities and property owners complained that they were being asked to carry an unfair burden as compared with other sections of the community. As a result legislation was passed in 1946 limiting the levy on contributory local authorities to 0.5d. in the £1 of rateable capital value, and this had the immediate effect of transferring a substantial portion of Boards' cash requirements from levy to the subsidy paid from general taxation. Also it followed that any further increases in cost would fall solely on the subsidy except to the extent that increases in rateable capital value of property increased the amount of levy. In consequence of this development and the increased benefits payments already mentioned, the proportions of revenue derived from the main sources have changed. The approximate position for 1950–51 was: Social Security Fund, 25 per cent; levy, 15 per cent; subsidy, 55 per cent. For 1955–56 the corresponding percentages were 31, 6, and 61 respectively. The Hospitals Amendment Act 1951 provided for the abolition of the levy on contributory local authorities by an annual reduction of the rate of levy during the next five years. The first reduction was made for the year ended 31 March 1953, when the rate was 5/12d. on the capital value. For the year ending 31 March 1957 the levy is 1/12d. per £1 of rateable capital value.

Board expenditure is subject to a measure of control by the Minister of Health. Boards are required in the month of April each year to make an estimate of their expenditure for both capital and maintenance purposes and to have the estimates confirmed at a special meeting of the Board. The Minister may, if he thinks it necessary so to do, require the Board to amend the estimate submitted.

Receipts.—Following is a summary of the actual receipts and payments of all Hospital Boards for the years ended 31 March 1955 and 1956.

£

1954–551955–56
Voluntary contributions and bequests7,5116,032
Payments from Social Security Fund and by inmates of old people's homes4,294,4645,660,386
Levies1,454,3241,080,154
Subsidies10,886,03710,952,103
Rent, interest, and dividends68,63873,235
Sale of capital assets20,01526,797
Miscellaneous193,983253,325
      Totals, excluding loans16,924,97218,052,032
Loans for capital works1,988,0032,129,789
      Totals18,912,97520,181,821

Payments.—Actual payments during the same two years (excluding payments between Boards) are now given.

£

 1954–551955–56

* Formerly included under other headings.

Hospital maintenance12,986,47713,591,247
Old people's homes: Maintenance260,226257,364
Outdoor relief23,78823,363
Subsidies to private hospitals32,18419,411
Other grants7,4637,658
Transport of patients161,156*409,622
District nursing (incl. grants thereto)137,510148,645
Administration379,492157,943
Superannuation114,411114,492
Miscellaneous—
  Maintenance536,112333,825
  Capital34,28853,970
Interest on loans359,364409,795
Amortization of loans654,755734,355
Capital works other than “loan”1,084,6391,559,034
      Totals, excluding loans16,771,86517,820,724
Loan works2,040,6772,176,828
      Totals18,812,54219,997,552

Hospital Maintenance Expenditure.—The average annual maintenance expenditure in general hospitals per occupied bed in the ten-year period 1944–45 to 1953–54 was as follows.

£

YearProvisionsSurgery and DispensaryDomestic and EstablishmentSalaries and WagesMiscellaneousTotal
1944–4555.028.969.9195.26.0355.0
1945–4660.033.682.9231.27.0414.7
1946–4764.739.097.3243.48.8453.2
1947–4873.747.2117.4291.411.2540.9
1948–4981.356.1137.9351.011.2637.5
1949–5086.156.5153.9364.912.8674.2
1950–5198.562.7179.5414.914.3769.9
1951–52112.277.6203.5486.016.3900.6
1952–53119.380.9219.3532.216.9968.6
1953–54126.781.0232.2582.118.61,040.6

Since 1 April 1954 hospital maintenance accounts have been prepared under a new system. Expenditure is analysed under six main divisions as follows: (1) Treatment, (2) Institutional administration, (3) Heat, light, power, and water, (4) Household expenses, (5) Buildings and grounds, and (6) Miscellaneous. Expenditure for outpatients is separated from inpatient expenditure, which is then averaged on occupied beds, patients treated, and available beds. The average annual maintenance expenditure in general hospitals per occupied bed in 1954–55 and 1955–56 was as follows.

£

YearTreatmentInstitutional AdministrationHeat, Light, Power, WaterHousehold ExpensesBuildings and GroundsMiscellaneousTotal
1954–55416.290.099.1443.361.81.01,111.4
1955–56437.996.7103.7471.366.41.21,177.2

Each of these averages includes the direct expenditure of each activity for labour, materials, and incidental expenses, but excludes overheads such as depreciation, interest on capital, or apportionments of expenditure between the various activities. A primary object of the new accounts is to facilitate control of expenditure by analysing hospital expenditure according to the organization of the hospital activities and the division of responsibility amongst sectional heads of the staffs.

Charitable Aid.—The Act of 1885 laid down for the first time that charitable aid should be associated with hospitals and Hospital Boards were charged with the administration of charitable aid. Aid was both “indoor” and “outdoor,” the indoor being mainly the provision of homes for aged and destitute people, and the outdoor the provision of food, clothing, etc., for people in necessitous circumstances.

The passing of the Social Security Act 1938 reduced materially Boards' charitable-aid activities. Practically all people over the age of sixty without means or having only limited means are entitled under this Act to an age benefit.

The introduction of invalidity benefits in 1936 and sickness and unemployment benefits in 1938 also relieved Boards of an appreciable amount of expenditure on outdoor relief.

Expenditure over the past ten years on old people's homes and outdoor relief is set out hereunder.

£

YearMaintenance, Old People's HomesOutdoor Relief
1946–47121,72221,687
1947–48137,49320,028
1948–49151,07720,361
1949–50168,53518,963
1950–51173,20220,389
1951–52194,01320,322
1952–53208,47622,429
1953–54228,00223,993
1954–55258,13123,690
1955–56264,29524,699

Cost to Local Authorities and Government.—The following is a comparative statement of levies on local authorities and subsidies payable by Government during each of the five financial years from 1951–52 to 1955–56.

£

YearLeviesSubsidiesTotal
1951–521,853,0038,230,36610,083,369
1952–531,747,8379,819,03511,566,872
1953–541,657,82510,532,20712,190,032
1954–551,454,32310,871,96912,326,292
1955–561,079,78310,864,20511,943,988

The reduction in levy is due to the limiting of the levy to 5/12d. in the £1 of rateable capital value as from 1 April 1952, and, with annual decreases, to 1/12d. in the £1 as from 1 April 1956.

Loans.—Boards have been authorized by the Minister of Health to raise loans to cover a very extensive building programme, but in recent years building progress generally has been slow because of shortage of labour and materials. In consequence, many loans authorized have not yet been floated or have been floated only in part.

The position of loan liability is as under.

£

YearAmount FloatedRepaymentBalanceReducible by Sinking Fund
1951–52905,473395,0736,312,816108,195
1952–531,509,479451,4727,370,819113,323
1953–543,284,235459,46110,177,590115,331
1954–552,097,061678,81611,595,83173,178
1955–561,982,010697,48612,898,62970,470

PUBLIC HOSPITALS.—Section 4F contains statistics of inpatients treated at public hospitals other than purely maternity hospitals. In the following table the figures are inclusive of maternity hospitals, sanatoria, etc., and relate to the financial year instead of to the calendar year.

YearInpatients TreatedAverage Number of Occupied BedsBeds Available
Total NumberProportion per 1,000 of PopulationNumberProportion per 1,000 of PopulationNumberProportion per 1,000 of Population
1951–52200,328102.311,0445.614,2887.3
1952–53203,657101.311,1995.614,3887.2
1953–54210,633102.211,4105.514,4347.0
1954–55214,310101.811,5155.514,5506.9
1955–56216,15299.411,3115.114,9866.9

The average number of occupied beds per thousand of population in hospital districts varies from three to ten. Most of this variation can be accounted for by the relative distribution of population as between urban and rural areas and also by the fact that many hospitals to a varying extent draw patients from other districts. Other factors which influence the figures are the availability of medical practitioners and their habits in sending patients to hospital or retaining them for home treatment, the availability of private-hospital beds, housing facilities, domestic assistance, private or district nursing assistance, and the efficiency of the outpatient department.

The number of institutions coming under the heading of public hospitals for the year ended 31 March 1956 was 187, comprising 75 general hospitals (6 of which were also old peoples' homes, and 2 special hospitals), 3 non-acute hospitals, 4 convalescent hospitals, 94 maternity hospitals, 5 tuberculosis sanatoria, 1 tuberculosis prevention institution, 1 chronic-tuberculosis hospital, and 1 chest clinic. A comparison of beds and patients is as follows.

1951–521952–531953–541954–551955–56

* In addition, dental cases treated during the year and attendances were: Auckland, 2,515, 11,311; Wellington, 22,094, 37,639; Lower Hutt, 7,592, 13,486; Christchurch, 4,274, 19,974; and Timaru, 1,164, 2,070.

Number of institutions187185185194187
Number of beds—
  General10,73810,76510,82110,86811,138
  Children's cots
  Maternity1,8931,9372,0342,1002,214
  Tuberculosis1,6571,6861,5791,5821,634
    Totals14,28814,38814,43414,55014,986
Average number of occupied beds per day11,04411,19911,41011,51511,311
Inpatients treated during year200,328203,657210,633214,310216,152
Deaths during year8,1517,9897,8298,1408,526
Outpatients—
  Number585,921639,866679,641723,813*673,389
  Attendances1,350,4751,447,7171,551,7561,374,026*1,525,699

HOSPITAL ACCOMMODATION.—The total number of hospitals (public and private, but exclusive of mental hospitals) at 31 March 1956 was 337, of which 181 were the responsibility of Hospital Boards, 6 continued under the control of the Department of Health, and the remaining 150 were operated as private hospitals.

The number of available beds for the last five years in all classes of hospitals, except those in mental hospitals and those in a few institutions maintained by religious and charitable organizations, are given in the following table.

Number of Hospital Beds at 31 March
19521953195419551956
Hospital Board and Department of Health hospitals14,28814,38814,43414,55014,986
Private hospitals2,2432,2122,2812,3282,359
      Totals16,53116,60016,71516,87817,345
Number per 1,000 of population8.48.38.18.08.0

PRIVATE HOSPITALS.—The control and licensing of private hospitals is provided for in Part III, Hospitals Act 1926. With specified exceptions every house in which two or more patients are lodged must be licensed. No premises are so licensed unless the Director-General is satisfied that they are suitable. Staffing and other requirements are governed by regulations, and all private hospitals are subject to regular inspection by the Department of Health.

The total number of private hospitals licensed in New Zealand at 31 December 1955 was 150, providing 429 maternity beds and 1,924 beds for general cases.

The Social Security Act, inter alia, provides for the payment to licensees of private hospitals of prescribed amounts in respect of hospital treatment afforded by them. Particulars are contained in Section 7A.

MATERNITY SERVICES.—Benefits Under the Social Security Act 1938.—The Social Security Act, inter alia, makes provision for payments from the Social Security Fund to hospitals, medical practitioners, and nurses for services in connection with maternity cases. Particulars of maternity benefits provided under the Act will be found in Section 7A.

At the end of 1955 available hospital bed accommodation for maternity cases was 2,636, made up as follows:

Public hospitals2,062
Private hospitals429
State (St. Helens) hospitals125
Alexandra Home (Wellington)20
      Total2,636

The total number of confinements in maternity hospitals in 1955 was 53,853, of which 40,720 were in public maternity hospitals, 9,874 in private hospitals, 2,881 in St. Helens Hospitals, and 378 in the Alexandra Home, Wellington. Of the total confinements 50,900 were confined at the full term and 2,953 at from 7–9 months. In addition, there were 4,362 admissions for ante-natal treatment. These figures are inclusive of Maoris.

State Maternity Hospitals.—There were three State maternity (St. Helens) hospitals operating at 31 December 1956, these being located in Auckland, Wellington, and Christchurch. Prior to the advent of the maternity' benefits under the Social Security Act the use of these hospitals was restricted to cases where the husband's income did not exceed £5 per week, and in cases of large families £6 per week. There are now no restrictions in this respect, and all service is free to the patient. The main function now served by these hospitals is to provide extended training for maternity nurses, so that they may qualify for the more responsible work of midwives.

This service is given under the supervision of a Medical Superintendent, who is also responsible for the conduct of all abnormal cases and for the supervision of the ante-natal and post-natal care of all patients attending. There is also an outpatient department attached to each hospital which. provides nursing services for patients not entering the institution.

District Midwives and Maternity Nurses.—A considerable number of Hospital Boards have district nurses who in most cases carry out some obstetrical work in conjunction with other health work. In addition, there are Department of Health nurses appointed for the purpose of attending the Maori population, part of their work being attendance on Maori women during confinement.

Ante-natal Services.—Since maternity benefits have been provided free to patients under the Social Security Act and medical practitioners have been paid a fee under that Act for giving ante-natal, neo-natal, and post-natal attention, the bulk of the ante-natal attendance has been provided by the patient's own medical attendant, this being one part of the service for which he receives a fee. The doctor's attendance, if desired, is supplemented by that of the midwife in charge of an ante-natal clinic. These free antenatal clinics are established in connection with the three St. Helens Hospitals, all public maternity hospitals or maternity wards, and a number of clinics conducted by the Plunket Society. In the case of women living far from the main centres of population, the work is also supplemented by the district nurses who are employed by the Department of Health or by Hospital Boards.

The majority of women now realize that ante-natal care is as essential to their welfare as attendance, during their delivery and lying-in period, by a doctor and trained maternity nurse or midwife. The Department has supplemented the service by the free distribution of a pamphlet “Suggestions to Expectant Mothers,” which has served its purposes as propaganda for ante-natal care.

Every effort is being made to impress the public with the importance of parental hygiene and systematic ante-natal care throughout pregnancy. Addresses and lectures are delivered by Medical Officers of the Department of Health to nurses and societies interested in this subject. So that there will be definite co-operation between the midwife and the ante-natal clinic, and in order that the midwife may be informed of the clinical methods adopted by the Department, refresher courses of lectures, particularly on ante-natal work, are available to all registered midwives and maternity nurses.

SUBSIDISED ACCOMMODATION—(Old People's Homes, Youth Hostels, and Short-stay Homes for Intellectually Handicapped Children).—For some years returns were collected from benevolent and orphan institutions, the information covering such particulars as admissions, discharges, deaths, ages, status, and authority controlling the institution. The collection was discontinued as from 1948; statistics for earlier years will be found in earlier issues of this publication and in the annual reports on Vital Statistics.

These institutions, which are conducted by hospital boards, religious organizations, and other public or semi-public bodies, are alike in that they provide accommodation for those in need of it, regardless of means, but they differ largely in the category of persons to whom they afford such assistance. Provision is made for accommodation for old people, for maternity and refuge homes for women and girls, homes for the infirm or afflicted, including a separate institute for the blind, and for “prison-gate” or industrial homes. Some of the children's homes deal with cases similar to those dealt with by the special schools under the control of the Department of Education, and a few of the women's institutions receive offenders committed to their care by the courts.

There is a variation in the type of need provided for by the different controlling authorities. The hospital boards concentrate on provision of accommodation for old people—particularly those needing close care and attention. The Presbyterian, Methodist, and Baptist Churches and the Brethren provide children's homes and homes for old people, while the Anglican and Roman Catholic churches provide in addition to these, special accommodation for maternity cases, and the Roman Catholic Church undertakes the care of infirm or afflicted persons of all ages. The Salvation Army deals with all types of need, and is the only body which conducts extensively the “prison-gate” or industrial institution.

These widely varying factors affect the demands made upon the different institutions for accommodation or relief but there is a steady demand for accommodation for old people, particularly in the institutions developed since 1950.

Old People's Homes.—From April 1950 to July 1955, subject to certain conditions, religious or charitable institutions could be granted up to 50 per cent of the cost of providing accommodation for old people. In August 1955 the maximum amount of the subsidy offered was increased to 75 per cent. The administration of this policy is the responsibility of the Department of Health.

During the year 1955–56 subsidies totalling £267,387 were approved to assist in the provision of accommodation for old people. From April 1950 to 31 March 1956, subsidies totalling £878,836 have been approved and buildings erected as a result will accommodate 1,465 old people.

Youth Hostels.—In June 1951 the Government decided that subject to certain conditions it would assist religious or welfare organizations to establish hostels for young people by granting subsidies of up to 50 per cent of the cost of erecting or acquiring hostels. The object of this decision is to assist young men and women who are living away from their homes and are having difficulty in finding suitable living accommodation. The Department of Health was made responsible for the administration of this policy.

During the year 1955–56 a subsidy of £8,750 was approved to assist in the erection of a hostel for 18 young people. Since the policy was approved, subsidies totalling £135,642 have been granted to assist in the provision of hostel accommodation for 260 young people.

Short-stay Homes for Intellectually Handicapped Children.—In 1954 the Government approved the payment, under certain conditions, of a subsidy of up to 50 per cent on the capital cost of approved buildings and furnishings acquired for the purpose of providing short-stay homes for intellectually handicapped children. The intention was to assist the Intellectually Handicapped Children's Parents Association in the provision of homes where eligible children could be placed for up to two months in one continuous period during the illness of a parent, absence of parents from the family home, or for other similar reasons. The administration of the policy is the responsibility of the Health Department.

The total amount authorized as subsidy up to 31 March 1956 was £6,829, while up to 31 December 1956 an additional £6,537 was authorized. Six short-stay homes have been assisted in this way.

5 C—MENTAL HOSPITALS

THE legislative authority relating to mental hospitals is the Mental Health Act 1911 and its amendments, its administration under the direction of the Minister of Health devolving upon the Mental Hygiene Division of the Department of Health. Hospital Boards have no jurisdiction over mental hospitals, which are under the direct control of the Mental Hygiene Division.

There are eleven public mental hospitals in New Zealand administered by the State and maintained out of the public revenue. There is also one private hospital licensed for the reception and treatment of all forms of psychiatric illness, that at Wakari (Ashburn Hall), near Dunedin, established in 1882. The Director of the Mental Hygiene Division of the Department of Health has wide powers in the regulation and control of private institutions, which are placed practically on the same footing as public mental hospitals in regard to inspection and legal matters.

The newer hospitals are built on the villa systems, with patients accommodated in pleasant detached units of about fifty beds each. Each villa is surrounded by lawns and gardens and is largely self-contained. The older hospitals are being modernized. There are facilities for recreation and entertainment at all hospitals in addition to provision for modern methods of therapy. In common with mental health services in most parts of the world the Mental Hygiene Division has had to contend with shortages of staff, particularly medical and nursing staff. The shortage has been most serious in female nursing staff. A minimum of three years' training is required before nursing staff, male and female, become eligible to sit examinations of the Nurses' and Midwives' Board for qualification as a psychiatric nurse.

In spite of shortages of staff active treatment has always been maintained, and no person in need of treatment has ever been denied admission to a mental hospital.

Figures show that the number of persons resident in hospital and the average number of beds occupied weekly is increasing each year. The greater prevalence of mental disabilities arising from old age contributes substantially towards maintaining the permanent hospital population at a high level. It should be observed, however, that large numbers of persons are in hospital for only short periods of time. Scientific and technical advances in psychiatry have ensured that a high proportion of these persons are discharged, restored to health and able to resume their place in the community.

In 1953 a scheme was formulated for the collection of statistical information, administrative as well as clinical, relating to patients treated in the mental hospitals. Figures quoted in this section have been extracted from the first Report on Mental Health 1955, issued by the Medical Statistics Branch of the Department of Health. This report provides a detailed analysis of the admissions according to diagnosis, etiology, birthplace, and race; leavers (discharges and deaths) are examined by circumstance and condition on leaving, time spent in hospital, treatment, and its outcome. Full details are also contained in this report of the numbers of persons resident in hospital, as well as the changes effected in the registers for both resident and non-resident cases.

METHOD OF ADMISSION.—The main division of persons admitted to a mental hospital for observation, care, and treatment is into voluntary patients, or boarders as they are called, and patients.

Voluntary Boarder.—There is provision under the Mental Health Act for admission to hospital upon a person's own request. The applicant must be over twenty-one years of age and in need of specialized treatment. Over four out of every ten admissions to hospital are voluntary admissions, and this proportion is increasing. A voluntary boarder may be discharged either by the hospital authorities or within a period of seven days upon his own application.

Patient.—A patient is a person detained in a mental hospital under a reception order. There are several methods by which patients are committed to the care of a psychiatric hospital. The most normal procedure is for application to be made to a Magistrate, who appoints two medical practitioners to conduct an examination and, if he then sees fit, issues a reception order. As an alternative to this method the person may be taken direct to a mental hospital where an application is made for admission. This application must be supported by two medical certificates. The magistrate then visits the person and if necessary makes out an order for committal.

With an admission under either of the above two methods a reception order may be refused, and it is no longer lawful to detain such a person. Alternatively, the person may be remanded for observation for a specified period of time.

A person under the age of twenty-one years may be committed under either of the methods outlined above or, alternatively, he may be placed in hospital by authority of a special Minor Order. This requires the authority of the Director of the Division after application by a parent or guardian supported by a medical certificate. A minor must necessarily be discharged or committed on attaining the age of twenty-one years.

Persons awaiting trial for offences or under detention in a prison may be admitted to a mental hospital for treatment or observation on the authority of a warrant from the Minister of Justice.

In all of the following series of tables the figures cover both patients and voluntary boarders except where it is specifically stated that the figures are confined to one group, or both groups arc shown in a table each under its appropriate heading.

Maoris are included in all figures published in this subsection. Figures for Maoris are also given separately towards the end of this subsection.

NUMBERS RESIDENT AND ON REGISTERS.—The numbers of patients and voluntary boarders in each of the mental hospitals who were either resident within the hospital mid-year. 1955, or if not resident remained on the books of the hospital at that date, are shown in the following table for the year 1955.

HospitalPatientsVoluntary Boarders
ResidentAbsent on Probation or EscapeResidentAbsent on Probation or Escape
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Auckland6836711,354651321975463117123
Kingseat (Papakura)439427866313364242448   
Raventhorpe (Drury)9258267 33 99   
Tokanui (Te Awamutu)408411819302959212647628
Lake Alice (Marton)200 2003 31 1   
Levin Farm23892330181129      
Porirua5698001,3691536515172123   
Nelson and Ngawhatu52844196930396918123044 
Seaview (Hokitika)2302935238101831013   
Sunnyside (Christchurch), Templeton, and Hornby7156941,4095171122253661   
Seacliff, Waitati, and Cherry Farm6264621,0883982121282048 22
Ashburn Hall (private mental hospital)111526 11192948 22
  Totals4,6564,5649,220290447737244301545111223

There were 6 patients (4 male, 2 female) absent from hospitals on escape mid-year 1955. Each of these patients had been absent from hospital for a period of less than three months. After the lapse of three months an escapee must by law be discharged “unrecovered”.

Probation is a system by which persons are allowed to leave hospital under supervision. It is generally used as a test of fitness for final discharge. However, included in these figures are a small number of persons discharged to a general hospital in order to receive treatment for physical disorders.

The number of persons both resident and those remaining on the registers or books of the hospitals at the middle of each of the last five years is shown in the following table. Also shown is the rate per 10,000 of the mid-year population as well as the percentage of those resident who were absent on probation and escape.

YearResidentAbsent on Probation or Escape
PersonsRate Per 10,000 of Mid-Year PopulationPersonsPercentage of Persons Resident
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
19514,5204,2958,81546.244.345.33725098818.211.910.0
19524,7134,3919,10447.044.34563064837896.511.08.7
19534,7444,5599,30346.144.845.43184968146.710.98.7
19544,8154,7519,56645.845.745.72814877685.810.38.0
19554,9004,8659,76545.645.845.73014597606.19.47.8

The number of persons resident has shown a progressive increase in each of the five years covered by the table. The proportion per 10,000 of population, however, has remained constant.

Persons absent on probation showed a declining tendency in both numbers and in the proportion of those resident over the period reviewed. This trend represents not so much a change in policy as regards probation (the practice plays a useful part in therapy), but rather a reflection of the increased efficacy of treatment which permits a greater proportion of persons to be discharged as recovered or relieved without the necessity for further institutional care or probationary supervision.

ALL ADMISSIONS: Numbers and Rates.—Persons enter mental hospitals as first or new admissions, as re-admissions on transfer from another hospital, and as returns from probation.

During the year 1955, 15 males and 10 females returned to hospital from a period out on probation. Transfers between institutions numbered 222 during the year.

Excluding transfers in and returns from probation, 3,158 persons (1,452 males, 1,706 females) were admitted to mental hospitals during the year. This figure was a decrease of 123 (47 males, 76 females) from the total of 3,281 admissions in 1954. The rate per 100,000 of mean population for both sexes combined was 1,476 in 1955, as compared with 1,566 in 1954.

The following table shows the annual averages during the various quinquennia since 1935, both numbers and rates, patients and voluntary boarders separately. The figures for the year 1955 are also shown. The percentage of voluntary admissions in the total of all admissions is contained in the final column.

PeriodPatientsVoluntary BoardersPercentage of Voluntary Admissions in Total Admissions
Annual Average Numbers AdmittedAnnual Average Rates Per 100,000 of PopulationAnnual Average Numbers AdmittedAnnual Average Rates Per 100,000 of Population
M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.
1935–395615591,12069.471.370.417215132321.319.220.323.521.222.4
1940–445746601,23471.578.975.316920337221024.322.722.723.523.1
1945–496667801,44674.686.880.733540774237.545.345.433.534.333.9
1950–547779831,76077.398.988.05105811,09150.758.454.633.637.138.3
19558461,0291,87578.696.887.76066771,28356.363.760.041.739.740.6

The total admission rate (patients and boarders combined) has risen steadily throughout the period. The rate for 1955 is an increase of 67 per cent over that recorded for the year 1935. The patients' rate rose 28 per cent in this twenty-year period, while the voluntary-boarder rate increased by 200 per cent from 20 per 100,000 of population in 1935 to 60 in 1955.

The swing towards voluntary admission is evidenced by the percentage of voluntary boarders in total admissions. This proportion had risen from 23 per cent in 1935 to 41 per cent in 1955.

Concurrent with the rise in the proportion of voluntary boarder admissions has been the increase in the proportion of readmissions to hospital. In 1935 the proportion stood at 18 per cent of all admissions, and this had risen to 29 per cent in 1955.

Part of the increase in the readmission rate, which is again reflected in the total rate, could perhaps be ascribed to the increased turnover in voluntary boarders, who, not being subject to restraint, may tend to discharge themselves prematurely. This would involve the necessity for a further period of hospital treatment. Voluntary boarder first admissions have increased considerably in both numbers and rates over the period, which gives substance to this surmise. Some of these persons who first came to hospital on a voluntary application would eventually be readmitted as committed patients. The patient readmission rate has moved from 10 per 100,000 of population in 1935 to 22 per 100,000 in 1955.

By reason of the changes in public attitudes with the removal of some popular misconceptions, and the improvement in the standard of the health service available, a person who has had treatment in a present-day psychiatric hospital is probably more inclined to seek further admission upon recurrence of symptoms of a mental disorder.

ALL ADMISSIONS: Diagnosis.—The following table shows the mental conditions which involved admission to a mental hospital during 1955, with division into those who were first admissions and those who had been inmates of a mental institution on some previous occasion. Returns from probation and transfers-in are not included.

DiagnosisFirst AdmissionsReadmissionsAll Admissions
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Psychoses—
  Syphilis of central nervous system5164159211
  Schizophrenia184235419117113230301348649
  Manic-depressive reaction124207331111182293235389624
  Involutional melancholia284876723303571106
  Paranoia and paranoid states1922413710222951
  Senile psychosis207250457244468231294525
  Presenile psychosis47111125813
  Psychosis with cerebral arteriosclerosis2965945493469103
  Alcoholic psychosis3884613316511162
  Epilepsy with psychosis8513931217825
  Puerperal psychosis 3333 44 3737
  Other and unspecified psychosis3731686915434083
Psychoneuroses—
  Anxiety reaction5832901613297445119
  Hysterical reaction171633 55172138
  Neurotic-depressive reaction74109183285078102159261
  Other and unspecified psychoneurotic disorders12183031215153045
Disorders of character, behaviour, and intelligence—
  Pathological and immature personality1210228513201535
  Alcoholism4354818523611071
  Mental deficiency124812052683415089239
  Other and unspecified character, behaviour and intelligence disorders2241 1325
Other conditions—
  Cerebral spastic infantile paralysis224   224
  Epilepsy715227815142337
  Other defined conditions11314   11314
  No diagnosis    11 11
      Totals, all conditions1,0451,2052,2504075019081,4521,7063,158

Schizophrenia is the condition most frequently diagnosed in all admissions to hospital. Manic-depressive reaction is a very close second, although the figure for this condition would be exceeded by combining two closely related conditions of old age, senile psychosis (in third place with a total of 525 admissions), and psychosis with cerebral arteriosclerosis. Fourth place is taken by the most common of the group known as psychoneurotic disorders, that of neurotic-depressive reaction. The fifth most frequent disease is mental deficiency.

In the readmissions the highest number recorded was 293 cases for manic-depressive reaction. This condition comprised almost one third of the total readmissions for the year; 53 per cent of the 293 cases were voluntary boarder readmissions. Schizophrenia was the second most common diagnosis with 230 cases or 25 per cent of the total; 29 per cent of cases were voluntary boarders. There was a big drop down to the third and fourth highest totals recorded in readmissions, neurotic-depressive reaction with 78 cases, 91 per cent voluntary boarders, and senile psychosis 68 cases, 38 per cent voluntary boarders.

ALL ADMISSIONS: Etiology.—Mental illness is classified in two ways: by diagnosis according to the classification issued by the World Health Organization and also by etiological factors stated to be directly or indirectly underlying the mental condition. The classification of etiological factors is designed to give expression to the views of the psychiatrist, to fall under one of the following broad headings: disease or injury, hereditary, other natal or pre-natal influences, personality, emotional stress due to specific causes or at critical periods of life, alcohol or drug addiction, other defined factors.

The following analysis of all admissions on this basis shows that an etiological factor was either supplied or inherent in the diagnosis in approximately two-thirds of cases.

CausePrincipalAssociated
Disease or Injury—
  Syphilis125
  Other infectious disease63
  Neoplasm of brain62
  Allergic, endocrine, metabolic and nutritional623
  Mental deficiency 39
  Vascular lesions of nervous system10713
  Other diseases of central nervous system118
  Epilepsy3016
  Heart disease226
  Arteriosclerosis and hypertension245
  Pregnancy and the puerperium6017
  Congenital malformation74
  Birth injury, spastic paralysis74
  Trauma, poisoning1111
  Other specified disease or impairment353
  Illness, nature unspecified1226
Hereditary—
  Hereditary4018
Other natal or pre-natal influences—
  Congenital425
  Other3 
Factors in structure of personality—
  Constitutional59969
  Other4517
Emotional stress or trauma—
  Marital discord4829
  Other stress in family relations1616
  Loneliness, loss of spouse, parent or friend1923
  Other and unspecified4030
Critical periods in life history—
  Pubescence or adolescence24
  Climacteric or menopause11723
  Old age53778
Alcohol and drug addiction—
  Alcohol14629
  Other specified drugs74
Other factors—
  Environment, difficulty in adjustment to surroundings1020
  Subnormal intelligence133
  Other defined factors2015
  n  Total cases with etiology stated1,986 
      Total cases with no etiology stated1,172 
      Total admissions3,158 

FIRST ADMISSIONS: Numbers and rates.—First or new admissions to mental hospitals provide a measure of the incidence of mental disorders in the community. The figures for 1955 represent one admission for every 951 persons of the mean population of New Zealand. In males the rate is one admission to every 1,030 males, and in females one to every 882 females in the population.

The numbers and rates of persons admitted for the first time showed a fall of 101 cases and 70 per 100,000 of the mean population in 1955 as compared with 1954.

The following table shows the numbers and rates for first admissions (patients and voluntary boarders separately), the proportion of first admissions in total admissions and the proportion of voluntary boarders in first admissions. The numbers, rates, and percentages have been averaged over four five-year periods from 1935 to 1954, while the year 1955 is shown singly.

PeriodPatientsVoluntary HoardersPercentage of First Admissions to Total AdmissionsPercentage of Voluntary Boarders in First Admissions
Annual Average Numbers AdmittedAnnual Average Rates Per 100,000 of PopulationAnnual Average Numbers AdmittedAnnual Average Rates Per 100,000 of Population
M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.
1935–3948146294359.558.959.21159721214.212.413.381.178.880.019.217.418.3
1940–4447052699658.562.960.811012623613.715.114.478.175.676.719.019.319.1
1945–495446071,15160.967.564.223526750226.329.728.077.873.775.630.230.530.4
1950–546257461,37162.375.068.634938473334.838.636.775.872.274.035.834.034.8
19556397681,40759.472.365.840643784337.741.139.472.070.671.238.936.337.5

The first-admission rate for patients has increased from a rate of 72.2 per 100,000 of population in 1935 to 105.2 in 1955, a rise of 47.2 per cent.

The first-admission rate for voluntary boarders has shown a phenomenal threefold rise during the period accompanied by a steady upward movement in the patients' rate. These trends would indicate that the incidence of mental illness has increased during the last twenty years. Some of the explanation may lie in the ageing of the population, especially in the thirty to sixty age group from which most voluntary admissions come, in combination with a less prejudiced attitude of the public which would influence more persons towards presenting themselves for treatment.

In patients there has been a very gradual increase in the rates. Almost all the increase has been due to the movement in the female rate, the male rate not having changed appreciably. Much of this movement is a reflection of the larger numbers coming into the higher age-groups with the associated problem of caring for the mentally infirm.

FIRST ADMISSIONS: Age and Sex.—This table shows the first admissions for 1955 by age and sex, the percentage of cases in age-groups, and the age-specific rates per 100,000 of persons in that age-group.

Age in YearsNumbersPercentage of TotalRates Per 100,000 of Mean Population
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Under 105542975.33.54.3221820
10 and under 2063461096.03.84.8372833
20 and under 3014714228914.111.812.99810199
30 and under 4017623240816.819.318.1120158139
40 and under 5015915631515.212.914.0118119118
50 and under 6012016028011.513.312.5120161141
60 and under 7011215326510.712.711.8161195179
70 and over21127348420.222.621.5373411394
Age not stated2130.20.10.1   
    Totals1,0451,2052,250100.0100.0100.097113105

One in every three first admissions is aged sixty and upwards. At ages over thirty the number and rate of female admissions exceeds the male. Using age-specific rates which make allowance for the numerical excess of one sex or the other in the population at risk within the age-group, the highest female predominance was between the ages of thirty and sixty with 122 female admissions per 100 male. In ages over sixty the proportion was 113 female admissions per 100 male.

The age-structure differs considerably as between patients and voluntary boarders. One-third of patients are aged seventy years and over, while only 4 per cent of voluntary boarders are in this age bracket. Two out of every three voluntary admissions are between the ages of thirty and sixty.

FIRST ADMISSIONS: Diagnosis.—The following table shows the numbers and rates of first admissions per 100,000 of mean population for the years 1953 to 1955 by groupings under disease categories.

DiagnosisNumbersRates Per Million of Mean Population
195319541955195319541955
Psychoses—
  Syphilis of central nervous system836413
  Schizophrenia421448419205214196
  Manic-depressive reaction330356331161170155
  Involutional melancholia899276434436
  Paranoia and paranoid states457341223520
  Senile psychosis390456457190218214
  Presenile psychosis1724118115
  Psychosis with cerebral arteriosclerosis10310394504944
  Alcoholic psychosis504246242022
  Epilepsy with psychosis1929139146
  Puerperal psychosis1015335715
  Other and unspecified psychoses998568484132
Psychoneuroses—
  Anxiety reaction1079490524542
  Hysterical reaction585033282415
  Neurotic-depressive reaction167164183827886
  Other and unspecified psychoneurotic disorders213030101414
Disorders of character, behaviour, and intelligence—
  Pathological and immature personality343322171610
  Alcoholism353948171922
  Mental deficiency175177205858496
  Other and unspecified character, behaviour, and intelligence disorders844422
Other conditions—
  Cerebral spastic infantile paralysis624312
  Epilepsy372222181110
  Other defined conditions131014657
  Observation3  1  
      Totals2,2452,3512,2501,0961,1221,052

There has been no significant movement in the rates for any particular disease, in the space of three years. Both neurotic-depressive reaction and mental deficiency showed appreciable increases in 1955 despite a fall in the all conditions rate in 1955 as compared to 1953.

Psychotic conditions account for 71 per cent of all first admissions. In this group the degenerative brain conditions (senile and presenile psychosis and psychosis with arteriosclerosis) accounted for 562 cases in 1955, or 25 per cent of all first admissions. With the addition of other psychosis attributed to disease, infection, trauma, and toxic brain damage this proportion rises to 30.4 per cent of the total of first admissions. In second and third places come two functional psychoses, schizophrenia and manic-depressive reaction, both with marked excess of females. Two other conditions which manifest themselves by changes in personality without organic disease, involutional melancholia and paranoia bring the total of functional psychoses up to 867 cases (355 males, 512 females), or 38.5 per cent of all first admissions. Other substantial contributors to the grand total were mental deficiency 205 cases, a proportion of 9.1 per cent, and neurotic-depressive reaction 183 cases (74 males, 109 females), with a proportion of 8.1 per cent.

For alcoholism there were 94 new cases admitted (81 males, 13 females), where alcoholism was the principal diagnosis. This figure does not include cases where excess excessive alcoholism has aggravated or brought on some other mental condition under which heading the case has been included.

DISCHARGES AND DEATHS: Condition on Discharge.—The following table shows the circumstance of leaving and the condition on leaving of all persons who left hospital or who died within a hospital during 1955. The figures of discharges on probation do not include short periods of leave granted for holiday or recreational purposes.

CategoryDischargesDeathsEscapeesTotal Leavers
RecoveredRelievedUnrecoveredOn Probation
M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.
Patients206222428283765352459222293515376353729103138779321,809
Voluntary boarders32530062515021636645601052553781414281 15606431,203
  Total persons5315221,0531782534318084164247346593390367757113141,4371,5753,012

In addition to the discharge from hospital of persons resident, the names of a number of nonresident persons were removed during the year from the registers of the hospitals.

The details of the discharge of non-resident cases were as follows.

CategoryDischarged From ProbationDischarged From Escape as UnrecoveredDeath on Probation or Escape
RecoveredRelievedUnrecovered
M.F.T.M.F.T.M.F.T.M.F.T.M.F.T.
Patients15024039034356928326010111251944
Voluntary boarders33377054146210124 4 11
  Total persons183277460397611530427214115252045

Included as discharges from probation as unrecovered arc 36 patients and one voluntary boarder who failed to return to hospital after expiry of the probation period. These discharges are mandatory under the Act in the same way that persons who escape and are not returned to hospital prior to the lapse of three months must be discharged as unrecovered. In actual fact a number of these persons would have been recovered in health.

The propensity of voluntary boarders towards discharge before being fully restored to health shows itself in the high figures of those discharged not recovered in this group. Patients discharged not recovered comprise mainly mental deficients or senile patients returning either to the care of relatives or friends or to homes or institutions for the aged and infirm.

A total of 625 resident voluntary boarders left hospital as recovered. In addition, 70 voluntary boarders out on probation were discharged recovered. As a proportion of the 1,283 voluntary admissions in 1955 the figure is 54.2 per cent recovered.

The number of patients discharged from hospital as recovered was 428 in 1955. The number of non-resident cases discharged as recovered was 390, making a total of 818 cases restored to mental health. The percentage of recovereds to patients admitted is thus 43.6. This is a very satisfactory recovery rate, when it is considered that the number of patients admitted with senile and degenerative brain conditions and mental deficiency is growing each year. The figure of 729 deaths of patients taking place in hospital, most of them from physical causes not related to the mental condition, is evidence of a greater intake of patients with a poor prognosis.

In the table which follows, the number of persons discharged as recovered is shown by certain conditions for which they were treated in hospital, in contrast to the average number of cases admitted for the disease over a three-year period. The number of persons who left hospital on probation, the number of voluntary boarders who left at their own wish not being recovered, and the number of persons who died in hospital whilst being treated for the condition are also included. It was shown in the previous table that more than two out of every three persons who leave hospital on probation are eventually discharged from the registers as being recovered. This proportion would not apply to those discharged in this manner for senile or arteriosclerotic psychosis nor for mental deficiency. A number of the discharges on probation of patients suffering from these conditions would be to a general hospital to undergo treatment for physical disorders. Correspondingly, for other than these conditions the proportion of recovereds in those so discharged would be higher.

DiagnosisPersons Admitted Annually (Average of Years 1953–55)Persons Discharged RecoveredPersons Discharged on ProbationVoluntary Boarders Discharged Not RecoveredPersons Died in Hospital
Schizophrenia6532222308288
Manic-depressive reaction6203341187450
Involutional melancholia12548392413
Paranoia and paranoid states7123864
Senile psychosis489535010342
Psychosis with cerebral arteriosclerosis1107226106
Anxiety reaction128692341
Neurotic-depressive reaction23314117851
Pathological and immature personality45163141
Mental deficiency228340579
Alcoholism—all forms1306711509
Epilepsy—all forms725151624

There is a very satisfactory proportion of cases returned to the community as recovered in all the above conditions except in senile psychosis with arteriosclerosis and mental deficiency where the prognosis is not so favourable. Of the voluntary boarders discharged not being recovered a very high proportion leave hospital relieved. Especially is this so with diseases in the psychoneurosis group.

DISCHARGES AND DEATHS: Time Spent in Hospital.—The aggregate amount of time spent in hospital by the 3,012 persons who left or died in hospital during 1955 was 390,106 complete weeks.

The average length of stay for all leavers was 130 weeks or 2.5 years for both sexes; for males the figure was almost exactly 3 years and for females it was very much lower at 2 years.

The average length of stay in hospital of voluntary boarders was 4 months. The equivalent figure for patients is much higher at 4 years for both sexes. For male patients the average stay is 4.8 years and for females 3.1 years.

In general, persons who die as inmates of mental hospitals comprise, in the majority, cases who by the nature of their mental disorders would never have been considered to have a good chance of recovery. Of the 757 deaths in hospital, 448 were of persons being treated for senile and arteriosclerotic psychosis, while a further 91 cases were mental deficients and epileptics. For outright discharges the average stay was 44 weeks for patients, 13 weeks for voluntary boarders; for discharges on probation the respective figures were 86 weeks for patients, boarders 78 weeks; for deaths, patients 407 weeks and boarders 152 weeks. The average length of time spent in hospital varies considerably as between diagnoses. The average length of stay for certain principal diseases confined to discharges only, i.e., excluding deaths and escapees was as follows: schizophrenia 49 weeks, manic-depressive reaction 27 weeks, involutional melancholia 25 weeks, paranoia and paranoid states 38 weeks, senile psychosis 25 weeks, psychosis with cerebral arteriosclerosis 48 weeks, anxiety reaction 13 weeks, hysterical reaction 32 weeks, neurotic-depressive reaction 10 weeks, alcoholism with psychosis 38 weeks, alcoholism without psychosis 8 weeks. For mental deficiency discharges the average stay was very high at 225 weeks.

Old age and diseases of the circulatory and respiratory systems are the principal causes of death among mental hospital inmates. The figures for the principal groups of causes for the year 1955 were as follows.

CauseNumber
Tuberculosis14
General paralysis of insane6
Late effects infectious encephalitis2
Cancer, malignant disease42
Unspecified neoplasm1
Allergic, endocrine system, metabolic, and nutritional diseases12
Psychoses11
Alcoholism1
Mental deficiency7
Cerebral vascular lesions102
Epilepsy20
Other diseases of nervous system4
Arterio-sclerotic heart disease including coronary heart disease50
Other myocardial degeneration206
Hypertension with heart disease42
Other and unspecified heart disease46
Arteriosclerosis and hypertension without mention of heart48
Other circulatory disease5
Diseases of the respiratory system81
Diseases of the digestive system12
Diseases of the genito-urinary system6
Congenital malformations4
Senility without mention of psychosis22
Fracture of femur3
Other accidental causes3
Therapeutic misadventure1
Suicide6
      Total757

MAORIS IN MENTAL HOSPITALS.—Maoris are included in the tables covering all inmates of mental hospitals. The number of Maoris admitted as committed patients to mental hospitals is small. The figures for the last five years were as follows.

YearAdmitted During YearRemaining at End of Year
MalesFemalesTotalMalesFemalesTotal
1951464086133107240
1952423779157123280
19535963122164132296
19544362105170148318
19554958107171171342

The number of Maori voluntary boarder admissions is small, 9 males and 9 females only being admitted in 1955 on their own application.

Confined to first admissions and combining the figures for both patients and voluntary boarders, 85 Maoris were admitted for the first time in 1955. This gives an incidence rate for mental illness of 64 per 100,000 of the mean Maori population as against 105 per 100,000 for the non-Maori.

Over half the first admissions of Maoris to hospital fall between the ages of twenty and forty years.

Schizophrenic cases (40) and manic-depressive reactions (35) make up a very high proportion of the total of 125 Maori admissions. The only other significant totals in 1955 were 15 cases of mental deficiency and 10 cases admitted for senile psychosis. The extremely low total of 5 cases recorded for all forms of neurosis is a reflection of the equable temperament of the Maori individual.

EXPENDITURE, ETC.—The total expenditure on public mental hospitals (not including the cost of new buildings and additions) and particulars of receipts during the last eleven financial years are shown in the next table. As from 1 April 1939 free maintenance and treatment of patients have been provided in all public mental hospitals in accordance with the provisions of the Social Security Act 1938. The consequent loss of revenue through the operation of the Act was recoverable from the Social Security Fund, but as from i April 1945 such recoveries ceased, and from that date all maintenance expenditure has been borne by the Consolidated Fund. The amounts shown as receipts on account of patients' fees for the years subsequent to 1939–40 represent in part the recovery of accounts outstanding at 31 March 1939. The Mental Health Amendment Act 1950 provides that the cost of maintenance of any person who is not ordinarily resident in New Zealand and who is detained in any public institution shall be a debt due to the Crown. These provisions became effective on and after 23 November 1950.

Year Ended 31 MarchTotal ExpenditureReceiptsNet ExpenditureGross Average Cost per Patient
Patients' FeesSale of Produce, etc.
 £££££s.d.
1946940,1675,85970,500863,80811382
19471,072,1308,22887,065976,837128102
19481,243,3328,95888,3971,145,977147123
19491,476,7687,99338,4271,430,3481731311
19501,766,6591,602177,1521,587,90520300
19511,810,2852,956125,7711,681,55820620
19522,288,5894,983138,4652,145,14125760
19532,446,3441,84955,2102,389,28527220
19542,510,8861,21871,5282,438,14023188
19552,549,7333,10468,4372,478,192262410
19562,805,87762966,9622,738,286283194

In the period covered by the “foregoing table total expenditure increased by £1,865,710, or 198 per cent, while the gross average cost per patient rose by £170 11s. 2d. per annum, or 150 per cent.

As already stated, the expenditure included in the foregoing table does not include amounts spent on new buildings, additions, etc., the cost of which is met by the Ministry of Works. The sums spent in this connection fell away considerably in the later war years. Expenditure for the last three financial years, however, has amounted to £560,275 in 1953–54, £374,754 in 1954–55, and £393,732 in 1955–56, while the aggregate expenditure from 1 July 1877 to 31 March 1956 was £6,095,945.

Chapter 6. SECTION 6—EDUCATION

Table of Contents

HISTORY AND ADMINISTRATION.—The education system of New Zealand can be understood only when it is seen against its historical background. The first settlements in the new colony were relatively isolated units each of which had to make its own provision for the education of its children. In some places the provision of schools was left to the churches, in some to private enterprise, and in others to public associations. When the provinces were established in 1852 the Provincial Councils took over education as one of their functions, but this brought no degree of uniformity to New Zealand schools, for each province tended to foster the type of school organization already established in its area. The provinces varied considerably in the efficiency of their school systems; but, in spite of some success in the face of difficulties in certain areas, at the end of the provincial period in 1876 not more than half the children between the ages of five and fifteen were attending school at all.

The present national system of free, secular, and compulsory* education is based on the Education Act of 1877. This Act followed upon the abolition of the provinces, but the provinces, though dead as political units, left their mark upon the school system. A fierce struggle between the protagonists of central and of local control ended in a victory for the provincialists, and the public schools were placed under the control of District Education Boards, which were for the most part the same bodies as the old Provincial Education Boards. The Colonial Government, however, had to provide all the finance in the form of capitation grants, and a small Department of Education was set up in Wellington, very largely for the purpose of distributing the grants. For every school district constituted under the Act there was a School Committee, elected by householders, which, subject to the control of the Board, had “the management of educational matters within the school district.” The School Committees elected the members of the Education Board.

As far as mere structure is concerned, this still remains the pattern of the system of school administration in New Zealand, but there have been, in the intervening years, great changes in the relative functions of the three authorities. The general tendency has been for final power and responsibility to shift from the Committees to the Boards and from the Boards to the Department. The Committees, in fact, through lack of professional executive officers and independent sources of revenue, from the very beginning were unable to take over the full powers that the 1877 Act obviously intended them to have, and for the first twenty years of national education the Education Boards were the predominant authorities in the system.

From just before the beginning of this century the Department of Education began to play an increasingly important part in educational administration, partly as a result of improved means of communication. Under the Act of 1877 the Boards had been given wide powers: to administer funds from endowments and departmental grants, to appoint and remove teachers, to pay teachers' salaries according to their own scales, to establish scholarships and provide for secondary education in district high schools, and to control the inspectorate. Legislation, beginning with the establishment of a national scale of primary school salaries and staffing in 1901 and culminating in the Education Act of 1914 (still the basic measure under which the education system is administered), concentrated these powers more and more in the hands of the Department, which began to take a more detailed interest in expenditure by the Boards. The original freedom of the Boards in the expenditure of building grants was taken away, and the present system, requiring special departmental authorization for each new building, gradually became established. From 1901 onwards the Department paid over to the Boards the exact sum required for teachers' salaries, thus leaving a much-reduced capitation grant to be used by the local authorities at their own discretion. In 1914 the Department took over the control of the primary-school inspectorate.

* Every child (with certain statutory exemptions) between the ages of seven and fifteen years has to be enrolled as a pupil of either a public or a registered school.

The centralization of the inspectorate made possible a further change affecting the powers of the Boards. In 1920 a New Zealand grading scheme was instituted under which all primary-school teachers were annually awarded grading marks by the Inspectors. A teacher's total marks gave him a place on a numerically graded list. Since all ordinary appointments were to be decided on the basis of this list, the system of appointment was in effect a national one, and the Boards had very limited powers of discretion although they made the appointments. In 1940 biennial grading was substituted for annual grading, thus freeing the inspectors of schools in alternate years to give more time to schools. The provision of an annual grading number for teachers was, however, retained. A new appointments scheme involving the classification of teachers in four broad Divisions and triennial assessment was agreed upon in 1954. An Education Amendment Act giving legal effect to it was passed in 1955. Transition to the new scheme from the present one began in 1957, but will not be fully effective for all teachers until 1959. Under the new scheme appointments are recommended to Education Boards by three-man appointments committees (one in each education district) on which the Department, the Board, and the teachers are represented. Thus, teachers for the first time are given some voice in the making of appointments. The scheme is supervised by the Central Advisory Committee, representative of Department, Boards, and teachers. This Committee reports annually to the Director and every five years to the Minister of Education. It acts as an arbitrator when a Board and an appointments committee fail to agree on a recommendation for an appointment. In 1957 appointments to all assistantships and to the headship of small schools will be made on the recommendation of appointments committees.

It does not follow, however, since the Boards and the School Committees have lost many of their original powers, that they have ceased to play an important part in the system. The Committee's primary function is the care of school buildings, grounds, and equipment, but, in addition to this, many interest themselves very keenly in the general activities of the school and provide in each district a focusing point for local opinion on educational matters. The Education Boards are still the initiating bodies on matters of buildings, sites, conveyance of pupils, consolidation, and provision of school facilities generally; and, although the final word often lies with the Minister of Education or the Department, the Boards have no small influence in the fixing of policy within their districts. The schools are legally their schools and the teachers their teachers, although in general the Boards' choices of applicants are limited under the system for making appointments. The teachers' class-room activities are under the control of the Inspectors, but their general responsibility is to the Boards, and their professional life tends to centre on the Boards rather than on the Department. In spite of the apparent clumsiness of the administrative structure and of periods of strong feeling in the past, the system at present functions remarkably smoothly, and has achieved a balance, workable if not ideal, between the claims of local initiative and national efficiency. A certain degree of decentralization was achieved in 1948 when a branch of the Department of Education was established at Auckland.

Post-primary education, with the exception of that given in the district high schools, was not brought by the Act of 1877 within the province of the Education Boards. Several secondary schools had been established in various ways before 1877, and these continued under their own Boards of Governors, which were in no way related to the Education Boards. The Education Reserves Act 1877 set aside one-fourth of the educational reserves for secondary education, vesting the remainder in the Education Boards for primary-school purposes. Thus there was introduced into the colony that cleavage between elementary and secondary education that was characteristic of the English system. In the years immediately following the Act of 1877 a series of Acts set up a number of local High School Boards, each in control of its own land endowments. No effective provision was made for the inspection of these schools by any outside authority or for the co-ordination of their work with any other part of the school system.

Further secondary schools, and, from 1902 onwards, technical high schools, were from time to time established. Before 1901 fees had been charged even in district high schools. In that year free places were instituted in district high schools, and in 1902 secondary schools were offered special capitation grants if they would provide free places for deserving scholars. Under the Education Act of 1908 free places at the technical schools were granted on a more liberal basis, and by 1914 all State post-primary schools were obliged to give free places for two years at least to any pupil who had passed the Proficiency Examination. In 1936 the Proficiency Examination was abolished, and free post-primary education to the end of the year in which he reached nineteen years of age became available to every child who completes a primary-school course, or who attains fourteen years of age by 31 March of the first year in which he attends a post-primary school.

A direct effect of this movement towards free post-primary education was that the Department began to exercise an increasing degree of control over the schools. The Education Amendment Act 1920 authorized the establishment of New Zealand staffing and salary scales for post-primary schools, and instituted the system—already operative in the case of the Education Boards—of paying over to the schools the exact sum required for salaries plus a capitation grant for incidental expenses, less the amount received from local secondary-school endowments. This, in effect, nationalized these endowments, and spread more evenly the benefits resulting from the foresight of the early settlers. As from 1 April 1949 all revenue received by the schools was handed over to the Crown and the total cost of salaries and incidental expenses met from the Consolidated Fund. The endowment reserves themselves were vested in the Crown as from the beginning of 1950.

THE SCHOOL SYSTEM.—Perhaps the best method of sketching the outline of the school system as it now stands is to trace the career of a child as he passes through the system. He may at the age of three enter a free kindergarten under the control of the Free Kindergarten Association. At the age of five he may enter, and at seven he must enter, either a primary school under one of the ten Education Boards, or a registered private primary school, or, if living in an isolated area or physically handicapped, the primary department of the Department's Correspondence School. All state primary schools are co-educational. The child passes through the infant classes and Standards 1, 2, 3, and 4. This normally takes six years. The remaining two years of the primary course will be taken either in Forms I and II at the same primary school or, if there is one conveniently situated, at an intermediate school. The intermediate school is a comparatively recent development within the primary-school system, the first of these schools being established in 1922. It is a centrally situated school which pupils enter from the surrounding primary schools (called in these circumstances “contributing schools”) after they have completed the primary-school course as far as Standard 4. Because the intermediate school comprises a fairly large number of pupils (usually between 300 and 600) who are mainly between the ages of eleven and thirteen years it is possible to classify them into groups of approximately equal ability, provide a good range of optional courses, and utilize specialist teachers and advanced equipment to the full. As at this point in his school career the pupil's social and intellectual interests have developed, he is ready to take full advantage of the varied and enriched courses provided. Where the number of pupils in an area is not sufficient to justify the establishment of a separate intermediate school an intermediate department may be attached to the local post-primary school, and thus utilize the special facilities available at the senior school. In some intermediate schools a third-year course (Form III) is provided to give a rounded-off education to pupils who do not intend to proceed to a post-primary school.

On completing a course in Form II or on reaching the age of fourteen by 31 March of the first year in which he attends a post-primary school, the child becomes entitled to free post-primary education until the age of nineteen is reached. The Education Amendment Act 1920 made provision for the raising of the school-leaving age from fourteen to fifteen years, but this change was not brought into operation until February 1944, and all children are now required to attend school until the new leaving age is reached. This means, in effect, that some period of secondary education is now compulsory for nearly all children. The only provision for exemption is inability to profit from the further period of education.

When a country child leaves the primary stage he may have no alternative but to enter Form III of a district high school (which is really a secondary top to a primary school and is under the same control), or enrol in the Correspondence School. In more thickly populated areas there will be either a secondary school or a technical high school available. In some towns a secondary school and a technical high school have been amalgamated to form a combined school. To those not understanding the peculiar character of the New Zealand technical high school this may seem a strange union, but the differences between schools of the two types are, except in the larger centres, relatively slight. The difference was further obscured when after 1944 secondary schools catered increasingly not only for “academic” pupils, but for those pupils as well who, after fulfilling the core requirements, specialize in the more practical subjects (technical, agricultural, domestic, commercial). A number of secondary departments of district high schools that had grown very large were made separate post-primary schools. The result of these developments is that post-primary schools are now all more or less multilateral.

The School Certificate Examination conducted by the Department of Education is now regarded as the accepted test of a completed post-primary education for the great bulk of the pupils who do not desire to proceed to University. The School Certificate Examination is taken at the end of the third or fourth year of the post-primary course. The subjects of the examination are English and such other subjects as are prescribed from time to time by the Minister of Education by notice in the Education Gazette. The School Certificate is awarded to pupils who pass the examination and, in other respects, have complied with the regulations governing the award of the certificate.

Provision is contained in the Education (Post-primary Instruction) Regulations 1954 for endorsement of School Certificates on satisfactory completion of an advanced course of instruction for one year. The regulations also provide for the award of Higher School Certificates. In general this certificate is awarded after a five years' course to pupils who have been awarded a School Certificate and satisfactorily complete an advanced course of two years; and to pupils who have been accredited for or have passed the University Entrance Examination and satisfactorily complete an advanced course of one year.

The technical schools, combined schools, and a few of the secondary schools run evening classes, particularly in practical and vocational subjects, which an adolescent may attend after he leaves full-time day school. Apprentices in some trades are required to attend evening classes as a part of their trade training. In 1948 approval was given to the establishment of day classes for apprentices and the first of these were commenced in 1949. They now include classes in carpentry and joinery, cabinetmaking, electrical wiring, mechanical engineering, motor engineering, plumbing, aircraft engineering, radio servicing, refrigeration engineering, ship, yacht, and boat building, painting and decorating, printing and photo engraving, sheet-metal work and moulding and casting. In some of the larger technical schools part-time students may take professional courses in engineering, architecture, accountancy, pharmacy, etc.

Prior to 1944 all pupils desiring to undertake a University course were required to sit and pass the University Entrance Examination conducted by the University of New Zealand. In 1944 a system of partial accrediting came into operation. Under this system pupils attending certain approved schools may be accredited for matriculation purposes provided they have completed a four years' post-primary-school course. The University Entrance Examination is still conducted by the University of New Zealand, and pupils not accredited for entrance to University may qualify in this manner. The standard of the present entrance examination is somewhat higher than that maintained prior to the introduction of the accrediting system.

Pupils who have been accredited for, or who have passed the University Entrance Examination may without further post-primary education receive half-tuition fees for part of their course and then full fees for the rest of their course. Where pupils have obtained a Higher School Certificate, full tuition fees are payable plus an additional sum of £40 per annum where they are full-time students. These pupils may also receive a boarding allowance of £50 per annum where they are obliged to live away from home to attend a full-time course. Although these bursaries are normally for four years, they may for certain courses be extended for a further year.

The University of New Zealand, whose controlling body is the University Senate, is constituted of the University colleges of Auckland, Wellington, and Canterbury, and the University of Otago (which does not itself grant degrees). Massey and Canterbury Agricultural Colleges, associated with the University of New Zealand, are open to students specializing in agricultural studies.

The six teachers' training colleges, although they work in conjuction with the four University colleges, are organically related to them only through their Boards of Studies. The Education Boards are the controlling authorities of the training colleges.

The State system also caters for the needs of certain special groups of children. Maori children may attend the public schools, but there are also public Maori village schools provided for their primary education. There are also a few private mission schools remaining from the pre-Maori War system established with the help of Government subsidies. For his post-primary education the Maori child may go free to any available public post-primary school or Maori district high school. If he lives in a rural area he may gain a Maori scholarship awarded by the Department of Education which will enable him to attend one of eighteen selected post-primary schools. These are all boarding schools, eleven of them being denominational. Five are for girls, seven for boys, while the remaining six are co-educational State schools. Some of them are partly financed out of public endowments originally provided for the purpose of Maori education.

As mentioned earlier, children living in isolated areas or prevented in other ways from attending school may be enrolled in the Correspondence School for both primary and post-primary work.

For children with various types of handicap there are provided numerous special educational services. The mentally backward are grouped in 60 special classes attached to ordinary schools throughout the country and in two residential special schools. For children who are extremely backward mentally there are seven special centres (occupation centres) in the main cities, and voluntary groups (occupational groups) which are given financial assistance by the Department have been formed in several smaller towns. Two residential schools cater for the needs of the deaf and those partially-deaf children who cannot profit from teaching in an ordinary primary school. In one city there is a class for partially-deaf children attached to an ordinary school. Children with speech defects attend regularly one of the 50 speech clinics. In three of the largest cities there are four remedial clinics to assist children suffering from serious educational retardation (mainly in reading). Classes have been established for partially-sighted children in the four main cities, and blind children are catered for in a school for the blind attached to the Foundation for the Blind, Auckland. Six schools have been organized as separate units for cerebral-palsied children. Where a sufficient number of children in hospital justifies it, teachers are made available to conduct hospital classes which are attached to a local school. There are 46 classes of this type. Children who are admitted to one or other of the seven health camps for a period of six to ten weeks attend the school associated with each health camp. The Department conducts special classes in two prisons for prisoners whose basic education is of a low standard. Finally, there are special schools and homes to take care of children with the most serious and deep-seated problems of maladjustment or delinquency. These last-named institutions, the schools for the deaf, and the two special schools for the mentally backward, are being administered for the Department by the Child Welfare Division, which, in educational matters, is under the control of the Minister of Education. All other special classes and centres are controlled by the Education Boards. The Boards also employ 21 Visiting Teachers whose task it is to help children whose progress at school is causing concern by acting as a link between the school, the home, and the community. The psychological service of the Department of Education is established in six centres. It comprises eleven psychologists, all of whom are available for psychological examining and educational testing of children with special problems, and six area organizers of special classes.

In addition to the various State schools described, a parent may send his child to a private school, either primary or secondary, conducted by either religious bodies or private individuals. No Government free place is tenable at these schools,* but a Secondary School Bursary (referred to on page 183) may be tenable at a private school, while assistance for transport by rail and road and a boarding allowance under certain conditions may also be given to pupils attending private schools, whether primary or post-primary. All private schools must be registered, and are subject to an annual inspection by the Department's Inspectors. The majority of the private schools are conducted by the Roman Catholic Church. Amongst the private schools are two endowed secondary schools modelled after the English public school.

* Except for Maori “Government pupils” in the denominational secondary schools.

To complete the above sketch it should be added that co-education exists in all stages of the system. At the primary stage, all public, intermediate, and Maori schools and some private schools teach boys and girls together. At the teachers' training colleges and the University colleges, students of both sexes attend together. At the post-primary level all district high schools and technical colleges have both boys and girls on their rolls, whilst just over one-half of the secondary and combined schools and nearly all of the private secondary schools are single-sex schools. A comparison of the total enrolment of all post-primary schools (State as well as private) in 1955 with that twenty years earlier shows that the ratio of single-sex to co-educational schools has changed from 51 to 49 in 1935 to 45 to 55 in 1955, whilst during that period the total number of pupils has more than doubled.

SCHOLARS AND STUDENTS.—The number of scholars and students receiving instruction in the educational institutions of New Zealand is shown in the following summary. The table refers to roll numbers as at the end of the year (except in the case of technical classes, which are as at 1 July).

Class of Institution19511952195319541955

* Pupils on roll at end of year.

† There were also 1,345 students taking part-time courses.

‡ Part-time students, excluding 2,788 part-time students (2,013 in 1954) enrolled with the Technical Correspondence School.

§ Includes 891 students taking short courses at the agricultural colleges in 1955.

Preschool Education*
Kindergartens4,9065,2715,6166,0446,543
Primary Education
Public (State) schools267,273284,784300,508314,741321,405
Intermediate schools and departments
Maori village schools13,66314,07614,34514,08613,988
Maori mission schools822790781834856
Registered private primary schools37,69039,65442,01843,40645,107
Lower departments of secondary schools160150141115112
Correspondence classes (primary)1,6731,5961,6451,3871,226
Chatham Islands schools1081069988105
Totals, primary321,389341,156359,537374,657382,799
Post-primary Education
Secondary schools20,34121,87223,92430,20335,059
Combined schools3,5793,8134,0904,6074,938
Secondary departments of district high schools7,1957,9468,7098,3648,876
Technical high schools14,87116,17918,13618,26818,292
Maori secondary (boarding) schools863871834860885
Registered private and endowed secondary schools9,79110,41311,30312,51413,666
Correspondence classes (secondary)457435482431452
Totals, post-primary57,09761,52967,47875,24782,168
Technical Classes (excluding Technical High Schools and Technical Day Schools)
Conducted by Education, Secondary School, or High School Boards8,5389,69012,09013,07813,210
Conducted by Technical School Boards14,31216,65918,54722,07425,206
Totals, technical22,85026,34930,63735,15238,416
Higher Education
University colleges9,4669,3239,4419,4019,487
Canterbury and Massey Agricultural Colleges1,2181,0421,1061,1631,362§
Students exempt from lectures1,007940920946893
Teachers' training colleges2,7042,7102,7692,7442,741
Totals, higher14,39514,01514,23614,25414,483
Totals, scholars and students420,637448,320477,504505,354524,409

The preceding table of enrolments shows that there have been steady increases of between 19,000 and 29,000 pupils and students in each of the last five years. The following figures illustrate what a significant expansion is taking place in the whole educational system. Between 1930 and 1944 primary-school rolls had remained almost stationary year after year, but they increased in 1945 by 5,000, in 1946 by 6,000, and in the following nine years (1946 to 1955) by a total of 118,000. These enrolment increases were so marked that the Department and Education Boards began several years ago to pay urgent attention to the population changes that caused the expansion, which in turn was calling for proportionate increases in the supply of teachers and in the provision of classrooms, of teaching equipment, and other facilities such as transport. Even a short account of this expansion must stress the relevant change in the age composition of the population, and then illustrate its impact at the various levels of the school system.

The expansion was in the first instance due to the increase in the yearly number of births. This rose from some 28,000 in 1936 to almost 50,000 in 1947, remained nearly at that level from 1948 to 1951, and rose to 55,600 in 1955.

A comparison between the Census years of 1936 and 1951 shows that in 1936 all children of age 0 to under 15 years represented 26.5 per cent of the total population, but fifteen years later, in 1951, the proportion was 29.7 per cent, whilst the total population had increased to 1,940,000, or by just over 23 per cent; the 23 per cent increase of total population compares with an increase of the child population alone of 38 per cent. The change in the age groups of school age is shown in more detail in the following table.

Age Group, in Years19361951IncreaseDecrease
NumberPer CentNumberPer Cent
5 and under 10140,990183,80042,81030  
10 and under 14115,670127,40011,73010  
14 and under 18113,430105,800  7,6307
    Totals, 5 and under 18370,090417,00046,91013  

A special feature has been the increase during the same period in the Maori juvenile population. The increase in the Maori birth rate had begun earlier and coincided with a marked reduction in the Maori infant death rate. The corresponding figures for the Maori population are as follows.

Age Group, in Years19361951Increase
NumberPer Cent
5 and under 1012,60516,0003,39527
10 and under 148,38012,2003,82045
14 and under 186,64010,6003,96060
    Totals, 5 and under 1827,62538,80011,17540

The school enrolment increases were first felt in the primer classes, then in the lower standards. They gradually spread to the upper primary classes, and are now reaching the post-primary schools. The increase in the total number of children enrolled between 1945 and 1955 was 60 per cent in Standard 2, and 39 per cent in Form II.

It has been estimated that rolls will continue to expand. By 1960 the total school population will have increased by 254,000 over and above the 1936 enrolment of approximately 280,000 full-time pupils at all public and private schools.

Concurrently with the recent rise in roll numbers due to the increasing child population, a further expansion of the education system took place at the post-primary level. The number of post-primary school pupils declined for a time during the earlier war years, but increased by 3,000 in 1943, and a further 6,000 in 1944. These increases were due to the raising of the school-leaving age to 15 years, a measure which took effect at a moment when three-quarters of those in the age group 14 to 15 were attending school. The proportion had gradually increased to that figure in the preceding eight years. The proportion of primary school children entering upon a post-primary course has undergone considerable changes. While it was approximately 10 per cent at the beginning of the century, it had risen to 45 per cent at the end of the First World War and to 65 per cent before the Second World War. By 1955 the figure was 94 per cent. At the same time as the more recent increase from 65 to 94 per cent of the number of primary school children proceeding to post-primary schools took place, the average length of time spent at post-primary schools showed an increase. In 1936 approximately one-quarter of all pupils entering post-primary schools reached either Form V (Upper) or Form VI (Lower), the normal goal of a four-year course; by 1955 this figure had increased to approximately one-third of all entrants.

The changes in enrolment due to the varying size of the age groups of school age and to the extended schooling were accompanied by changes in the yearly number of school leavers entering occupations. The following table shows a decline in the total number of school leavers to a low point in 1948, some recovery in the following year, approximately stable numbers in the following three years, and definite increases in 1953, 1954, and 1955. At the same time the proportion of school leavers entering upon their working life direct from a primary or intermediate school, without any full-time attendance at a post-primary school, has markedly declined. The following figures refer to pupils leaving public primary and intermediate schools who did not enter post-primary schools, and to post-primary school leavers who did not enter University, but exclude pupils from Maori schools and private schools.

 Number LeavingPercentage From Primary Schools
193622,99442
194121,01436
194618,90216
194818,08015
194919,33713
195019,58612
195119,96411
195219,94710
195321,2668
195423,0397
195524,9306

The development since 1930 of the total enrolment at all public and private primary and post-primary schools (full-time pupils) is illustrated by the diagram below, which gives for the years 1957 to 1965 estimated rolls based on the probable increases in the school age population.

The number of part-time students attending day or evening classes also shows a steady increase in recent years. The total increase between 1947 and 1955 was 21,622, or 99 per cent. An important factor in this increase is the development of apprentice training. The attendance at day classes for apprentices has increased considerably in the last four-years (1950, 1,492; 1955,8,678), and the availability of training has been extended to several further trades. As the major trades (except printing) in which there are apprentices are now covered by day or evening classes, it is to be expected that developments will be in the nature of consolidation rather than of extension.

The enrolment at University colleges which reached a total of 12,213 in 1955 has nearly doubled since 1939. The enrolment figures in the immediate post-war years were still higher, as they included a number of ex-servicemen students. From about 1956 onwards the age groups born after the depression years will reach the institutions of higher education, and these will from then on have to be ready to accommodate increasing numbers of students. The intake at the five teachers' training colleges was increased from 1948, when the fifth college was opened and the number of students admitted raised to 1,050, in order to meet the expected higher demand for certificated teachers. A sixth teachers' training college was opened at Palmerston North in February 1956. The total rolls at the training colleges were 1,875 in 1948, 2,321 in 1949, 2,684 in 1950, 2,704 in 1951, 2,710 in 1952, 2,769 in 1953, 2,744 in 1954, and 2,741 in 1955.

ANNUAL EXAMINATIONS.—The number of candidates who actually presented themselves for the various examinations conducted by the Department of Education and also by the Trades Certification Board during the last five years is given below.

Examination19511952195319541955
Teachers' Certificate308256224217273
School Certificate9,76310,46812,00813,30814,961
Special Bursaries337350339343296
London University66796
Handicraft Teachers' Certificate4045484740
Homecraft Teachers' Certificate4149575855
Technological117112878977
City and Guilds of London124118137170162
Samoan Public Service 437510673
Engineers' and Surveyors' Assistants 26577655
      Totals10,73611,47313,03914,42315,998
Trades Certification2,5183,2343,9894,2035,262

The University of New Zealand conducted examinations in 1955 in the faculties of arts, science, medicine, dentistry, home science, law, engineering, commerce, agriculture, music, architecture and divinity; for diplomas in journalism, in banking, and in fine arts; and for admission to the legal and accountancy professions. There were 10,453 entrants for the degree and professional examinations in 1955, compared with 12,084 in 1954 and 11,668 in 1953.

The number of entries for the University Entrance Examination in 1943 was 5,152, but the introduction of the accrediting system in 1944 saw the number in that year reduced to 543. Comparative figures for the last five years are given in the following table.

CandidatesAccreditedBy Examination
19512,0051,777
19522,0551,944
19532,1781,889
19542,4521,943
19552,5222,116

PUBLIC EXPENDITURE ON EDUCATION.—The following table shows the expenditure (after recoveries have been deducted) from public funds on each branch or service of education for the three years ended 31 March 1955. £

Expenditure Year Ended 31 March
195419551956
Expenditure from vote, Education—
  General1,844,8882,021,2342,219,602
  Buildings, land, furniture, and equipment4,095,3984,342,7846,928,722
  Primary education7,437,0218,313,1029,141,999
  Post-primary education3,366,1933,875,7124,431,159
  Higher education1,371,7241,476,7511,579,734
  Training of teachers1,115,5311,162,0311,264,377
  Maori schools402,191443,707475,073
  Education of the blind50,15458,92766,723
  Special schools134,149143,302147,205
  Child welfare430,231494,949511,629
  Miscellaneous grants218,500232,369324,247
  National Library Service152,221172,912193,895
      Totals, vote Education20,618,20122,737,78027,284,365
Expenditure from other sources—
  Vote, Education Buildings3,428,5562,671,3661,234,708
      Grand totals24,046,75725,409,14628,519,073

The foregoing figures do not include revenue received by University colleges from endowments, fees, etc., which are available for educational purposes. By the Land Act 1948 all education reserves were declared Crown land, and the revenues received as from 1 April 1949 were paid into the Land Settlement Account. The reserves vested in post-primary schools were also declared by the Education Lands Act 1949 to be Crown land subject to the Land Act 1948.

The following figures show the cost of education during the period 1945–46 to 1955–56.

Year Ended 31 MarchExpenditure from Public FundsExpenditure Per Head of Mean Population
 ££s.d.
19467,853,04941110
19478,711,6374185
19489,950,8185101
194911,023,0165197
195013,744,960761
195115,030,2017169
195217,648,562902
195321,338,12310124
195424,046,75711134
195525,409,1461214
195628,519,0731353

Education Buildings.—The increases in school population have led to an expansion of the school-building programme. The following numbers of classrooms were completed in recent years:

 PrimaryPost-primary
1951476141
1952589198
1953662234
1954526252
1955548259

Pre-school Education.—Children below the age of five are not enrolled in the State primary schools. They may be enrolled, however, at free kindergartens controlled by local Free Kindergarten Associations which are voluntary bodies formed for the purpose. In 1947 a Supervisor of Pre-school Services was appointed to the Department of Education. Since. 1942 the Government has made grants available to kindergarten students in training: in 1948 the Department undertook the payment of the salaries of kindergarten teachers and of full-time staff in training centres, and the system of payment of capitation grants to local Associations was discontinued. Subsidies on voluntary contributions raised for the purchase of land, erection of buildings, and purchase of initial equipment are paid by the Department. The number of trainees in 1955 was 143.

At the end of 1955 there were 11,596 children on the rolls of 168 from kindergartens (6,543 being enrolled for morning sessions and 5,053 for those held in the afternoon). In 1954 the corresponding figures were 10,640 and 156 respectively. As yet the system is far from universal, although, besides those enumerated, there were at the end of 1955, 112 nursery play centres (of which 14 were awaiting recognition) catering for 3,571 children, and a considerable number of private kindergartens the total enrolment of which is unknown.

Nursery play centres which meet a required standard in equipment receive a small subsidy from the Government.

PRIMARY SCHOOLS.—The primary-school system at the end of 1955 consisted of 1,938 public schools (including district high schools and intermediate schools or departments), 166 Maori village schools, 319 registered private primary schools (which included 11 Maori mission schools), and 3 lower departments of secondary schools. There were also 169 free kindergarten schools.

Lower departments of secondary schools may be run for pupils who have not passed Form II, provided that no part of the cost of instruction or of the maintenance of the department is met from public moneys. At the end of 1955 the total number of pupils in the three departments mentioned in the preceding paragraph was 112 with 4 teachers.

The curriculum of the primary school, as set out in the syllabus of instruction, includes character training, English, arithmetic, geography and history, arts and crafts (including needlework), nature study, physical education (including swimming), health education, and music. Teachers are advised on the teaching of nature study, physical education, and arts and crafts by itinerant specialists. At the Forms I and II levels woodwork and metalwork instruction is given to boys at manual-training centres, and girls are taught domestic subjects, including cookery and hygiene.

The syllabus as a whole has been revised in recent years. Textbooks in English and arithmetic are issued free to pupils in all schools, both State and private. A series of basic primer readers and a considerable amount of equipment for primer classes are also provided by the Government.

Public (State) Schools.—The figures tabulated below refer to pupils in public schools—i.e., all pupils in primary schools and intermediate schools and departments. Pupils in the secondary departments of district high schools are not included.

YearNumber of Schools (Including Intermediate Schools and Departments)Pupils at End of YearMean of Average Weekly RollAverage Attendance, Whole YearAverage Attendance as Percentage of Weekly Roll
19511,885267,273255,268231,61690.7
19521,889284,784270,835244,48090.3
19531,899300,508287,210262,62291.4
19541,913314,741301,862278,81392.3
19551,938321,405309,935284,98291.9

While the number of schools has declined, mainly owing to the consolidation of small rural schools, the total rolls have increased by 67,000 since 1950. The changes which have taken place in the size of schools may be seen from the following table.

Number of Public Schools19451955Increase (+) or Decrease (–)
Roll 70 and under1,412996–416
Roll 71 to 350446604+158
Roll 351 and over191338+147
    Totals2,0491,938–111

In each of the education districts are located Inspectors of Primary Schools who form part of the staff of the Department of Education. The total number of Primary-school Inspectors at 31 March 1956 was 62, allocated as follows: Auckland, 13; South Auckland, 9; Hawke's Bay, 4; Taranaki, 3; Wanganui, 4; Wellington, 9; Nelson, 2; Canterbury, 10; Otago, 5; Southland, 3. These figures exclude one Chief Inspector and four Inspectors in the Head Office of the Department.

The following table relates to pupils on the rolls of the public primary schools and Forms I and II only of intermediate schools at 1 July in each of the years shown.

Age in Years1953: Total Pupils1954: Total Pupils1955Percentage of Total Pupils
BoysGirlsTotal Pupils195319541955
5 and under 639,30540,01820,37519,13639,51113.813.512.9
6 and under 741,02841,43420,88019,61740,49714.413.913.2
7 and under 834,39241,13221,26220,11241,37412.113.813.5
8 and under 932,51135,19521,12220,19741,31911.411.813.5
9 and under 1030,85932,48517,77516,78834,56310.910.911.3
10 and under 1127,24930,80216,74315,91332,6569.610.410.6
11 and under 1230,54526,85015,92914,88130,81010.89.110.1
12 and under 1329,15729,35613,47012,42025,89010.39.98.5
13 and under 1414,13815,1728,5766,25314,8295.05.14.9
14 and under 154,3304,1992,6401,6044,2441.51.41.3
15 and under 165905252831684510.20.20.2
16 and over8868354277   
    Totals284,192297,236159,090147,131306,221100.0100.0100.0

In 1955 a total of 20,747 pupils (10,643 boys and 10,104 girls) left public primary schools as compared with 21,909 (11,111 boys and 10,798 girls) in 1954. Of those leaving in 1955, 19,588, or 94.4 per cent, had completed a course in Form II. The effect of the raising of the school leaving age in 1944 is reflected in the numbers who proceeded to full-time post-primary schooling. Of those leaving in 1955, 93.9 per cent (boys, 93.2 per cent, girls, 94.7 per cent) went on to post-primary schools, as compared with 76 per cent (boys, 74 per cent, girls, 78 per cent) in 1943. Of the pupils who left intermediate schools and departments in 1955, 96 per cent went on to post-primary schools.

The next table gives the number of public primary schools in each education district as at 30 November 1955, classified according to roll numbers. The number of intermediate schools and departments is also shown.

Roll NumbersEducation District
AucklandSouth AucklandTaranakiWanganuiHawke's BayWellingtonNelsonCanterburyOtagoSouthlandTotal
1–8    15431115
9–2430302047534214573333359
25–301613614914725109123
31–7064854136383518944246499
71–11038501419112410251615222
111–15019255131212114109120
151–1902026941063688100
191–2301254347468154
231–270873235121335
271–310762227234136
311–35063 637173137
351–3905241511252239
391–4301071 23216 32
431–470832136173337
471–510525143273133
511–55052 456 84 34
551–59028 316142 27
591–630114   2 1 220
631–67071 3 1 51119
671–71032 1 213  12
711–750631    1  11
751–7903  2 1 2  8
791–83042   2 2  10
831–87011     1  3
871–9101         1
911–95011        2
951–990 1        1
991–1030     1 1  2
1071–1110     1    1
Normal schools2    1 21 6
Intermediate schools and departments1372234134140
    Totals307296119164169214752951621371,938

Primary Schools for Maoris.—Over 60 per cent of the Maori children in New Zealand are educated in the public schools. At the end of 1955 there were 22,230 attending public schools out of a total of 35,115 Maori children receiving primary education in State schools.

The language of instruction in the Maori schools is English, but the schools are not completely English in outlook, for Maori arts and crafts, song, legend, and history are taught.

Methods of teaching are practical, and objectives closely related to the special needs of the Maori people. In many of the Maori schools, such equipment as woodwork rooms, cookery rooms, model cottages, baths, hot and cold showers, and laundries is supplied. Elementary agriculture and health education feature in every Maori school.

The number of pupils on the rolls of the 166 Maori village schools at the end of 1955 was 13,988 (including 1,103 European children), while the total roll number of the eleven Maori mission schools was 818.

The following table gives the principal statistics of Maori village schools during the last five years.

YearNumber of Schools at End of YearRoll at 1 JulyAverage Attendance, Whole YearAverage Attendance as Percentage of Weekly RollNumber of Teachers*
MaoriEuropeanMalesFemales

* Includes Junior Assistants (13 males and 79 females in 1955).

195115911,8581,12611,43988.0227311
195216212,1951,15211,56084.8236310
195316412,0161,52011,52388.4232288
195416412,3051,24911,42588.9247280
195516612,3511,24711,33388.3222293

Four Inspectors of Schools attached to the Department of Education are engaged in the inspection of Maori schools, mission schools, and secondary schools for Maoris.

Intermediate Schools.—Pupils on the rolls of the 25 intermediate schools and 15 intermediate departments at the end of 1955 numbered 17,353. The progress that is being made with the establishment of this type of school may be gauged from the fact that thirteen years earlier (1942) the number of pupils was 6,817. Of all children in Forms I and II of public (primary and intermediate) schools at the end of 1955, 29.4 per cent were enrolled at the intermediate schools. The average attendance during the year was 16,460. The ages of pupils on the roll at 1 July of each of the last three years were as follows.

Age, in Years195319541955
BoysGirlsTotalBoysGirlsTotalBoysGirlsTotal
Under 1179911708813322186168254
11 and under 121,8422,1243,9661,8892,1324,0212,4782,7095,187
12 and under 133,4513,2376,6883,7433,6747,4173,5343,2996,833
13 and under 141,8371,3413,1782,3171,6643,9812,2941,6793,973
14 and under 156374141,0516434281,071604386990
15 and under 1610765172134752097530105
16 and over1862426245011718
      Totals7,9717,27815,2498,8408,13016,9709,0828,27817,360

Private Schools.—No private school may be established unless application is first made to the Department of Education for registration. Certain standards of efficiency and suitability of staff, premises, equipment, and curriculum have to be fulfilled.

The following table contains the principal statistics of private primary schools for each of the last five years. The figures include Maori mission schools which are also shown separately in the summary table on page 171.

YearNumber of SchoolsRoll at End of YearAverage Yearly AttendanceTeachers
BoysGirlsTotalMalesFemalesTotal
195130818,82819,68438,51234,2351679311,098
195230619,75220,69240,44435,6741699451,114
195331020,82321,97642,79938,0451699681,137
195431721,70622,53444,24039,2641761,0071,183
195531922,56723,39645,96340,3161891,0561,245

The majority of the schools included in the preceding table are Roman Catholic Church schools, of which there were 251 at the end of 1955 with 39,332 pupils (19,566 boys and 19,766 girls) and 948 teachers (91 males and 857 females). The average attendance was 33,303. The remaining private schools comprised 54 church schools of other denominations with 235 teachers and 5,559 pupils, and 14 undenominational schools with 62 teachers and 1,072 pupils.

POST-PRIMARY SCHOOLS.—One of the most striking features in the development of New Zealand education—i.e., the marked increase in the proportion of pupils who proceed to some form of post-primary education at the conclusion of the primary course—has already been mentioned (page 177). The raising of the school leaving age to fifteen years from 1944, which had been foreshadowed over twenty years earlier in the Education Amendment Act 1920, stimulated the movement towards secondary education for all. This movement began in 1901 when free places were introduced in district high schools. In 1903 it became obligatory on all State post-primary schools to provide some free places, and from 1914 every child who had passed the Proficiency Examination was entitled to free education for at least two years in any State post-primary school. In 1936 the Proficiency Examination was abolished, and every child gaining a Primary School Certificate or attaining the age of fourteen years became entitled to free post-primary education until the year in which he reached the age of nineteen years; extension beyond the age of nineteen is allowable in special cases approved by the Minister of Education. In 1945, when it became clear that secondary education for all was no longer a programme but had become a reality, the post-primary syllabus was revised. The whole course was based on a common core, consisting of English, social studies, general science, elementary mathematics, music, arts and crafts, and physical education, to be followed by a degree of specialization within a wide range of subjects that may be taken to the School Certificate stage. All types of post-primary schools are required by regulations made in 1945 (consolidated and amended in 1954) to give to all pupils during the first two years of post-primary course a minimum number of units of instruction in the common core subjects.

Post-primary schools are either public (State) or private. The following table shows the number and types of post-primary schools in existence during each of the last five years.

YearState Secondary SchoolsCombined SchoolsSecondary Departments or District High SchoolsTechnical High SchoolsMaori Secondary Schools*Endowed and Private Secondary SchoolsTotal

* In addition there was one farm training school classed as a Maori secondary school.

1951407110301074271
195240711,2301079278
1953427109331084285
1954527107341086296
1955597114331289314

A combined school is an amalgamation of a secondary and a technical school under a single governing body. District high schools are public primary schools with a secondary “top” and the basic course is academic, as in the normal secondary school. Where staffing and equipment allow, special courses are provided in agriculture, commercial work, and domestic science. Technical schools are described later in this Section.

Until 1904 secondary schools were established by special (local) Acts of the General Assembly, and until recently the majority of schools giving post-primary education had been established in this manner. At the present time the provisions of the 1914 Education Act allow the Minister of Education to establish such schools. State secondary schools and combined schools are controlled by Boards of Governors, and district high schools by the Education Boards.

The inspection of State post-primary schools is carried out by Inspectors of Post-primary Schools attached to the Department of Education. Commencing in 1947, these Inspectors took over the inspection of secondary departments of district high schools which were previously inspected by Primary-school Inspectors. There were (in 1956) 30 Inspectors, one Chief Inspector of Post-primary Schools, and one Superintendent of Technical Education.

The number of pupils at the end of each of the last five years is shown in the following table. No account is taken of lower departments of secondary schools, and in the case of district high schools only the secondary departments are included.

YearState Secondary SchoolsCombined SchoolsDistrict High SchoolsTechnical High SchoolsMaori Secondary SchoolsEndowed and Private Secondary SchoolsCorrespondence SchoolTotal
195120,3413,5797,19514,8718639,79145757,097
195221,8723,8137,94616,17987110,41343561,529
195323,9244,0908,70918,13683411,30348267,478
195430,2034,6078,36418,26886012,51443175,247
195535,0594,9358,87618,29288513,66645282,165

In addition to the foregoing, there were, in July 1955, 38,416 part-time students attending technical classes, 1,946 students receiving part-time tuition from the Correspondence School, and 2,187 students receiving part-time instruction from the Technical Correspondence School.

The numbers of each sex attending post-primary schools at the end of 1955 were: State secondary schools, 17,626 boys and 17,433 girls; combined schools, 2,711 and 2,224; secondary departments of district high schools, 4,210 and 4,666; technical schools, 10,360 and 7,932; endowed and registered private secondary schools, 6,363 and 7,303; Maori secondary schools, 478 and 407; and full-time at correspondence school, 174 and 278.

Technical Schools.—The technical schools fall roughly into two types; (a) those in the small centres, which provide for all the post-primary needs and are distinguishable from secondary schools only by having in general a rather more strongly developed practical side; and (b) the large technical schools in the main centres, in which there is less evidence of the generalized academic curriculum, since this is adequately provided by the city secondary schools.

However, even in the latter type most of the courses in the day schools are still designedly pre-vocational and not genuinely “technical” in character. Technical schools are normally controlled either by a Board of Managers or by the Education Board of the district acting in a similar capacity.

There were thirty-three technical schools in 1955. The following table shows the number of pupils taking the different courses available (as at 1 July in each of the last five years).

Course19511952195319541955
Industrial5,5935,6836,2986,6176,629
Commercial and general7,0587,7319,1369,1729,236
Domestic2,9032,9363,0962,9582,928
Agricultural1,0301,0751,3641,0681,193
Fine arts182229212212158
      Totals16,76617,65420,10620,02720,144

Technical Classes.—The number of centres at which technical classes for part-time day and evening students are provided was 158 in 1955.

The number of individual students including apprentices attending day classes in 1955 was—

Classes conducted by Education or High School Boards13,210
Classes conducted by Technical School Boards or by Managers25,206

Of the total of 38,416 students, 31,231 (16,818 males and 14,413 females) held free places.

The above figures do not include 4,133 part-time students at 1 July on the rolls of the Correspondence and Technical Correspondence Schools.

Technical Correspondence School.—In July 1946 the Department took over the responsibility for the study courses previously conducted by the Army Educational and Welfare Service. A Technical Correspondence School was established in Wellington to develop these courses for men in the Armed Services, and also to provide correspondence instruction in vocational and technical subjects for apprentices and advanced students unable to attend technical schools or classes.

The number of students on the roll at 1 July 1955 was 2,143. There were 37 full-time teachers besides the Principal on the staff at the end of the year 1955.

Probable Destination of Post-primary Pupils.—An indication of the vocations intended to be followed by pupils leaving public post-primary schools during 1955 is contained in the next table. Of the totals, 4.8 per cent of boys and 2.1 per cent of girls intended to proceed to full-time University studies, while a further 1.9 per cent of boys and 6.2 per cent of girls stated their intention of entering the teaching profession. Clerical occupations (including typing) claimed 15.1 per cent of boys and 34.0 per cent of girls; shops and warehouses, 7.5 per cent and 14.8 per cent; manual trades, 304 per cent and 1.6 per cent; farming 20.7 per cent and 0.9 per cent; 04 per cent and 13.6 per cent intended to stay at home; various other occupations claimed 13.5 per cent and 20.7 per cent; while 5.7 per cent and 6.1 per cent of boys and girls respectively did not know their future vocations at the time.

OccupationSecondary SchoolsCombined SchoolsTechnical High and Day SchoolsDistrict High SchoolsTotals
BoysGirlsBoysGirlsBoysGirlsBoysGirlsBoysGirls
University college4251958034832066594255
Teacher or teacher training college1484871361531192163235730
Professional cadetships1802919 77327530337
Health Services5957164928191 16093971
Office work—
  (a) Government or local body2284536781136270832075141,011
  (b) Industry and commerce6141,543952312761,005582461,0433,025
Shop and warehouse assistants378697601473695921172849241,720
Skilled trades–
(a) Government or local body16771632883741854531
(b) With private employers1,13192227131,49146337223,186173
Farming (including those engaged at their own homes)96050181374318665412,549112
Clothing workers22212 1011312326965603
Factory operatives8110934191161324365274325
Domestic work and at home34584 95743810507511,624
Armed forces (not included elsewhere)144226 126847234312
Other occupations34124544729021720041875510
Not known248262 513913467370712729
      Totals5,1605,5388688044,4853,7201,7931,80612,30611,868

Duration of Stay at Post-primary School.—The following table gives particulars of pupils who left public post-primary schools in 1954, classified according to years of attendance. The approximate average length of stay at the various types of school was: secondary schools, 3 years; combined schools, 3 years; technical high and day schools, 2 years 5 months; secondary departments of district high schools, 2 years 4 months; all post-primary schools, 2 years 8 months.

Year of AttendanceSecondary SchoolsCombined SchoolsTechnical High and Day SchoolsDistrict High SchoolsAll Schools
NumberPer CentNumberPer CentNumberPer CentNumberPer CentNumberPer Cent
First8678.11478.81,22314.968118.92,91812.1
Second3,16829.653331.93,69044.91,51342.08,90436.8
Third3,13429.349129.42,19826.998027.26,80328.1
Fourth2,22320.828517.083410.237510.53,71715.4
Fifth1,22311.420212.12402.9451.31,7107.1
Sixth and over830.8140.8200.25011220.5
    Totals10,698100.01,672100.08,205100.03,599100.024,174100.0

It has been mentioned earlier that, except in special circumstances, children are not permitted to leave school until they reach the age of fifteen years, and it would appear that many pupils entering post-primary schools remain there only as long as they are required to, as approximately 45 per cent do not proceed beyond the second year of attendance.

Secondary Schools for Maoris.—At the end of 1955, 818 Maori pupils were receiving post-primary education at the 11 Maori secondary schools, 219 of the total being Government scholarship holders. In addition, there were 55 scholarship holders enrolled in public post-primary schools.

A further step forward in the provision of post-primary education for Maoris was the approval of the establishment of Maori district high schools. These schools, unlike the private denominational schools, are controlled by the Department of Education; they provide courses of a practical nature specially suited to the needs of the Maori pupils. There were 13 such schools at the end of 1955.

Secondary School Bursaries.—Under regulations made in 1943, bursaries, of a maximum annual value of £40 and tenable for a period of up to two years, may be granted to pupils obliged to live away from home in order to take a Sixth Form course at a post-primary school (public or private) which is approved for accrediting purposes. In order to qualify, applicants must be under eighteen years of age and must have passed either the School Certificate or the University Entrance Examinations or have been accredited for the latter.

Technical School Bursaries.—Bursaries of a maximum value of £40 may be awarded to pupils who have completed at any post-primary school a two years' course preparatory to a specialized course in agriculture, fine arts, engineering, building construction, commerce, or home science which can be completed only at some technical school. The bursaries are tenable at post-primary schools approved for that purpose and may be held for a maximum of two years. Applicants must be under the age of seventeen years at the commencement of the specialized course and must be obliged to live away from home in order to receive satisfactory instruction in the courses to be followed.

VOCATIONAL GUIDANCE.—Since 1938 full responsibility for the work of vocational guidance of pupils at post-primary schools, which for some years had been carried on almost entirely by voluntary organizations, has been taken by the Government. Vocational guidance officers were appointed in each of the four chief centres; and educational guidance officers, known as “careers advisers,” were also selected at certain large post-primary schools to work in conjunction with the district vocational guidance officers. So far as the work of finding positions for children leaving school was concerned, the vocational guidance officers acted in collaboration during the war with the Man-power Officers of the National Service Department, and in each of the four main cities a “Youth Centre” was established where the work of guidance and placement was undertaken jointly by officers of the Education and National Service Departments.

The Department of Education assumed the full control of the youth centres in 1943, and the staffs of the centres (now called Vocational Guidance Centres) have been greatly strengthened and their activities expanded. Offices have been opened in the four main centres and in Lower Hutt and Hamilton. The Vocational Guidance Officers are, however, in close contact with the post-primary schools in other centres. The Vocational Guidance Officers, acting in conjunction with headmasters and special careers teachers in the schools, offer their services at any point in the child's career where a choice has to be made, whether of school course or of vocation. When a child has made his choice of career the Vocational Guidance Officer will if requested find suitable employment for him and endeavour to follow up his progress until he is finally and satisfactorily settled in his line of work.

The centres are in frequent touch with a number of voluntary agencies such as “Heritage,” Crippled Children Society, and lay Tuberculosis Associations.

For the year ended 31 December 1955 the total callers at the centres numbered 15,983. In addition, 9,272 pupils were interviewed individually in post-primary schools. Group interviews were carried out with 358 groups of children (numbering in the aggregate several thousands) interested in discussing particular vocations. Other activities, apart from attention to numerous inquiries by letter and the preparation of information sheets covering over one hundred occupations, included 1,025 visits to schools, addresses at 184 meetings, and 493 follow-up visits to persons placed in employment.

RURAL EDUCATION: Consolidation of Schools.—In order to give children in country districts the advantages of special equipment and more specialized teaching in larger schools, the consolidation of the smaller rural schools has been undertaken wherever practicable. The extent of this consolidation will be evident from the fact that, whereas in 1934 there were 2,532 public primary (excluding intermediate) schools, the number in 1955 had fallen to 1,898. The fall in numbers is also due in part to the exclusion since 1946 of part-time and side schools from the totals. There were approximately 80 such schools in 1934 and 40 in 1946.

Transport and Board.—A natural consequence of consolidation is the provision of adequate transport facilities to bring children into the centres. Free passes on the railway to the nearest public or private school are granted to eligible children living near a railway line but out of reach of a primary school, and the same privilege is enjoyed by pupils having to travel to attend secondary schools, combined schools, district high schools, technical high schools, and private secondary schools, as well as to part-time pupils travelling to attend technical schools or classes, and pupils attending manual-training centres.

Where railway facilities are not available or sufficiently convenient, transport of pupils is by motor vehicle, horse, or ferry. Transport by buses operated either by the Department or by private operators under contract with the Department is free. Where neither a departmental nor contract bus service is available assistance towards the cost of transport is met by payment of a conveyance or horseback allowance.

The expenditure on transport of pupils for the financial year 1955–56 was £1,402,621, as compared with £1,302,596 in 1954–55.

The expenditure on boarding-allowances of pupils attending schools for the last three years is given in the table below.

 1953–541954–551955–56
 £££
Public primary and intermediate9,8077,1589,137
Private primary6,0387,7409,024
State secondary70,59872,19872,858
Maori3,8104,0783,694
Private secondary44,80847,45448,873
      Totals135,061138,628143,586

The next table gives particulars of the number of children transported to school and the number in receipt of boarding allowance as at 1 July 1955, according to the type of school attended. Totals for the two preceding years are also shown.

Type of SchoolNumber of Pupils on RollTotal Pupils Transported to SchoolNumber Receiving Boarding-allowance
Public primary schools288,73247,861339
Intermediate schools and departments17,6371,39818
Secondary departments of district high schools9,9785,360102
Secondary schools36,5439,3601,775
Combined schools5,2441,070610
Technical schools20,1447,617510
Maori village schools13,5984,22457
Chatham Islands schools11643 
Private primary schools43,9442,945249
Private post-primary schools14,9701,6091,955
      Totals, 1955450,90681,4875,615
      Totals, 1954433,66678,0115,676
      Totals, 1953411,14374,1935,387

Correspondence School.—Since 1922 correspondence classes have been conducted for the primary education of children in very remote areas and of those unable to attend school on account of lengthy illness or other causes. In 1929 courses were extended to cover secondary education up to the stage of the University Entrance Examination. The usual subjects of the syllabus of instruction are taught at the school, and in addition pupils who require instruction which is usually available in a special class in a public school can receive instruction by correspondence. A corporate school spirit is developed through craft and club activities, weekly radio lessons, and personal visits from itinerant teachers. The work of the school has been greatly facilitated by the extension of the practice of visiting pupils in their homes. Vacation schools have been organized in various centres in order to give pupils the opportunity of doing practical work and of taking part in group activities.

Young persons in employment, including uncertificated teachers of small public schools, junior assistants in Maori schools, Post Office cadets, and others who are unable to attend post-primary schools for evening classes, also receive tuition as part-time pupils of the Correspondence School. One of the features of the school is the provision of instruction for pupils taking practical subjects, such as needlework, woodwork, practical agriculture, and science subjects.

At the end of 1955 there were 3,023 pupils on the roll of the Correspondence School, 1,226 being in the primary department and 452 full-time and 1,345 part-time students in the secondary department. The teaching staff of the school consists of a headmaster, 77 secondary, and 40 primary assistant teachers.

Agricultural Clubs.—More particularly in rural schools, practical interest in agriculture has been stimulated by the widespread formation of boys' and girls' agricultural clubs. The pupils undertake projects in livestock rearing and crop growing which are adjudged annually on the club field day, usually held at the school or local centre.

The agricultural instructors and nature study specialists employed by the Education Boards play an important part in the formation of the clubs, and by giving technical advice do much to assure the successful completion of the various projects. The clubs receive active support from parents, teachers, and the farmers' organizations.

HEALTH SERVICES.—Information on the medical and dental inspection of school children and the dental-clinic system is given in Section 5A (Public Health) of this Year-Book.

Free Issue of Milk.—The milk-in-schools scheme, for the free issue of a half-pint daily ration of milk to children, commenced on 1 March 1937. Information concerning this scheme is also contained in Section 5A.

TEACHING PROFESSION: Training of Teachers.—In 1956 there were six teachers' training colleges available to students who desired to enter the teaching profession, and at the end of 1955 there were 2,445 students in training. Of these, 2,260 were “Division A” students and 185 “Division C” students. The minimum academic qualification for “Division A” is the School Certificate Examination, while students of “Division C” must be University graduates.

The following table shows the number of students in training at the teachers' training colleges in December of each of the years 1951–1955.

YearMalesFemalesTotals
19518881,4302,318
19528181,4832,301
19538041,5502,354
19547621,6372,399
19557681,6772,445

The normal course of training for “Division A” students is a period of two years at a teachers' training college, followed by a further period of one year as a probationary assistant attached to a public school. Third-year studentships, which entitle holders to an extra year's training in lieu of a probationary year, are available to selected students who wish to specialise in nature study, music, physical education, or arts and crafts, or who wish to become speech therapists or teachers of the deaf. A limited number of selected students are permitted to spend most of the third year of training doing full-time study towards a University degree. There were 93 such students in December 1955. For students of “Division C” the course is for one year. These students are University graduates who train for service in post-primary schools. To enable students to qualify to teach homecraft subjects, bursaries providing training at a teachers' training college and at a technical high school were instituted in 1943. There were 84 homecraft trainees in the Auckland and Dunedin Training Colleges in 1955.

In order to meet future staffing requirements due to the rapidly increasing school population a special training scheme was started in September 1949 for selected trainees aged twenty-one years and over. In December 1955 the number of trainees taking the special one-year course at the training colleges was 170 (99 men and 71 women). The corresponding figure in December 1954 was 229 (148 men, 81 women). On completion of the special training-college course these trainees are required to serve for one year as probationary assistants before being granted trained teachers' certificates. These trainees are not included in the figures in the tabulation of students at training colleges shown earlier.

In 1948 a new Post-primary Teachers' Bursary scheme was instituted to enable suitable students, who had reached a standard of education at least equivalent to University Entrance, to complete approved degree courses in preparation for entry into the post-primary teaching profession. Candidates were required to have reached sixteen years of age by 31 December of the year of application for a bursary. The tenure was for a maximum period of four years. On completing their University courses students were required to attend a teachers' training college for one year as Division “C” students, and then to serve for a period of four or five years as teachers in post-primary schools. There were 480 of these bursars attending University colleges in 1955.

A maximum of twenty Physical Education Bursaries were also awarded annually to enable students to attend the School of Physical Education at the University of Otago for a three-year diploma course in physical education. The bursaries were of the same value as the Post-primary Teachers' Bursaries, and the bursars were required, on the completion of the course, to undertake work for a period of three or four years either as teachers of physical education or in some other occupation approved by the Director of Education. The number of such bursars attending University in 1955 was 55.

By 1955 it had been evident for some time that the value of these bursaries (£70 cash allowance plus payment of tuition fees, and £40 boarding allowance if the student was obliged to live away from home) was not attracting good students in sufficient numbers to supply the needs of the growing school population. Furthermore, there was a very high rate of loss during the years of study. During 1955 a new system of recruiting teachers for the post-primary service received Government approval and this was brought into operation in 1956. The Post-primary Teachers' Bursaries and the Physical Education Bursaries were replaced by the new Post-primary Teacher Studentships. To be eligible for one of these awards an applicant must have reached the age of 16 years on 31 December of the year of application, and must at the time of application have qualified for entrance to the University, or hold some equivalent or higher qualification approved by the Director of Education. Students are attached to the training college in the appropriate University centre, and a newly created senior lecturer, appointed to each training college, supervises the work of the students and assists them towards the completion of their University courses. Each student on accepting the award, signs an agreement that he will satisfy the stated conditions. One important condition is that if he does not achieve reasonable success in his University studies he will transfer to the Division “A” course at training college and there complete his training as a teacher.

The allowances payable are—

  • For the 1st and 2nd year of the studentship, £185;

  • For the 3rd and 4th year of the studentship, £285;

  • For the graduate training year—1st step on the teachers' basic scale (£530 for men, £455 for women).

Tuition fees are paid in addition to the above allowance. During the four years of the studentship a boarding allowance at the rate of £40 per annum is paid if the student is required to live away from home.

In 1956, 300 Post-primary Teacher Studentships were awarded.

Public Primary-school Teachers.—The following table shows the number of teachers in public primary schools in the various education districts as at 30 November 1955, together with totals for 1954, 1953, and 1940.

Sole TeachersHeads of SchoolsAssistant TeachersProbationary AssistantsTotal Number of TeachersPercentage of Male to Female Teachers
M.F.M.F.M.F.M.F.
Education District—
  Auckland4832385546884891531,96688.1
  South Auckland49222810300612341031,33884.0
  Taranaki29283395177113943998.6
  Wanganui606915138254195863195.3
  Hawke's Bay6489311422413533617118.0
  Wellington53111331331353259841,19887.1
  Nelson272423721031027286111.8
  Canterbury86131831037958975941,429102.4
  Otago47410251962453656691122.9
  Southland43588 1021421625421144.7
Intermediate schools and departments  25 340249  614146.5
      Totals, 1955506561,306552,6234,0283846729,630100.1
      Totals, 1954520671,250612,4943,9274056269,35099.7
      Totals, 1953519781,213762,3133,7574406329,02898.7
      Totals, 19406443639911478862,3902274386,58671.6

Between 1940 and 1955 the total number of teachers increased by 3,044, male teachers contributing 2,071 of this increase and female teachers 973. The average number of pupils per teacher was 27.3 in 1940, 28.5 in 1952, 29.0 in 1953, 29.8 in 1954, and 29.6 in 1955.

Post-primary-school Teachers.—The following table indicates the number of full-time teachers employed in the post-primary schools mentioned. The principals are included except in the case of district high schools, the figures for which apply to assistants in the secondary department only.

YearSecondary SchoolsDistrict High SchoolsTechnical High SchoolsCombined SchoolsGrand Total
MalesFemalesMalesFemalesMalesFemalesMalesFemales
1951527447308102564263103702,384
1952572461334116632273114722,574
1953621503344122696303116772,782
1954813614340115691294126813,074
1955950668377116687298137923,325

Male teachers employed in post-primary schools fell from 908 in 1940 to 707 in 1942, this decrease being almost entirely due to enlistment in the Armed Forces. The position was slightly improved in 1943, and each succeeding year has shown a further advance, the number in 1955 being 2,151, an increase of 1,243 as compared with 1940. The number of female teachers rose from 630 in 1940 to 838 in 1945, this increase being partially due to the employment of women during the war period in positions normally occupied by men. There was a fall to 795 in 1946, but the number at the end of 1955 (1,174) was 544 in excess of the number employed in 1940. Teachers employed in private post-primary schools and Maori secondary schools are not included in the figures. In 1955, 681 full-time teachers (314 male, 367 female) were employed in these schools.

TEACHING AIDS.—Regular broadcasting programmes for schools were initiated in 1931. A varied series of programmes linked with the curriculum are broadcast each school day from all main national stations. Special lessons are also broadcast each day for Correspondence School pupils.

Visual Aids.—The National Film Library, a branch of the Department of Education, lends films free of charge to schools and to organizations having some educational purpose. More than 1,300 schools have 16 mm. sound projectors.

Film strips are also available on free loan from the film-strip libraries in the offices of Education Boards. They can also be purchased for a nominal sum from the National Film Library. About two-thirds of the schools are equipped with film-strip projectors.

Museums.—To assist schools to make the fullest use of the museums, an education officer is attached jointly to the museum and the teachers' training college in each of the four main centres. Cases of exhibits are circulated amongst schools where pupils are unable to make regular visits to a museum.

Publications.—The School Journal, an illustrated paper, is published regularly in four separate parts suitable for pupils in the various standard classes. Five Primary School Bulletins, dealing with topics of New Zealand history, geography, and nature study, are published every year. These publications are prepared in the Department of Education and issued free to all primary and intermediate schools, both State and private. Vernacular Journals are also issued to schools in Western Samoa and the Cook and Niue Islands.

The Post Primary School Bulletin is published ten times a year and issued free to all public and private post-primary schools. It provides background reading for subjects of the revised curriculum, particularly in social studies, science, and literature.

A bi-monthly Gazette, mainly for the information of teachers, is published by the Department. It is a medium for the dissemination of official information and for the advertisement of vacancies. Copies are distributed to educational authorities and to State schools throughout New Zealand.

Education, a magazine for teachers, is published three times a year.

As stated under an earlier heading, textbooks, prepared in the Department of Education, are issued free to all pupils in public and private primary schools.

HIGHER EDUCATION: New Zealand University.—Control of higher education in New Zealand is vested in the New Zealand University, founded by the New Zealand University Acts of 1870, 1874, and 1875.

The University was formerly an examining, not a teaching, body with four teaching institutions affiliated to it—the Auckland University College, founded in 1882; Victoria University College, founded in 1897 at Wellington; Canterbury University College, founded in 1873 at Christchurch; and Otago University, founded in 1869 at Dunedin. By the New Zealand University Amendment Act 1926 the constitution of the University was altered so that it now actually consists of the four University colleges. Each of the colleges, besides offering courses in the faculties of arts, science, commerce, law, and music, specializes in certain fields. Otago University has medical and dental schools, a school of mining and metallurgical engineering, a school of home science, and a school of physical education; Canterbury University College has a school of engineering (mechanical, electrical, civil, and chemical), and a school of fine arts; Auckland University College has a school of architecture, a school of fine arts, a school of engineering (mechanical, electrical, and civil), and a post-graduate department of obstetrics and gynaecology; and Victoria University College has a school of public administration, and a school of social science. There are also two agricultural colleges—viz., Massey and Canterbury—associated with the University (see page 192).

In 1930 a New Zealand University Amendment Act was passed to enable the University to discharge its functions under the Law Practitioners Amendment Act 1930. For this purpose a Council of Legal Education was established to make recommendations to the Academic Board of the University with respect to any matter relating to legal education. Further, the Senate of the University in making or altering statutes concerning legal education must first consider any recommendations made by the Academic Board or the Council of Legal Education.

The provisions of the New Zealand University Amendment Act 1930 were amended in 1956 to allow the Council of Legal Education to make representations directly to the Senate, instead of to the Academic Board. A copy of any such recommendation to the Senate must be sent to the Academic Board so that it may forward to the Senate its comments on the recommendation.

By means of an amendment to its own statutes and with the consent of the colleges, the University has set up a University Grants Committee, through which applications for grants are placed before the Government.

The New Zealand University Amendment Act 1954 provided for the establishment of a Curriculum Committee to which the Senate of the University might delegate certain powers of approving courses, and which might in its turn delegate certain powers to the colleges. The effect of this Act was to make it possible for the colleges to achieve a considerable degree of autonomy in academic matters.

In 1955 there were 10,849 students actually in attendance at the four University colleges and the two agricultural colleges. Of these, 994 were graduates, 7,953 undergraduates, and 1,902 unmatriculated students. Of the unmatriculated students, 891 were taking short courses at the agricultural colleges. A small number of the unmatriculated students are returned servicemen, who are admitted under special terms. In addition, there were 893 students attached to the various University colleges, but exempt from lectures. Comparable figures for the five years quoted are given in the following table.

YearStudents Attending LecturesExempt StudentsTotal
MalesFemalesMalesFemales
19518,1622,52288212511,691
19527,7932,57283310711,305
19537,9442,60380811211,467
19547,9272,63782312311,510
19558,2022,64777911411,742

The numbers of male students attending lectures in the last five years are substantially above those of pre-war years, although there was a decrease of 915 between 1947 and 1955. The peak was reached in 1947, the number in that year being 5,052, or 124 per cent, above 1939. The number of female students attending lectures has also increased. The figure for 1955 is greater than that for 1939 by 1,362, an increase of 106 per cent. Students exempted from attendance at lectures increased in number during the post-war years, but their number declined after 1948, and in 1955 they represented 7.6 per cent of all students (11.8 per cent in 1948). The award of rehabilitation bursaries to ex-servicemen no doubt contributed to the high figures from 1946 to 1948. Holders of rehabilitation bursaries fell from approximately 3,400 in 1946 to 85 in 1955. Indications are therefore that an increased proportion of young people in the relevant age-groups is continuing education at the University level, so that the falling-off in numbers of ex-servicemen is being almost balanced by increases in numbers from other sources.

Professors attached to the various University colleges in 1955 numbered 97, of whom Auckland had 22; Victoria, 19; Canterbury, 18; Otago, 30; Massey, 5; Canterbury Agricultural, 3. In addition there was a considerably larger number of full-time lecturers, part-time lecturers, and assistants.

The following table gives particulars of students who were taking definite courses during 1955 and each of the preceding two years.

Course195319541955
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Agriculture—
  Degree923957447883184
  Diploma288529329673032996305
  Other761777627896197
Architecture—
  Degree761777738090393
  Diploma402424014137441
  Other712736616783184
Arts2,3011,3333,6342,2061,3733,5792,0981,4583,556
Commerce1,421851,5061,479831,5621,529791,608
Dentistry158516315531581586164
Divinity263293233537138
Education: Diploma93311241172213911837155
Fine Arts: Diploma458613137771143469103
Engineering378 378316 316414 414
Home Science—
  Degree 4040 3131 3131
  Diploma 8080 8787 9898
Horticulture: Diploma271340271340201333
Journalism: Diploma1812308917111627
Law617266437182974775729786
Medical Science4 44 431334
Medicine500565564815353447457531
Mining: Diploma4 43 37 7
Music69101170751121876585150
Physical Education: Diploma194059274774245074
Public Administration: Diploma12 1210 109 9
Science (including Medical, etc., intermediate)1,6552621,9171,6012451,8461,6172421,859
Social Science: Diploma1114251013239716
Other courses234871225173194766
      Totals8,0242,24910,2737,9572,26910,2268,1192,34410,463

Free University Education.—Free University education was instituted in 1911 for all holders of University Scholarships and, in more recent years, increasing numbers of bursaries have been awarded. The most important awards for those entering the University are the ten University Junior Scholarships awarded by the University of New Zealand, and the twenty-five University National Scholarships for which funds are provided by Department of Education. Both are tenable for four years and provide full tuition fees, a scholarship allowance of £80, and an additional allowance (£60 for the former and £50 for the latter) for students who have to live away from home. These scholarships, together with the Taranaki Scholarship and certain privately endowed scholarships, are awarded on the results of the Entrance Scholarships Examination conducted by the University of New Zealand.

Scholarships awarded during the degree course are the University Senior (£90 per annum) and John Tinline Scholarships (£90 per annum). The various colleges also have private scholarships for which their own students may compete. The scholarships awarded at the end of the University course, which are listed in full in the University calendars, include the Rhodes Scholarships, the 1851 Exhibition Scholarships, the Post-graduate Scholarships in Arts and Science, the Travelling Scholarships in Commerce, Law, Engineering, Architecture, Medicine, and Dentistry, the Macmillan Brown Agricultural Scholarship, the Shirtcliffe Scholarships, the Gordon Watson Scholarship, the Shell Post-graduate Scholarship, the Michael Hiatt Baker Scholarship, the Rutherford Scholarships, the Orford Studentship, and the National Research Scholarships. All these are tenable abroad. In addition there are post-graduate scholarships tenable in New Zealand. The University of New Zealand also awards Research-Fellowships, the value of which is not fixed, but the normal grants have been approximately £300 per annum for a period of two years. Each University college may also award one Research Scholarship of an annual value of £200, tenable in New Zealand.

The system of bursaries for students entering upon a University course which has been in operation for a number of years was radically changed as the result of a Government decision made at the end of 1955. The new system came into effect from the beginning of 1956. No further Special Bursaries, National Boarding Bursaries, or ordinary National Bursaries will be awarded. Instead, the following kinds of bursaries are tenable for four years, except for students studying medicine, dentistry, architecture, and engineering, for whom payment for a fifth year is provided.

Entrance Bursaries are awarded to part-time or full-time students who have qualified for entrance to the University either by examination or accrediting. These bursaries provide for payment of half-fees until the student has passed the equivalent of three Stage I Arts units; thereafter full fees are payable for the balance of the term for which the bursary is awarded.

H.S.C. Part-time Bursaries are awarded to part-time students who are holders of the Higher School Certificate. These bursaries provide for payment of full tuition fees.

H.S.C. Full-time Bursaries are awarded to full-time students who hold the Higher School Certificate and who are living at home. In addition to full fees, bursars receive a bursary allowance of £40 a year.

H.S.C. Boarding Bursaries are available to full-time students who are similarly qualified but who are required to live away from home or their usual place of residence in order to attend a University college affording tuition in the subjects appropriate to their course and year. The bursary provides for full fees, a bursary allowance of £40 a year, and a boarding allowance of £50 a year.

A Bursary Allowance for Special Merit to the value of £20 in addition to the allowances already mentioned is paid to each of not more than 150 bursars who are commencing the final year of their bursary and who are nominated by the University of New Zealand for the award.

All these bursaries are subject to strict rules as to suspension and cancellation. A student who in any year does not pass in a prescribed number of units will have his bursary suspended and it will not be reinstated unless in the following year he is credited with a prescribed number of passes. Only one such suspension is allowed and subsequent failure results in cancellation of the bursary.

Full details of the amounts payable and other qualifying conditions for the various classes of bursaries are available in a vocational guidance pamphlet issued by the Department of Education annually entitled “Next Year”.

The Government offers for competition annually two bursaries to students wishing to attend the School of Social Science at Victoria University College. Preference is given to candidates nominated by non-State organizations engaged in social work. These bursaries provide for full fees, a bursary allowance of £80, and a boarding allowance of £50 where appropriate.

The total number of University National (ordinary and boarding) and Special Bursaries current in 1955 was 3,699.

Bursaries, etc., are also awarded annually by other Government Departments and include Medical and Dental Bursaries (Department of Health), National Research Scholarships and National Research Fellowships (Department of Scientific and Industrial Research), Rehabilitation Bursaries (Rehabilitation Board), Coal Mining Bursaries (Mines Department). Study awards are made to selected public servants to enable them to undertake University study. The Department of Education has a very generous system of studentships available for those intending ultimately to qualify as post-primary teachers.

From the table given below will be seen the number of students, including those taking short courses at agricultural colleges, who received free University education during each of the last five years.

YearJunior University, University National, and Taranaki ScholarshipsSenior University ScholarshipsUniversity National (Ordinary and Boarding) and Special BursariesTraining-college StudentshipsOtherTotal
1951104243,6107191,4195,876
1952124223,5105011,4105,567
1953125193,6235411,4165,724
1954124223,6155231,2585,542
1955126193,8995421,1695,755

Holders of rehabilitation bursaries numbered 85 in 1955, 140 in 1954, 255 in 1953, 384 in 1952, and 572 in 1951.

Agricultural Colleges.—There are two agricultural colleges specializing in higher agricultural education—Massey Agricultural College, near Palmerston North, and Canterbury Agricultural College, near Christchurch. The colleges are separately governed, though both are attached to the University of New Zealand. The total number of students at Massey College in 1955 was 495 and at Canterbury 846. These numbers include 271 students at Massey and 620 at Canterbury Agricultural Colleges taking short courses.

Encouragement in the development of higher agricultural education is given through Government grants to the colleges, amounting to £190,662 in 1955–56. Various research projects at the colleges have been aided by expert assistance and grants from the Department of Scientific and Industrial Research.

CHILD WELFARE.—The Child Welfare Act of 1925 provided for the creation of a special branch of the Department of Education now known as the Child Welfare Division. The Act was passed to make better provision with respect to the maintenance, care, and control of children who are placed specially under the protection of the State, and to provide generally for the protection and training of indigent, neglected, and delinquent children. The meaning of the expression “delinquent” was extended by a 1954 amendment to the principal Act.

An important section of the Act provided for the establishment of Children's Courts, to be presided over by Stipendiary Magistrates or Justices specially authorized to exercise jurisdiction in these Courts. Any necessary acts preliminary to the hearing, however, may be done by any Magistrate or Justice. Provision was also made for the appointment of honorary associates of either sex, whose function it is to consider all the facts concerning children brought before the Courts and to advise the presiding Magistrate or Justice as to what action should be taken. The appointment of Child Welfare Officers for the investigation of all cases coming before the Courts was also provided for. These investigations are carried out mainly by the regular officers employed by the Department, but in outlying districts the services of honorary child welfare officers are utilized for this important work. At 31 March 1956 there were 162 men and women serving as honorary child welfare officers.

The principle of dealing with children in the privacy of the Magistrate's room had been followed for many years throughout New Zealand, and the Child Welfare Act was designed to give legality to such a practice. Very wide discretionary powers are given to these special Courts in dealing with children. The ordinary procedure of requiring the child to plead, of taking evidence on oath, and, indeed, of hearing the particular charge may be dispensed with altogether. Wherever practicable the Children's Court is held in premises apart from the ordinary Police Court, and no newspaper is permitted to publish either the names of children appearing before these Courts or any particulars that are likely to identify a child.

A child was originally defined for purposes of the Act as one under sixteen years of age. This age was raised to seventeen in 1927.

Children's Courts deal with cases of children brought either (a) on a complaint under the Child Welfare Act that a child is neglected, indigent, delinquent, not under proper control, or living in a detrimental environment or (b) charged with an offence. After hearing the complaint or the charge and in the light of the Child Welfare Officer's report, the Court may, according to the needs of the case, commit the child to the care of the Superintendent of Child Welfare, or place him under supervision of a Child Welfare Officer for a period (usually one year or two years) or discharge him with an admonishment and, on occasion, an order for restitution or a fine.

The numbers of children appearing before the Children's Courts in the last three years (ended 31 March) were as follows.

 195419551956
On “complaints” (under the Child Welfare Act)424440332
For offences (including offences against Acts, regulations, or by-laws)2,0182,2532,638
      Totals2,4422,6932,970

On the basis of the total juvenile population of New Zealand at the time, the incidence of appearances for offences is shown as follows.

 195419551956

* Number of cases per 10,000 of the population aged seven to seventeen years.

Total Court appearances for offences2,0182,2532,638
Rate*545761
Court appearances for all more serious offences (excluding offences against special Acts, regulations, or by-laws)1,4091,6221,695
Rates*384141

The decisions made in the Children's Court during the year ended 31 March 1956 are shown in the summary below.

DecisionYear Ended 31 March 1956
Committed to the care of the Child Welfare Superintendent413
Placed under supervision of Child Welfare Officers987
Admonished and discharged with or without costs, restitution, or fine1,234
All other decisions336
      Total2,970

Most of the children who are committed to the care of the Superintendent of Child Welfare and who are thereby under his guardianship are placed by him and his officers either in foster-homes and at school, or in employment and at private board. Only those who require special care and training which cannot be provided in the ordinary life of the community are placed in institutions administered by the Superintendent. Some few reside in private institutions—e.g., in post-primary school hostels.

Of the total of 7,165 children under the control and supervision of the Child Welfare Superintendent and his officers at 31 March 1956, 2,965 were under the guardianship of the Superintendent and a further 53 were in effect his wards for the time being. These 3,018 children were at that date placed as shown in the following summary.

 NumberPercentage of Total
Residing in individual private homes (foster-homes, employers' or relatives' homes)2,40779.8
In institutions administered by the Child Welfare Division (including those temporarily admitted)2719.0
In mental hospitals1103.6
In residential schools and colleges (including schools for handicapped children)1886.2
In hospitals, convalescent homes, etc.90.3
In children's homes (including orphanages, etc.)331.1

For the children requiring institutional care and training the Child Welfare Division administers several different types of institutions. The Girls' Training Centre at Burwood, Christchurch, and the Boys' Training Centre at Levin each provide for the more difficult or disturbed girls or boys. The centres are open institutions providing full educational facilities with qualified and trained teachers and also a wide range of vocational training. Another small institution at Featherston provides specially for Maori girls who, while not seriously difficult, require some training before placement in the community. Two small hostels for girls at Wellington and at Christchurch provide for those who, while in ordinary employment, require for the time being the conditions of supervision and care obtainable in a hostel. Receiving homes and boys' homes in several of the main centres provide for temporary care and observation.

Children placed by the Courts under supervision of Child Welfare Officers are supervised in their own homes, except that in a few cases, with the approval of the parents or guardians, the Child Welfare Officer arranges placement elsewhere—e.g., in employment. For most children placed under supervision the methods available thereby prove sufficient for the needs; where it is not sufficient the child usually appears before the Court again and is committed to the care of the Superintendent. There were 1,118 children under supervision at 31 March 1956.

Preventive cases, numbering 1,476 at 31 March 1956, consist of children who, without any Court appearance, are being supervised and assisted by Child Welfare Officers under arrangements made voluntarily with the parents or guardians.

As provided for in the Child Welfare Act 1925, Child Welfare Officers, on receiving notification from the Registrars of ex-nuptial births, make confidential inquiries and assist the mother as necessary in making provision for her child.

Child Welfare Officers administer the provisions of the Infants Act 1908 by which young children living apart from their parents or guardians are required to be in licensed foster-homes. At 31 March 1956, 1,159 such children were being supervised.

Also under the provisions of the Infants Act 1908, on request by a Magistrate to whom an application for the adoption of a child has been made, a Child Welfare Officer investigates the proposal and reports to the Court accordingly.

The Child Welfare Superintendent, under the provisions of the Child Welfare Amendment Act 1948, assumed guardianship of unaccompanied immigrant children from Britain on their arrival in New Zealand, and similarly of refugee children from other countries. He also had administrative responsibility for the Polish refugee children who came to New Zealand during the war.

COUNCIL FOR EDUCATIONAL RESEARCH.—In 1933 the Carnegie Corporation of New York set up a committee to report on the proposal to found in New Zealand a Council for Educational Research. This committee called a conference of representative educationists to consider the proposal, and approached educational authorities for their co-operation. In view of the unanimous support given to the proposal, the committee recommended the foundation of the Council, and in November 1933 the Carnegie Corporation appropriated a substantial grant for the purpose, payable in five yearly instalments, beginning in 1933–34. In 1938 the Corporation extended the grant to cover a second five-year period, from 1940 to 1944.

When the Corporation grants ceased in 1944 the Government passed legislation giving statutory existence to the Council, and since 1945 has made an annual grant of £3,000 to it. In 1953 the Government grant was raised to £4,000. The Corporation has continued to show an interest in the work of the Council, and from time to time has made smaller grants for specific purposes.

The Council has concentrated on New Zealand problems, and many of its publications (36 research reports and 14 shorter studies in education) consist of critical surveys on various aspects of New Zealand education and of accounts of outstanding experiments in school practice. The work done under the auspices of the Council has been carried out not only by its own permanent staff but also by part-time investigators.

In addition to its activities as a research organization, the Council acts as a clearing house for information on educational matters.

The Council's activities are under the control of a permanent officer (the Director), who is assisted by a staff of three. There are local Institutes for Educational Research in Auckland, Wellington, Christchurch, and Dunedin.

ADULT EDUCATION: National Council of Adult Education.—In 1938 an Education Amendment Act provided for the establishment of a Council of Adult Education to co-ordinate activities of adult education, to make recommendations to the Minister of Education concerning the amount and distribution of the annual grant, and to receive reports from the bodies to whom grants were made. The Adult Education Act 1947, which followed largely the recommendations of a Consultative Committee reporting in the same year, abolished the Council and set up a National Council of Adult Education with much wider powers. The functions of the National Council are—

  1. To promote and foster adult education and the cultivation of the arts; and

  2. To make recommendations to the Minister of Education as to the amount of the annual grant to be made to the National Council of Adult Education out of moneys appropriated by Parliament for the purpose, and to receive, administer, and control the expenditure of such moneys granted.

The National Council has power to appoint staff and to impose conditions on grants made by it. The full-time executive officer of the Council, the National Secretary of Adult Education, is located in Wellington. The National Council comprises the Director of Education, the Director of Broadcasting, the Director of the National Library Service, or their representatives; one member appointed by the Senate of the University of New Zealand; two members appointed by each of the four University Colleges; one member appointed by the Dominion Council of the Workers' Educational Association; one member appointed by the Minister of Education to represent the Maori race; and up to two members appointed by the Council itself.

Regional Councils of Adult Education.—Staff for field work in adult education is employed by the Councils of the four constituent colleges of the University of New Zealand. Each College Council has the advice of a Regional Council of Adult Education, to which certain of the powers of the College Council are delegated. The four Regional Councils are differently constituted, but the 1947 Act requires that at least one-half of the members shall be persons appointed on the nomination of voluntary associations or organizations engaged or interested in adult education in the district. In each region the teaching staff consists of a director, “general purpose” tutors, and specialist tutors. The work supervised by the Regional Councils covers a wide range of interests—lecture courses, discussion courses, and various forms of assistance to specially organized groups or groups formed originally for other purposes, in both town and country. An important recent development has been the establishment of the Community Arts Service, which arranges for visits of exhibitions, musicians, and drama and ballet groups to country centres. The Regional Councils also organize short-term summer and winter schools in town and country.

Voluntary Agencies.—The tutors, working under the direction of the Regional Councils of Adult Education, offer assistance to a large number of voluntary agencies such as Parent-Teacher Associations, Home and School Societies, Play Centre Associations, and groups concerned with drama, music, and art.

The Country Women's Co-ordinating Committee, representing both the Women's Division of Federated Farmers and the Women's Institutes, organizes classes in rural areas and is supplied with tutors by the Regional Councils.

The Workers' Educational Association operates in conjunction with the University Colleges and organizes classes, mostly one-year classes, in the main cities and in a few of the larger towns. Tutors for these classes are provided by the Regional Councils of Adult Education. The Regional Councils also now conduct much of the country work formerly organized by the Workers' Educational Association. The Workers' Educational Association is financed by grants from the National Council of Adult Education and donations from local authorities, trade unions, and private individuals.

Education of New Settlers.—The large number of new settlers who have come to New Zealand from European countries in recent years has led to the establishment of evening classes for teaching English and what may broadly be called civics. Several thousands of new settlers have now passed through these classes and many are now becoming naturalized New Zealand citizens. During 1956 the number of classes declined further with the falling off in the number of new settlers arriving, but approximately 30 classes were still operating with an enrolment of 450. For those persons not in the position to attend classes, a correspondence course is provided. Special textbooks and other material have been prepared for use by teachers and students.

Community Centres.—In 1938 an experimental Community Centre was established at Feilding under the supervision of two experienced educationists specially appointed to the staff of the Feilding Agricultural High School. Classes have been conducted in drama, child care, literature, art appreciation, and physical welfare, both at the centre and in outlying areas. In 1944 a community centre was opened in a suburb of Christchurch. More recently experimental centres have been opened in Westport, Wakari, and in the coal-mining districts of the Buller. All these receive some assistance, directly or indirectly, from public funds. There are, however, many other community centre schemes supported by voluntary effort.

The Adult Education Act 1947 gave the Minister of Education power to establish or recognize community centres and to make grants to them.

NATIONAL LIBRARY SERVICE.—The establishment of a National Library Service by the Minister of Education in 1945 followed a recommendation by the New Zealand Library Association. The National Library Service has four divisions—the Country Library Service, the School Library Service, the National Library Centre, and the Library School.

Country Library Service.—The Country Library Service, founded in 1938 under the control of the Minister of Education, has been extended through district offices for closer contact with participating libraries. It assists library authorities in country districts and towns with a population of less than 15,000 to give better service. Libraries in towns with a greater population, excluding the four main centres, receive assistance under certain conditions. Free loans of books are made to libraries controlled by local authorities, both borough and county, which operate a free service locally and maintain it at a reasonable standard of efficiency. Subscription libraries in country districts—i.e., outside the area of boroughs and town districts—may hire books at the rate of £3 for 50. Seven specially equipped vans, each carrying 1,600–2,000 books covering a wide range, travel over the whole territory so that both free and subscription libraries can make their own exchanges every four months. In between visits books go by post from the headquarters and district offices to libraries requesting them. Hampers of books are sent to isolated groups of readers.

Free public libraries which extend their service to general hospitals in their area receive special collections of books for the use of patients. A library service is given to lighthouses, and a service to Ministry of Works, State Hydro-electric, and New Zealand Forest Service camps has been given since 1949. Tuberculosis patients in sanatoria and in tuberculosis wards of general hospitals are served from a special collection of books built up to meet their particular needs. Mental hospitals receive collections of books which are exchanged regularly. Prisons and borstal institutions receive books and change them on the four-monthly visits of the travelling book vans.

The number of libraries obtaining books from the Country Library Service on 31 March 1956 was as follows: free libraries, 107; subscription libraries, 783; groups, 55; Ministry of Works, State Hydro-electric, and New Zealand Forest Service camps, 51; tuberculosis sanatoria, 18; mental hospitals, 13; hospitals, 14; prisons and borstal institutions, 13. Lighthouse staff receiving a library service numbered 100.

School Library Service.—The launching of the School Library Service, operating on a circulating basis, has been a most important development. This service, which is financed by the Department of Education and administered by the National Library Service, aims at giving children access to the best literature.

At 31 March 1956 the School Library Service was circulating loans of children's books to 2,437 schools, representing 273,918 children. The schools served are primary, intermediate, and district high schools, public and private, and include the Correspondence School.

A service is also available through which all schools, including post-primary, receive additional books on request. Approximately 247,943 requests were filled during the year ended 31 March 1956.

National Library Centre.—The National Library Centre is responsible for the professional work of the headquarters sections of the National Library Service, including the purchase of books and periodicals for Government Departments operating within the Public Account. It also undertakes various bibliographical projects such as the maintenance of the Union Catalogue of Non-fiction Books, the Union List of Serials, and a National Bibliography of New Zealand publications. The Centre's other main functions, developed in conjunction with the Book Resources Committee of the New Zealand Library Association, are concerned with the national system of inter-library loan and the necessary steps to ensure the availability through New Zealand libraries of at least one copy of all books of any consequence published in the English language.

Library School.—The Library School was established in 1946, and at the end of 1955 one hundred and eighty-nine students had taken the course.

The school offers professional training to those holding University degrees or with equivalent education. The course lasts from March to November.

Students receive allowances equal to those paid to graduate students of Teachers' Training Colleges.

Short courses for Librarians of smaller libraries were held in 1947, 1948, and 1950. A short course for Librarians of Government Departments was held in 1949, and in the same year the Library School collaborated in holding a short course for teacher-librarians. Since 1952, Part Two of the New Zealand Library Association's General Training Course has been carried out by a five weeks' course at the school.

Chapter 7. SECTION 7—SOCIAL SECURITY, PENSIONS, SUPERANNUATION, ETC.

7A—SOCIAL SECURITY

DEVELOPMENT.—The Social Security Act 1938, which came into operation on 1 April 1939, may be said to have as its principal aim the provision for payment of superannuation and other benefits designed to safeguard the people of New Zealand from disabilities arising from age, invalidity, widowhood, orphanhood, unemployment, sickness, or other exceptional conditions. Its two main objectives were—

  1. To substitute for the previous system of non-contributory civil pensions a system of monetary benefits on a contributory basis:

  2. The inauguration of a system of medical and hospital benefits and of other related benefits.

A brief history of the introduction of the principal classes of pensions superseded by the social security scheme, and of the former Pensions Department which administered them, is given on pages 451–452 of the 1947–49 issue of the Year-Book. In addition, four new classes of monetary benefits were inaugurated—the orphans' benefit, the sickness benefit, the emergency benefit (for cases of hardship), and the superannuation benefit.

The Social Security Amendment Act 1945 introduced a further important addition to the social legislation of New Zealand. It established the principle of universal family benefits, and from 1 April 1946 each mother receives a benefit in respect of each of her dependent children irrespective of the family income or property.

A further development in 1948 occurred with the passing of legislation providing for reciprocity of social security benefits with Australia, and reciprocity in relation to family benefits with Great Britain and Northern Ireland. The respective Acts were entitled the Social Security (Reciprocity with Australia) Act 1948, the Family Benefits (Reciprocity with Great Britain) Act 1948, and the Family Benefits (Reciprocity with Northern Ireland) Act 1948.

The first mentioned of these three Acts repealed the Age Benefits and Invalids' Benefits (Reciprocity with Australia) Act 1943, and came into force on 1 July 1949. In the 1948 Act the classes of benefits were extended and now cover the following: age-pensions and age benefits, invalid pensions (including wives' and children's allowances) and invalids' benefits, widows' pensions and widows' benefits, child endowment and family benefits, unemployment benefits, and sickness benefits.

The most recent development in social security reciprocity was the passing of the Social Security (Reciprocity with the United Kingdom) Act 1956, which extended reciprocity between the United Kingdom and Northern Ireland and New Zealand to cover age, superannuation, widows', orphans', invalids', sickness, and unemployment benefits. The operative date was 1 April 1956. Family benefits were already payable on a reciprocal basis as mentioned earlier.

ADMINISTRATION.—The Social Security Act 1938 established a Department of State entitled the Social Security Department, under the control of a Commission consisting of not more than three members. The Department administers, under the direction of the Minister of Social Security, Part II of the Act dealing with those monetary benefits to which reference has been made, while Part III of the Act, dealing with medical, hospital, and other related benefits, is administered by the Department of Health under the direction of the Minister of Health. Provision was made in the Social Security Amendment Act 1947 for the Social Security Commission, with the written consent of the Minister of Social Security, to delegate to any Registrar or other officer of the Department any of its powers under Part II of the principal Act.

The War Pensions Act 1954 (which consolidated and amended the previously existing legislation on the subject and incorporated the War Pensions and Allowances (Mercantile Marine) Act 1940) is also administered by the Social Security Department, one of whose officers is designated Secretary for War Pensions. It should be noted, however, that, unlike the benefits under the Social Security Act which are paid from the Social Security Fund (referred to later), war pensions are paid through the Consolidated Fund from general taxation.

FINANCIAL PROVISIONS.—Finance to enable the provisions of the Act to be carried out is provided for by the establishment within the Public Account of the Social Security Fund. The principal revenue of the Fund is derived from a charge (collected by the Department of Inland Revenue) on salaries, wages, and other income, including the income of companies, but the Act also makes provision for the payment to the Fund of such other moneys as may be appropriated by Parliament from time to time, and a substantial amount has been received from the Consolidated Fund each year.

The social security charge, which had been at the rate of 1d. for every 1s. 8d. or part thereof of income since the inception of the scheme, was increased in 1946 to 1d. for every 13 1/3d. or part thereof—i.e., 1s. 6d. in the pound. The increase, in the case of salaries and wages, became effective from and including 13 May 1946, while “other” income received during the year ended 31 March 1946 was subject to the increased rate.

In the case of salaries and wages the amount of the charge is deducted by the employer or other person by whom the wages or salaries are paid, while the charge on other income is payable by the recipient in equal instalments on 7 June and 7 November in the year following the financial year in which the income was derived.

Receipts.—Receipts of the Fund for the financial years 1951–52 to 1955–56 are given in the following table.

£

1951–521952–531953–541954–551955–56

* Includes for some years small amounts which are not chargeable against the amounts paid out under the heading of widows' benefits.

Charge on salaries and wages24,318,13826,650,92228,714,79032,423,83135,272,654
Charge on company and other income19,294,713018,857,01621,002,58623,751,32024,638,063
Grants from Consolidated Fund (Social Security Act)14,000,00014,000,00014,000,00014,000,00014,000,000
Maintenance recoveries against defaulting husbands*73,55578,42977,65380,59692,674
Interest on investments4,94619,90915,63935,09477,432
Reciprocity arrangements3,4283,4146,3793,2144,332
  Recoveries from Australian Government     
Other receipts86,86918,54621,92520,05525,826
    Total revenue57,781,66659,628,23663,838,97270,314,11074,110,981

Payments.—Particulars of payments during the same five financial years are contained in the next table.

£

1951–521952–531953–541954–551955–56
Monetary benefits—
  Superannuation3,144,0915,564,6296,029,1836,750,2267,771,406
  Age19,235,32619,091,30319,922,23422,251,09822,831,089
  Widows'2,230,6352,157,1152,323,8352,664,4612,849,308
  Orphans'33,66735,40427,58328,89930,688
  Family16,110,29716,854,26117,618,58118,179,09918,860,866
  Invalids'1,476,2811,416,5611,488,4251,616,5621,680,111
  Miners'127,619121,636123,547128,663127,351
  Unemployment3,9143,1876,5755,6604,247
  Sickness1,128,8041,062,1761,086,2411,276,8171,302,868
  Emergency365,181340,625366,558430,135534,104
    Total, monetary benefits43,855,81546,646,89748,992,76253,331,62055,992,038
Medical benefits—
  Medical2,760,5833,047,2023,085,7493,350,1803,548,080
  Hospital2,112,4942,135,2182,184,2393,411,0404,764,666
  Maternity884,781919,422924,6161,117,3071,376,564
  Pharmaceutical2,428,2163,015,8332,919,6203,047,3314,039,145
  Supplementary1,181,9531,310,9221,492,8221,633,0661,818,699
    Total, medical benefits9,368,02710,428,59710,607,04612,588,92415,547,154
Reciprocity benefits—
  Australia3,7304,9676,0497,1154,035
  Great Britain4123 91186
Balance of maintenance moneys33 6225267
Administration expenses950,405957,5581,017,1401,097,2191,176,779
Special assistance2,19221,287102,329135,162163,334
Bonus 767,1151,644,9253,481 
    Total payments54,180,24358,826,44462,370,31367,163,63772,883,793
Balance of Fund at end of year10,157,71610,959,50812,428,16715,578,64016,805,828

MONETARY BENEFITS.—A brief description of the main provisions relating to the various monetary benefits under Part II of the Act is now given. The rates prescribed for several of the benefits under the principal Act were increased by way of bonus to the extent of 5 per cent of the maximum rate payable in each case, as from 1 May 1942. The Social Security Amendment Act 1943, however, superseded these bonuses with permanent increases as from 1 July 1943, and further increases were granted in most benefits as from 1 October 1945. The Social Security Amendment Act 1947 provided for a further increase in the rate of benefits payable, the effective date being as from 1 October 1947. The same amendment gave the Commission power to continue superannuation, family, and miners' benefits without review for a period longer than the twelve months to which it was previously restricted. Other benefits—i.e., those subject to a means test—may not be granted, or renewed for a period exceeding twelve months, without further investigation as to changes in circumstances. The Social Security Amendment Act 1949 also provided for an increase in the basic rates of monetary benefits as from 1 June 1949. On 2 June 1950 the Government announced that, in consideration of the effect of the removal of certain subsidies, it had been decided to increase social security benefits by a flat cost-of-living bonus representing a 5 per cent increase, or 2s. 6d. per week for single beneficiaries and 5s. per week for married couples, on existing rates. Benefits affected with retrospective payments as from 8 May 1950, were age, invalids', miners', orphans', widows', sickness, unemployment, and emergency benefits. An earlier announcement (22 December 1949) stated that the amount of allowable income that could be earned by a beneficiary without affecting the benefit was to be increased from £1 to £1 10s. per week. This concession applied to age, invalids', and sickness benefits. These increases were later incorporated in the Social Security Amendment Act 1950. This Act also provided that the reduction in the basic rates of benefit on account of accumulated property exceeding £500 in those cases where it applied (age benefits and invalids' benefits) was to be £1 for every £15 of value instead of £1 for every £10 as formerly. Further increases ranging from 2s. 6d. to 5s. per week for recipients of social security benefits who are not generally in regular employment were made from 15 February 1951 and validated by the 1951 amendment to the Act. In accordance with the provisions of the 1954 Amendment Act the rates of benefits were increased by 10s. per week from 1 January 1954. The same amendment authorized increases in the rates of monetary benefits in respect of the period 15 September-31 December 1953. A further increase of 2s. 6d. a week was granted from 18 November 1954, this increase being authorized by the 1955 Amendment Act. From 1 August 1955, by the Social Security Amendment Act (No. 2), 1955, an increase of 5s. a week was authorized in the basic or maximum rates of widows' benefits, and of age, invalids', miners', sickness, and unemployment benefits where the applicants are unmarried, subject to a discretionary power for the Commission to refuse the increase where the applicant is sharing household expenses with another person. An increase of 4s. a week from 19 November 1956 was authorized in the maximum rates of age, widows', orphans', invalids', miners', sickness, and unemployment benefits.

The following payments, authorized by the Finance Act 1951, were made by way of cash bonus to certain social security beneficiaries and others during the year 1951. An amount of £2,045,273 was paid in accordance with the proposal of the Government announced on 16 December 1950 to pay a Christmas bonus of £10 to certain social security beneficiaries and war pensioners. For superannuitants and others of that class whose income during the year ended 31 December 1950 did not exceed £226 for a single person or £374 for married persons, payments of £10 and £20 respectively were also made, with proportionately lesser amounts as the gross income increased until at £236 and £394 the bonus payments ceased. The amount paid out under the latter arrangement totalled £148,669. A family bonus of £5 per child was paid in respect of children for whom the family benefit (or a war pension in lieu of family benefit) was payable at 30 June 1951. The amount involved under this heading was £3,078,910.

A special bonus of £5 to unmarried persons and £10 to married couples was paid to certain social security beneficiaries and war pensioners for Christmas 1952. Expenditure on this bonus to 31 March 1953 totalled £860,555, of which £767,115 was paid to social security beneficiaries. A further bonus of £10 for unmarried persons and £20 for married couples was paid at Christmas 1953, this amount forming one of the circumstances to be taken into account in determining the rate of increase in benefits from 15 Sept.-31 Dec. 1953. The sum involved was £1,856,225, of which £1,644,925 was paid to social security beneficiaries. Both the 1952 and 1953 social security portions of the payments were made from the Social Security Fund and are included in the previous table.

Payments of benefits, other than invalids' or miners' benefits for which separate provision had been made earlier, during temporary absence from New Zealand was made permissible at the Commission's discretion by the Finance Act (No. 2) 1948.

For the purpose of determining eligibility for benefit on grounds of residence, persons employed outside New Zealand will be deemed to be resident in New Zealand if employed on Government business, and may be so deemed at the Commission's discretion if employed otherwise, for the purposes of Part II of the principal Act, where liable for the payment of social security charge on their earnings. In each case the wife and children are also included. The 1950 amendment provided that persons employed by the Governments of Western Samoa and the Cook Islands are exempted from payment of the social security charge unless they remain ordinarily resident in New Zealand.

In computing the income of beneficiaries over sixty-five years of age no account is taken of the first £26 of pensions or annuities received under the Superannuation Act 1956 or the National Provident Fund Act 1950, when the recipients are 65 years or over.

The receipt of a war disablement pension or a basic war widow's pension does not render a person ineligible to receive a social security benefit.

SUMMARY OF RATES OF SOCIAL SECURITY BENEFITS.—The list below gives a summary of the annual and weekly rates for monetary benefits as at the present time (January 1957).

BenefitAnnual RateWeekly Rate
£s.d.£s.d.

* Increased by 5s. a week for unmarried persons if not sharing household expenses with any other person.

Superannuation (from 1 April 1957, £105)10000   
Age—
  Basic rate*192803140
  Married man with wife not eligible in her own right384160780
Widows'—
  Basic rate205803190
  Mother's allowance (widow with one dependent child)1331802116
  Mother's allowance (widow with more than one dependent child)159180316
Orphans' (each child)941801166
Family (each child)26000100
Invalids'—
  Basic rate*192803140
  Under twenty years without dependants172180366
  Married man with wife included384160780
  Limit of income, including earnings, subsidy, and benefit for blind invalid*37480740
  Limit of income, including benefit where domestic or nursing assistance required for a married woman56616010180
Miners'—
  Basic rate*192803140
  Married with wife included384160780
  Miner's widow172180366
Sickness or Unemployment—
  Basic rate*192803140
  Under twenty years without dependants1461802166
  Married person with wife included384160780
EmergencyAccording to circumstances
Special AssistanceAccording to circumstances

Superannuation Benefits.—Every person over the age of sixty-five years who satisfies the prescribed residential qualifications is entitled to a superannuation benefit without conditions as to income or property. The superannuation benefit is, however, regarded as assessable income for income-tax purposes but is exempt from the social security charge. The residential qualifications require, in general, a period of residence in New Zealand of twenty years immediately preceding application for benefit, but in the case of a person who was resident in New Zealand on 15 March 1938 the qualifying period is ten years only. Allowances are made for occasional absences.

For the ten years' requirement, continuous residence is not deemed to be interrupted by absence—

  1. If the total period of absence from New Zealand does not exceed one year; or

  2. If the total period of absence from New Zealand exceeds one year but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of ten years, and the applicant is ordinarily resident in New Zealand at the date of his application.

A similar proviso for the twenty years' requirement applies—

  1. If the total period of absence from New Zealand does not exceed two years; or

  2. If the total period of absence from New Zealand exceeds two years but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of twenty years, and the applicant is ordinarily resident in New Zealand at the date of his application.

Provision is made to cover absence by a seaman serving on board any ship registered or owned in New Zealand and absence in any capacity as a member of any of Her Majesty's Forces.

A superannuation benefit is not payable in addition to any other cash benefit except a family benefit. For example, a superannuation benefit and an invalid's benefit cannot be paid to the one person. Similarly, a superannuation benefit and an age benefit are not payable to the one person.

At the date of commencement on 1 April 1940, and for the remainder of the year, the rate of benefit was £10 per annum, thereafter being increased by £2 10s. per annum. As from 1 October 1951, however, the amount payable for the balance of the year 1951–52 was raised from £37 10s. to £75 per annum, this amount increasing by £5 per annum on 1 April of each succeeding year (for 1956–57 being £100 a year) until the amount equals the full rate payable under the Act.

The number of superannuation benefits in force at 31 March 1956 was 80,832, an increase of 2,659 above the total for the previous year. Expenditure on these benefits rose from £6,750,226 in 1954–55 to £7,771,406 in 1955–56.

Age Benefits.—Every person who has attained the age of sixty years is entitled to receive an age benefit, subject to satisfying certain qualifications in regard to residence and character. The residential qualifications are the same as those set out under the preceding heading in regard to superannuation benefits. The character qualifications mainly relate to desertion of wife or husband or wilful failure in the case of a married man or widower to provide adequate maintenance for wife or for children under sixteen years of age.

The basic rate of the benefit is £192 8s. per annum, subject to certain deductions on account of income or accumulated property, etc. Particulars of additions to and deductions from the basic rate are as follows:

  • Unmarried applicants: The basic rate is increased to £205 8s., although reduced by £1 for every complete £1 of income in excess of £78 per annum.

  • Married applicants: Where husband and wife are both entitled to the benefit the basic rate is reduced by 10s. for every complete £1 of their combined incomes in excess of £78 per annum. In cases where only one of them is entitled to the benefit the reduction is at the rate of £1 for every complete £1 of their total income (excluding a family benefit) in excess of £270 8s. per annum. A further provision allows of an extra payment, not exceeding £192 8s. per annum, to a male recipient when his wife is ineligible for any benefit under the Act. This is payable only up to a limit of the total income of the couple, plus benefit, of £462 16s. per annum.

For the above purposes, income is deemed not to include amounts received by way of war disablement pension or basic war widow's pension.

From 1 August 1955 an age benefit may be granted to unmarried women between fifty-five and sixty years of age who are unable to engage in regular employment.

Age beneficiaries are entitled to surrender their benefits while their earnings are excessive and to apply for reinstatement immediately the employment ceases. The earnings received during the period that both husband and wife were not in receipt of age benefits are not taken into account.

An age beneficiary on attaining the age of sixty-five years is entitled to an increase in his allowable income of £6 10s. per annum for each complete year between the ages of sixty and sixty-five years during which he did not receive the benefit but was otherwise eligible so to do. The maximum allowable income under this provision is £110 10s. per annum. Appropriate adjustments are made to apply the same provision to a beneficiary whose benefit is reduced by reason of accumulated property, so as to place him in an equivalent position—i.e., the amount of reduction may be diminished by £6 10s. for each year of deferment.

During 1955–56, 3,198 existing beneficiaries and new applicants received additional benefit on account of the deferment concession. The periods of deferment were: one year, 525; two years, 326; three years, 316; four years. 360; and five or more years, 1,671.

In computing the allowable income of any female beneficiary or the wife of any beneficiary no account is taken of her personal earnings from domestic or nursing services in private homes or in hospitals or charitable institutions up to £78 per year.

A special allowance not exceeding £13 13s. per annum may be paid to any person in receipt of an age benefit who served as a member of a New Zealand contingent in connection with the South African War or in any of Her Majesty's Forces in that war if he had been born in New Zealand or was domiciled therein at the commencement of the war.

The Commission may also, in its discretion, increase by an amount not exceeding £26 per annum the rate of any benefit under Part II of the Act (including the age benefit) payable to any beneficiary who was one of the parents of a deceased member of any of Her Majesty's Forces established in New Zealand whose death was attributable to service with the Forces. Similar powers exist in respect of a parent of a deceased member of the New Zealand Mercantile Marine whose death was attributable to the Second World War. The provision also covers from 1 April 1949 the case of a deceased member of any Force or of the Mercantile Marine of any part of the British Commonwealth other than New Zealand who was domiciled in New Zealand at the commencement of the Second World War and whose death was directly attributable to that war. At 31 March 1956 there were 2,204 of these allowances in force, this representing a reduction of 41 from the figure of 2,245 for 1955.

In addition to the deductions on account of income set out above, the rate of the benefit is reduced by £1 for every £15 of capital value of accumulated property in excess of £500. The accumulated property of a husband or wife for this purpose is half of the total accumulated property of both.

In computing the capital value of property no account is taken of the following, but any income derived therefrom is charged as income:

  1. Any interest in land or house property, or mortgage or other encumbrance over such property:

  2. Any interest in any annuity or in any policy of life assurance:

  3. Any furniture used in the home of the applicant or any personal effects belonging to the applicant.

Income from a property and the value of the same property are not both charged to reduce the age benefit—e.g., if shares worth £600 produce an income of £30 per annum, either the value of the shares or the income therefrom may be charged, whichever method provides for the greater reduction.

Where an applicant for an age benefit is totally blind, the rate of the benefit, together with any benefits and allowances payable to or in respect of the wife or husband of the applicant, is not to be less than the total of benefits and allowances that would have been paid if the applicant had been eligible for an invalid's benefit.

The number of age benefits in force at 31 March 1956 was 118,668, a decrease of 2,395 from the figure at the end of March 1955. The 1956 total was inclusive of 5,178 husbands receiving benefits on account of dependent wives who were not eligible for benefits in their own right, and of 266 males receiving the additional allowance of £13 13s. per annum paid to veterans of the South African War. Expenditure on age benefits increased from £22,251,098 in 1954–55 to £22,831,089 in 1955–56.

The following table shows the estimated age distribution of (a) persons who were granted new age benefits during the calendar year 1955 (including transfers from widows' and invalids' benefits), and (b) total age beneficiaries at 31 December 1955.

Age, in YearsPersons Granted New Age Benefits During 1955Total Age Beneficiaries at 31 December 1955
MalesFemalesTotalMalesFemalesTotal

* The majority of persons granted new age benefits at age sixty have attained the age of sixty-one years by the following 31 December, this serving to account for the smaller numbers in the second portion of the table for age sixty.

60*7501,9802,7305141,0271,541
613304607909512,5583,509
621504005501,2903,0494,339
631801803601,3002,8094,109
641701403101,4323,5414,973
      Totals, 60–641,5803,1604,7405,48712,98418,471
65–696806701,35010,84219,59730,439
70–7464031095013,87018,43932,309
75 and over36020056012,13325,28737,420
      Totals3,2604,3407,60042,33276,307118,639

Widows' Benefits.—Every widow who is the mother of one or more children under sixteen years of age is entitled to a benefit in respect of widowhood. In addition, any widow not being the mother of children under sixteen years of age who satisfies the following conditions is also entitled to the benefit:

  1. A widow who has had one or more children, provided that the duration of her marriage was not less than fifteen years or, in the alternative, that the aggregate of the period of the duration of her marriage and any subsequent period during which she had the care of at least one of her children under sixteen years of age was not less than fifteen years:

  2. A widow who, on the expiration of not less than five years after the date of her marriage, became a widow after she attained the age of fifty years:

  3. A widow of not less than fifty years of age who became a widow after she had attained the age of forty years, provided that the duration of her marriage was not less than ten years and that not less than fifteen years have expired since the date of her marriage.

It will be noted that no widow under fifty years of age who has not had one or more children can qualify for the benefit.

Provision is also made for other classes of women (not being widows) to receive benefits as if they were widows. Particulars are as follows:

  1. Any married woman who satisfies the Commission that she has been deserted by her husband and that she has taken proceedings against him for a maintenance order under the Destitute Persons Act 1910. Either the beneficiary or the Commission may institute and prosecute proceedings for the enforcement of the order, or for an order cancelling, varying, or suspending the maintenance order. Any moneys paid by a husband, whether by way of maintenance order or otherwise, are set off against any benefit so granted. Benefits for deserted wives may be continued after divorce:

  2. Any married woman in respect of whose husband a reception order is in force under the Mental Defectives Act 1911 (whether or not he is detained in an institution under the Act), or whose husband is for the time being detained in an institution under that Act, whether as a voluntary boarder or otherwise.

The two paragraphs which follow also apply in such cases, reference to the date of death being deemed to be reference to date of desertion by the husband or to the making of a reception order.

Except in the case of widows with one or more children under sixteen years of age, no widow is entitled to receive a widow's benefit unless she and her husband were both resident in New Zealand for not less than three years immediately preceding the death of the husband or, unless either of them, being ordinarily resident in New Zealand at the date of the husband's death, has resided continuously in New Zealand for not less than five years.

The term “children” does not include any child born out of New Zealand unless at least one of the following conditions is satisfied—namely, that—

  1. The mother of the child was only temporarily out of New Zealand at the time of its birth; or

  2. Both parents were resident in New Zealand for the three years immediately preceding the date of the death of the husband of the applicant; or

  3. One of the parents, being ordinarily resident in New Zealand at the date of the husband's death, has resided continuously in New Zealand for not less than five years.

The term “child” includes a step-child or a child adopted during the lifetime of the husband of the applicant (in cases where the husband is dead) or adopted while the husband and wife were living together (in cases of desertion, etc.). It may also (at the discretion of the Commission) include any child who is being maintained by the applicant or was at any time maintained by the husband of the applicant.

No woman shall be entitled to receive a widow's benefit unless the Commission is satisfied that she is of good moral character and sober habits.

The rate of widow's benefit payable is £205 8s. per annum.

In addition to the benefit payable to a widow with a dependent child under sixteen years of age, she is entitled to receive a mother's allowance at the rate of £133 18s. per annum. The rate of mother's allowance for a widow with two or more dependent children is £159 18s. per annum.

Any income received, exclusive of war disablement or basic war widow's pension, is taken into account in computing the benefit payable, and where such income exceeds £78 the annual rate of benefit is reduced by £1 for every complete £1 of such excess. The maximum of income plus benefit in the case of a widow with a dependent child is £417 6s. per annum, with two or more dependent children is £443 16s. per annum, and in the case of a widow without dependent children £283 8s. per annum. A widow with dependent children will, of course, receive in addition the universal family benefit of 10s. per week for each child.

The provision relating to the allowable income of £78 per year gained from domestic or nursing services in private homes or in hospitals and charitable institutions without affecting the amount of the benefit payable to women age-beneficiaries also applies to widows' benefits.

Where there are no dependent children, the benefit of widows attaining the age of sixty years is also reducible by £1 for every complete £15 of the accumulated property in excess of £500 computed as if she were an applicant for age benefit. Widows' benefits cease on remarriage.

At 31 March 1956 there were 11,771 benefits in force, a decrease of 426 during the year. Expenditure totalled £2,849,308 in 1955–56, compared with £2,664,461 in 1954–55. Offset against these amounts were the sums of £92,674 and £80,596 respectively, being recoveries of maintenance from defaulting husbands.

The following table affords an analysis of widows' benefits in force at 31 March 1956.

With One Dependent ChildWith Two or More Dependent ChildrenWithout Dependent ChildrenTotal
Widows1,9712,0186,58610,575
Deserted wives2225093141,045
Wives of mental hospital patients276361151
      Totals2,2202,5906,96111,771

Orphans' Benefits.—A benefit in respect of complete orphanhood is payable in the case of a child under sixteen years of age who was born in New Zealand or whose last surviving parent was resident in New Zealand for a period of not less than three years preceding the date of his or her death. A step-child or an adopted child comes within the definition of the term, and payment may be made to any person for the time being having the care and control of the child. No payment is made on account of any orphan maintained in a State institution, but payment may be made to the governing bodies of homes and orphanages of religious or other organizations.

The amount payable as an orphan's benefit is limited to a maximum of £94 18s. per annum less any income received by or for the benefit of the orphan, but a lesser amount may be granted if it is considered that the circumstances of the case warrant it. In any case where the benefit of the orphan falls below £26 per annum application may be made for a family benefit of 10s. a week in lieu of orphan's benefit. For the purpose of assisting in the further education of any child, the Commission may grant or continue the benefit until the end of the year in which the child reaches the age of eighteen years.

The number of benefits in force at the end of March 1956 was 290 (in respect of 388 children), a decline of 10 during the year. Expenditure increased from £28,899 in 1954–55 to £30,688 in 1955–56.

Family Benefits.—As from 1 April 1946 the father or mother of any child or children under sixteen years of age may apply for a family benefit, irrespective of the income or property of the parents or children. Prior to 1 April 1946 family benefits were payable subject to a means test.

The rate of the benefit is 10s. per week for each child, and in every case is paid to the mother of the children, unless in special circumstances the Commission considers that it should be paid to the father or to some other person for the benefit of the children.

If a beneficiary in receipt of an age or other monetary benefit is the parent of dependent children, payment in respect of the children is made by way of a separate family benefit.

The term “children” includes step-children and adopted children, but does not include—

  1. Any child who has attained the age of sixteen years unless such child is continuing its education as a full-time day pupil at a school or college, in which case the Commission may grant or continue the benefit until the end of the year in which it reaches the age of eighteen years.

  2. Any child who is not in fact maintained as a member of the family of the applicant.

  3. Any child in respect of whom any other benefit or pension, etc., is payable out of public moneys.

The Commission may regard as a member of the applicant's family any child who, although not a child of the applicant, is being maintained as a member of the family. A benefit may also be continued beyond the age of sixteen years in respect of any child who is totally incapacitated from earning a living by reason of some physical or mental defect.

In order to qualify for a family benefit at least one of the following conditions must be satisfied, namely—

  1. The child was born in New Zealand.

  2. The mother of the child was only temporarily absent from New Zealand at the time of its birth.

  3. The Commission is satisfied that the child is likely to remain permanently in New Zealand.

  4. The child has resided continuously in New Zealand for not less than twelve months.

A benefit is not payable in respect of any child committed to the care of the Child Welfare Division of the Department of Education nor in respect of any child residing in an institution under the care of the Division of Mental Hygiene of the Department of Health. Family benefits are, however, paid to children of a member of any of Her Majesty's Naval, Military, or Air Forces.

A family benefit may be paid in cash, to the credit of the Post Office Savings Bank account of the mother, or to the Commissioner of Inland Revenue to meet the income tax payments of the mother or father. The number of family benefits being paid to Post Office Savings Bank accounts increased from 99,456 at 31 March 1955 to 108,484 at 31 March 1956, the amount lodged increasing from £5,796,158 to £6,235,420. The number of benefits wholly or partly diverted in payment of income tax continued to fall, from 3,049 at March 1955 to 2,897 at March 1956, the amount paid in the earlier year being £139,873, as compared with £130,746 during 1955–56.

The total number of benefits in force at 31 March 1956 was 308,558, covering 722,655 children, compared with the corresponding figures of 298,370 and 695,212 at 31 March 1955. Included in the 1955–56 total of children were 11,790 pupils and 63 incapacitated minors over the age of sixteen years. Expenditure increased from £18,179,099 in 1954–55 to £18,860,866 in 1955–56.

The next table gives the number of family benefits in force at the end of March 1955 and 1956, classified according to the number of children receiving the benefit in each case.

Number of Children Receiving Benefit in Each CaseNumber of Benefits at 31 March 1955Number of Benefits at 31 March 1956
196,76298,720
295,29698,405
357,43760,417
427,75428,838
511,21711,822
65,0695,364
72,4972,584
81,2891,281
9606680
10 or over443447
      Totals298,370308,558

The average number of children per family in respect of whom benefit was paid was 2.25 in 1950–51, 2.27 in 1951–52, 2.30 in 1952–53, 2.31 in 1953–54, 2.33 in 1954–55, and 2.34 in 1955–56.

Invalids' Benefits.—Subject to certain residential and other qualifications, every person of the age of sixteen years and upwards who is not qualified to receive an age benefit is entitled to an invalid's benefit if he—

  1. Is totally blind; or

  2. Is permanently incapacitated for work as the result of an accident or by reason of illness or of any congenital defect.

The other qualifications referred to are as follows:

  1. That he has fulfilled certain residential qualifications, these in the main being the same as for superannuation benefits described on page 202.

  2. That incapacity for work was not self-induced or in any way brought about with a view to qualifying for an invalid's benefit.

  3. Applicant must be of good moral character and sober habits.

Provision is made for a medical examination, when necessary, to determine the extent of incapacity. In the event of an application being declined on medical grounds, the applicant has the right of appeal, within three months after the decision of the Commission has been communicated to him, to a Board of three medical practitioners nominated by the Department. An invalid's benefit may be paid in respect of a period of absence from New Zealand not exceeding two years in the aggregate, if the Commission is satisfied that such absence was for the purpose of obtaining any special medical or surgical treatment, or in the case of blindness, for the purpose of undertaking vocational training or treatment in respect of the eyes.

The prescribed rates for invalids' benefits, together with the amounts of allowable income, exclusive of war disablement or basic war widows' pensions, are as follows.

Class of PersonRate of BenefitAllowable Income
WeeklyYearlyWeeklyYearly
Person under twenty years without£s.d.£s.d.£s.d.£s.d.
dependants36617218011007800
Married man31401928011007800
Wife314019280
Married woman31401928054027080
All other persons31902058011007800

As in the case of other benefits, dependent children are provided for by way of the family benefit at 10s. per week each.

In each case the amount of the benefit is reduced by £1 for every complete £1 of income, exclusive of war disablement or basic war widow's pension, in excess of the amounts stated as allowable. Deductions on account of property are the same as for age benefits, which are described under a previous heading. In computing the income of any blind person no account is taken of personal earnings up to £156 per annum. In addition, personal earnings of such blind persons are subsidized to the extent of 25 per cent so long as the total income, including any benefit received, does not exceed £374 8s. per annum (£387 8s. if unmarried). The maximum invalid's benefit payable plus allowable income is £462 16s. per annum, while in the case of a blind person the maximum is £618 16s.

Where an applicant is a married woman and, by reason of incapacity, necessary nursing or domestic assistance is required to be paid for, the Commission may increase the rate of any benefit which may have been reduced on account of income or property to an amount not in excess of £192 8s. a year, but so that the total income of applicant and husband, inclusive of the benefit, does not exceed £10 18s. per week.

Any person in receipt of an invalid's benefit who, on the attainment of age sixty, becomes entitled to receive an age benefit is required to relinquish his invalid's benefit and is granted an age benefit in lieu thereof, but the aggregate amount payable for a blind beneficiary and his wife (if any) is not altered by this transfer.

Of the 850 new benefits granted in 1955 the marital status of the recipients was—single 403 (males 193, females 210), married 306 (296 males, 10 females), widowed 35 (21 males, 14 females), and divorced, separated, etc., 106 (47 males, 59 females). By far the greatest number were aged 50 years or over, 437; the numbers for other age groups being as follows: under 20 years, 117; 20 and under 40 years, 144; and 40 years and under 50, 152.

Invalids' benefits in force at 31 March 1956 numbered 7,743, a decrease of 367 on the March 1955 figure, while expenditure rose from £1,616,562 in 1954–55 to £1,680,111 in 1955–56.

Miners' Benefits.—Subject to the qualifications set out hereunder, a miner's benefit is payable to any person who, while engaged as a miner in New Zealand, contracted miner's phthisis and is thereby permanently and seriously incapacitated for work, or to any person who contracted, while engaged as a miner in New Zealand, any other occupational or heart disease and is thereby permanently and totally incapacitated for work. The term “miner's phthisis” means pneumoconiosis and includes tuberculosis of the lungs or any other disease of the respiratory organs commonly associated with, or a sequel to, pneumoconiosis. The necessary qualifications are—

  1. Employment as a miner in New Zealand for not less than two and a half years:

  2. Continuous residence in New Zealand for not less than five years immediately preceding the date of his application for a benefit. Continuity of residence is not deemed to have been interrupted by occasional absences aggregating not more than six months:

  3. Good moral character and sober habits and must not have deserted or wilfully failed to provide for his wife and children during the period of five years immediately preceding the date of application:

  4. That compensation under the Workers' Compensation Act in respect of the same disability is not being received.

The rates of miners' benefits are £3 14s. per week or £192 8s. per annum (or £205 8s. if unmarried), increased by £3 14s. per week, or £192 8s. per annum, for a wife. Dependent children under sixteen years are provided for by way of family benefit at the rate of 10s. per week each.

There is no reduction in the benefit on account of the income or property of the applicant and/or his wife.

Provision is made for medical examination where necessary to determine whether the applicant is permanently incapacitated for work, or the extent of his incapacity.

An applicant whose claim has been declined on medical grounds has a right of appeal to a board consisting of three registered medical practitioners appointed by the Department.

A special provision is made for the payment from the Social Security Fund of a reasonable contribution towards the funeral expenses of any person who dies while in receipt of a miner's benefit. The amount to be paid is at the discretion of the Commission.

If a person in receipt of a miner's benefit dies leaving a widow, such widow is entitled to a benefit of £3 6s. 6d. per week, or £172 18s. per annum, during widowhood. This benefit is payable regardless of the circumstances of the widow, her income or property not being considered in the granting of a benefit.

Payment of benefits is not affected by a period of absence from New Zealand not exceeding two years in the aggregate.

Miners' benefits in force at 31 March 1956 numbered 452 (including 85 widows), 29 fewer than at the corresponding date in 1955. During 1955–56 the expenditure on this class of benefit was £127,351, compared with £128,663 in 1954–55.

Unemployment Benefits.—Subject to the conditions set out below, every person over the age of sixteen years who is not qualified to receive an age benefit is entitled to a benefit in respect of unemployment. An applicant is required to satisfy the Commission in respect of the following:

  1. That he is unemployed:

  2. That he is capable of undertaking and is willing to undertake suitable work:

  3. That he has taken reasonable steps to obtain suitable employment:

  4. That he has resided continuously in New Zealand for not less than twelve months.

An unemployment benefit is not payable in respect of the first seven days of any period of unemployment, except in special circumstances. In addition, the Commission may postpone, for a period not exceeding six weeks, the commencement of the benefit, or it may terminate the benefit in any of the following circumstances:

  1. If the applicant has voluntarily become unemployed without good and sufficient reason:

  2. If the applicant has lost his employment by reason of any misconduct as a worker:

  3. If the applicant or beneficiary has refused or failed, without a good and sufficient reason, to accept any offer of suitable employment:

  4. In the case of a seasonal worker, if his earnings for the season are sufficient for the maintenance of himself and his family notwithstanding a period of temporary unemployment. Unemployment benefits are payable in accordance with the following scale:

 Weekly Benefit
£s.d.
To applicants sixteen and under twenty years without dependants2166
To unmarried applicants twenty years and over3190
To all other applicants3140
In respect of the applicant's wife3140

Dependent children are paid for by way of family benefit at the rate of 10s. per week each.

The benefit is payable so long as the beneficiary is unemployed or until he becomes eligible to receive another class of benefit, other than a family benefit—e.g., an age benefit.

A married woman is entitled to receive the benefit only if her husband is unable to maintain her. If a beneficiary is not receiving a benefit in respect of a wife, an allowance may be paid in respect of any person who has the care of his home.

The foregoing rates of benefits may be reduced, having regard to the income received or the properly owned by the applicant or his wife.

The numbers of applications for unemployment benefits dealt with during the years ended 31 March 1955 and 1956 were 150 and 109 respectively, 93 persons being granted a benefit in 1954–55, and 68 in 1955–56. At the end of March 1956, 5 benefits were in force, compared with 19 at the end of the previous year. Expenditure for the year 1955–56 amounted to £4,247, as against £5,660 in 1954–55.

Sickness Benefits.—Every person over the age of sixteen years who has resided continuously in New Zealand for not less than twelve months and who satisfies the Commission that he is temporarily incapacitated for work through sickness or accident, and that by reason thereof he has suffered a loss of salary, wages, or other earnings, is entitled to a sickness benefit. The amount of the benefit is limited to the amount by which the weekly earnings of the applicant have been reduced by reason of his incapacity or to a maximum of £7 8s. a week payable to a man and his wife. Where a person is engaged in business on his own account and by reason of sickness or accident is obliged to employ a substitute during the period of incapacity, the remuneration paid to the substitute is regarded as loss of earnings. Every application for a benefit must be supported by a medical certificate, and no benefit is payable for the first seven days of incapacity except under special circumstances.

A married woman shall be entitled to receive a sickness benefit only if the Commission is satisfied that her husband is unable to maintain her.

Subject to the foregoing remarks concerning amount of benefit, the rates of sickness benefits shall be computed as follows:

  1. In the case of an applicant under twenty years of age without dependants, the benefit shall be at the rate of £2 16s. 6d. a week; if unmarried and twenty years or over, £3 19s. a week.

  2. In every other case the benefit shall be at the rate of £3 14s. a week, increased (in the case of an applicant with a wife) by £3 14s. a week in respect of his wife.

Any applicant who is maintaining a home and who is not drawing a benefit in respect of a wife, may receive a benefit at a rate not exceeding that for a wife, in respect of any person who has the care of his home.

Dependent children are provided for by way of family benefit.

The rate of benefit computed as aforesaid is reduced by 1s. for every complete shilling of the total income, exclusive of war disablement or basic war widows' pensions, of the applicant and of his wife or her husband, as the case may be, in excess of £1 10s. a week or, in any case where the applicant or his wife or her husband, as the case may be, is in receipt of a sick benefit from a friendly society or a like benefit from any other source, in excess of £2 10s. a week.

The numbers of applications for sickness benefits dealt with during the years ended 31 March 1955 and 1956 were 27,902 and 27,367 respectively. The number of persons granted sickness benefits was 25,774 in 1954–55 and 25,320 in 1955–56. Benefits in force at 31 March 1956 totalled 3,613, compared with 4,277 at the end of March 1955. Total expenditure for 1955–56 amounted to £1,302,868, an increase of £26,051 on the 1954–55 figure.

In the following table sickness benefits which ceased during the year ended 31 March 1956 are shown according to the duration of the sickness benefit.

Duration of Sickness Benefit (Weeks)Number of Benefits
MalesFemalesTotal
0–48,6161,92110,537
5–125,8861,7497,635
13–252,2391,1983,437
26–521,1454591,604
53 and over6923461,038
      Totals18,5785,67324,251

The following table gives a classification of sickness benefits according to the disease suffered by the beneficiary. The data are estimates based on 93 per cent of the benefits which ceased during the calendar year 1955.

Disease or InjuryMalesFemales
Infective and Parasitic Diseases
  Tuberculosis of the respiratory system649263
  Tuberculosis, other forms8634
  Mumps2121
  Infectious hepatitis305 
  Typhoid fever13 
  Undulant fever193
  Scarlet fever15
  Poliomyelitis2714
  Measles198
  Chicken pox7417
  Herpes zoster8421
  Glandular fever7341
  Other14589
Neoplasms
  Malignant neoplasms11930
  Neoplasms of lymphatic and haematopoietic tissues266
  Benign neoplasms120122
  Neoplasms of unspecified nature10145
Allergic, Endocrine System, Metabolic, and Nutritional Diseases
  Asthma24066
  Other allergic disorders18 
  Diseases of the thyroid gland5158
  Diabetes mellitus7929
  Diseases of other endocrine glands125
  Avitaminoses and other metabolic diseases674
Diseases of the Blood and Blood-forming Organs
  Anaemia3749
  Other diseases of the blood and blood-forming organs195
Mental, Psychoneurotic, and Personality Disorders
  Psychoses8975
  Psychoneurotic disorders545415
  Disorders of character, behaviour, and intelligence3725
Diseases of the Nervous System and Sense Organs
  Vascular lesions affecting, and inflammatory and other diseases of, the central nervous system32577
  Diseases of nerves and peripheral ganglia, excluding sciatica11118
  Sciatica14915
  Diseases of the eye18642
  Diseases of ear and mastoid process11829
Diseases of the Circulatory System
  Rheumatic fever9944
  Chronic rheumatic, arteriosclerotic, degenerative, and other diseases of the heart70157
  Hypertensive disease15872
  Varicose veins and haemorrhoids48863
  Other diseases of the circulatory system17152
Diseases of the Respiratory System
  Acute upper respiratory infections207102
  Influenza499131
  Pneumonia89199
  Bronchitis60298
  Hypertrophy of tonsils and adenoids5648
  Chronic sinusitis8639
  Pleurisy19924
  Bronchiectasis4225
  Other diseases of the respiratory system21831
Diseases of the Digestive System
  Diseases of buccal cavity and oesophagus3210
  Diseases of stomach and duodenum78364
  Appendicitis800368
  Hernia of abdominal cavity68934
  Other diseases of intestines and peritoneum29999
  Diseases of liver, gallbladder, and pancreas23194
Diseases of the Genito-urinary System
  Nephritis and nephrosis5810
  Other diseases of urinary system21167
  Diseases of the genital organs222195
Deliveries and Complications of Pregnancy
  Childbirth and puerperium 938
Diseases of the Skin and Cellular Tissue
  Infections of skin and subcutaneous tissue33354
  Eczema6719
  Dermatitis31078
  Chronic ulcer of skin905
  Other diseases of the skin and subcutaneous tissue7327
Diseases of Bones and Organs of Movement
  Arthritis and rheumatism, except rheumatic fever769182
  Osteomyelitis and other diseases of bones and joints568113
  Other diseases of musculoskeletal system20291
Congenital Malformations
  Congenital malformations5819
Symptoms, Senility, and Ill-defined Conditions
  Symptoms referable to systems and organs530127
  Senility and ill-defined diseases220160
Accidents, Poisonings, and Violence (Nature of Injury)
  Fractures1,661170
  Dislocation without fracture18426
  Sprains and strains46372
  Burns9913
  Poisonings2 
  Head injury (excluding skull fractures)22824
  Internal injury of chest, abdomen, and pelvis165
  Lacerations and open wounds48745
  Superficial injury1058
  Contusion and crushing with intact skin surface11322
  Foreign body entering through orifice6 
  Injury to nerves and spinal cord without bone injury152
  Effects of weather, exposure, and related conditions4 
  Other unspecified injuries and reactions26835
      Totals18,5785,673

Emergency Benefits.—An emergency benefit may be granted by the Commission on the grounds of hardship to any person who by reason of age, physical or mental disability, domestic circumstances, or any other reason is unable to earn a sufficient livelihood for himself and those dependent on him and is ineligible for any other monetary benefit.

The amount of the emergency benefit is at the discretion of the Commission, which fixes as nearly as possible an amount equal to that payable for the type of benefit for which the applicant most closely qualifies.

Payments of benefits for which tuberculosis sufferers may qualify are at the rates of £4 19s. for a single person and £8 18s. for a married couple, with additions where there are dependent children.

Emergency benefits in force at 31 March 1956 numbered 2,989, compared with 2,201 at 31 March 1955. Expenditure in the 1955–56 year amounted to £534,104 and in 1954–55 to £430,135.

Special Assistance.—In November 1951 the Social Security Special Assistance Fund was established to provide special financial assistance to social security beneficiaries and others in need. Assistance is granted where applicants have special commitments which cannot be met out of current income, have insufficient other means available to them, and where there is no possibility of their helping themselves. Welfare and other organizations have been encouraged to assist in bringing this source of help to the knowledge of persons who might qualify, and departmental literature has included information on the purpose of special assistance, the cost of which is now borne by the Social Security Fund. Continuing grants are made where the applicant's continuing commitments, e.g., food, fuel, rent, are in excess of the income received by the applicant, and lump sum grants are usually made to meet some non-recurring expense. An analysis of these grants showing age, sex, marital status, rate and purpose of grants, type of living accommodation, and number of dependent children, is given in the parliamentary paper H–9, 1956.

In the 1955–56 year, 5,336 applications for assistance were granted, expenditure, totalling £163,334, compared with 5,423 grants totalling £135,162 in 1954–55. There were 3,521 continuing grants in force at 31 March 1956.

Domestic Concession.—Female social security beneficiaries or the wives of social security beneficiaries are allowed, in addition to the ordinary income exemption of £78 per annum, to earn up to £78 a year in domestic or nursing service in private homes or in institution? approved by the Commission as hospitals, homes for the care of the aged, or charitable institutions, without their benefits being reduced. During the year 1955–56, 661 applications were received for employment in private homes, of which 640 were granted, while at 31 March 1956 there were 867 concessions in force, compared with 731 at the end of March 1955. During the year 1955–56, 109 applications were received for employment in hospitals and institutions, of which 106 were granted, while at 31 March 1956 there were 99 concessions in force.

Reciprocity with Australia.—The Social Security (Reciprocity with Australia) Act 1948, which repealed the Age Benefits and Invalids' Benefits (Reciprocity with Australia) Act 1943, is designed to provide for reciprocity in relation to a wide range of benefits between New Zealand and the Commonwealth of Australia. The Act came into force on 1 July 1949. A similar Act was passed in Australia and came into force on the same date.

Part II of the Act covers the case of former residents of Australia and applies to any person who, having at any time resided in Australia, is permanently resident in New Zealand inasmuch as he either satisfies the Commission that he is so permanently resident or has been in continuous residence in New Zealand for not less than six months (unless in this case the appropriate authorities in both countries agree that the residence is not to be regarded as permanent).

For the purpose of any application for a benefit in respect of a person covered by this Act, residence in Australia or birth in Australia will be regarded as residence or birth in this country.

Applicants for age, invalids', or widows' benefits must be qualified on residential grounds to receive the corresponding pensions under the Social Services Act (Australia) as if their residence in New Zealand had been residence in Australia. No male person is entitled to receive an age benefit unless he has attained the age of sixty-five years. The Act also provides that the Commission shall treat blindness or permanent incapacity for work occurring in Australia as if it had occurred in New Zealand.

Part III of the Act deals with persons who, although ordinarily resident in New Zealand, are temporarily resident in Australia. Such residence is not a disqualification for a benefit. Benefits may be applied for and paid in Australia, although the Commission may, in its discretion, postpone payment of the whole or any part of the benefit until the return of the beneficiary to New Zealand.

The appropriate reciprocal provisions made in respect of Australia are contained in the Schedule to the Act.

Reciprocity exists in respect of the following classes of pensions, allowances, endowments, and benefits under the respective Acts governing social security provisions:

  1. Age pensions and age benefits.

  2. Invalid pensions (including wives' and children's allowances) and invalids' benefits.

  3. Widows' pensions and widows' benefits.

  4. Child endowment and family benefits.

  5. Unemployment benefits.

  6. Sickness benefits.

Reciprocal benefits in force in New Zealand as at 31 March 1956 numbered 424, as compared with 473 at 31 March 1955.

Reciprocity with United Kingdom.—As mentioned earlier, reciprocity in respect of family benefits between New Zealand and Great Britain and Northern Ireland was provided for by legislation during 1948, reciprocal family benefits in force at 31 March 1956 numbering 15, compared with the 1955 figure of 28. The Social Security Amendment Act 1951 contained a provision that a family benefit may be paid in respect of a child immediately on arrival in New Zealand if the Commission is satisfied that the child is likely to remain permanently in New Zealand. The fall in reciprocal family benefits from the 1952 figure of 787 is therefore accounted for by the substitution in most cases of ordinary family benefits.

The Social Security (Reciprocity with United Kingdom) Act 1956 brought into operation from 1 April 1956 an agreement providing for reciprocity in a comprehensive range of benefits between New Zealand and the United Kingdom.

General Principles of the Agreement.—The general principle of the agreement is that persons migrating from one country to the other for permanent residence will be taken into the social security scheme of the receiving country and paid benefits by the receiving country under the laws and conditions applicable to other residents of that country.

This principle is modified to the extent that the United Kingdom has agreed to continue to pay retirement pensions and widows' pensions in New Zealand to former residents of the United Kingdom who are qualified under the United Kingdom scheme. In such cases, New Zealand will supplement such pensions to bring them up to the New Zealand rates where necessary.

United Kingdom Residents in New Zealand.—In New Zealand the agreement applies to former residents of England, Scotland, Wales, Northern Ireland, and the Isle of Man, who claim age, superannuation, widows', orphans', invalids', sickness, and unemployment benefits under the Social Security Act.

The agreement modifies the residential requirements of the Social Security Act and enables persons who formerly lived in the United Kingdom to be treated as if they resided in New Zealand during any period they lived in the United Kingdom. Though the normal qualifying age for a grant of age benefit in New Zealand is sixty, no man claiming age benefit by virtue of the agreement is entitled to receive it till he reaches sixty-five.

The United Kingdom continues to pay retirement pensions and widows' pensions to persons in New Zealand who are qualified under the national insurance scheme and, in such cases, New Zealand, where necessary, supplements the national insurance pensions to bring them up to the rate of the appropriate New Zealand benefit. There is no supplementation in cases where the national insurance retirement or widow's pension is equal to, or greater than, the New Zealand social security benefit which could be paid.

New Zealand Residents in the United Kingdom.—In the United Kingdom the agreement applies to former residents of New Zealand who claim retirement pensions, widows' pensions, widowed mother's and guardian's allowances, sickness and employment benefits under the National Insurance Act.

The United Kingdom scheme is a contributory scheme, and payment of benefits is dependent upon the satisfaction of specified contributory conditions.

The agreement modifies the provisions of the National Insurance Act of the United Kingdom and enables persons who formerly lived in New Zealand to be treated for the purpose of satisfying the contribution conditions of that Act as if they had paid contributions under the national insurance scheme for each week during which they had been resident in New Zealand. The qualifying age for retirement pension under the National Insurance Act is sixty for women and sixty-five for men. Consequently, no man will be entitled to retirement pension till he is sixty-five.

Persons who were in receipt of superannuation, age, or widow's benefit when they left New Zealand will generally be regarded as having satisfied the contribution conditions under the United Kingdom scheme if they have reached pensionable age, and will receive the appropriate national insurance benefit from the date of their arrival in the United Kingdom.

Persons in receipt of social security benefits in New Zealand who go to the United Kingdom for the purpose of a visit will normally have their benefits suspended on departure, but if they return to New Zealand within twelve months they will be paid arrears of their social security benefit for the period of their absence. If they apply for, and receive, national insurance pensions while in the United Kingdom, the amount paid by the United Kingdom will be deducted from the arrears of social security benefit payable on their return.

MEDICAL, HOSPITAL, AND OTHER RELATED BENEFITS.—The part of the Act dealing with medical and like benefits is of general application to all persons ordinarily resident in New Zealand, and makes provision for medical, pharmaceutical, hospital, maternity, and other related benefits. The Act provided that the various benefits should be available on and after 1 April 1939 or, if for any reason arrangements for the effective administration of benefits of any of the prescribed classes could not be completed before that date, such benefits should be available on or after such later date as might be determined by the Minister (being the earliest possible date on which arrangements for their effective administration could be brought into operation).

The Act also gives authority for the inauguration of supplementary benefits as and when the occasion for providing such benefits arises. Among the supplementary benefits contemplated were specialist and consultant services, radiological services, dental services, home nursing services, and domestic assistance. All of these benefits have been introduced and are referred to under their respective headings.

Medical Benefits.—Under the provisions contained in the Act every person is entitled to such medical treatment as is ordinarily given by medical practitioners in the course of a general practice. Certain services are excluded, the principal of these being as follows:

  1. The administration of anaesthetics:

  2. Medical services afforded in relation to maternity cases. (These services are covered by maternity benefits and are described under a later heading):

  3. Medical services involved in any medical examination of which the sole or primary purpose is the obtaining of a medical certificate:

  4. Medical services involved in the treatment of any venereal disease in a communicable form. (Treatment in this connection is provided for under the Health Act 1920):

  5. Medical services involved in or incidental to the extraction of teeth by a medical practitioner:

  6. Medical services in respect of which fees are payable under the Social Security (X-ray Diagnostic Services) Regulations 1941, Social Security (Physiotherapy Benefits) Regulations 1951, and Social Security (Laboratory Diagnostic Services) Regulations 1946—see later headings:

  7. Medical services afforded by means of advice given by telephone, telegram, or letter except under circumstances specifically approved by the Director-General of Health, and medical services not afforded by a medical practitioner in person.

The principal Act provided that a registered medical practitioner who wished to come within the scope of the scheme was required to enter into a contract with the Minister, and regulations issued on 19 February 1941 prescribed the procedure in connection with the initiation of the scheme, the classes of benefits that were to be provided, the obligations of practitioners who undertook to operate the scheme, and the rates of remuneration payable to them. A person entitled to receive medical benefits was required to make application on the prescribed form, which he then presented to the medical practitioner of his choice. If the practitioner was willing to provide the necessary services for the person named in the form, he completed an agreement as between the applicant and himself by attaching his signature thereto. These completed agreements formed the basis of the practitioner's list of patients, for each of whom he was entitled to receive from the Social Security Fund a capitation fee at the rate of 15s. per annum, plus mileage fees in certain circumstances. This scheme came into operation on 1 March 1941.

An important change in principle was made by the Social Security Amendment Act 1941, which provided an alternative to the capitation scheme. This amendment, which came into force on 1 November 1941, and which was subsequently modified by the 1949 amendment to the principal Act, provides that every medical practitioner who renders any of the prescribed services shall be entitled to receive from the Social Security Fund a reasonable fee not exceeding 7s. 6d. for every occasion on which any such service is provided. Mileage fees are also provided for in certain cases. Regulations which came into force from 1 September 1950, and revoked the Social Security (General Medical Services) Regulations 1941, stipulate that where the practitioner is called upon to provide, in response to an urgent request, services on a Sunday or holiday, or between the hours of 8 p.m. and 8 a.m., the appropriate fee shall be a reasonable one not exceeding 12s. 6d. The Act also provides that the practitioner, instead of claiming from the Fund the amount to which he is entitled under the Act, may receive payment from the patient. This refund system, by virtue of the 1949 amendment, is not to apply unless authority is given by the Council of the New Zealand Branch of the British Medical Association after consultation with the Minister or where the amount is recovered from a registered friendly society. In such cases the patient is entitled to recover from the Fund (such recovery being limited to the prescribed fee), and the practitioner is required to provide the necessary receipt to enable this to be done.

The 1949 amendment to the Social Security Act prohibited practice under the capitation system and fee for service system at the same time. This amendment also laid down conditions in respect of the right to recover fees from patients and for reference of accounts to the Divisional Disciplinary Committee appointed under the Medical Practitioners Amendment Act 1949. These provisions came into force as from 1 April 1950.

Pharmaceutical Benefits.—Persons claiming medical benefits are entitled to receive, without cost to themselves, all such medicines, drugs, approved appliances, and materials as are prescribed for their use by a medical practitioner in the course of providing any medical services under the Act. This class of benefit was introduced on 5 May 1941, regulations providing for them having been issued on 22 April 1941. Under these regulations the proprietor of any pharmacy within the meaning of the Pharmacy Act 1939, or any other person entitled to sell any drugs or pharmaceutical requirements, may be permitted to become a contractor under the scheme. The regulations stipulate that the Minister shall prepare a drug tariff, which shall contain particulars of maximum quantities, standards of quality, and prices of medicines, drugs, appliances, etc., that may be supplied and charged against the Fund. Hospital Boards are entitled to receive payment for pharmaceutical requirements supplied to outpatients, but not in respect of inpatients.

Hospital Benefits.—The Act provides for the payment to Hospital Boards and the proprietors of licensed hospitals and to other approved institutions (who have entered into contracts under the Act) of prescribed amounts in respect of hospital treatment afforded by them. The amount paid to a Hospital Board is in full satisfaction of its claim for the treatment of patients; in the case of licensed hospitals and other institutions the amount paid is in partial satisfaction of claims against the patients or other persons liable for the hospital charges.

These benefits came into force on 1 July 1939, and the present rates from 1 October 1954, which vary for different classes of hospitals defined by regulations, are as follows:

  1. Where treatment has been afforded in a Class A hospital on not more than two days, the sum of £2 2s.:

  2. Where afforded in a Class A hospital on more than two days, the sum of £1 1s. for every day on which any treatment is afforded:

  3. For treatment in a Class B hospital, the sum of 18s. for each day:

    Provided that the day of admission to hospital and day of discharge therefrom shall together be counted as one day.

Prior to 1 April 1943 the rates were 12s. and 6s. for (a) and (b) respectively, and from then to October 1954, the corresponding rates were 18s. and 9s.

The Act also provides that in lieu of payment being made in respect of individual hospital patients the Minister may from time to time authorize the payment of a grant in respect of hospital treatment afforded in any private hospital or other approved institution.

In addition to the public hospitals and licensed private hospitals, there is another limited class of semi-public hospitals which, in accordance with the Act, has been approved for the purposes of hospital benefits. This class includes the Karitane Baby Hospitals (six), conducted by the Royal New Zealand Society for the Protection of Women and Children, more commonly known as the Plunket Society, and in addition a home for incurables operated under a charitable trust. Special rates were determined for these classes of hospital, and such payments must be accepted in full satisfaction of the claim of the institution authorities.

Hospital benefits are also available in respect of maintenance and treatment afforded to any inpatient of Queen Mary Neurological Hospital, Hanmer Springs, or of the Rotorua Sanatorium. The fees chargeable to patients of these institutions are reduced by 9s. per day, and corresponding payment is made from the Social Security Fund to the credit of the Departments controlling the institutions.

Regulations issued on 19 March 1941 (since replaced by the Social Security (Hospital Benefits for Outpatients) Regulations 1947) made provision for free treatment of outpatients at public hospitals. “Hospital treatment” in relation to an outpatient of any public hospital covers the supply of artificial aids, including contact lenses (introduced 1 June 1947), hearing aids (1 November 1947), and artificial limbs (1 April 1948), and all medical, surgical, or other treatment afforded by the staff of the hospital; but does not include dental treatment or services in respect of which fees are payable under specific Social Security Regulations (X-ray diagnostic services, laboratory diagnostic services) referred to under later headings. The amounts to be paid to Hospital Boards from the Social Security Fund for providing outpatient treatment are determined by the Minister and may not be less than one-half of the expenditure or liability incurred in providing the services.

Mental Hospitals.—The principal Act made provision for the treatment of patients in public mental hospitals without charge as from 1 April 1939. By section 10 of the Social Security Amendment Act 1939 a licensed (private) mental hospital may be recognized and approved by the Minister as a hospital for the purposes of the Act, and hospital benefits in respect of treatment therein are payable accordingly. All expenditure since 1 April 1945 in connection with public mental hospitals has been borne by the Consolidated Fund.

Maternity Benefits.—Maternity benefits include ante-natal and post-natal advice and treatment by medical practitioners, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere.

These benefits came into force on 15 May 1939, but the maternity medical practitioner service was not in full operation until 1 October of that year. The principal Act required that medical practitioners, licensees of private hospitals, etc., and midwives and maternity nurses who wished to come within the scope of the scheme should enter into a contract with the Minister. While this provision remains in force in regard to hospitals and midwives and maternity nurses, the Social Security Amendment Act 1939 provides that any medical practitioner who renders medical services to a woman entitled to a maternity benefit is thereby entitled to receive certain prescribed fees from the Social Security Fund. The scale of fees, which may be fixed by agreement between the Minister and the New Zealand Branch of the British Medical Association, or in default of such agreement by a special tribunal, is intended to cover the usual services performed in maternity cases. The amount calculated in accordance with the scale of fees for the time being in force shall be accepted by the medical practitioner in full satisfaction of his claims in respect of the services for which payment is made, except in the case of a practitioner who is recognized as an obstetric specialist in accordance with the terms of the Act. Such a practitioner, in addition to the fees payable from the Social Security Fund, may recover additional fees from the patient.

The main provisions in regard to maternity benefits apart from the medical practitioner service are as follows:

  1. State maternity (St. Helens) hospitals: No charge is made for any services in the St. Helens Hospitals.

  2. Public maternity hospitals or maternity wards under the control of Hospital Boards: Payment from Social Security Fund to Hospital Board—

    1. £1 10s. in respect of the day of birth of the child and for each of the succeeding fourteen days:

    2. A fee of £2 where any patient is actually attended during labour and at delivery by a medical officer employed by the Board.

    These amounts are to be regarded as in full settlement of all claims in respect of the maternity benefits afforded by the Board.

  3. Licensed (private) maternity hospitals: Licensees of licensed maternity hospitals who have entered into contracts under the Act are entitled to receive fees from the Social Security Fund at the same rate as stated in (2) (a) in regard to Hospital Boards. In some cases the licensee's contract requires him to accept such payment in full satisfaction of his claim in respect of the prescribed period, and in other cases he is permitted under his particular contract to make a specified additional charge on the patient.

  4. Midwives and maternity nurses: Approved midwives and maternity nurses who are in attendance in cases where confinement takes place other than in a maternity hospital are entitled to receive from the Fund fees at the rate of £1 for the day or days of labour (£2 in the case of midwives) and 13s. per day for each of the fourteen days succeeding the birth of the child or 5s. per day if a visiting obstetric nurse only. These amounts are to be regarded as in full satisfaction of a nurse's claims in respect of the nursing services.

X-ray Diagnostic Services.—The first of the supplementary benefits was introduced by the Social Security (X-ray Diagnostic Services) Regulations 1941, which came into operation on 11 August 1941. The benefits provided for by these regulations comprise the following:

  1. The making of X-ray examinations with the aid of a fluorescent screen:

  2. The taking of X-ray photographs:

  3. The supply and administration of any drugs or other substances for the purposes of any such examination or photograph:

  4. The provision of medical services incidental to any such examination or photograph, except medical services of a kind not ordinarily performed by radiologists as such:

  5. The provision of any other incidental services for the purposes of any such examinations or photographs.

X-ray photographs or X-ray examinations made or taken for dental purposes or for the purposes of life assurance, are not included in the services that may be provided.

X-ray examinations for the purpose of obtaining medical certificates for production to other persons, or routine examinations at the request of an employer, are not to be charged to the Social Security Fund. This does not exclude examinations for medical certificates for the purposes of benefits under the Social Security Act 1938 or “sickness benefits” from a friendly society, or group examinations approved by the Director-General of Health.

In order to be recognized as a radiologist for the purpose of the regulations a medical practitioner is required to make application to the Minister specifying his academic qualifications and professional experience, and also the nature of the apparatus or equipment in his possession or available for his use in the performance of radiological work. The Minister may give absolute or limited recognition or may refuse recognition. Absolute recognition covers all classes of X-ray diagnostic services, whereas limited recognition may exclude any specified class or classes of service, or may be restricted to certain specified classes of service. An amended scale of fees payable from the Fund in respect of services rendered by recognized radiologists is prescribed in a schedule to the Social Security (X-ray Diagnostic Services) Regulations 1941, Amendment No. 1, issued on 28 January 1942. Where the service is rendered by a medical practitioner employed or engaged by a Hospital Board the prescribed fees are to be accepted by the Board in full settlement, but in other cases the amount of such fees is deducted from the amount charged to the patient, who is responsible for the balance, if any.

Physiotherapy Benefits.—The second supplementary benefit introduced concerns physiotherapy treatment by private physiotherapists, and commenced on 1 September 1942, the current regulations being the Social Security (Physiotherapy Benefits) Regulations 1951. The general arrangement for these benefits consists of contracts with registered physiotherapists under which they are paid from the Social Security Fund a fee of 3s. 6d. for each treatment and undertake not to charge the patient any additional fees in excess of 6s. 6d. for treatment afforded in their rooms or 11s. 6d. for treatment afforded elsewhere.

No physiotherapy treatment is recognized for the purpose of the benefits unless it is given on the recommendation of a medical practitioner, and not more than six weeks' treatment may be given on a single recommendation.

Specialist Services.—The Finance Act (No. 2) 1942 brought specialist services within the scope of the medical benefits. Specialist services are defined as “medical services that involve the application of special skill and experience of a degree or kind that general practitioners as a class cannot reasonably be expected to possess”. An amount not exceeding 7s. 6d. is payable from the Fund (by way of refund to the patient) in respect of every occasion on which any such services have been provided. The Social Security Amendment Act 1949 authorizes the making of regulations providing for benefits in respect of any class or classes of specialist medical services and for conditions governing the determination of a scale of fees.

Home-nursing Services.—Home-nursing services free of cost to the recipients were introduced by the Social Security (District Nursing Services) Regulations 1944, which stipulate that no charge may be made for district nursing services provided by any Department of State, Hospital Board, or subsidized association elsewhere than in a hospital or other institution. Provision is made for payment from the Social Security Fund to the Department of State, Hospital Board, or association providing district nursing services, of such amounts as the Minister of Health may determine, having regard to the costs incurred in providing such services. The commencement date was 1 September 1944.

Domestic Assistance.—The provision of monetary assistance to approved incorporated associations formed for the purpose of providing domestic assistance in homes, or whose objects include the provision of such assistance, is made by the Social Security (Domestic Assistance) Regulations 1944. Assistance in this connection (commenced 20 December 1944) is restricted by the regulations to the following classes:

  1. Cases where there are one or more children under twelve years of age permanently residing in a home and the mother or other woman in charge of the home is wholly or partially incapacitated from undertaking her ordinary domestic duties by reason of pregnancy or maternity, or by reason of accident, sickness, etc.:

  2. Cases where there are three or more children under twelve years of age permanently residing in the home, and any member of the household requires special care and attention by reason of sickness or infirmity:

  3. Cases where all members of the household of an age or condition to help in the home are wholly or partially incapacitated from work by sickness or otherwise:

  4. Cases where lack of domestic assistance in the home is a cause of undue hardship.

The terms on which the services of a domestic assistant are provided are to be determined by agreement between the association and the householder, and the association is deemed to be the employer.

In fixing the amounts to be paid from the Social Security Fund to any association the Minister shall have regard to the expenses incurred in providing the services of domestic assistants, including expenditure incurred in the organization of any scheme of registration or enrolment or in the training of the assistants, and to the amounts recovered from the householders to whom assistance has been rendered.

Laboratory Diagnostic Services.—The benefits concerning laboratory diagnostic services came into operation on 1 April 1946, and comprise the supply of all materials or substances required for the purpose of providing laboratory diagnostic services, and the provision of medical services incidental to any laboratory diagnostic service, except medical services of a kind that are not ordinarily performed by pathologists as such, and the provision of any other incidental services for the purposes of laboratory diagnostic services.

The following services are not included:

  1. Examination of specimens for public health.

  2. Post-mortem examinations.

  3. Laboratory services for dental purposes or for the purposes of life insurance.

  4. The preparation of sera and vaccines.

The schedule of fees payable from the Fund provides for two scales, one covering fees payable to Hospital Boards and the other covering fees payable to recognized pathologists. In each case the prescribed fee shall be accepted in full satisfaction in respect of the services provided.

Dental Services.—The Social Security (Dental Benefits) Regulations 1946 made provision for the introduction of free dental treatment as from a date to be appointed by the Minister. The regulations restricted the application of dental benefits to persons under nineteen years of age, and provided that they were to be introduced according to such age groups as the Minister may determine. These benefits commenced on 1 February 1947, and at present are confined to persons who are under sixteen years of age or were, in the last term of the immediately preceding calendar year, enrolled in a primary or intermediate school or department.

The regulations provide that the services may be provided—

  1. By a registered dentist or a State dental nurse in a State dental clinic; or

  2. By a contracting dentist pursuant to a contract under the regulations; or

  3. By a contracting authority in a dental department of a public hospital or in a dental school pursuant to a contract under the regulations.

A schedule to the regulations prescribes the nature of the benefits that may be provided and a scale of fees payable to contracting dentists and authorities in respect thereof.

Artificial Aids.—As stated earlier (page 218), the Social Security (Hospital Benefits for Outpatients) Regulations 1947 made provision for the supply of artificial aids, which term includes artificial limbs, hearing aids, contact lenses, and other appliances for the physical aid or relief of persons as the Minister may from time to time prescribe, either wholly or partly at the cost of the Social Security Fund. Artificial aids at present prescribed for the purposes of the regulations, are—

  1. Contact Lenses.—These may be supplied in respect of the following optical disabilities: (a) conical cornea, (b) gas keratitis, (c) certain forms of irregular astigmatism and any other conditions which cannot be corrected by ordinary spectacle lenses and which show marked improvement with contact lenses. In each case the supply of such lenses must be recommended by an ophthalmologist employed or engaged by a Hospital Board and approved by the Director-General of Health, acting upon the advice of a medical referee appointed for this purpose.

  2. Hearing Aids.—Individual valve type hearing aids may be supplied subject to the following conditions:

    1. The patient possesses a hearing loss of at least 35 decibels in the better ear over the significant frequencies of speech or such other loss of a lesser degree as, in the opinion of an otologist employed or engaged by a Hospital Board, renders the use of an aid necessary.

    2. The patient's hearing loss is such that in the opinion of the otologist it is capable of correction or marked improvement by the use of the type of hearing aid supplied or approved for the purpose of the benefit.

    It is provided that in respect of patients who satisfy all of the above conditions but who do not wish to avail themselves of the hearing aid issued free of charge by Hospital Boards there may be paid a sum not exceeding £13 towards the purchase of any aid approved for the purposes of these benefits. If a patient has received a benefit for a hearing aid within the preceding five years, the Hospital Board may pay half (or up to a maximum of £6 10s.) of the cost of replacement, provided that the replacement aid will assist hearing more than the existing aid and that the patient is otherwise eligible.

  3. Artificial Limbs.—The supply of artificial limbs is subject to the following conditions:

    1. The patient has not obtained or is not entitled to obtain a limb as an ex-serviceman under the provisions of the War Pensions Regulations 1945 or under the provisions of section 46 of the Workers' Compensation Amendment Act 1947:

    2. The supply of the limb is recommended by an orthopaedic surgeon employed or engaged by a Hospital Board:

    3. The limb is of an approved type and can, in the opinion of the supplier's orthopaedic adviser, be satisfactorily fitted:

    4. Not more than 80 per cent of the cost of the limb shall be borne by the Social Security Fund.

For the purposes of the regulations “artificial limb” includes artificial arms, artificial hands, artificial legs, and artificial feet, and includes an initial supply of not more than six pairs of limb socks for such limbs.

Benefits and Pensions in Force.—A summary showing patriculars of the various social security benefits and the various pensions in force in each of the last three financial years is as follows.

Class of Benefit or PensionNumber in Force at 31 MarchAnnual Value at 31 MarchPayments During
1954195519561953–541954–551955–56
££££

* The expenditure figures given under this heading are gross—i.e., not reduced by the amounts recovered under maintenance orders, widows' benefits.

† Excluding recoveries.

Social security benefits—
  Monetary—
    Superannuation75,22778,17380,8327,679,0406,029,1836,750,2267,771,406
    Age122,205121,063118,66822,727,29519,922,23422,251,09822,831,089
    Widows'*12,07212,19711,7712,797,0242,323,8352,664,4612,849,308
    Orphans'30230029030,99527,58328,89930,688
    Family290,480298,370308,55818,772,66917,618,58118,179,09918,860,866
    Invalids'8,1948,1107,7431,628,8171,488,4251,616,5621,680,111
    Miners'508481452121,481123,547128,663127,351
    Unemployment17195 6,5755,6604,247
    Sickness4,3954,2773,613 1,086,2411,276,8171,302,868
    Emergency2,2302,2012,989 366,558430,135534,104
    Special assistance2,6873,2293,521 102,329135,162163,334
      Totals518,317528,420538,442 49,095,09153,466,78256,155,372
    Medical    3,085,7493,350,1803,548,080
    Hospital    2,184,2393,411,0404,764,666
    Maternity    924,6161,147,3071,376,564
    Pharmaceutical    2,919,6203,047,3314,039,145
    Supplementary    1,49,8221,633,0661,818,699
      Totals    10,607,04612,588,92415,547,154
  War pensions, etc.—
    First World War (1914–18)17,41917,07416,6832,940,1922,776,8913,110,9483,043,395
    Second World War (1939–45)24,76624,70324,6872,272,1062,107,5752,341,9402,357,355
    Kay Force10416418313,8819,37714,50514,833
    South African War2928265,2204,5285,0515,363
    War Veterans' Allowances6,8107,6168,4792,832,8331,822,0182,212,2232,707,308
    Mercantile Marine242424 2,3842,8672,668
    Emergency Reserve Corps999 1,6181,9341,978
    War Pensions Emergency Fund    2,7723,2654,254
      Totals49,16149,61850,091 6,727,1637,692,7338,137,154
Other: Sundry pensions and annuities Bonuses—364424465 55,28568,86972,813
  Social security    1,644,9253,481 
  War pension    211,300480 
      Grand totals567,842578,462588,998 68,340,81073,821,26979,912,493

The total number of persons in respect of whom social security benefits (including dependent wives and children) were payable at 31 March 1956 was 958,210, or 4,410 per 10,000 of population. For the previous year the corresponding figures were 931,446 and 4,371 respectively.

During the year ended 31 March 1956, £42,306,777, or 59 per cent of the total expenditure (£71,702,526) on monetary and medical benefits including special assistance was paid without a means test, the remaining amount being subject to a means test.

The following table gives details of expenditure on the various classes of medical benefits during the last five financial years. £

1951–521952–531953–541954–551955–56

* Mainly on account of hospital benefits.

Maternity benefits—
  Public hospital fees417,058443,094455,271606,447753,404
  Private hospital fees168,085157,782142,455170,385200,532
  Medical practitioners' fees281,351298,222296,967329,481396,494
  Mileage fees8,3979,5859,94912,66214,929
  Obstetric nurses' fees4,0664,1234,4153,5454,705
  Private hospital subsidies5,8246,6168,0599,287 
  Private hospital loans  7,50015,5006,500
      Totals884,781919,422924,6161,147,3071,376,564
Medical benefits—
  Capitation fees4,5195,1704,7924,9984,412
  Mileage fees155,626171,716169,643183,039197,493
  General medical services2,529,9062,784,0512,835,9833,092,1443,275,171
  Special arrangements57,22365,81863,74664,45063,470
  Purchase of sites and erection of residences for medical officers13,30920,44711,5855,5497,534
      Totals2,760,5833,047,2023,085,7493,350,1803,548,080
Hospital benefits—
  Public hospitals—
    Inpatients1,562,7161,566,3201,598,9472,638,1913,662,651
    Outpatients152,930163,719175,338187,406341,875
  Private hospitals269,142261,878241,918375,069579,542
  Approved institutions49,26450,24056,10776,43295,453
  Private hospital subsidies68,44279,72697,13884,5473,028
  Private hospital loans   30,28268,151
  Grants towards operating costs of Karitane hospitals10,00013,33514,79119,11313,966
      Totals2,112,4942,135,2182,184,2393,411,0404,764,666
Pharmaceutical benefits—
  Chemists2,371,7692,952,7732,847,9192,952,2693,949,164
  Medical practitioners8,2879,14310,26710,06815,951
  Institutions48,16053,91761,434 2,919,62084,99474,030
      Totals2,428,2163,015,8332,919,6203,047,3314,039,145
Supplementary benefits—
  Radiological services310,189350,120379,641409,381448,374
  Laboratory services149,917178,892189,070227,914277,458
  Physiotherapy services62,57262,24962,57564,34764,863
  Specialist services (neuro-surgery)3,0194,6542,7942,7193,181
  District nursing services124,250114,931127,016137,339150,117
  Dental services469,989545,002659,570716,251798,756
  Domestic assistance4,6995,9437,0156,0717,744
  Artificial-aids benefits55,32246,98161,72163,00063,646
  Other1,9962,1503,4206,0444,560
      Totals1,181,9531,310,9221,492,8221,633,0661,818,699
  Grand totals9,368,02710,428,59710,607,04612,588,92415,547,154
  Recoveries*4,2504,0335,2854,4895,566
  Net totals9,363,77710,424,56410,601,76112,584,43515,541,588

A summary of social security (monetary and health benefits, special assistance and bonuses) and war and other pension payments during each of the last eleven years, together with the amount per head of mean population, is now given.

Year Ended 31 MarchPayments During Year
TotalPer Head of Mean Population
Social Security and Pensions
 ££s.d.
194626,198,2481563
194740,660,62222194
194844,331,51024106
194946,939,3652592
195050,696,783261811
195153,859,1532818
195262,423,07231175
195364,309,9763201
195468,340,8103331
195573,821,2693512
195679,912,4933733

The following table gives a comparison of social security benefits and war pension payments with national income in the years quoted.

Year Ended 31 MarchNet National Income at Factor CostExpenditure
Family BenefitsOther Cash BenefitsAll Cash BenefitsCash and Health BenefitsWar and Other Pensions

NOTE.—Expenditure includes bonus for 1951 and bonus and special assistance for other than family benefits in later years.

Amount £(millions)
1949422.214.220.234.442.34.6
1951611.115.526.241.750.45.5
1953656.216.830.647.457.96.4
1954733.317.633.150.761.37.0
1955797.918.235.353.566.17.8
1956846.118.937.356.271.78.2
Percentage of Expenditure to National Income
19491003.44.88.110.01.1
19511002.54.36.88.20.9
19531002.64.77.28.81.0
19541002.44.56.98.41.0
19551002.34.46.78.31.0
19561002.24.46.68.51.0

MISCELLANEOUS PENSIONS, ETC.—In addition to the various classes of benefits enumerated in the foregoing part of this Section there were 465 pensions at 31 March 1956 classed as “sundry pensions and annuities”. This class covers ex-officers of the Legislative Department, ex-members of the Defence Forces, certain ex-members of the Legislature, and others, by way of compassionate allowance, etc.

7B—WAR PENSIONS, ETC.

LEGISLATIVE AUTHORITY.—All pensions payable to or on account of members of the Forces are now governed by the War Pensions Act 1954, which consolidated the 1943 Act and its amendments, and also incorporated the War Pensions and Allowances (Mercantile Marine) Act 1940 and amendments. The 1915 Act had provided for the payment of pensions on certain conditions to disabled members of the New Zealand Forces of the First World War 1914–18 (as defined by the Act) and to dependants of disabled, deceased, or missing members of such Forces. The object of the War Veterans' Allowances Act 1935, which was deemed part of the War Pensions Act 1915, was to make provision for returned servicemen who, apart from any wounds or other disability not directly attributable to war service, were ageing prematurely or otherwise becoming unemployable by reason of mental or physical disability. The War Pensions Extension Act 1940 extended the provisions of the 1915 Act to cover overseas service in the Second World War, overseas service in any other war in which Her Majesty was or is engaged, and service within New Zealand. This brought Territorials and members of the Permanent Forces within the scope of the war pensions legislation. Pensions to veterans of the South African War were granted prior to 1940 under the authority of the Defence Act 1909, but the Finance Act 1940 transferred this authority to the War Pensions Extension Act 1940. The 1943 Act consolidated these earlier Acts.

The War Pensions Act 1954 extended the grounds for payment of pensions by including overseas service not only in time of war, but also in connection with United Nations emergencies and other emergencies. The same Act also provided that pensions for dependants are no longer to be restricted to the value of benefits received by them from the member during the immediate pre-service period. A new section enables the Governor-General in Council to extend the Mercantile Marine and Emergency Reserve Corps provisions of the Act to any future war.

ADMINISTRATION.—The Secretary for War Pensions, who under the Act must be an officer of the Social Security Department, is charged with the administration of war pensions under the general direction and control of the Minister of Defence. The Act also provides for the appointment of a War Pensions Board (or Boards), which has the responsibility of granting or declining claims for pensions and allowances. This Board consists of not less than three and not more than four members, one of whom must be a registered medical practitioner and one a representative of returned servicemen. Claimants have the right of appeal to a War Pensions Appeal Board, also appointed under the Act. The Appeal Board consists of three members, two of whom must be registered medical practitioners, one of these being a representative of returned servicemen.

From 1 January 1953 the administration of war bursaries under the War Bursaries Regulations 1941 was taken over from the Department of Education. These are available to children of war veterans, seriously and permanently disabled ex-servicemen, and of deceased ex-servicemen in respect of whose death a war pension is paid. The War Pensions Regulations 1956 revoked the War Bursaries Regulations 1941 and provide, from 1 February' 1956, for payment of bursaries at the following rates:

Class of BursaryPer Year
£s.d.
(a) Secondary school children2500
(b) Full-time university students3000
(c) Part-time university students1000
(d) Part-time technical school children1100

The rates payable under (a) and (b) are doubled in the case of an orphan child or a child whose father or mother is in receipt of economic pension or war veterans' allowance.

During 1955–56, 1,350 bursaries were granted, expenditure on this behalf being £38,193 for the year.

GROUNDS FOR PAYMENT OF WAR PENSIONS.—Pensions in respect of the death or disablement of any member of the New Zealand Forces are payable to the dependants of the member (in the case of death) and to the member and his dependants (in the case of disablement) in any of the following cases:

  1. Where death or disablement occurred while on service overseas as a member of the Forces in connection with any war in which Her Majesty was then engaged, or in connection with any emergency, whether arising out of the obligations undertaken by New Zealand in the Charter of the United Nations or otherwise (i.e., includes service rendered in Korea):

  2. Where death or disablement is attributable to his service in New Zealand or overseas, e.g., in Malaya:

  3. In any case where the condition which resulted in the death or disablement was aggravated by his service in New Zealand or overseas.

Provision is also made for pensions and allowances to members of the Emergency Reserve Corps and their dependants in respect of death or disablement attributable to their duties as members.

It is laid down that the onus of proving that death or disablement was attributable to service, or that the condition which resulted in death or disablement was aggravated by such service, shall not be on the claimant and that the War Pensions Board and the War Pensions Appeal Board shall give claimants the full benefit of all presumptions in their favour. A member who was graded fit for service when he entered the Forces is deemed to have been absolutely fit at that time unless any defects were noted then or within the first two months of service. This presumption does not operate if the member failed to disclose any material fact to the medical examiner. The Act also states that the Boards are not to be bound by technicalities or legal forms or rules of evidence, but shall determine all claims in accordance with their merits.

RATES OF WAR PENSIONS.—The 1943 Act provided for the general rates of disablement pensions being increased by 50 per cent, and for increases in dependants' and economic pensions, other increases being given in later amendments to that Act.

The Finance Act 1954 validated increases of 10s. per week in the basic rate of disablement and widows' pensions from 1 January 1954 and 10s. per week in the rate of war veterans' allowances from 15 September 1953. The rates of certain war pensions and allowances were further increased by 2s. 6d. per week from 18 November 1954 by the War Pensions Amendment Act 1955.

From 1 August 1955, by the War Pensions Amendment Act (No. 2) 1955, an increase of 5s. a week was authorized in the maximum rates of economic pensions where the pensioners are unmarried, or are living apart from their husbands or wives, subject to a discretionary power for the War Pensions Board to refuse the increase where the pensioner is sharing household expenses with another person,

In computing the rate of any pension or allowance, no account is taken of the first £26 of pensions or annuities received after 30 November 1955 under the Superannuation Act 1947 or the National Provident Fund Act 1950, where the recipients are 65 years or over.

There was a further increase of 4s. a week from 19 November 1956 in economic and wives' pensions, mothers' allowances, orphans' pensions, and war veterans' allowances.

WAR PENSIONS AND ALLOWANCES, AND WAR VETERANS' ALLOWANCES: SUMMARY OF MAXIMUM RATES.—The list below summarizes the present (January 1957) maximum rates of war and economic pensions and allowances.

Class of Pension, Allowance, etc.Weekly Rate
£s.d.

* Ranges from £3 for all ranks and ratings of Forces up to Captain (Army) and equivalent in other services, masters of ships up to 5,000 tons and ratings of all ships, members of Emergency Reserve Corps; to £3 7s. Major or equivalent and master of ship over 5,000 tons; £3 16s. Lieutenant-Colonel and equivalent; £3 18s. Colonel and equivalent; and £4 Brigadier or upwards and equivalent in other services.

Dependants of Deceased Members of the Forces, Mercantile Marine, or Emergency Reserve Corps
Widow—
  Basic rate*300
  Mother's allowance (where one child)2116
  Mother's allowance (where two or more children)316
  Economic pension3190
  Allowable income1100
Child—
  Where both parents dead or if not under control of mother266
  Other children0100
Widowed mother—
  Basic rate Up to300
  Economic (wholly dependent or mother of two or more sons being deceased members of the Forces)3190
  Economic (partly dependent)2190
Other dependant Up to300
Guardian of children of deceased member3140
Totally Disabled Members of the Forces, Mercantile Marine, or Emergency Reserve CorpsWeekly Rate
Member—£s.d.
  Basic disablement pension400
  Special increment for blindness, multiple or serious disabilities2100
  Economic pension (if unmarried £3 19s.)3140
  Allowable income1100
  Attendant's allowance7180
Wife3140
Child0100
Other dependant Up to3140
War Veteran's Allowance
Unmarried veteran (£205 8s. a year)3190
Married male veteran (£384 16s. a year)780
Married female veteran (£192 8s. a year)3140
 Yearly Rate
 £s.d.
Age supplement (maximum) payable to veteran, or to his wife, or both, as each attains the age of 65 years3900
Allowable income (including value of age supplement)7800
Assistance from Emergency FundAccording to circumstances
Clothing AllowanceYearly Rate
  Loss of—£s.d.
    Two limbs or parts2400
    Leg or part2200
    Arm or part1600
  Use of mechanical applianceUp to 1600

The payment of 10s. a week to each child may be made either by way of family benefit or, alternatively, by way of war pension.

The earnings of women from domestic or nursing services in private homes or in hospitals or charitable institutions up to £78 a year are not taken into account.

Pensions payable for specific disabilities are assessed as a percentage of the full pension payable for total disablement. The following schedule sets out the relevant disabilities and percentages.

Nature of DisabilityPer Cent of Full Pension Payable
    Total blindness100
Loss of: two limbs; limb and eye; both hands; all fingers and thumbs; both feet; hand and foot100
Incurable insanity100
Very severe facial disfigurement100
Amputation of—
  Right arm through shoulder joint; leg through hip joint; leg through upper third of thigh (without useful stump)100
  Left arm through shoulder joint95
  Leg through upper third of thigh (with useful stump)90
Permanent loss of speech90
Amputation of: arm at or above elbow; leg through knee joint or middle or lower third of thigh85
Total deafness85
Severe facial disfigurement80
Amputation of—
  Arm below elbow; leg below knee; right hand75
  Left hand70
Loss of—
  One eye; four fingers50
  Three fingers; thumb40
  Two fingers25
  Index finger of either hand20

If a member, while in receipt of a permanent pension of an amount of not less than 70 per cent of the maximum pension that would be payable in respect of total disablement, dies from any cause not attributable to service as a member of the Forces, a pension may be granted to his widow or dependent children as if death was attributable to service.

Other grants and concessions which may be made include the following:

  1. A free pass on the New Zealand Railways rail and road services to members in receipt of full permanent pensions:

  2. A permit to travel first class at second-class rates on the New Zealand Railways to amputees and others suffering locomotive disabilities to a degree of over 50 per cent for which they receive permanent pensions:

  3. Free medical and surgical treatment in respect of pensionable disabilities. Surgical appliances such as artificial limbs, etc., are also supplied free and kept in good order and repair:

  4. Payment of an annual travelling-allowance of up to £26 to totally disabled pensioners who are unfit to travel alone:

  5. Payment of up to £100 towards the cost of structural alterations with a £25 provision for furniture to provide special accommodation for a pensioner suffering from pulmonary tuberculosis:

  6. A maximum accommodation allowance of £1 15s. per day is payable to war pensioners reporting for medical examination or treatment, while compensation in respect of loss of earnings is up to £2 per day.

  7. Interest-free loans to certain seriously disabled pensioners to purchase motor-cars; payment of loadings on life-assurance policies where the loadings are due to war disabilities; gallantry awards to disablement pensioners; clothing allowances to war amputees and other disablement pensioners obliged to wear artificial appliances; and funeral grants in respect of deceased ex-servicemen.

Pensions to Dependants (other than Wives or Children).—In addition to pensions for wives and children, a pension may be granted to any member of a deceased or disabled serviceman's family. “A member of the family” includes a parent, grandparent, step-parent, grandchild, step-child, brother, sister, half-brother, half-sister, and mother-in-law. “Child,” in relation to any member of the Forces, means a child under the age of sixteen years, and includes an adopted child and an ex-nuptial child (subject to certain conditions). The parents of a male member of the Forces are included in the definition of dependant in every case, without proof of pre-service dependency. Also, except in the case of the wife, widow, children under sixteen, and parents, the eligibility of dependants may be based on the expectation of dependency on the member, whereas previously actual dependency at some time in the twelve months preceding the commencement of service had to be shown.

South African Veterans' War Pensions.—The original authority for the payment of pensions in respect of service in the South African War was the Defence Act 1909, but the Finance Act (No. 4) 1940 provided that pensions might be granted under Part III of the War Pensions Extension Act 1940 in respect of death or disablement suffered by members of any New Zealand Contingent who served in South Africa in connection with the South African War. The War Pensions Extension Act 1940 was repealed by the War Pensions Act 1943, and pensions to veterans of the South African War were made payable under the general authority of the latter with its amendments. The provisions of the Act have been extended to include a member who served in any of Her Majesty's Forces in the South African War if he had been born in New Zealand or was domiciled therein at the commencement of the war. The present authority is the War Pensions Act 1954.

In addition to war pensions, a South African veteran who is in receipt of an age-benefit under the Social Security Act may receive an additional benefit of £13 13s. per annum. Such payments are included with social security benefits and not with war pensions.

Economic Pensions.—An “economic pension” is defined as a supplementary pension granted on economic grounds and is in addition to any pension payable as of right in respect of death or disablement. In considering a claim for an economic pension the Pensions Board is required to take into consideration the ability of the claimant to obtain and retain suitable employment, the personal income and ownership of any property, the cost of living, and other relevant matters.

Servicemen pensioned for minor disabilities do not receive economic pensions.

WAR VETERANS' ALLOWANCES.—The object of war veterans' allowances was to make provision for members of the Forces who, apart from any wounds or other injuries received during war service, were ageing prematurely or otherwise becoming unemployable by reason of mental or physical incapacity. The term “veteran” includes—

  1. Any male member of the New Zealand Forces who has served as such in actual engagement with the enemy or, by reason of his period of overseas service and the arduous or dangerous nature of it, is considered a proper person for the grant of such:

  2. Any female member who has served overseas as a member of the New Zealand Forces:

  3. Any other person who, being a bona fide resident of New Zealand at the commencement of any war or emergency in which members of the New Zealand Forces have served as such, has served in that war or emergency as a member of any of Her Majesty's Forces, other than the New Zealand Forces.

A condition precedent to the granting of a war veteran's allowance is a minimum of five years' continuous residence in New Zealand immediately preceding the date of the claim. Continuous residence is not deemed to be interrupted by occasional absences not exceeding six months in the aggregate increased by one month for each year in excess of five that the veteran has resided in New Zealand; any absences as a member of the Commonwealth Forces are also disregarded.

Whether or not a claimant for an allowance is unfit for permanent employment by reason of mental or physical infirmity is a question of fact to be determined by the War Pensions Board. Claimants have the right of appeal to the War Pensions Appeal Board.

No account is taken of the amount of war disablement pensions in the determination of the war veterans' allowances. In computing any war veteran's allowance no account is taken of the personal earnings of any woman from domestic or nursing services in a private home or hospital or charitable institution up to £78 per year. Up to £26 a year received by a person aged 65 years or over is disregarded under the Superannuation Act 1956 or the National Provident Act 1950.

Where a veteran in receipt of an allowance dies leaving a widow in respect of whom an allowance is being paid a War Pensions Board may, in its discretion, grant the widow a gratuity equivalent to £361 8s. a year for two years or of such lesser amount as it thinks fit.

In conformity with the policy of granting family benefits under the Social Security Act, the War Pensions Amendment Act 1945 abolished war veterans' allowances in respect of dependent children, and from 1 October 1945 these allowances have been paid by way of family benefit.

EMERGENCY RESERVE CORPS PENSIONS.—These pensions are payable under the 1954 Act where death or disablement was suffered by a member of the Emergency Reserve Corps in the course of service (including training), or was directly attributable to such service.

MERCANTILE MARINE PENSIONS.—The War Pensions and Allowances (Mercantile Marine) Act 1940 made provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants in respect of death, disablement, or detention suffered as a result of the Second World War, this being a new departure as far as New Zealand's war-pension legislation is concerned. The scope of the Act was extended to permit of pensions being paid to members of any mercantile marine who are in receipt of similar pensions or allowances from any other Government within the British Commonwealth, provided that such members were, immediately prior to the commencement of the war or of their employment or engagement, bona fide residents of New Zealand. A claimant under this new provision must be actually resident in New Zealand, and the amount of pension or allowance that may be granted is limited to a sum which, together with the amount granted out of New Zealand, will not exceed the pension or allowance that would have been payable had the claimant been a member of the New Zealand mercantile marine. These pensions have been incorporated with war pensions generally under the provisions of the War Pensions Act 1954.

WAR PENSIONS EMERGENCY FUND.—This Fund was established in November 1951 to provide for similar cases to those set out under Social Security Special Assistance (see page 214). During the year ended 31 March 1956 there were 150 grants totalling £4,254, compared with 126 grants totalling £3,265 in the previous year.

WAR PENSIONS APPEAL BOARD.—A claimant may appeal to a War Pensions Appeal Board from a decision of a War Pensions Board within six months of the date on which the decision of the latter was communicated to him. Such an appeal can only be made in so far as it consists of—

  1. The rejection of any claim for a pension in respect of the death or disablement of a member of the Forces on the ground that the death or disablement was not attributable to his service as a member of the Forces or that the condition that resulted in his death or disablement was not aggravated by such service.

  2. The assessment of a pension granted to any member of the Forces in so far as the assessment is based on medical grounds.

  3. The rejection of any claim for a war veteran's allowance on the ground that the applicant is not unfit for permanent employment.

The Appeal Board may confirm the decision of the War Pensions Board or may grant a pension, or, within the limits prescribed by the Act, may increase or reduce the amount of any pension. The number of appeals lodged each year has fallen steadily from the peak of 2,661 in 1944–45 to 227 in 1955–56. Of the 230 appeals dealt with during the year ended 31 March 1956, 104, or 45 per cent, were upheld, 112 disallowed, and 14 struck out or withdrawn.

STATISTICAL REVIEW OF WAR PENSIONS, ALLOWANCES, ETC.—During the year ended 31 March 1956 the Department dealt with 3,338 applications for war pensions. Of these, 579 applications were lodged by ex-servicemen in respect of their own disabilities, the balance being made up of claims by dependants, applications for economic pensions, and war veterans' allowances. The total for the previous year was 4,009, of these 799 being in respect of the applicants' own disability. In addition there were 70 claims received during the year in respect of disablement arising from Compulsory Military Training, 50 of which were granted, and 65 applications from peacetime Armed Forces, of which 38 were granted.

Summary of Disabilities for which Pensions Granted, 1939–56.—The following is a summary of the disabilities attributed to war service from 1939 onwards and for which ex-service personnel had been granted pensions up to 31 March 1956.

Class of Disability or DiseaseType of ServiceTotalPercentage of Total
Overseas (1939–45)KayforceJayforceNew Zealand
Infections and infestations1,8128871232,0303.6
Nervous system9.30032131,68511.03019.4
Eye, ear, and nose6,59855181,3628,03314.1
Circulatory and blood system2,095721,0193,1235.5
Metabolism and endrocrine system397211735731.1
Lungs3,42315541,1564,6488.2
Diseases of bones, joints, muscles, tendons, and ligaments5,2332981,8637,13312.6
Digestive system4,1562991,1765,3709.5
Generative system326 21214490.8
Gunshot wounds and accidental injuries to bones, joints, and soft tissues7,29271251,4408,82815.5
Skin2,44417125313,0045.3
Areolar tissue451 22680.1
Tumours and neoplastic growths1661 532200.4
Malformations300  1314310.7
Amputations4853 205080.9
Urinary tract582531497391.3
Debility443  1095521.0
      Totals45,09735515411,13356,739100.0

The following table shows for all classes of war pensions the number in force at the end of March in each year and the expenditure during the year for the eleven years 1946–56.

Year Ended 31 MarchFirst World War (1914–18)Second World War (1939–45)KayforceWar VeteransSouth African WarMercantile MarineEmergency Reserve CorpsTotal
Number in Force
194620,46026,926 2,02946261149,498
194720,08130,028 2,27742271052,465
194819,71528,249 2,61742241150,658
194919,32027,187 3,36741231049,948
195018,97626,537 3,99739241149,584
195118,57325,901 4,77637261149,324
195218,13525,356135,468 5,96434 32241049,040
195317,78625,141855,9643224949,041
195417,41924,7661046,8102924949,161
195517,07424,7031647,6162824949,618
195616,68324,6871838,4792624950,091
Expenditure (£)
19461,997,3901,662,227 275,0293,5471,8791,3513,941,423
19472,036,8252,080,952 346,6943,5022,9851,3364,472,294
19482,049,3912,031,194 422,2753,6892,7271,3684,510,644
19492,104,627l,906, 562,6343,8922,7001,4474,581,532
19502,271,3712,010,852 743,9993,8262,4031,5885,034,039
19512,311,6061,970,236 964,8823,7262,3591,6285,254,437
19522,711,7102,071,8296711,282,0944,4292,8721,9736,075,578
19532,747,2982,072,4294,4781,471,4054,3152,9571,7646,304,646
19542,776,8912,107,5759,3771,822,0184,5282,3841,6186,724,391
19553,110,9482,341,94014,5052,212,2235,0512,8671,9347,689,468
19563,043,3952,357,35514,8332,707,3085,3632,6681,9788,132,900

The foregoing figures do not include the following: (a) costs of certain medical treatment not available under social security amounting to £53,313 in 1955–56 and £55,145 in 1954–55; (b) railway and bus concessions to pensioners for total and permanent disablement and for locomotive disabilities for which a permanent pension of over 50 per cent disablement had been granted, costing £15,494 in 1955–56 and £15,589 in the previous year; and (c) loading on life-assurance policies where the loading is due to war disabilities, expenditure under this heading being £1,758 in 1955–56 and £1,653 in 1954–55. Travelling allowances of £26 a year were being paid to 714 pensioners at 31 March 1956, and 1,347 clothing allowances of total annual value £25,716 were also being paid. Funeral grants cost £12,635 for the year 1955–56. The annual value of gallantry awards payable to disablement pensioners was £1,348. In 1955–56, 39 interest-free loans totalling £9,525 were made for the purchase of motor cars by certain seriously disabled pensioners.

Administrative costs for 1955–56 in respect of war pensions and allowances amounted to £13,019, as against £14,288 in 1954–55.

Particulars of First and Second World War and Kayforce pensions in force as at 31 March of each of the last five years are given below.

At 31 MarchDisablement PensionsDependants of Disabled Ex-members (No.)On Account of DeathTotal (No.)
Permanent (No.)Temporary (No.)Widows (No.)Parents and Other Dependants (No.)
First World War, 1914–18
195212,7583602,3782,45718218,135
195312,5173082,2982,49217117,786
195412,0963462,2602,56515217,419
195511,7473472,2342,61513117,074
195611,4053152,1972,65411216,683
Second World War, 1939–45
195211,79910,3598081,42296825,356
195312,3429,6257781,42397325,141
195413,1428,5457771,36593724,766
195513,3898,2357681,38292924,703
195613,8527,7697881,42085824,687
Kayforce
1952310   13
19534801  85
195410922  104
1955101513  164
1956161643  183

The number of children for whom payments were made during 1955–56 but who were not included in the preceding table totalled 2,303, being 392 in respect of First World War pensions and 1,911 for Second World War pensions.

The next table shows the number of disability pensions in force at 31 March 1956, classified according to percentage of disablement.

Percentage of DisablementFirst World WarSecond World WarKayforceTotal
PermanentTemporaryPermanentTemporaryPermanentTemporary
1001,984988437253143,667
90–9913557232  244
80–8930117255122 4699
70–7976536381231191,416
60–6967330361225 41,293
50–591,48233745444 152,719
40–491,858268745341143,307
Under 404,2077010,3245,4531111120,176
  Totals11,40531513,8557,7661616433,521

Details of economic pensions payable at 31 March 1956 are now given, together with the totals as at 31 March 1955.

Class of PensionFirst World War, 1914–18Second World War, 1939–45Kayforce
NumberAnnual ValueNumberAnnual ValueNumberAnnual Value
  £ £ £
Ex-members with permanent pensions2,998546,176562101,405  
Ex-members with temporary pensions8014,70745280,5195936
Widows1,916364,056865162,707  
Widowed mothers132,1488513,000  
      Totals, at 31 March 19565,007927,0871,964357,6315936
      Totals, at 31 March 19555,034870,4701,896334,836101,820

7 C—SUPERANNUATION

General.—Superannuation for all Government employees is provided for under the authority of the Superannuation Act 1956, and the separate provisions made for members of the Judiciary and Members of Parliament are also now included in the consolidated measure. Members of the Armed Forces, Police, Post and Telegraph, Public Service, Railways, and teachers, are now contributing to the one Fund, with slightly differing terms and conditions provided to meet the requirements of the various Services.

Local Government employees and the permanent employees of all statutory bodies are provided for under the National Provident Fund Act 1950. The Local Authorities Superannuation Act 1908 has been repealed. For the operations of the National Provident Fund, see Section 7D.

There are also a considerable number of private superannuation funds in existence, some self-contained. Information respecting these is given at the end of this subsection.

The Government Superannuation Fund.—The Government Superannuation Fund, came into being on 1 April 1948, replacing and absorbing the moneys belonging to the former Public Service Superannuation Fund, the Teachers' Superannuation Fund, and the Government Railways Superannuation Fund. Its revenues comprise contributions, subsidies from the Consolidated and other Funds, interest accruing from investments, fines, all moneys that would have been paid into the earlier three Funds, and all other moneys that may be payable into the Fund.

The Fund is administered by a Board consisting of the Minister of Finance as chairman, the Secretary to the Treasury, the Chairman of the Public Service Commission, the General Manager of Railways, the Director of Education, the Director-General of the Post and Telegraph Department, the Commissioner of Police, and six members appointed on the nomination of the various Service organizations.

The benefits of superannuation are now available for all public servants, i.e., persons in the permanent service of the State. Employees of the Government Service, including the Education Service, Police, the Cook Islands Public Service, the Samoan Public Service, and the State Advances Corporation, in addition to the Departments of State under the control of the Public Service Commission, the Railways Department, and the Post and Telegraph Department, may all become contributors to the Fund. Separate provision is made for public servants—i.e., persons in the service of the Crown in respect of the Government of New Zealand in other than an honorary capacity—permanent, members of the regular Armed Forces, Magistrates and Maori Land Court Judges and members of the Judicature (Judges of the Supreme and Arbitration Courts), and Members of Parliament.

Contributions range from 5 per cent of annual salary if under thirty years of age at commencement of contributory service to 10 per cent where the age exceeds fifty years, the increase being at the rate of 1 per cent for each five-year increase in age group. An alternative modified scheme, within the framework of the present standard scheme, was introduced in 1955, under which contributors may elect to contribute only 60 per cent of the standard contribution rates and receive only 60 per cent of the standard benefits. Standard retiring allowances are computed at the rate of a one hundred and twentieth part of the annual salary for each year of contributory service, increased by a sum equal thereto (i.e., on a £1 for £1 basis) up to £500 per annum, reducing thereafter by £1 for each £2 by which the amount exceeds £500. In no case shall the added amount be computed on a lesser salary than £600 per annum. The annual salary for the purpose of this computation is deemed to be the average of that received during the five years immediately preceding retirement, although in special cases, so long as the first computed portion of the retiring allowance is a lesser amount than £150, the average salary received during the last three years may be used if it results in a more favourable computation.

Upon retirement a contributor entitled to a retiring allowance may elect (1) to take an increased allowance to age sixty-five, reducing thereafter, (2) to surrender portion of his retiring allowance in favour of his widow or other approved dependant, (3) to elect to surrender not more than one-quarter of his retiring allowance and to receive in lieu thereof a lump sum payment equivalent to nine times the amount of allowance surrendered, (4) to accept a refund of his contributions.

Payment of retiring allowances and annuities is now made in advance in monthly instalments, no recovery being made should the beneficiary die during the benefit period. When a married contributor dies, whether before or after becoming entitled to a retiring allowance, his widow may elect to receive a refund of the amount of his contributions less any sums received by him during his lifetime, or to receive an annuity at one-half of the rate of his retiring allowance at the date of his retirement, or, if he died before then, to which he would have been entitled if he had retired on the date of his death on the ground of being medically unfit for further duty, disregarding any election to take a variable allowance or to surrender part of the allowance to an approved dependant.

The amount of the widow's annuity is not to be less than £130 (£78 in modified scheme). In addition, £26 per annum (£15 12s. in modified scheme) is payable in respect of each child under sixteen years of age left by a deceased contributor.

The above are general provisions only and for a complete survey need to be supplemented by reference to other provisions in respect of age, length of service, sex, sickness, withdrawals, refunds, subsidiary benefits, etc., contained in the Act.

Contributory membership and retiring allowances as outlined apply generally to permanent members of the Regular Armed Forces. Members of the Judicature are entitled to a retiring allowance based on one-twenty-fourth of their salary for each year of service, with a maximum of two-thirds, and they may elect to contribute 5 per cent of their salary to provide annuities for their widows, calculated as 15 per cent of the final salary. Magistrates and Judges of the Maori Land Court are also entitled to retiring allowances, subject to age and length of service qualifications, one-fortieth of the annual salary at the date of retirement being allowed for each year of service, but in no case is the retiring allowance to exceed two-thirds of that salary. Members of Parliament contribute £85 a year, but if at the date of commencement of the retiring allowance contributions are less than £425 the deficiency must be paid into the Consolidated Fund within such time and in such manner as the Minister of Finance may allow. Subject to eight years of service and attainment of the age of fifty years, retiring allowances are at the rate of £350 a year for the first eight-year period of service, and for each additional year of service an increase of £50, with a maximum rate of allowance of not more than £700 a year. Widows receive two-thirds of their husband's entitlement.

The first £26 of income received by superannuitants over sixty-five years of age is now disregarded for social security purposes.

Adjustments have been made from time to time in the allowances payable to retired contributors and also to widows of ex-contributors to assist in meeting the increased cost of living.

At 31 March 1956 there were 63,116 contributors, paying £2,504,605 per annum into the Fund. The pensioners at the same date numbered 18,639 and were entitled to £5,096,199 per annum, made up as follows.

NumberAnnual Allowances
MalesFemalesTotal
 £
Retired for age or length of service7,8632,79210,6554,049,464
Retired for ill health1,4992771,776352,101
Widows 4,9154,915661,244
Children6686251,29333,390
      Totals10,0308,60918,6395,096,199

Accumulated funds at 31 March 1956 amounted to £21,774,651. Total assets, which amounted to £21,853,749, included: Investments, £19,925,943; interest, due and accrued, £150,620; contributions in course of transmission, etc., £121,471; and cash in hand and at bank, £1,601,430.

The average effective interest earnings (per cent) of the Fund for the year ended 31 March 1956 was slightly under £3 5s.

The total revenue of the Fund for the year ended 31 March 1956 was £7,712,278, including members' contributions £2,504,605, interest on investments and on contributions £692,687, and subsidy £4,409,775. The total amount expended during the year was £5,571,329, including retiring and other allowances £4,857,901, refunds of contributions £596,837, transfers to National Provident Fund £25,741, and other expenditure £1,163.

The following statistics present a review of the operations of the Fund during the last five years.

Year Ended 31 MarchNumber of ContributorsAnnual ContributionsInterest Receivable From InvestmentsContributions From GovernmentAnnual Value of AllowancesAccumulated Fund
  £££££
195258,9312,002,877377,2652,915,0003,409,53811,808,520
195359,3512,040,519352,8162,998,0003,673,08913,924,218
195461,9702,292,062430,9143,068,0004,005,66616,318,931
195561,7762,502,850525,8114,305,0004,725,88319,633,702
195663,1162,504,605657,5793,599,0665,096,19921,774,651

Private Superannuation Funds.—Most large and many small employers have established their own staff superannuation funds. Certain taxation concessions are available to an employer and his employees in respect of their contributions to a superannuation fund provided the fund is approved by the Commissioner of Inland Revenue, and it is probable that there are no funds being administered which have not been approved.

NUMBEROF APPROVED FUNDS

As at 31 MarchNumber to DateAs at 31 MarchNumber to Date
19501,45019542,912
19511,72619553,147
19522,12319563,388
19532,587  

A few funds, particularly those of banks, oil companies, insurance companies, and large companies engaged in international trade, provide pensions on retirement, but approximately 95 per cent of all approved funds provide lump-sum payments on retirement.

Of every 95 lump-sum funds approximately 2 are invested in shares, debentures, and trustee securities, and the remaining 93 are invested in life-insurance policies taken out on the lives of the various employees.

The life-insurance companies regard superannuation funds as an important part of their business, and they have been responsible for a great increase in the number of approved funds in recent years.

7 D—NATIONAL PROVIDENT FUND

GENERAL.—The National Provident Fund established by Act in 1910 came into operation on 1 March 1911 and is administered by a Board comprising the Minister of Finance as Chairman, the Secretary to the Treasury, the Director-General of Health, the Valuer-General, the Superintendent of the Fund, and two other members appointed by and holding tenure of office during the pleasure of the Governor-General. The present legislative authority is contained in the National Provident Fund Act 1950, and the 1954, 1955, and 1956 amending Acts.

In 1955 provision was made for local authorities to lodge with the National Provident Fund moneys which were not required immediately and the Board to hold sinking, depreciation, and other special funds on behalf of local authorities; the 1956 amendment clarified and extended these provisions. These surplus moneys would become available for lending to other local authorities. A special Investment Committee was set up to attend to the investment of moneys in the Fund. The National Provident Fund Account may be kept either at the Reserve Bank or the Bank of New Zealand or in part at each, with appropriate provision for overdraft accommodation.

In addition to guaranteeing the benefits payable under the Act, the State provides a subsidy to the extent of one-fourth of the contributions paid into the Fund, and also meets all the administrative expenses.

The Fund now provides three distinct services:

  1. Public Fund Branch.—Pensions and subsidiary benefits for members of the general public, with extensions for members of approved friendly societies and employees of firms, trade unions, etc.

  2. Superannuation Branch.—Superannuation for employees of all local authorities and other statutory bodies.

  3. An Investment Pool.—Local authorities may temporarily invest otherwise idle loan and other moneys in the Pool.

Public Fund Branch.—Membership of the public portion of the Fund is open to any resident of New Zealand over the age of sixteen. Parents, guardians, or relatives of children may make advance deposits to secure the entry of the child to full membership when he attains the age of sixteen. No medical examination is required on entry. The applicant merely fills in a form at any money order post office, or local office of the Fund, and pays a first contribution. Subsequent contributions may be met by deduction from salary, wages, or a savings-bank account, and a liberal discount is allowed where contributions are paid 157 weeks or more in advance.

Contributions for each 10s. unit of weekly pensions range from 9d. per week for persons joining the Fund at age sixteen to 9s. 4d. per week for persons joining at age forty-nine; full subsidiary benefits attach to the first unit of pension. Any contributor may elect to increase the rate of contribution in accordance with attained age at date of election, so as to increase the number of units of his prospective pension up to a maximum of 200s. weekly.

The following benefits are provided:

  1. *On Incapacity of Contributor.—After five years' membership, for the fourth and subsequent months of total incapacity for work, an allowance of 10s. per week for each child under sixteen years of age. Contributions in respect of the first 40s. weekly pension are remitted during the receipt of this allowance, which may at the discretion of the Board be abated in respect of other income in excess of £6 per week.

  2. *On Death of a Contributor.—After five years' membership, an allowance of 10s. per week for each child under sixteen years of age, and 10s. for the widow so long as any child is under sixteen years of age.

  3. On reaching age sixty (or sixty-five, subject to reduced contributions or increased pension rates), pensions ranging from 10s. to 200s. per week according to the scale of contributions; options as to joint and survivorship pensions and for refund of contributions in lieu of pensions are provided.

  4. On withdrawal, lapse, or death leaving no children under age sixteen, a refund to contributor or to personal representative of all contributions paid, less any benefits theretofore received.

The Superannuation Branch.—The scope of the Fund was extended in 1914, the Board being empowered to entertain applications by local authorities for superannuation on behalf of their employees. Hospital Boards are contributors on behalf of their nursing and clerical employees and, with the consent of the Minister of Finance, State Departments contribute for nurses and other specialist officers not adequately provided for in the normal Government superannuation scheme.

The conditions and benefits in the early schemes were fixed by negotiation between the Board and the local authority. To achieve uniformity in benefits and make improved conditions of superannuation available to permanent employees of all local authorities, the Board was empowered in 1946 to vary the conditions and benefits in the original schemes, and to issue a notice to all local authorities containing conditions and benefits under which any permanent employee might elect to become a contributing employee. Funds earlier established under the Local Authorities Superannuation Act 1908 have been merged with the National Provident Fund, and there is now operating one uniform superannuation scheme to which all local authorities in New Zealand contribute; employees may move freely from employment in one local authority to another without sacrifice of accrued superannuation benefits.

The principle of voluntary membership introduced into State schemes extends to the National Provident Fund schemes and provision is made for the recognition, by agreement with the employing authority, of General or Local Government service within the British Commonwealth or within New Zealand. Further provision enacted during the year authorizes the Board to protect accrued superannuation rights of New Zealanders moving from General or Local Government service to service with a United Nations organization.

The Fund is the approved superannuation vehicle for all statutory corporations and also provides facilities whereby registered educational institutions may provide superannuation for teachers, thus removing another artificial barrier to the free interchange of teachers in the educational services.

The benefits and contributions are substantially the same as those operating in the Government Superannuation Fund, and there is provision whereby employees may transfer from local authority to State employment, and vice versa, without loss of accrued rights.

On retirement there are several options as to joint and survivorship or variable pensions, which enable the income payable after retirement to be arranged to meet individual needs. A superannuitant may elect to surrender his right to a proportion (not exceeding one-fourth) of the pension and to receive instead payment of a sum equal to nine times the amount by which his annual pension is reduced consequent on the surrender.

Investment Pool.—The Investment Committee meets monthly or as required, and up to the end of 1956 over £2.5m. had been lodged in the Pool. A substantial portion of these moneys are only available for periods of three to six months pending their being utilised by the local authorities for the purpose for which they were raised, but it is anticipated that there will emerge a hard core of £1 to £2 million pounds available for long-term investment. The success of this venture depends largely upon the support accorded by the local authorities, for the Fund is not undertaking the raising of loans but merely endeavouring to make available to the smaller local authorities otherwise idle moneys.

* If the child remains at school, these allowances may be continued up to attainment of age eighteen years.

During the last five years the Fund has invested practically all its available moneys in loans to local authorities, but its normal investable funds are only £1.5m., so that its activities must be considered more in the nature of assistance to local authorities in raising moneys than any attempt to satisfy their loan requirements.

Statistical Summary.—Since the inauguration of the Fund in 1911, 151,012 persons (103,451 males, 47,561 females) have joined the Fund, and of these 128,163 (84,861 males and 43,302 females) have discontinued for one reason or another, leaving 22,849 (18,590 males and 4,259 females) contributors at 31 December 1955. Of the 2,632 discontinuances in 1955, 1,882 were on account of withdrawal, 159 on account of lapse or cancellation, 80 on account of death, 341 on account of attainment of pensions age, and 170 on account of transfer.

The numbers of contributors for the various pension rates as at 31 December 1955 were as follows.

PensionsMalesFemalesTotal
10s. per week8,3273508,677
20s. per week2,4152612,676
30s. per week51264576
40s. per week830109939
Superannuation6,5063,4759,981
      Totals18,5904,25922,849

Summarized figures set out below for the years ended 31 December 1945, 1950, and 1955 form a useful basis for comparative analysis. Increased contributions and total income figures are attributable mainly to expansion in the superannuation branch.

Year Ended 31 December
194519501955
New contributors3,5012,2312,385
Total of contributors27,78822,79622,849
Pensioners1,5772,5123,315
Income—£££
  Contributions368,615758,117954,360
  Interest (including fines)281,019364,468575,002
  Total income (including State subsidy)775,4061,326,9211,798,909
Outgo—
  Pension payments126,517246,032374,229
  Other benefits262,600242,914368,839
  Total payments392,195490,979645,277
Funds at end of year8,116,04411,713,56117,026,502
Rate of interest per cent earned on invested funds£3 11s. 7d.£3 5s. 0d.£3 10s. 0d.

The amount of the subsidy paid by the State on contributions paid to the Fund during 1955 was £245,065.

The next table presents an alternative comparison, the period covered on this occasion being the five years ended 31 December 1955.

YearNumber of ContributorsAnnual Rate of Contributions PayableTotal Amount of FundPensions and Allowances Paid During Year
IncapacityRetiringWidows' and Children's
 £££££
195122,570602,92512,638,68113,514267,30252,224
195222,890705,30313,644,89212,677289,61953,975
195322,698759,82614,687,55112,250308,12256,530
195422,926847,68715,872,87014,072340,26260,195
195522,849890,65817,026,50216,623374,22961,724

Of the accumulated fund of £17,026,502 at 31 December 1955, £16,843,590 was invested, the principal classes of investment being Government securities, £4,948,055; local authority securities, £10,671,726; mortgages, etc., £1,025,809; and debentures, shares, etc., £198,000.

The following table sets forth the extent to which the facilities of the Fund are being utilized by local authority employees at 31 December 1955.

Class of Contributing AuthorityNumber in Each ClassNumber Contributing in Each ClassEmployeesAnnual Contributions
MalesFemalesTotal
Cities and boroughs138991,8011641,965£ 140,596
Counties1251013533638963,935
Electric-power Boards43416693570467,521
Fire Boards2420149115034,669
Harbour Boards2415663566870,814
Hospital Boards43437192,8613,580255,527
Sundry local authorities31642367737447,765
Schools 331146818216,206
Others 1011,1052391,344112,282
      Totals 4955,9403,4169,356809,315

The following table shows the details of investments of the Fund for the year ended 31 December 1955. £

Class of SecurityInvested, 1 January 1955Movements During YearInvested, 31 December 1955
InvestedRealised
Government securities5,362,725148,709563,3794,948,055
Local body securities9,060,6481,974,627363,54910,671,726
Mortgages967,41591,33748,5551,010,197
Miscellaneous debentures and shares150,99347,007 198,000
Reversions15,3551,5611,30415,612
  Totals15,557,1362,263,241976,78716,843,590

7 E—FRIENDLY SOCIETIES

THE legislation dealing with friendly societies is contained in the Friendly Societies Act 1909 and its amendments. Provision is made for the registration of all societies and branches with the Registrar of Friendly Societies, and also for the general superintendence by the Government of the administration of the funds of the societies.

LODGES AND MEMBERS.—The table following gives the number of registrations (i.e., of friendly societies proper, or lodges, together with benevolent societies, working-men's clubs, etc., registered under the Act) and of lodge members as at 31 December of the years shown.

Name of OrderRegistrationsLodge Members
195319541955195319541955

* Membership figures relate to “actuarial” societies only.

Manchester Unity Independent Order of Oddfellows24724724328,08928,03928,197
Independent Order of Oddfellows1951951938,3888,3268,140
National Independent Order of Oddfellows111787673
Ancient Order of Foresters13713613411,68411,51311,271
United Ancient Order of Druids14214214115,68215,34715,052
Independent Order of Rechabites5250493,1703,0832,995
Order of Sons of Temperance877429425409
Sons and Daughters of Temperance111868381
Hibernian-Australasian Catholic Benefit Society8080783,7373,7073,747
Protestant Alliance Friendly Society of Australasia121212531518500
Grand United Order of Oddfellows101010242231227
Isolated friendly societies686767639*625*579*
Working-men's clubs242424   
International Order of Good Templars111111   
Specially authorised societies171717   
      Totals1,0051,00098872,75571,97371,271

Annual returns of receipts, expenditure, etc., of lodges arc required by law. For the year 1955 the Registrar of Friendly Societies received returns from 827 lodges, with an aggregate membership of 71,271 at the end of the year, as compared with 839 lodges and 71,973 members for 1954. During the year, 2,356 members were admitted by initiation, etc., and 462 by clearance; 1,315 died, 476 left by clearance, and 1,729 by arrears, etc.

The aggregate membership of lodges increased year by year, reaching a peak in 1930, when the total was 107,167. The economic depression probably accounted for the decrease in each of the following three years, the number at the end of 1933 being 100,237. A series of increases then commenced, the 1930 level being passed in 1936, and by 31 December 1938 a total of 113,709 had been reached. Each of the succeeding years, however, has witnessed a fall in membership, although the decrease in 1955 was comparatively slight. The number at the end of that year (71,271) was, however, 42,438, or 37 per cent less than in 1938. The various benefits under the social security scheme, particularly medical and hospital benefits (see Section 7A), have no doubt had a considerable effect on the membership of friendly societies.

The statistics given subsequently relate to the lodges (827 in 1955) for which returns were received and tabulated.

MORTALITY AND SICKNESS.—In the following statement of the mortality experience for the last five years no account has been taken of age incidence.

YearDeaths of MembersPer 1,000 Members at RiskDeaths or Members' WivesPer 1,000 Members at Risk
19511,20215.973574.74
19521,24316.693584.80
19531,26517.163534.79
19541,27617.483264.47
19551,31518.353344.66

The number of members sick during 1955 was 12,137, equal to 17.4 per 100 members at risk. The sickness experienced during 1955 was 298,026 weeks, equal to 24 weeks 3 days per sick member and 4 weeks 2 days for each member at risk.

FUNDS OF FRIENDLY SOCIETIES.—The total funds of the societies and branches as at 31 December 1955 amounted to £8,078,280, made up as follows.

FundsAmount
 £
Sick and funeral funds6,046,539
Surplus appropriation funds, etc.1,043,155
Management funds, goods, etc.410,731
Distress, benevolent funds, etc.577,855
      Total8,078,280
AssetsAmount
 £
Investments at interest7,503,120
Value of land and buildings334,356
Cash not bearing interest199,108
Value of goods24,480
Other assets11,121
Owing by management funds6,095
      Total8,078,280

The net income from investments credited to the sick and funeral funds for 1955 amounted to £272,335, the average rate being £4 13s. 7d. per cent, as against £4 12s. 9d. in 1954.

There has been over many years a continuous increase in the amount of accumulated funds standing to the credit of friendly societies, the increase in the last ten years amounting to £1,942,867, or 32 per cent. The average capital per member has also appreciably increased, the gain in the last ten years amounting to £39 8s. 11d. (53 per cent). The substantial fall in membership over the last ten years has resulted standing increases being shown for the average capital per member.

YearTotal FundsAverage Capital Per Member
 ££s.d.
19456,135,41373180
19466,278,40978011
19476,419,52381155
19486,568,0398530
19496,706,7138845
19506,858,0629190
19517,126,44995168
19527,331,34199183
19537,523,88310383
19547,780,41910820
19558,078,280113611

The contributions and entrance fees paid to sick and funeral funds in 1955 amounted to £181,558. Divided by the mean number of members, the average for 1955 was £2 10s. 8d., as against £2 9s. 5d. for 1954.

The interest and rent received by the lodges and central bodies amounted to £272,335 in 1955, equal to £3 16s. 1d. per member, as against £3 12s. 6d. for 1954.

The amount of sickness benefit paid was £151,681 in 1955, equal to £12 9s. 11d. per member sick and £2 2s. 4d. per member, as against £12 11s. 10d. and £2 2s. 8d. respectively for 1954. Viewing the amount paid in relation to the weeks of sickness, the average benefit per week is found to be 10s. 2d. in 1955 as against 10s. 3d. for 1954.

The funeral benefit paid amounted to £85,689 in 1955, equal to £1 3s. 11d. per member, as compared with £1 3s. 7d. for 1954.

The total worth of the sick and funeral funds at the beginning of 1955 was £5,862,835, and at the end of the year £6,046,539.

Chapter 8. SECTION 8—JUSTICE

Table of Contents

LAW OF NEW ZEALAND.—The law applied in the Courts of New Zealand has three principal sources—the common law of England, certain statutes of the United Kingdom Parliament enacted prior to 1947, and statutes of the New Zealand Parliament.

The initial law of New Zealand when it became a British colony was the law of England as it existed on 14 January 1840—that is, the common law together with those statutes of the United Kingdom Parliament which were applicable to the circumstances of the colony at that date. Subsequent law consists of those enactments of the United Kingdom Parliament between 1840 and 1947 which extended expressly or by necessary implication to New Zealand, and the enactments of the New Zealand Legislature.

In interpreting the common law the Courts have been concerned to preserve uniformity with the common law as it has developed in England. This unity is ensured not only by the existence of the Privy Council as the final Court of appeal for New Zealand, but by the practice of the Judges of following English decisions even though they are in theory not bound by them.

The New Zealand Parliament is now the sole authority with inherent power to legislate for the country, and there are no constitutional restrictions on the law which it can pass. Before the adoption by New Zealand of the Statute of Westminster in 1947 the powers of Parliament were limited in two respects. First, there was a somewhat uncertain and ill-defined incapacity to make laws having extra-territorial application, and, secondly, there was an incapacity to make laws conflicting with a statute of the United Kingdom Parliament extending to New Zealand. Since 1947, however, both these limitations have disappeared, although the United Kingdom Parliament still has the power to make laws extending to New Zealand at the request and with the consent of the New Zealand Legislature.

COURTS.—The hierarchy of Courts in New Zealand comprises the Court of Appeal, the Supreme Court, and the Magistrates' Court.

The Court of Appeal, unlike other Courts, exercises an appellate jurisdiction only. As constituted by the Judicature Amendment Act 1913 it comprises two divisions, a First and Second Division. Each division consists of five or six Judges of the Supreme Court appointed by the Governor-General in Council on the recommendation of the Chief Justice and two other Judges, there being no separate Judges of Appeal in New Zealand. The jurisdiction of the Court is exercised by each division at alternate sittings, but in important cases of special difficulty a joint sitting of both divisions may be authorized. The Judicature Act provides that the Court of Appeal shall sit at times and places appointed by the Governor-General in Council. In practice it almost invariably sits at Wellington. The decision of the Court is that of the majority of the Judges present, but if these are equally divided in opinion the decision appealed from is deemed to be affirmed.

An amendment of 1933 allows the Court of Appeal to hold special sittings at times and places appointed by Order in Council. This authority may be exercised only on a certificate of at least three Judges (including the Chief Justice) that it is not expedient to delay the hearing of the appeal. At a special sitting three or more Judges may exercise the jurisdiction of the Court whether or not they are members of the same division.

In addition to ordinary appeals from the Supreme Court certain other proceedings in inferior Courts may on an order of the Supreme Court be removed into the Court of Appeal for argument. It may be noted that the Court of Appeal also determines criminal appeals under the Criminal Appeal Act 1945, which is discussed later in the Section.

All decisions of the Court of Appeal are final unless leave is granted to appeal to the Privy Council, This leave may be granted either by the Court of Appeal or by the Privy Council itself. The Privy Council thus remains the final Court of appeal in all civil cases and also occasionally hears appeals in special criminal cases.

The Supreme Court, which was first established by the Supreme Court Ordinance 1841, is now constituted under the Judicature Act 1908. The Members of the Court are a Chief Justice and eleven other Judges, the number being fixed by statute. An amendment in 1953 provides, however, that an additional Judge or Judges may be appointed whenever the Governor-General deems it necessary by reason of absence or anticipated absence of any of the Judges on leave prior to retirement, each appointment being a permanent one from the time when it is made. This, together with the provision that the salary of a Judge shall not be diminished during his term of office, is an important safeguard for the principle of judicial independence. Judges, who retire at seventy-two, are appointed to hold office during good behaviour and may be removed only by the Queen upon an Address by the House of Representatives. The Governor-General may suspend a Judge upon a like Address.

Magistrates' Courts are now set up under the Magistrates' Courts Act 1947 and possess an extensive jurisdiction in both civil and criminal cases. The jurisdiction of the Court is exercised by Stipendiary Magistrates, whose number is limited by statute to thirty-five, there being thirty-two at present holding office. Justices of the Peace, however, still sit as a Magistrates' Court to hear a limited number of minor criminal charges.

Stipendiary Magistrates must have been qualified as barristers and solicitors of the Supreme Court for at least seven years. They are appointed by the Governor-General, and under the Magistrates' Courts Act 1947 may be removed by the Governor-General for inability or misbehaviour only. They retire at sixty-eight years of age.

Apart from these Courts of general jurisdiction there are in New Zealand several Courts with specialist functions. These include the Court of Arbitration, which makes awards governing pay and working conditions in industry, and also makes general wage orders; the Compensation Court, which determines claims under the Workers' Compensation Act; and the Land Valuation Court, which determines disputes over the valuation of land and hears claims for compensation when land is taken for public purposes.

JURIES.—The institution of the jury is regulated in New Zealand by the Juries Act 1908. Subject to certain exceptions, every male British subject (other than a Maori) between twenty-one and sixty-five years resident within a certain distance of a Supreme Court centre is liable to serve on a jury. There is provision for Maoris to serve on juries in criminal cases where both the victim and the accused are Maoris and in civil cases where one of the parties is a Maori.

A new list of exempted persons was enacted by the Juries Amendment Act 1951, the principal change being the removal of most Government servants from the class of exempted persons.

The following is a summary of the persons now exempted from jury service:

  • Members of the Executive Council and of the House of Representatives; Judges of the Supreme Court and of the Compensation Court; Judges and Members of the Court of Arbitration and of the Land Valuation Court; Judges and Commissioners of the Maori Land Court; Magistrates; Visiting Prison Justices; Coroners; the Chairman of the Local Government Commission; the Chairman and Members of the Licensing Control Commission; Officers of Parliament; clergymen; persons wholly engaged in teaching and school inspectors; barristers and solicitors; medical practitioners and dentists; registered chemists; members of the Armed Forces; members of the Police Force and traffic officers; pilots, masters, and crews of vessels; members of fire brigades; and certain officers of the Department of Justice, including those engaged in Court or prison work.

Provision was made by the Women Jurors Act 1942 for women to serve on juries. Women between the ages of twenty-five and sixty who would be liable for jury service if they were men may have their names placed on the jury list, but there is no obligation for them to do so. In fact, very few women have volunteered for jury service.

Special juries are provided for in section 71 of the Juries Act. That section provides that in a civil action in the Supreme Court triable by jury either party may, by leave of the Court or a Judge thereof, procure trial by a special jury instead of a common jury. Except with the consent of all the parties, however, no action may be tried with a special jury unless in the opinion of the Court or a Judge difficult questions in relation to scientific, technical, business, or professional matters are likely lo arise.

New Zealand still retains the Grand Jury as part of its legal system, although it has been abolished in most other countries outside the United States of America, where it performs a different function.

CIVIL JURISDICTION: Magistrates' Courts.—From the beginning of settlement in New Zealand there has existed a speedy and inexpensive forum for determining every-day disputes between citizens. From 1846 to 1925 there were two types of Lower Court, as well as the Supreme Court. Resident Magistrates' Courts (from 1893 called Magistrates' Courts) dealt with the smallest claims while larger minor claims were determined first by Courts of Requests, and from 1858 by District Courts.

The most important feature of this period was the gradual replacement of the three-tier structure by a two-tier structure as the jurisdiction of Magistrates' Courts became more extensive and the District Courts fell gradually into disuse. The jurisdiction of the Magistrates' Courts was considerably extended in 1893, but the main reason for the increasing importance of these Courts was the requirement, first introduced in 1913, that every Magistrate should be a qualified barrister and solicitor. In 1925, District Courts were formally abolished, leaving the Magistrates' Courts and the Supreme Court as the sole Courts with general jurisdiction.

Before 1947 the jurisdiction of Magistrates' Courts was limited (a) as to amount, the maximum sum which could be claimed being £300, and (b) as to remedies, which virtually limited jurisdiction to claims for debt or damages.

The Magistrates' Courts Act 1947 revised the whole framework of Magistrates' Courts procedure which had been substantially unchanged for eighty years and brought it into line with present day jurisdiction and requirements. The jurisdiction of the Court was also widened. It may now hear all claims up to £500, but if the parties agree in writing that the Court shall hear their case it has jurisdiction whatever the amount claimed. In the exercise of this jurisdiction it may now grant the same remedies, legal and equitable, as the Supreme Court.

The following table shows the number of plaints entered, cases disposed of, amounts sued for, and amounts for which judgment was recorded in the Magistrates' Courts during the last eleven years.

YearPlaints EnteredCases Disposed of
NumberTotal Amount Sued forNumberTotal Amount ClaimedTotal Amount for Which Judgment Entered
  £ ££
194520,184412,32712,890277,579193,785
194624,407544,08414,507311,505241,523
194728,332694,87316,724422,046345,472
194834,927911,32120,218546,026437,240
194934,403994,29117,694550,362463,995
195035,7471,209,98818,090553,021460,910
195138,9661,331,37520,111733,562588,300
195246,8361,701,96324,753880,840743,680
195353,2772,183,45229,8421,180,2751,014,240
195458,1562,496,38832,9321,288,5451,064,327
195566,0782,843,10938,4751,502,3981,318,362

The average amount claimed in each plaint has risen from £20 in 1945 to over £43 in 1955.

Supreme Court.—The jurisdiction of the Supreme Court is twofold, original and appellate. It has by statute a general jurisdiction to administer the laws of New Zealand. One important aspect of this original jurisdiction is an inherent power to control inferior Courts and judicial tribunals through the writs of certiorari and prohibition. This is essentially a power to determine the limits of jurisdiction of other Courts and is to be distinguished from its appellate function by which the Supreme Court reviews a case which was properly heard and determined by a Lower Court. An appeal to the Supreme Court lies only where it is provided for by statute. With certain exceptions, all cases determined in the Magistrates' Court are subject to appeal to the Supreme Court.

The next table shows the number of actions commenced, cases tried, and judgments entered, together with the amounts for which judgments were recorded in the civil jurisdiction of the Supreme Court from 1945 onwards.

YearNumber of Actions CommencedCases TriedJudgments Recorded
With JuryWithout JuryNumberAmount£

* Not available.

194577986209159116,739
194688970255231109,252
19471,05584225197110,595
19481,342104301299136,857
19491,208108293241158,202
19501,05990268202108,132
19511,13591224218169,440
19521,451125302242182,036
19531,435106282*232,733
19541,527130237*291,041
19551,614137198*255,513

Court of Appeal.—During the five years 1951 to 1955 there were 125 civil appeals, of which 49 were allowed, and also 14 cases removed to the Appeal Court, resulting in 8 judgments for the plaintiffs and 6 for the defendants.

CRIMINAL JURISDICTION: Magistrates' Courts.—The criminal jurisdiction of Magistrates' Courts has gradually grown out of the general jurisdiction enjoyed in respect of minor offences by Justices of the Peace. The Court previously had power to deal with all summary cases—that is, cases where a statute provides that an offence shall be dealt with summarily—and with a few indictable offences. Magistrates have, however, now acquired by the Summary Jurisdiction Act 1952 (which came into force on 1 January 1953) jurisdiction to deal with the majority of indictable offences. This Act gives a Magistrate jurisdiction over all crimes against property and all but the most grave of other crimes, such as treason, homicide, and rape. If the Magistrate deals summarily with an indictable offence, he may impose a sentence of imprisonment of up to three years or a fine of up to £200. A Magistrate may, however, decline to deal with an offence summarily, in which case the accused is committed for trial in the Supreme Court in the ordinary way. The accused person has, moreover, the right to claim jury trial if he is charged with any indictable offence punishable by imprisonment for more than three months.

Justices of the Peace now hear only a small number of summary charges and charges of theft up to £20. The tendency is to have all criminal cases dealt with by Stipendiary Magistrates, except in country districts.

The following table shows the number of criminal charges dealt with in Magistrates' Courts from 1945. These figures and all the figures relating to Magistrates' Courts, Supreme Court, and prisons include Maoris, but Children's Court cases are excluded and will be found under the section relating to juvenile offences.

YearNumberPer 1,000 of Mean Population
Against MalesAgainst FemalesTotalAgainst MalesAgainst FemalesTotal
194539,5522,92242,47447.833.3725.06
194644,8632,69947,56251.063.0627.03
194746,3372,42548,76251.502.7027.12
194850,0062,75652,75254.433.0128.76
194954,7682,88357,65158.353.0930.80
195055,5362,91558,45158.183.0530.62
195160,1063,00263,10861.463.0932.40
195278,5363,66682,20278.263.6941.18
195385,8954,60690,50183.384.5244.17
195484,2003,97788,17779.933.8242.09
195582,2184,31786,53576.414.0640.46

As may be expected the great majority of these charges are for comparatively minor offences, particularly against the traffic laws, which alone account for almost three-fifths of the convictions in the Magistrates' Courts. Of the 77,806 convictions in the Magistrates' Courts in 1955,43,250 were for minor traffic offences, 5,401 for offences against the liquor laws, and 5,983 for drunkenness.

The following table classifies the convictions in Magistrates' Courts into more common offences or groups of offences for the years 1951 to 1955. The figures refer to total charges, with the corresponding number of distinct cases following one totals in each year. Until the Summary Jurisdiction Act 1952 became effective the more serious cases, such as those of a sexual nature or those involving grave bodily injury, were not tried summarily; consequently certain of the figures quoted below for 1953, 1954, and 1955 are not comparable with earlier years.

Type of Offence19511952195319541955

* Counting only the principal offence in cases where a person is charged simultaneously with two or more offences.

Common assault700635700772760
Sexual offences27397358412
Other offences against the person8176180257288
Theft2,2302,4872,6762,8342,630
Wilful damage392365422569536
Other offences against property (including forgery)1,1251,2352,4763,1123,079
Drunkenness (including drunk in charge, etc.)4,7165,7405,4325,8235,983
Application for prohibition order7838351,0721,1091,012
Offensive conduct or language, obstruction, etc., of police, and vagrancy1,6151,5511,6021,5951,573
Minor traffic offences32,01545,06051,04646,50843,250
Other offences against good order1,4631,4952,6001,4841,269
Breach of probation126138148151201
Unlawfully on licensed premises and other breaches of Licensing Act3,9634,7935,5156,0355,401
Failing to furnish return and making false return of land and income1,0632,2412,2092,6754,147
Failing to pay maintenance1,0921,2211,3471,3191,436
Deserting merchant ships438399263328369
Breaches of price control orders443693403323254
Other offences3,8814,9893,6554,9585,206
      Totals56,12873,96082,14380,21077,806
      Distinct cases*47,46062,43468,22268,01863,569

The total convictions (77,806) for 1955 represent a rate of 36.4 per thousand of mean population.

The number of convictions in 1955 shows a decrease of 2,404 from that of the previous year. Offences showing the more substantial decreases are as follows:

Theft204
Minor traffic offences3,258
Other offences against good order215
Unlawfully on licensed premises and other breaches of Licensing Act634

On the other hand the major increases are in the following offences:

Drunkenness160
Failing to furnish return and making false return of land or income1,472
Failing to pay maintenance117
Other offences248

The next table classifies the result of hearing and punishment inflicted on summary conviction for all cases during 1955.

Result of HearingOffences Against the PersonOffences Against PropertyOffences Against Good OrderOther OffencesTotal
Dismissed, withdrawn, or struck out3367192,8324,2908,177
Committed for trial or sentence1632982529515
Admonished and discharged3232937
Imprisonment3501,9708045583,682
Detention in Borstal Institution, etc.84514214515
Released on probation1931,5351392382,105
Convicted and ordered to come up for sentence9020213632460
Fined7131,36749,13411,93863,152
Convicted and discharged (or pay costs)1067162,9336774,432
Suspended imprisonment (maintenance cases)   1,1971,197
Miscellaneous 41,0711,1882,263
      Totals1,9627,28557,11820,17086,535
      Distinct cases1,5913,64149,72915,04970,010

Traffic Offences.—Traffic offences form so large a proportion of summary convictions that a further analysis is of interest. The most frequent traffic offences are breaches of parking regulations and excessive speed. This is a feature common to many countries and is associated with the temptation provided by modern high-powered vehicles and with the congested streets of the main cities and towns.

The following table analyses all traffic convictions dealt with in Magistrates' Courts for the years 1951–55 inclusive.

Offence19511952195319541955
Negligently driving motor vehicle causing death1021253346
Negligent driving causing injury1418142634
Drunk in charge of motor vehicle causing injury  131
Failing to stop motor vehicle after accident involving bodily injury13232847
Unlawfully converting vehicle to own use419496637689710
Drunk in charge of motor vehicle603704747820933
Drunk in charge of other vehicle8732118
Excessive speed in motor vehicle6,1659,94511,2449,8798,540
Negligent or dangerous driving of motor vehicle4,9156,9637,8718,8938,488
Negligent or dangerous driving of other vehicle236188114157130
Breaches of regulations for the lighting of vehicles2,3953,1543,3063,2472,274
Offences relating to the registration, etc., of motor vehicles3,2524,6836,1345,2174,747
Offences relating to driver's licence2,1923,2132,9693,1293,318
Breaches of parking regulations8,71611,33911,2669,93110,121
Other traffic offences4,1445,5758,1426,0565,632
      Totals33,07046,30952,49648,12945,039
Convictions per 1,000 of mean population16.9723.1925.6222.9721.06

Two interesting points arose from the traffic offences for 1954. Point one was that since Magistrates' Court statistics were resumed in 1946 this was the first occasion in which a decrease had been shown. This could have meant that the recent intensive drive by the traffic authorities was having greater results. The second point was that while breaches of parking regulations showed a decrease of 1,335 in the table given, the two main North Island centres, Auckland and Wellington, showed a combined decrease of 3,437 for this offence. This decrease, however, could perhaps have been attributable to the installation of parking meters in those two places, when more motorists at the beginning were being possibly treated as first offenders and merely warned instead of being prosecuted.

In 1955 there was a small increase of 190 in the overall figure for parking offences. For Auckland alone, however, an increase of 777 was recorded. On the other hand, Christchurch and Dunedin showed decreases of 1,122, or 57.7 per cent, and 475, 48.9 per cent respectively for the same year.

The previous table includes the more serious cases involving death or injury which arc sent forward to the Supreme Court for trial or sentence. In 1955, 6 such cases were sent forward and there were 5 sentences, comprising 2 for negligent or drunken driving causing death, and 3 for negligent or drunken driving causing injury.

Of the 45,039 convictions for traffic offences, 2,175 persons had their drivers' licences cancelled for varying lengths of time. These are given below:

Period for which Licence CancelledNumber
Under 3 months819
3 months and under 6 months263
6 months and under 1 year166
1 year and under 2 years744
2 years and under 3 years48
3 years and under 4 years106
4 years and under 5 years3
5 years and over26

Drunkenness.—The following table shows the number of convictions for drunkenness, together with the rate per 1,000 of mean population, for each of the years 1951 to 1955.

YearConvictions for DrunkennessPer 1,000 of Mean Population
MalesFemalesTotalMalesFemalesTotal
19514,5271894,7164.630.192.42
19525,5531875,7405.530192.87
19535,2262065,4325.070.202.65
19545,6241995,8235.340.192.78
19555,7772065,9835.380.192.80

Repeated charges against the same person are included in the totals shown in the preceding table, but the figures do not include cases of application for the issue of prohibition orders, of which there were 1,012 in 1955. After dropping to a record low rate of 1.54 convictions per 1,000 mean population in 1947, the convictions for drunkenness rose steadily each year until 1953, which showed a small decrease.

In 1954, however, an increase (391) was shown once again, while for 1955 a further increase of 160 was recorded, the number of convictions for the last two years being the highest since 1939. In 1895 the proportion for 1,000 of mean population was 6.52.

Supreme Court.—Criminal cases in the Supreme Court are of two classes—those in which the accused person has pleaded guilty in the Lower Court and has been committed to the Supreme Court for sentence, and those actually tried in the Supreme Court.

In 1952 the Summary Jurisdiction Act was passed and came into force on 1 January 1953. This Act gave Magistrates jurisdiction to deal with the majority of indictable offences. The tables following amply demonstrate the effect of the Act on the number of cases sent to the Supreme Court for trial or sentence. For this reason no true comparison can be made between the latest figures and those for previous years.

The following table gives a summary of criminal cases dealt with in the Supreme Court during each of the last five years. Frequently a series of charges is preferred against the one offender and this serves to explain the distinction between total cases and distinct persons.

YearTried in Supreme CourtSentences in Case of Committal for SentenceTotal Sentences
Indictments and InformationsConvictions
MFMFMFMFTotal
(a) Total Cases
195174633291101,235381,526481,574
195280457382361,252361,634721,706
1953584412511195434615361
195448427256565 3215326
19554233517223181135324377
(b) Distinct Persons
19513131517574471562222644
195231119207164552666242704
195320713118751316910179
19541919123520 1435148
1955163128785111389147

Of the 175 distinct persons indicted during 1955, 95 were convicted and 76 acquitted, and “no bill” was returned or the prosecution was not otherwise proceeded with in the remaining 4 cases.

The next table summarizes the offences of persons convicted and sentenced in the Supreme Court during each of the last five years.

YearTotal Convictions and SentencesDistinct Persons Convicted and Sentenced
Offences Against the PersonOffences Against PropertyForgery and Offences Against the CurrencyOther OffencesTotalOffences Against the PersonOffences Against PropertyForgery and Offences Against the CurrencyOther OffencesTotal
19513761,11060281,57425335620'15644
19524091,20253421,7062703952019704
1953155169181936110360115179
19541541299343268252113148
195510423721153777456710147

The table which follows shows the number of distinct persons sentenced in the Supreme Court during each of the years 1945 to 1955, classified according to the principal types of offences.

Type of Offence19451946194719481949195019511952195319541955

* Includes persons charged with murder but convicted of manslaughter.

Murder43363832344
Attempted murder 21   1   2
Manslaughter*52316782743
Traffic offences involving death or injury172437221930192012105
Assaults and wounding2129302934253126191414
Sexual, offences122124149119155186177198584645
Other offences against the person2522272316231322441
Robbery, burglary, and breaking and entering231263229234196183194186201819
Theft, receiving, and fraud140135214232177129147191402835
Other offences against property1899924161518 62
Forgery and uttering1725141625252020117
Other offences1917242621101619151310
      Totals619655740717676642644704179148147
Per 10,000 mean population3.653.724.123.913.613.363.303.520.870.710.69

From 1943 to 1947 there was a considerable increase in serious crime, an experience not by any means confined to New Zealand. Most other countries reported a similar trend, which might be regarded at least partly as a result of war conditions. With the exception of offences such as murder and sexual offences, the general tendency has been for the number of serious offences to fall since 1947.

Sentences imposed in the Supreme Court during 1955 were as follows:

Probation (under Criminal Justice Act)24
Ordered to come up for sentence1
Discharged2
Fined9
Imprisoned78
Corrective training8
Borstal training7
Preventive detention14
Death4

In 1941 the death sentence for murder was abolished, life imprisonment with hard labour being substituted therefor, but was restored in 1950 by the Capital Punishment Act. On conviction for murder a sentence of death must be imposed except in the case of an expectant mother, who is to be sentenced to imprisonment for life, and a person under eighteen, who is to be sentenced to detention during Her Majesty's pleasure.

Flogging and whipping were also abolished in 1941 and have not been restored.

CRIMINAL APPEALS.—The law relating to criminal appeals was substantially changed by the Criminal Appeal Act 1945. Previously an appeal lay only on a point of law and was available both to the prosecution and to the accused. These provisions have been retained, but the Act for the first time gave a convicted person a general right of appeal to the Court of Appeal against conviction. The Act provides that any person convicted on indictment or committed for sentence may appeal to the Court—

  1. Against his conviction on any ground involving a question of law;

  2. With the leave of the Court or on the certificate of the Judge who tried the case, on any ground involving a question of fact or on any other ground deemed sufficient by the Court;

  3. With the leave of the Court against the sentence passed unless it is one fixed by law.

The Court may quash the conviction, vary the sentence, or order the case to be retried in the Supreme Court.

The Act does not affect the Crown's prerogative of mercy, but contains a provision enabling the Governor-General to refer to the Court of Appeal any application for the exercise of the prerogative.

OFFENCES BY WOMEN.—Of the 86,535 criminal charges dealt with in the Magistrates' Court in 1955, 4,317, or almost 5 per cent, were against females. This figure showed an increase on the 1954 total of 3,977. The comparable figure for 1947 was 2,425, which was the lowest recorded since 1933.

Most of the offences for which summary convictions are entered against women are of a trivial nature, such as minor breaches of traffic regulations.

Of the convictions for more serious offences during 1955, the most common were—

Attempted suicide12
Common assault19
Drunkenness186
Theft453
Fraud and false pretences138
Offensive conduct or language29
Vagrancy63

Supreme Court statistics also showed that women in general are of a law-abiding disposition; 9 females (6.1 per cent of the total) were sentenced in 1955 for criminal offences.

During 1955, 117 women were received into prison under sentence. The principal offences concerned were theft, 39; vagrancy, 25; drunkenness, 9; breach of probation 11; selling liquor without a licence, 2; fraud and false pretences, 8; escaping from lawful custody, 4. Corresponding figures for 1954 were 107, the principal offences being theft, 34; vagrancy, 19; drunkenness, 3; breach of probation, 8; selling liquor without a licence, 2; fraud and false pretences, 15; escaping from lawful custody, 2.

OFFENCES BY MAORIS.—As previously mentioned, Maoris are included in the statistical tables presented elsewhere in this Section, the data given here being for purposes of comparison. According to the population estimate of 31 December 1955, 4.91 per cent of the total population of New Zealand aged fifteen and over were Maoris.

In recent years it has become increasingly difficult to classify, with any degree of accuracy, Maoris and non-Maoris in Magistrates' Court summons cases, and this classification has now been discontinued. However, an accurate classification can be arrived at in the case of arrests, and the following summary shows total charges for arrest cases in 1955. Figures for Europeans are quoted for comparative purposes.

Class of OffenceTotal Charges for Arrest Cases
Against the PersonAgainst PropertyAgainst Good OrderOther Offences
DrunkennessotherMalesFemalesTotal
Maoris1931,1574355021122,2421572,399
Europeans8974,0774,4612,58197112,30867912,987
  Totals1,0905,2344,8963,0831,08314,55083615,386

Of the total number of arrests and convictions 15.6 per cent and 15.5 per cent respectively were Maoris.

The total number of Maoris convicted and sentenced in the Supreme Court during the five years 1951 to 1955 was 321, or 17.6 per cent of the total of 1,822. Of the 16 Maoris (including 2 females) sentenced during 1955, 10 were committed from Magistrates' Courts and 6 were tried and convicted in the Supreme Court. The following table shows the number of Maoris sentenced in the Supreme Court during each of the last eleven years, together with the percentage of Maori offenders to total persons sentenced in each case.

YearOffences Against the PersonOffences Against Property*Total Offences
Sexual OffencesOther
Maoris SentencedPercentage of Total SentencesMaoris SentencedPercentage of Total SentencesMaoris SentencedPercentage of Total SentencesMaoris SentencedPercentage of Total Sentences

* Including forgery and uttering.

† Includes other offences.

19453932.01318.18921.914323.1
19463427.41518.36916.012418.9
19473221.51918.88718.714018.9
19482420.21417.38417.112717.7
19493220.61519.55713.510415.4
19504122.01111.85615.910816.8
19514324.31215.85715.211317.5
19525326.81419.46716.113619.3
19531932.71022.258.23419.0
19541123.938.3611.32214.9
1955511,1310.3812.71610.9

During 1955, 511 Maoris (including 42 females) were received into prison under sentence, this being 20.2 per cent of the total committals. Of the 1,154 persons held in custody on 31 December 1955, 262, or 22.7 per cent, were Maoris. Corresponding figures for 1954 were 413 received under sentence (including 33 females), 17.2 per cent of the total committals, and 1,223 held in custody on 31 December 1954, of which 273, or 22.3 per cent, were Maoris.

JUVENILE OFFENDERS.—Children's Courts were established in New Zealand under Part IV of the Child Welfare Act 1925, and are expressly designed to separate youthful offenders and children in need of protection from the atmosphere and associations of the regular Courts. All offences, except murder or manslaughter, committed by children under seventeen years are dealt with in Children's Courts, the procedure and rules of which differ widely from those of the ordinary Courts. In addition, when an offender between seventeen and eighteen years comes before a regular Court, the Court may order his case to be heard in the Children's Court.

To fulfil the object for which Children's Courts were set up, the legislation prescribes that as far as possible persons attending a Children's Court shall not be brought into contact with persons attending any other Court. Unless no other suitable room is available, sittings of the Children's Court are not held in a courtroom and, where a Children's Court is in the same building as any other Court, it does not sit when that other Court is in session. Proceedings in Children's Courts are not open to the public, and no report of them may be published except with the consent of the presiding Magistrate.

When a child was brought before a Children's Court and charged with any offence, the Court was formerly not required to hear the charge against him. The law was changed in 1948, and all charges must now be heard and determined. It is not necessary, however, to record a conviction even if the charge is proved, and in practice convictions are not entered. The Court has power without recording a conviction to impose any penalty or make any order as if a conviction had been recorded.

The following table shows the number of cases dealt with in the Children's Court during each of the years 1945 to 1955 and (except for the years 1945 and 1946) the number of distinct cases—that is, excluding multiple charges against the same person.

YearTotal CasesDistinct Cases
MalesFemalesTotalMalesFemalesTotal

* Not available.

19453,7324954,227***
19463,1754583,633***
19472,9413653,3061,6202851,905
19482,9484243,3721,6503431,993
19492,6753933,0681,5373211,858
19503,1854773,6621,7723642,136
19513,3155083,8231,8164052,221
19523,9104534,3632,1183452,463
19533,7755764,3512,1384162,554
19544,8515715,4222,4094222,831
19555,0266855,7112,7305483,278

Detailed statistics for Children's Court cases during each of the years 1950 to 1955 are as follows. The figures shown refer to total cases.

Type of Offence195019511952195319541955

* Includes forgery and uttering.

Sexual offences6155858417497
Assaults362833343445
Other offences against the person696261516
Robbery, burglary, and breaking and entering288394650540813677
Theft, receiving, and fraud1,7031,5641,7151,6182,2422,012
Unlawful conversion of vehicles227299360400530707
Wilful damage329339255383319414
Other offences against property*12110269140
Offences against good order297351505499530755
Indigent or delinquent child606652593491477476
Other offences108111151250197472
      Totals3,6623,8234,3634,3515,4225,711

The 5,711 cases heard during 1955 resulted as follows:

Dismissed or withdrawn250
Admonished and discharged1,633
Committed to care of Child Welfare Division of the Department of Education1,073
Placed under supervision1,859
Committed to an institution145
Fined342
Otherwise dealt with409

PROBATION.—By passing the First Offenders' Probation Act in 1886 New Zealand introduced the second Probation Act in the world. Originally it was intended that probation should only be used for first offenders guilty of trivial offences, but its scope was gradually widened. The present legislation, Part I of the Criminal Justice Act 1954, applies to any offender guilty of an offence punishable by imprisonment either on indictment or summarily.

An offender may be released on probation for a period of not less than one year nor more than three years, and during this time he must observe certain statutory conditions governing his behaviour and must accept the supervision of a Probation Officer. The statutory conditions of probation relate to such matters as reporting to a Probation Officer, employment and residence, associates, and general behaviour. In addition, the Court may impose particular conditions designed to assist his rehabilitation and to prevent further crime. It may also impose a fine in addition to probation. At the end of his period of probation the offender is deemed to be a free man, but if at any time during the period he breaks any of the conditions on which probation has been granted to him, he may be brought back to Court and becomes liable to a term of imprisonment or to a fine. In addition, he may be sentenced for the original offence for which he was placed on probation.

The probation method has come to be accepted as an integral part of the penal system and is widely used in New Zealand. The following figures show the number of persons released on probation during each of the past eleven years.

YearNumber Admitted to Probation
1945886
1946919
1947972
19481,036
19491,104
19501,098
19511,071
19521,176
19531,098
19541,278
19551,429

The next table gives the ages of offenders placed on probation during 1955, together with the period of their probation.

Age, in Years6 Months or Under1 Year15 Months18 Months2 Years30 Months3 YearsTotal
Under 204150640284138523
20 and under 254128331189122378
25 and under 30163 20105 13202
30 and under 40 6641287 20189
40 and under 50133 742 1194
50 and under 60 11 49 226
60 and under 70 3115 212
70 and over 1  3 15
      Totals104551411572421091,429

Probation is a conditional suspension of imprisonment and provides the opportunity whereby the offender may, with the assistance and supervision of a Probation Officer, rehabilitate himself. The real purpose of probation is to prevent further offences, and it is more freely used in the case of first offenders and young offenders.

INQUESTS.—The law relating to inquests, which had previously been partly common law and partly contained in the Coroners Act 1908, was consolidated into a single code by the Coroners Act 1951. This Act provides for the appointment by the Governor-General of Coroners for New Zealand and defines their powers and duties.

An inquest may be held for the purpose of establishing—

  1. The fact that a person has died;

  2. The identity of the deceased person;

  3. When, where, and how the death occurred.

All inquests are held in public, but the Coroners Act 1951 repeated a common-law power to exclude persons from an inquest and to prohibit the publication of any part of the evidence. The power to prohibit publication has now been made subject to review by a Magistrate, unless the Coroner is himself a Magistrate.

The following is a table of inquests held during each of the eleven years from 1945 to 1955.

YearMalesFemalesTotal
19459754161,391
19461,0714011,472
19471,1153671,482
19481,0854271,512
19491,0864291,515
19501,1503821,532
19511,3164461,762
19521,0313571,388
19539742861,260
19541,0663811,447
19551,0543501,404

The next table classifies inquests for the same period according to the verdict returned.

YearDisease and Natural CausesAccidentHomicideSuicideViolent Deaths, Nature Unknown
MFMFMFMFMF
19453902334141031610112514319
19464362204821157597444917
194748618349813256103292317
194842419749316534125444017
19494072165241412911256417
1950490214509123113106323410
19515292496121318813150368
195228314857614728139353119
19531987861114796102365419
195420311868320937108306917
195524811865917712513550  

Prior to 1955 the source for data on inquests was the Inquest Book maintained by the Department of Justice. Now, however, data are obtained from the Deaths Register maintained by the Registrar-General. This has had the effect of deleting figures which formerly appeared in the column for Violent Deaths, Nature Unknown. However, it is highly probable that these figures are now absorbed in the Accident and Suicide columns. In view of this fact, due consideration must be given when comparing the figures appearing in those columns for 1955 and those for previous years.

Inquests in cases of disease and natural causes show that males outnumbered females by slightly more than two to one in 1955. The incidence of suicide among men compared with women has shown a decrease for 1955, being now just over two and a half times greater as against more than three and a half times in 1954. A true comparison of the accident figures for the last two years cannot be made due to the fact that those for 1954 include victims of the Tangiwai railway disaster of Christmas Eve 1953 and for which inquests were not held until 1954. However, compared with 1953, the 1955 figures show substantial increases in both males and females.

PRISONS: Historical Development.—The first prison in New Zealand of which there is any record was established in 1838, when the citizens of Kororareka (now Russell) joined together to provide for the administration of justice. It is recorded that an old sea chest, ventilated by means of gimlet holes, served as the first place of confinement for offenders.

In 1841 an ordinance provided for the institution of Courts of Justice and, as the colony developed, local gaols were established, though prisoners found guilty of the more serious offences were transported to Tasmania.

The first statutory provision dealing with prisons was passed in 1846. All buildings used at the time as public gaols were declared to be public gaols, and power was given to the Governor to declare other buildings public gaols. The Governor might make regulations prescribing the duties of officers, and the classification, diet, and treatment of prisoners. The appointment of Visiting Justices was also provided for. In 1854 the Secondary Punishment Act abolished the punishment of transportation and substituted penal servitude within the colony. Penal servitude was itself abolished in 1893.

Inconsistencies arose in the conduct of the prisons, and the state of affairs became so unsatisfactory that in 1868 a Royal Commission was set up to inquire into conditions. Although the Commission was extremely critical of what it found, little improvement or alteration was apparently made. In 1878 a special parliamentary committee was set up to inquire into prison conditions. The committee reported that the Government exercised no real control over the gaols or gaol officers in the country, and that the actual punishment varied from one district to another. Little or nothing had been done towards the classification of prisoners.

As the result of the committee's report the Government decided to reorganize the prison system and brought out one Captain Hume from England (Dartmoor Prison) to undertake the work. When he retired in 1909 much had been done to improve the prison system.

The first experiment in the direction of a roadmaking camp was made before the end of the century. At about the same time the first tree-planting camp was begun at Waiotapu, and was followed by others a few years later. For a variety of reasons the tree-planting camps later gave way to prison-farm camps. In their annual report for 1912 the then Inspector of Prisons and his deputy stated, “The undoubted advantage from all points of view of employing prison labour in the open' has been thoroughly demonstrated by the successful work of tree-planting operations since the initiation of the scheme, and for some time past it has been felt that an extension of the scheme to include all classes of agricultural work should be attempted. It is considered that in a country like New Zealand the natural outlet is in the country and not in the towns. From a public point of view it has a very important bearing as it tends to prevent the aggregation of prisoners in the towns where, partly for lack of adequate equipment for earning their living, and partly owing to their return to their former environment, they often revert to crime”.

There has since been gradual extension of the work in other directions. More prison farms have been opened. In 1914 Rotoaira prison camp was established, and a start made with the work of road building, which has continued until the present day. The year 1921 saw the beginnings of land-development camps, the object of which is to utilize prison labour for the development of the land for settlement purposes.

Outdoor occupations, however, were obviously not suitable for every prisoner, and those prisoners who had to be detained in an institution providing greater security were employed at a number of productive industries.

A milestone in the history of prisons in New Zealand was the Crimes Amendment Act 1910, sponsored by Sir John Findlay. This Act provided for sentences of reformative detention for periods of up to ten years in the case of the Supreme Court and up to three years in the case of the Magistrates' Courts. It also set up a Prisons Board charged with the responsibility of inquiring into the case of every prisoner at least once a year and of making recommendations whether he should be released on probation or discharged. The reason prompting the institution of the sentence of reformative detention was the lack of opportunity for any reformation or training during the short sentence that might be the maximum for a particular offence.

In 1924 New Zealand followed the example of Great Britain by providing for the establishment of borstal institutions for the training of young offenders.

Present-day Administration.—In the course of time reformative detention came to be regarded as merely a lighter form of imprisonment. The terms imposed were measured in relation to the gravity of the offence rather than, as had been intended, in the light of the possibility of reforming the offender if there was sufficient time for the administration to undertake a constructive training programme. In addition, the measures provided by the Crimes Act 1908 for dealing with the confirmed criminal—namely, declaring him an habitual criminal or an habitual offender—had become less effective. A declaration meant that the offender could be detained in prison indefinitely, but in fact many were released after a fairly short period.

Partly as a result of these defects, recidivism had become a serious problem in New Zealand. An attempt to improve the situation was made in the Criminal Justice Act 1954, which came into force on 1 January 1955 and revised the penal system. The Act had a two-fold purpose: the first, to provide every possible means of diverting the young or inexperienced offender from a life of crime, and the second, to protect the community against the hardened offender by keeping him away from society for a long period.

From the coming into force of the Act the sentences of detention which the courts may impose are as fellows:

  1. Borstal training, which means detention in a borstal institution for an indefinite period not exceeding three years. The offender must be at least seventeen years (in special cases fifteen) but under twenty-one years. The time of his release is decided by the Parole Board, which must consider his case from time to time. After his release he is on probation for twelve months.

  2. Detention in a detention centre, the term fixed by statute being four months. The offender must be at least seventeen but under twenty-three years of age, and he may earn up to one month's remission of his sentence by good conduct. (The part of the Act relating to this type of punishment has not yet been brought into force).

  3. Corrective training, which means detention in prison for corrective training for an indefinite period not exceeding three years. The offender must be at least twenty-one but under thirty years of age (in exceptional cases thirty-five) and must qualify for this sentence by the gravity of his offence or by the number of his previous convictions and the type of his previous sentences. The time of his release is decided by the Parole Board, which must consider his case from time to time. After his release he is on probation for twelve months.

  4. Imprisonment for a stated number of years or for life. If the sentence is for less than twelve months the Court may order that the offender be on probation for a period of up to twelve months from his release. If the sentence is for twelve months or more the offender will automatically be on probation on his release, the period of probation being for twelve months or for the unexpired term of his sentence, whichever is the greater. An offender sentenced to imprisonment may earn remission of his sentence up to one-quarter.

  5. Preventive detention, which means detention in prison for an indefinite term to be decided by the Parole Board, but in any event not less than three years nor, except where the offender has qualified for preventive detention through sexual offences, more than fourteen years. The offender must be twenty-five years of age or over and must have qualified for preventive detention by the number of his previous convictions and the type of his previous sentences. After serving three years of his sentence the offender may be released on probation on the recommendation of the Parole Board, provided the Board is of opinion that he is not likely to resume his criminal career. The period of probation in each case extends until the expiry of the full fourteen years or for life, as the case may be.

Subject to the over-all control of the Minister of Justice, the administration and general management of the prisons and the borstal institutions are the responsibility of the Secretary for Justice.

There are twelve institutions serving as prisons or borstals in New Zealand, and twenty-two police gaols. Any person serving a sentence of not more than eight days may be detained at any police station, which is deemed to be a prison for that period.

A summary of receptions and discharges during the year 1955 is given below.

MalesFemalesTotal

* Further analysis in next table.

In confinement 1 January 19551,160631,223
Distinct prisoners received during year2,4141172,531
Transfers between institutions, etc.*2,2321472,379
Discharged during the year—
  Transferred to other prisons or to police1,403931,496
  On expiration of sentence1,872711,943
  Released on bail15030180
  Released on recommendation of Parole Board47019489
  Released on special remission53035565
  Debtors1124116
  Mental defectives23326
  Other13715152
In confinement at 31 December 19551,097571,154
Daily average number in confinement during year1,160501,210

The total of 4,910 receptions during 1955 shown in the preceding table was arrived at by counting each person once every time received, whether by the same prison or not.

The total of receptions is further analysed in the following table.

Debtors and mental defectives131
Transfers between institutions888
Acquitted, fined, placed on probation, etc.943
Multiple receptions of same prisoner408
Distinct prisoners received under sentence2,531
      Total4,901
Plus difference between number held on remand at beginning and end of year9
 4,910

Of the different classes of receptions into prison shown above the important figure is that of distinct persons received under sentence—that is, counting each sentenced person once only during the year, irrespective of the number of separate terms served. Of the 2,531 distinct persons received during 1955, 2,414 were males and 117 females. Corresponding figures for 1954 were 2,404 distinct persons, 2,297 being males and 107 females.

An analysis is given below of distinct persons received into prison according to the nature of sentence for each of the years 1950–54.

Nature of Sentence19501951195219531954

* Includes 7 prisoners sentenced to life imprisonment in 1950, and 3 to be detained during Her Majesty's pleasure; also prisoners declared habitual offenders, 1 in 1951, 3 in 1952, and 2 in 1953.

† Sentence commuted to imprisonment for life.

‡ Includes 1 female commuted to life imprisonment and 3 Niucans sentenced outside New Zealand.

§ Includes 3 where licence cancelled and recalled to prison.

Hard labour or simple imprisonment*1,6651,6011,9161,9772,020
Reformative detention251218199196207
Borstal detention113131128142167
Hard labour and reformative detention391412205
Declared habitual criminal and sentenced to hard labour121012134§
Death 1161
      Totals2,0801,9752,2682,3542,404

Because of the changes made by the Criminal Justice Act 1954, the types of sentences imposed prior to 1955, and shown in the table above, are not identical with those now applicable. An analysis is given below of distinct persons received into prison according to nature of sentence imposed in 1955.

Nature of Sentence1955
Imprisonment2,238
Corrective training94
Borstal training181
Preventive detention14
Death4
      Total2,531

The next table shows the number of persons in prison at 31 December in each of the last eleven years.

At 31 DecemberPersons in GaolProportion Per 10.000 of Population as at 31 December
Undergoing SentenceOn Remand and Awaiting Trial, etc.TotalUndergoing SentenceTotal in Confinement
1945998421,0405.786.02
1946992401,0325.575.79
19471,088491,1375.996.26
1948986391,0255.325.53
1949941509914.975.23
19501,043401,0835.415.62
19511,040361,0765.285.46
19521,083301,1135.355.50
19531,088271,1155.245.37
19541,196271,2235.715.83
19551,117371,1545.225.39

The number of distinct persons received into prison under sentence of imprisonment during the last eleven years, with the proportion per 10,000 of mean population, is given in the next table.

YearNumberPer 10,000 of Mean Population
19452,06512.19
19462,21312.58
19472,35113.07
19482,18111.89
19491,7889.55
19502,08010.90
19511,97510.14
19522,26811.36
19532,35411.49
19542,40411.47
19552,53111.83

The Aim of the Prisons Administration.—The object of imprisonment is the protection of society, and this may be achieved by the processes of deterrence and reformation. It is the duty of the prisons administration to exert every effort to divert the young and malleable offender from further crime and to attempt reformation in any case offering any hope of success. It is also necessary to balance the demands of reformative training and security. The interests of the community as well as of the offender demand that so far as possible the time spent in prison should be so used as to bring about the greatest likelihood that the prisoner will lead a law-abiding and socially purposeful life on his discharge.

Classification.—The key to successful prison work lies in understanding the individual prisoner, and in order to assist the prisons administration to this end Classification Boards have been established in the three main reception centres, Auckland Prison, Wellington Prison, and Paparua Prison, Christchurch.

Classification is still in an experimental stage, but it is intended that every man sentenced to imprisonment for a term of six months or more will come before a sub-committee of the Board—consisting of the superintendent, deputy superintendent, and welfare officer of the prison—which will determine whether or not it is necessary for the prisoner to be more fully examined. According to the circumstances of each case the sub-committee will either report finally to the administration or will call upon a psychologist, psychiatrist, vocational guidance officer, probation officer, or any other form of specialist service which may be of assistance in defining the offender's character and potential, and in advising upon the most hopeful form of treatment while he is in prison.

In New Zealand the total number of prisoners is not high. There is therefore little opportunity for special categories of prisons. The task of the Classification Board is to advise on the question of allocation of prisoners. Boards have no executive powers, but they furnish to the prisons administration a report on each prisoner whom they see and their recommendations are as far as possible carried out.

The following table analyses the ages and offences of distinct persons received into prison under sentence during 1955.

Age, in YearsOffences Against the PersonBurglary, Theft, and FraudConversion, Wilful Damage, etc.Vagrancy and DrunkennessOther OffencesTotal
Sexual OffencesAssaultsOther
Under 20107182601783260
20 and under 25273691506446197529
25 and under 301934101542981137464
30 and under 4035361218230131187613
40 and under 5025124826135117381
50 and over218147413172284
      Totals137133376971935417932,531
Maoris (included above)3041111876082100511

The next table gives particulars of ages and length of sentence of distinct persons received into prison under sentence during 1955.

Age, in YearsLength of Sentence
Under 1 Month1 Month and Under 3 Months3 Months and Under 12 Months1 Year and Under 3 Years3 Years and Under 5 YearsOver 5 YearsOtherTotal

* Sentenced to death and executed.

Under 2135111295184 2366
21 and under 2591159893252  423
25 and under 3011015899424861464
30 and under 40185162157732781613
40 and under 50129116972964 381
50 and under 607355521242 198
60 and over2832188   86
      Totals651793541201321204*2,531

Of the total of distinct persons received into prison in 1955 no less than 63.5 per cent had been convicted for an offence on at least one previous occasion, and 25.4 per cent of these had been convicted more than six times.

Measures Employed in Treatment.—This section may conveniently be dealt with under five heads—vocational and non-vocational training; earnings; punishments; and after-care.

Vocational Training.—Every prisoner must assist by his labour to reduce the cost of his maintenance in custody; it is also necessary that he should develop the habit of hard and consistent work. In New Zealand all available prisoners are put to work on some form of constructive employment, whether it be industrial production in a secure institution or food production on a prison farm. In addition, and particularly for the younger offender, there are courses of trade training.

Non-vocational Training.—If a prisoner is eventually to be released into the community, then it is important during his period of imprisonment to pay regard to every aspect of his life as a citizen. It is not enough merely to restrict his freedom and to train him to work; he must also be kept or made mentally and morally fit.

An increasing number and variety of evening activities are being introduced into the prisons, and the number of prisoners engaged on them is likewise increasing. Very real training benefit is derived from these activities, whether they be recreational, educational, cultural, individual, or collective.

There are full-time teachers in Auckland Prison and in Invercargill Borstal Institution, and part-time teachers in many other institutions. It is their task to seek to improve the general education of those prisoners who have been unable to reach the level of the present Form II or the old Standard VI, and also to assist those who are undertaking further education or technical courses through a Correspondence School. The interest shown in education is encouraging, since in many cases it fits a prisoner for better employment on his release and thereby helps to reduce the chances of his further offending.

Since 1945, when, as the Country Library Service, it made some provision for the Invercargill Borstal Institution, the National Library Service has year by year increased its assistance to prisons. At the present time all institutions receive at regular intervals a generous supply of well-chosen books and, in addition, inmates are permitted a free use of the Library's Request Service.

Earnings.—All prisoners are credited with earnings based on a system of marks assessed according to diligence and conduct. The present system has been in operation for several years and is proving beneficial. A portion of the earnings may be spent on tobacco, confectionery, and toilet necessities in a prison canteen, and this provides an incentive to good work and conduct. At the same time the loss of this privilege is a useful disciplinary measure.

Punishments.—An inmate charged with one of the less serious offences against discipline appears before the Superintendent, who may impose a penalty or in his discretion refer the case to a Visiting Justice or to the Court. A Visiting Justice may deal with all cases of offences against discipline and must deal with those which are outside the jurisdiction of the Superintendent, unless he thinks they should be brought before the Court. His powers of punishment are wider than those of a Superintendent. The provisions as to offences and punishments are the same for both prisons and borstals.

After-care.—Offenders serving a sentence of borstal training, corrective training, preventive detention, or imprisonment for twelve months or more, are released on probation. For a period of time they must be under the supervision of a Probation Officer, and, during any part of that period falling within the maximum period they could have been detained in an institution, are subject to recall if their behaviour on release is not satisfactory. This period of supervision has a dual purpose—it is the protection of the community against further offending and it is at the same time ah aid to the prisoner to re-establish himself. The step from custody to freedom is a difficult one for prisoners, many of whom require assistance, advice, and discipline during this period.

An offender serving a sentence of imprisonment of less than twelve months is on probation after release if the sentencing Court so orders.

Parole Board.—This Board was established in 1910 under the name of the Prisons Board and it formerly reviewed the cases of all persons undergoing a sentence in prison or borstal. Following the coming into force of the Criminal Justice Act 1954, cases of all offenders serving terms of borstal training, corrective training, preventive detention, or life imprisonment are reviewable from time to time by the Board; whose duty it is to recommend release on probation in any instance where it thinks the person under sentence is sufficiently reformed to warrant it. Offenders serving sentences of imprisonment other than life are, able to earn remission of up to a quarter of the sentence, but may have their cases referred to the Board in special circumstances.

The Board consists of a Judge of the Supreme Court, the Secretary for Justice, and at least one but not more than five other members, all except the Secretary for Justice being appointed by the Governor-General for three years and being eligible for reappointment.

The cases considered by the Parole Board during each of the years 1951 to 1955 are as follows.

YearBorstal DetentionReformative Detention or Corrective TrainingHard LabourHabitual CriminalsProbationersTotal
Crimes Amendment Act and Criminal Justice ActOffenders Probation Act

* No longer under the control of the Parole Board.

19512374992374713141,047
1952282445245428231,045
195326434728037918955
19542733583155711191,033
195534732259607*795

It will be seen from the above table that the coming into force on 1 January 1955 of the Criminal Justice Act 1954 has had a considerable effect on the figures. Of the cases considered in 1955, recommendations were made for release on probation in 370 instances. One probationer under the Crimes Amendment Act and Criminal Justice Act was recommended for discharge. Two petitions were declined, while the remaining 422 were deferred.

POLICE FORCE.—The Police Force in New Zealand is a national body maintained wholly by the General Government. It was established under the provisions of the Police Force Art 1886, which came into operation on 1 September of that year. Prior to that date police duty in New Zealand had been carried out by members of the Armed Constabulary, which was then disbanded, some of its members being transferred to the newly constituted Police Force and others to the Permanent Militia. The Police Force Act 1886, consolidated in 1908, was revised and brought up to date by the Police Force Act 1913, and minor amendments were enacted in certain subsequent years. In 1947 an Act to consolidate and amend the law relating to the establishment and regulation of the Force was passed, and the Police Force Act 1947, as amended in 1951, 1952, 1954, 1955, and 1956, is the statute under which the Force now functions.

Organization and Duties.—A Controller-General and a Deputy Controller-General, with headquarters at Wellington, subject to the directions of the Minister of Police, have the general superintendence and control of the Police Force. New Zealand is divided into fifteen districts, each, with the exception of the Auckland district, under the charge of a Superintendent or Inspector of Police, who is responsible for the maintenance of good order and the proper execution of police duty therein. The Auckland Police District is under the control of an Assistant Commissioner. Districts are divided into sub-districts under the charge of sergeants or constables, and cities and towns where regular beat duty is performed are divided into beats, patrolled by constables under the supervision of sergeants.

The principal duty of the Police Force as defined by the Police Force Act is “the preservation of peace and order, the prevention of crime, and the apprehension of offenders against the peace”. In addition to the enforcement of the criminal law and the provisions of the Police Offences and the Official Secrets Acts, there are several statutes of a regulatory nature which the police are called upon to administer, wholly or partly, such as the Arms Act, Licensing Act, Gaming Act, Dangerous Drugs Act, Transport Act, Pawnbrokers Act, Secondhand Dealers Act, etc. They also undertake inquiries and other duties on behalf of other Departments of the Government Service, principally the Social Security Department, Registrar-General's Office, Department of Internal Affairs, and Department of Education (Child Welfare Division).

Police in country districts in many cases hold such additional appointments as Clerks and Bailiffs of Magistrates' Courts, Probation Officers, Inspectors of Sea-fishing, and Kauri-gum Rangers.

Recruiting.—In general, recruits for the Police Force must be between the ages of twenty-one and thirty-five years, be not less than 5 ft. 9 in. in height, and have a normal chest measurement of not less than 38 in. There is provision, however, to accept suitable recruits from the age of nineteen years up to forty years of age. Recruits must be the holders of a certificate of school attainment for Form II, or possess educational qualifications of an equal or higher standard. They must be of good moral character, smart, active, intelligent, and free from bodily complaint or infirmity. The selection of recruits is made after exhaustive enquiries have been made into the character, antecedents, and qualifications of the applicants. On appointment they undergo a course of training in the Training Depot, in which they are drilled and receive instruction in the duties they will be called upon to perform.

Appointments to vacancies in the higher ranks of the Force are made from those members of the next lower rank who have qualified by examination, efficiency, and seniority for such promotion.

Members who show an aptitude for detective duty are detailed for service in the Criminal Investigation Branch which is attached to each district headquarters and undertakes the investigation and detection of the more serious crimes.

Strength of Force.—In addition to the Controller-General, the strength of the Police Force on 31 March 1956 was 2,029, being an increase of 336 during the year. The total was made up as follows: Deputy Controller-General, 2 Assistant Commissioners, 10 Superintendents, 20 Inspectors, 25 Sub-Inspectors, 64 senior sergeants, 185 sergeants, 1,029 constables, 498 temporary constables, 65 police women, 17 senior detectives, 50 detective sergeants, and 63 detectives. There were also 3 matrons, 11 police surgeons, and 1 district constable.

The following table shows the strength of the Police Force during the last eleven years.

As at 31 MarchAll OfficersNoncommissioned Officers (Uniform Branch)Criminal Investigation Branch (Excluding Officers)ConstablesTotal*

* Not including surgeons, police-women, matrons, etc.

1945381681101,2501,566
1946351741031,1641,476
194739208971,1541,498
194837212941,1781,521
1949362241031,1791,542
1950362201061,1771,539
1951412221101,1951,568
1952372301191,2031,589
1953442281271,2031,602
1954452271211,2581,651
1955452321271,2541,658
1956582491301,5271,964

Women Police.—By the Statutes Amendment Act 1938 provision was made for the appointment of women police, it being enacted that the terms of the Police Force Act shall apply to women appointees. The Police Force Act 1947, which repealed the relevant section of the earlier legislation mentioned above, provided that the term Police Force was to include all members of either sex appointed under the Act. The first 10 appointees completed their training and commenced duty in October 1941. The present strength is 65, and these are stationed at Whangarei, Auckland, Hamilton, Napier, New Plymouth, Wanganui, Palmerston North, Wellington, Greymouth, Christchurch church, Dunedin, and Invercargill.

Their duties consist mainly in investigating complaints in respect of women and children, patrol duties in uniform, and generally their work is confined largely to their own sex, but five are employed in the Criminal Investigation Branch.

Chapter 9. SECTION 9—DEFENCE AND REHABILITATION

9 A—DEFENCE

CONTROL AND CO-ORDINATION OF DEFENCE.—In New Zealand control and co-ordination of defence activities are obtained through the Defence Council, the appointment of one Minister of Defence in charge of the three Services, and through a series of inter-Service committees. The comparative simplicity of defence problems in New Zealand has required neither the appointment of a Minister of Defence directing subordinate Ministers in charge of each Service nor the establishment of a Department of Defence superior to the Navy, Army, and Air Departments. Co-ordination is facilitated by the presence in the Prime Minister's Department of a Defence Secretariat serving the main policy-forming committees and performing some of the functions which in other countries are handled by Departments of Defence.

Defence Council.—The Defence Council consists of the Prime Minister, the Minister of Defence, and other Ministers concerned with various aspects of national security. The Chiefs of the Naval, General, and Air Staffs, and the Secretaries of the Treasury and of External Affairs, attend meetings of the Council in a consultative capacity. The purpose of the Council is to keep defence policy and organization constantly under review, including questions of co-operation on defence with other countries of the British Commonwealth and military questions arising as a result of New Zealand membership of the United Nations.

Chiefs of Staff Committee.—The Chiefs of Staff Committee, comprising the Chiefs of the Naval, General, and Air Staffs, is responsible for advising the Government on defence policy and strategic questions. It is served by several inter-Service committees dealing with various subjects such as strategic and operational plans, intelligence, and communications.

Principal Personnel Officers' Committee.—This Committee consists of the Senior Personnel Officers of each of the services and a representative of Treasury.

Principal Administrative Officers' Committee.—This Committee consists of the Senior Supply Officers of each of the Services and a representative of the Treasury. This and the preceding Committee are assisted by subordinate committees considering particular problems such as medical arrangements, recruiting, and the design and provision of clothing and other stores.

Co-operation with Other Countries.—In order that contact might be maintained with other countries, New Zealand Joint Service Liaison Staffs are maintained in London, Melbourne, and Washington. In 1956 a New Zealand Military Liaison Officer was appointed to the Staff of the Commissioner for New Zealand in South-east Asia, Singapore, and the Head and Deputy Head of the New Zealand Services Liaison Staff in Washington were accredited to the Canadian Service authorities as Military, Naval, and Air Advisers to the High Commissioner for New Zealand in Ottawa. The United Kingdom and Australia have Service representatives in Wellington attached to the offices of their respective High Commissioners, and there is a Military Attaché on the Staff of the United States Embassy in Wellington.

Industrial War Potential.—Planning in respect of the demands which, in war or on the threat of war, the Services would make on industry is the task of the Joint War Production Committee. This Committee, which reports to the Government through the Minister of Industries and Commerce, is centred in the Department of Industries and Commerce. It consists of the Secretary of the Department of Industries and Commerce (Chairman), and representatives of the Treasury, the Department of Scientific and Industrial Research, the Prime Minister's Department, and the Senior Supply Officers of the Services.

Defence Science.—Defence science activities in New Zealand are guided by an executive committee, comprising the Chiefs of Staff and the Secretary of the Department of Scientific and Industrial Research, known as the Defence Science (Policy) Committee.

The Defence Science (Policy) Committee is served by appropriate technical sub-committees of Service and scientific composition. It is aided by the Defence Science Advisory Committee consisting of non-Government scientists and experts. The Policy Committee with its supporting groups is known as the Defence Research Organization.

Defence Science activities are co-ordinated with Commonwealth requirements through the Commonwealth Advisory Committee on Defence Science or by direct negotiation with other Commonwealth Governments.

LEGISLATIVE AUTHORITY FOR THE ARMED SERVICES.—The principal statutes governing the Armed Services are as follows: Army, the New Zealand Army Act 1950 and 1954 amendment, the Military Manoeuvres Act 1915; Navy, the Navy Act 1954, the Naval Discipline Act (U.K.), the Naval and Victualling Stores Act 1908; and Air Force, the Royal New Zealand Air Force Act 1950 and 1954 amendment.

Two other Acts of general application, though the first affects the Army to a greater extent, are the Military Training Act 1949 and the Courts-Martial Appeals Act 1953. The latter provides for the establishment of a special Court of Appeal for the Navy, Army, and Air Force, to which persons convicted by a Court-martial may appeal against conviction.

The Court is to consist of an uneven number of Judges (not fewer than three), of whom one is a Judge of the Supreme Court and the others either Judges, barristers, or former Judges of the Supreme Court.

The Courts-Martial Appeal Court is empowered to allow an appeal if it thinks that the finding of the Court-martial is unreasonable, or cannot be supported having regard to the evidence, or involves a wrong decision on a question of law, or that on any other ground there was a miscarriage of justice. The Court may dismiss any appeal if it considers that no substantial miscarriage of justice has actually occurred. When the Court allows an appeal it may direct either an acquittal or a new trial.

The Court may also substitute what it regards as another lawful conviction for the conviction appealed from, and it is empowered to substitute where necessary an appropriate sentence for the sentence of the Court-martial without increasing the sentence.

The decision of the Court on any appeal is to be final unless the Attorney-General grants a certificate that a point of law of exceptional public importance is involved, and that another appeal is desirable in the public interest, in which case it may be made to the Court of Appeal.

The Military Training Act 1949.—Under the Military Training Act 1949 every British male subject ordinarily resident in New Zealand is liable to be called upon to serve three terms of service on attaining the age of eighteen years. Provision is made for exemptions, principally in the case of conscientious objectors, and also for deferment in the cases of students and others.

The service is as follows:

  1. A period of whole-time service of fourteen weeks, which is served in a training camp. This period has been temporarily reduced to 10½ weeks with the aim of building up establishments more quickly.

  2. A period of part-time service of three years during which a total of sixty days, made up of fourteen days in-camp and six days out-of-camp training each year, must be served. The out-of-camp training was reduced to three days annually from 1 April 1956—i.e., a total of fifty-one days for part-time service.

  3. A six-year term of service in the Reserve, involving no training liabilities.

The 1951 amendment to the Military Training Act extended its operation to men who were over the age of eighteen years but under the age of twenty years on 1 November 1949. Those over eighteen but under nineteen on that date were made liable for service in the normal way (except that the period of part-time service has now been reduced to one year's duration), and those over nineteen but under twenty years were liable to register and be medically examined and to serve four years in the Reserve. The 1953 amendment extended liability to male British subjects becoming resident in New Zealand after the age of eighteen and under twenty-one years. By the 1954 amendment the liability for service ceases at the age of thirty years unless previously terminated.

The 1956 amendment to the Military Training Act provided that persons subject to the Act may be called upon for service at any age above eighteen years, but not exceeding twenty years. Currently the age at which persons become liable is eighteen years three months. This amendment also provides for the aggregation of whole-time and part-time training, in certain Royal New Zealand Air Force trades, to a continuous period of whole-time training exceeding fourteen weeks but not exceeding twenty-two and a half weeks.

THE ROYAL NEW ZEALAND NAVY.—The Government in New Zealand has since the earliest days made provision for Naval forces in its defence measures. Royal Naval vessels regularly visited New Zealand waters, but these were soon supplemented by a number of Government-owned vessels, the first of which was the Australia, a schooner purchased from India in 1842. In addition, in 1877 the New Zealand Government began regular financial contributions towards maintaining Royal Naval ships in New Zealand waters.

A Naval Defence Act was passed in 1913 to provide for the maintenance of a sea-going Naval Force and a training centre under the immediate control of the New Zealand Government. Unfortunately the First World War intervened, but in 1921 this policy was implemented and the Naval Forces became the New Zealand Division of the Royal Navy. In 1941 these forces became the Royal New Zealand Navy.

Command and Administration.—The Royal New Zealand Navy is controlled by the Naval Board, which consists of the Minister of Defence (Chairman), a Rear Admiral (as First Naval Member and Chief of the Naval Staff), a Commodore (as Second Naval Member and Member for Personnel), a Captain (as Third Naval Member and Member for Supply), and the Permanent Head of the Navy Department (as Navy Secretary and Member for Finance).

Role of the Royal New Zealand Navy.—Through the collective defence arrangements made by New Zealand, e.g., under UN, SEATO, and ANZUS agreements and within the Commonwealth, the Royal New Zealand Navy provides forces capable of integrating with the Navies of friendly nations. These forces are also planned to provide a measure of defence for the home territories should the need arise.

One ship is permanently attached to the Commonwealth Far East Strategic Reserve and others could reinforce it at short notice. The normal peacetime duties are many and varied, and include flag-showing cruises to foreign ports and around New Zealand and its Island Territories; support for New Zealand Antarctic interests, surveying, fishery protection, and servicing weather stations. These are in addition to training both active service personnel and reserves for their wartime tasks.

State of the Navy.—Her Majesty's New Zealand ships are at present:

CruisersRoyalist 
 Black PrinceIn reserve.
FrigatesRotoitiOne on Far East Station; a second maintained in New Zealand waters, available for service in the Far East but employed on training duties until required; a third in preparation as a replacement for one of the two mentioned above; the remainder in reserve.
 Taupo
 Hawea
 Kaniere
 Tutira
 Pukaki
 LachlanSurvey ship.
Ocean minesweepersStawellTraining ship.
 KiamaIn reserve.
 Inverell
 Echuca
Anti - submarine mine-sweeping vesselsKiwiIn reserve.
 Inchkeith
 Killegray
 Sanda
 Scarba
Fleet auxiliaryTuiOceanographic and Naval research.
Ex-netlayerEndeavourAntarctic expedition support ship.
Motor launchesTwelveFishery protection. Training. Harbour duties.
  Survey work. R.N.Z.N.V.R. Divisions.

Shore Establishments.—The New Zealand Naval Board is the controlling authority of the Royal New Zealand Navy, and is situated in Navy Office, Wellington, together with Naval Staff Officers and administrative departments of the Navy.

The Naval Base, situated at Devonport, includes the Dockyard, the Naval Barracks (H.M.N.Z.S. Philomel), and the Royal New Zealand Naval Hospital. The Naval Officer in Charge, Auckland (a Captain R.N.Z.N.), is responsible for general organization and administration. The Dockyard, which is administered by a Captain Superintendent, includes the Naval Store Depot and the Naval Armament Depot, and provides facilities for repair of all ships up to a light cruiser standard.

H.M.N.Z.S. Tamaki is situated at Motuihe Island, Auckland, and is the Navy's Basic Training Establishment.

H.M.N.Z.S. Irirangi, situated at Waiouru, in the centre of the North Island, is the Royal New Zealand Naval Wireless Telegraphy Station.

Personnel.—Entry into the Royal New Zealand Navy is open to young New Zealanders through the following channels:

BoysAges 15 years 3 months to 16 years 3 months.
Artificer apprenticesAges 15 years to 17 years.
YouthsAges 16 years 3 months to 17 years 6 months.
Adult entriesAges 17 years 6 months to 25 years (28 years for tradesmen).

With the exception of the artificer apprentices who carry out their initial training in Philomel before proceeding to the United Kingdom for trade training, all new entries receive their basic training in Tamaki. Technical and specialist training is, as far as possible, carried out in New Zealand, but where no facilities exist, ratings attend courses in naval establishments in Australia and the United Kingdom.

Suitable ratings who qualify educationally and professionally are eligible for promotion to commissioned rank or branch rank, dependent on age and experience.

There are also two schemes for direct entry as officer cadets. Candidates between the ages of 15 years 6 months and 16 years 6 months are eligible for selection as Cadet Midshipmen, and these cadets carry out three years' training in the Royal Australian Naval College, Flinders, Victoria, before proceeding to the Royal Navy, where the remainder of their training is carried out. Candidates between the ages of 17 years 8 months and 19 years are eligible for selection as Special Entry Cadets. These cadets proceed to the United Kingdom on entry, and serve seven terms in the Royal Naval College, Dartmouth, before joining the fleet for further training. All officers return to New Zealand for service in the Royal New Zealand Navy when they have completed the necessary courses for promotion to Lieutenant.

Women's Royal New Zealand Naval Service.—The Women's Royal New Zealand Naval Service was first formed in 1942 as a wartime service, being disbanded at the end of 1946 upon conclusion of hostilities. It was reinstituted in April 1947 as a temporary measure to offset the manning shortage (at that time) in the Royal New Zealand Navy. In 1949 the W.R.N.Z.N.S. became a permanent part of the Royal New Zealand Navy. Employment of members of the W.R.N.Z.N.S. is varied and includes duties as cooks, stewards, writers, shorthand-typists, chart correctors, motor-transport drivers, and teleprinter operators. These duties are supplemented or amended as necessary to meet the requirements of the Navy.

Royal New Zealand Naval Volunteer Reserve.—The post-war R.N.Z.N.V.R. has been reestablished with Divisions in the four main centres, and training of officers and ratings is being carried out. The implementation of the Military Training Act 1949 affects the R.N.Z.N.V.R. to the extent of about three hundred ratings annually. Compulsory Naval reservists undergo fourteen weeks' basic training in H.M.N.Z.S. Tamaki, after which they join up with their local R.N.Z.N.V.R. Division for four years' further part-time training.

Strength of the Navy.—The strength of the Navy as at 31 December 1956 is shown below.

 OfficersRatingsTotal
Regular Forces (Incl. W.R.N.Z.N.S.)3222,5272,849
Active Reserves—
  Royal New Zealand Naval Reserve24 24
  Royal Fleet Reserve 44
  Royal New Zealand Naval Volunteer Reserve1261,1011,227
      Totals1501,1051,255
Inactive reserve—
  Royal New Zealand Naval Reserve 1,1861,186
  Royal New Zealand Naval Volunteer Supplementary Reserve310 310
  Royal New Zealand Naval Emergency Reserve 573573
  Retired Officers and Pensioners165145310
  Compulsory Naval Reservists2658660
  Royal Naval Special Reserve 1212
 4772,5743,051

Naval Expenditure.—During the year ended 31 March 1956 the sum of £6,231,422 was expended on the Royal New Zealand Navy. Of this sum, £5,817,363 was expended from vote “Navy” and £414,059 from vote “Defence: Construction and Maintenance—Subdivision I—Navy.” The total expenditure for the previous: financial year was £6,296,847.

Activities in 1956.—1956 saw major steps in the development of the Royal New Zealand Navy. In April the modern cruiser Royalist was commissioned as a unit of the Royal New Zealand Navy, and in July she was formally handed over to the New Zealand Government. For the first time a cruiser on the New Zealand Station is commanded by an R.N.Z.N. Captain. After working up and a period of exercises with the Mediterranean Fleet she steamed home via South Africa and arrived at Auckland on 20 December.

In July an area of land at Northcote, Auckland was selected as the site for the new training establishment, which is to replace the temporary war-time establishment on Motuihe Island.

In November the Government authorized the ordering of two fast anti-submarine frigates of the Whitby class as part of the ship-replacement programme.

H.M.N.Z.S. Endeavour, formerly the Royal Research Ship John Biscoe, was bought in June, commissioned as a Naval vessel and sailed to New Zealand. In December she sailed for McMurdo Sound with the New Zealand section of the Trans-Antarctic Expedition to establish the New Zealand Base in the Ross Dependency.

Administrative changes included the adoption of a new officer structure, which closely follows that introduced in the Royal Navy, and the appointment in August of the first officer of the Royal New Zealand Navy to the post of Naval Officer-in-Charge, Auckland.

During the year New Zealand ships took part in three exercises on the Far East Station. In March Pukaki, then on the Far East Station as part of the Commonwealth Strategic Reserve, took part in a SEATO exercise. Later that month she was joined by her replacement on the station, Kaniere, in an ANZAM exercise and in September and October Kaniere took part in a SEATO exercise. All three exercises were centred mainly on the South China Sea.

In addition to her normal surveying work Lachlan was engaged at intervals from April to the end of the year in surveying Cook Strait. This work was necessary to establish the possibility of transfer of electric power by submarine cable between the South and North Islands. She was assisted during the early stages by the auxiliary Isa Lei.

In December the frigates Hawea and Pukaki escorted the Royal Yacht Britannia when the Duke of Edinburgh embarked from Lyttelton to the Chatham Islands. Later, after they parted company with the Royal Yacht they met Endeavour and accompanied her to the ice-edge at a point approximately 1,000 miles south of Bluff.

Sea training for recruits and reservists continued during the year in Hawea, Stawell, and Kiwi. Kiwi, however, sailed for Auckland in September to pay off into reserve.

Fleet auxiliaries were fully occupied during the year. Tui worked exclusively on a wide range of research work, including an extensive programme for the Oceanographic Osbervatory. Other units continued to operate the only sea link between Auckland and the islands of the Great Barrier.

THE ARMY.-–The New Zealand Army is raised, maintained, and organized under the authority of the New Zealand Army Act 1950.

The Army consists of the Regular Force, the Territorial Force, the Army Reserve, the Cadet Corps, and military forces raised in time of war or other like emergency.

The New Zealand Army comprises the following Corps:

  • The Royal New Zealand Artillery.

  • The Royal New Zealand Armoured Corps.

  • The Corps of Royal New Zealand Engineers.

  • The Royal New Zealand Corps of Signals.

  • The Royal New Zealand Infantry Corps.

  • The New Zealand Special Air Service.

  • The Royal New Zealand Army Service Corps.

  • The Royal New Zealand Army Medical Corps.

  • The Royal New Zealand Army Ordnance Corps.

  • The Corps of Royal New Zealand Electrical and Mechanical Engineers.

  • The Royal New Zealand Dental Corps.

  • The Royal New Zealand Chaplains Department.

  • The New Zealand Army Pay Corps.

  • The New Zealand Army Legal Service.

  • The Royal New Zealand Provost Corps.

  • The New Zealand Army Education Corps.

  • The Royal New Zealand Nursing Corps.

  • The New Zealand Women's Royal Army Corps.

  • The New Zealand Cadet Corps.

The New Zealand Army Act as far as possible places the officers and soldiers of the Regular and Territorial Forces on the same footing.

Command and Organization.—The Army Board consists of—

  • The Minister of Defence, as President;

  • The Chief of the General Staff (First Military Member);

  • The Adjutant-General (Second Military Member);

  • The Quartermaster-General (Third Military Member);

  • The Army Secretary; and

  • A Territorial Officer (Associate Member).

The Board is charged with the administration and, through the officers appointed for that purpose, the command of the Army.

The Army in peace is so organized, trained, and equipped that, in the event of war, it can undertake rapidly and efficiently the tasks which will fall to it. Based on this principle, the higher grouping within the Army is—

  • Army Troops, which include Army Headquarters, the Army Schools, and base units. In general, Army Troops contain the machinery for the higher command and administration of the Army.

  • District Troops, which include District and Area Headquarters, District Training Camps, and such other units as are placed under command. These comprise the home defence and training elements of the Army.

  • New Zealand Division, which is a formation for employment within or outside New Zealand as the situation may demand.

Liability for Periods and Conditions of Service.—The liability for and conditions of service are given briefly in the following paragraphs.

Regular Force.—All officers and soldiers of the Regular Force are liable for service within New Zealand and, with the exception of minors and a Home Service Section, overseas.

Enlistment in the Regular Force, which is voluntary, is until retiring age for officers, with provision for special short-term engagements, and for soldiers as follows:

  • Men: Eight years, of which the first five years are served on the Active List and the remaining three on the Reserve. Re-engagement for seven years or until retiring age for rank may be made at the conclusion of the initial five-year term. There is also provision for short-term engagements.

  • Women: Three years, with re-engagement for one or two years or until retiring age for rank.

Territorial Force.—In time of war or other like emergency the Governor-General may, by Proclamation, transfer the Army Reserve or any specified portion thereof to the Regular Force or to the Territorial Force, and declare the Territorial Force liable for continuous service within New Zealand or overseas during the continuance of such state of war or emergency.

Territorial soldiers on completing their obligations for whole-time and part-time training under the Military Training Act 1949 are posted to the Army Reserve, Class A, which will provide the trained manpower if and when, in any future war, an Expeditionary Force is required.

The Military Training Amendment Act 1951 provides for every male British subject, ordinarily resident in New Zealand, born during the year commencing on 1 November 1929 and ending 31 October 1930 to be liable for service in the reserve for a period of four years. Soldiers called up under this provision and posted to Class “C” of the Army Reserve completed their obligations by October 1956.

The New Zealand Army Act also empowers the Governor-General to accept the offer of any officers or soldiers of the Territorial Force or the Army Reserve, or of any other persons, to render themselves liable, or to enlist in the Army, as the case may be, for service within or outside New Zealand.

Training.Regular Force: Except in cases of special entry from the Universities, a limited number of suitable Regular soldiers, and personnel who have had active service experience, Regular officers are commissioned, in the rank of Lieutenant, on graduation from the Royal Military College, Duntroon, Australia. They receive specialist and refresher training in New Zealand, while in certain cases their advanced training is carried out at British and Australian Army schools. Promotion to Captain and Major is gained after six and thirteen years commissioned service respectively, providing that the prescribed promotion examinations and courses are passed. Candidates for Staff College must pass the same entrance examinations as officers of the British Regular Army.

Regular soldiers are trained at the Army Schools in New Zealand. In certain cases advanced training is received in the United Kingdom and Australia. Before promotion to Corporal and Sergeant other ranks must pass the prescribed promotion examinations.

Territorial Force: The annual obligatory training prescribed for Territorial personnel consists of—

  1. Annual training camp: Fourteen days.

  2. Out-of-camp training: Six days, made up of whole-day or week-end parades, plus a proportion of evening parades in the form of instructional classes. This period was reduced to three days from 1 April 1956, the emphasis being on whole-day rather than week-end parades.

Attendance for a further twenty days' training annually, including courses at Army or District Schools, is authorized for officers and non-commissioned officers, and up to 10 per cent of unit strength for other personnel performing essential duties.

Before promotion officers are required to qualify at the prescribed courses and examinations for the next higher rank.

Compulsory Military Service Under the Military Training Act 1949: This service is as follows: (a) a period of whole-time service of fourteen weeks in a training camp (at present the period is 10½ weeks). (b) a period of part-time service of three years during which the soldier must serve for a total of sixty days, made up of fourteen days in-camp and six days out-of-camp training each year (at present the total is fifty-one days, the out-of-camp training being three days annually), (c) service for six years in the Army Reserve, with no training liabilities.

The Act was amended on 31 October 1956 raising the age of call-up as from 1 January 1957 from eighteen years to eighteen years three months.

Training Establishments.Army Schools: Headquarters, Army Schools, commands and administers a group of Army Schools situated at the one centre, which provide courses for all ranks of the Regular Force as well as officers and specialist non-commissioned officers of the Territorial Force.

The group consists of the Tactical School, Regular Force Depot, School of Army Administration, School of Artillery. School of Signals, School of Infantry, Royal New Zealand Army Service Corps School, Royal New Zealand Electrical and Mechanical Engineering School, the Regular Force Cadet Unit, and the Regular Force Cadet School.

The Regular Force Depot provides basic recruit and instructor courses for all arms of the Regular Force, including Regular Force Cadets.

The Regular Force Cadet School provides academic training for cadets between the ages of sixteen and eighteen years.

Other training establishments, the Armoured Corps Depot, School of Military Engineering, Signals Depot, and the Medical Corps Depot are situated apart from the central Army Schools organization but fulfil similar functions. In addition, each military district from time to time holds courses for Territorial officers and soldiers, and for personnel of the New Zealand Cadet Corps.

New Zealand Division.—On 1 May 1951 the headquarters of the New Zealand Division was established at Linton Military Camp, and as from 1 June assumed normal functions of command and administration of the formations and units of the Division. Both Regular and Territorial officers have been appointed to the headquarters staff.

Since the introduction of compulsory military training the formation of Divisional Headquarters is an important move in the furtherance of the policy of having a New Zealand Army organized and trained in peace so that it can efficiently take over its tasks and responsibilities in time of war.

New Zealand Armed Forces Serving in Korea and Malaya.—As a signatory of the Charter of the United Nations New Zealand has a general obligation to co-operate with other members in the prevention of aggression and the restoration and maintenance of peace.

New Zealand is currently discharging this obligation by providing Naval and Army forces to participate under United Nations command in Korea.

The New Zealand Army “Kayforce”, enlisted from special volunteers, has been serving in Korea since January 1951. It originally consisted of a field regiment of artillery and auxiliary units, but has been progressively reduced to a transport platoon.

In April 1957 the Minister of Defence announced that Kayforce would return to New Zealand in the following few months, but a small Army liaision staff might remain in Korea after the withdrawal of the main body of the force.

As a result of the Commonwealth Prime Ministers' Conference held in London early in 1955, New Zealand undertook to make a contribution to the strategic reserve being formed in Malaya. New Zealand's contribution is a Special Air Service Squadron, which is serving under the British 22 S.A.S. Regiment in Malaya. The Squadron consists of six officers and one hundred and twenty-three other ranks.

New Zealand Cadet Corps.—One hundred and fifty secondary schools have Cadet units. These units are designated by the name of the school. Service is voluntary, and annual training approximates thirty drills, each of one and one-half hours. All units are basically infantry, but provision is made in the larger units for such specialist activities as Sea Cadets, Artillery Troops, Signal Troops, and Air Training Corps Flights. All units can take part in certain Empire shooting competitions, and have had marked success in this respect. Courses for officers and non-commissioned officers are held at District Training Camps, and units may hold camps or barracks annually.

Activities During 1955–56.—The Territorial Force continued to grow in numbers and efficiency. Kayforce was maintained at its established strength, and the Special Air Service Squadron raised, trained, and sent to Malaya. Assistance was continued to the Fiji Military Forces, including the regiment engaged in operations in Malaya. Seven Army officers were also provided as United Nations Observers in Palestine. A further three officers are serving as United Nations Observers in Kashmir.

All units of the Territorial Force completed their annual obligatory training. Infantry battalions each carried out an exercise set by brigade commanders during their annual camps, and all brigades held tactical exercises without troops for officers of all arms. In addition divisional exercises were held in 1955 and 1956. The 1955 exercise of three days' duration was designed primarily to exercise divisional and brigade headquarters in their functions in the field. The 1956 exercise, which was for senior officers, dealt with certain aspects of jungle warfare.

During the Christmas and New Year periods 1954–55 and 1955–56 and the 1955 and 1956 Easter periods the Royal New Zealand Provost Corps assisted the Transport Department by providing volunteers for traffic patrols in the major cities of the country.

The Army continued its aid to the Search and Rescue Organization.

Rifle Clubs and Associations.—All rifle clubs and associations (including the parent body, the National Rifle Association of New Zealand) must be formally recognized by the Army Board. There are 173 rifle clubs and 17 rifle associations in New Zealand.

The planning, construction, and maintenance of rifle ranges, and safety precautions to be observed in conducting rifle practices and competitions, are governed by orders issued by the Army Board.

Army Expenditure.—The following table shows Army expenditure for the financial years 1954–55 and 1955–56.

Year Ended 31 March £
1955Vote: Army7,240,188
Vote: Defence Construction and Maintenance812,599
Defence Fund (Kayforce)3,225,472
    Total£11,278,259
1956Vote: Army7,611,567
Vote: Defence Construction and Maintenance880,713
Defence Fund (Kayforce)531,204
    Total£9,023,484

Strength of the Army.—The strength of the Army as at 30 September 1956 was as follows.

 OfficersOther RanksTotal

* Includes 129 members of Special Air Service Squadron and 197 women.

† Excluding 3 Regular officers and 3 Regular soldiers included under Regular Force.

Regular Force (incl. seconded from British Army)5433,2463,789*
Territorial Force (Active)1,37128,61829,989
Reserve of Officers (Regimental List)331 331
Class A Reserve 22,19922,199
Class B Reserve 306306
Class C Reserve 3,1033,103
Cadet Corps79339,62340,416
Kayforce12124136

THE ROYAL NEW ZEALAND AIR FORCE.—The Royal New Zealand Air Force had its inception in the New Zealand Permanent Air Force and the New Zealand Air Force (Territorial) established as part of the defence forces of the country in 1923. Permission to change the name of the N.Z.P.A.F. to Royal New Zealand Air Force was granted by His Majesty King George V in 1934. By the Air Force Act 1937, the R.N.Z.A.F. was constituted as a separate armed service, and its administration was vested in the newly formed Air Department. Until 1951 the administration of Air Force law was in accordance with R.A.F. practice, but with the coming into force that year of the R.N.Z.A.F. Act 1950 the provisions of the R.A.F. code ceased to apply.

Command and Organization.—The force is raised, maintained, and organized under the R.N.Z.A.F. Act 1950 and the amending Act of 1954, and consists of—

  1. The Regular Air Force.

  2. The Territorial Air Force.

  3. The Air Force Reserve.

  4. The Women's Royal New Zealand Air Force.

  5. The Air Training Corps.

It is administered by the Air Board, which consists of—

  • The Minister of Defence, as President.

  • The Chief of the Air Staff.

  • The Air Member for Personnel.

  • The Air Member for Supply.

  • The Air Secretary, who is also the permanent head of the Air Department.

Command of the R.N.Z.A.F. is exercised by the Air Officer Commanding, who also holds the appointment of Chief of the Air Staff. R.N.Z.A.F. Headquarters is located in Wellington. There are nine stations in New Zealand, including Headquarters Unit, and one in Fiji. A small headquarters is established in London and liaison offices are maintained in Washington and Melbourne. Two squadrons are serving with the Far East Air Force in Malaya.

Role.—The role of the R.N.Z.A.F. is to provide forces for the defence of New Zealand and her island and trust territories, for the defence of sea and air communications, and for deployment overseas as necessary to support the United Nations and to meet obligations to, and defence arrangements with, the Commonwealth and allied countries. In order to meet these commitments the R.N.Z.A.F. is organized to provide an operational force immediately available in an emergency, and on mobilization to expand to provide additional operational and supporting units. In addition, a search and rescue organization is maintained in New Zealand and the South Pacific area.

Administration: Regular Air Force.—Candidates for commissions in the General Duties branch are drawn mainly from civil life and appointed to short-service commissions. Permanent commissions in the General Duties branch are granted to limited numbers of men who are selected for training at the R.A.F. and R.A.A.F. colleges at Cranwell and Point Cook respectively.

Candidates for commissions in branches other than General Duties are drawn largely from the ranks. Some, with higher educational and specialist qualifications, are commissioned on joining the Service. Commissions are either permanent or short service; the latter are of five years' duration and carry an obligation for service with the Air Force Reserve.

Retiring ages for officers holding permanent commissions in the General Duties branch are: Squadron Leader and below, forty-five years; Wing Commander, forty-eight years; Group Captain and above, fifty-three years; while those for other branches are forty-nine, fifty-one, and fifty-three years respectively.

Service for airmen in the Regular Air Force is mainly through initial engagements of up to eight years on the active list, according to trade, with a reserve liability of four years in each case. Twelve-year engagements are granted to men who have been selected for training at the R.A.F. apprentice schools at Halton and Locking. Opportunities exist for re-engagement to qualify for superannuation. Normally, total service for superannuation is twenty-four years, but it may be reduced to twenty years in certain cases, or extended to permit service until fifty-five years of age. For women, the initial term of service is normally for three years with no reserve obligation. Opportunities exist for re-engagement, and airwomen may qualify for superannuation.

Non-regular Air Forces.—The Non-regular Forces of the R.N.Z.A.F. are in the main manned by volunteer officers and airmen with wartime experience, by personnel with reserve obligations on the completion of regular service, and by airmen enlisted under the provisions of the Military Training Act. University students can qualify for commissions in the Territorial Air Force after undergoing their initial compulsory military training and further periods of training with the Regular Air Force during their long vacations. Women are enlisted in certain trades in a Territorial section of the W.R.N.Z.A.F. Members of the Territorial Air Force and the Active Reserve have an annual training commitment; members of the General Reserve have no training obligation, but are liable to be called up in the event of war.

The Air Training Corps provides a valuable source of recruits for the Regular Air Force and the training provided is a sound basis for further training under the Military Training Act. Annual flying scholarships provide training at the Central Flying School for selected cadets.

Recruitment.—Recruiting is effected through three area recruiting and reserve centres in New Zealand and through R.N.Z.A.F. Headquarters in London.

Operational Units: Regular Units.—Regular units comprise a maritime squadron stationed in Fiji, a fighter/ground attack squadron and a medium range transport squadron serving with the R.A.F. in Singapore, a second fighter/ground attack squadron at Ohakea, and a long-range transport squadron at Whenuapai. These squadrons are supported by operational conversion units.

Non-regular Units.—Non-regular units consist of four Territorial fighter/ground attack squadrons recruited in the four main centres, a Territorial maritime squadron recruited in the Auckland area, and the following task force ancillary units:

  • Two Light Anti-aircraft Squadrons.

  • Air Stores Park.

  • Aviation Fuel and Ammunition Park.

  • Mechanical Transport Light Repair Unit.

  • Repair and Salvage Unit.

  • Mobile Field Hospital.

  • Casualty Air Evacuation Section.

In addition, Territorial air defence units are established in Auckland, Wellington, and Christchurch for the control of air defence in those areas. Provision exists for the training of a fourth unit in the Auckland area, for deployment overseas in an emergency.

Training Establishments: Flying Training.—The initial training of all aircrew, Regular and Non-regular, is undertaken at the Initial Training School at Wigram. Regular aircrew graduate from I.T.S. to the Flying Training School after completing basic and officer training. Compulsory Military Training aircrew, during their I.T.S. training, are given aptitude tests to determine their suitability for flying training in the event of mobilization, and at the conclusion of their training are transferred to the reserve.

In addition to the I.T.S. and F.T.S., the establishment of Wigram includes the Air Navigation and Air Signals School and the Central Flying School.

Ground Training.—Boy entrants undergo a year's educational and general service training at the Boy Entrant School at Woodbourne. Other recruits, both Regular and C.M.T., receive fourteen weeks' initial training at No. 1 Trade Training School Hobsonville, No. 2 T.T.S. Wigram, No. 3 T.T.S. Taieri, No. 4 T.T.S. Woodbourne, or No. 6 T.T.S. Ohakea. C.M.T. airmen are then posted to the T.A.F. Supplement and do twenty days' training annually for three years either on a station or with one of the task force ancillary units, while Regular airmen proceed to trade training, either “on-the-job” or at one of the T.T.S.s.

Officer training is given at Whenuapai; the training of N.C.O.s and general service instructors and the initial general service training of airwomen are centred at Taieri.

Activities During 1955.—No. 14 Squadron, which was stationed in Cyprus from late in 1952, was transferred to Singapore in April 1955. Under the command of Headquarters, Far East Air Force, it forms part of the Commonwealth's strategic reserve in the area. It operates in the day fighter/ground attack role with squadrons of the R.A.F. and R.A.A.F. During the year it has taken part in a number of operations against the terrorists in Malaya.

No. 41 Squadron which moved from New Zealand to Singapore in May 1955, also forms part of the Commonwealth strategic reserve in the Far East. It operates in the medium range transport role and is engaged on transport and courier flights within the area. In addition, it takes part in operations in support of the ground forces in Malaya.

No. 5 Squadron, in Fiji, continued throughout the year to train in the maritime role and to provide search and rescue services in the area. Aircraft are detached as required from time to time to take part in combined exercises in the South-East Asia theatre.

Of the home-based squadrons, No. 75 is training in the day fighter/ground attack role. The formation of a fighter operational conversion unit early in 1955 relieved the squadron of responsibility for initial operational training, and it is currently engaged in advanced squadron training.

No. 40 Squadron operates in the long-range transport role and provides communications between New Zealand, the Far East, and the United Kingdom.

No. 42 Squadron operates as an internal communications squadron and also undertakes flights between New Zealand, Australia, and the Pacific islands. In addition, it carried out drogue-towing duties and the conversion training of pilots on to multi-engined aircraft.

The five Territorial squadrons (Nos. 1, 2, 3, and 4 day fighter/ground attack, and No. 6 maritime) attended annual camps early in 1956 and continued training in their respective roles throughout the year.

During the visit of the Duke of Edinburgh in December 1956 the R.N.Z.A.F. provided an aircraft and baggage party for the transport of the Royal party's baggage within New Zealand. A second aircraft stood by in case it was necessary to convey the Royal party over any stage of the tour.

In the summer of 1956–57 the R.N.Z.A.F. gave some administrative support to the American forces engaged in establishing bases in the Antarctic. A squadron of U.S. Navy aircraft was accommodated at Wigram, and No 63 Troop Carrier Wing of the U.S. Air Force, which operated from Harewood, occupied tented accommodation at Weedons.

Strength of the Air Force.—The strength of the R.N.Z.A.F. at 31 March 1956 was—

Regular Air Force4,363
Women's Royal New Zealand Air Force338
Territorial Air Force465 (incl. 28 airwomen)
Territorial Air Force (Supplement)3,771
Active Reserve1,101
General Reserve5,465

Air Force Expenditure.—The total expenditure of the Air Force for the year ended 31 March 1956 was £9,699,434. The comparable figure for 1954–55 was £9,748,932.

POST-WAR ARMED FORCES EMPLOYED OVERSEAS.—A brief summary of forces raised after the termination of hostilities in the Second World War and employed overseas is now given.

New Zealand Contingent of the British Commonwealth Occupation Force in Japan.—After the capitulation of Japan in August 1945 New Zealand agreed to join with the United Kingdom, India, and Australia in the despatch of a British Commonwealth Force to take part in the occupation of Japan. The objects of the British Commonwealth Occupation Force (B.C.O.F.) were to represent worthily the British Commonwealth in the occupation of Japan; to maintain and enhance British Commonwealth prestige and influence in the eyes of the Japanese; and to illustrate to, and impress on, the Japanese people, as far as was possible, the democratic way and purpose of life. The military role of B.C.O.F., under the direction of the Supreme Commander for the Allied Powers and within its allotted area, was: the safeguarding of all Allied installations, and of all Japanese installations awaiting demilitarization; the demilitarization and disposal of Japanese installations and armaments; and military control (which did not include military government).

The New Zealand component consisted of Army units and No. 14 Squadron, R.N.Z.A.F. Communication with New Zealand was maintained by No. 41 (Transport) Squadron, R.N.Z.A.F. The Army component served from 19 March 1946 to July-October 1948, with an earlier reduction in strength during 1947. The air courier service from New Zealand to Japan was in operation from March 1946 to June 1948. Further details of the New Zealand contingent of the B.C.O.F. in Japan may be found in the 1955 issue of the Year-Book.

New Zealand Armed Forces for Service in Korea.—As a result of an appeal from the Secretary-General, United Nations, for assistance in the operations in Korea, the Prime Minister announced on 29 June 1950 that units of the Royal New Zealand Navy would be made available for service in that area. Two frigates accordingly left New Zealand waters on 3 July 1950.

Army Personnel.—As a result of a further appeal from the United Nations for each member country to examine its capacity to provide more fighting forces, particularly ground troops, the Prime Minister announced on 26 July 1950 that New Zealand was offering to the United Nations a special volunteer combat force for service with other ground forces in Korea, the first force, comprising a regiment of artillery and ancillary units, leaving New Zealand in November-December 1950.

The history of the Force up to the signing of the Armistice is summarized in earlier issues of the Year-Book.

In the latter half of 1954, following the decision of the United States of America to withdraw part of its forces from Korea, the Commonwealth Division was also reduced.

As part of a co-ordinated plan, 16 New Zealand Field Regiment, which up to then had been New Zealand's main contribution to the United Nations ground forces, and ancillary units were disbanded. This left 10 Company Royal New Zealand Army Service Corps and a small Force Headquarters as New Zealand's contribution to the reduced force. In April 1957 it was announced that the remaining force, except possibly for a small liaison staff, would be withdrawn to New Zealand in the following few months.

New Zealand Frigates in Korea.—New Zealand's first contribution to the United Nations Naval Forces in the Korean area, the frigates H.M.N.Z.S. Tutira and Pukaki, sailed from Auckland on 3 July 1950. From then until the Cease Fire two frigates were maintained in the area, each serving approximately twelve months before returning to New Zealand.

From 3 July 1950 until the Cease Fire on 28 July 1953, New Zealand frigates steamed 339,584 miles and expended 71,625 rounds of ammunition. There were eight tours of duty involving all six of the Royal New Zealand Navy's frigates, and approximately half the Navy's strength (over 1,200 naval personnel) during this period saw Korean War service. A more detailed account of the activities of the ships will be found in the 1955 issue of the Year-Book.

After the Cease Fire. New Zealand's Naval contribution was reduced to one frigate in the area with a second immediately available but maintained in New Zealand where it could also be used for training duties. From February 1954 the frigate left in the area was placed under the administrative control of the Commander-in-Chief, Far East Station. Thus, while it still spent part of its time in Korean waters it also became available for routine duties as a unit of the Royal Navy's Far East Fleet. This has included anti-piracy patrols in North Borneo and anti-terrorist activities in Malaya.

Cyprus.—A fighter/ground attack squadron was stationed in Cyprus from the end of 1952 until March 1955 on training and garrison duties with the Middle East Air Force.

Malaya.—The Prime Minister announced in early 1955 that it was intended to recruit an Army Special Air Service Squadron for jungle warfare in Malaya. This squadron left New Zealand in November 1955 and, after completing jungle and parachute training in the theatre, joined its parent unit early in 1956 in an operational role. The New Zealand unit is in addition to the Royal New Zealand Air Force contribution comprising No. 14 Squadron, transferred to Malaya from Cyprus, and a half transport squadron, together with occasional training visits by maritime reconnaissance aircraft. The Royal New Zealand Navy continues to maintain a frigate in the area.

STRENGTHS OF THE ARMED SERVICES: South African War.—Approximately 6,500 troops from New Zealand served in the South African War.

First World War, 1914–18.—A total of 124,211 persons (including 91,941 volunteers) were called up for overseas and home service prior to 12 November 1918. Of these 100,444 proceeded overseas. This total comprises 98,950 troops serving with the New Zealand Expeditionary Forces in the European, Mediterranean, or Samoan areas; 550 nurses; and 944 others (including 211 British Army Reservists, 541 Naval personnel, and 192 Royal Flying Corps personnel). In addition, it was known that 3,370 (not included above) left New Zealand and enlisted in British and Australian Forces, while others (exact numbers unknown) are known to have joined Canadian and South African Forces.

At Armistice date in November 1918 New Zealand had over 56,000 troops overseas, and a further 10,000 were ready to embark or in training.

The troops provided for overseas service represented nearly 10 per cent of the total population of New Zealand in 1914 and over 40 per cent of the male population between the ages of twenty and forty-five years. These percentages do not take into account New Zealanders who served in the British or Australian Naval or Military Forces.

Second World War, 1939–45 and Post-war 1946–56.—Approximately 60,000 men volunteered for service in the New Zealand Forces in the Second World War before conscription was introduced in July 1940.

The net intake of men to the Armed Forces—i.e., exclusive of transfers between the Services and of re-entries—was 194,000, equivalent to 67 per cent of the male population between the ages of eighteen and forty-five years. In addition, approximately 10,000 women served in the Forces.

The following table shows the approximate strength of each of the Services from the outbreak of war in September 1939 at yearly intervals until March 1955 and also in August 1945, when hostilities ceased. The figures at July 1942 are also shown, as that month marked the peak for mobilization, there being 151,073 men in the Armed Forces at that time, representing approximately 43 per cent of the male population of military age.

As at 31 MarchNavyArmyAir ForceAll ServicesTotalFemale Personnel (Included in Previous Columns)
In New ZealandOverseas

* Exclusive of Territorial Force (or service equivalent) and Reserves.

† Not available.

1939 (September)1,32018,0001,48620,39241420,806 
19401,79129,3003,80827,6287,27134,89918
19413,57975,14810,21354,99733,94388,940202
19425,605109,38918,22882,20151,021133,2222,356
1942 (July)6,110124,77323,666104,49050,059154,5493,476
19437,657104,08733,77782,74062,781145,5217,302
194410,01872,66241,59555,03969,236124,2757,942
194510,41246,69835,00442,73149,38392,1145,609
1945 (August)10,46640,94231,57836,96246,02482,9864,632
19464,52814,1296,91819,2146,36125,5751,838
19471,6327,1643,6577,4105,04312,453577
1948*1,6574,7462,8966,4652,8349,299435
1949*2,2672,5683,0497,884498
1950*2,5113,0963,4959,102684
1951*2,6694,4023,50010,571645
1952*2,5255,9953,98512,505846
1953*2,8236,5584,62414,005957
1954*2,9155,9704,69113,576771
1955*2,8094,5714,76312,143798
1956*2,8324,3804,70111,913637

The establishment of the Emergency Reserve Corps in August 1940, consisting of (1) the Home Guard, (2) the Emergency Precautions Services, and (3) the Women's War Service Auxiliary, provided for the effective utilization of civilian personnel in the case of emergency. The Home Guard, which was constituted a part of the Defence Forces on 30 July 1941, reached its peak in April 1943 with a total strength of 124,194 men, while the total numbers involved in the Emergency Precautions Services at one stage reached 150,000. The New Zealand Naval Auxiliary Patrol Service commenced operations in December 1941, and attained its maximum strength of 463 ratings in August 1942. None of these figures is included in the table given.

CASUALTIES ON ACTIVE SERVICE.—The following table gives particulars of casualties suffered on active service by members of the Armed Forces in the wars, etc., listed. For the Second World War the figures shown for Navy and Air Force include New Zealand personnel serving with the Royal Navy and Royal Air Force respectively. Deaths and injuries due to accidental causes while on active service are included in the figures of deaths and wounded respectively. The number shown as “missing” refers to the number so classified at the end of the period quoted.

Deaths (Including Died as Prisoner of War)Wounded and InjuredPrisoners of WarWounded and Taken Prisoner of WarInternedMissingTotal

* At 4 August 1919 this total comprised 16,688 deaths, 41,315 wounded, and 1 missing.

South African War, 1899–1902228166    394
First World War, 1914–1918 (up to 12 November 1918)—
1 N.Z.E.F.16,30241,262356  8458,004*
Samoa2     2
Nurses13     13
      Totals16,31741,262356  8458,019
Second World War, 1939–45 (up to 31 December 1946)—
Navy57317054 3 800
Army6,79315,3246,6441,219 4630,026
Air Force4,1492555203223 4,979
Mercantile Marine110   123 233
      Totals11,62515,7497,2181,2511494636,038
Jayforce (up to December 1948)11     11
Korea (up to December 1954)—
Navy21    3
Army37791   117
      Totals39801   120

SUMMARY OF WARTIME ACTIVITIES OF ARMED FORCES.—In the following pages a condensed account of the wartime activities of the three armed services is given. A more detailed account is given on pages 203–206 of the 1950 issue of the Year-Book. Post-war armed forces raised for duties overseas are given earlier in this Section.

Army Expeditionary Forces.South African War: New Zealand supplied ten contingents for service during the South African War, comprising a total of 6,500 officers and men.

First World War 1914–18: Immediately the First World War of 1914–18 broke out an Expeditionary Force was despatched to Western Samoa and occupied those islands, while a larger force in the form of a mixed brigade was despatched to Europe. The latter force was, however, landed in Egypt, and took part in the defence of the Suez Canal. It gave a good account of itself in the desperate campaign on Gallipoli, and after being withdrawn to Egypt was expanded into a Division and a Mounted Brigade. The Division then went to the Western Front, while the Mounted Brigade continued to operate in Palestine. Both forces became famous for their military qualities, and took part in practically all the great actions of their respective theatres up to the Armistice, including Armentieres, Somme, Arras, Messines, La Basseville, Passchendaele, German offensive, Lys, Champagne, and British offensive.

A total of 98,950 troops left New Zealand for service with the New Zealand Expeditionary Forces, and, of these, almost 16,300 lost their lives on active service. In addition to the 98,950 of all ranks of the New Zealand Expeditionary Forces and 550 nurses, 944 British Army Reservists, British Naval Reservists, and others left New Zealand to rejoin their units in the United Kingdom or in a theatre of war. It is also known that 3,370 (not included above) left New Zealand during the period of the war and joined units of the British Forces or the Expeditionary Forces of other Commonwealth countries.

The tremendous amount of transport work involved in the conveyance of these forces to Egypt, France, Britain, Gallipoli, and Samoa was carried out with extraordinary success, not one New Zealand transport having been lost while conveying troops.

Second World War 1939–45—Middle East Theatre: Shortly after the outbreak of war with Germany on 3 September 1939 the 2nd New Zealand Expeditionary Force, consisting of an Infantry Division with numerous auxiliary units and its own base and hospital services, was formed.

This Force, which was commanded by Major-General B. C. Freyberg, V.C., left New Zealand in three Echelons, the First Echelon sailing on 5 January 1940 and proceeding to Egypt. The Second Echelon was diverted to England in May, and the 2nd Division was first concentrated in Greece in March 1941, a few days before the German invasion. In the Greece Campaign the Division fought severe rearguard actions at the Servia Pass, Katerini Pass, Platamon, and Peneios Gorge. The 6th Brigade was evacuated to Egypt, 4th and 5th Brigades to Crete. General Freyberg took command of all the forces in Crete, which included 7,150 New Zealanders, when the German airborne invasion began on 20 May. After a week of hard fighting, especially at Maleme and Galatos, the ill-equipped troops were forced to retreat across the mountains to Sphakia, where most were evacuated.

After reorganization and a period of training the Division took part in the campaign in Cyrenaica and the relief of Tobruk, in which it played a prominent part. Severe actions were fought at Sidi Rezegh, Belhamed, Capuzzo, and Gazala. Early in 1942 the Division moved to Syria. It returned to Egypt by a notable move of 900 miles in the height of summer to meet the German invasion of Egypt after the fall of Tobruk. During the summer of 1942 it fought costly actions at Minqar Qaim, Ruweisat, El Mreir, and Alam Haifa, and made an important contribution to the defence of Egypt.

On 23 October it was one of the assaulting Divisions in the decisive battle of Alamein. It then took part in the pursuit to Tripoli, fighting several actions en route, in the defensive battle of Medenine, and in the subsequent advance to Tunis, fighting severe actions at Tebaga Gap and Takrouna-Enfidaville. The campaign in Africa ended on 13 May 1943, with the surrender of all the Axis forces, and the Division returned to Egypt.

In September 1943 the Division moved to Italy and was constantly and heavily engaged until the end of the war. The most notable battles in which it took part were: Orsogna (Nov.-Dec. 1943), Cassino (Feb.-May 1944), the advance to Florence (July-Aug. 1944), Rimini (Oct.-Nov. 1944), Faenza (Dec. 1944), and the final Battle of the Senio and pursuit to Trieste (Apr.-May 1945). The German armies in Italy surrendered on 2 May 1945.

Total casualties in the 2nd New Zealand Expeditionary Force, Middle East and Pacific, were 6,793 deaths from all causes, 16,543 wounded, 7,863 prisoners of war (including 1,219 wounded), and 46 missing: total 30,026.

Pacific Theatre: A detachment of 2 officers and 30 other ranks occupied Fanning Island, to protect the cable station there, immediately on the outbreak of war and until relieved by United States troops in May 1942.

The 8th Brigade Group was despatched to Fiji in November 1940. It was reinforced by the 14th Brigade Group in January 1942, and became the 3rd New Zealand Division, which was relieved by United States troops and returned to New Zealand in July 1942. New Zealand officers and noncommissioned officers trained, and to a large extent commanded, the three Fijian Battalions and two Commandos which had distinguished service with American troops in Bougainville and other Pacific islands.

One New Zealand battalion garrisoned Tonga and a second one Norfolk Island.

The 3rd Division, under command of Major-General H. E. Barrowclough, moved to New Caledonia in November 1942, and in August 1943 to Guadalcanal. Under United States command it carried out successful amphibious operations on Vella Lavella, the Treasury Islands, and Nissan. Owing to man-power difficulties it was withdrawn to New Zealand in 1944 and disbanded in October, the personnel returning to industry or going to the Middle East to reinforce the 2nd Division. Casualties in the Pacific operations were 111 killed in action, 213 wounded, and 26 taken prisoner.

Royal New Zealand Navy.Second World War 1939–45: H.M.N.Z.S. Achilles, a light cruiser, took part in the Battle of the River Plate, the first occasion on which the New Zealand ensign was flown in action.

Achilles was thereafter employed in patrol and escort duties in New Zealand waters and in the Pacific under United States command. She was severely hit by a bomb off Guadalcanal on 5, January 1943, and sustained 21 casualties. She was paid off at Portsmouth on 21 September 1,943, and recommissioned on 23 May 1944. In the last months of the war she served in the British Pacific Fleet and took part in several bombardments of Japanese island positions.

H.M.N.Z.S. Leander, a light cruiser, was employed on patrol and escort duties in New Zealand waters until May 1940, when she sailed for the Middle East for escort duty in the Red Sea. While operating later in the Indian Ocean she sank the Italian raider Ramb I after a short action. Between June and September 1941 she took part in several actions off the Syrian coast, After Japan came into the war she was employed in the Pacific, and in the Battle of Kolombangara on 13 July 1943 was severely damaged, with 43 casualties.

H.M.N.Z.S. Monowai, armed merchant cruiser, was employed in patrol and escort duties in the Pacific and in New Zealand waters.

H.M.N.Z.S. Gambia, a light cruiser, was commissioned as a unit of the Royal New Zealand Navy by the officers and ship's company of the Achilles on 22 September 1943. After service in the North Atlantic she joined the British Eastern Fleet on 19 February 1944, and took part in all the major operations of that Fleet and of the British Pacific Fleet. She was present at the signing of the Japanese surrender in Tokyo Bay.

The 25th Minesweeping Flotilla was organized in April 1941. On 14 May 1941, while the flotilla was clearing a minefield in the Hauraki Gulf, the Puriri struck a mine and sank with 5 casualties. In December 1942 this flotilla came under American command. On 29–30 January 1943 the Kiwi and Moa sank a large Japanese submarine off Guadalcanal after a sharp action. The Moa was later sunk by air attack, with 21 casualties. In August 1943 the Tui took part in the sinking of another big submarine.

Forty minesweeping and anti-submarine vessels, 12 Fairmile launches, 16 harbour defence motor launches, and about 100 other motor boats served in the Royal New Zealand Navy in New Zealand waters, doing much arduous service.

New Zealanders in the Royal Navy: Approximately 7,000 New Zealanders served in the Royal Navy, the peak of 1,242 officers and 3,659 ratings being recorded in September 1944. They saw service in every type of ship from battleships and aircraft carriers to submarines and motor torpedo boats, and took part in notable actions and operations in every theatre of war. Deaths totalled 458, the heaviest casualty list being 148 New Zealand ratings and two officers lost when the cruiser Neptune was sunk in the Mediterranean on 18–19 December. 1941.

Total casualties among New Zealand personnel (Royal Navy and Royal New Zealand Navy) were 800, including 573 deaths.

Royal New Zealand Air Force.Second World War 1939–45: Until Japan came into the war the R.N.Z.A.F. was mainly concerned with escort and convoy duties in New Zealand waters and with training aircrews for service in the R.A.F.

Operational aircraft began to arrive from the United States in 1942, and eventually 26 squadrons were formed and saw service in the Pacific, under American command. They took part in offensive operations in the Solomons, on Bougainville, New Ireland, and against Rabaul, and carried out much supply dropping and convoy escort work and many anti-submarine patrols and survivor searches.

Ninety-nine enemy aircraft were shot down by R.N.Z.A.F. fighter squadrons and four by bomber squadrons. One submarine was sunk, many barges and small craft were destroyed, and 10,700 tons of bombs dropped.

Casualties in the R.N.Z.A.F. in the Pacific were 345 killed, 58 seriously injured, and 4 taken prisoner, 3 of whom died. In New Zealand 335 were killed, 100 died from natural causes, and 44 were injured.

New Zealanders in the Royal Air Force: Seven squadrons with a New Zealand identity and a majority of New Zealand personnel served with and as part of the Royal Air Force. They were 75 and 487 Bomber Squadrons, 489 Torpedo Bomber Squadron, 485, 486, and 488 Fighter Squadrons, and 490 Flying-boat Squadron.

All took part in very numerous operations and sustained and inflicted heavy losses.

The great majority of the 9,000 New Zealanders who served in the Royal Air Force were scattered in Royal Air Force squadrons, and there were some in every important operation carried out by the Royal Air Force. Their casualties were extremely heavy—3,267 killed, 128 seriously injured, and 571 taken prisoner. Of the 500 New Zealanders serving in the Royal Air Force on the outbreak of war in September 1939, 327 were killed and 8 died while prisoners of war.

New Zealand Mercantile Marine.—Five New Zealand merchant ships were lost by enemy action—the Awatea, 13,482 tons; Limerick, 8,724 tons; Hauraki, 7,113 tons; Komata, 3,900 tons; Holmwood 546 tons.

110 seamen were killed and 123 interned.

9 B—REHABILITATION

LEGISLATIVE, AUTHORITY AND ADMINISTRATION.—The Rehabilitation Act 1941 and its amendments made provision for the re-establishment in civil life of discharged servicemen and for the reconstitution of wartime industries on a peacetime basis. The Act provides for the constitution of a Rehabilitation Board and a National Rehabilitation Council. The principal function of the Council is to make recommendations to the Minister (after investigation) in relation to the re-establishment of discharged servicemen in civil life. Particular matters mentioned in the Act in this regard include the following:

  1. The reinstatement of discharged servicemen in civil employment or occupation:

  2. The necessary training required to qualify them for entry into civil employment and the granting of financial assistance during such training:

  3. The making of special arrangements concerning the passing of examinations, the completion of apprenticeships, or the obtaining of practical experience, etc.:

  4. The granting of financial assistance to discharged servicemen and to servicemen's widows to enable them to acquire homes and furniture, or to acquire land, stock, implements, tools of trade, etc., to commence any employment or occupation.

The Council consists of the Minister of Rehabilitation as Chairman, the members of the Board, and such other persons as the Governor-General may from time to time appoint. At 31 March 1956 the total number of members was twenty. The Board consists of the Minister as Chairman, the Director of Rehabilitation, the Secretary to the Treasury, the Managing Director of the State Advances Corporation, the Director-General of Lands, the Secretary of Maori Affairs, the Commissioner of Works, and five other persons appointed by the Governor-General. The general functions of the Board are to organize the establishment in civil life of discharged servicemen or servicemen's widows, and to co-ordinate and use the services available in departments of State and elsewhere for the carrying-out of its functions. The Board also determines the nature and extent of the assistance that may be granted to any class or classes of servicemen, and approves the granting of such assistance.

The Board has the assistance of District Rehabilitation Committees, which keep in touch with discharged servicemen and act in an advisory capacity concerning rehabilitation matters in their respective districts. The number of committees operating at 31 March 1956 was 9.

Other legislative measures for the purpose of rehabilitating discharged servicemen are the Land Act 1948 and its amendments. The Land Act 1948 contains provisions which enable the Land Settlement Board to give preference at ballots to discharged servicemen of the Second World War, and also to sell or grant a lease or licence to such a serviceman without public notice and without competition.

The Emergency Forces Rehabilitation Act 1953, re-enacting Part III of the Emergency Forces Act 1950 in an extended form, enables regulations to be made for the rehabilitation and protection of servicemen and the dependants of servicemen who have served overseas in connection with any emergency, whether a United Nations one or otherwise—i.e., includes service in Malaya as well as in Korea.

The Emergency Forces Rehabilitation Regulations 1953, made under the 1953 Act, extend to the widows, widowed mothers, and children of servicemen, and also make provision for the financial assistance of servicemen while serving. The Rehabilitation Board is to determine the nature and extent of the assistance to be granted in each case, within the limits prescribed in the regulations. The general provisions of Part I of the Rehabilitation Act 1941 and its amendments as to the Board and its powers are to apply except insofar as they are inconsistent with the regulations.

The Emergency Forces Occupational Re-establishment Regulations 1951 safeguard the rights of a worker in relation to his civil employment, in the event of his serving as a member of an emergency force raised in New Zealand or elsewhere in the Commonwealth in connection with a United Nations emergency.

Future of Rehabilitation Assistance and of the Organization.—Since 1947 the Rehabilitation Board has closely watched the demand for rehabilitation assistance, and as this demand has lessened steps have been taken to reduce and adjust the organization as at the time constituted. These adjustments have resulted in the closing of all except three departmental offices and cessation of operations at the Board's full-time training centres, with a consequent reduction of staff.

In 1953 the Government made certain decisions on the future of rehabilitation generally for ex-servicemen of the Second World War. It was considered that the provision of initial rehabilitation assistance had been substantially completed in all fields except land settlement and housing. The need for the 50 per cent preferential quota of State rental houses for ex-servicemen had diminished considerably, and no new applications were admitted after 31 March 1954 except in special circumstances.

There had been a very pronounced reduction also in the demand for education and trade training, and in view of the opportunity which had been offered over a long period to ex-servicemen it was decided that except in special circumstances no new applications would be accepted after 31 March 1954.

For other forms of assistance it was decided that these would continue and be reviewed during 1955. As a result of the review carried out last year the Government, in view of the continued reduction in the demand for assistance, has reached further decisions on the future availability of rehabilitation assistance generally for ex-servicemen of the Second World War.

The present policy for business loans provides that in general, and having regard to the time elapsed since discharge, loan assistance for establishment in business will be confined to cases where the proposition involved has been within the contemplation of the applicant and he has demonstrated his interest by gaining suitable experience and by saving to make a reasonable contribution to his establishment in the particular field. The very reduced demand from ex-servicemen who could be assisted within that policy indicates that any demand which can be construed as rehabilitation has been practically satisfied, and it was decided that the availability of initial business loans will terminate at 31 March 1958. This decision will apply to other assistance in the business field including sponsorship in licensed industries, import licences, overseas exchange, assistance in the acquisition of business sites, and general sponsorship in the business field.

The demand for assistance in housing has also reduced considerably and it would appear that the progress in this field over the past few years has substantially reduced the rehabilitation demand, and it has accordingly been decided to fix a tentative final date for the availability of initial housing loans for the purchase or erection of houses at 31 March 1958. This will also apply to such related assistance as supplementary interest-free loans, mortgage repayment insurance, loans for the purchase of sections, and rental concessions on Crown sections. As the date fixed is tentative only the whole position will be reviewed during 1957.

The reduction in demand for furniture loans indicates that the rehabilitation need for this form of assistance is practically satisfied, and these loans will not be available beyond 31 March 1958.

In line with the above decisions the Government has fixed tentatively a final date for all miscellaneous loans at 31 March 1958. The position here will be reviewed in 1957. The number of graded ex-servicemen still awaiting rehabilitation for land settlement assistance is such that a final date cannot be fixed for the continued availability of this form of assistance. No new applications for grading are now received from ex-servicemen of the Second World War.

Notwithstanding the continued lessening in the demand for rehabilitation assistance the work of attending to post-settlement problems will continue for a considerable time.

None of the above decisions setting time limits has any force in respect of:

  1. Members or ex-members of emergency or similar forces;

  2. Children of deceased and totally incapacitated ex-servicemen;

  3. Ex-servicemen whose rehabilitation may at any time be retarded or interrupted or become necessary from war disability.

Appropriate forms of assistance for these groups will continue under such terms and conditions as may be considered appropriate by the Rehabilitation Board from time to time.

In accordance with a decision by Government in 1956 the 50 per cent preferential quota of State rental houses was abolished as from 30 September 1956 and replaced by a 25 per cent preferential quota solely for ex-servicemen of the Emergency Forces. The decision provides, however, for a measure of preference over civilian applications to be accorded from 1 October 1956 to applications from—

  1. Widows with dependent children and orphaned children of deceased ex-servicemen in terms of the Rehabilitation Act whose death was directly or indirectly attributable to war service;

  2. Disabled ex-servicemen of the Second World War (40 per cent disability cases, present or future);

  3. Ex-servicemen under the Rehabilitation Act recently discharged from the forces provided the application is lodged within one year of discharge and the applicant is otherwise eligible;

provided that in all cases the applications are graded urgent and in the opinion of the Rehabilitation Board merit consideration.

During 1956 the following time limits were fixed also for applications for Rehabilitation assistance from ex-servicemen under the Emergency Forces Rehabilitation Regulations 1953 for farm training and settlement, tools of trade loans, State housing, education, and trade training:

  1. In the case of men discharged from the Emergency Forces or returned to New Zealand up to 31 March 1957, no application will be accepted after 31 March 1958.

  2. Where men have been discharged or returned to New Zealand after 31 March 1957 applications will be accepted only if lodged within twelve months of the date of discharge from the Emergency Forces or return to New Zealand, whichever is the earlier.

Special provisions exist to ensure that rehabilitation assistance will continue to be available to all ex-servicemen whose rehabilitation may at any time be interrupted or become necessary as a result of disability arising from service with the Emergency Forces.

The following components of the organization have been retained: Portfolio of Rehabilitation, Rehabilitation Board, and the Rehabilitation Council. Farming Sub-committees were absorbed into reconstituted Land Settlement Committees from 1 April 1954.

The Rehabilitation Committee organization has been replaced by one consisting of a limited number of district Rehabilitation Committees comprised of representatives of towns or communities within the respective district.

From 1 April 1954 the Rehabilitation Department ceased to function as a separate department and became a division of the Department of Internal Affairs. From this date it took the form of a Board Secretariat with regional representation now at Auckland, Wellington, and Christchurch.

TRADE TRAINING.—The “A” Class training scheme provided in a number of the building trades full-time intensive theoretical and practical indoor classes, followed by full-time advanced practical work under the supervision of the Board's Instructors. At the peak of the scheme full-time training in carpentry was in operation at twenty-one centres, and at some of these also in painting, bricklaying, and plastering. As the needs of ex-servicemen were substantially met it was decided that no further applications for training in the building trades in the full-time centres operated by the Board would be received after 31 January 1951, and that centres would cease to operate as the final classes of trainees undergoing training completed their courses. The final centre, at Gisborne, was closed in June 1953. The number of men who completed “A” Class training from the inception of the scheme to 31 March 1954 was 7,346.

During their period of advanced practical training, trainees were engaged on the construction of houses under the Government's housing scheme, and from a modest beginning in 1942 the output increased to the extent that the Rehabilitation Department became one of the biggest contractors for State houses.

In the earlier stages of the “A” Class training scheme provision was also made for the training of ex-servicemen in general engineering, welding, and the footwear-manufacturing industry.

The “B” Class scheme of training provides for contracts between employers and trainees and the Board for engagement and training over suitable periods in the employer's own workshop. The wages are subsidized by the Board at a gradually decreasing amount as the training progresses and the trainee's skill and productive value increases. With the closing down of the “A” Class training centres, “B” Class facilities are available to ex-servicemen who wish to learn a skilled trade.

Certain trades such as boot repairing, watchmaking, jewellery manufacturing, etc., are particularly suited to the needs of disabled men, and, so far as is reasonably possible, training in such vocations is reserved for ex-servicemen suffering from major disabilities.

Arrangements similar to those in regard to trade training have been made for the training of ex-servicemen with suitable educational background as clerical workers, and in a number of professions such as law, accountancy, surveying, architecture, and journalism.

The following table summarizes the result of the “B” Class training scheme up to 31 March 1956.

TradeUnder TrainingCompleted TrainingTotal
Carpentry39281320
Joinery28284
Plumbing23246269
Bricklaying23335
Painting and paperhanging4197201
Plastering87785
Other building trades 4141
Clerical and professional 435435
Engineering and metal trades2576578
Electrical trades3263266
Foodstuffs 114114
Footwear and leather trades 176176
Furniture trades5378383
Motor trades11450461
Other mechanical trades 4949
Printing199100
Retail trades1370371
Roof-tiling 66
Textile and clothing trades1174175
Miscellaneous trades 162162
    Totals1024,2094,311

The “C” Class training scheme caters for the resumption of apprenticeships interrupted by service. The Suspension of Apprenticeship Emergency Regulations 1944 and the Emergency Forces Occupational Re-establishment Regulations 1951 provided that an apprentice on reviving his contract should receive at least the apprenticeship rate of wages that he would then be receiving had his employment been continuous. If the expiry date of the contract (calculated on the basis of an apprenticeship of not more than five years) has passed, the employer is called upon to pay to the apprentice the final contract rate, and similar payment must be made if the apprentice has reached the age of twenty-one years and had at least twelve months' home service or has rendered military service overseas. Where a contract is revived after the original expiry date (five-year basis) has passed, or where the contract expires after revival, the wage is appreciably less than the journeyman's rate which would have been payable had the full contract term been served. As this is an obvious financial hardship arising directly from military service, the Board makes available a subsidy over and above the amount which the regulations require the employer to pay in order to bring the apprentice's wage up to the journeyman's rate. The Suspension of Apprenticeship Emergency Regulations were revoked by the Military Training Act 1949, which, however, preserved the rights and privileges of apprentices who had revived their apprenticeships under those regulations. At 31 March 1956. 2 ex-servicemen were undergoing training under this scheme, 3,407 had completed their training, and 371 had discontinued for various reasons.

DISABLED SERVICEMEN.—Apart from the Board's general forms of assistance which are available to these men, special training assistance continues to be provided on behalf of the Board by the Disabled Servicemen's Re-establishment League and the Blinded Servicemen's Trust Board.

The League provides training in trades particularly suited to seriously disabled men, and the Rehabilitation Board is prepared to subsidize wages of any such disabled men whose disabilities make institutional treatment necessary or preferable to training within industry. This assistance is valuable for the ex-serviceman whose disability prevents him from following his normal occupation.

The League also provides employment under sheltered conditions for ex-servicemen whose disabilities make them unemployable in the ordinary industrial life of the community. Here again the Rehabilitation Board is prepared to assist by subsidizing wages.

Since the League undertook this work on behalf of the Rehabilitation Board 504 men had completed their training by 31 March 1956. Fifty-two men were receiving training at that date.

The Blinded Servicemen's Trust Board was constituted in 1945 to provide training facilities for the wholly or partially blinded ex-servicemen and to promote their welfare. Many men have attended the training centre, “St. Dunstan's,” for instruction in additional techniques and new methods. The bulk of training has now been accomplished, and the Trust Board's activity is mainly concentrated on after-care of over 50 men located throughout New Zealand and the co-ordination of assistance available through State and private channels.

FARM TRAINING AND SETTLEMENT.—In its approach to the task of settling the servicemen on the land the Rehabilitation Board had the benefit of the experience gained from the operations of the Discharged Soldiers' Settlement Act 1915, and in framing its policy it has endeavoured, as far as possible, to avoid the pitfalls of the past.

The Board decided that the following basic principles should be applied in its land-settlement scheme for ex-servicemen from the Second World War:

  1. To make settlement facilities available only to fully experienced applicants.

  2. To give adequate training to those eligible applicants who were not fully experienced.

  3. To settle ex-servicemen on farms which should, under reasonable conditions, be capable of producing sufficient to maintain the property, provide a reasonable standard of living, and pay all other outgoings, including mortgage charges.

The Grading System.—The Board, in consequence of the above, decided that the qualifications of every farming applicant should be subjected to the closest scrutiny and that eligible applicants should be classified according to their ability.

  • GradeA”: Experienced men qualified for immediate settlement on farms of their own.

  • GradeB”: Partly experienced men in need of further training to fit them to take up and manage farms of their own.

  • GradeC”: Inexperienced men considered suitable for training with the intention that they should ultimately be established on farms of their own.

  • GradeD”: Not suitable for farm training or settlement.

The grading of applicants is the responsibility of Land Settlement Committees established under the Land Act 1948, and comprising the Commissioner of Crown Lands as Chairman and experienced private farmers and representatives of the State Advances Corporation or the Department of Maori Affairs. Twenty of these committees operate throughout the country, they having taken over the functions previously exercised by Farming Sub-committees. Provision is made for discharged servicemen from the Emergency Forces who were engaged continuously in farm employment prior to service, but otherwise only in special circumstances have new applications for farm gradings been accepted since 31 March 1951.

The Training Scheme.—For those eligible applicants who did not measure up to “A” Grade standard every facility and encouragement was given to them to obtain the experience necessary to enable them to operate farms on their own account successfully. The Rehabilitation Board made provision for subsidizing the wages of trainees in special circumstances.

Full-time tuition has been provided for student-trainees placed at Canterbury and Massey Agricultural Colleges. The majority of the men selected for these courses have had a background of practical experience, and short courses at the colleges have served a very useful purpose in giving the men an insight into the most up-to-date farming methods.

Full-time training on a special farm was provided for physically disabled ex-servicemen who had a rural background and in respect of whom there were prospects of ultimate successful settlement as farmers, although possibly in a different class of farming from that previously followed. The administration of the farm was in the hands of the Disabled Servicemen's Re-establishment League, while the wages paid to the trainees were subsidized by the Board. The farm ceased operations on 28 February 1953.

The following table shows the number of ex-servicemen settled and the number of ex-servicemen graded “A” awaiting settlement as at 31 March 1956.

Class of SettlementNumber
Settled on single units by Rehabilitation Loans Committee8,264
Settled on land settlement blocks by Rehabilitation Loans Committee2,794
Settled on land settlement blocks, financial adjustments yet to be made249
Employed by Department of Lands and Survey with promise of titles28
Settled on single units and blocks through Maori Rehabilitation Finance Committee133
Employed by Department of Maori Affairs on single units and blocks with promise of title16
Settled without rehabilitation assistance on freehold, Crown, and private leasehold properties1,048
Maori ex-servicemen assisted by Department of Maori Affairs under Maori Land Amendment Act 193689
      Total settled12,621
Number of “A” Grade ex-servicemen awaiting settlement1,155

The area of land acquired for the settlement of ex-servicemen up to 31 March 1956 was 1,971,072 acres. This area does not include particulars relating to those who have purchased established farms on their own account with rehabilitation assistance. Further particulars are contained in Section 18B. Particulars of financial assistance will be found under a later heading.

EDUCATION.—Educational facilities are provided by the Rehabilitation Board for ex-servicemen in the way of bursaries, payment of fees, book allowance, etc.

Full-time bursaries for study at New Zealand University Colleges and some private institutions and colleges include all tuition and examination fees, together with a book allowance limited to £5 per annum. Subsistence allowances for the academic period are also granted at the rate of £9 10s. per week for married men and £5 5s. per week for single bursars. For some courses at the agricultural colleges students are required to live at the colleges. In such cases their board and lodgings arc paid, and in addition allowances of £7 and £2 per week arc paid to married and single men respectively.

Assistance for part-time study at University Colleges, State institutions, and private institutions is also given, and consists of tuition and examination fees, plus an allowance for books.

It should be noted that these forms of assistance are granted in relation to career training only and not for purely cultural studies. In deciding the type of bursary and the period for which assistance will be granted, factors such as interruption to study through service, length and type of service in the Armed Forces, relation to pre-service career, and prospects upon qualification and suitability for the particular course of study, are all taken into account.

In certain cases bursaries are granted to enable an ex-serviceman to pursue a course of study overseas. These are only granted to men with long military service overseas and a serious interruption to study or career, or for courses of study which are not available in New Zealand A full overseas bursary usually includes subsistence allowance at the rate of £328 per annum sterling for married bursars and £250 per annum for single bursars, payable from the time of arrival in the United Kingdom until the earliest date a bursar can obtain a return passage to New Zealand after the completion of his course. Tuition and examination fees, refund for textbooks purchased up to £5 per academic year, tourist-class passages from and to New Zealand, voyage allowances at the rate of 16s. 5d. per day for married men and 5s. 3d. per day for single men, and reasonable travelling expenses in New Zealand and the United Kingdom (from home address in New Zealand to port of embarkation and port of disembarkation to place of study, with similar assistance on the return journey) are also payable.

Particulars of educational facilities granted to 31 March 1956 are contained in the following table.

FacilitiesEx-OverseasEx-Home ServiceTotal
Full-time assistance—
(a) In New Zealand3,3082833,591
(b) Overseas7468754
Part-time assistance14,0862,74216,828
Renewals—
(a) Full-time4,1782904,468
(b) Part-time22,2693,01425,283
Miscellaneous facilities2,8953513,246
      Totals47,4826,68854,170

Education and Career-assistance to Children of Deceased or Totally Incapacitated Servicemen.—In conjunction with the War Pensions Office, the Rehabilitation Board is also concerned with the education of the children of deceased servicemen whose deaths have been the result of war injuries, and of the children of ex-servicemen who through war disability are totally incapacitated for work. The responsibility for the education of these children through the primary and post-primary school stages is undertaken by the War Pensions Office. A bursary up to £60 per annum is available to eligible children attending post-primary schools. Assistance for education and career training after post-primary schooling is completed may be granted by the Rehabilitation Board, the assistance taking the form of tuition and examination fees and a contribution towards the cost of books. Where full-time study is approved, a subsistence allowance is payable, varying from £3 15s. per week to £5 5s. per week at the age of twenty-one years, with married male bursars being granted the same rate as ex-servicemen.

So that due encouragement is given to any children wishing to train for a worth-while trade or career the Board will, where necessary, consider a payment to bring their wages up to £5 net per week where required to live away from home or £3 15s. per week when living at home. Those twenty-one years of age and over, whether living at or away from home while engaged in career occupations not covered by apprenticeships, may be considered for a grant sufficient to bring their net wages up to £5 10s. per week.

FINANCIAL.—The following is a summary of loan limits and net interest rates applicable to the various types of loan granted by the Rehabilitation Board.

Type of LoanMaximum AmountRate of Interest

* Above these limits it is normal to ask the ex-serviceman to contribute on a £1 for £1 basis and, more recently, and in suitable cases, to ask for less than the £1 for £1 contribution.

 £Per Cent
(a) Tools of trade50Free
(b) Furniture100Free
(c) Business5004
(d) Farms—  
  Going concerns—
    Dairy5,000* 
    Sheep6,250*3
  Stock and plant only—
    Dairy1,5004
    Sheep or mixed2,5004
(e) House—
  New2,2003
  Existing1,8003

In the case of business, farm, and housing loans the interest rate for the first year is reduced to 2 per cent per annum. Supplementary and suspensory interest-free loans are available in the case of housing loans in appropriate cases. Both classes of loan are on a percentage basis. Supplementary loans, which are interest-free and repayable only in the event of the sale of the security, amount to 5 per cent of the reasonable cost with a maximum of £100 in the case of new houses, and for existing dwellings are 5 per cent of the approved value with a maximum of £90. Suspensory loans, also interest-free, relate to new houses only and are cancelled after a period of seven years provided the owner fulfils the required occupancy conditions. They are limited to 10 per cent of the approved cost with a maximum of £200.

Supplementary loans have also been made available in a number of farm loans, and the Land Amendment Act 1950 extended the suspensory loan principle to cases where ex-servicemen are settled, under the Rehabilitation Act, on Crown land after 1 November 1950. The suspensory loan in such cases is for an amount not exceeding the difference between the 1942 value and the current market value. Such a loan will not be enforceable as long as the purchaser resides personally on the land and farms it for his own use and benefit and fulfils the conditions of any prior mortgage to the Crown or to the State Advances Corporation.

Provided the purchaser fulfils these conditions the loan is discharged at the end of ten years. These suspensory loans were introduced consequent upon the passing of the Servicemen's Settlement Act 1950, which provided that the value of land for the purposes of that Act was to be the current market value instead of the 1942 value.

Particulars of the various classes of loan authorized during the year ended 31 March 1956, and the totals to 31 March 1956, are as follows.

Class of LoanYear Ended 31 March 1956Totals to 31 March 1956
NumberAmountNumberAmount
  £ £
Purchase of farms, etc.4524,545,18111,05861,947,219
Housing2,5204,930,76551,70572,214,904
Tools of trade51451,47748,786
Furniture86683,59262,0405,814,788
Business151113,36911,3257,354,305
Miscellaneous2400666131,707
      Totals3,9969,673,452138,271147,511,709

Rehabilitation expenditure (including loan authorizations) for the year ended 31 March 1956, together with the totals to 31 March 1956, was as follows.

£

ItemTo 31 March 1955 From OutsetYear Ended 31 March 1956To 31 March 1956 From Outset
Administration expenses, including advertising and publicity3,096,25154,4243,150,675
Educational facilities, including books, tuition fees, and subsistence allowance1,731,90310,2951,742,198
Trade training—
  Grants to Disabled Servicemen's Re-establishment League274,25913,488287,747
  Land and buildings for trade training schemes, Disabled Servicemen's Re-establishment Leagues, etc.276,5711,593278,164
  Motor Vehicles purchased for trade training centres12,429 12,429
  Plant and equipment for hostels, etc.7,987 7,987
  Private firms and Disabled Servicemen's Re-establishment League (includes subsidies to employers and separation allowances)1,514,71823,1791,537,897
  Purchase and establishment of artificial-limb factories31,56213331,695
  Therapeutic employment for ex-servicemen25,302 25,302
  Tool store (cost of tools for resale to ex-servicemen tradesmen)156,971 156,971
  Trade training centres operated by Rehabilitation Department (includes establishment and operational charges, trainees' wages, separation allowances and travelling expenses, tools, plant and equipment)5,860,264 5,860,264
  Training of blinded ex-servicemen103,0823,250106,332
Farm training and settlement (excluding loans)—8,263,14541,6438,304,788
  Farm training, including fees and subsistence allowance at approved agricultural colleges and training farms and subsidy to approved employers484,641 484,641
  Purchase of lands for settlement, development, and other expenses in connection therewith (excluding £20,765,229 recovered from Rehabilitation Loans Committee and appearing under “Loans”)29,675,81,116,72130,792,573
Loans—30,160,4931,116,72131,277,214
  Interest concessions5,402,934852,9576,255,891
  Loans authorized (Maori Rehabilitation Finance Committee)1,832,934239,2162,072,150
  Loans authorized (Rehabilitation Loans Committee)137,838,2579,673,452147,511,709
  Reserve Fund contributions1,898,435115,4422,013,877
  Small Farms Act leases; Losses and interest concessions55,327 55,327
  Suspensory loans (Maori Rehabilitation Finance Committee)56,6452,96059,605
  Suspensory loans (Rehabilitation Loans Committee)3,309,458483,9353,793,393
  Earthquake damage insurance 258258
Grants—150,393,99011,368,220161,762,210
  Rehabilitation allowances431,885 431,885
  Special grants to ex-servicemen105,813491106,304
  Special grants to Returned Services' Associations56,4075,63462,041
  Travelling expenses of ex-servicemen, including fares, furniture removals, and loss of earnings42,30830442,612
 636,4136,429642,842
Plans and specifications, including plan service4,039 4,039
Other items5,670 5,670
      Totals194,291,90412,597,732206,889,636

Business Assistance for Ex-servicemen.—In addition to the loan facilities available to assist ex-servicemen in purchasing existing businesses, or in establishing new businesses, special assistance has been given to ex-servicemen requiring licences for licensed industries and trades, and also in obtaining stocks, plant, and equipment which may be in short supply or subject to control.

The following table shows the main classes of business for which loans have-been granted up to 31 March 1956.

TypeNumberAmount
  £
Butchery262226,912
Grocery, general store770677,151
Bakery, dairy, refreshment rooms478335,508
Stationery, fancy goods132100,394
Radio dealer, electrician281157,226
Hairdresser, tobacconist14075,015
Bootmaker16957,649
Chemist3944,380
Manufacturing business341226,274
Eggs, poultry, etc.4427,673
Milk rounds373311,670
Hotels, guesthouses4447,788
Fishing ventures12079,384
Agricultural contractors453326,536
Taxi, service car, and transport2,3801,315,922
Carrier and mail contractors1,4151,071,096
Building and related trades1,362663,905
Mechanical trades524358,220
Professional services1,045538,055
Miscellaneous952688,712
Additional advances 24,835
      Totals11,3257,354,305

Housing.—Owing to the prevailing housing shortage, the housing of ex-servicemen has been one of the Rehabilitation Board's main problems. Assistance in this connection consists of a certain priority in the allocation of State rental houses, and provision of finance for the erection of new, and the purchase of existing, dwellings.

During the year ended 31 March 1956, 199 State rental houses and fiats were allocated to ex-servicemen, making a total allocation to 31 March 1956 of 18,104.

The number of loan authorizations for the erection of new homes during the year ended 31 March 1956 was 1,408, making a total of 23,368 to 31 March 1956.

Loans for the purchase of existing dwellings were authorized in 1,112 cases in 1955–56, while the total up to the end of that period was 28,337.

MAORI REHABILITATION.—The following table gives particulars of assistance afforded to Maori ex-servicemen up to 31 March 1956. Maoris are entitled to the same assistance under the same general conditions as Europeans, although special measures have been provided to meet their particular needs.

At 31 March 1956, 5,338 Maori ex-servicemen had been demobilized, of whom 3,937 had served overseas.

Type of AssistanceNumber of Ex-servicemenAmount Authorized£
Loans—
  Farm181947,511
  Housing9621,385,473
  Furniture1,35433,577
  Business24206,083
  Tools of trade611,983
  Miscellaneous628,212
      Totals, loans2,8622,582,839
Educational assistance153 
Trade training—
“A” Class673 
“B” Class59 
“C” Class8 
“D” Class65 
“F” Class3 
      Total, trade training808 
Farm training279 
      Total number assisted4,102 

In addition, 89 ex-servicemen have been settled on farms under the Maori Land Amendment Act 1936 and 36 ex-servicemen have received housing assistance under the Maori Housing Act 1935.

DEMOBILIZATION.—Demobilizations as recorded by the Rehabilitation Division for the year 1955–56 numbered 408, the total to date being 215,289.

Chapter 10. SECTION 10—EXTERNAL TRADE

10 A—GENERAL

DATA regarding the overseas trade of New Zealand have special significance in view of the country's particularly high degree of dependence upon its external trade. The information in this and the two following subsections gives an outline of the external trade of New Zealand. This does not include, however, the Cook Islands and Niue, which, though constitutionally part of New Zealand, arc treated separately for trade statistics purposes, nor does it include the Trust Territory of Western Samoa. For more detailed data relative to the external trade of the territories comprising the New Zealand currency area the reader is referred to the following publications:—

  • “Statistical Report on the External Trade of New Zealand, Part A, Exports; Part B, Imports”—published annually by the Customs Department.

  • “Report on and Analysis of the External Trade Statistics of New Zealand”—published annually by the Department of Statistics.

  • “Trade, Commerce, and Shipping of the Territory of Western Samoa”—published annually by the Administration of the Trust Territory.

  • “Reports on the Cook, Niue, and Tokelau Islands”—New Zealand Parliamentary Paper A. 3.

  • “Report on Western Samoa”—New Zealand Parliamentary Paper A. 4.

Some information is also included in Section 43 of the Year-Book dealing with Island Territories.

In the subsections dealing with exports and imports, information is given regarding the nature of the transactions which are included in the trade statistics, there being particular inclusions and exclusions which require to be considered when using the figures.

Of considerable consequence in the use of external trade statistics are the methods used in valuing the commodities comprising the trade. In New Zealand it has always been the practice to record exports at free-on-board (f.o.b.) values, except during the Second World War when a departure from this procedure was effected in respect of wool exports. Wool was valued for export at the appraisal prices and as the prices later realized were higher than the appraisal prices, and New Zealand shared in this profit, export values for the years concerned were understated.

Up to the end of 1951 imports were recorded on the basis of their value for Customs purposes, this being their current domestic value (c.d.v.) in the country of export at the time of shipment, plus 10 per cent. For several years the limitations of this basis of valuation for economic studies, particularly those relating to balances of trade and of payments, had been apparent. There was a tendency generally to regard the Customs value of imports as being equivalent to at least a conventional c.i.f. value—(cost including freight and insurance). In fact the Customs value of all imports probably fell short of the actual c.i.f. cost by varying amounts ranging up to 10 per cent. The domestic and export price levels in the exporting country may differ on account of price controls, subsidies, etc., while external packing, railway freights, etc., generally tend to raise the f.o.b. cost of goods above the current domestic price. For some few types of commodities the 10 per cent allowance is more than adequate to cover insurance and freight charges. For a larger proportion of imports, particularly those where the value relative to weight or bulk is low, the allowance is inadequate to cover these costs.

As from 1 January 1952 a change was made in that imports were recorded in the trade statistics without the additional 10 per cent required for duty purposes—i.e., at current domestic value, generally, as indicated above, equivalent to but not identical with the f.o.b. cost. Provision was also made to record statistical class totals and the grand total of imports on the c.i.f. basis. Since the introduction of the Standard International Trade Classification in 1955, division totals have replaced class totals but all totals are still given on the c.i.f. basis. A description of the changed classification appears later in this Section.

The proportional difference between the two figures of valuation now made available—viz., c.d.v. and c.i.f.—will vary from period to period depending on (1) the make-up of imports in the different periods, (2) differential changes in import prices and in freight rates, (3) differences between domestic and export prices in the exporting countries, and (4) price fluctuations between dates of purchase and of shipping. The relatively high freight rates and insurance charges in wartime resulted in c.i.f. costs rising considerably above Customs values. The high charter freights of 1951–52 had a similar effect. In all the tables imports arc now shown at c.d.v., unless otherwise specified in respect of particular tables.

Up to the end of 1948 the processing of New Zealand trade statistics was performed by manual clerical means. Since that date mechanical methods have been used. Monthly summaries of the principal items of exports and imports are prepared and passed to the Department of Statistics which publishes this information in the Monthly Abstract of Statistics. The exports recorded relate to goods on vessels which have cleared their final port of call in New Zealand during the period, save that, to facilitate the flow of work through the Customs Department's accounting machines, the figures for each month are in fact closed off before the end of the calendar month. Although what is published as a calendar month's transactions is not precisely the month's operations, the omissions at the end of the month are balanced by the amount carried forward from the end of the previous month. As the whole of the holiday period at Christmas and New Year is included in the January accounting period the figures for that month are usually low. As the goods loaded on a vessel for export are not recorded as exported until the vessel actually departs from New Zealand it is possible for portions of the cargo, which have been loaded at ports along the coast, to have been on board the vessel for some time before actually being recorded as exports.

The trade figures for imports are compiled from the import entries, either for home consumption or into bonded warehouse, passed by the Customs Department. Under the system in use it is possible for an importer to pay the duty involved, if any, and have the import entry passed very shortly after he receives the shipping documents; this enables him to take delivery of the goods on arrival. Thus the import may be recorded before the carrying vessel has reached New Zealand. Generally, however, the import entries are not passed until the goods are available for discharge from the wharf. On the other hand, it may sometimes occur that goods may have been unloaded and in the custody of a Harbour Board for some time before the importer has the entry passed (and the import is recorded) and takes delivery.

New Zealand trade statistics arc compiled on a calendar year basis. Special tables are, however, prepared to show the values of trade during years ended 31 March and 30 June. The Government financial year ends on 31 March, and external trade tables drawn up for that period show the relationship between the trade transactions and the public accounts for the year. In New Zealand the farm production year fits reasonably well to the year ended 30 June and trade statistics compiled for years ended 30 June accordingly include the export values of a whole season's production from the pastoral and agricultural industries.

In the following table are given the values of the export and import trade for years ending 31 December, 31 March, and 30 June. From 1929 until 20 August 1948 New Zealand currency was at a discount on sterling. Accordingly, valuations in both currencies are given for the earlier years shown in the table. The movement of specie is not included in these figures.

£(000)

YearExports f.o.b.ImportsExports f.o.b.Imports
c.d.v. + 10 Per Centc.d.v.c.i.f.c.d.v. + 10 Per Centc.d.vci.f.
New Zealand CurrencySterling Currency
YEAR ENDED 31 DECEMBER
1946101,30271,57165,065 81,04257,25752,052 
1947129,420128,641116,946 103,536102,91393,57 
1948147,821128,534116,849 125,375110,926100,342 
1949147,281120,033109,121 147,281120,033109,121 
1950183,752157,943143,585 183,752157,943143,585 
1951248,127206,534187,758 248,127206,534187,758 
1952240,561 229,447276,215240,561 229,447276,215
1953235,860 163,613192,180235,860 163,613192,180
1954244,466 213,155245,820244,466 213,155245,820
1955258,850 250,661287,134258,850 250,661287,134
1956275,134 235,425268,564275,134 235,425268,564
YEAR ENDED 31 MARCH
194688,97657,00351,821 71,18145,60341,457 
1947107,51881,73374,303 86,01465,38659,442 
1948140,139138,306125,733 112,112110,645100,586 
1949148,288119,435108,577 134,819108,84198,946 
1950154,603134,825122,569 154,603134,825122,568 
1951197,173152,358138,508 197,173152,358138,507 
1952248,820246,901224,456 248,820246,901224,455 
1953238,413 198,713240,725238,413 198,713240,725
1954242,817 173,308201,915242,817 173,308201,915
1955235,008 226,769259,773235,008 226,769259,773
1956278,338 245,692281,455278,338 245,692281,455
YEAR ENDED 30 JUNE
194691,00462,66256,966 72,80350,13045,573 
1947122,07590,96082,691 97,66072,76866,153 
1948146,634146,843133,494 117,307117,474106,795 
1949149,069110,492100,447 144,926107,10797,370 
1950162,040140,748127,953 162,040140,748127,953 
1951207,708164,902149,911 207,708164,902149,911 
1952254,000272,303247,548 254,000272,303247,548 
1953244,123 171,592208,224244,123 171,592208,224
1954241,829 182,080210,130241,829 182,080210,130
1955239,747 241,639277,211239,747 241,639277,211
1956267,921 241,782276,848267,921 241,782276,848

TRADE PER HEAD.—The next table shows the value of exports, imports, and total trade per head of mean population. Values are expressed in terms of New Zealand currency.

YearExportsImportsTotal Trade

* From 1952 valuation of imports at c.d.v. In previous years these were valued at c.d.v. plus 10 per cent.

† Provisional.

 £s.d.£s.d.£s.d.
193529159234115308
19363607281116426
19374119235657757
193836683491070166
1939351211306665195
194045092918674193
194141763021171105
1942491163216118285
194343189584710234
19444619752379932
194548353210280137
194657116401369850
19477119571109143102
1948801157012150127
1949781396427142164
1950965082148178198
1951127811061023391
19521201031141811*23592*
19531152579172194197
19541161311101150218811
1955121041173923841
195612620107164233184

When compared with the value of trade per head of population in other countries, the New Zealand figures take a leading place. There are difficulties in the way of making precise comparisons with the values of trade in other countries, mainly on account of differing methods of valuation used. In the following table, however, New Zealand's position is shown in comparison with the main countries with which trade is conducted. The source is a United Nations publication providing data on trade values using the c.i.f. basis for the valuation of imports. For comparative purposes the c.i.f. basis has been used to value New Zealand imports, and therefore the figure given below as a value for New Zealand trade per head of population exceeds that given in the last table.

VALUEOF TOTAL TRADE PER HEADOF MEAN POPULATION 1955

£(stg.)

CountryTotal External Trade Per Head
Iceland294
New Zealand255
Belgium-Luxemburg218
Canada210
Switzerland201
Netherlands196
Sweden183
Norway180
Denmark180
Hong Kong167
Malaya154
Australia143
Venezuela139
United Kingdom131
Finland131
Republic of Ireland108
German Federal Republic85
France78
United States of America58

VISIBLE BALANCE OF TRADE.—In the early days of New Zealand overseas trading the value of imports regularly exceeded that of exports. The impetus given to the export trade by gold production in the 1860's was accompanied by increased imports, and it was not until the export trade was boosted by the introduction of refrigeration for the carriage of meat that exports were built up to a value to exceed imports. From 1885 onwards there have been few years in which an unfavourable trade balance has been shown. As was explained earlier, from 1952 onwards imports have been recorded for statistical purposes at c.d.v. only, but action was taken also to record the c.i.f. valuation of the total import trade. Accordingly a refinement can be introduced from that date which shows the visible balance of trade in a more realistic light. In the following table the valuation of imports used is c.d.v. plus 10 per cent (which is the valuation on which customs duties are paid), up to 1951, and c.i.f. for the subsequent years.

£(000)

YearVisible Excess of Exports

* Excess of imports.

† As from 20 August 1948 New Zealand currency was appreciated to parity with sterling.

‡ Provisional.

 N.Z.Stg.
193612,49310,035
193710,5538,476
19382,9542,373
19398,6626,929
194024,74319,795
194118,31214,650
194227,42921,943
1943-23,380*–18,704*
1944- 8,610*–6,888*
194526,54321,234
194629,73123,785
1947779623
194819,28714,449
194927,24727,247
195025,80925,809
195141,59441,594
1952–35,655*–35,655*
195343,63043,680
1954–1,354*–1,354*
1955–28,284*–28,284*
19566,5706,570

NOTE.—The 1942–45 figures included imports of lend-lease supplies which did not involve normal transactions in monetary exchange (being cancelled by reciprocal aid provided in New Zealand). To show the true balance of trade they should be eliminated, giving approximate export surpluses for the four years as follows (New Zealand currency): 1942, £38,000,000; 1943, £4,000,000; 1944, £13,000,000; 1945, £34,000,000.

Visible trade is not the only factor to be taken into account in considering the balance of payments between countries. Debt services, capital transfers, charitable and other personal remittances, freight payments, insurances, tourist expenditure, and the like, are vitally important factors which frequently reverse a credit visible balance of trade into a debit balance of payments. A statement of New Zealand's overseas receipts and payments is given later in this Section.

DIRECTION OF TRADE.—The progress which has been made in the economic development of New Zealand in the course of the last century has resulted in considerable change in the geographical distribution of its trading. In the early years of the colony almost all trade was with Australia, but in the 1850's direct trading with the United Kingdom developed. There has been a gradual spreading of the trade until today there are some exports to almost every country in the world, although the bulk of export trade is still concentrated in a few countries.

Since the Second World War the most noticeable feature in the changing pattern of New Zealand's overseas trade has been the resurgence of trade with the European countries. Separate tables are provided in the next two subsections showing the proportions of export and import trade with the main countries during the last ten years. In the following table, however, is illustrated the general changing pattern of the geographical distribution of New Zealand's overseas trading since the Second World War.

Per Cent

YearUnited KingdomOther Commonwealth CountriesEuropean CountriesOther Countries

* Provisional.

Proportions of Export Trade
194670.3511.467.6710.52
194776.667.508.407.44
194873.306.6014.145.96
194973.386.0515.235.34
195066.446.2715.7011.59
195157.577.4020.7914.24
195265.336.7212.7015.25
195367.216.0916.1810.52
195466.986.8318.158.04
1955*65.527 1619.457.87

Per Cent

YearUnited KingdomOther Commonwealth CountriesEuropean CountriesOther Countries
Proportions of Import Trade
194647.7729.722.0120.50
194742.7630.535.6721.04
194852.4127.215.2315.15
194955.1326.004.1714.70
195060.0622.544.0613.34
195153.5924.736.8414.84
195254.9121.269.4114.42
195356.4524.927.8810.75
195456.6323.937.7111.73
195554.9923.718.5712.73

The following table shows for the year 1955 the values of merchandise exports to, and imports from, each of the principal countries trading with New Zealand. Exports are valued f.o.b. New Zealand ports, and imports at current domestic value in country of shipment and in country of origin. The New Zealand trade statistics will yield different results, in respect of its trade with any given country, from those obtained from the trade statistics of that country, since in the latter New Zealand's exports will in most cases be valued c.i.f. in the given country and New Zealand's imports f.o.b. in that country.

These systems, however, are not universally used, and the methods of valuation in any particular country with whose trade statistics any comparison is attempted must be considered separately.

TRADEBY COUNTRIES, 1955

£(N.Z.)000

CountryExports*Imports
New Zealand ProduceTotalBy Country of PurchaseBy Country of Origin

* Provisional.

United Kingdom169,137169,610140,540137,831
Bahrain 82,8592,864
North Borneo114357
Ceylon93932,5062,506
Malaya6606784,4224,429
Hong Kong1071101,049994
India1,9091,9133,2073,235
Pakistan23244545
Sarawak1110054
Ghana8181450557
Kenya and Uganda1818226230
Rhodesia-Nyasaland Federation1741746364
Tanganyika44173184
Union of South Africa464468881956
Bahamas122123  
Barbados184184 1
Bermuda223223  
British Guiana91911925
Canada4,0054,0118,3688,360
Jamaica626626203203
Trinidad and Tobago744745157163
Australia6,1006,71331,42130,478
Fiji8821,0701,7681,722
Gilbert and Ellice Islands5468110121
Nauru3856529626
Tonga2742986766
Western Samoa541613331329
Other Commonwealth countries1081237911,184
    Totals, Commonwealth countries186,664188,127200,328197,284
Republic of Ireland1661661416
Austria2626544561
Belgium and Luxemburg4,6104,6142,2562,368
Czechoslovakia1,6651,665271284
Denmark385387385426
Finland4949211215
France15,22815,2301,8011,939
German Federal Republic12,60612,6276,5096,868
Germany, Eastern117683
Greece45445423
Italy4,7144,7161,1311,191
Netherlands4,4904,4942,4122,411
Norway110112765792
Poland2,7022,70214
Portugal4545292302
Spain14514598144
Sweden4544562,2172,259
Switzerland4224271,4591,569
Russia (U.S.S.R.)2,1662,166839
Burma929278
China15215299289
Indonesia  4,5914,634
Iran  356870
Iraq11121126
Japan1,9772,0052,4962,524
Philippines2052052931
Korea, Republic110110  
Saudi Arabia1212562504
Belgian Congo10810823
Egypt35335312
French Morocco666657
Brazil  4389
Chile22 105
Colombia175175  
Mexico145145111
Netherlands Antilles274274959956
Panama243243  
Peru  148150
United States of America15,02915,08620,21921,305
American Samoa111115  
Hawaii13013024 
Society Islands1942331510
Remaining countries139143203279
    Totals, other countries69,95670,13250,33353,377
Ships' stores72591  
    Grand totals256,692258,850250,661250,661

Attention is drawn here to changes made in the list of countries used in the recording of New Zealand trade statistics in 1955 concurrently with the introduction of the Standard International Trade Classification. Major changes consisted of breaking down several country titles used in the past to their several constituent parts—e.g., British West Africa is now treated under the separate headings of Gambia and Sierra Leone, Ghana, and Nigeria; British West Indies is now treated under the headings of Bahamas, Barbados, Jamaica, Leeward and Windward Islands, Trinidad and Tobago; British Borneo is now treated under the headings of Brunei, Sarawak, and North Borneo. It is accordingly not possible in all cases to make comparisons between country trade data for 1955 and earlier years. In the cases of the countries mentioned above it is necessary to add together the 1955 figures for the separate units to make a comparison with 1954, and no data are available to give an earlier comparison with the trade of a separate unit comprised in one of the older headings used.

The progress of, and the trends in the direction of, New Zealand's overseas trade are illustrated by the following diagram. Among the features portrayed are New Zealand's dependence on the United Kingdom as a market for its exports, and the huge expansion in the values of both exports and imports in the post-war years, despite the deflationary effect of the appreciation of New Zealand currency in 1948.

The next table shows the values of New Zealand's trade with the various currency areas during the last five years. In this table imports are valued on the c.d.v. basis.

£(000)

YearExports (Excluding Ships' Stores)Imports
According to Country of OriginAccording to Country of Purchase

* Provisional.

Sterling Area
1951152,309141,603145,066
1952170,819166,810171,941
1953170,459130,929132,812
1954177,356167,459169,721
1955184,367*189,051192,081
Dollar Area
195138,40323,27322,756
195233,49029,81528,827
195322,43015,08914,615
195418,06922,52421,498
195520,129*29,72028,651
O.E.E.C. Countries
195142,17012,85511,445
195227,73921,92619,774
195334,53612,55611,976
195439,39918,08117,557
195544,305*21,76620,837

£(000)

YearExports (Excluding Ships' Stores)Imports
According to Country of OriginAccording to Country of Purchase

* Provisional.

Other Countries
195114,40210,0268,491
19527,49210,8978,905
19537,7305,0394,210
19548,9755,0914,379
19559,458*10,1249,092
All Countries
1951247,285187,758187,758
1952239,540229,447229,447
1953235,154163,613163,613
1954243,799213,155213,155
1955258,259*250,661250,661

OVERSEAS RECEIPTS AND PAYMENTS.—Since the institution of exchange control in New Zealand it is possible through the records of the Reserve Bank, which administers exchange control, to give a detailed statement of the foreign exchange transactions of the country.

The first table shows, in summary form, figures relating to overseas receipts and payments for the last ten years, for the quarter ended December 1953 and for each of the quarters of the three latest years. The figures relate to the whole of the New Zealand currency area, which includes the island territories and Western Samoa.

£N.Z.(000)

ReceiptsPaymentsSurplus (+) or Deficit (–)
ExportsTotal (Including Other)ImportsGovernment Debt and Other ServicesOther PaymentsTotal
PrivateGovernment

NOTE.—New Zealand currency was raised to parity with sterling on 20 August 1948.

Calendar year—
  1947129,045164,521115,19056,39818,881190,469–25,948
  1948145,270174,808108,18946,57925,232180,000–5,192
  1949139,203158,734109,65728,42627,140165,223–6,489
  1950194,786213,576140,81622,0386,40629,861199,121+14,455
  1951254,135276,134201,29318,91611,07828,790260,077+16,057
  1952216,133245,362200,06030,2908,21330,240268,803–23,441
  1953243,469266,318170,47327,06414,31528,297240,149+ 26,169
  1954221,154271,284217,64720,21217,22232,800287,880–16,596
  1955253,081294,105246,36220,68217,78635,812320,642–26,537
  1956282,112324,333229,68027,09812,85645,827315,462+ 8,871
Quarter ended—
  1953—Dec.59,04564,57350,3616,6492,7047,37467,088–2,515
  1954—March77,12891,91244,9756,2195,9775,82262,994+ 28,918
  June66,89376,84949,1824,7372,3738,83265,123+ 11,726
  Sept.38,25044,80961,3344,3744,0978,92678,732–33,922
  Dec.38,88357,71462,1564,8824,7759,21981,031–23,317
  1955—March72,28885,79159,4806,8513,0327,35276,715+ 9,076
  June70,55785,41459,4623,6846,9359,50279,583+5,831
  Sept.56,87060,30561,8154,5423,0209,72479,101–18,796
  Dec.53,36762,59565,6045,6054,7999,23485,242–22,647
  1956—March92,556101,33655,2138,4543,15313,72880,549+ 20,787
  June78,63190,27256,0085,8481,95811,02274,837+ 15,436
  Sept.52,70562,61758,5916,8583,44510,85879,752–17,136
  Dec.58,22070,10859,8695,9374,30110,21880,324–10,216

It is not practicable to give comparable figures for earlier years in respect of all the items listed in 1950 and subsequent years following the adoption of a revised classification from October 1949.

The next table, also drawn from Reserve Bank statistics, gives summarized foreign exchange transactions with the United Kingdom and with the principal currency areas for recent periods.

£N.Z (million)

Transactions With19551956
Six Months Jan.–JuneSix Months July–Dec.Six Months Jan.–JuneSix Months July–Dec.
United Kingdom—
  Receipts—
    Exports89.479.3108.370.5
  Total111.886.2123.286.5
  Payments—
    Imports90.090.289.485.1
    Total108.1106.6114.3102.7
  Surplus (+) or deficit (–)—
    On trade transactions–0.6–10.9+18.8–14.7
    On all transactions+3.6–20.4+ 9 0–16.2
Sterling Area—
  Receipts—
    Exports96.285.8115.979.1
    Total136.3114.7135.099.2
  Payments—
    Imports106.5111.8106.9109.2
    Total143.6152.0138.0133.2
  Surplus (+) or deficit (–)—
    On trade transactions–10.3–26.0+9.0–30.1
    On all transactions–7.3–37.3–30–34.0
Dollar Area—
  Receipts—
    Exports13.48.418.18.9
    Total14.89.524.010.3
  Payments—
    Imports16.117.212.314.4
    Total18.520.515.318.1
  Surplus (+) or deficit (–) on all transactions–3.7–110+8.6–7.8
Non-Sterling European Payments Union countries and possessions—
  Receipts—
    Exports26.711.728.219.1
    Total27.111.928.719.4
  Payments—
    Imports5.86.35.46.3
    Total6.37.05.87.1
  Surplus (+) or deficit (–) on all transactions+ 20.8+4.9–22.9+ 12.3

The export receipts and import payments figures recorded in these tables differ from the corresponding external trade figures as a result of (1) the different territorial coverage of the two sets of figures, (2) the lack of uniformity in the basis of valuation, particularly in imports, (3) the inclusion in the trade figures of “no-remittance” imports and similar movements of goods with no corresponding monetary transactions, and (4) the actual movements of goods and the corresponding monetary transactions occurring in different recording periods.

The figures on page 300 show the development and subsequent curbing of the import boom. They bring out, too, New Zealand's heavy annual deficit on transactions (particularly “invisibles”) with the sterling area, mainly United Kingdom and Australia, which is offset by a surplus on transactions with other currency areas. The nature of the “invisibles” is apparent in the next table giving detailed figures for the 1955 and 1956 calendar years.

£N.Z.(000)

ItemYear Ended 31 December
19551956
ReceiptsPaymentsReceiptsPayments
Merchandise—
  Exports253,081 282,112 
  Licensed imports 47,440 31,779
  Decontrolled imports 194,456 194,737
  Government imports 20,682 27,098
  Other imports 4,572 3,260
      Totals, merchandise253,081267,149282,112256,874
Transport—
  Freights, fares, ships' charters2,5105,4273,8666,337
Travel—
  Private and business (exclusive of fares)2,2086,4402,8616,809
Insurance—
  Insurance, reinsurance, other transfers1,2521,5981,3081,676
International investment income—
  Interest, dividends, and other private investment income5,8206,3255,4057,068
  Interest on Government and local authority loans 3,361 3,535
      Totals, international investment income5,8209,6865,40510,603
Government transactions—
  Current expenditure by New Zealand Government overseas 6,775 6,154
  Current receipts by New Zealand Government and expenditure by other Governments in New Zealand1,541 1,426 
      Totals, Government transactions1,5416,7751,4266,154
Miscellaneous current transactions—
  Commissions, royalties, rebates, etc.1,4961,9581,4943,071
  Films and entertainments 992 937
  Unilateral transfers (migrants' transfers, personal remittances, charitable, legacies, etc)6,9167,1587,7357,964
  Expenses of business firms4403,1676184,490
  Other current transactions5789034611,080
      Totals, miscellaneous current transactions9,43114,17810,30817,542
Capital transfers—
  Private9,4272,5966,6933,133
  Government8,5486,79310,2821,591
  Local authority   6
      Totals, capital transfers17,9759,38916,9754,730
Unidentified86 73 
Net exports and contra prepayments201  4,736
      Grand totals294,105320,642324,333315,462

INDEX NUMBERS OF VOLUME OF EXTERNAL TRADE.—Index numbers of volume of external trade are now published on the base: 1952 (= 100). The figures given in the following table refer only to calendar years, but quarterly figures are published in the Monthly Abstract of Statistics.

The series for exports of New Zealand produce are linked chain series. Up to the year 1949 the exports of each year were revalued at the unit-values of the immediately preceding year and the aggregate so obtained (after imputing to the 2 per cent of items, for which quantities and consequently unit-values were not available, similar price movements to the priced items) was compared with the recorded value in that (preceding) year. Each year's index was, therefore, a Laspeyre type index on base previous year. From 1950 on, aggregates were also calculated for immediately preceding years at the unit-values of the latest year, which, compared with the recorded value in the latest year, gave a Paasche type index. The final index for the year was then obtained as the geometric mean of these two—i.e., a Fisher “Ideal” index. In the table the successive annual movements are linked into a chain. The quarterly indices are similarly calculated on base previous year, but only a limited number of the more important commodity headings are used in the calculation. When the final indices for the year become available the quarterly indices are adjusted to accord with these; consequently, the indices for quarters are provisional.

The series for total exports includes an allowance for re-exports of imported goods. Since these are normally approximately 1 per cent of total exports and only became significant during the war years, the approximate volume movements were obtained by “deflating” the recorded values by the import price index as the best indicator available of price movements for these commodities. The two indices, exports of New Zealand produce and re-exports, were then combined by weighting by their relative values in the base period. This was a change from the method previously used and resulted in some slight alterations in the indices from those published in Year-Books prior to 1954.

The import volume index up to 1946 was calculated by revaluing each year's imports at 1937 unit-values, assuming comparable price movements in the unpriced items as in the priced items. Thereafter a change was made to the calculation of each year on base previous year and the linking of these annual movements. Anterior year weights were used up to 1949 to give a Laspeyre type index. From 1950 on, a Fisher “Ideal” index has been obtained as the geometric mean of both anterior year and current year weighted indices. The quarterly indices, too, are calculated on base previous year, and, like the export series, are provisional until the calculation of the annual index. Currently, the items for which quantities are recorded (and consequently unit-values obtained) represent approximately two-thirds of the total value of imports. Price movements are imputed to the remaining third on the basis of the price movements of items in the same statistical class.

The total exports and imports series are combined into the total trade series by weighting by their relative values in the base period.

VOLUME INDEX NUMBERSOF EXTERNAL TRADE. Base: 1952 (=100)

Calendar YearExportsImportsTotal Trade
New Zealand ProduceTotal Exports
Dairy ProduceMeatWoolTotal
194657828678784360
194770838983836674
194872839786866575
194982859990896778
195081839086868083
195186727276768983
1952100100100100100100100
195392888990907683
195478999090909995
195587102969696116106

INDEX NUMBERS OF VALUE OF EXTERNAL TRADE.—The following table provides index numbers for the value of New Zealand's external trade on the basis of New Zealand currency for the years 1946–55, on base: 1952 (= 100).

VALUE INDEX NUMBERSOF EXTERNAL TRADE. Base: 1952 (=100)

YearExportsImportsTotal Trade
1946422835
1947545152
1948615156
1949614854
1950766369
19511038292
1952100100100
1953987184
19541029397
1955108110109

IMPORT AND EXPORT PRICES AND TERMS OF TRADE.—Descriptions of the index numbers of export and import prices compiled in New Zealand and of the terms of trade are given in Section 36, together with the index numbers.

CLASSIFICATION OF TRADE STATISTICS.—From the commencement of the recording of commodities entering the external trade up to 1915 no classification of these commodities was used. Trade statistics were published merely as alphabetical lists of the goods imported and exported. In 1914 a classified grouping was introduced whereby the commodities were arranged under 23 class headings comprised of approximately 1,000 items. With minor variations this scheme was continued in use until 1948. In 1949 the Customs Department installed mechanical means of compiling trade statistics, and a new classification was introduced whereby trade commodities were grouped into 31 classes composed of approximately 2,900 items.

For many years the need had been felt for better comparability of the foreign trade statistics of various nations, and in 1938 the League of Nations published a Minimum List of Commodities for International Trade Statistics. Although accepted by some countries this list was not utilized in New Zealand as a primary classification. The third session of the United Nations Statistical Commission recommended a revision of the Minimum List and consequently a draft classification was drawn up by a committee of experts, commented upon by various member nations, and presented to the fourth session of the Commission in 1949. The fifth session in 1950 further reviewed the proposed classification, which was finally approved on 12 July 1950 by the Economic and Social Council to be accepted as the Standard International Trade Classification.

New Zealand adopted the Standard International Trade Classification as from 1 January 1955, and from the same date this classification was put into effect for recording the external trade of the Cook Islands and Niue.

Following the use of the new classification it has been necessary to make changes in some of the tables presented in the subsections dealing with exports and imports, and accordingly comparisons cannot be made between some of the tables now given and those presented in earlier issues of the Year-Book.

MOVEMENT OF SPECIE.—There is no mint in New Zealand and all new coin is imported from the Royal Mint in England. In Section 32 dealing with Banking and Currency is a description of the coinage in use in New Zealand. The movement of specie to and from New Zealand is recorded in the trade statistics, but the value is not included in the totals of merchandise exports and imports. All records of specie are at face value.

The following table shows exports and imports of specie stated at face value for each of the ten years 1946–55.

£(N.Z.)

YearSpecie ImportedSpecie ExportedExcess of Specie Imports (+) or Exports (–)
1946418,9704,532+414,438
1947147,99210,375+ 137,617
1948624,75555,169+569,586
19491,040,725570,220+470,505
1950169,823514,455–344,632
1951250,108280,150–30,042
195284,56726,943+ 57,624
1953107,1067,929+ 99,177
195421,3607,573+ 13,787
1955'45,55513,255+ 32,300

IMPORT AND EXPORT CONTROL AND EXCHANGE ALLOCATION.—A decline in overseas assets commenced during 1936–37 and continued steadily until 28 November 1938, when the net overseas assets of the New Zealand banking system stood at under £(N.Z.)8 million. This figure compared with an average of £(N.Z.)29 million in 1936.

So that overseas assets might be conserved to ensure that overseas debt services would be met and sufficient funds be available for essential imports, the Import Control Regulations 1938 and the Export Licences Regulations 1938 were issued by Orders in Council dated 5 December 1938. The Import Control Regulations were confirmed as valid by the Customs Acts Amendment Act 1939. The Import Control Regulations prohibited the import of goods except under a licence or an exemption (e.g., Government imports). The Export Licences Regulations provided (with minor exceptions) that an export licence must be obtained before goods could be exported. In addition the requirement of an export permit was introduced by the Export Prohibition Emergency Regulations 1939, which have since been replaced by the Export Prohibition Regulations 1953.

Export Control.—Three classes of export licences are provided for—viz., particular, general. and purchaser's. The particular licence applies to an occasional shipment, the general licence is issued to exporters who make regular or frequent shipments, while the purchaser's licence applies to those cases where goods have been purchased in New Zealand for export and credits have been established from overseas funds (e.g., wool purchases). A condition of the issue of any export licence is that the overseas exchange earned must be sold to a New Zealand bank for New Zealand currency.

Whereas the purpose of the Export Licences Regulations is to ensure that all foreign exchange earned is sold to the New Zealand banking system, the aim of the Export Prohibition Regulations 1953 is to control the export of essential goods in short supply, of goods on which subsidies have been granted, and of goods shipped to strategic destinations.

Import Selection.—A brief summary of the history of import licensing since its inception in 1938 will be found in the 1955 issue of the Year-Book.

The 1956 Import Licensing Schedule effected a further relaxation in New Zealand's import policy. A number of minor items only were added to the wide range of goods which can be imported from non-scheduled countries without licence, but a considerable increase was made in the list of world exemption items (i.e., those which can be imported from any source without licence), which now total 150 items.

No major changes were announced in the 1957 Import Licensing Schedule. Nine new items. including tobacco pipes and a wider range of children's footwear, were exempted from licensing if imported from non-scheduled countries, and control was reimposed on men's nylon socks and women's and girls' ankle socks. Particular attention was paid to clothing items because of the effect of imports from low-cost countries, and it was announced that licences for certain items would be granted on a quantity instead of a value basis. Further decontrol was not possible for 1957 as a stage had been reached where over 80 per cent of imports from non-scheduled countries did not require a licence. Any marked increase in liberalization will not be possible until the whole structure of import duties has been examined in relation to the needs of New Zealand industry.

The list of scheduled countries, which has remained unchanged since 1953, was reduced in 1956 by the removal of Argentina, French Somaliland, Iran, Tangier, the U.S.S.R., and other eastern European countries. The scheduled countries now comprise those in the dollar area, Japan, and Korea.

A more liberal policy has been adopted in recent times regarding imports from the dollar area. This has been continued again in 1957. The dollar area countries have benefited from the increase in world exemption items and the criteria for the issue of dollar licences have been considerably relaxed, licences being granted mainly for plant and equipment, raw materials and other requirements of primary, manufacturing, and building industries.

In regard to imports from Japan, the policy for 1956 is being continued in 1957 and reasonable licences are being issued for all those items which are not competitive with New Zealand made goods.

The extent to which New Zealand has liberalized her import policy is illustrated by the fact that in the 1957 Import Licensing Schedule only 269 items are controlled compared with 950 in 1950. Over the same period the number of items for which no allocation is made (“D” item) has fallen from 333 to 29. Balance of payments figures available show that the percentage of licensed private imports to all private imports has dropped from 99.5 per cent in 1950 to 16 per cent in the year ended June 1956.

The import licensing provision for motor vehicles was again subject to a separate announcement. Licences issued in 1956 provided for the import of approximately 35,000 vehicles including some of Australian origin. The provision made for 1957 should maintain motor vehicle imports at a slightly higher level than in 1956.

The scheme for token imports, first introduced in 1949 to enable old-established business connections with United Kingdom exporters to be maintained on a small scale where no allocation was made for particular lines, has been continued for the 1957 licensing period.

The Board of Trade, in conjunction with the Comptroller of Customs, is at present conducting a review of the New Zealand Customs Tariff. It was announced that, except in those special cases where import licensing was the only satisfactory means of assisting New Zealand industry for the next few years, it was intended to remove import control when the new tariff was implemented.

Exchange Allocation.—Exchange allocation was introduced in April 1952, when New Zealand's overseas assets declined heavily because of the fall in wool prices and a abnormally high volume of imports. Sales of exchange to importers by the trading banks during 1952 were limited to 80 per cent of the importers' 1950 purchases of foreign exchange, and applications to the Reserve Bank were required in all cases where an importer desired exchange in excess of this basic allocation. Each application was considered on its merits, and decisions were made in consultation with the Board of Trade, the Customs Department, the Department of Industries and Commerce, and the Treasury, taking into consideration the essentiality of the goods, the supply position, any prior commitments entered into by the importer and any import licences held, and any special circumstances. The forecast for import payments for 1952, other than on Government account, was for £170 million to £180 million, but reached, in fact, £200 million.

For 1953 the basic allocations of exchange were reduced to 40 per cent of the 1950 figure. Payments for private imports amounted to £170 million.

Basic allocations for 1954 were fixed in June 1953 at 50 per cent of 1950 remittances, but were increased to 75 per cent in November 1953. In addition a number of items, including sugar, tea, sulphur, basic slag, rock phosphate, cement, newsprint, tobacco, woolpacks, and books, was exempted from exchange allocation.

The exchange allocation system for imports terminated on 31 December 1954. This does not, however, apply to remittances other than for imports, which still require a Reserve Bank permit.

TRADE COMMISSIONER SERVICE.—Facilities for the promotion of overseas trade are provided by the Department of Industries and Commerce through the services of Trade Commissioners, who are stationed in nine posts—Sydney, Melbourne, Singapore, Tokyo, Bombay, London, New York, Washington, and Montreal. While this representation is modest in comparison with other countries, it reflects the country's growing interest in the desirability of diversifying export markets, and this is further exemplified by the fact that two of the posts, at New York and Singapore, were established only during 1956.

While the selling of goods in overseas markets is basically the responsibility of New Zealand exporters, the Trade Commissioner can be of considerable help in conducting market surveys and supplying information on import and exchange restrictions, Customs duty, sales tax, normal sources of supply (local production and imported), marketing methods, freight rates, statutory or customary requirements for packing, labelling, etc., and reliable importers in his territory. He may also assist New Zealand importers to locate new sources of supply of essential commodities. New Zealand businessmen travelling overseas may be saved much time and trouble by enlisting the services of the Trade Commissioner, whose knowledge of local conditions and whose connections with businessmen and Government officials in his territory enable him to give valuable advice.

The Trade Commissioner keeps a careful watch on the pattern of New Zealand trade with his territory and reports on significant changes. Where imports from New Zealand are affected, for example, by a new interpretation of an agricultural inspection regulation, or by the imposition of import restrictions, the Trade Commissioner is often called upon to make representations at the official level.

Trade Commissioners are also engaged in numerous other activities, some of which are representing New Zealand at international conferences, reporting on economic and industrial developments in their territories, acting on behalf of Government departments in the procurement of stores, payment of accounts, etc., and maintaining liaison with business and Government circles where they are stationed.

Businessmen may write for information direct to the New Zealand Trade Commissioner in the country concerned but, where convenient, it is preferred that requests be made through the Secretary, Department of Industries and Commerce, Wellington, who is often able to give preliminary advice and assistance.

10 B—EXPORTS

IN New Zealand the Customs Department requires for every package exported a declared statement of the contents, value, and destination, the export statistics being compiled from the analysis and totals of these statements.

Exports are valued in New Zealand currency “free on board at the port of shipment,” except re-exports ex bonded warehouse or under drawback of duty which are recorded at the original import values. Where goods are not sold till arrival at their destination, values are assessed at current prices at time of shipment. Meat and dairy-produce exports are valued like other commodities, on the basis of overseas realizations, not on the basis of the prices payable to producers under the internal purchasing procedures. Wool acquired under the wartime appraisal scheme and subsequently exported to be auctioned overseas was valued on export at appraisal prices, not ruling prices at the time of export. New Zealand currency was below parity with sterling from the beginning of 1930 to 19 August 1948, when it was again restored to parity. A table in the preceding subsection gives the values in sterling of total exports for the years 1946 to 1956.

The ultimate destination of the goods is distinguished as far as practicable, but it is impossible to discover what proportion of the exports is intended for home consumption in the country of destination. The trade records distinguish between exports of New Zealand produce and reexports of imported goods.

CLASSIFICATION OF EXPORTS.—The table following gives merchandise exports (i.e., excluding species) for the last eleven years for the four main commodity groups.

£(000)

YearDairy ProduceMeatWoolHides, Skins, and PeltsTotal Merchandise Exports*

* Including other commodities, among them uncoined gold and silver.

† Provisional.

194529,95319,44312,7175,00881,631
194629,62126,23526,5935,743101,302
194742,55732,32331,97010,383129,420
194847,84432,15644,5059,473147,821
194951,86730,43946,5546,679147,281
195054,61232,30274,6539,996183,752
195163,32431,303128,17612,862248,127
195279,85650,44581,9989,949240,561
195377,68447,80884,37010,692235,860
195466,79859,55688,43710,449244,466
195570,05168,19493,7809,333258,850

The commodity groups shown above normally account for more than 90 per cent of the total value of merchandise exports.

The relative importance of dairy produce, meat, and wool as the main individual constituents of New Zealand's export trade has varied considerably as is seen from the figures in the above table. In the preceding subsection a table of volume index numbers for these commodities, and also a table showing the export price index numbers and terms of trade, are given.

New Zealand's reliance upon grassland farming for her exports is brought out by the figures in the next table showing total exports of pastoral products and the percentage which they represent of the total exports of New Zealand produce.

EXPORTSOF PASTORAL PRODUCTS

YearValuePercentage*

* Of total exports of New Zealand produce.

 £ 
193542,647,00092.6
193652,686,00093.6
193762,549,00094.5
193854,299,00093.9
193953,744,00093.6
194069,057,00094.6
194162,238,00093.0
194274,361,00092.3
194361,029,00086.9
194458,948,00082.2
194568,112,00087.0
194689,582,00089.3
1947120,342,00094.2
1948137,750,00094.0
1949138,702,00095.0
1950174,399,00095.7
1951239,137,00097.1
1952228,179,00095.7
1953223,746,00095.8
1954229,204,00094.6
1955245,474,00095.6

As will have been observed, the commodities listed in the first table comprise the bulk of the pastoral products, the grand total of which has fallen below 90 per cent of all New Zealand produce only during the years 1943 to 1946. The decline recorded in 1941 was mainly due to wartime shipping difficulties, and stocks of some commodities held in New Zealand at the end of that year were larger than usual. In 1942 some of this stock was moved, thus contributing to the greater value of pastoral exports in that year. During the years from 1943 to 1945 the quantity of pastoral produce exported was directed by the quantities of meat and dairy produce supplied to United States Forces by way of reverse lend-lease. The values of such produce, which was not treated as an export even when subsequently shipped to such forces in the Pacific area, were: 1943, £7,000,000; 1944, £10,000,000; 1945, £8,000,000. At the same time an increase took place in agricultural produce exported, which increased the total value of exports of New Zealand produce, and tended to further reduce the proportion of pastoral produce in the export trade. In 1951 when pastoral produce reached the highest percentage of total exports on record, the high revenue received for wool was the main factor contributing to the increase.

Of exports other than pastoral the principal ones of economic significance are: frozen fish exported to Australia, supplemented now by the export of crayfish tails to the United States of America, and of fish-liver oils; timber, now mainly of exotic species; fresh apples, this trade having been resumed after a break during the war; peas, and grass and clover seeds, the latter having now risen to be the most important single export outside the pastoral group; and wood pulp exported to Australia.

Quantity figures of exports of the principal items of New Zealand produce are next given for the years 1953 to 1955, while the Statistical Summary, towards the end of the book, shows the figures for some of the more important commodities from 1906 up to date. For some purposes, especially for comparisons between recent and more remote years, quantities are preferable to values, since the latter are affected by price-variations.

Commodity (New Zealand Produce)195319541955*

* Provisional.

Mining products—
  Coal(ton)1,665871649
  Pumice(cwt.)16,06814,12630,301
  Gold(oz.)29,67441,48421,889
  Scheelite(ton)454120
  Silver(oz.)34,34443,2634,694
  Cement(cwt.)15,81914,460 
Fishery products—
  Fish, fresh and frozen(cwt.)49,01143,02147,343
  Fish, other(cwt.)1,0651,078641
  Crayfish(cwt.)22,56533,03731,079
  Whale oil(gal.)130,186182,259167,068
  Fish oils and fish-liver oils(gal.)17,5989,04917,557
Forest products—
  Kauri gum(ton)317270411
Timber—
  Sawn(sup. ft.)15,964,09331,032,37338,780,172
  For cases in shooks(sup. ft.)4,172,7992,211,4823,890,734
  Wood pulp(ton)4,32719,58327,341
  Newsprint(cwt.)  7,199
  Building board(sq. ft.)3,791,6511,350,1141,665,910
  Plywood(sq. ft.)123,623101,520167,282
Pastoral products—
  Butter(cwt.)3,182,1132,649,6123,109,778
  Casein(cwt.)172,147162,917243,351
  Cheese(cwt.)2,027,2091,807,9201,678,956
  Milk, dried and condensed(cwt.)1,259,804904,4581,027,218
  Sugar of milk(cwt.)73,21165,58368,951
Eggs—
  In shell(doz.)18,27024,81127,325
  Not in shell(lb.)70,1321,796,6721,567,584
  Honey(lb.)1,115,5951,896,5184,555,931
  Meat, frozen and chilled(cwt.)6,533,7517,415,8367,734,062
  Meat, canned(cwt.)282,812256,659186,943
  Meat extract(lb.)1,329,2121,386,5971,192,042
  Other preserved meat(cwt.)14,73816,78914,025
  Sausage casings(lb.)6,107,4336,813,1306,998,547
  Liver meal(cwt.)43,58742,71246,749
  Cattle hides(number)399,954502,675647,603
  Horse hides(number)12,4139,2529,215
  Calf skins(number)961,3741,129,3661,296,039
  Deer skins(number)68,33058,97669,700
  Opossum skins(number)492,105324,640323,385
  Rabbit skins(number)2,626,462768,533662,238
  Sheep skins and pelts(number)18,286,63518,898,74720,820,200
  Hair (not made up)(cwt.)730797678
  Wool(lb.)391,607,133392,900,020416,901,983
  Inedible offals (including dried blood)(cwt.)53,06640,56252,170
  Lard(cwt.)6,4828,80710,130
  Edible tallow(cwt.)248,318230,458215,363
  Edible stearine(cwt.)12,44915,24212,917
  Inedible tallow(ton)27,73727,58934,054
  Neatsfoot oil(gal.)122,58983,73574,676
  Live cattle(number)4072,047657
  Live sheep(number)4335382,144
  Live horses(number)335597420
Agricultural products—
  Barley(cental)176,143 52,600
  Apples(lb.)44,977,38049,671,27041,573,938
  Pears(lb.)1,144,26522,16064,837
  Hops(lb.)335,865186,504278,961
  Potatoes(ton)1,1542,0433,396
  Onions(ton)1,7529973,149
  Canned vegetables(lb.)5,195,0997,742,25210,321,333
  Peas, food(cental)130,385136,923181,046
  Peas, seed(lb.)91,250130,495146,803
  Seeds, grass and clover(cwt.)179,267184,25379,354
  Linen flax(cwt.)2,8042,458621
Miscellaneous—
  Biscuits(cwt.)4,0283,0221,751
  Ale, beer, stout(gal.)168,203174,095189,288
  Sugar(cwt.)5,2846,1366,350
  Drinking chocolate(lb.)1,160,4953,380,270350
  Cigarettes(lb.)76,08527,79518,718
  Soaps(lb.)1,920,0381,077,0461,223,288
  Scrap metal(ton)35,33521,54429,584
  Chamois leather(sq. ft.)392,500733,5391,524,394

The values of the principal exports are given in the following table.

£

Commodity (New Zealand Produce)195319541955*

* Provisional.

Mining products—
  Coal10,2344,9713,907
  Pumice8,5067,62414,750
  Gold364,912487,662261,239
  Scheelite45,52226,13617,180
  Silver10,59012,8671,407
  Cement9,5228,414 
Fishery products—
  Fish, fresh and frozen410,717342,366368,793
  Fish, other19,59530,76021,986
  Crayfish695,063982,257953,631
  Whale oil36,04847,39042,700
  Fish oils and fish-liver oils62,44030,97134,700
Forest products—
  Kauri gum43,71233,14847,973
Timber—
  Sawn428,338796,8071,061,750
  For cases in shooks200,066104,541198,215
  Woodpulp176,682816,6651,130,566
  Newsprint  21,299
  Building board61,04431,04529,118
  Plywood4,5735,1178,442
Pastoral products—
  Butter51,461,12744,806,89950,829,692
  Casein1,254,0791,242,1071,851,158
  Cheese18,373,11416,380,36013,412,660
  Milk, dried and condensed6,277,7454,091,8353,664,808
  Sugar of milk318,307277,003293,089
  Eggs—
    In shell4,3215,8496,609
    Not in shell9,239213,628131,865
  Honey57,98095,378226,963
  Meat, frozen and chilled39,886,59951,905,76360,669,753
  Meat, canned4,743,1033,903,7142,833,140
  Meat extract535,131345,675324,975
  Other preserved meat175,019224,404200,694
  Sausage casings2,472,8843,176,7324,051,206
  Liver meal118,124120,366152,686
  Cattle hides1,466,2021,579,0701,533,038
  Horse hides38,05224,31922,045
  Calf skins935,8831,004,6541,281,664
  Deer skins72,04257,07681,318
  Opossum skins184,36896,844116,661
  Rabbit skins84,50410,2599,646
  Sheep skins and pelts7,934,0937,659,4416,208,702
  Hair (not made up)20,81418,30418,991
  Wool84,597,99688,437,30693,735,464
  Inedible offals (including dried blood)285,793243,319314,301
  Lard38,62152,79662,582
  Edible tallow661,928827,735764,902
  Edible stearine42,61856,59050,204
  Inedible tallow1,282,6831,749,0422,119,318
  Neatsfoot oil43,75334,71849,529
  Live cattle31,38359,16060,667
  Live sheep57,86595,02153,576
  Live horses191,081334,423261,786
Agricultural products—
  Barley220,738 59,105
  Apples1,671,8211,548,3371,300,965
  Pears43,0821,0052,433
  Hops75,84644,49968,284
  Potatoes41,72555,56870,825
  Onions61,17948,76992,116
  Canned vegetables240,032351,807529,949
  Peas, food283,114249,624282,096
  Peas, seed299,666495,742566,057
  Seeds, grass and clover1,869,6762,802,4211,349,133
  Linen flax12,27810,0573,729
  Miscellaneous-
  Biscuits27,06720,70413,041
  Ale, beer, stout50,39560,13257,407
  Sugar16,73519,75119,894
  Soups9,63816,4981,293
  Drinking chocolate84,200219,80325
  Infant and invalid food (cereal)106,142134,64589,062
  Cigarettes49,12511,3269,436
  Soaps62,13443,46049,680
  Scrap metal392,585258,852473,915
  Dairy machinery30,863102,920105,219
  Chamois leather34,81465,26981,742
  Vitamins and concentrates58,90041,28462,530
  Washing machines66,212120,36416,269
Other New Zealand produce1,421,6742,751,5101,776,771
    Totals, New Zealand Produce233,473,656242,372,878256,692,324

In the preceding Section there is a description of the change made in the classification of New Zealand trade for statistical purposes as from 1 January 1955 when the Standard International Trade Classification was brought into use. Figures for several years prior to 1955 have been rearranged to show the values of total exports for the Sections and Divisions of the S.I.T.C., as. they would have appeared had that classification been in use during the period.

The following table gives such information for the years 1953–55.

£(000)

Exports—Section and Division195319541955*

* Provisional.

Section 0. Food
  Div. 00 Live animals chiefly for food91155115
  Div. 01 Meat and meat preparations47,82759,55768,195
  Div. 02 Dairy produce, eggs, and honey76,19765,59568,273
  Div. 03 Fish and fish preparations1,1191,3581,348
  Div. 04 Cereals and cereal preparations386172168
  Div. 05 Fruits and vegetables2,4612,3682,432
  Div. 06 Sugar and sugar preparations344309321
  Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof9228018
  Div. 08 Feeding stuff for animals (not including unmilled cereals)139134169
  Div. 09 Miscellaneous food preparations718901875
Totals, Section 0129,374130,828141,914
Section 1. Beverages and Tobacco
  Div. 11 Beverages667476
  Div. 12 Tobacco and tobacco manufactures1568599
Totals, Section 1159223175
Section 2. Crude Materials, Inedible, Except Fuels
  Div. 21 Hides, skins, and fur skins, undressed10,72510,4489,333
  Div. 22 Oil seeds, oil nuts, and kernels621162
  Div. 23 Crude rubber, including synthetic and reclaimed  1
  Div. 24 Wood, lumber, and cork6387981,062
  Div. 25 Pulp and waste paper1788181,137
  Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics and waste)84,63388,58193,992
  Div. 27 Crude fertilizers and crude minerals, excluding coal, petroleum, and precious stones202033
  Div. 28 Metalliferous ores and metal scrap458307495
  Div. 29 Animal and vegetable crude materials, inedible, n.e.i.2,8823,6832,370
Totals, Section 299,540104,677108,585
Section 3. Mineral Fuels, Lubricants, and Related Materials
  Div. 31 Mineral fuels, lubricants, and related materials616577525
Totals, Section 3616577525
Section 4. Animal and Vegetable Oils and Fats
  Div. 41 Animal and vegetable oils (not essential oils), fats, greases, and derivatives1,4861,9562,362
Totals, Section 41,4861,9562,362
Section 5. Chemicals
  Div. 51 Chemical elements and compounds875051
  Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas   
  Div. 53 Dyeing, tanning, and colouring materials151816
  Div. 54 Medicinal and pharmaceutical products11382109
  Div. 55 Essential oils and perfume materials, toilet, polishing, and cleansing preparations785959
  Div. 56 Fertilizers, manufactured 12
  Div. 59 Explosives and miscellaneous chemical materials and products1,2921,2841,923
Totals, Section 51,5861,4942,160
Section 6. Manufactured Goods Classified Chiefly by Material
  Div. 61 Leather, leather manufactures n.e.i., and dressed furs7986109
  Div. 62 Rubber manufactures n.e.i.194063
  Div. 63 Wood and cork manufactures (excluding furniture)76150253
  Div. 64 Paper, paperboard, and manufactures thereof263784
  Div. 65 Textile yarn, fabrics, made-up articles, and related products160123128
  Div. 66 Non-metallic mineral manufactures n.e.i.444552
  Div. 67 Silver, platinum, gems, and jewellery292225
  Div. 68 Base metals243441
  Div. 69 Manufactures of metal2231,706303
Totals, Section 66792,2441,058
Section 7. Machinery and Transport Equipment
  Div. 71 Machinery other than electric813583702
  Div. 72 Electric machinery, apparatus, and appliances158252193
  Div. 73 Transport equipment223284224
Totals, Section 71,1941,1201,119
Section 8. Miscellaneous Manufactured Articles
  Div. 81 Prefabricated buildings, sanitary, plumbing, heating and lighting fixtures, and fittings225
  Div. 82 Furniture and fixtures667
  Div. 83 Travel goods, handbags, and similar articles224
  Div. 84 Clothing5129
  Div. 85 Footwear111
  Div. 86 Professional, scientific, and controlling instruments; photographic and optical goods, watches, and clocks918387
  Div. 89 Miscellaneous manufactured articles n.e.i.175289116
Totals, Section 8282395229
Section 9. Miscellaneous Transactions and Commodities n.e.i.
  Div. 91 Postal packages129134127
  Div. 92 Live animals, not for food197338274
  Div. 93 Returned goods and special transactions42 
  Div. 95 Unclassified goods under £10 in value385462
  Div. 99 Gold513488261
Totals, Section 98811,016724
Grand totals, merchandise exports235,860244,466258,850

DESTINATION OF NEW ZEALAND EXPORTS.—New Zealand's first exports went to Australia, which had a monopoly of the trade in the early years. In 1865, 70 per cent, and even in 1871, 44 per cent, of the total exports went to Australia. Since the establishment of direct shipping lines the United Kingdom has absorbed the bulk of New Zealand exports, the proportion going to that country being usually in excess of 70 per cent and often exceeding 80 per cent of the total merchandise exports. The proportion is markedly affected by relative movements between the prices of (1) daily produce and meat, most of which are sold to the United Kingdom, and (2) wool, hides, and skins, which are exported in much greater proportions to other countries. The prices of the former are generally less variable than those of the latter, resulting in a greater stability in the value of exports to the United Kingdom than to other countries. Hence, when the prices of wool, hides, and skins are relatively low the proportion of exports going to the United Kingdom is high; it reached 88 per cent in 1932. Conversely, when the prices of wool, etc., are relatively high the proportion of exports going to the United Kingdom is low. In 1951 the extremely high wool prices ruling resulted in the proportion falling to 58 per cent, easily the lowest figure recorded since the United Kingdom supplanted Australia as the principal export market about 1870.

The same cause operated to reduce the proportion of exports going to British Commonwealth countries in 1951 to only 65 per cent, easily the lowest figure on record. In the years since 1951 exports to Commonwealth countries have averaged 73 per cent of the total trade.

The principal destinations of New Zealand's exports of merchandise (including re-exports) during the last twenty years are given in the table below. The nomenclature used in this and subsequent tables in regard to the countries of destination refers generally to status and territories in the years indicated and not necessarily to the present position.

£(000)

YearUnited KingdomCanadaAustraliaFranceGermany*United States of AmericaOther CountriesTotal Merchandise Exports

* Figures for post-war years represent German Federal Republic only.

† Including ships' stores.

‡ Provisional.

193645,4931,1031,8431,6462722,8783,51656,752
193750,7061,6781,8241,0159194,7845,78766,713
193848,8981,1272,1891,0158911,4222,83458,376
193946,6899642,2561,5793902,8473,32458,049
194064,1291,7092,159717 2,8262,20173,741
194152,3962,8222,400  5,1914,67167,479
194260,4713,6172,718  5,9908,48981,285
194346,3684,5352,849  6,38511,72571,863
194455,4271,9403,093  5,06312,26577,787
194558,6432,2514,19547 7,9858,51081,631
194670,9242,8033,6313,4651,6399,7169,124101,302
194798,6983,0604,0964,447788,17410,866129,420
1948107,9152,9913,9548,3082,7257,27314,655147,821
1949107,7062,1963,7487,6582,9945,49217,488147,281
1950121,6853,5574,7798,0775,93918,38721,327183,752
1951142,3628,5655,11317,8548,83628,85936,538248,127
1952156,4855,2123,93010,5595,22727,26731,880240,561
1953158,0472,9584,65515,6846,08418,37930,053235,860
1954163,3002,9976,44514,67510,49113,89632,663244,466
1955169,6104,0116,71315,23012,62715,08635,573258,850

The statistics quoted in the foregoing table indicate the destination of New Zealand exports as recorded by the Customs Department. In some instances the ultimate destination of exports is not known at the time of export, such goods being entered as exported to the country to which they are being shipped. This applies more particularly to wool, considerable quantities of which are shipped to the United Kingdom, and, in normal times, subsequently re-exported to the Continent. It should be observed, however, that in all instances where the final destination is known at the time of export, the exports are credited to that destination in the New Zealand trade statistics. It is possible of course, that the destination of goods may be changed while in transit; and this, in fact, happens occasionally. In such cases the actual destination will be different from that to which the goods have been credited in the statistics; however it is quite impossible to keep a record of all movements of this nature.

A further point of some importance is the fact that an appreciable quantity of wool is exported on an “optional” basis—United Kingdom, option Continent. In these cases, however, subsequent information is received by the Customs Department as to the actual destination of the goods, and the entries are amended.

It will be realized, therefore, that the actual final destinations of New Zealand exports may vary appreciably from the classification shown in the table. For these reasons it is probable that exports to Continental countries are normally somewhat higher than the figures indicate; conversely, exports to the United Kingdom for retention in that country are lower than the totals quoted in the table. In the following table figures are given for New Zealand's export trade to European countries during the period 1951–55, together with figures to show the importance of wool as the chief commodity in the trade.

NEW ZEALAND EXPORT TRADETO EUROPEAN COUNTRIES

Country19511952195319541955*

* Provisional.

 Value (£)
Austria95,91034,58347,89476,50926,053
Belgium and Luxemburg5,239,2992,984,1773,469,9453,401,8624,614,360
Bulgaria3331754
Czechoslovakia763,699604,292311,801252,0431,664,781
Denmark1,157,146642,368419,686695,894387,300
Finland322,16249,48433,05074,28948,530
France17,853,95810,558,64915,684,33314,674,98815,229,871
German Federal Republic8,835,5955,227,0236,083,50710,490,65212,627,410
Germany (Eastern)737544501135,827914
Greece253,693380,059198,051295,764454,300
Hungary1771082,979101240
Italy3,847,4874,362,4184,946,3644,272,6394,715,880
Netherlands3,261,8692,036,3682,449,4304,073,9714,494,472
Norway227,92040,79039,75982,892111,787
Poland7,32,1452,960,6923,625,5102,278,1172,702,123
Portugal13,72921,93847,84723,36644,784
Rumania103,07337,1722332
Russia (U.S.S.R.)1,246,911  2,942,5482,166,134
Spain69232,87037,976144,982
Sweden672,908486,492383,881453,251456,051
Switzerland128,27756,447140,174110,417427,457
Turkey47,42944,3711 36
Yugoslavia312,24255,0861,4527,50920,107
    Totals51,593,31230,548,97438,156,21044,380,63450,337,958
 Per Cent
Percentage of total New Zealand exports taken by European countries20.7912.7016.1818.1519.45
 Value (£)
Value of wool exported to European countries45,121,40123,370,05828,580,77035,331,16037,354,837
 Per Cent
Percentage of wool exports to total exports to European countries (value basis)87.4676.5074.9079.6174.21
Percentage of total New Zealand wool exports taken by European countries (value basis)35.2028.5033.7839.9539.85

The table which follows shows for each of the last eleven years the percentage of total exports (excluding specie and ships' stores) taken by each of the principal countries trading with New Zealand.

Per Cent

Country19451946194719481949195019511952195319541955*

* Provisional.

United Kingdom72.2870.3576.6673.3073.3866.4457.5765.3367.2166.9865.52
India3.623.070.380.540.600.420.390.630.410.520.74
Pakistan0.050.110.060.080.190.020.01
Canada2.772.782.382.031.501.943.502.181.261.231.55
Australia5.173.603.182.692.562.612.071.641.982.642.59
Other British Commonwealth countries1.732.011.561.341.341.191.382.192.252.422.27
  Totals, British Commonwealth countries85.5781.8184.1679.9079.4372.7164.9772.073.3073.8172.68
Netherlands0.010.491.331.941.661.871.320.851.041.671.74
Belgium 0.471.551.02.1.241.612.121.251.481.401.78
France0.063.443.455.645.224.417.224.416.676.025.88
German Fed. Rep. 1.630.061.852.043.243.572.182.594.304.88
Italy0.760.290.520.510.981.041.561.822.101.751.82
Poland0.050.010.060.140.820.852.961.241.540.931.04
Russia (U.S.S.R.) 0.010.391.731.980.560.50  1.210.84
Egypt2.960.410.160.140.170.080.140.060.060.060.14
Japan  0.040.030.530.541.551.461.330.520.77
United States of America9.849.646.354.943.7510.0411.6711.387.825.705.83
Remaining countries0.751.801.932.162.183.052.423.302.072.632.60
      Totals, other countries14.4318.1915.8420.1020.5727.2935.0327.9526.7026.1927.32

Exports to Each Country, 1953–55.—The table following shows the exports (including re-exports, but excluding specie) according to the countries of destination. Reference should be made to remarks made earlier regarding re-exports of New Zealand produce from the United Kingdom.

£

Country195319541955*

* Provisional.

British Commonwealth Countries, Protected States, and Trust Territories
Europe—
  United Kingdom158,047,317163,300,281169,610,042
  Gibraltar 398
  Malta26,87822023
  Cyprus7192,3271,254
      Totals158,074,914163,302,867169,611,327
Asia—
  Aden14,9756,9961
  Bahrain  8,406
  British Borneo1,7531,2032,425
  Ceylon22,02147,65993,485
  Hong Kong104,386108,905109,574
  India959,7401,260,4801,913,054
  Pakistan45,84137,14623,644
  Malaya and Singapore974,327637,208678,356
  Kuwait3,9363,870987
      Totals2,126,9792,103,4672,829,932
Africa—
  British West Africa140,257129,006114,860
  Kenya and Uganda2,93417,83117,838
  Rhodesia-Nyasaland Federation551,500255,621174,389
  Union of South Africa597,211548,969468,070
  Other17,6048,7406,177
      Totals1,309,506960,167781,334
America—
  Bermuda84,025185,539222,874
  British Guiana107,375120,34490,738
  British Honduras8,8462,1702,986
  British West Indies1,426,4251,952,1121,717,425
  Canada2,958,0632,996,6274,011,266
  Falkland Islands2,35291294
      Totals4,587,0865,256,8836,045,583
Pacific—
  Australia4,655,2626,444,6556,712,934
  Fiji788,304896,2331,069,966
  Gilbert and Ellice Islands65,93666,56168,421
  Nauru Island54,52539,47755,725
  Norfolk Island22,40621,15718,050
  Papua5712,0423,309
  Pitcairn Island1,0891,5071,537
  Solomon Islands24,3273,0307,623
  Tonga216,112244,740298,497
  Western Samoa450,049562,838613,342
  New Hebrides14,45034,9567,465
  Other  1,790
      Totals6,293,0318,317,1968,858,659
      Totals, British Commonwealth countries, etc.172,391,516179,940,580188,126,835
Other Countries
Europe—
  Austria47,89476,50926,053
  Belgium and Luxemburg3,469,9453,401,8624,614,360
  Czechoslovakia311,801252,0431,664,781
  Denmark419,686695,894387,300
  Finland33,05074,28948,530
  France15,684,33314,674,98815,229,871
  Germany (Eastern)501135,827914
  German Federal Republic6,083,50710,490,65212,627,410
  Greece198,051295,764454,300
  Italy4,946,3644,272,6394,715,880
  Netherlands2,449,4304,073,9714,494,472
  Norway39,75982,892111,787
  Poland3,625,5102,278,1172,702,123
  Portugal47,84723,36644,784
  Republic of Ireland978,304423,053166,207
  Rumania37,1722332
  Russia (U.S.S.R.) 2,942,5482,166,134
  Spain232,87037,976144,982
  Sweden383,881453,251456,051
  Switzerland140,174110,417427,457
  Yugoslavia1,4527,50920,107
  Other2,982118369
      Totals39,134,51344,803,68750,504,204
Asia—
  Burma59,76522,29791,654
  China 17,225152,185
  French Indo-China21,597,073 
  Iraq1,5141,994964
  Israel6,2016,49314,742
  Japan3,123,1141,272,9102,004,765
  Korea, South41,32347,178110,258
  Lebanon4,6905,0212,087
  Philippines246,068249,1524,778
  Saudi Arabia86,75055,30812,483
  Thailand10,5703831,041
  Other8,6961,6603,737
      Totals3,588,6933,276,6942,598,694
Africa—
  Algeria3,2925,88734
  Belgian Congo121,56393,201107,820
  Egypt149,230141,797353,173
  French Morocco59,70982,91665,508
  Portuguese East Africa20,72438,01418,839
  Other63580352
      Totals355,153361,895545,726
America—
  Argentina14,90275,5295,298
  Chile113,2581,924
  Colombia16,81860,078174,637
  Cuba41,9052,1461,312
  Mexico184,737340,176145,058
  Netherlands Antilles243,562206,201274,288
  Panama Republic294,832165,321242,881
  Panama Canal Zone86,04741,41817,175
  United States of America18,378,72113,895,71415,086,251
  Uruguay39,4298,18349,327
  Other21,2305,7051,854
      Totals19,322,18414,813,72916,000,005
Pacific—
  Hawaii66,127183,257130,038
  New Caledonia2,4944,4674,140
Society Islands157,657279,344232,566
Tuamotu Archipelago6181,0781,749
American Samoa135,321133,768114,863
Other584522
      Totals362,275602,366483,358
      Totals, other countries62,762,81963,858,37170,131,987
Ships' stores705,713667,255591,378

Destination of Main Exports.—The table which follows shows quantities and values of the principal exports of New Zealand produce sent to various destinations during the years 1954 and 1955.

Country to Which Exported19541955*
QuantityValueQuantityValue

* Provisional.

Wool
 lb.£lb.£
United Kingdom186,664,34042,361,462185,238,86942,429,753
Union of South Africa1,756,521474,662998,767271,345
India837,954203,3762,178,677503,289
Canada5,557,0001,291,0257,232,6231,783,960
Australia5,452,1971,123,7894,905,4831,077,979
Republic of Ireland225,32748,402508,016107,178
Belgium15,112,7322,982,77819,175,0474,010,589
Norway211,55565,911229,89664,308
Denmark1,713,593502,2411,127,958314,087
Finland95,20129,06532,6709,365
Poland9,013,7522,271,45910,935,9912,644,547
Portugal73,26918,645157,90737,968
German Federal Republic24,433,3055,902,44236,581,1288,502,525
Netherlands11,529,1242,490,32411,148,1532,382,804
France67,757,18514,073,54667,378,10114,113,255
Sweden1,318,078350,1371,591,190409,561
Switzerland358,19989,172251,68962,493
Italy14,288,6083,244,24111,368,9092,442,287
Czechoslovakia1,114,041251,6002,833,206615,621
Germany (Eastern)583,642135,2402,803693
Greece985,428276,2001,069,523259,457
Russia (U.S.S.R.)9,346,4092,604,0586,183,5001,481,787
Spain141,12637,96816,8583,490
Egypt377,239121,216315,14689,983
French Morocco326,11174,542159,69438,368
Japan2,207,670584,0494,971,2561,213,677
Korea (Republic)  361,262109,745
China48,03117,225462,845152,185
Colombia200,44459,887574,255174,634
Mexico1,514,242339,886584,994145,051
United States of America29,598,8576,399,74538,268,2228,270,516
Other countries58,84013,01357,34512,964
      Totals392,900,02088,437,306416,901,98393,735,464
Frozen and Chilled Beef and Veal
 cwt.£cwt.£
United Kingdom964,9245,829,9511,289,9339,200,742
Hong Kong2033,83191615,580
Malaya6,61544,2001,82014,605
British West Africa5,02736,9513,73432,122
British Guiana1,86610,3351,93213,528
Bermuda2,11323,6711,13515,213
British West Indies65,301422,25165,770495,268
Canada16,70499,92926,035207,548
Fiji1,26714,4671,63417,593
Tonga1,26410,0041,1689,881
Western Samoa1,43610,1861,0738,291
Belgium4032,06233,201230,288
France  1,84613,448
German Federal Republic2021,41830,921218,764
Greece  11,20670,865
Italy32,170218,766146,4311,052,996
Netherlands41,020226,727145,264898,859
Spain  20,574140,582
Russia (U.S.S.R.)3,00019,95050,006371,790
Philippines11,93376,6531,44515,427
Saudi Arabia3,30052,2731092,007
Netherlands Antilles13,590100,96319,479150,749
United States of America10,30068,71317,054147,498
Hawaii2,26318,4907,82569,322
American Samoa2,21919,2032,40521,111
Other countries3,51327,9511,91217,034
      Totals1,190,6337,338,9451,884,82813,451,111
Frozen Lamb and Mutton
 Cwt.£Cwt.£
United Kingdom5,141,32637,307,7014,995,26540,430,959
British West Africa4,61433,7942,89328,029
Northern Rhodesia3,26518,4272,15410,693
Union of South Africa  5,41729,969
Bermuda1,67013,6224,39052,861
British West Indies11,21279,3919,32578,375
Canada37,673344,75537,024307,197
Fiji1,2729,7576,87937,072
Belgium1,7982,37810,40544,005
Greece  37,617122,896
Netherlands85,274242,34333,187103,316
German Federal Republic41,988155,72117,40877,973
Russia (U.S.S.R.)96,585281,226110,716312,533
Egypt  54,092148,336
Panama Canal Zone  1,43212,483
United States of America7,96363,51210,25170,759
Other countries3,45125,7838,44060,851
      Totals5,438,09138,578,4105,346,89541,928,307
United Kingdom165,4841,622,333146,1501,388,121
Hong Kong2,23027,7832,78125,196
Malaya2,11625,5426175,559
Union of South Africa  11,63076,495
British West Indies4,55254,7556,47761,835
Australia9971,68919,226
Fiji7718,9441,03810,509
Belgium  3,99835,182
Russia (U.S.S.R.)4,00037,295  
Netherlands Antilles1,40713,3333,20630,618
Other countries2,25623,8734,73045,295
      Totals182,8251,813,955182,3161,698,036
Other Frozen Meat
 Cwt.£Cwt.£
United Kingdom560,4623,856,264283,8003,340,015
Fiji6,28837,6371,19013,450
Bermuda4,86153,4719709,990
British West Indies12,89499,0814,11630,646
Canada3784,3892,93039,739
Australia2,57519,6715,71332,159
Western Samoa2,46414,6361,0482,908
Italy5,38814,85110,27642,192
Netherlands8234,2682,17610,693
Netherlands Antilles1,87516,5341,51717,938
Other countries6,27953,6516,28752,569
      Totals604,2874,174,453320,0233,592,299
Canned Meat
 Cwt.£Cwt.£
United Kingdom189,0922,995,097135,9942,034,341
Union of South Africa  59011,557
British Guiana3,01939,14299912,787
British West Indies11,686135,2638,890117,979
Canada3,89650,9572,20230,072
Fiji11,626170,5609,441151,719
Tonga7,01197,0646,828107,069
Gilbert and Ellice Islands2,21428,4811,39735,471
Nauru1,54920,2801,33921,495
Western Samoa10,115135,2917,188112,641
New Hebrides2,38832,2843245,146
Society Islands8,969131,8227,738131,583
Tutuila4,27855,0142,10532,130
Other countries81612,4591,90829,150
      Totals256,6593,903,714186,9432,833,140
Butter
 Cwt.£Cwt.£
United Kingdom2,328,31739,234,3842,732,16444,293,623
Hong Kong1,50025,9561,00016,398
Ceylon3005,1821,70029,272
India5,10388,3948,417142,941
Malaya and Singapore2,73247,3505,62296,639
British West Africa2,11938,9501,34524,186
Rhodesia-Nyasaland Federation11,498193,1707,707129,478
British Guiana1,39423,5381,36524,344
Bermuda4,01069,1017,277124,688
British West Indies37,675644,90927,214457,937
Fiji78413,6556,227123,438
Tonga54310,00085615,206
Western Samoa99417,9761,40624,410
Republic of Ireland10,000179,000  
Czechoslovakia  60,2601,048,767
France  19,999361,488
German Federal Republic197,9223,388,121150,4692,621,274
Italy  18,189298,600
Switzerland  19,997333,752
Japan2,38241,796486,525
Philippines8,930154,3149,724168,502
Belgian Congo5,35992,8426,239107,751
Portuguese East Africa1,67728,98760010,364
Netherlands Antilles3,67967,2673,54362,778
Panama Canal Zone1,87535,806  
Panama Republic8,670157,15813,785234,024
Hawaii4,62999,1082,94249,418
Society Islands1,86038,4723867,374
Other countries1,07818,9871,29716,515
      Totals2,645,03044,714,4233,109,77850,829,692
Cheese
 Cwt.£Cwt.£
United Kingdom1,709,36015,370,5681,587,36712,645,121
Bermuda97010,5561,10110,787
British Guiana2,44224,3442,23119,999
Rhodesia-Nyasaland Federation1,78918,26314175
British West Indies26,358298,55323,277238,977
Canada19,763177,37929,859156,292
Australia1,48321,0001,63322,810
Belgium7,00770,936  
Republic of Ireland1,99520,456  
German Federal Republic9,27989,53412,774107,816
United States of America23,962238,24317,355174,653
Other countries3,51240,5283,34536,030
      Totals1,807,92016,380,3601,678,95613,412,660
Milk (Dried, Condensed, etc.)
 Cwt.£Cwt.£
United Kingdom662,6892,940,219597,7441,844,092
India122,570529,358150,9091,003,708
Malaya and Singapore77,206403,92799,940468,649
Hong Kong3,18210,2772,45711,308
Rhodesia- Nyasaland Federation2,77415,6693,83111,750
British West Indies6,52528,3878,15829,920
Canada  20,63066,222
Fiji3,60321,7057,69854,320
Western Samoa1,67013,4252,10416,620
Netherlands  5,80834,513
Denmark  6,00016,050
Philippines3,30312,9224,72116,142
United States of America3,79610,9954841,559
Society Islands7,88853,2514,15926,715
Other countries9,25244,700112,57563,240
      Totals904,4584,091,8351,027,2183,664,808
Edible Tallow
 Cwt.£Cwt.£
United Kingdom127,775451,172157,976565,093
India70,193258,45925,99288,745
Pakistan3,06511,441  
Netherlands19,23467,69410,21934,572
Burma7943,3406,61924,103
Egypt  9,25333,306
Other countries9,39735,6295,30419,083
      Totals230,458827,735215,363764,902
Inedible Tallow
 Tons£Tons£
United Kingdom16,4371,028,53224,1491,455,970
Ceylon48434,87356137,764
India1,21684,63336127,131
Pakistan30619,67518212,809
Malaya  25318,368
Union of South Africa33619,59337423,325
British West Indies1,24783,3831,575102,441
Rhodesia-Nyasaland Federation  31220,244
Australia3,502218,8891,04468,506
Fiji18812,52528018,999
Finland42227,154654,763
Italy70242,36018612,945
Netherlands1,00858,01550931,323
Norway  42525,412
Egypt936,48194063,523
Burma20914,37588658,545
Japan66142,2041,549110,839
Other countries53835,33640326,411
      Totals27,3491,728,02834,0542,119,318
Cattle Hides
 Number£Number£
United Kingdom126,636429,538159,102405,195
India1206085,75213,008
Union of South Africa50099013,55425,563
Australia12,91734,7338,61726,329
Austria19,25169,1159,94021,436
Belgium5001,7196,30911,846
Denmark3,52514,5253,45210,885
Finland5,12514,05813,20428,932
France28,71781,01550,674114,233
German Federal Republic112,746335,93783,434200,278
Republic of Ireland5,72718,2631,5234,401
Italy44,086103,79274,395142,045
Netherlands67,057203,12593,230206,124
Norway2,8579,3964,00011,179
Poland2,8106,18828,29057,341
Sweden3,56712,1801,6504,047
Yugoslavia1,8455,8777,70318,543
Japan46,719176,58661,939190,257
Korea13,00047,178  
French Morocco1,8265,8418,52419,137
Other countries3,1448,40612,31122,259
      Totals502,6751,579,070647,6031,533,038
Calf Skins
 Number£Number£
United Kingdom107,89890,602141,289130,548
Canada40032255,11456,783
Australia63,51460,390381190
Belgium38,85034,94010,5179,327
France21,24519,63022,11919,887
German Federal Republic164,371139,769148,825151,318
Greece2,0001,843  
Netherlands195,478164,49081,96474,632
Italy342,865332,267315,941325,958
United States of America184,345152,429513,513508,142
Other countries8,4007,9726,3764,879
      Totals1,129,3661,004,6541,296,0391,281,664
Sheep Skins (With Wool)
 Number£Number£
United Kingdom410,101498,397305,118348,892
Australia1,523355  
Belgium19,47022,255  
France477,420407,699671,858465,267
Italy151,020127,26050,18632,284
Netherlands5,1962,44240,93724,911
Other countries2,9902,30020,37911,234
      Totals1,067,7201,060,7081,088,478882,588
Sheep Skins (Without Wool)
 Number£Number£
United Kingdom3,175,6361,266,3022,670,7631,000,496
Canada97,51931,365105,13625,152
Belgium497,964242,676519,834195,898
France25,74710,885116,48362,313
German Federal Republic201,55185,523829,984265,325
Italy115,38648,692244,57070,585
Netherlands944,145435,3841,372,458462,300
Sweden56,40019,63566,59414,371
Japan89,50633,8944,0501,729
United States of America12,594,3734,414,20213,783,7073,222,754
Other countries32,80010,17518,1435,191
      Totals17,831,0276,598,73319,731,7225,326,114
Sausage Casings
 lb.£lb.£
United Kingdom3,444,7941,680,0333,560,3742,165,207
Canada1,425,948841,8011,600,8981,202,309
Australia161,61734,313201,29033,246
Denmark41,68931,99733,46430,495
Republic of Ireland16,06011,6753,0802,585
German Federal Republic96,90525,063120,75233,670
United States of America1,620,617549,2141,466,871577,331
Other countries5,5002,63611,8186,363
      Totals6,813,1303,176,7326,998,5474,051,206
Casein
 Cwt.£Cwt.£
United Kingdom70,611587,90393,455762,290
India3202,5681,80013,135
German Federal Republic8,03059,46711,57880,146
Italy9,43463,78632,514217,579
Netherlands5003,5508,01056,257
Japan19,072152,10723,976181,234
United States of America54,091366,62970,799530,661
Other countries8596,0971,2199,856
      Totals162,9171,242,107243,3511,851,158
Apples (Fresh)
 lb.£lb.£
United Kingdom45,692,0001,428,62838,605,6461,206,784
Fiji347,84011,528389,85612,901
Canada1,022,96031,9681,226,40038,325
German Federal Republic2,463,76070,7931,169,20036,538
Other countries144,7105,420182,8366,417
      Totals49,671,2701,548,33741,573,9381,300,965
Seeds (Grass and Clover)
 Cwt.£Cwt.£
United Kingdom76,4441,287,92135,384583,687
Canada2,94366,2231,77938,431
Australia56,706586,98932,092531,639
Republic of Ireland7,389115,6392,54740,267
Belgium1,78017,1805625,007
France1,45522,5631,13823,070
Denmark4,694136,19513387
Sweden1,78348,6171574,863
German Federal Republic7,326104,73393017,749
Netherlands4,97284,2442869,239
United States of America14,478296,8762,18445,364
Uruguay  1,35739,961
Other countries4,28335,2419259,469
      Totals184,2532,802,42179,3541,349,133
Peas (Food)
 Cental£Cental£
United Kingdom118,689214,368151,878224,200
Australia1913624,64413,196
United States of America5,1129,51912,51122,051
Other countries12,93125,37512,01322,649
      Totals136,923249,624181,046282,096
Peas (Garden)
 lb.£lb.£
United Kingdom7,385,300274,1908,068,341319,568
Australia5,453,900213,6506,385,434240,294
Other countries210,3007,902226,5256,195
      Totals13,049,500495,74214,680,300566,057
Wood Pulp
 Tons£Tons£
United Kingdom  2,26492,488
Australia19,583816,66525,0771,038,078
      Totals19,583816,66527,3411,130,566
Timber (Sawn and Hewn)
 Sup. ft.£Sup. ft.£
Australia30,481,421773,53438,463,7541,041,607
Western Samoa97,0064,541289,98216,050
Greece429,41916,628  
Other countries24,5272,10426,4364,093
      Totals31,032,373796,80738,780,1721,061,750
Timber (for Cases, in Shooks)
 Sup. ft.£Sup. ft.£
Australia405,91618,8621,048,34752,647
Fiji355,37117,319490,85724,254
Tonga212,5508,753595,21827,681
Western Samoa1,237,64559,6071,756,31293,633
      Totals2,211,482104,5413,890,734198,215

EXPORTS BY PORTS.—The following table shows for the years 1951–55 the value of total exports according to the ports at which they were actually placed on board the overseas vessels.

While, in the case of imports, goods received through parcels-post are allocated according to ports of entry, similar treatment is not possible in the case of exports. The total of goods exported by parcels-post is accordingly shown under the heading “Parcels-post”.

£

Port19511952195319541955*

* Provisional.

Auckland72,454,12392,278,86885,214,27276,196,67889,300,000
Tauranga327,129143,486481,1041,331,3391,600,000
Gisborne84,7941,042,3701,717,6003,545,7933,300,000
Napier31,026,81524,743,18922,016,56122,214,54326,000,000
New Plymouth12,566,65811,043,66312,890,37813,362,42014,400,000
Wanganui5,8144,311184442 
Wellington50,818,19147,042,85345,644,60654,434,53245,300,000
Wairau (including Picton)73,354  21,930100,000
Nelson706,1481,027,5461,061,987906,4551,100,000
Westport19,07153,817   
Greymouth 137,153252,449145,434200,000
Hokitika 180   
Lyttelton22,760,91924,437,98619,007,79022,751,85521,800,000
Timaru16,521,6179,297,80510,622,84613,095,20014,400,000
Oamaru 3,36358,4639,034 
Dunedin18,782,11912,571,28616,119,59315,034,17718,000,000
Invercargill21,791,57716,558,02020,637,13521,281,94823,300,000
Parcels-post188,843174,808135,079134,426100,000
      Totals248,127,172240,560,704235,860,047244,466,206258,900,000

Auckland occupies a commanding position in the export trade of New Zealand, usually one-third of all exports being contributed by that port. Wellington occupies second place, usually with approximately one-fifth of the trade. As will be seen from the above table, the order of the other ports varies from year to year.

EXPORTS FOR YEARS ENDED 30 JUNE.—As indicated elsewhere in this Section (page 308), farm products account for an extremely high proportion of exports from New Zealand. The farm-production export season fits much more closely to a June year than to a calendar year. The flush of the dairy-production season is spread over the months of October to March, while the whole harvest season, and most of the wool-selling season, occur in the early months of the calendar year. By 30 June in normal times the great bulk of the season's farm produce destined for export is shipped, except held-over wool and a certain amount of dairy produce and frozen meat kept in cool store to equalize shipments. It is desirable, therefore, for some purposes to tabulate New Zealand exports for years ending in June instead of December, a desideratum which, it may be observed, applies to most countries in the Southern Hemisphere.

QUANTITIESOF PRINCIPAL ITEMSOF NEW ZEALAND PRODUCE EXPORTEDFOR YEARS ENDED 30 JUNE 1954–56

Commodity1953–541954–551955–56*

* Provisional.

Mining products—
  Coal(ton)690795735
  Gold(oz.)31,58035,57517,889
  Silver(oz.)3,01644,7363,221
Fishery products—
  Fish(cwt.)79,96068,07566,467
Forest products—
  Kauri gum(ton)269379311
  Timber, sawn(sup. ft.)22,099,05936,239,78035,107,040
  Timber, for cases in shooks(sup. ft.)3,272,4693,063,8654,338,064
  Wood pulp(ton)11,73923,20034,852
Pastoral products—
  Butter(cwt.)2,866,3052,668,9513,215,009
  Casein(cwt.)165,023215,910256,651
  Cheese(cwt.)2,023,5051,363,0051,932,426
  Milk, dried(cwt.)1,071,042742,353934,043
  Milk, preserved(cwt.)140,120125,970110,075
  Sugar of milk(cwt.)75,87663,95674,906
  Eggs, not in shell(lb.)1,600,1861,106,7761,369,982
  Honey(lb.)1,412,0032,790,5673,912,243
  Beef, chilled(cwt.)51,418340,860378,331
  Beef, frozen(cwt.)1,065,946844,8141,378,873
  Lamb, frozen (whole carcases)(cwt.)3,734,9323,754,6264,583,750
  Mutton, frozen (whole carcases)(cwt.)1,374,2931,152,0421,210,758
  Pork, frozen(cwt.)229,139114,737206,496
  Veal, frozen(cwt.)57,39644,906207,231
  Other frozen meat(cwt.)365,635455,173452,676
  Meat, canned(cwt.)284,362218,896153,029
  Meat extract(lb.)1,433,6081,802,980599,536
  Sausage casings(lb.)7,055,0897,011,4306,829,415
  Liver meal(cwt.)43,30949,05936,911
  Inedible offals(cwt.)41,74438,31259,911
  Calf skins(number)1,027,5351,077,4331,279,083
  Cattle hides(number)458,482547,957714,243
  Rabbit skins(number)2,249,129270,349532,955
  Opossum skins(number)371,971306,545413,556
  Sheep skins, with wool(number)1,183,355946,8011,041,708
  Sheep skins, without wool(number)18,247,13818,566,30419,612,458
  Woollb. (000)384,512392,850404,944
  Edible tallow(cwt.)284,332215,949195,086
  Inedible tallow(ton)33,54124,76933,100
Agricultural products—
  Apples(lb.)49,714,55939,744,02255,211,482
  Hops(lb.)352,847192,624278,750
  Potatoes(ton)1,4682,4073,418
  Onions(ton)9171,5262,959
  Canned vegetables(lb.)7,445,3529,224,8068,879,170
  Peas(cental)239,929292,753297,454
  Seeds, grass and clover(cental)185,797161,20783,946

VALUESOF PRINCIPAL ITEMSOF NEW ZEALAND PRODUCE EXPORTED YEARS ENDED 30 JUNE 1954–56

£

Commodity1953–541954–551955–56*

* Provisional.

Mining products—
  Coal3,9644,6534,538
  Gold384,112415,985211,866
  Silver93013,309965
Fishery products—
  Fish1,227,5001,377,1151,376,325
Forest products—
  Kauri gum34,96643,61438,776
  Timber, sawn573,996952,783961,219
  Timber, for cases in shooks158,798144,665223,529
  Wood pulp483,626964,2101,485,272
Pastoral products—
  Butter47,049,80246,796,71753,192,875
  Casein1,270,4241,644,7531,987,198
  Cheese18,617,84611,044,89319,896,245
  Milk, dried5,089,8242,537,7693,603,893
  Milk, preserved711,604601,919530,692
  Sugar of milk338,035265,841328,678
  Eggs, not in shell197,25888,423172,843
  Honey72,543141,526204,429
  Beef, chilled383,6982,774,1662,778,777
  Beef, frozen5,983,7005,506,1508,616,282
  Lamb, frozen (whole carcases)28,761,41034,137,01242,515,003
  Mutton, frozen (whole carcases)4,355,9604,121,8784,705,264
  Pork, frozen2,210,5251,135,4031,951,046
  Veal, frozen360,486415,8321,645,950
  Other frozen meat2,469,8134,262,8204,605,928
  Meat, canned4,617,4193,306,3582,298,522
  Meat extract574,513417,637155,359
  Sausage casings3,034,5053,727,3494,371,511
  Liver meal116,566149,735136,763
  Inedible offals219,220311,253284,381
  Calf skins1,025,773915,4411,287,305
  Cattle hides1,603,3331,506,1171,941,193
  Rabbit skins54,2853,9767,737
  Opossum skins152,47879,276152,357
  Sheepskins, with wool1,155,606912,782836,008
  Sheepskins, without wool7,145,2765,267,2206,256,163
  Other hides and skins109,275129,616262,202
  Wool86,792,01388,928,31387,813,513
  Edible tallow855,260799,848706,578
  Inedible tallow1,788,5011,692,9922,046,955
Agricultural products—
  Apples1,557,5661,244,0411,727,292
  Hops80,05747,68968,233
  Potatoes48,69957,082105,833
  Onions41,75156,35086,262
  Canned vegetables334,707481,667444,215
  Peas678,067854,795746,156
  Seeds (grass and clover)1,952,1832,782,7961,206,065
Other New Zealand produce4,984,1294,608,9273,942,466
      Totals, New Zealand produce239,661,002237,672,696267,920,662

RE-EXPORTS.—Until recent years the forwarding trade of New Zealand has never been of great significance. In most years, ships' and international aircraft stores, in which aviation spirit and bunker and lubricating oils loom largely, make up between a third and a half of the total re-exports. The balance is mainly comprised of various classes of machinery and metal manufactures, motor spirits, textiles, and cinematograph films. Munitions and war stores comprised the bulk of the large totals for the later war years.

There is a genuine entrepôt trade with the islands of the Pacific, the amount of which is, however, comparatively small. Exports to Cook Islands and Niue, which are treated as part of New Zealand, are not included in the figures of either exports or re-exports.

Particulars of re-exports over a period of twenty-one years are contained in the next table. Specie is not included in the figures.

 £

* Provisional.

1935486,648
1936488,135
1937505,322
1938575,657
1939601,286
1940767,597
1941532,477
1942739,063
19431,627,900
19446,105,148
19453,114,747
1946994,612
19471,703,235
19481,354,856
19491,194,463
19501,420,140
19511,732,955
19522,141,980
19532,386,391
19542,093,328
1955*2,157,873

The destination of this re-export trade for the last three years is shown in the following table.

£

Country195319541955*

* Provisional.

United Kingdom294,757287,485472,972
Hong Kong2,2213,0553,000
Malaya265,86473,39918,697
Union of South Africa46,89520,8293,793
Canada3,9874,0425,769
Australia746,755628,696613,309
Fiji131,404148,893187,546
Gilbert and Ellice Islands6,1566,85414,065
Nauru Island8,2469,43617,800
Norfolk Island11,78013,4999,485
Solomon Islands5,5106261,504
Tonga27,97030,24724,018
Western Samoa55,56567,73172,063
German Federal Republic12,49210,75021,797
Belgium1341,5764,070
France. 91010,8732,036
Sweden2,6714,4552,357
Switzerland3,6985,9915,266
Japan1191,73027,895
United States of America112,17154,11257,013
Society Islands4,6793,70838,459
French Indo-China 97,000 
Other countries13,09715,21335,360
Ships' stores629,310593,128519,599
      Totals (excluding specie)2,386,3912,093,3282,157,873

EXPORTS TO COOK ISLANDS AND NIUE.—Trade with the Cook and associated Pacific Islands is not regarded as external to New Zealand, but merely as interchange between different parts of the country, and it is therefore not included in the account of the external trade. The trade of these islands with other countries is also omitted from New Zealand trade statistics. Separate returns are made of the transactions between New Zealand and these islands, and exports to the islands are summarized below.

£

YearExports

* Provisional.

1945133,012
1946166,496
1947254,461
1948291,227
1949278,471
1950210,066
1951525,100
1952478,290
1953490,440
1954559,775
1955*570,347

Further particulars regarding the trade of the islands will be found in Section 43, Island Territories.

10 C—IMPORTS

THE statistics of imports are compiled from entries passed at the Customs. The value shown for all merchandise imported is, for the purpose of this Section, now based on the current domestic value in the country of export at the time of exportation. Import values are expressed in terms of New Zealand currency. In Section 10A will be found (in conjunction with export figures) a summary of import totals for recent years, expressed both in New Zealand currency and in sterling, together with a series of index numbers on import prices and of the volume of import trade. Import totals are exclusive of specie, except where the contrary is expressly stated. Reference should be made to Section 10A for details of the system of valuation of imports as now used in these tables.

IMPORT CONTROL.—Reference to import control is made in Section 10A.

CLASSIFICATION OF IMPORTS.—The table following, classifying imports by broad divisions, is based on a grouping of the divisions given in the subsequent table. It illustrates the great variety of imports which New Zealand receives in exchange for its few basic exports. The headings used in this table differ from those used in earlier issues of the Year-Book on account of the change made in 1955 to the use of the Standard International Trade Classification, and no precise comparisons can be made with values under the headings formerly in use.

£(000)

Calendar YearImports (c.d.v.)
Food, Beverages, and TobaccoMineral FuelsChemicals, Including Manufactured FertilizersBase Metals and Manufactures of MetalMachinery and Transport EquipmentTextiles, Clothing, and FootwearTotal*

* Including divisions not listed.

194912,8537,0105,06815,29727,80723,238109,121
195017,53810,2147,74016,77236,40030,956143,585
195121,43910,74310,15120,08646,22643,607187,758
195223,71515,07412,16634,15566,67235,157229,447
195319,74113,0678,09722,87147,00723,573163,613
195424,82914,96413,23727,13561,48935,272213,155
195526,22616,55115,80135,16575,45637,229250,661

Since 1914 the statistics of both imports and exports have been classified according to the nature of the commodity, the items being assembled in well-defined classes. In January 1949 the list of individual trade items within each class recorded for statistical purposes was greatly extended, and the contents of a few of the classes were slightly altered. At the same time a mechanical (punched card) system of compiling trade statistics was installed by the Customs Department.

In Section 10A is a description of the change made in the classification of New Zealand trade for statistical purposes as from 1 January 1955, when the Standard International Trade Classification was brought into use. Figures for several years prior to 1955 have been rearranged to show the values for the Sections and Divisions of the S.I.T.C. as they would have appeared had that classification been in use during the period.

The following table gives such information for the years 1953–55, together with c.i.f. valuations for the year 1955.

£(000)

Section and DivisionValuation c.d.v.Valuation c.i.f.
1953195419551955
Sect. 0. Food
  Div. 00 Live animals chiefly for food47636380
  Div. 01 Meat and meat preparations139139242256
  Div. 02 Dairy produce, eggs, and honey17163436
  Div. 03 Fish and fish preparations1638401,2871,405
  Div. 04 Cereals and cereal preparations5,5925,3975,7386,887
  Div. 05 Fruits and vegetables3,6994,3644,2045,094
  Div. 06 Sugar and sugar preparations3,4164,7094,5065,104
  Div. 07 Coffee, tea, cocoa, spices, and manufactures thereof3,1154,5464,0865,557
  Div. 08 Feeding stuff for animals (not including unmilled cereals3666224299
  Div. 09 Miscellaneous food preparations7365163174
      Totals, Section 016,29520,20720,54624,890
Sect. 1. Beverages and Tobacco
  Div. 11 Beverages1,8422,0892,6543,103
  Div. 12 Tobacco and tobacco manufactures1,6032,5323,0263,364
      Totals, Section 13,4454,6215,6796,467
Sect. 2. Crude Materials, Inedible, Except Fuels
  Div. 21 Hides, skins, and fur skins, undressed97916771
  Div. 22 Oil seeds, oil nuts, and kernels312366265321
  Div. 23 Crude rubber, including synthetic and reclaimed1,0391,2052,2402,391
  Div. 24 Wood, lumber, and cork1,7581,5782,3123,341
  Div. 25 Pulp and waste paper306241256309
  Div. 26 Textile fibres (not manufactured into yarn, thread, or fabrics and waste)411714851943
  Div. 27 Crude fertilizers and crude minerals, excluding coal, petroleum, and precious stones2,3793,0823,3256,930
  Div. 28 Metalliferous ores and metal scrap8568
  Div. 29 Animal and vegetable crude materials, inedible, n.e.i.7341,1031,3211,444
      Totals, Section 27,0448,38510,64215,759
Sect. 3. Mineral Fuels, Lubricants, and Related Materials
  Div. 31 Mineral fuels, lubricants, and related materials13,06714,96416,55121,490
      Totals, Section 313,06714,96416,55121,490
Sect. 4. Animal and Vegetable Oils and Fats
  Div. 41 Animal and vegetable oils (not essential oils), fats, greases, and derivatives367423710810
      Totals, Section 4367423710810
Sect. 5. Chemicals
  Div. 51 Chemical elements and compounds1,6702,8253,6844,295
  Div. 52 Mineral tar and crude chemicals from coal, petroleum, and natural gas195982127
  Div. 53 Dyeing, tanning, and colouring materials6131,0381,2971,491
  Div. 54 Medicinal and pharmaceutical products1,7242,1902,9112,938
  Div. 55 Essential oils and perfume materials, toilet, polishing, and cleansing preparations3927621,2711,215
  Div. 56 Fertilizers, manufactured9661,6831,5822,451
  Div. 59 Explosives and miscellaneous chemical materials and products2,7134,6814,9745,194
      Totals, Section 58,09713,23715,80117,713
Sect. 6. Manufactured Goods Classified Chiefly by Material
  Div. 61 Leather, leather manufactures n.e.i., and dressed furs6631,0711,1081,147
  Div. 62 Rubber manufactures n.e.i.1,2232,0201,3861,313
  Div. 63 Wood and cork manufactures (excluding furniture)4286931,0861,404
  Div. 64 Paper, paperboard, and manufactures thereof4,8465,6297,5219,064
  Div. 65 Textile yarn, fabrics, made-up articles, and related products21,25231,45333,02035,816
  Div. 66 Non-metallic mineral manufactures n.e.i.3,4424,2084,9926,907
  Div. 67 Silver, platinum, gems, and jewellery440553791823
  Div. 68 Base metals13,88517,79123,89328,132
  Div. 69 Manufactures of metal8,9869,34311,27212,314
      Totals, Section 655,16572,76285,06896,920
Sect. 7. Machinery and Transport Equipment
  Div. 71 Machinery other than electric21,83727,37030,89232,749
  Div. 72 Electric machinery, apparatus, and appliances11,53512,25815,07416,417
  Div. 73 Transport equipment13,63421,86129,48932,481
      Totals, Section 747,00761,48975,45681,647
Sect. 8. Miscellaneous Manufactured Articles
  Div. 81 Prefabricated buildings, sanitary, plumbing, heating and lighting fixtures, and fittings1,1566901,3301,467
  Div. 82 Furniture and fixtures126185304340
  Div. 83 Travel goods, handbags, and similar articles2872159175
  Div. 84 Clothing1,9283,2813,6493,857
  Div. 85 Footwear393538561610
  Div. 86 Professional, scientific, and controlling instruments; photographic and optical goods, watches, and clocks2,4593,2704,1454,147
 6,5538,4469,39210,108
      Totals, Section 812,64116,48119,54120,703
Sect. 9. Miscellaneous Transactions and Commodities n.e.i.
  Div. 92 Live animals, not for food62638094
  Div. 93 Returned goods and special transactions46527577
  Div. 95 Unclassified goods under £10 in value365453499551
  Div. 99 Gold13161314
      Totals, Section 9486584667735
      Grand totals, merchandise imports163,613213,155250,661287,134

The next classification presented is that according to the purpose or use of commodities, particulars being given for the years 1947. 1953, 1954, and 1955. It should be mentioned that the absence of essential information in regard to actual purpose or use of a number of commodities has created certain difficulties, necessitating the employment of arbitrary decisions in some instances. Where certain commodities are used for more than one purpose it has not been possible to segregate the portion applicable to each. In such cases the whole import has been assessed according to the principal use of the article or commodity in New Zealand.

£(000)

Class of Merchandise1947195319541955
Producers' materials—
  Building and construction5,0139,71012,62211,664
  Farm2,5193,5725,4116,000
Manufacturing—
  Food7,12210,25311,44711,294
  Beverages2396961,305830
  Tobacco1,1091,3982,0712,059
  Textiles (apparel or household goods)20,34615,30823,14523,555
  Other20,43827,55837,11754,535
  Fuels and lubricants6,42112,73614,46715,960
  Auxiliary aids to production3,4733,0633,4173,823
Producers' equipment—
  Farm2,1405,5917,4007,507
  Commerce and industry16,60225,73629,32837,230
Transport equipment—
  Railway1,4263,4852,3054,511
  Road12,79911,61820,06223,627
  Other2867051,5461,536
Consumers' goods—
  Food2,5523,8545,3665,964
  Beverages3,0684,0194,9975,509
  Tobacco1,9802605231,045
  Clothing and accessories4,7173,1884,9444,989
  Household equipment3,8356,1439,46712,357
  Other8,29112,07714,26014,996
Unclassified1,2642,6421,9551,671
      Totals, merchandise imports128,641163,613213,155250,661

In the next table particulars are given of New Zealand's import trade for the years 1947, 1953, 1954, and 1955 according to the state of production or degree of manufacture of commodities, the divisions used, following the classification of the former League of Nations, being “crude”, “simply transformed”, and “more elaborately transformed”.

£(000)

1947195319541955

* Including unclassified items.

Producers' materials—
  Crude8,92912,69914,82716,441
  Simply transformed12,89721,84329,38836,725
  More elaborately transformed34,96033,95248,90356,771
Fuels and lubricants—
  Crude1,8148326
  Simply transformed4,60712,72714,46415,933
More elaborately transformed    
Auxiliary aids to production—
Crude    
Simply transformed  18 
  More elaborately transformed3,4733,0633,3993,823
Producers' equipment—
  Crude89747563
  Simply transformed88120689957
  More elaborately transformed18,56631,13335,96343,716
Transport equipment—
Crude    
  Simply transformed5761,4691,1411,124
  More elaborately transformed13,93514,33922,77228,549
Consumers' goods—
  Crude3,8324,4865,0995,516
  Simply transformed250452523322
  More elaborately transformed24,62524,60433,93639,022
Total merchandise imports*
  Crude14,66417,30620,00422,049
  Simply transformed18,41836,69446,22455,062
  More elaborately transformed95,559109,613146,927173,550
      Totals, all merchandise*128,641163,613213,155250,661

An indication of the changes that have occurred during the same period is contained in the next table, which gives the figures for each of the divisions as percentages of total imports.

Per Cent

1947195319541955

* Including unclassified items.

Producers' materials—
  Crude6.97.87.06.6
  Simply transformed10.013.413.814.7
  More elaborately transformed27.220.822.922.6
Fuels and lubricants—
  Crude1.4   
  Simply transformed3.67.86.86.4
More elaborately transformed    
Auxiliary aids to production—
  Crude    
  Simply transformed    
  More elaborately transformed2.71.91.61.5
Producers' equipment—
  Crude    
  Simply transformed 0.10.30.4
  More elaborately transformed14.419.016.917.4
Transport equipment—
  Crude    
  Simply transformed0.40.80.50.4
  More elaborately transformed10.88.810.711.4
Consumers' goods—
  Crude302.72.42.2
  Simply transformed0.20.30.20.1
  More elaborately transformed19.115015.915.6
Total merchandise imports—
  Crude11.410.69.48.8
  Simply transformed14.322.421.722.0
  More elaborately transformed74.367.068.969.2
      Totals, all merchandise*100.0100.0100.0100.0

It will be noted that, despite the changes which have taken place over the last few years in the total value of imports, the proportions of the various classes of goods have not shown marked change.

DIRECTION OF IMPORT TRADE.—The United Kingdom has been the chief supplier of New Zealand imports since the “eighties” of last century. Prior to that the main supply was from Australia. In the years following the Second World War, the proportion of the import trade received from the United Kingdom rose from 47.8 per cent in 1946 to a maximum of 60.1 per cent in 1950. Since 1950 there has been a decline, and in 1955 only 550 per cent of imports came from that source. The trade with Australia in most recent years has been between 10 and 14 per cent of the total.

The principal changes in the direction of the import trade are illustrated in the table in Section 10A giving the percentages received from the United Kingdom, other Commonwealth countries. European, and other countries. It will be seen that European countries arc now playing a greater part in providing New Zealand's import requirements.

The table which follows shows imports (valuation c.d.v.) during the last eleven years from the United Kingdom, other British Commonwealth countries, and other countries.

£

YearCountry of ShipmentCountry of OriginTotal Merchandise Imports
United KingdomOther British Commonwealth CountriesOther CountriesUnited KingdomOther British Commonwealth CountriesOther Countries
194517,920,37616,948,01315,211,77518,038,99216,648,13315,393,03950,080,164
194631,061,18819,631,76414,371,89631,079,07419,336,63114,649,14365,064,848
194750,323,51536,085,56230,537,12850,006,54535,700,86931,'238,791116,946,205
194861,309,64532,463,09623,076,57961,006,47432,028,30723,814,539116,849,320
194960,516,62729,507,03519,097,67659,976,32228,509,71420,635,302109,121,338
195087,583,19433,253,97522,747,26486,240,94132,353,07524,990,417143,584,433
1951102,804,11747,946,23937,007,385100,620,06446,429,15540,708,522187,757,741
1952129,213,35750,855,50849,378,444125,990,76048,734,38654,722,163229,447,309
195393,496,32241,620,73628,496,24292,352,43040,768,16830,492,702163,613,300
1954122,009,95752,026,87530,118,205120,714,08351,002,44141,438,513213,155,037
1955140,539,65859,786,54150,334,797137,830,90459,452,77253,377,320250,660,996

The next table shows in more detail the principal countries from which New Zealand draws its imports, figures on the basis of country of origin being given for the years 1953 to 1955.

£

Country195319541955
British Commonwealth Countries, Protected States, and Trust Territories
Europe—
  United Kingdom92,352,430120,714,083137,830,904
  Gibraltar, Malta, and Gozo8,62914,46820,812
Asia—
  Aden Colony and Aden Protectorate1,6815,6401,010,524
  Bahrain2,889,2032,438,5262,863,759
  British Borneo511,82276,132110,957
  Ceylon1,944,4812,647,3882,505,910
  Malaya and Singapore3,057,1844,814,5684,428,912
  Hong Kong218,886470,050993,993
  India1,797,5192,734,2983,234,982
  Pakistan40,31145,76144,590
  Other6614,99564
Africa—
  Anglo-Egyptian Sudan9,81117,31721,744
  British West Africa449,575990,563579,409
  Kenya and Uganda131,517220,731230,475
  Rhodesia-Nyasaland Federation1,9467,81364,429
  Seychelles 87,064155
  Swaziland, Bechuanaland, Basutoland1,92560336,400
  Tanganyika Territory44,903103,022184,423
  Union of South Africa1,085,8721,209,941956,141
  Zanzibar5,8515,8764,198
  Other5605436,462
America—
  British Guiana7,8896,08024,648
  British West Indies442,665307,850369,121
  Canada2,287,0604,380,3548,360,087
  Other1214063
Pacific—
  Australia23,637,70727,491,85230,477,914
  Fiji1,378,9751,842,0691,721,974
  Gilbert and Ellice Islands67,196112,800120,572
  Nauru Island411,631495,239626,224
  New Zealand (re-imports)40,98366,68748,262
  Tonga42,52042,84465,719
  Western Samoa246,133357,845328,560
  Other3,0603,38211,289
      Totals, British Commonwealth countries133,120,598171,716,524197,283,676
Other Countries
Europe—
  Austria585,349243,732560,529
  Belgium and Luxemburg1,484,0191,706,5072,368,041
  Czechoslovakia169,960180,295284,283
  Denmark294,170225,699426,087
  Finland74,48990,721214,724
  France1,969,7961,765,3621,938,660
  German Federal Republic1,971,3794,363,1776,868,459
  Germany, Eastern261,232277,42982,906
  Greece1,8433,7792,768
  Republic of Ireland28,47016,90015,728
  Italy875,1851,145,4101,190,963
  Netherlands1,145,1472,297,2372,411,099
  Norway422,150636,926792,031
  Poland8751,3744,495
  Portugal116,533141,722302,071
  Russia (U.S.S.R.)47,648150,90438,719
  Spain71,073112,019144,036
  Sweden1,978,7221,666,2842,259,436
  Switzerland1,372,6831,402,7241,569,163
  Other4,5492,26010,798
Asia—
  Burma1,7692,1527,811
  China201,014224,864288,865
  Formosa260,1888,16516,956
  Indonesia2,741,0392,431,0054,634,457
  Iran3,8064,235869,902
  Iraq76,055120,751125,500
  Japan388,2861,065,2492,523,794
  Philippines15,50335,41431,187
  Saudi Arabia602,41033,682503,760
  Thailand31,3823,70548,536
  Turkey45,96930,98442,392
  Other3,17412,85317,362
Africa—
  Algeria10,1989,9896,829
  Belgian Congo2,0852,8482,806
  Ethiopia34,63628,54338,036
  French Morocco4,5221,7726,939
  Tunisia120,86798,15846,765
  Other9,2428,6796,363
America—
  Argentina93743,06033,339
  Brazil66,28167,70188,883
  Chile65,05360,115105,095
  Cuba2098,829 
  Ecuador3,4639,2667,483
  Mexico3,0854,93111,170
  Netherlands Antilles141,4432,324,524955,928
  Peru1,079267,296150,230
  United States of America12,142,80617,471,60121,304,817
  Venezuela635,939520,384 
  Other1,3213,7496,553
Pacific Islands3,8588,54810,566
      Totals, other countries30,492,70241,438,51353,377,320
      Totals, all countries163,613,300213,155,037250,660,996

The following table shows for the last eleven years the percentage of the value of total imports (excluding specie) received from each of the principal countries trading with New Zealand.

IMPORTS (COUNTRYOF ORIGIN)

Per Cent

Country19451946194719481949195019511952195319541955
United Kingdom36.0247.7742.7652.2155.1360.0653.5954.9156.4556.6354.99
Bahrain 0.610.851.001.261.071.001.171.771.141.14
Ceylon1.582.041.521.851.411.261.840.591.191.241.00
India4.792.963.662.822.551.413.211.021.101.281.29
Pakistan0.010.020.040.010.020.020.02
Malaya and Singapore 0.030.390.570.750.931.970.781.872.261.77
Union of South Africa0.450.310.380.560.400.620.830.550.660.580.38
Canada9.256.519.035.383.872.262.983.521.402.063.34
Australia15.1114.5611.6111.1312.7912.0510.2910.6214.4512.9012.16
Fiji0.951.751.691.720.770.710.541.020.840.860.69
Other British Commonwealth countries1.110.951.402.382.192.212.031.961.61.591.93
      Totals, British Commonwealth countries69.2677.4973.2979.6281.1382.6078.3276.1581.3780.5678.71
Belgium 0.341.901.191.550.711.442.020.900.790.94
France 0.100.680.730.340.771.131.581.200.830.77
German Fed. Rep.  0.020.070.280.140.700.991.202.052.74
Netherlands 0.080.470.280.210.380.590.990.701.080.96
Sweden0.230.700.891.190.560.780.921.361.210.780.90
Iran0.500.641.471.701.492.311.270.09  0.35
Japan   0.050.300.301.181.640.240.501.01
Indonesia 0.010.021.261.932.131.952.131.681.141.85
Netherlands Antilles1.050.41    0.130.550.091.090.38
Peru3.011.240.02      0.130.06
United States of America23.7216.4118.1310.799.627.299.389.267.428.208.50
Tuamotu Archipelago1.131.130.600.430.540.37     
Other countries1.101.452.512.692.052.222.993.243.992.852.83
      Totals, other countries30.7422.5126.7120.3818.8717.4021.6823.8518.6319.4421.29

It will be seen that the great bulk of New Zealand's imports of merchandise are of Commonwealth origin, the average proportion for the post-war years being 79 per cent.

Origin of Principal Imports.—The table which follows shows by main countries of origin details of the principal imports into New Zealand for the years 1953–55.

£(000)

Country of Origin195319541955
Canned Fish
United Kingdom3080108
Union of South Africa4612126
Canada 191799
German Federal Republic  7
Norway30118123
Portugal9 1
Russia (U.S.S.R.) 110 
Japan 14911
United States of America 68
Other countries16125
      Totals1317871,088
Canned Fruit
United Kingdom72514
Malaya357
Kenya and Uganda71924
Union of South Africa204188130
Australia390780593
Fiji424265
Netherlands  9
Other countries 88
      Totals6531,067850
Dried Fruits
Union of South Africa505510
Australia758886882
Netherlands18  
Spain39 
Iraq76120125
Turkey18724
United States of America  144
Other countries875
      Totals9311,0841,190
Bananas
Fiji116115101
Tonga333550
Western Samoa86107199
      Totals235257350
Oranges
Union of South Africa1179122
British West Indies1489999
Australia562497479
United States of America  47
Other countries121
      Totals828689648
Peanuts
Kenya and Uganda4139
Union of South Africa1458859
Australia 1237
Fiji4 1
China  3
India8 28
Indonesia13409
Other countries3 12
      Totals177153158
Wheat
Australia5,1654,8434,920
Raw Sugar
Australia1,7232,4172,567
Fiji1,1741,6061,454
Formosa252  
Cuba 99 
Peru 220 
      Totals3,1494,3424,021
Cocoa Beans (Raw)
Ceylon5  
British West Africa443933548
Western Samoa173921
      Totals465972569
Coffee Beans
Aden153
Kenya and Uganda118135101
Tanganyika365455
Indonesia15609
Brazil631
Other countries71222
      Totals183269191
Tea
Ceylon1,7952,5132,405
India241219249
China537
Indonesia58818
Other countries 15
      Totals2,0992,7442,684
Beverage Spirits
United Kingdom1,2981,5921,942
Union of South Africa1 5
Canada1 17
British Guiana5511
British West Indies242332
Australia392525
Denmark74 
France236205255
Republic of Ireland711
Netherlands233332
Other countries11212
      Totals1,6521,8902,332
Cigarettes
United Kingdom140371737
Australia  131
Netherlands479
Switzerland201714
Other countries633
      Totals170398894
Tobacco
United Kingdom111719
Netherlands456
Indonesia125
United States of America1,3972,0692,053
Other countries124
      Totals1,4142,0952,087
Wool
United Kingdom464459
Australia151314102
Other countries  1
      Totals197358162
Kapok
Ceylon81115
India244138
Indonesia231225126
Thailand  32
Other countries  2
      Totals263277213
Hat Hoods
United Kingdom170152157
Czechoslovakia152923
France372033
Italy556265
Switzerland854
China81517
Formosa469
Ecuador176
Other countries31615
      Totals301312329
Hosiery
United Kingdom8281,2961,189
Hong Kong  7
German Federal Republic 89
Other countries189
      Totals8291,3121,214
Gloves
United Kingdom134221197
Malta81416
Hong Kong13657
Czechoslovakia315
France92116
German Federal Republic238276
Italy222326
Other countries651
      Totals206403394
Infants Wear
United Kingdom226332687
Hong Kong 28124
Portugal277
Other countries338
      Totals231370826
Footwear
United Kingdom361475460
Hong Kong31120
India41013
Malaya3617
France  7
Italy71422
Netherlands91418
Other countries684
      Totals393538561
Made-up Household Linen
United Kingdom6641,001990
Hong Kong21315
India276030
Canada 36
Australia482
Belgium and Luxemburg267
German Federal Republic 814
Netherlands31917
Japan 2547
Other countries1718
      Totals7031,1501,146
Cheese Bandages and Meat Wraps
United Kingdom843680986
India1917
Other countries  3
      Totals8446891,006
Knitted Cotton Piece-goods
United Kingdom132419
Other countries 43
      Totals132822
Woven Cotton Piece-goods
United Kingdom3,9995,5745,608
Hong Kong11426
India450741664
Canada168
Australia43378
Austria73824
Belgium and Luxemburg103200118
Czechoslovakia4223
France214649
German Federal Republic37198201
Italy146245
Netherlands101225132
Spain 523
Switzerland104214135
Japan 35179
United States of America2160206
Other countries 840
      Totals4,8877,5657,489
Household Linen Fabrics
United Kingdom296342254
Other countries131
      Totals297345255
Rayon Piece-goods
United Kingdom2,1532,1922,214
Canada11510
Australia72161104
Austria449
Belgium and Luxemburg41116
France151162136
German Federal Republic136344793
Italy208296190
Netherlands184454
Switzerland10911578
Japan16154264
United States of America 26155
Other countries 33
      Totals2,8723,5274,026
Nylon Piece-goods
United Kingdom547811798
Canada 127
Australia11114
France31035
German Federal Republic1720
Italy188065
Netherlands2811
Switzerland93935
Japan 19100
United States of America 64188
Other countries117
      Totals5821,0621,280
Woollen Piece-goods
United Kingdom2,9554,3593,684
Australia15108
Belgium and Luxemburg152817
France116
German Federal Republic149
Italy11020
Other countries483
      Totals2,9924,4203,747
Jute and Hessian Piece-goods
United Kingdom277087
India268337460
Other countries 1 
      Totals295408547
Bags, Sacks, and Wool-packs
United Kingdom3102
India4379161,134
Australia31  
Other countries314
      Totals4749271,140
Woollen Carpets (Rolls, Squares, and Rugs)
United Kingdom1,2871,8892,111
India93023
Australia62317
Belgium and Luxemburg5268
Other countries6117
      Totals1,3131,9792,166
Linoleum and Congoleum
United Kingdom670782796
India132327
German Federal Republic  7
Other countries  15
      Totals683805845
Cotton Threads
United Kingdom303521641
Australia5918
Other countries 12
      Totals308531661
Cotton Yarn
United Kingdom397582571
Hong Kong3311
Australia52545
Netherlands  12
Other countries  4
      Totals405610643
Synthetic Yarn
United Kingdom259499585
Australia4128
Belgium63 
France3128
German Federal Republic2853
Netherlands91424
Switzerland5136
United States of America 239
Other countries635
      Totals320563678
Wool Yarn
United Kingdom9191,2771,193
Australia565021
Other countries  3
      Totals9751,3271,217
Motor and Aviation Spirit
United Kingdom425911 
Aden  670
Bahrain2,3401,9722,440
India  128
British Borneo395  
Malaya1,0801,442828
Australia  754
France299111 
German Federal Republic5035 
Italy10126 
Netherlands 270 
Indonesia1,4971,0332,555
Iran  740
Saudi Arabia537 431
Netherlands Antilles792,017935
Peru  22
Venezuela626520 
United States of America1,318668384
Other countries111
      Totals8,7489,0069,888
Kerosene
Bahrain562217
Malaya 5842
Indonesia149104177
Iran  10
Netherlands Antilles1266 
Other countries 2 
      Totals217252246
Diesel and Fuel Oils
United Kingdom530585 I 
Aden  256
Bahrain488351407
British Borneo26 51
Malaya5241,5611,040
British West Indies41  
Australia117407
Belgium and Luxemburg45  
France27059 
Italy725 
Indonesia6297521,539
Iran  116
Saudi Arabia643373
Netherlands Antilles2923518
Peru 44126
United States of America2686421
Other countries2 1
      Totals2,9243,7264,055
Lubricating Oils
United Kingdom115393389
Australia4178
Belgium and Luxemburg 723
Netherlands Antilles74 
United States of America6318761,096
Other countries2 2
      Totals7591,2971,518
Linseed Oil
United Kingdom 133269
India27 27
Australia 1342
Argentina 4333
United States of America  27
Other countries 35
      Totals27192403
Gypsum
Australia354656
Other countries 41
      Totals355057
Cement
United Kingdom274321388
Australia5235555
Belgium and Luxemburg53318246
Japan213344254
United States of America84/
Other countries1 1
      Totals1,0811,206751
Iron and Steel—Pipes, Tubes, and Fittings
United Kingdom1,0551,1911,315
Union of South Africa92038
Canada1 143
Australia263319905
German Federal Republic4420
Netherlands 315
United States of America9213
Other countries4810
      Totals1,3451,5472,459
Iron and Steel—Plate, Sheet, Hoop, and Strip
United Kingdom3,4894,8206,845
Union of South Africa 5110
Canada 246
Australia9721,065696
Belgium and Luxemburg141732
France1411
German Federal Republic4815
Netherlands 6 
Japan16147
United States of America18971203
Other countries422
      Totals4,6896,0477,907
Iron and Steel—Wire (excepting Barbed-wire)
United Kingdom2761,1881,329
Australia564535435
Belgium and Luxemburg9266493
France7373
German Federal Republic1281
Japan22196
United States of America91016
Other countries2 3
      Totals9531,8062,626
Iron and Steel—Bars, Rods, Billets, Bloom, and Pig
United Kingdom5471,2811,691
Hong Kong 9181
Canada3318
Australia883682459
Belgium and Luxemburg737141
France6128
German Federal Republic1 8
Italy  6
Netherlands193
Japan7 595
United States of America42 128
Other countries 14
      Totals1,4972,0233,262
Iron and Steel—Angles, Tees, Girders, and Channels
United Kingdom5577051,295
Australia168164125
Belgium and Luxemburg7632
Denmark  5
France2 39
Netherlands 819
Japan1 4
United States of America71921
Other countries   
      Totals8068921,540
Aluminium and its Alloys
United Kingdom750613926
Canada17038891
Australia122648
German Federal Republic 612
Netherlands95178117
Switzerland72212
United States of America319
Other countries433
      Totals1,0411,2371,218
Copper
United Kingdom1,1581,6151,545
Rhodesia-Nyasaland Federation  8
Union of South Africa71317
Canada167121552
Australia37146204
Japan1 1
United States of America222
Other countries 1 
      Totals1,3721,8982,329
Tin
United Kingdom13824
Malaya200211199
Australia289280
Other countries2  
      Totals243311303
Artificers' Tools
United Kingdom608664785
Canada117162181
Australia88115107
France114
German Federal Republic62128181
Sweden252939
United States of America122229372
Other countries3212
      Totals1,0261,3301,681
Ball and Similar Bearings
United Kingdom227211245
Canada288
Austria  9
Sweden826396
United States of America396192
Other countries91114
      Totals359354464
Electric Motors and Parts
United Kingdom1,0871,0702,352
Canada135323
Australia217083
German Federal Republic3818
Sweden492842
United States of America182249
Other countries458
      Totals1,1951,2562,575
Insulated Cable and Wire
United Kingdom2,2581,4962,424
Union of South Africa29142
Canada5811
Australia4144102
Denmark11  
Netherlands4184172
Sweden1054
United States of America411
Other countries1  
      Totals2,4531,6452,706
Electric Switches and Switchboards
United Kingdom1,2761,4451,682
Union of South Africa7115
Canada1326
Australia91102122
Belgium622
France  5
German Federal Republic41127
Italy  34
Netherlands1207
Sweden801517
Switzerland12544158
United States of America428178
Other countries359
      Totals1,6481,7382,152
Telegraphy and Telephony Apparatus
United Kingdom1,4551,1231,383
Australia141968
Belgium and Luxemburg233888
Netherlands  12
Sweden351014
United States of America15199
Other countries477
      Totals1,5461,2161,581
Radio and Radar Apparatus
United Kingdom3464271,865
Australia142105172
Belgium  88
German Federal Republic1918
Netherlands57102165
Sweden1522
United States of America232926
Other countries279
      Totals5726842,365
Transformers and Converters
United Kingdom734662763
Australia61632
Austria  59
German Federal Republic  19
Sweden815147
Switzerland23471
Other countries358
      Totals985841929
Tractors and Parts
United Kingdom2,9093,8142,788
Union of South Africa2102
Canada63231
Australia463530
France1181516
German Federal Republic34102102
Italy31214
United States of America1,5832,3261,751
Other countries   
      Totals4,7016,4824,724
Domestic Baths
United Kingdom50170230
Other countries1  
      Totals51170230
Sewing Machines
United Kingdom194351516
India7 I
German Federal Republic25105123
Italy151878
Sweden6631
Switzerland99138137
Japan 79
United States of America17102127
Other countries53 
      Totals3687301,022
Raw, Synthetic, and Reclaimed Rubber
United Kingdom111835
Ceylon26177
Malaya9811,1342,071
Western Samoa5  
Canada 115
German Federal Republic 146
Indonesia638
United States of America72858
Other countries33 
      Totals1,0391,2052,240
Sawn Timber
United Kingdom257
Malaya2358132
British West Africa32214
Canada186436663
Australia843439431
British Guiana3 10
Sweden34  
Japan77143281
Thailand843
Burma  6
Chile26 
United States of America29186247
Other countries459
      Totals1,2141,3041,803
Plate and Sheet Glass
United Kingdom380456445
Belgium and Luxemburg117172231
France1 20
Other countries7615
      Totals505634711
Table Chinaware
United Kingdom4656031,004
Australia1109
France71020
German Federal Republic91337
Italy6914
Sweden2712
Other countries5414
      Totals4956561,110
Table Glassware and Tumblers
United Kingdom11993139
Australia1252
Belgium4610
Czechoslovakia111142
France345
German Federal Republic3424
Netherlands211
Sweden337
Other countries3421
      Totals160131251
Building Hardboard and Softboard
United Kingdom7013796
Australia221820
Belgium  7
Finland  6
German Federal Republic 116
Sweden2479
Other countries232
      Totals96163226
Newsprint
United Kingdom958932918
Canada6279361,302
Austria 52199
Germany, Eastern  6
Norway1824
Sweden4218
Other countries1 4
      Totals1,6091,9242,451
Other Printing Paper
United Kingdom251438689
Canada5694232
Australia55095
Austria42451
Czechoslovakia19  
Finland4628
France131 
German Federal Republic 619
Italy13 1
Netherlands 720
Norway2673115
Sweden266389
Algeria524
French Morocco1 3
United States of America575067
Other countries6 3
      Totals4868141,416
Wrapping Paper
United Kingdom1734337
Canada 86
Australia32285
France 11 
Norway536
Sweden1063473
United States of America384114
Other countries122
      Totals355133243
Writing Paper
United Kingdom162266291
Canada4533
Australia22666
Austria43 1
Netherlands 21
Norway92340
Sweden218
Other countries264
      Totals224329444
Books, Magazines, Newspapers, and Music
United Kingdom1,4651,5271,691
Australia811919919
Belgium and Luxemburg455
German Federal Republic2710
Netherlands131710
Japan  13
United States of America155227228
Other countries62211
      Totals2,4562,7242,887
Timepieces and Parts
United Kingdom76144184
Australia11 2
France673
German Federal Republic110154219
Switzerland292363357
United States of America8267
Other countries 15
      Totals507695777
Common Salt
United Kingdom143229266
Australia606676
      Totals203295342
Crude Sulphur
Japan21  
United States of America1,0471,4281,396
Other countries 1 
      Totals1,0681,4291,396
Rock Phosphate
Gilbert and Ellice Islands 67113121 
Nauru Island412495626
      Totals479608747
Basic Slag
Belgium and Luxemburg324614473
France 10 
Japan 5827
      Totals324682500
Chloride of Potash
France162161218
German Federal Republic55212140
Germany, Eastern25324449
United States of America  117
Other countries13 
      Totals471620524
Aircraft and Parts
United Kingdom331219162
Canada15327
Australia19185
United States of America1521,005896
Other countries 24
      Totals5171,2761,074
Bicycles
United Kingdom183222297
Other countries121
      Totals184224298
Motor Cycles
United Kingdom234335166
Czechoslovakia568
Other countries245
      Totals241345179
Motor Cars
United Kingdom6,36611,93713,251
Canada2394833
Australia3110838
Czechoslovakia  39
France246597
German Federal Republic14175426
United States of America27356622
      Totals6,43613,03716,106
Commercial Motor Vehicles
United Kingdom2,5173,1152,765
Canada 5321
Australia170459373
German Federal Republic110437
United States of America7565141
      Totals2,7633,7483,637
Railway and Tramway Vehicles and Parts
United Kingdom1,7949991,535
Canada  11
Australia905865
United States of America22161,628
Other countries  5
      Totals1,9061,0733,244
Railway and Tramway Rails and Rail Accessories
United Kingdom478395733
Australia513239
United States of America42446237
Other countries1  
      Totals954889809
Pneumatic Tires and Tubes (over 1¾ in. Diameter)
United Kingdom180180278
Union of South Africa21510
Canada6566
Australia389
German Federal Republic566
United States of America222388
Other countries  2
      Totals218237459
Musical Instruments, Parts, and Gramophone Records
United Kingdom5207541,166
Australia2310278
Czechoslovakia547
France31013
German Federal Republic445083
Italy294770
Netherlands61533
Japan  5
United States of America81515
Other countries71112
      Totals6451,0081,482
Prefabricated Timber Houses
United Kingdom451244 
Australia 6 
Austria459  
Netherlands131 
Sweden11 
Other countries2  
      Totals926252 
Thermosetting Powders and Thermoplastic Resins
United Kingdom398709717
Canada4139
Australia185361276
German Federal Republic 4081
Italy 5 
Netherlands353534
United States of America1254219
Other countries 26
      Totals6401,2071,372

QUANTITIES OF PRINCIPAL ITEMS IMPORTED.—The following table shows the quantity imported, during each of the years 1953 to 1955, of a large number of the principal items.

ItemUnit of Quantity195319541955
Canned fishlb. (000)1,3895,8297,088
Fruit—
  Cannedlb. (000)11,92219,56015,696
  Driedlb. (000)15,58618,97021,640
  Fresh—
    Bananaslb. (000)43,07344,57960,607
    Orangeslb. (000)34,14029,60526,887
Grain and pulse—
  WheatBush. (000)7,1147,9288,605
  Maizena and cornflourlb. (000)4,0385,8373,828
  Rice (other than rice flour and ground rice)Cwt.55,10044,00048,000
Nuts, ediblelb. (000)5,2914,9131,499
Desiccated coconutlb. (000)2,3152,2152,147
Jams, jellies and preserveslb. (000)114,1714,948
Confectionerylb. (000)2501,2332,312
SugarCwt. (000)1,7972,5672,296
Tealb. (000)14,85515,32312,899
Coffee, rawlb. (000)1,0721,3141,256
Cocoa-beans, rawlb. (000)4,9946,8875,173
Cigaretteslb. (000)2597301,719
Tobaccolb. (000)5,1717,3927,696
Spirits (beverages)Liq. gals. (000)1,0031,1451,411
WineLiq. gals. (000)208135232
Cotton and linen piece-goods—
  Cheese-bandages and meat-wrapslb. (000)2,9562,4203,464
  Knittedlb. (000)315556
  WovenSq. yds. (000)33,02952,26952,824
Woollen piece-goodsSq. yds. (000)5,2937,7807,010
Silk, and artificial and synthetic fibre piece-goods—
  WovenSq. yds. (000)13,35021,38525,516
  Knittedlb. (000)8971,1601,235
Yarns—
  Cottonlb. (000)1,4332,1902,295
  Silk and artificial silklb. (000)6311,2681,178
  Woollenlb. (000)1,1961,6861,829
Bags, sacks, wool-packsDoz. (000)3928281,085
Footwear—
  Children'sDoz. pairs51,20064,90061,200
  Adults'Doz. pairs16,80022,60026,100
Hosiery—
  Full lengthDoz. pairs (000)181.2297.2277.6
  Half and three-quarter hoseDoz. pairs (000)63.182.472.7
GlovesDoz. pairs (000)68.6142.7154.7
Hat-hoods, felt, unblockedDoz. (000)75.894.689.0
Mowers and harvestersNo.4,5674,4683,304
Cream separatorsNo.1,4542,2212,077
Electrical—
  Storage batteriesNo.7,43813,95829,054
  Wireless valvesNo. (000)3907341,099
  Lamp bulbsNo. (000)2,2882,6243,788
Sparking plugsNo. (000)8911,5851,631
TypewritersNo.6,4108,01810,703
Sewing machines, domesticNo.13,48919,04827,329
Iron and steel—
  Bar, rod, billet, bloom, pigCwt. (000)9871,3131,759
  Angle, tee, channel, girderCwt. (000)476549851
  Plate and sheetCwt. (000)1,5692,0902,617
  Pipes, tubes, and fittingsCwt. (000)440516693
  WireCwt. (000)4378221,091
CopperCwt.80,000119,500111,300
Brass and muntzCwt.18,60018,10016,200
LeadCwt.89,600113,200104,400
TinCwt.6,7008,9008,500
Cordage of metalCwt.105,10081,40081,500
BicyclesNo.24,02128,65538,014
Motor cyclesNo.2,4033,4761,645
Motor carsNo.20,88940,18446,432
Lorries, trucks, etc.No.4,8388,57812,731
TractorsNo.9,77512,0308,695
Tires (excluding bicycle)No. (000)304453
Mineral oils—
  Motor spiritsGals. (000)198,606212,631227,307
  Lubricating oilGals. (000)4,4857,5337,697
  KeroseneGals. (000)5,4286,2975,852
  Crude petroleum, fuel oils, etc.Gals. (000)108,074136,113147,627
Chemicals—
  AcidsCwt.11,90017,90023,600
  Calcium carbideCwt.34,40047,70042,100
  SulphurTons87,399133,219127,982
  SaltCwt. (000)7261,0261,098
  Caustic sodaCwt.43,00044,10054,600
  Carbonate of sodaCwt. (000)112.4231.8239.5
Manures—
  Nitrate of sodaTons3,4273,1035,863
  PhosphaticTons494,465621,227652,643
  PotashTons28,85536,20139,871
  Sulphate of ammoniaTons2,5764,5965,695
Timber, sawnSup. ft. (000)26,28530,37242,347
Glass, plate and sheetSq. ft. (000)12,58913,97515,614
Linseed oilGals. (000)34553961
Plaster-of-parisGals. (000)222.0330.8425.9
GypsumGals. (000)610.2798.3781.2
Asbestos, crudeCwt.36,50069,00081,200
CementCwt. (000)3,863.83,727.12,6950
Pulp and paper building boardSq. ft. (000)1,5342,1369,869
Printing paperCwt. (000)713.0899.31,163.4
Other paperCwt. (000)141.2115.21,761
Cardboard, etc.Cwt. (000)143.6139.2163.6
Raw rubberCwt. (000)118.0148.0193.1
Paraffin waxlb. (000)1,5773,6792,276
Wood and paper pulpTons9,4125,3435,462

Imports by Ports.—With the closing of the Customhouses at Kaipara, Patea, Hokitika, and Westport (from 31 January 1953), New Zealand now has fifteen ports of entry for Customs purposes—seven in the North Island and eight in the South Island.

The following table gives the total value of imports of merchandise for the several ports of entry during the five years 1951–55.

£

Port19511952195319541955
Auckland73,200,38385,245,60467,195,05785,227,847100,180,434
Tauranga27,32237,77950,84572,015131,347
Gisborne236,963289,731230,041364,796448,656
Napier1,605,7762,519,3151,747,4652,416,0493,577,933
New Plymouth2,396,8494,064,8272,300,0662,837,1763,113,564
Patea14,109    
Wanganui604,592830,685407,089563,722690,984
Wellington65,460,46280,228,18555,295,21772,795,93785,752,969
VVairau (including Picton)233,96686,24749,25398,735144,455
Nelson378,468602,281481,793625,348802,461
Westport240,236195,2374,815  
Greymouth78,921119,164108,880194,314156,891
Lyttelton25,904,06532,808,21722,573,71929,801,20934,324,503
Timaru778,1851,072,5331,128,3941,389,3841,464,152
Oamaru128,143290,50172,813108,163122,238
Dunedin14,764,40518,167,48810,327,89714,391,30616,517,550
Invercargill1,704,8962,889,5151,639,9562,269,0363,232,859
      Totals187,757,741229,447,309163,613,300213,155,037250,660,996

Three-quarters of the total imports usually come in by way of Wellington or Auckland. Lyttelton and Dunedin occupy third and fourth places in importance. Following these, however, the relative importance of the ports varies from year to year.

It should be mentioned that imports by air have been credited to the port in whose district the air-port is located. Thus goods which came in through Whenuapai were included in the Auckland figures, imports through Ohakea in the Wellington figures, and through Harewood in the Lyttelton figures.

IMPORTS FROM COOK AND ASSOCIATED ISLANDS.—Trade with the Cook and associated islands is not included in the export and import totals for New Zealand, but is shown separately in official publications. The following table shows imports into New Zealand from the Group. Further particulars of the trade of the islands will be found in the Section dealing with Island Territories.

£

YearImports
194580,959
1946113,313
1947117,434
1948168,553
1949171,314
1950161,705
1951192,398
1952245,883
1953287,002
1954286,418
1955283,443

The principal articles imported into New Zealand from the Cook and associated islands arc as follows.

£

Item1952195319541955
Fruits, fresh—
  Bananas2,9511,1221,6722,075
  Oranges38,74540,33129,00231,557
  Tomatoes32,21349,81733,02446,260
  Other26,31722,08931,69223,812
Copra, coconut oil and meal81,630117,297125,625140,605
Apparel42,26412,65320,94030,755
Cinematograph films (re-imports)4,0157,2648,169 
Arrowroot  822 
Vegetables2,00420,13423,716502
Wickerware4,8314,2125,0474,182
All other items10,91312,0836,7093,695
      Totals245,883287,002286,418283,443

10 D—CUSTOMS TARIFF AND REVENUE

THE TARIFF.—The rates of Customs and excise duty in force in New Zealand are set out in the publication entitled “The Customs Tariff of New Zealand,” published by the Government Printer, Wellington.

A summarized historical account of the Customs tariff of New Zealand, setting forth the principal developments and changes from earliest times to 1930, will be found in the 1931 number of the Year-Book. Considerations of space preclude a detailed account of the rates of duty now levied on goods imported into New Zealand, and only a brief survey of the nature of the tariff and of developments since 1930 can be given here. Reference should also be made in this connection to the Annual Reports of the Customs Department for the years 1955 and 1956.

The basis of Customs taxation is principally ad valorem, but specific duties are applied to some lines, including several of the principal revenue items such as alcoholic beverages, tobacco, tea, sugar, and motor spirits.

As the rates of duty on goods vary according to their country of origin as well as their classification, the tariff is printed in “multi-column” form listing rates of duty under the British Preferential Tariff, agreements with certain Commonwealth countries, the Most-favoured-nation Tariff (under which goods from countries adhering to the General Agreement on Tariffs and Trade are admitted), and the General Tariff.

Briefly the Customs tariff, apart from the obtaining of revenue, has for its objects the following:

  1. The development of New Zealand industries.

  2. The maintenance and extension of markets for New Zealand produce.

  3. The encouragement of intra-Commonwealth trade.

Under the Ottawa Agreement of 1932 New Zealand, in common with the other Commonwealth countries, was committed to hold an inquiry into the tariff and, if necessary, to revise it in accordance with certain explicitly stated principles. As a result of the Ottawa Conference, dutiable goods the produce of the United Kingdom or of any British Commonwealth country except Canada (including Newfoundland), the Union of South Africa, the Republic of Ireland, India, and Pakistan were exempted from the surtax on duty previously payable. Reductions were made in the rates of duty charged on confectionery, apparel, hosiery, and silk and artificial silk piece-goods, and an additional preference to British Commonwealth countries was granted by the imposition of a duty or an increase in the existing rate on foreign cocoa-beans, raw coffee, cigars, rum, asphalt and bitumen, certain unground spices, and paper.

A Tariff Commission was set up in 1933 to inquire into the Customs tariff and to recommend for the consideration of the Government any alterations thereto with a view to implementing the agreement made at Ottawa, and having regard, inter alia, to the financial, economic, and industrial conditions in New Zealand.

The revision which followed the report of this Commission was the last complete revision of the tariff undertaken and the resultant tariff, enacted by the Customs Acts Amendment Act 1934, is in the main still in operation, although extended in its scope by subsequent trade agreements.

In recent years a number of changes in the tariff have resulted from public inquiries conducted by the Board of Trade, and the Board is at present engaged in a comprehensive review of the whole structure and incidence of the tariff. This is expected to result in the first completely new tariff since 1934.

The following is a list of the principal items which, regardless of their country of origin, are entirely free of duty or subject to primage only under the present tariff:

Live animals; barley (if to be used as stock food); bran; pollard; seeds; vegetable butters or fats; currants; dates; figs; prunes; glucose and caramel; nuts, except walnuts; rice; acids, other than acetic; inorganic salts of metallic elements, and many other drugs and chemicals; certain surgical appliances; bags and sacks of jute, etc.; woolpacks; raw cotton; hatmakers' materials, buttons; needles and pins; wadding; cotton piece-goods for meat wraps and cheese bandages; umbrella-makers'materials; upholsterers' materials; coir, flax, and jute yarns; grindery; leather made from goat and kid skins; patent leathers; bricks, other than firebricks; marble in the rough; grindstones and whetstones; cinema films (subject, however, to film-hire tax); bookbinders' materials; cardboard and similar boards; parchment and greaseproof paper; printed books, papers, and music; beekeepers' apparatus; percussion caps, detonators, and explosives; hay rakes, reapers and binders, mowers, and certain other agricultural implements; certain dairying machinery; sewing machines; iron and other metal in ingots, pigs, or billets; fish and vegetable (other than linseed) oils; kerosene and other refined mineral oils not exceeding in specific gravity 0.860 at 60° F. (other than motor spirits); waxes; cork; crude tanning materials; manures; skins and hides.

The following are entirely free or subject only to primage duty if British but dutiable at varying rates if of foreign origin:

Tea in bulk; bananas; oranges, mandarins, and grapefruit; raisins; infants' and invalids' foods; mustard; salt; cocoa beans; raw coffee; sago and tapioca; cornflour; macaroni; acetic acid; cream of tartar; disinfectants; chloroform and other anaesthetics; antiseptics; manufactured dyes; most surgical, dental, optical, and scientific instruments and materials; felt, cotton, linen, and canvas piece-goods; silk and artificial silk piece-goods; leather cloth; oil baize; sewing, etc, cottons and threads; elastics; plain tape; tailors' lining materials; cotton, silk, and artificial silk yarns; plain tablecloths, towels, and similar plain articles; belting (other than leather); children's boots, shoes, and gumboots, sizes 0–6 inclusive; rubber hose; most rubber manufactures, except tires for motor vehicles; sheet glass; lenses; watch glasses; pianos and certain other musical instruments; gramophone records; artists' materials; paperhangings; sensitized surfaces; waxed paper; paper (other than wrapping) in large sheets or rolls; ball bearings; bolts and nuts; rivets and washers; buckles; chains; fire engines, fire extinguishers, and other fire-extinguishing appliances; typewriters; most electrical apparatus; measuring, testing, etc., appliances; sheep-shearing machines; tractors; artificers', etc., tools; machinery peculiar to industrial processes; iron and other metal in bars or sheets; wire and wire netting; metal cordage; rails for railways and tramways; under-carriage springs and metal fittings for vehicles; asphalt and bitumen; table chinaware.

It is impossible to give here an account of the range of duties payable on all of the numerous tariff items, but the duties as at the beginning of December 1956 on some of the principal commodities in general use are mentioned hereunder. It should be noted that, in addition, surtax or primage may also be payable.

Tea.—Tea in bulk, when of British origin, was placed on the free list as early as 1907, when the duty on foreign tea was fixed at 2d. per pound. In 1917 a duty of 3d. per pound was imposed on British tea, the foreign rate being increased to 5d. per pound. British tea in bulk was again placed on the free list in 1923, and the duty on foreign tea reduced to 2d. Rates of 3d. and 5d. per pound respectively were reinstated as from 31 July 1931. On and after 26 July 1948 a duty of 4d. per pound was introduced on tea in bulk imported from most-favoured nations, and from the same date all tea imported under the British preferential tariff was exempted from surtax. On 3 September 1951 tea in bulk of British origin was exempted from all duty and the rates on foreign tea became most-favoured-nation, 1d., general tariff, 2d. per pound.

Sugar.—Sugar also was placed on the free list in 1907, prior to which the duty was ½d. per pound. Refined sugar of foreign origin was charged ½d. per pound under the 1921 tariff, the rate being altered in 1923 to 5/16d. and in 1924 to ¼d., irrespective of origin. The duty on refined sugar was increased to ¾d. per pound in 1931; and raw sugar was made dutiable at ½d. per pound. Raw sugar imported for refining at Auckland enters free of duty under bond, an excise duty of ½d. per pound being levied on the refined products. An additional ½d. per pound on both refined and raw sugar was imposed as from 9 February 1933.

Tobacco.—Prior to the imposition of special war taxation in 1939 the duties on tobacco were as follows: cigarettes, exceeding in weight 2½ lb. per 1,000, 10s. 6d. per pound; cigarettes, not exceeding 2½ lb. per 1,000, 25s. 6d. per 1,000; cigars, 12s. per pound under the British preferential tariff and 14s. or 16s. under the general tariff; manufactured tobacco, cut, 6s. 10d. per pound, and plug, 6s. 8d. per pound; unmanufactured tobacco for the manufacture of cigarettes, 3s. per pound; and unmanufactured tobacco for the manufacture of tobacco, cigars, or snuff, 2s. per pound. In order to assist in financing the expenses of the war, further duties, in addition to those set out above, and equal to 25 per cent of the duties, were levied as from 27 September 1939. As from 1 May 1942 this war impost was replaced by the following specific duties additional to the ordinary revenue duties quoted above: Cigarettes, exceeding 2½ lb. per 1,000, 8s. per pound; cigarettes, not exceeding 2½ lb. per 1,000, 20s. per 1,000; cigars, 8s. per pound; tobacco, cut and plug, 7s. 2d. per pound; tobacco, unmanufactured, for cigarettes, 9d. per pound; tobacco, unmanufactured, for the manufacture of tobacco, 6d. per pound. As from 31 October 1947 the duties on unmanufactured tobacco were consolidated and the one rate of 3s. 9d. per pound applied to all unmanufactured tobacco imported for manufacturing purposes in a bonded tobacco factory. As from 26 July 1948 surtax was removed from the duty on all cigarettes and unmanufactured tobacco imported from most-favoured nations or from any British Commonwealth country. On 26 September 1952 an additional duty of 2s. per pound plus 10 per cent ad valorem was imposed on cigars imported from all sources, and an exemption from all duty was provided for unmanufactured tobacco imported for manufacturing cigars in a bonded tobacco factory. A duty of ½d. British preferential tariff or ¾d. general tariff is levied on each sixty cigarette tubes or papers or the equivalent thereof. The excise duties on tobacco, etc., made in New Zealand are shown later under “Excise Duties”.

Alcoholic Beverages.—Prior to the imposition in 1939 of special taxation for war purposes the rate of duty payable on most spirituous beverages was 40s. per proof gallon, except rum of foreign origin, which was dutiable at 44s. per proof gallon. Sparkling wine was liable to a duty of 10s. per gallon under the British preferential tariff, 9s. 6d. under the trade agreement with the Union of South Africa, and 13s. or 15s. under the general tariff. Australian and South African still wines were liable to a duty of 5s. 6d. per gallon, the duty under the British preferential tariff was 4s. and under the general tariff, 6s. The duty on imported beer was 1s. 9d. per gallon under the British preferential tariff, and 3s. under the general tariff. In order to assist in financing the expenses of the war further duties, in addition to those set out above, and equal to 15 per cent of the duties, were levied as from 27 September 1939; these were increased to 50 per cent as from 1 May 1942, except in the case of beer, on which the additional duty is 1s. 3d. per gallon.

On 26 July 1948 rum, brandy, and gin imported from British Commonwealth countries and most-favoured nations were exempted from surtax and a special most-favoured-nation rate of 15s. per gallon (including the additional 1942 duty) was established for champagne. The excise duty on beer produced in New Zealand is given under “Excise Duties.”

Apparel.—Most apparel, except that made to the order or measurement of a New Zealand resident which is liable to duty at the rate of 40 per cent under the British preferential tariff, pays duty at the rate of 20 per cent, 25 per cent or 27½ per cent under the British preferential tariff, and 65 per cent under the general tariff. The duties on apparel of Canadian and Australian origin vary from the British preferential rates to 40 per cent, 45 per cent, and 55 per cent.

Timber.—A review of the rates of duty imposed is given on pages 271–2 of the 1951–52 Year-Book. The duties on coniferous timbers, other than dressed, were suspended from 9 November 1951.

Textiles.—Piece-goods of cotton, silk, or artificial silk are in general admitted free of duty under the British preferential tariff and liable to 15 per cent from foreign sources. Dress, curtain, and similar nets are dutiable at 15 per cent British preferential and 35 per cent most-favoured-nation tariff. For woollen piece-goods, other than moquettes, the rates are 20 per cent and 40 per cent respectively.

Motor Vehicles.—Motor vehicles imported in an unassembled or completely knocked-down condition are dutiable at 5 per cent under the British preferential tariff, 40 per cent under the most-favoured-nation tariff, and 50 per cent under the general tariff. Assembled motor vehicles are subject to a duty of 15 per cent, if admissible under the British preferential tariff, 50 per cent under the most-favoured-nation tariff, and 60 per cent if liable to the general tariff. Rates intermediate between the British preferential and the most-favoured-nation tariffs apply to vehicles of substantially Canadian origin.

Tires for Motor Vehicles.—Previously dutiable at 10 per cent ad valorem under the British preferential tariff and 40 per cent under the general tariff, these were in 1934 made subject to a duty based on the weight of the tires. Pneumatic rubber tires for motor vehicles, inner tubes of rubber therefor, and moulded rubber strip for repair of such tires are now dutiable at 2½d. per pound under the British preferential tariff and 8d. per pound under the general tariff. Solid rubber tires are liable to a duty of 1d. per pound and 4d. per pound under the British preferential and general tariffs respectively.

Motor Spirits.—Towards the end of 1927 the Motor Spirits Taxation Act of that year imposed a duty of 4d. per gallon (increased in 1930 to 6d.) on motor spirits. The proceeds of this tax were devoted to roading purposes. In 1931 and 1933 an increase in duty of 2d. per gallon in each year was made, and an additional 4d. per gallon duty was imposed as from 2 August 1939. The total duty on motor spirits remained at 1s. 2d. per gallon (plus a surtax of one-twentieth of the duty if of foreign origin) until 3 September 1951, when it was reduced by 2d. per gallon. On 4 December 1951 the surtax was made payable also on motor spirits of British origin. The tax on motor spirits was raised to 1s. 3d. per gallon from 26 November 1953, all of which has been devoted to roading purposes from 1 April 1954.

PROHIBITED AND RESTRICTED IMPORTS.—Full particulars of the goods which are prohibited or restricted from being imported into New Zealand are contained in the publication entitled “The Customs Tariff of New Zealand”.

The Import Control Regulations 1938 (made by Order in Council of 5 December 1938) prohibit the importation of any goods except in pursuance of a licence under the regulations or of an exemption granted by the Minister of Customs. A considerable number of items have been exempted from import licensing since 1950, and of approximately 1,000 items in the earlier import licensing schedules only 272 remained in the 1956 schedule. Some of these items were residual portions only of items appearing in the previous schedules.

EXCISE DUTIES.—An important excise duty is that on beer, which up to 1915 was charged at the rate of 3d. per gallon. In that year the beer duty was altered so as to increase according to the specific gravity of the worts used, the rate being 3¾d. per gallon when the specific gravity did not exceed 1,047, and increasing by 1/16d. per gallon for every unit of specific gravity up to 1,055, and by ⅛d. thereafter. On 2 August 1917 the minimum rate of duty for beer was increased from 3¾d. to 4¾d. per gallon, and further (on 15 September 1917) to 5¾d., with a maximum of 6d. per gallon. In 1921 a rate of 11½d. per gallon (increased to 1s. in 1930, and to 1s. 6d. in 1931) was imposed where the specific gravity of the worts used did not exceed 1,047, the rate being increased by ⅙d. for every unit of specific gravity above 1,047. The basic rate of excise duty on beer was reduced from 1s. 6d. to 1s. 3d. per gallon by the Customs Acts Amendment Act 1934, but was increased to 1s. 9d. per gallon as from 2 August 1939. In order to assist in financing the expenses of the war a further increase to 2s. per gallon was made as from 27 September 1939. The duty was again increased on 11 May 1942, when provision was also made for a lower alcoholic content. When the specific gravity of the worts was 1,036 the new duty was 3s. per gallon, rising by 1d. for every unit of specific gravity above, and falling by 1d. for every unit below, 1.036, but subject to a minimum of 2s. 3d. per gallon. These duties were further amended as from 22 August 1947 by abolishing the reduction of 1d. in the basic duty for every unit of specific gravity below 1,036, so that the duty is now 3s. per gallon where the specific gravity of the worts does not exceed 1,036, increased by 1d. for every unit of specific gravity above 1,036. The specific gravity of distilled water at 60° F. is taken as 1,000, and the specific gravity of the worts is determined in relation thereto.

Prior to the introduction of special taxation for war purposes, cut tobacco was charged an excise duty of 4s. 6d. per pound; other tobacco, 4s. 4d. per pound. Cigars and snuff paid 6s. per pound, and the excise duty on cigarettes made in New Zealand was 13s. 6d. per 1,000 on cigarettes not exceeding in weight 2½ lb. per 1,000, and 5s. 6d. per pound on cigarettes over 2½ lb. per 1,000. A war surcharge of 25 per cent of the excise duty on tobacco, cigars, cigarettes, and snuff was levied as from 27 September 1939, but this was replaced on 1 May 1942 by additional taxation similar to that imposed on imported tobacco, etc. (see page 357). An excise duty of ½d. is levied on each sixty cigarette tubes or papers or the equivalent thereof.

The Customs Acts Amendment Act 1931 imposed an excise duty of ½d. per pound (increased to 1d. per pound from 9 February 1933) on sugar manufactured in New Zealand.

Excise duties were formerly levied direct on certain manufactures the preparation of which involved the use of a considerable proportion of spirits. In lieu of excise duty on the finished manufactured article, however, a special schedule of duties has been provided since 1921 on imported alcohol used in manufacturing these articles in licensed warehouses. The present rates are: on alcohol used in the manufacture of— perfumed spirits, 36s. per proof gallon; toilet preparations, 34s.; culinary and flavouring essences, 20s.; medicinal preparations containing more than 50 per cent of proof spirit, 4s. 6d. per gallon. In similar medicinal preparations containing not more than 50 per cent, the alcohol used is duty-free.

EXPORT DUTIES.—The Gold Duty Act of 1858 first imposed an export duty on gold. This duty was amended from time to time and was finally abolished in 1949. A summary of the movements on gold duty is available on page 273 of the 1951–52 Year-Book.

An export duty was also imposed on timber (white-pine and kauri) by Acts of 1901 and 1903, and still operates. The present rates of 5s. per 100 superficial feet on logs, and 3s. or 5s. per 100 superficial feet on flitches, were imposed by the Timber Export Duty Order of 23 June 1937. This duty is not payable in respect of sawn timber in smaller sizes.

The Wool Industry Act 1944 provides for a levy on all wool exported or delivered to a wool manufacturer for use in New Zealand, and the proceeds, less cost of collection, etc., are payable to the New Zealand Wool Board established under the Act to enable it to carry out its functions. At the present time, however, the provisions in regard to the payment of the levy are suspended, but an equivalent amount is received by the Board from the contributory charge imposed by the Wool Commission Act 1951 (see Section 20A). Prior to the passing of the Wool Industry Act 1944 a similar levy was payable under the authority of the Wool Industry Promotion Act 1936 on exported wool only.

Under section 13 of the Meat-expo Control Act 1921–22 provision is made for a levy on all meat exported from New Zealand. The section further provides that the net amounts, after deduction of the cost of collection, shall be paid to the New Zealand Meat Producers Board and shall form part of its funds.

By the Meat-export Control Act (Partial Suspension) Regulations 1940 the operation of section 13 was suspended and provision was made for the payment to the Board, out of an account established in the Reserve Bank, of such a sum, not exceeding £30,000, as the Minister of Marketing approved.

As from 1 November 1954 the collection of the levy under section 13 was reinstated. The levy is at the rate of 1/20d. per pound on lamb, mutton, beef, veal, bobby veal, and pig meat.

CUSTOMS REVENUE.—In the earlier years of New Zealand's history the revenue derived from Customs and excise duties represented a greater proportion of the total revenue from taxation than it does today. For a considerable period prior to 1914 there was a constant tendency for this proportion to decrease, and the taxation legislation of the First World War period temporarily accelerated the movement. From 1921–22 to 1925–26 the percentage rose continuously, but did not regain its former proportions. A gradual decline then commenced and, with one slight interruption (1935–36), continued up to and including 1945–46. The low percentages following the year 1938–39 were the result of the huge increase in taxation imposed for war purposes, only a small proportion of which was derived from Customs and excise duties. The high amounts shown in the last seven years are accounted for by a substantial increase in dutiable imports. The figures for the last twenty years are as follows.

Year Ended 31 MarchTotal TaxationCustoms and Excise Duties
AmountPercentage of Total Taxation
 ££Per Cent
193731,181,60310,340,83833.16
193836,798,97111,737,17031.90
193937,797,90411,727,22431.03
194044,522,02811,734,78426.36
194161,360,84011,258,37018.35
194268,163,25610,622,09215.58
194387,940,84412,342,11514.03
1944100,839,48413,922,57413.81
1945108,681,81414,869,44913.68
1946114,954,87315,682,63713.64
1947113,119,04619,970,49217.65
1948122,275,91128,794,93223.55
1949130,440,24923,666,86018.14
1950135,556,31926,296,87319.40
1951157,946,97528,636,20718.13
1952200,549,88137,873,40018.88
1953199,771,07532,739,90716.39
1954206,802,31732,177,12915.56
1955234,766,09834,177,22414.56
1956244,828,77736,632,87314.96

The figures for Customs and excise duties are exclusive of tire tax and the highways proportion (6d. per gallon) of the motor-spirits tax up to and including 1953–54, two classes of taxes collected through the Customs and paid to the Consolidated Fund in the years quoted. From 1954–55 all these receipts are paid into the National Roads Fund, and are therefore excluded from Customs duties. Such taxation is, however, included in total taxation. Figures given under the heading of Customs and excise duties include for 1939–40 and subsequent years the amounts received on account of additional rates imposed on certain commodities for war purposes. Most of these additional rates are still in operation.

The Customs and excise duties received during the last four financial years available are shown in more detail in the next table. The figures have been rounded off to the nearest thousand. Primage duties and surtax are included. Tire tax or the highways proportion of motor-spirits tax up to 1953–54, and since then all motor-spirits taxation, have been excluded, as these do not really represent Customs taxation, although levied on imports and for the sake of convenience collected through the Customs. £(000)

1952–531953–541954–551955–56*

* Provisional.

Customs duties—
  Wines and spirits2,9142,7493,0773,363
  Cigars, cigarettes, snuff, and tobacco1,1501,5021,5272,639
  Motor spirits4,6494,989  
  Other duties, including primage and surtax11,3719,62315,48316,884
      Totals, Customs duties20,08418,86320,08722,886
Excise duties—
  Alcohol used in perfumed spirit, etc., in New Zealand46414055
  Cigarette papers and tubes93908076
  Tobacco, cigars, cigarettes, snuff, New Zealand manufactured6,3506,5106,9236,195
  Beer, New Zealand5,4475,8346,2086,567
  Sugar720839839854
      Totals, excise duties12,65613,31414,09013,747
      Grand totals, Customs and excise duties32,74032,17734,17736,633
Revenue per head of population—£ s. d.£ s. d.£ s. d.£ s. d.
  From Customs duties9 17 29 0 89 10 910 12 10
  From excise duties6 4 26 7 76 13 106 7 10
      Totals16 1 415 8 316 4 717 0 8

PREFERENCE AND RECIPROCITY.—Preference to British Commonwealth countries in respect of certain commodities was provided for in the earliest tariff in force in New Zealand—that introduced in 1841. The amended tariff of 1844 involved the dropping of this preference to British goods, but two years later preference was again introduced.

The first definite attempt at reciprocity was made in 1870, when the Colonial Reciprocity Act gave power to the Government to make reciprocal agreements with the Australian States, including Tasmania; but this Act failed to receive the Royal assent and consequently lapsed.

In 1895, however, the Customs Duties Reciprocity Act received the Royal assent and ratified an agreement which had been tentatively proposed with South Australia, besides giving power to the Government to make further agreements with the other Australian States. In 1907 the New Zealand and South African Customs Treaty was negotiated. A tariff agreement with the Australian Commonwealth has been in operation since 1922, and with Canada since 1932.

Imperial preference proper was introduced in New Zealand by the Preferential and Reciprocal Trade Act 1903, which followed the lead given by Canada. At first only a few items were covered by the extra duties levied upon goods of foreign origin, but the Tariff Act of 1907 extended this additional preferential duty to a great number of items. The effect of the 1921, 1927, 1930, and 1934 tariffs was to widen the disparity in the duty as between goods of British Commonwealth countries and those of foreign origin. Under the Ottawa agreement New Zealand undertook to preserve the existing margins of preference on United Kingdom goods where the margin of preference did not exceed 20 per cent, and where the margin exceeded that figure not to reduce it below 20 per cent without the consent of the Government of the United Kingdom. In the tariff of 1934, where reductions in duty were made under the British preferential tariff, the rates of duty under the general (foreign) tariff were, except in a few cases, retained. Under the General Agreement on Tariffs and Trade, preference margins may not now be increased beyond those ruling in April 1947.

The following are the classes of goods which are deemed to be the produce or manufacture of countries and which are entitled to be entered for duty at British preferential rates:

  1. Goods wholly the produce of such countries:

  2. Goods wholly manufactured in such countries from unmanufactured raw material and/or from one or more of the imported partly manufactured raw materials which are enumerated in the regulations:

  3. Goods partially manufactured in such countries, provided that the final process of manufacture has been performed in such countries, and also that the expenditure in material produced in such countries and/or labour performed within such countries in each and every article is not less than one-half of the factory or works cost of such article in its finished state.

The conditions applying to British Commonwealth countries, the products of which are admissible under the British preferential tariff pursuant to agreements made by New Zealand with such countries, may be varied to suit the provisions of such agreements.

Prior to 1 April 1926 the minimum mentioned in paragraph (c), which is now one-half, was one-fourth.

In the calculation of the proportion of produce or labour none of the following items is to be included or considered:

  1. Manufacturer's profit, or the profit or remuneration of any trader, agent, broker, or other person dealing in the article in its finished condition:

  2. Royalties payable in respect of the finished goods:

  3. The cost of outside packages or any cost of packing the goods thereinto:

  4. Administrative and general office expenses:

  5. Any cost of conveying, insuring, or shipping the goods subsequent to their manufacture:

  6. Any other charges incurred subsequent to the completion of the manufacture of the goods.

Tea to be free of duty must have been grown in some part of the British Commonwealth, and the final process of manufacture must also have been performed in some country of the British Commonwealth.

Under the reciprocal trade agreements with Australia and Canada discussed hereunder, the duties on certain items are sometimes higher than the corresponding duties under the British preferential tariff and in a few cases lower.

Reciprocity With the Union of South Africa.—As already stated, there was inaugurated in 1907 a reciprocal arrangement with the Union of South Africa whereby products of that country, when imported direct, were admitted into New Zealand at reduced rates of duty, in return for similar concessions granted by South Africa in respect of New Zealand products. This agreement was revised in 1922 and subsequently further amended.

The items specially provided for in the agreement were feathers, fish, fresh fruit, dried fruit, tea, and wine; while in the case of all other dutiable goods, with the exception of spirits and tobacco, a reduction of 3 per cent of the duty payable was made.

The legislation giving effect to the arrangement with the Union of South Africa was revoked by the General Agreement on Tariffs and Trade Act 1948, although that Act provides for the continuation of most of the concessions previously granted, an exception being the reduction of 3 per cent of the duty formerly granted.

The following table shows the merchandise trade with the Union of South Africa during the eleven years ended in 1955.

£

YearMerchandise ImportsMerchandise Exports to Union of South Africa
From Union of South AfricaOf Union of South Africa Origin

* Provisional.

1945237,849247,035193,899
1946221,582220,86659,161
1947490,345494,86165,064
1948748,044725,15189,053
1949452,616472,805132,934
1950939,877985,118289,742
19511,612,6631,719,643268,725
19521,205,8941,251,663557,847
19531,029,7401,085,872597,211
19541,182,9861,209,941547,712
1955*967,7291,042,384468,070

Reciprocity With Australia.—A trade agreement between Australia and New Zealand was first entered into on 11 April 1922. Under this agreement each country granted to goods of the other the benefits of its British preferential tariff, except with regard to certain classes of goods on which special rates were fixed.

A new agreement was reached in April 1933, and confirmed by the Trade Agreement (New Zealand and Australia) Ratification Act 1933. The new agreement came into operation from 1 December 1933.

The agreement provided for lower duties than those under the British preferential tariff on many lines of New Zealand products entering Australia—e.g., fresh and frozen fish and fish pastes; dried peas; hay; chaff; fresh, smoked, and preserved meats; onions; lucerne seed; wine; furs; hats; caps; floor rugs; various agricultural and dairying implements; whale oil; casein; sugar of milk; and timber.

Article X of the agreement sets out the conditions under which goods are regarded as the produce or manufacture of Australia or New Zealand.

Article IX provides that, where with respect to any goods not specially enumerated in the agreement the rate of duty thereon under the New Zealand British preferential tariff is less than the duty under the Australian British preferential tariff, the New Zealand Government may request the Australian Government to admit into the Commonwealth goods of such class produced in New Zealand at the rate of duty chargeable on goods of that class under the New Zealand British preferential tariff. If within three calendar months after the receipt of the request the Australian Government does not comply therewith, the New Zealand Government may, without further notice, impose on such goods of Australian origin a rate of duty not being greater than the rate of duty for the time being in force in Australia on the like goods under the Australian British preferential tariff. A similar provision is made with respect to the admission of Australian produced goods into New Zealand.

The rates of duty payable on Australian goods imported into New Zealand and not specifically mentioned in the agreement are automatically affected by changes in the New Zealand British preferential tariff. A modification of the agreement was made in May 1935, whereunder the duty on certain Australian goods which would otherwise have been reduced or removed from 1 June 1935, following changes made in the British preferential tariff by the Customs Acts Amendment Act 1934, remained unaltered, and further minor amendments have since been made.

The duties on many Australian goods were increased as from 1 March 1938 by an Order in Council made on 26 February 1938, while the duties on fresh grapes, canned pineapples, slippers, boots and shoes, and certain types of refrigerating units were reduced as from 26 July 1948 by the Trade Agreement (Australia) Order 1948, and rates on other goods have been varied from time to time.

Merchandise trade between New Zealand and Australia during the eleven years ended in 1955 has been as follows. £

YearMerchandise ImportsMerchandise Exports to Australia
From AustraliaOf Australian Origin

* Provisional.

19458,651,5438,326,4944,195,247
194610,733,49510,423,8863,630,750
194715,467,44114,940,5414,096,064
194814,904,33014,307,8533,954,416
194916,339,42315,673,6513,747,746
195019,490,30119,025,9984,779,368
195121,940,43221,254,1055,112,874
195224,893,62824,887,1935,930,237
195324,130,83923,637,7074,655,262
195428,881,16327,491,8526 444,655
1955*31,912,39230,969,8336,712,934

Reciprocity With Canada.—From October 1925 reciprocal trade arrangements with respect to certain items of Canada - New Zealand trade were in force, but ceased in May 1930.

Negotiations between the Canadian and New Zealand Governments bore fruit in a trade agreement which came into force in both countries for a period originally of one year, as from 24 May 1932. This agreement has been extended from time to time, and now continues in force indefinitely subject to termination by either party.

Pursuant to the agreement the following rates inter alia apply to New Zealand products imported into Canada: butter, 5 cents per pound; cheese, 1 cent per pound; and lamb and mutton, ½ cent per pound; while sausage casings, hides and skins, wool, apples, seeds, kauri gum, and phormium fibre are amongst commodities admitted free.

The rates of duty payable in New Zealand on certain imports from Canada are as under: Canned fish. 1½d. per pound; silk or artificial silk or nylon stockings, 55 percent; electric cooking and heating appliances, 30 per cent; certain agricultural implements, 35 per cent; timber, 7s. 6d. or 9s. 6d. (rough sawn) and 19s. (sawn and dressed) per 100 superficial feet. The duty on undressed coniferous timbers has been suspended since 9 November 1951. Canadian goods not mentioned in the agreement enter New Zealand at the ordinary British preferential rates of duty. In some instances where the British preferential rates of duty were reduced by the 1934 tariff, the rates on certain Canadian goods mentioned in the agreement were also reduced to the British preferential level. Special duties are payable on motor vehicles of Canadian origin, these duties varying according to the Canadian content.

Merchandise trade with Canada during the eleven years ended in 1955 is shown in the following table.

£

YearMerchandise ImportsMerchandise Exports to Canada
From CanadaOf Canadian Origin

* Includes Newfoundland from 1949.

† Provisional.

19455,079,0265,094,3532,250,862
19464,650,1504,657,0752,803,282
194711,580,51911,610,2543,059,660
19486,868,9496,913,7102,990,814
1949*4,626,7954,639,3862,196,352
19503,622,3983,568,9363,556,916
19516,402,7846,145,2698,564,989
19528,277,1658,070,6315,212,478
19532,375,9772,287,0602,958,063
19544,399,0774,380,3542,996,627
19558,396,0648,387,9744,011,266

Other Trade Arrangements.—New Zealand is also a party to certain commercial treaties, conventions, or arrangements with countries outside the Commonwealth. Particulars of the trade agreements with certain European countries are contained in the 1940 and previous issues of the Year-Book, but, owing to the war with Germany and its subsequent effects, these agreements became largely inoperative. In certain instances the agreements referred to became applicable to New Zealand automatically as a member of the British Commonwealth, while in others New Zealand became a party by signifying her willingness to adhere to treaties negotiated by the United Kingdom. New Zealand also in some cases entered into agreements with foreign countries by direct negotiation with those countries, among these being Belgium, the Netherlands, and Switzerland, and in others the United Kingdom acted for New Zealand in making trade agreements on her behalf. In some instances the trade involved was insignificant.

On the resumption of normal trade relations after the Second World War most-favoured-nation preferences were accorded to the following countries: Argentina, Belgium and Luxemburg, Brazil, China, Czechoslovakia, Egypt, Greece, Netherlands, Norway, Spain, and Sweden, while the agreement with Switzerland provided for similar preferences on certain products only.

The Customs (Tariff Preference and General) Regulations 1936 set out the classes of goods from foreign countries which may be entered at concessional rates of duty applying to any such countries as a result of treaty obligations between New Zealand and such countries, viz:

  1. Goods wholly the produce of such a country:

  2. Goods wholly manufactured in such a country from unmanufactured raw materials:

  3. Goods partially manufactured in such a country, provided (1) that the final process of manufacture has been performed in that country or in any British country the produce or manufactures of which are entitled to be entered under the British preferential tariff; (2) that the expenditure in material the produce of that country, and/or in labour performed in that country, on each and every article is not less than one-half of the factory or works cost of such article in its finished state.

GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT).—At its first meeting in February 1946 the Economic and Social Council of the United Nations set up a preparatory committee (of which New Zealand was a member) to prepare for an international conference on trade and employment. The work of this committee culminated in the Havana Conference of 1949, which drew up a Charter for an International Trade Organization.

This Charter was not accepted by any country and the organization was therefore never established, but the members of the preparatory committee had also made separate arrangements for the conduct of tariff negotiations among themselves.

These tariff negotiations took place during the second session of the Preparatory Committee in Geneva in 1947, and the concessions given by each country were embodied in schedules to a General Agreement on Tariffs and Trade. The tariff negotiations themselves were bilateral but all the concessions were applied multi-laterally, so that New Zealand receives the benefit of reductions made by all participants, and, conversely, New Zealand's concessions apply to all the other countries which took part. In addition, the existing commitments to countries mentioned earlier that they should receive most-favoured-nation treatment required that the benefits should be extended to them even though some of these countries did not adhere to the General Agreement. Where they did adhere the Agreement superseded the existing arrangements.

Concessions are of two kinds—actual reductions of duties and bindings of duties against increase.

The Agreement, which provides for concessions under both the British preferential and most-favoured-nation tariffs, was applied provisionally by New Zealand on 26 July 1948.

Further negotiations took place at Annecy (1949) and Torquay (1950–51).

The foreign countries to whose products the concessional rates of duty apply (i.e., the most-favoured nations) were proclaimed in the General Agreement on Tariffs and Trade Provisional Application Order 1948, and with later additions and deletions are now as follows: Argentina, Austria, Belgium (including overseas territories), Brazil, Chile, China, Cuba, Czechoslovakia, Denmark, Dominican Republic, Egypt, German Federal Republic, Finland, France (including overseas territories), Greece, Haiti, Italy, Liberia, Luxemburg, Netherlands (including overseas territories), Nicaragua, Norway. Peru, Republic of the United States of Indonesia, Spain, Sweden, Turkey, United States of America, Uruguay.

While the reduction of tariffs and other barriers to trade has been the principal aim of the General Agreement it has also provided an internationally accepted code of rules in world trade, and its regular sessions have been useful as a forum for the discussion and settlement of international trade problems and disputes.

As the International Trade Organization was never set up, the General Agreement on Tariffs and Trade has assumed increasing importance in this field over the years. Because of this, and of the experience gained in the operation of the Agreement, the contracting parties met in Geneva during the later part of 1954 and the beginning 1955 to review its terms and operations.

A number of amendments and additions to the Agreement were drafted together with an agreement to establish an Organization for Trade Co-operation (O.T.C.) to administer the General Agreement. The revised General Agreement and the agreement establishing the O.T.C. are at present before Governments for acceptance and have not yet entered into force.

The full texts of the relevant documents are available in the Government publication entitled Review of the General Agreement on Tariffs and Trade.

INTERNATIONAL WHEAT AGREEMENT.—The first International Wheat Agreement was negotiated in March 1949 and, with minor amendments, it was renewed in 1953 and 1956. The present Agreement came into force on 1 August 1956 and expires on 31 July 1959. New Zealand continues to be a member of the International Wheat Council, which meets yearly to review the working of the Agreement in relation to the world trade in wheat.

The objectives of the Agreement are to assure supplies of wheat to importing countries and markets for wheat to exporting countries at equitable and stable prices.

The basis of the Agreement is a guarantee by each exporting country to make specific quantities of wheat available to importing countries, each of which guarantees to purchase specified quantities from the exporting countries. The obligations on participating exporting and importing countries to supply and purchase their guaranteed quantities are of special significance when prices are at the maximum or minimum price stipulated in the Agreement.

The price range in the present Agreement is $2.00 per bushel at the maximum and $1.50 at the minimum (in Canadian currency), and this relates to No. 1 Northern Manitoba wheat in bulk in store Fort William/Fort Arthur. The Agreement contains provisions for necessary price adjustments according to quality and freight differentials for wheat supplied by other countries.

New Zealand's annual wheat requirements are approximately 13 million bushels, and its guaranteed quantity under the Agreement is 5,878,994 bushels (160,000 metric tons). Australia is our normal source of supply, and total wheat imports for the year ended 31 January 1957 were 10,125,721 bushels.

INTERNATIONAL SUGAR AGREEMENT.—The International Sugar Agreement, which came into force on 1 January 1954, was negotiated in London in 1953 under the auspices of the Economic and Social Council of the United Nations Organization, and marked the end of several unsuccessful attempts over a long period from before 1939 to secure international collaboration in sugar matters.

The main objectives of this Agreement are similar to those of the International Wheat Agreement—to assure supplies of sugar to importing countries and markets for sugar to exporting countries at equitable and stable prices.

Unlike the International Wheat Agreement, participating importing countries do not undertake to purchase specified quantities of sugar from the participating exporting countries but they arc restricted in the quantities they may purchase from non-participating exporting countries. Exporting countries are restricted in the quantities they may offer on the “free market” and are allocated specific quantities or “basic export tonnages.”

The important provisions of the Agreement relate to the action to be taken by the International Sugar Council when the world sugar price falls below 3.25 cents or rises above 3.45 cents per pound f.a.s. Cuba (in United States currency). The “basic export tonnages” for individual exporting countries are increased or reduced according to the state of the world sugar market.

The Agreement was reviewed and amended at a conference held in New York in 1956 under the auspices of the Economic and Social Council of the United Nations Organization, and terminates on 31 December 1958.

New Zealand has not joined this Agreement but has been granted observer status at sessions of the International Sugar Council. Our annual requirements of raw sugar are approximately 100,000 tons, imported in recent years mainly from Australia and Fiji. Of this quantity, 75,000 tons are purchased annually from Commonwealth sources under a special arrangement.

Chapter 11. SECTION 11—SHIPPING AND TRADE OF PORTS

Table of Contents

STATISTICS of the numbers and tonnages of vessels arriving in New Zealand ports from overseas or departing from New Zealand ports for overseas destinations are compiled by the Customs Department. In addition the Department of Statistics receives data from each port of the arrivals and departures of all vessels, overseas and coastal.

The figures given in this Section include all registered merchant vessels trading at New Zealand ports: thus they exclude naval vessels when engaged in their normal duties, private launches, lighters engaged in loading or unloading vessels in roadsteads, trawlers, other fishing vessels, and pleasure craft. Merchant vessels used in the transport of troops are included.

OVERSEAS SHIPPING.—In recording the following statistics only one entry and one clearance is counted for each voyage: at the first port of call and the port of final departure, regardless of the number of ports visited by the vessel while in New Zealand waters.

However, statistics are also compiled showing the relative overseas trade of the various ports, wherein every overseas vessel is recorded, whether entered overseas or coastwise. Tables showing the total movement of shipping at all ports appear later in this section.

The following table gives the number and net tonnage of overseas vessels entering and clearing New Zealand ports during the years 1946–56, distinguishing those entered and cleared “with cargo” (cargo manifest tonnages are also shown for these) from those “in ballast.”

YearWith CargoIn BallastTotal
VesselsNet TonnageCargo Manifest Tonnage*VesselsNet TonnageVesselsNet Tonnage

* Direct comparisons of import and export tonnages are invalid since the former contain a much higher proportion of goods recorded in “measurement” tons than do the latter.

† “In ballast” means (a) inwards—“having no cargo for discharge in New Zealand”; (b) outwards—“having no cargo loaded in New Zealand.”

Entered
19463441,485,4192,097,037118656,1074622,141,526
19474141,812,7032,822,52052245,2884662,057,991
19484461,857,8252,758,41860279,6565062,137,481
19495092,186,6923,100,36854285,9645632,472,656
19505492,464,0933,492,03248224,1305972,688,223
19515022,316,3443,641,66744236,4655462,552,809
19526522,759,9494,400,25452268,0817043,028,030
19536142,502,8563,617,49759264,7016732,767,557
19546872,882,3104,453,50664277,8227513,160,132
19557533,173,2114,858,36971353,3578243,526,568
19567143,009,1944,368,50364341,0367783,350,230
Cleared
19462841,343,6581,044,616151689,1694352,032,827
19472961,285,4401,077,184167769,2434632,054,683
19483301,420,4011,118,493164721,9104942,142,311
19493821,703,9931,033,725174740,9755562,444,968
19503631,713,2421,163,934212911,6475752,624,889
19513321,561,6421,129,629218986,3985502,548,040
19523881,774,6581,173,5773381,365,6387263,140,296
19534061,746,1571,175,0352701,057,8636762,804,020
19544271,800,3051,224,9783081,332,6297353,132,934
19554512,014,9521,328,1553491,435,5218003,450,473
19564692,031,3481,530,4983171,347,6917863,379,039

The ballast figures include vessels embarking and disembarking passengers only, or entering for, or clearing with, bunkers and stores only, as well as the normal ballast movement.

Direction of Overseas Shipping.—Particulars of the number and net tonnage of vessels entered and cleared between New Zealand and various countries during 1954 and 1955 are given in the following table.

19541955
EnteredClearedEnteredCleared
No.Net TonnageNo.Net TonnageNo.Net TonnageNo.Net Tonnage
United Kingdom144853,927133889,9971711,035,251142965,945
Aden14,98212,717844,52228,323
British Borneo  1164,034    
Ceylon415,321  312,65413,000
Republic of India619,867935,675517,276520,461
Malaya and Singapore35204,2481151,43041226,6591681,416
Union of South Africa745,28513,291528,80126,582
Canada1694,0041194,73522140,95112113,140
Australia292910,2733221,023,8093121,046,2823441,173,515
Fiji45119,75842100,10648107,1215098,831
Gilbert and Ellice Islands1148,9682392,9221351,214935,998
Nauru Island44160,33936138,85950178,20868255,615
Belgium311,627  514,42716,163
France29,717836,884  730,952
Sweden522,501  29,583  
Bahrain1696,10419118,60619116,4051479,306
Iran  15,039315,905317,181
Indonesia1372,476635,419951,1201796,608
Japan1852,2831945,5872263,8781552,821
Egypt      15,029
Tunisia24,869      
Netherlands Antilles1699,30019109,687525,4721162,924
United States of America34170,41823125,36341199,6661572,325
Other countries37143,86540158,77440141,17365264,338
      Totals7513,160,1327353,132,9348243,526,5688003,450,473

The year 1955 was a record year for overseas shipping entering New Zealand ports, exceeding the previous record in 1954. In earlier years the tonnage of shipping entering from and clearing for the United Kingdom was higher than that from any other individual country. In 1954, however, shipping to and from Australia exceeded that recorded for the United Kingdom. This was the first year in which over 1,000,000 tons of shipping left New Zealand for an individual country.

The next table shows the net tonnage of shipping between New Zealand and certain principal countries for the five years 1951–55.

Net Tons

YearAustraliaUnited KingdomUnited States of AmericaCanadaPacific Islands
Entered
1951686,668716,810166,467102,304226,484
1952821,337914,480191,11096,577319,902
1953735,683820,127172,65472,507259,003
1954910,273853,927170,41894,004359,490
19551,046,2821,035,251199,666140,951342,638
Cleared
1951656,961882,116133,97999,786289,160
1952887,737949,784144,362107,795369,104
1953917,625869,389133,55722,675283,224
19541,023,809889,-997125,36394,735345,275
19551,173,515965,94572,325113,140399,789

Ports of Arrival and Departure.—The next table shows the extent to which various ports were made the first port of arrival or the last port of departure by overseas vessels during the last three years. The relative overseas trade of the various ports can be judged only by taking into account the coastwise visits of overseas vessels in the course of unloading and loading. This is shown in later tables.

Net Tons

PortEnteredCleared
195319541955195319541955
Auckland1,383,6221,635,9791,845,7661,086,7741,238,1271,323,752
Tauranga967 2,63515,62642,01652,786
Gisborne13,58611,3826,6229,49228,54739,452
Napier53,09349,70976,92376,660140,350101,138
New Plymouth118,823131,833119,06294,065154,346164,069
Wanganui  292   
Wellington797,631858,6541,024,876959,407805,397960,293
Picton1,982796    
Nelson10,89115,250 16,50933,127 
Westport      
Greymouth4167759,3191,603 23,844
Lyttelton226,960284,219285,777203,483211,736258,823
Timaru45,29034,67922,71710,20627,86931,964
Oamaru     11,800
Dunedin82,533106,54874,021224,472339,753376,568
Bluff31,76330,30858,558105,723111,666105,984
      Totals2,767,5573,160,1323,526,5682,804,0203,132,9343,450,473

As will be seen 80 per cent of overseas vessels (on a tonnage basis) arriving in New Zealand made Auckland or Wellington their first port of entry, and 67 per cent used one of these two ports as the final departure point.

Nationality of Overseas Shipping.—The table following shows the nationality of vessels arriving in New Zealand during the years 1951–55. Vessels registered in the United Kingdom represented 61 per cent of the total tonnage recorded in 1955, the remaining British Commonwealth countries accounted for 20 per cent, and other countries for 19 per cent.

A feature of the table is the relatively small totals shown for shipping registered in New Zealand.

OVERSEAS SHIPPING INWARDS      Net Tons (000)

Country of Registry19511952195319541955
British Commonwealth—
  United Kingdom1,7641,6331,5911,8802,164
  New Zealand228388478501482
  Other British Commonwealth144190167204205
    With cargo1,9241,9851,9962,3422,557
    In ballast212226240243294
      Totals, British Commonwealth countries2,1362,2112,2362,5852,851
      Percentage of total8480818281
Other—
  Norway130244206253238
  Sweden856675769
  Netherlands4065393463
  Panama1148510111398
  United States of America3832213344
  Remaining countries87679885164
    Cargo392507507541616
    Ballast2542253460
      Totals, other countries417549532575676
      Percentage of total1620191819
      Grand totals2,5532,7602,7683,1603,527

TRADE OF PORTS.—The following matters dealing with the trade of ports are now covered: shipping tonnages, cargo statistics, and transhipments.

Shipping Tonnages.—This section deals with the tonnage recorded by the various ports in New Zealand and includes overseas and coastal shipping, irrespective of whether the former had been entered or cleared overseas or coastwise. Thus overseas vessels have been recorded as overseas arrivals and departures on every visit to a New Zealand port, instead of only at the first port of call and the final port of departure as in the earlier tables.

The movement of overseas and coastal vessels on the New Zealand coast is well illustrated in the following table, which gives the aggregate number and tonnage of the total calls made during each of the years 1946–56.

YearOverseas VesselsCoastal VesselsTotal
NumberNet TonnageNumberNet TonnageNumberNet Tonnage
19461,1914,774,61312,7703,709,35713,9618,483,970
19471,1444,966,08812,8084,528,94113,9529,495,029
19481,1734,857,98213,3334,579,30014,5069,437,282
19491,4825,946,33213,1174,298,38814,59910,244,720
19501,5296,364,06812,8644,324,15214,39310,688,220
19511,3976,131,36711,4223,806,25312,8199,937,620
19521,8207,640,41013,6224,621,96315,44212,262,373
19531,8417,257,77513,6964,451,46515,53711,709,240
19542,0498,332,10713,5024,782,20815,55113,114,315
19552,2009,189,06613,2394,740,26715,43913,929,333
19562,2689,752,76912,9844,855,29515,25214,608,064

Figures for recent years show substantial increases in both the overseas and coastal trade of ports, although the coastal trade on this basis showed a decrease in 1951 as compared with 1950. This would be mainly accounted for by the waterfront dispute which occurred in 1951.

During the last five years there has been little change in the number of calls made by overseas vessels at New Zealand ports. It has been ascertained that an average of 2.7 calls at ports is made by each overseas vessel.

The following table shows for the three years 1953–55 the number and net tonnage of overseas vessels arriving at New Zealand ports, and covers vessels entered overseas or coastwise.

Port195319541955
NumberTonnageNumberTonnageNumberTonnage
Whangarei1451,2411970,6531867,111
Auckland4891,847,8165622,285,7066342,614,744
Tauranga2323,3244253,6354968,635
Tolaga Bay    21,499
Gisborne1574,3281688,9542280,744
Napier78361,621107468,152114524,472
New Plymouth81349,09481378,77993445,735
Wanganui    1292
Wellington4932,094,3374491,995,8954672,283,244
Picton34,02321,53835,882
Nelson2064,76030100,67334103,801
Westport1261    
Greymouth1817,1232221,6051717,209
Lyttelton2621,045,6072891,210,0333081,250,184
Timaru62226,57885322,87483332,170
Oamaru68,9511015,7111422,203
Dunedin201789,080249959,305254997,908
Bluff75299,63186358,59487373,233
      Totals1,8417,257,7752,0498,332,1072,2009,189,066

Overseas vessels are shown to have called at 16 ports in 1953, 15 in 1954, and 17 in 1955. In the years 1936–38 approximately 24 New Zealand ports were visited by overseas vessels. During the war years the concentration of overseas shipping at the main ports was most marked. This concentration is still noticeable, though now lessened from what it was during those years. The following table shows the percentages of overseas shipping tonnage recorded at the ports of Wellington, Auckland, and Lyttelton for the years 1951–55. In most years these three ports handle two-thirds of the total tonnage of overseas shipping.

Percentage

Port19511952195319541955
Auckland28.326.225.527.428.5
Wellington28.328.128.924.024.8
Other North Island10.810.511.812.712.9
      North Island67.464.866.264.166.2
Lyttelton13.915.214.414.513.6
Other South Island18.720.019.421.420.2
      South Island32.635.233.835.933.8
      New Zealand totals100.0100.0100.0100.0100.0

The following table shows for the years 1953–55 the total shipping traffic handled inwards at the various port?. Overseas and coastal vessels calling at more than one port in the course of a single voyage have been recorded as entered at every port visited.

Port195319541955
NumberTonnageNumberTonnageNumberTonnage
Parengarenga1148,80013610,858352,763
Awanui19813,20218712,67119613,814
Mangonui554,077684,529714,142
Whangaroa917,172685,74414114,422
Russell775,1301316,957805,119
Whangarei1,109169,703808184,475892201,668
Mangawai  2248,9941947,536
Auckland5,1892,219,1155,3222,650,3595,4552,997,782
Onehunga8321,9848825,0348523,032
Raglan185,010164,4903911,480
Thames36813,50039812,6191575,162
Coromandel241,3631116,3081044,108
Whitianga821,886902,059831,756
Tauranga15642,66116175,15821394,841
Whakatane8710,067899,97110311,127
Opotiki535,368424,176565,552
Tokomaru Bay4913,8393711,1273410,387
Tolaga Bay257,190277,673258,016
Gisborne172140,184167156,148164139,466
Napier212422,492219516,875243578,794
New Plymouth172379,652167407,249187476,136
Patea12613,460919,41412613,004
Wanganui34883,30233783,05431175,842
Wellington2,5203,552,4882,3623,660,4332,3683,950,219
Picton319178,401368222,509326253,534
Wairau726,336574,868696,072
Nelson880250,094807215,254761219,357
Motueka25926,06324823,93728730,184
Waitapu281,717    
Collingwood361,770241,320231,473
Westport157129,398157126,722142119,250
Greymouth148109,017132115,838117101,497
Lyttelton1,0672,199,1121,1042,526,7471,0832,511,027
Timaru283332,408333446,066308435,090
Oamaru7455,7388865,9889069,176
Dunedin382895,1054181,045,9054111,078,024
Bluff377369,736352431,278343436,781
Half-moon Bay12712,70011711,50811711,700
      Totals15,53711,709,24015,55113,114,31515,43913,929,333

In 1955 Wellington ranked as the first port of New Zealand as regards aggregate tonnage of shipping entered, followed by Auckland, Lyttelton, Dunedin, Napier, New Plymouth, Bluff, and Timaru in that order.

The most noteworthy change in the tonnage of shipping handled during the last three years was at Tauranga, where the tonnage more than doubled from 1953 to 1955.

It should be remembered in any comparison of port statistics of shipping tonnages that certain ports are termini of inter-Island passenger services, and this factor adds considerably to the volume of shipping traffic credited to them—viz., Wellington, Lyttelton, Picton, and Nelson (up to April 1953).

Cargo Statistics.—In order to obtain statistics of the total trade of each port a system of monthly returns from the various port authorities was instituted in 1922 showing under a number of headings the quantity of goods handled, distinguishing inwards and outwards cargo (coastal and overseas), and transhipments. The resultant statistics show on a tonnage basis the total trade of each port, including all exports, whether placed on the overseas vessel there, sent to a central port for shipment overseas, or despatched coastwise to another port for consumption in New Zealand.

The following table gives a summary of the tonnage of cargo handled at all ports for the years 1946–56.

Manifest Tons

YearInwards*TranshipmentsOutwards*Total Tonnage
CoastalOverseasCoastalOverseas

* Excluding transhipments.

19462,062,8832,077,881209,9112,008,9711,112,8647,682,421
19472,114,9642,790,934231,6411,943,3891,099,1508,411,719
19482,034,8502,956,793264,0561,952,1141,150,3858,622,254
19491,922,3393,266,667222,4161,889,2521,108,1958,631,285
19501,923,2213,504,616225,4641,901,2241,203,2038,983,192
19511,649,4393,810,425152,8391,596,3871,166,1358,528,064
19521,971,9254,811,147207,2181,846,6161,328,21810,372,342
19531,975,4483,835,923174,2941,858,6081,253,3849,271,951
19542,120,7864,529,665170,8551,948,1951,277,57210,217,928
19552,155,5885,050,090204,3051,951,0141,389,65710,954,959
19562,148,7334,947,327190,1721,943,7841,555,59810,975,786

The next table shows for each port the total cargo inwards and outwards in 1955. The high proportion of transhipments in the case of Wellington is very noticeable.

Manifest Tons

PortInwards*TranshipmentsOutwards*Total Tonnage
CoastalOverseasCoastalOverseas

* Excluding transhipments.

Mangonui4,705  504 5,209
Russell1,145  285 1,430
Whangarei88,72444,971 151,896 285,591
Auckland600,7942,064,07652,386254,920484,7583,509,320
Onehunga43,968  50,696 94,664
Raglan12,070  495 12,565
Thames5,287  836 6,123
Tauranga25,0685,279 9,58983,215123,151
Whakatane13,566  11,060 24,626
Opotiki2,908  3,748 6,656
Tokomaru Bay2,630  1,173 3,803
Tolaga Bay1,77993745951 3,757
Gisborne62,6763,42420511,18314,39292,085
Napier62,895221,6404,1278,204100,445401,438
New Plymouth37,125294,7483,1193,12791,904433,142
Patea763  20,496 21,259
Wanganui91,099318 21,314 112,731
Wellington480,5231,221,827129,237379,491264,5772,604,892
Picton49,892  42,92965793,478
Wairau7,378  3,270 10,648
Nelson71,75631,64282554,69423,114182,856
Motueka6,151 1929,890 36,079
Westport5,432  212,547 217,979
Greymouth11,916202 201,904 214,022
Lyttelton273,774610,5103,219309,38695,1321,295,240
Timaru26,09543,593 60,20856,982186,878
Oamaru11,76516,869 28,6941257,340
Dunedin97,789411,72911,12356,75973,320661,843
Bluff53,28078,325 19,058101,149251,812
Half-moon Bay2,635  1,707 4,342
      Totals2,155,5885,050,090204,3051,951,0141,389,65710,954,959

In any consideration of these statistics it is advisable to note that the term “ton” does not invariably denote a weight of 2,240 lb. For a portion only of the goods handled is it practicable to obtain the actual weights involved. In other cases close approximations are made by applying uniform formulae as to the number of bales, cases, sacks, etc., to the ton. A considerable portion of trading goods, however, is recorded in measurement tons, 40 cubic feet of space being regarded as the equivalent of a ton. As the practice is uniform, comparisons from year to year are not appreciably affected, nor are comparisons between ports, unless there is a radical difference in the class of trade carried on, in which case recourse should be had to consideration of items of trade. Since a much larger proportion of imports are in measurement tons, thus artificially swelling the figures, direct comparison of import cargo tonnage with export is invalid.

The penultimate column of the preceding table shows, excluding coastal to overseas transhipments, the quantity of cargo placed on board the overseas vessels at the respective ports, while an earlier table shows the number and tonnage of overseas vessels calling at each port. These tables give a good indication of the extent to which each port enters directly into the overseas trade of New Zealand. The following table shows for the year 1955 the total shipments from each port overseas and coastwise (including transhipments) of nine principal commodities exported overseas by New Zealand and the total cargo handled at each port, and thus shows the extent to which the various ports handle the main exports, although the goods may be sent outwards coastwise for transhipment at another port.

Manifest Tons

PortWoolFrozen MeatCanned MeatButterCheeseOther Milk ProductsTallowHides, Skins, and PeltsSeedsAll Other GoodsTotal
Mangonui109      11 384504
Russell         285285
Whangarei405  7,110 9029 144,280151,896
Auckland35,62387,15513,566148,13918,47781,1751315,921529343,329743,927
Onehunga2366341513249215449,88850,696
Raglan     6 834402495
Thames7      1 828836
Tauranga     4   92,80092,804
Whakatane 94 7,2771,5421,517 56257211,060
Opotiki 450 2,016 6741423 5713,748
Tokomaru Bay1,150        231,173
Tolaga Bay922        74996
Gisborne6,0467,837241,054 801,2651,0211998,25425,780
Napier38,56440,58624315372544,7254,5276722,787111,886
New Plymouth1,60627,488 16,65727,8513,8973,2081,968 15,36998,044
Patea    20,484    1220,496
Wanganui8,651  8622,301 433517 8,55021,314
Wellington46,62880,49873422,25539,46911,3027,79212,037592488,343709,650
Picton4703,481  1,121 1963521838,06543,586
Wairau123       1,1711,9763,270
Nelson9731,3751401 805964132274,67978,540
Motueka169  29   2429,70529,909
Westport      25  212,522212,547
Greymouth13     6  201,885201,904
Lyttelton22,82931,9335213331,7384478,7464,4003,786330,239404,972
Timaru14,65433,932 10811 3,5921,7091,89560,587117,190
Oamaru3       23028,47328,706
Dunedin24,61921,7973561531,8678193,8402,05897773,634130,120
Bluff21,49351,3446492799,3998,8885,3553,1071,18418,509120,207
Half-moon Bay21        1,6861,707
      Totals225,080387,97315,941206,924125,248109,55739,81748,11310,8842,248,7113,418,248

Transhipments.—Transhipments of cargo during 1955 totalled 204,305 tons, of which 129,237 tons were transhipped at Wellington.

Transhipments fall into the following four classes:

  • Coastal to Coastal.—Cargo which has been loaded in a vessel at one New Zealand port and is transhipped to another vessel for discharge at another New Zealand port.

  • Coastal to Overseas.—Cargo which has been loaded in a vessel at a New Zealand port and is transhipped to another vessel for discharge at a port outside New Zealand.

  • Overseas to Coastal.—Cargo which has come from overseas and is transhipped to another vessel for discharge at a New Zealand port.

  • Overseas to Overseas.—Cargo which has come from overseas and is transhipped to another vessel for discharge outside New Zealand.

The first class represents purely coastal trade while goods in the last class do not enter New Zealand, but each of the others may be added to the appropriate figures of overseas trade shown previously, to ascertain the total tonnage of goods arriving from or departing for overseas. Thus the total inward tonnage from overseas in 1955 was 5,171,704, and the total outward tonnage going overseas 1,461,001. Comparative figures for 1954 were 4,627,141 and 1,340,713 tons respectively.

The following table shows for 1954 and 1955 the transhipment trade of each port affected.

Manifest Tons

PortCoastal to CoastalCoastal to OverseasOverseas to CoastalOverseas to OverseasTotal
1954195519541955195419551954195519541955
Auckland1,5756112,8403,63845,25143,2054,6864,93254,35252,386
Onehunga2       2 
Tauranga180       180 
Tolaga Bay 45       45
Gisborne17  205    17205
Napier48611,3813,176493890  1,9224,127
New Plymouth57  3,01393  1061503,119
Wellington2,0054,62658,73260,95646,28063,57930976107,326129,237
Nelson880732  9393  973825
Motueka6719      6719
Lyttelton71981883562,2432,765  2,5023,219
Dunedin34141  3,02311,082  3,36411,123
      Totals5,2436,23363,14171,34497,476121,6144,9955,114170,855204,305

The next table shows the various items of merchandise, etc., which comprised the transhipment trade in 1955.

Manifest Tons

ItemCoastal to CoastalCoastal to OverseasOverseas to CoastalOverseas to OverseasTotal
Beans and peas21,166190 1,358
Butter 1,072  1,072
Cement28 452 480
Cereal products34 145 179
Cheese2522,73514 22,760
Coal48   48
Fish98122 112
Flour31   31
Fruit, preserved2062,81422,842
Fruit, fresh 21,821942 22,763
Grain3 195 198
Hemp, linen-flax, and phormium  618 618
Hides, skins, and pelts8846 5859
Iron and steel, pipes, etc.436113,36413713,938
Machinery12321,601811,726
Manures2971628,720 9,179
Meat, frozen 3,801  3,801
Meat, preserved 934 97
Milk products (other than butter and Cheese) 208  208
Motor spirit, kerosene  7,851 7,851
Motor vehicles, parts and tires199 3,2673673,833
Oil, other mineral1,904 11,9772,00815,889
Paper, newsprint, etc. 66,19946,209
Potatoes85203  288
Seeds451511582356
Sugar1511 17
Tallow 2,009  2,009
Timber, hardwoods33 9,936 9,969
Timber, softwoods47 2,875 2,922
Wines, spirits, and beer60 1,314711,445
Wood-pulp  2,674 2,674
Wool9314,8911810615,108
All other goods2,7102,12846,2972,33153,466
      Totals6,23371,344121,6145,114204,305

It had been found that in the past too high a proportion of total cargo had been classified under the heading “All other goods”. With a view to reducing the percentage so classified and to provide a better analysis of cargo handled, a new classification of commodities for purposes of cargo statistics was introduced from 1 January 1955. As the content of some of the items is not the same as in previous years, and several new items were introduced in the new classification, strict comparison with earlier years is not possible.

Values of Exports and Imports by Ports.—Tables showing the values of exports and imports through the various ports are included in Sections 10B and 10C respectively.

NEW ZEALAND SHIPPING REGISTER.—The figures for vessels registered in New Zealand as at the end of each of the last eleven years are as follows.

YearSailing VesselsSteam and Motor VesselsTotals
VesselsGross TonnageNet TonnageVesselsGross TonnageNet TonnageVesselsGross TonnageNet Tonnage
1945454,0873,553406159,20380,376451163,29083,929
1946444,0753,541419161,68581,728463165,76085,269
1947454,0913,547433181,28991,542478185,38095,089
1948434,0493,515430190,38896,655473194,437100,170
1949444,0663,525438201,797102,079482205,863105,604
1950444,0663,525455241,477124,538499245,543128,063
1951433,7613,281460249,781128,622503253,542131,903
1952432,9202,492462246,819127,758505249,739130,250
1953402,0591,653463259,633133,882503261,692135,535
1954392,0421,643465253,387130,648504255,429132,291
1955371,8311,497476255,107131,090513256,938132,587

The number and tonnage of vessels on the New Zealand register at 31 December 1955 were as follows.

Port of RegistrySailing VesselsSteam VesselsMotor Vessels
VesselsGross TonnageNet TonnageVesselsGross TonnageNet TonnageVesselsGross TonnageNet Tonnage
Auckland311,7841,450319,9004,78026431,60115,328
Napier   2948537103,5971,712
Wellington647473498,43951,0365969,62037,647
Nelson   45,5942,275164,8522,104
Lyttelton   62,9361,077153,2371,595
Timaru   19424881113
Dunedin   610,4175,5501211,5036,387
Bluff   31,05843012452141
    Totals371,8311,49787130,23466,173389124,87364,917

Auckland is the port of registry of the majority of the vessels forming New Zealand's “mosquito” fleet, the average net tonnage of the 326 vessels on the Auckland register being only 66 tons. At Auckland, Wellington, and Dunedin a number of the vessels of the Union Steam Ship Company of New Zealand are registered, while several are also registered in Australia.

In the next table vessels registered in New Zealand the end of 1955 have been classified according to whether employed in the coastal or the foreign trade. The totals given therein do not agree with those shown above, as vessels employed exclusively within “restricted limits” and pleasure vessels are not included. The total number of vessels so engaged was 167, of an aggregate net tonnage of 117,834.

Size of VesselEmployed in the Coastal Trade OnlyEmployed Partly in the Coastal and Partly in the Foreign TradeEmployed in the Foreign Trade Only
Number of VesselsNet TonnageNumber of VesselsNet TonnageNumber of VesselsNet Tonnage
Under 50 tons42805    
50 and under 100 tons211,578    
100 and under 200 tons253,3651155  
200 and under 300 tons61,476    
300 and under 400 tons165,6492751  
400 and under 600 tons41,925    
600 and under 800 tons32,271  21,498
800 and under 1,000 tons21,794  1923
1,000 and under 1,200 tons  11,098  
1,200 and under 1,500 tons810,64133,98011,293
1,500 and under 2,000 tons58,366611,80435,680
2,000 tons and over39,720  1243,062
      Totals13547,5901317,7881952,456

MARINE OFFICERS' CERTIFICATES.—The examinations for masters, mates, and engineers serving in the Mercantile Marine are conducted by the Marine Department, the regulations relating to these examinations being based upon those of the United Kingdom Ministry of Transport with such modifications as are necessitated by local conditions. The Ministry of Transport recognizes the following certificates only as of Imperial validity: extra master, master, first mate and second mate foreign-going ships, first and second class steam and motor engineers. It is a condition of such recognition that candidates must possess service qualifications and pass examinations similar and not inferior to those prescribed by the Ministry of Transport.

New regulations for the examination of masters and mates came into force on 1 August 1952 and those for marine engineers on 1 October 1939. Both sets of regulations provided for partial passes—i.e., the examination may be taken in two parts.

During the year ended 31 March 1956, 175 examinations were held for certificates as masters and mates. A summary of these examinations is as follows: of the 77 who passed in their examinations, 27 passed for certificates as master and mates of foreign-going ships, for masters and mates of home-trade ships, 7 as masters of river steamers, 25 as masters of oil engine vessels under ten tons register, and 1 as master of a fishing vessel.

A summary of the examinations of marine engineers held during the year ended 31 March 1956 is as follows: 194 candidates presented themselves for certificates of Imperial validity, of whom 52 passed and 73 secured partial passes. There were 131 examinations for certificates of New Zealand validity only, and 91 were successful in their examinations, which included 40 for third class steam engineer, 28 for first and second class coastal motor engineer, 6 for river engineer, 6 for local motor-ship engineer's certificates, and 11 for restricted limits P.V.O.S. engineer's certificates.

On 19 November 1953 both the Shipping and Seamen Act 1952 and the International Convention for the Safety of Life at Sea 1948 came into force.

SURVEY OF SHIPS.—Survey certificates were issued during the nine months ending 31 December 1955 for 3 foreign-going passenger ships, 1 foreign-going cargo steamship, 29 foreign-going cargo motor-ships, 8 home-trade steamships, 66 home-trade motor-ships, 18 restricted-limits steamships, and 233 restricted-limits motor-ships. A total of 352 surveys were made for seaworthiness, efficiency of equipment, extension of survey certificates, tonnage measurements, etc.

In addition, certificates were issued in terms of the International Convention for the Safety of Life at Sea 1948, 3 Safety Certificates passenger ships, 19 Safety Equipment Certificates cargo ships, 10 Safety Radiotelegraphy Certificates cargo ships, 1 Safety Radiotelephony Certificate cargo ship, and 13 Exemption Certificates.

LIGHTHOUSES.—Along the New Zealand coast there are seventy-six coastal lights of various types. In twenty-six cases the lights are watched or attended lights and the apparatus is classed as of the dioptric order—i.e., a central lamp sending its ray through a combination of surrounding lenses—while the remaining fifty coastal lights are automatic lights. The buildings housing the lights are of varying kinds, as necessitated by their respective situations.

Fog signals of the diaphone type arc established on Tiri Tiri Matangi, at Pencarrow Head, Godley Head, and Taiaroa Head; while radio beacons have been established at Cape Reinga, Tiri Tiri Matangi, Portland Island, Cuvier Island, Mokohinau, Baring Head, Stephens Island, the Brothers Island, Cape Campbell, Godley Head, Taiaroa Head, Dog Island, and Puysegur Point.

The most powerful light is that of Stephens Island, which, placed some 600 ft. above high water, is visible at a distance of 32 nautical miles. Next in order come Cape Reinga (altitude 542 ft.), visibility 31 miles; East Cape (505 ft.), visible at 30 miles; Cape Brett (altitude 490 ft.), visible at 29 miles; Cuvier Island (altitude 390 ft.) and Mokohinau (altitude 400 ft.), both of which have a visibility of 26 miles; Godley Head (altitude 317 ft.) and Portland Island (altitude 300 ft.), both visible at 24 miles. Thirteen other lights have a range of 20 miles or over, being Centre Island, Baring Head, and Akaroa, of 23 miles; Cape Palliser, Brothers, and Nugget Point, of 22 miles; Cape Foulwind, of 21 miles; Tiri Tiri Matangi, Cape Saunders, Channel Island, Marotiri, Tairoa Head, and Gibson Point, 20 miles each. The remaining lights have visibilities of under 20 miles.

All manually-attended coastal lighthouses are equipped with signalling flags and lamps, the keepers being competent to transmit or receive messages. In addition, fourteen of the principal lighthouses are equipped with radio-telephone systems of communication. Coastal lights—i.e., those outside the bounds of the various harbour authorities—are maintained by the Marine Department.

Expenditure on all lighthouses under the control of the Marine Department during the year 1955–56 was as follows: salaries, wages, and overtime, £42,243; stores, general maintenance, transport, etc., £58,965; radio beacon improvements, £37,968; total, £139,176, excluding recoverable expenditure of £23,160 for lighthouse tender Matai and telephone and meteorological allowances of £1,179, and administration expenses. Light dues for 1955–56 totalled £132,754, an increase of £6,622 on the previous year.

WRECKS.—In the case of any wreck or shipping casualty in New Zealand waters a Collector of Customs, Superintendent of Mercantile Marine, or other person empowered by the Minister of Marine, institutes an inquiry into the cause and circumstances of such casualty. If necessary, a formal investigation is held by a Magistrate, who has power to cancel or suspend the certificate of any officer from whose wrongful act or default damage has resulted.

Should any wreck occur on the coast, the Receiver of Wrecks for that district, usually an officer of the Customs, has the necessary authority to be used in the preservation of life and property.

The numbers of shipping casualties reported to the Marine Department during the year ended 31 March 1956 is shown in the following table.

Nature of CasualtyOn or Near the Coast of New ZealandOutside New ZealandTotal Number Reported
Number of ShipsRegistered TonnageNumber of ShipsRegistered TonnageNumber of ShipsRegistered Tonnage
Strandings—
  Total loss219  219
  Damaged4553  4553
  Undamaged618,026  618,026
      Totals, strandings1218,598  1218,598
Collisions—
  Total loss215  215
  Damaged1512,329  1512,329
  Undamaged45,665  45,665
      Totals, collisions2118,009  2118,009
Fires—
  Total loss      
  Damaged2255  2255
  Undamaged      
      Totals, fires2255  2255
Miscellaneous—
  Including damage by heavy seas, machinery defects, etc.1011,69933,2691314,968
      Grand totals4548,56133,2694851,830

Chapter 12. SECTION 12—RAILWAYS

Table of Contents

HISTORY AND DEVELOPMENT.—Railway history in New Zealand dates from the year 1860. In that year a contract was let for the construction of a line from Christchurch to Lyttelton, and the first portion of this line was opened on 1 December 1863. A line from Invercargill to Bluff Harbour was opened on 5 February 1867. The Provincial Council of Auckland in 1863 began the construction of a line from Auckland to Drury.

Although practically the whole of the railways are now State-owned, some were built by private enterprise. Of these the more important were constructed by the Midland and the Wellington-Manawatu Railway Companies.

At 31 March 1880, 1,167 miles of State-owned lines were open for traffic, and at 31 March 1900, 2,104 miles. The rail link between Wellington and Auckland was completed on 3 August 1908, and the first through passenger train left Wellington on 7 August 1908. Daily through express services were not operated until the privately-owned Manawatu line was taken over on 7 December 1908 and the last section from the Public Works Department on 15 February 1909. Total mileage open for traffic at 31 March 1910 was 2,717, a figure which increased by 292 to 3,009 during the next ten years.

The last section of the South Island Main Trunk railway from Picton to Bluff was taken over from the Public Works Department on 15 December 1945.

At 31 March 1956 there were 3,422 miles of State railways open for traffic, 1,681 miles in the North Island, and 1,741 miles in the South Island.

The Christchurch-Lyttelton section of railway, including the Lyttelton Tunnel, was electrified in 1928–29, the Otira – Arthur's Pass section, including the Otira Tunnel, in 1923, the Wellington-Johnsonville section in 1938, and the Wellington-Paekakariki section in 1940.

The Wellington – Upper Hutt Electrification Scheme was completed in July 1955, when electric suburban trains commenced running beyond Taita. Construction of a double track from Wellington to Trentham was completed in June 1955.

A tunnel through the Rimutaka Range in the North Island was opened for traffic on 3 November 1955. This tunnel, 5 miles 36 chains in length, is part of a deviation which has eliminated the difficult hill section between Upper Hutt and Cross Creek. The route deviates from the old line at Upper Hutt and links with it again near Featherston. The new section obviates the use of the special Fell engines and vans, with centre rail equipment, which operated between Summit and Cross Creek. Rail cars and diesel-electric trains operate through this tunnel.

New timber and paper mills in the extensive exotic forests of the Putaruru-Taupo district of the North Island are served by the recently completed Tokoroa Branch of approximately 18 miles from Putaruru to Kinleith. Similar industries in the nearby Kaingaroa Forest – Bay of Plenty area are served by a branch line of about 40 miles from Awakaponga to Murupara, which was opened for traffic in April 1955. The rail outlet to the port at Mount Maunganui has been completed.

The introduction of diesel-electric locomotives during 1955 saw the commencement of a radical change in motive power operation in New Zealand. At 31 March 1956, sixty-seven of these locomotives in operation accounted for 7.4 per cent of the total locomotive mileage. The change from steam-operated express services to rail cars has progressed during the year, seven new rail car services having come into operation, giving faster and more frequent services than were possible under steam operation. The majority of the new services have been provided with the new articulated rail cars seating eighty-eight passengers.

Government railways are constructed by the Ministry of Works and transferred to the Railways Department when completed. The gauge is 3 ft. 6 in. Standard rails for heavy traffic main lines weigh 91 lb. per lineal yard, and for secondary and branch lines 721b. per yard. At present much of the track is laid to the standards adopted prior to 1950—viz., 851b., 701b., and 55 lb. rails. Sleepers, 2,400 to the mile, are principally of Australian hardwood and New Zealand silver pine and totara.

ADMINISTRATION.—In the year 1876 the railways of New Zealand passed from the control of the Provincial Governments to the Public Works Department. A few years later the opened lines were handed over to the Working Railways Department, and in 1889 a Board of three Railway Commissioners was appointed. This was the form of management for five years, when a General Manager, responsible to the Minister of Railways, was appointed. Control by a General Manager continued until 1952, except for two short periods of board management, from 1925 to 1928, when a Board of three members was appointed, and from 1931 to 1936, when the Board consisted of five members.

On the recommendation of a Royal Commission appointed on 3 March 1952 to inquire into and report upon all aspects of the New Zealand Government Railways, their future development, and sphere of operations, the Government established a Railways Commission. Five Directors were appointed from 12 January 1953. When the position of General Manager became vacant on 1 April 1955, the Government appointed a Director of the Railways Commission to the dual position of General Manager and Director. The Government Railways Amendment Act 1956 provided for the abolition of the Railways Commission on 1 April 1957, and reversion of control to the General Manager, who is responsible to the Minister of Railways.

COST OF CONSTRUCTION.—The capital cost of State railways as at the end of each of the last five financial years is given below.

£

31 March 195231 March 195331 March 195431 March 195531 March 1956

* Equal to £29,637 per mile of open line.

Open for traffic—
  Railway83,640,54488,648,41692,761,04798,010,014101,417,942*
  Lake Wakatipu steamer service22,55722,55722,55722,55722,557
  Subsidiary services4,353,7264,648,8494,828,8385,521,5027,107,685
  General9,8969,8969,896  
      Totals88,026,72393,329,71897,622,338103,554,073108,548,184
Works under construction3,168,6324,654,5636,972,1698,696,9909,704,455
      Grand totals91,195,35597,984,281104,594,507112,251,063118,252,639

So varied are the geographical features of New Zealand that a great disparity exists in the cost of constructing the individual sections of lines. Numerous mountain chains and rivers make railway construction in general both difficult and expensive. The Otira Tunnel is 5 miles 26 chains long, and the Rimutaka Tunnel, is 5 miles 36 chains. The length of the longest bridge, over the Rakaia River, is 5,720 ft., and the largest viaduct, the Mohaka, is 887 ft. long and 318 ft. above water-level.

ROLLING STOCK.—Information as to the rolling stock in use on the State railways as at 31 March 1956 is given in the following table.

* In addition there are 5 diesel-electric shunting locomotives in use in workshops and 54 diesel and petrol shunting tractors in use at stations.

Locomotives—
  Tender467
  Tank132
  Electric28
  Diesel electric67
  Diesel shunting69
      Total763*
Passenger vehicles—
  Sleepers17
  Combination day-sleepers1
  First class109
  Second class1,066
  Composite18
  Rail cars40
  Electric multiple units128
  Postal8
      Total1,387
 Four-wheeledBogie
Wagons—
  Horse boxes6671
  Cattle1,04041
  Sheep3,54844
  Frozen and chilled meat784619
  Cool, ventilated1,126 
  Covered goods549451
  High-side20,968348
  Low-side1,533 
  Platform 1,062
  Brake vans12471
Other3,435493
 33,0613,600
      Total36,661

From 1901 to 1939 most of the rolling stock, including carriages, diesel-mechanical rail cars, wagons, and locomotives, was built in the Department's workshops. Special types were imported from England, notably multiple unit electric coaches and the prototypes of electric locomotives.

During the war years the resources of the Railway workshops were directed towards Armed Forces requirements and urgent repairs of rolling stock. Construction programmes consequently fell far behind schedule, and little headway has since been made owing to staff and material shortages.

To alleviate an acute post-war wagon shortage orders were placed in Great Britain for 5,500 general-purpose four-wheeled LA and LC wagons and 2,380 wagons of other classes. Deliveries commenced in 1947, and by November 1953 all had been received. Final assembly of these wagons in New Zealand Railway Workshops should be completed early in 1957. The present programme envisages 3,700 new wagons of which 3,150 will be imported.

Locomotives were also ordered from overseas; during the 1954–55 year ten 1,500 h.p. diesel-electric locomotives were imported from Great Britain and put into operation on the North Island Main Trunk; these were followed by thirty 1,425 h.p. locomotives from North America for the same area.

For other areas of the railway system forty-two 750 h.p. diesel-electric locomotives have been imported and sixty-six diesel-mechanical locomotives have been received for shunting purposes, with a further sixteen still to be supplied.

The heaviest types of locomotive used in New Zealand have been designed and built in the New Zealand Railway workshops, the K class weighing 140 tons in working trim and the KA 145 tons (30,815 lbs. tractive force), and KB (with booster) 146 tons, with 36,815 lbs. tractive force. The building of the last steam locomotives on order (35 JA class—109 tons) will be completed this year at the Hillside workshops.

At this point it is of particular interest to note the changes now taking place in New Zealand in the relative importance of steam traction, and in particular coal-fired steam traction, compared with other forms of motive power. The following table, showing the locomotive miles under the different classifications, is significant.

19551956Variation
Steam—MilesMilesMilesPer Cent
  Coal fuelled11,532,06410,744,710–787,3546.83
  Oil3,925,2213,692,697–232,5245.92
      Totals15,457,28514,437,407–1,019,8786.60
Electric721,007735,158+14,1511.96
Multiple units1,453,2071,676,637+223,43015.37
Diesel-electric locomotives785,5071,554,685+769,17897.92
Diesel (shunting locomotives)542,386789,767+247,38145.61
Petrol and diesel shunting tractors (under 200 h.p.)232,165240,337+8,1723.52
Rail cars1,075,100937,606–137,49412.79
Articulated rail cars 538,921+538,921 
      Total locomotive miles20,266,65720,910,518+643,861318

Standard carriages are 56 ft. in length, fitted with chair seats to accommodate thirty-one to fifty-six passengers, steam-heated, and electrically lit.

REVENUE AND EXPENDITURE.—The total revenue from and expenditure on the railways (including subsidiary services) during each of the years 1945–46 to 1955–56 were as shown below.

£

Year Ended 31 MarchGross RevenueExpenditureNet Revenue

* Loss recovered from Consolidated Fund.

194615,444,84714,384,8441,060,003
194715,680,05715,944,270–264,213*
194817,070,87217,710,897–640,025*
194918,597,72819,700,594–1,102,866*
195019,541,18420,596,740–1,055,556*
195122,085,49122,079,7015,790
195223,993,18625,195,674–1,202,488*
195326,607,93726,524,66583,272
195427,894,86827,490,573404,295
195531,285,27429,416,8251,868,449
195632,262,91630,829,3991,433,517

The expenditure figures do not include interest on capital liability. With £3,649,454 interest added, the 1955–56 profit of £1,433,517 would become a loss of £2,215,937. The chief items of expenditure for 1955–56 were wages £18,270,324, locomotive fuel (including electricity) £2,309,576, stores and materials £4,130,466, depreciation and renewals £3,579,737, and miscellaneous £2,539,296.

A sum of £3,651,747 was set aside in 1955–56 for depreciation and track renewals, while expenditure from these funds amounted to £2,911,272. The amounts standing to the credit of the Depreciation and Renewals Accounts at 31 March 1956 were £7,778,571 and £246,518 respectively.

The revenue and expenditure for the last five years, distinguishing between railway operation and other items, are given in the following table.

£

Year Ended 31 MarchGross RevenueExpenditureNet Revenue
Railway OperationSubsidiary Services, etc.Railway OperationSubsidiary Services, etc.Railway OperationSubsidiary Services, etc.

* Net loss.

195220,097,2423,895,94421,515,3003,680,374–1,418,058*215,570
195322,588,7584,019,17922,755,3973,769,268–166,639*249,911
195423,682,3654,212,50323,621,4033,869,17060,962343,333
195527,009,4594,275,81525,542,2143,874,6111,467,245401,204
195627,871,4104,391,50626,774,9494,054,4501,096,461337,056

The respective Island figures of revenue and expenditure for railway operation only (i.e., omitting subsidiary services) are given below for the 1955–56 year.

Section of RailwayRevenueExpenditureNet Revenue or LossRatio of Expenditure to Revenue
 £££Per Cent
North Island Main Line and branches18,500,60716,635,8201,864,78789.92
South Island Main Line and branches9,361,49110,115,495–754,004108.05
Nelson section9,31223,634–14,322253.80
      Totals27,871,41026,774,94*91,096,46196.07

The various subsidiary services now conducted by the Railways Department, with the revenue and expenditure of each during the last two years, are shown below. Full working costs, including interest, are charged against these services, and the interest so charged is taken into miscellaneous receipts as revenue.

£

ServiceRevenueExpenditure
1954–551955–561954–551955–56
Lake Wakatipu steamers21,74719,76126,89329,147
Refreshment service338,709350,831375,663388,054
Bookstall service271,064260,702269,236257,229
Advertising service70,63271,22161,02762,150
Departmental dwellings232,442261,560620,120707,804
Leases of bookstalls, etc.89,58989,03682,59091,865
Road services—Passengers and goods2,561,1132,584,9612,439,0822,518,201
Miscellaneous receipts690,519753,434  
      Totals4,275,8154,391,5063,874,6114,054,450

Revenue.—In the following table the railway operating revenue during 1955–56 and each of the preceding ten years is classified according to the class of traffic, etc., from which it was derived.

£

Year Ended 31 MarchPassenger FaresParcels, Luggage, and MailsGoods and LivestockLabour, Demurrage, etc.Total
19463,912,509426,6198,515,673249,78613,104,587
19473,253,748440,7318,903,762225,54312,823,784
19482,687,767553,36610,486,744236,40313,964,280
19492,759,478560,59311,747,129271,68215,338,882
19502,847,925480,86912,434,487298,78516,062,066
19512,662,987532,55614,978,599326,20218,500,344
19522,264,922519,46816,957,810355,04220,097,242
19532,522,883545,84119,136,216383,81822,588,758
19542,565,253600,49720,121,367395,24823,682,365
19552,688,609624,81923,234,706461,32527,009,459
19562,669,421624,38924,074,527503,07327,871,410

The revenue from passenger fares during the year 1955–56 represented an expenditure on railway travel of £1 4s. 10d. per head of mean population. The total railway operating revenue was equal to £12 19s. 3d. per head.

On 21 June 1953 suburban fares were increased by 10 per cent, while increases varying from 5 per cent to 20 per cent were made in some goods rates, further increases in the latter class, mostly from 5 to 7 per cent, taking effect from 17 January 1954. On 11 November 1956 fares were increased by 10 per cent and goods rates by an average of 8 per cent.

Expenditure.—The total railway expenditure in 1955–56 represented 95.56 per cent of the gross earnings, and the operating expenses 96.07 per cent of operating revenue. It is of interest to trace the movement over a series of years, as in the following statement. The figures show the percentage of operating expenditure to operating revenue.

Year Ended 31 MarchPer Cent
193586.98
193688.46
193791.81
193896.05
193995.73
194090.66
194186.72
194285.73
194380.71
194484.41
194593.96
194695.77
1947106.40
1948108.06
1949109.44
1950108.09
1951101.22
1952107.06
1953100.74
195499.74
195594.57
195696.07

The operating expenditure under various heads is now given for 1955–56 and for each of the previous ten years.

£

Year Ended 31 MarchMaintenance of Ways and WorksMaintenance of SignalsMaintenance of Rolling StockLocomotive TransportationTraffic TransportationHead Office and General Charges*Total

* Including superannuation subsidy.

† Merged with Maintenance of Ways and Works.

19462,524,485375,4993,055,3032,627,8683,618,584347,98512,549,724
19472,466,020376,4583,241,1392,996,0164,138,817426,32913,644,779
19482,528,407426,8413,298,7003,786,7564,550,376499,01115,090,091
19492,904,028482,4923,885,4934,032,8644,956,482526,89716,788,256
19502,966,062540,0743,889,1524,064,9015,355,345545,37917,360,913
19513,171,856566,6874,217,9514,605,6955,615,272547,95518,725,416
19524,671,8694,582,8015,322,2316,341,828596,57121,515,300
19534,800,452 4,795,9605,914,4946,640,290604,20122,755,397
19545,593,236 5,142,9145,495,6626,761,097628,49423,621,403
19556,639,577 5,512,7495,411,6257,356,221622,04225,542,214
19566,960,522 5,605,0175,572,4578,000,877636,07626,774,949

The increase in expenditure in recent years has been due chiefly to the greater mileage run, an increased wages bill, mainly the result of higher rates of pay and improved conditions of employment, and to a general rise in the price of stores. In an endeavour to overcome an unsatisfactory coal position, the Department was obliged to import coal from overseas during the years 1947 to 1952, and convert seventy-seven locomotives to burn oil fuel.

PASSENGERS AND GOODS.—During the period 1926–33 there was a rapid falling off in passenger journeys, due mainly in the earlier years to intensive motor competition and later to the economic depression. This period was followed by an upward trend as a result of the improvement in economic conditions. After the outbreak of war in 1939 passenger traffic increased sharply, owing to the movement of members of the Armed Forces and to the curtailment of road services and partial immobilization of private motor cars, the result of restrictions placed on the use of motor spirits and rubber tires. Following the cessation of hostilities the number of passenger journeys receded considerably, owing to the large decline in Armed Forces traffic, intensified road and air competition, and, until recently, to the difficulty in obtaining sufficient coal to run full passenger services.

In 1951–52 ordinary passenger services were curtailed through a shortage of coal arising from industrial disputes. In 1952–53, although coal was more plentiful and several imported oil-burning and diesel-electric locomotives were placed in service, it was not possible to fully restore passenger services, a shortage of train crews being the limiting factor. In 1953–54, however, more passenger trains were provided. The electric multiple unit service from Wellington, inaugurated to Taita in October 1953 and extended to Upper Hutt in July 1955, has transferred to rail travel numerous suburban passengers previously carried by the Department's road services. Compared with the previous year, rail journeys in 1955–56 increased by 339,753 or 1.37 per cent.

To enable staff to cope more satisfactorily with the increase in traffic on the Wellington - Hutt Valley section, the fare structure for the whole of the Wellington area was redesigned and placed on a “zone” basis, considerably reducing the variety of tickets issued by guards and at stations. This system has now been extended to the other three main suburban areas—Auckland, Christchurch, and Dunedin.

The impact of the modern electrified rail service in the Hutt Valley is reflected in the reduced passenger journeys on the Railways Road Services. In 1955–56 these totalled 19,271,146 for the whole of the country, a decline of 674,644 or 3.38 per cent compared with the previous year.

The tonnage of goods carried increased steadily up to 1929–30, but from then until 1932–33 successive declines were recorded, due mainly to the world economic depression and to road competition. From 1934 to 1950 goods tonnage recorded an upward trend, with a slight reduction in 1944–45 through a falling-off in military freights.

In 1950–51 traffic declined as a result of widespread industrial disputes, but the upward tendency was then resumed with the tonnage exceeding the ten-million mark in 1952–53, in 1954–55, and in 1955–56. There was a slight recession in 1953–54.

Freight-mileage in 1955–56 increased by 39,665,734 or 3.58 per cent, compared with 1954–55. The average distance for which goods were hauled was 108 miles. The 1955–56 goods revenue of £24,074,527 represented 864 per cent of operating revenue.

Year Ended 31 MarchLength Open MilesTrain-mileage (Revenue)PassengersSeason Tickets IssuedTonnage of Goods and Livestock*
Including Season-ticket HoldersExcluding Season-ticket Holders

* Livestock converted to equivalent tonnage.

19463,52813,454,50832,417,67513,553,0831,369,5729,210,466
19473,52813,169,23328,869,13510,222,3251,358,4539,329,333
19483,52613,712,10325,887,1898,111,4171,347,6719,524,043
19493,52613,895,48826,167,8457,708,0491,387,9619,666,130
19503,52614,420,85225,895,2537,881,2551,402,7899,948,261
19513,53114,153,21124,824,0757,574,2751,338,4359,615,857
19523,53912,371,04321,292,5565,641,9701,195,6399,828,771
19533,53513,409,38021,455,1935,779,3891,209,00410,025,939
19543,50413,718,89623,271,8926,840,6171,336,0869,635,061
19553,48914,419,92024,735,4897,803,8131,519,01810,336,331
19563,42214,883,72425,075,2427,975,1961,504,22010,677,923

Passenger train-miles run during 1955–56 totalled 5,284,832, and the passenger revenue received represents 125.85d. per passenger train-mile, and £990 per mile of line operated by passenger services.

The number of ordinary passenger journeys in 1955–56 increased by 220 per cent compared with the previous year. The tonnage of goods handled increased by 341,592 tons, or 3.30 per cent.

The numbers of livestock carried for the last two years were as follows.

1954–551955–56Variation
  Per Cent
Cattle and horses792,936820,374+27,4383.46
Calves801,051815,804+ 14,7531.84
Sheep7,986,3087,616,607–369,7014.63
Pigs472,888449,520–23,3684.94
    Totals10,053,1839,702,305–350,8783.49
Equivalent tonnage647,454641,390–6,0640.94
Revenue£1,756,116£1,798,031+£41,9152.39

Detailed figures showing the number of rail passengers carried during the last five years are given in the following table.

1951–521952–531953–541954–551955–56

* Workers' weekly abolished and 12-trip tickets reduced to 10-trip from 17 January 1954.

Standard fare3,055,7902,944,3172,827,0352,653,4182,382,567
Suburban1,843,4952,052,6763,045,0154,133,6664,638,794
Other fares742,685782,396968,5671,016,729953,835
      Totals5,641,9705,779,3896,840,6177,803,8137,975,196
Season tickets only—
  Suburban weekly—
    Twelve-trip432,791423,937482,296*567,641557,390
    Ten-trip14,06514,502
Workers' weekly50,40850,51543,974*  
Weekly twelve-trip27,51932,11531,944*32,47631,785
Bearer twelve-trip47,51652,17059,98070,20481,626
Bearer six-trip565,464578,174659,889790,100773,588
School16,92216,74016,65817,23216,751
Tourist1311142636
Travellers' annual8676796548
Other40,85540,76441,25241,27442,996
      Totals1,195,6391,209,0041,336,0861,519,0181,504,220

The following table gives interesting information as to the constitution of the goods and livestock traffic and earnings for the year 1955–56.

CommodityTonnageRevenue
Tons CarriedPer Cent of TotalTons One Mile (000 Omitted)Average HaulTotalPer Cent of TotalPer TonPer Ton Mile
 No. No.Miles£ s.d.d.
Products of Agriculture
Grain and seeds262,9272.4618,37070367,4741.532804.80
Meals93,8990.888,09586149,3080.6231104.43
Fruit and vegetables58,1150.5513,111226216,5900.907463.96
Root crops and fodder126,3781.1817,023135259,4351.084103.66
      Totals541,3195.0756,599105992,8074.133684.21
Animal and Other Products
Cattle, calves, horses314,2512.9430,97599750,9973.1247105.82
Sheep and pigs327,1393.0634,4641051,047,0344.366407.29
Meat, fresh and frozen402,0263.7719,86049877,7863.6543810.61
Butter161,6641.5116,05799407,2311.695046.09
Cheese72,5430.684,31159137,0170.573797.63
Wool214,9412.0118,63087615,7892.565737.93
Dairy by-products69,1720.656,979101177,5690.745146.11
Fat, hides and skins65,9230.625,59685185,3140.775637.95
Fish6,9800.071,37019630,7420.138815.33
      Totals1,634,63915.31138,242854,229,47917.595197.34
Products of Mines
Agricultural lime476,0104.4643,50291543,9632.2722103.00
Coal, New Zealand hard642,2136.0140,14863656,8462.732053.93
Coal, New Zealand brown1,178,05311.03174,8381482,163,2768.993692.97
Road metal78,4900.746,62584125,8060.523204.56
      Totals2,374,76622.24265,1131123,489,89114.512953.16
Products of forests
Timber, imported29,0760.272,8699971,5480.304925.98
Timber, New Zealand734,4966.88123,5141681,941,6948.0752113.77
Firewood, posts, etc.53,3060.506,18611686,0790.363233.34
Logs, ex Murupara129,5061.214,0673144,2620.186102.61
      Totals946,3848.86136,6361442,143.5838.914543.77
Manufactures, etc.
Benzine, gasoline, kerosene418,5323.9244,2941061,248,5685.195986.77
Cement271,7582.5537,592138672,9542.804974.30
Manures, phosphate, etc.1,211,29711.34125,8741042,071,8798.613433.95
      Totals1,901,58717.81207,7601093,993,40116.604204.61
Miscellaneous3,261,33030.54343,9801059,136,12937.985606.37
      Totals10,660,02599.831,148,33010823,985,29099.724505.01
Road traffic door-to-door17,8980.17  67,4090.28754 
      Grand totals10,677,923100.001,148,33010824,052,699100.004515.03

The next table shows the tonnage of goods carried, freight train-miles run, and net ton-mile run, together with the respective averages for each of the last eleven years.

Year Ended 31 MarchTonnage CarriedFreight Train-milesTons One-mileGross Revenue
Per TonPer Freight Train-milePer Ton-mile
 (000)£s.d.£s.d.d.
19469,210,4668,646,417842,542018101012.47
19479,329,3338,516,995883,66401951132.46
19489,524,0439,002,450937,4221241382.73
19499,666,1309,157,049970,7561481602.94
19509,948,2619,326,9931,021,1381511692.93
19519,615,8579,153,1371,026,9351115112113.51
19529,828,7718,514,4531,069,2431148119103.82
195310,025,9399,194,3281,062,66711842174.34
19549,635,0619,129,7011,033,6572192404.65
195510,336,3319,373,0551,108,66424112965.01
195610,677,9239,635,9491,148,33025121005.03

A classification of goods traffic for the eleven years ended 1955–56 is now given.

Tons (000)

Year Ended 31 MarchAgricultural and Pastoral ProduceAgricultural Lime and ManuresTimber and FirewoodCoalMotor Spirits and KeroseneOther
Agricultural ProduceDairy ProduceMeat, Fish, and LivestockWool
19467952501,2552501,4576922,0972212,193
19477332491,2122331,6477012,0622612,231
19487592601,2022221,5347932,0882982,368
19497362771,1572201,5358602,0843052,492
19506892941,1312261,6378822,1313302,628
19516522971,0472191,6549221,8693582,598
19525983199592321,5568351,9523703,007
19535643161,0862001,5249001,9533753,108
19545723119752041,4318311,8383733,100
19555623141,0212121,6918461,8553903,446
19565413031,0502141,6879461,8204193,698

RAILWAY EMPLOYEES.—The average number of persons employed by the State railways throughout the year ended 31 March 1956 was 24,641. The staff is divided into two divisions—namely, the salaried or clerical division, and the general or out-of-door division—and is further classed in five branches, as shown in the following table.

Year Ended 31 MarchTrafficWays and WorksLocomotive RunningWorkshopsOther BranchesTotal
19527,9235,3293,5195,4073,03125,209
19537,7855,5913,5345,2893,05725,256
19547,5876,0213,5225,1742,98225,286
19557,5455,9273,4344,9632,81724,686
19567,7035,9413,4164,7872,79424,641

A system of classification, first introduced in 1896 and revised at various times since, applies to railway employees. An Appeal Board is constituted to hear grievances of members dissatisfied with decisions in regard to promotion, loss of status, or breaches of discipline. The Board consists of a Magistrate and two members of the Railways service, one appointed by the Minister of Railways and the other elected by the members of the Department. The Government Railways Amendment Act 1944 provided for the establishment of a Tribunal of three members whose principal functions are to prescribe scales of salaries and rates of wages for railway employees; conditions in regard to hours of work, overtime, etc.; and terms and conditions in regard to leave of absence, railway travel concessions, etc. This tribunal, known as the Government Railways Industrial Tribunal, is deemed to be a Commission of Inquiry under the Commissions of Inquiry Act 1908. The members, who must not be members of the Railways Department or of any of the railway employees' organizations, are appointed for a term of three years.

A superannuation fund in connection with the Railways service was established in 1903, but was merged with other State superannuation funds as from 1 April 1948, all moneys standing to the credit of the fund being transferred to the newly created Government Superannuation Fund as from that date. Information concerning this is given in Section 7c. A sick-benefit fund, providing for the payment of weekly allowances for periods up to fifty-two weeks to employees other than salaried staff who are incapacitated by sickness, was instituted in 1929. The fund is subsidized by the Department up to a maximum of £28,000 per annum. The amount claimed in 1955–56 was £9,000. The Sick Benefit Society had a membership of 14,220 at 31 March 1956.

RAILWAY ACCIDENTS.—The most tragic train disaster in New Zealand railway history occurred on 24 December 1953 near Tangiwai, on the North Island Main Trunk Line. The train involved was the Wellington-Auckland 3 p.m. Express, consisting of 9 carriages, guard's van and postal van, hauled by a class KA locomotive. The cause of the accident, which happened at nighttime, was the destruction of a bridge over the Whangaehu River by a violent flood of ice water, silt, and debris which originated on Mount Ruapehu. The locomotive and six of the carriages fell into the swollen river. It was established that 154 persons, including the driver and fireman, perished.

Of earlier accidents which may be termed disasters, the first occurred near Ongarue in 1923 when seventeen persons were killed and twenty-six injured as a result of an express train colliding with a fallen boulder on the line; the second was a major derailment of a passenger train near Hyde, in the South Island, on 4 June 1943, which caused the deaths of twenty-one passengers and injuries to forty-six others.

Another serious accident occurred on 25 February 1948 when the Picton–Christchurch passenger express train was derailed two miles south of Seddon Station, through entering a curve at a speed far in excess of that authorized. Six passengers were killed and sixty-one injured. The driver and fireman were also injured.

During the year ended 31 March 1956, 37 persons were killed and 462 were injured in all kinds of accidents arising from train working and movements of rolling stock. Comparative figures for the previous year were 27 killed and 531 injured. These figures do not include employees who were killed or injured whilst engaged on other duties—e.g., railway workshops.

Of the 37 persons meeting with fatal accidents in 1955–56, 6 were passengers and 5 were employees; of the remainder who were neither passengers nor employees, 1 was killed in accidents on the line, 20 at level crossings, and 5 from other causes. Of those injured 45 were passengers, 302 were employees (chiefly in minor accidents), and 115 were neither passengers nor employees. Of the 115 other persons, 86 were injured in crossing accidents.

PRIVATE RAILWAYS.—There are a number of private railways in New Zealand, chiefly lines of light construction serving colliery and sawmilling areas. On the timber tramways, special rolling stock is used for log haulage with various types of locomotives, many of interesting design, according to the nature of the work required of them. The longest of the private lines connecting collieries to the State system is the 11 miles 67 chains of railway between Birchwood and Wairio, operated by the Ohai Railway Board.

Chapter 13. SECTION 13—URBAN TRANSPORT OPERATED BY LOCAL AUTHORITIES

Table of Contents

INTRODUCTORY.—Commencing with the 1928 issue of the Official Year-Book a Section entitled Tramways gave particulars of the electric tramway services operating in New Zealand. In the 1951–52 issue the title of the relevant Section was changed to Electric Tramways and Associated Transport, greater prominence being given to the statistics of the motor-bus and trolley-bus services operated by the Tramway Authorities in conjunction with the trams.

The position now is that motor-bus and trolley-bus services have increased and electric tramways are relatively a small sector of the urban passenger services. Only two electric tramway systems serving city areas continue to run, these being in Wellington and Auckland. In Dunedin there is still the cable tram service to Mornington.

The data provided in this Section now cover the whole of the urban passenger transport services that are operated by local authorities. These consist of (1) combined tram, trolley-bus, and motor-bus services in Auckland, Wellington, and Dunedin; (2) combined trolley-bus and motor-bus services in New Plymouth and Christchurch; and (3) motor-bus services only in Gisborne, Palmerston North, Upper Hutt, Eastbourne, Timaru, and Invercargill. In Wellington and Dunedin cable tramways are still in use, but separate data is no longer prepared in respect of these. They are now treated as part of the electric tramway system of the city.

No account is taken in this Section of the various motor-bus services operated by the New Zealand Government Railways or by any private enterprise.

In the 1956 issue of the Official Year-Book is given a brief history of New Zealand's electric tramway systems.

The following table illustrates the duration of each of these services.

ServiceHorse-drawn System ElectrifiedElectric System InstalledRemarks
Auckland1902 Still operating in 1956.
Dunedin1903 Main system ceased March 1956. Cable tram to Mornington still operating.
Wellington1904 Still operating in 1956.
Christchurch1905 Ceased July 1954.
Wanganui 1908Ceased September 1950.
Invercargill 1912Ceased September 1952.
Napier 1913Ceased February 1931.
Gisborne 1913Ceased July 1929.
New Plymouth 1916Ceased July 1954.

SYSTEMS COMPRISED OF MOTOR-BUS SERVICES ONLY.—In the following tables information is given on the operations of those municipal services which consist entirely of motor buses.

ServiceYear Ended 31 March
195419551956
Number of Passengers Carried
Gisborne843,155871,759852,618
Palmerston North1,468,2811,536,2851,509,890
Upper Hutt175,756154,285169,447
Eastbourne1,363,1761,366,4131,318,389
Timaru1,315,7091,274,6331,276,328
Invercargill2,740,7933,335,5353,040,700
Average Number of Passengers Per Mile Run
Gisborne5.255.335.09
Palmerston North5.305.555.16
Upper Hutt3.062.673.19
Eastbourne1.971.982.00
Timaru5.985.725.85
Invercargill5.006.186.46
Revenue
 £££
Gisborne20,75122,07622,534
Palmerston North27,96629,65531,358
Upper Hutt6,1115,6005,079
Eastbourne70,31771,33589,208
Timaru28,63732,03431,598
Invercargill38,93146,59246,777

Passengers Carried.—The total number of passengers carried on these services increased from 7,906,870 in 1953–54 to 8,538,910 in 1954–55, but fell to 8,167,372 in 1955–56.

Employees.—The number of employees engaged on these services during the past three years is now given.

ServiceYear Ended 31 March
195419551956

* Includes six part-time employees.

Gisborne171716
Palmerston North292929
Upper Hutt344
Eastbourne373534
Timaru272727
Invercargill4947*48*

The following table sets out the numbers of vehicles in use, their seating capacity, and miles run during the last three years.

ServiceYear Ended 31 March
195419551956
Number of Buses in Use
Gisborne999
Palmerston North151515
Upper Hutt333
Eastbourne232223
Timaru161615
Invercargill242423
Seating Capacity
Gisborne265254271
Palmerston North492524524
Upper Hutt959595
Eastbourne781752797
Timaru588588544
Invercargill861861831
Miles Run During Year
Gisborne160,715163,640167,559
Palmerston North277,127276,801292,580
Upper Hutt57,44557,86353,123
Eastbourne691,142690,609626,270
Timaru219,887222,682218,146
Invercargill548,109539,777470,826

SYSTEMS COMPRISED OF COMBINED TROLLEY-BUS AND MOTOR-BUS SERVICES.—Systems of this type now operate in Christchurch and New Plymouth. In both of these cities electric tramways operated until July 1954. The figures in the following tables show the results of the first full financial year's operations of this type of service.

Route Mileage.—Length of route in use at 31 March 1956 is given below.

ServiceTrolley-bus RoutesMotor-bus Routes
 M.ch.M.ch.
New Plymouth3291939
Christchurch93611438

Passenger Vehicles in Use.—The following table sets out details of the vehicles in use by these authorities during the year ended 31 March 1956.

ServiceTrolley BusesMotor Buses
Number of Vehicles
New Plymouth419
Christchurch11152
Seating Capacity
New Plymouth168697
Christchurch4245,779
Miles Run During Year
New Plymouth87,959417,988
Christchurch176,2574,087,857

Capital Outlay.—At 31 March 1956 the capital value of the two systems was £1,250,095, made up of the following assets.

£

ServiceLand and BuildingsOverhead Equipment, Etc.VehiclesOther AssetsTotal
New Plymouth15,10913,79087,13417,008133,041
Christchurch166,49632,247801,537116,7741,117,054

Passengers Carried.—During the year ended 31 March 1956 these services carried 24,666,493 passengers, as follows:

New Plymouth3,316,207
Christchurch21,350,286
      Total24,666,493

Revenue and Expenditure.—The following table shows the financial position of these services for the year ended 31 March 1956.

REVENUE

£

ServicePassenger FaresOtherTotal
New Plymouth56,1262,08758,213
Christchurch515,78726,509542,296

EXPENDITURE

£

ServiceOperating ExpensesCapital ChargesOtherTotal
New Plymouth60,861 5,64366,504
Christchurch463,948132,30680,796677,050

Employees and Wages.—Included in the expenditure for the year 1955–56 was an amount of £397,853 paid as salaries and wages. The following table shows the allocation of this sum as between the two systems and the number of persons employed.

ServiceAverage Number of Persons EngagedTotal Wages Paid
 No.£
New Plymouth5040,235
Christchurch476357,618

Summary of Operations.—Averages derived from the information given in 1955–56 are as follows.

ServicePassengers Per Mile RunAverage Fare Per PassengerRevenue Per Mile RunExpenditure Per Mile Run
 No.d.d.d.
New Plymouth6.554.0627.6131.55
Christchurch5.015.8030.5238.12

SYSTEMS COMPRISED OF COMBINED ELECTRIC TRAMWAYS, TROLLEY-BUS, AND MOTOR-BUS SERVICES.—The year 1955–56 saw a further reduction in this type of system through the cessation during the year of the main electric tramway service in Dunedin, where the one mile of cable tramway to Mornington is the only remaining tramway service. Electric tramways reached the peak of mileage of track in use in 1929, when 170 miles of line was operated. A steady decline in the mileage of track in use took place until 1950, when 158 miles of line were used. From that year onwards the change has been more rapid. The mileage of tram track in use at the end of each of the last seven years was as follows:

Year EndedMiles of Tram Track in Use
31 March 1950158
1951133
1952129
1953105
195475
195556
195639

At the same time there has been a steady expansion in the mileage of the trolley-bus routes and a more rapid growth of motor-bus routes. The following table shows the length of roadway traversed by each type of service at 31 March 1956.

ServiceTram RoutesTrolley-bus RoutesMotor-bus Routes
 M.ch.M.ch.M.ch.
Auckland1519396210360
Wellington23713645248
Dunedin101353380

Passenger Vehicles in Use.—The following table sets out details of vehicles in use by the various authorities during the year ended 31 March 1956.

ServiceTramcars and TrailersTrolley BusesMotor Buses
Number of Vehicles
Auckland7279239
Wellington1554862
Dunedin126348
      Totals239190349
Seating Capacity
Auckland3,7443,4099,649
Wellington5,4142,0162,179
Dunedin2742,5201,579
      Totals9,4327,94513,407
Miles Run During Year
Auckland1,798,1952,162,7144,991,949
Wellington2,612,416730,718895,407
Dunedin381,2261,138,599967,300
      Totals4,791,8374,032,0316,854,656

Capital Outlay.—At 31 March 1956 the capital value of the three systems was £6,980,891. This total value was made up of the assets shown below.

£

ServiceLand and BuildingsTracks and Overhead EquipmentVehiclesOther AssetsTotal
Auckland521,111497,3632,221,126378,6723,618,272
Wellington389,663647,9411,014,183155,3122,207,099
Dunedin126,859213,659715,39799,6051,155,520
      Totals1,037,6331,358,9633,950,706633,5896,980,891

The replacement of tramcars by trolley buses, which has been proceeding for several years, is reflected in the next table, which gives details of capital outlay on the various types of vehicles.

£

Class of VehicleValue at 31 March 1955Net Expenditure During YearValue at 31 March 1956
Tramcars and trailers934,990Cr. 87,102847,888
Trolley buses1,132,605177,6411,310,246
Motor buses1,751,92540,6471,792,572

Passengers Carried.—During the years 1953–54, 1954–55, and 1955–56 passengers carried totalled 177,174,041, 176,513,318, and 136,677,221 respectively. The number carried on each service during the year ended 31 March 1956 is given below.

ServiceTotal Passengers Carried
Auckland65,660,057
Wellington41,668,806
Dunedin29,348,358

Electric Power Used.—Quantities of electric power used by the individual services during the year 1955–56 were as follows.

ServiceThousand kWh.
Auckland13,942
Wellington9,331
Dunedin3,348

This total consumption of 26,621,000 kWh. showed a decrease from the 31,510,000 kWh. used in 1954–55 and the 34,294,000 kWh. used in 1953–54, illustrating in another manner the decline of electric tramways as a factor in urban transport.

Revenue.—The table which follows shows the revenue of each of the authorities for the 1955–56 year.

£

ServicePassenger FaresOther RevenuesTotal
Auckland1,516,191173,0921,689,283
Wellington782,98731,195814,182
Dunedin356,44613,529369,975
    Totals, 1955–562,655,624217,8162,873,440
    Totals, 1954–552,849,07864,5792,913,657

Expenditure.—Details of expenditure by each of the authorities during the 1955–56 year are now given.

£

ServiceOperating ExpenditureCapital ChargesOther ExpenditureTotal
Auckland1,508,797250,154 1,758,951
Wellington850,24996,2694,588951,106
Dunedin394,637148,986 543,623
    Totals, 1955–562,753,683495,4094,5883,253,680
    Totals, 1954–552,811,073432,1781,0353,244,286

Employees and Wages.—Included in the expenditure for the year 1955–56 was an amount of £1,991,292 paid as salaries and wages. The following table shows the allocation of this sum as between the various systems and the numbers of persons employed.

ServiceAverage Number of Persons EngagedTotal Wages Paid
 No.£
Auckland1,3441,077,277
Wellington788652,201
Dunedin327261,814
      Totals2,4591,991,292

Summary of Operations.—Averages derived from the information given in 1955–56 concerning passengers carried, fares paid, revenue, and expenditure, are supplied in the table which follows, together with similar details of the operations of the two previous years.

Item1953–541954–551955–56
Passengers per mile runNo.8.408.238.72
Average fare per passengerPence4.364.674.66
Revenue per mile runPence38.4839.5143.99
Expenditure per mile runPence44.1744.7649.81

Chapter 14. SECTION 14—ROADS AND ROAD TRANSPORT

Table of Contents

ROADS AND BRIDGES.—The total mileage of formed roads in New Zealand at 31 March 1955 was 56,118, in addition to which there were 4,943 miles of bridle-tracks and 16,090 miles of unformed legal roads. Details are given in the following table.

Miles

CountiesBoroughsTown DistrictsRoad DistrictsTotal

* Includes 5 miles of wood or stone.

† Includes 450 miles of pumice roads.

Formed roads and streets—
  Paved or surfaced with—
    Bituminous or cement concrete1932625 460
    Bitumen or tar7,0192,831*7049,924
    Metal or gravel37,3791,2971716138,908
  Not paved or surfaced6,57419534236,826
      Totals, formed roads51,1654,5852808856,118
Bridle-tracks4,86099654,943
Unformed legal roads15,72133433216,090
      Totals, all roads71,7464,92832215577,151

The formation of roads in many parts has been attended with considerable expense and difficulties, arising from the configuration of the country and the abundance of rivers. As illustrating the latter aspect, the following table, showing the number and lengths of bridges incorporated in the roads system as at 31 March 1955, is of interest. Only bridges 25 ft. or over in length have been taken into account, no official enumeration having been made of the innumerable culverts and short bridges. A perusal of the figures shown in this and in the preceding table gives an average of 13.6 ft. of bridging per mile of formed road.

Material of Which Bridge ConstructedCountiesBoroughsTown DistrictsRoad DistrictsTotals
No.Total LengthNo.Total LengthNo.Total LengthNo.Total LengthNo.Total Length
  Ft. Ft. Ft. Ft. Ft.
All concrete or stone1,752181,04311010,6345273  1,867191,950
Steel and concrete32335,9737111,2511135  39547,359
Steel, concrete, and timber63360,763243,802130 65864,595 
Steel and timber96084,811303,83712514099288,713
Australian hardwood2,344225,581928,8453210  2,439234,636
Native timbers2,266131,917373,688728851432,315136,036
      Totals8,278720,08836442,0571896161838,666763,289

ROADS ADMINISTRATION.—The main statutes covering roads administration in New Zealand are the Public Works Act 1928, the Counties Act 1920, and amendments, and the National Roads Act 1953 with its 1954, 1955, and 1956 amendments.

By the National Roads Act a National Roads Board was established from 1 April 1954, and its functions are defined as follows:

  1. To administer the National Roads Fund in accordance with the provisions of the Act;

  2. To provide an advisory service in respect of the whole roading system of counties, boroughs, and town districts throughout New Zealand, and to report to the Government from time to time on the progress being made in providing a roading system adequate for needs arising from current developments in motor traffic;

  3. To advise the Government of any changes necessary in the legislation and regulations relating to the use of roads;

  4. To act as the final authority in disputes relating to road classifications;

  5. To advise the Government of changes necessary in the provision of finance for road construction and maintenance, particularly of changes considered advisable in the levying and collection of motor taxation, including exemptions therefrom;

  6. To assist and advise local authorities generally on roading matters and any special roading problems arising from development of industries, etc.;

  7. To undertake at not more than five or less than three year intervals a comprehensive survey into the roading position in New Zealand, including standards, growth of traffic, adequacy, etc.;

  8. To give effect to any special matter of roading policy communicated to it by the Government;

  9. To initiate and conduct research into roading problems in New Zealand;

  10. To collect information on roading developments in other countries and make this available to roading authorities in New Zealand;

  11. To undertake any other activity for the provision of a roading system adequate both for the needs of an efficient road transport system and for the benefit generally of motor-vehicle operators and the safety of the public in relation to motor traffic.

District Roads Councils are also established to function in their districts in relation to roading requirements and standards of the various local authorities. The National Roads Board, through the District Councils and otherwise, has functions in relation to the maintenance of roads other than main highways in the districts of local authorises.

The 1953 Act provided that there would be automatic allocation of moneys to a National Roads Fund to be expended for roading purposes, out the 1955 amendment provided that the portion contributed from the Consolidated Fund would be appropriated annually by Parliament. Portion of the funds are allocated to boroughs and independent town districts for roading purposes calculated on a population basis, and to counties and road districts based on general rates (other than those levied for hospital purposes or for other local authorities) and special rates for roading purposes collected by them.

The composition of the National Roads Board is: (a) one member, to be appointed Chairman of the Board (prior to the 1955 amending Act the Chairman was an officer of the Ministry of Works); (b) an engineer officer of the Ministry of Works (Deputy Chairman); (c) an administration officer from the Ministry of Works; (d) an officer of the Transport Department; (e) two nominees of the New Zealand Counties Association (Incorporated); (f) a nominee of the Municipal Association of New Zealand (Incorporated); (g) a representative of commercial road users; and (h) a representative of private motorists.

Roads Council Districts.—New Zealand is divided into twenty roads districts, composed of local authorities grouped according to geographic situation and community interest.

For each roads district there is an advisory body, known as the District Roads Council, which is constituted to include the District Commissioner of Works, one representative of each constituent county and road district, one person to represent boroughs and independent town districts for each two members representing counties or road districts, a representative of commercial road users, a representative of private motorists, and a nominee of the Commissioner of Transport.

The principal functions of these councils include the making of recommendations to the Board each year as to which roads within the several districts should be declared main highways and the works which should be undertaken, together with estimates of the cost of works, their opinion of the roading needs of their districts as a whole, and their recommendations on other matters of interest to road users or affecting road safety.

Finance.—The National Roads Act 1953 provided for a National Roads Fund to be established within the Public Account, the revenue of the Fund to be derived mainly from motor taxation together with an annual contribution from the Government. Expenditure from the Fund is for the purpose of developing State and main highways to modern standards and of subsidizing the roading programmes of local authorities.

On the revenue side of the Fund's operations the Ac reintroduced the principle of reserving motor taxation for roading purposes.

Details of the classes of revenue automatically paid into the Fund from 1 April 1954 are as follows:

  1. Fees and charges from registration and licensing of motor vehicles (section 34, Transport Act 1949), refer page 408 for present rates;

  2. Heavy traffic licence fees (section 59, Transport Act 1949), less cost of collection not exceeding 5 per cent of the amount;

  3. Motor spirits tax and mileage tax (Part IV of Transport Act 1949);

  4. Tire tax (Customs Duties Tariff item 205 (b), Customs Acts Amendment Act 1934);

  5. Receipts from any source in respect of the construction, maintenance, or control of any highway;

  6. Receipts from transfers, sales, or hire of materials or plant or property of any kind or from executing works for other organizations;

  7. Any other moneys credited to the Fund.

In addition, the former automatic payment of £1,000,000 annually from the Consolidated Fund was made subject to annual appropriation by the 1955 amendment to the principal Act.

The tax on motor spirits, from November 1953, is 1s. 3d. per gallon, all of which is paid into the National Roads Fund.

Expenditure from the Fund may be made without appropriation as follows:

  1. Payment of annual subsidies to local authorities for roading purposes (not exceeding 10 per cent of the Fund's revenue to borough councils and independent town boards, or 12 per cent to county councils and road boards; nor less than receipts during 1953–54 by way of heavy-traffic fees and annual subsidy, under the Municipal Corporations Act 1933, to boroughs or, under the Appropriation Act 1916, to counties, road districts, or town districts);

  2. Payments by the Crown in respect of the construction, maintenance, and control of main highways;

  3. Compensation payable by the Crown for acquisition of land for a main highway;

  4. Compensation and damages payable by the Crown for accidents and injuries in relation to works the cost of which is chargeable to the Fund;

  5. Cost of purchase or hire of machinery or equipment;

  6. Cost of survey and other preparatory work for main highways;

  7. Cost of experimental work;

  8. Cost of administration by the Ministry of Works: and

  9. Other expenses by the National Roads Board in exercise of its functions.

Following is a statement of receipts and expenditure in the National Roads Fund for the year ending 31 March 1956:

 Amount£
Receipts—
  Petrol tax (net)13,014,483
  Mileage tax206,774
  Tire tax27,533
  Fees and charges—
    Registration and licence fees2,076,877
    Heavy traffic fees2,173,398
Contribution from Consolidated Fund1,000,000
Miscellaneous receipts—
  Repayments of plant purchases37,076
  Repayments of advances to local authorities13,345
  Rents10,994
  Fees79
  Sales of land and buildings12,684
  Interest on plant purchases3,270
  Interest on advances to local authorities1,877
  General1,225
Interest on investments41,750
      Total receipts£18,621,365
  Expenditure—
  Highways maintenance4,178,864
  Highways construction9,520,063
  Payments to local authorities—
    Subsidies on rates or population3,297,273
    Bridge renewal, flood damage, special and other grants698,248
      Total payments to local authorities3,995,521
Maintenance of Government and county roads119,839
Administration and general expenses—
  Ministry of Works administration875,805
  Abolition of toll gales595
  Hutt Road charges1,212
  Purchases of plant (local authority)105,495
  Advances to local authorities39,000
  Fees and travelling expenses4,282
  Miscellaneous expenses112,804
  Revenue collection expenses243,191
      Total administration and general expenses1,382,384
  Unauthorized expenditure2,000
      Total expenditure£19,198,671
Balance in Fund at end of year£2,874,553

In the following table are shown the amounts which have been expended on highways construction, renewal, or maintenance during the last five years. Maintenance figures include the cost of flood damage restoration when applicable.

£

Class of Expenditure1951–521952–531953–541954–551955–56
Construction and improvement2,683,4943,082,3103,222,0144,945,1207,986,168
Renewal of bridges594,857838,145915,4671,273,0311,533,895
Maintenance, repairs, etc.3,796,2373,689,9654,003,8463,812,6884,178,864
      Totals7,074,5887,610,4208,141,32710,030,83913,698,927

An analysis of the actual expenditure on maintenance in each Island, as compared with the number of motor vehicles in each Island at 31 March of each of the last five years, appears in the following table, the percentages relating to New Zealand totals.

1951–521952–531953–541954–551955–56
Percentage of New Zealand Totals
North Island—
  Maintenance expenditure67.9367.1371.3366.5865.68
  Motor vehicles66.9166.9266.8166.9667.06
South Island—
  Maintenance expenditure32.0732.8728.6733.4234.32
  Motor vehicles33.0933.0833.1933.0432.94

The following table shows the mileage of State and Main highways in the North and South Islands at 31 March 1955, together with a classification as to the type of construction or surface.

Miles

Length of Highways
Dustless SurfaceGravel Macadam SurfaceTotal
North Island3,6633,4787,141
South Island2,4903,1365,626
      Totals6,1536,61412,767

Assistance to Local Authorities.—On State highways the Board meets the whole cost of maintenance, construction, and reconstruction. In terms of the National Roads Act 1953 the National Roads Board is required to provide a £3 for £1 subsidy of the cost of maintenance, construction, or reconstruction of main highways. A similar subsidy is payable in respect of bridges where the cost is not greater than £60,000. In es where the cost is greater than £60,000 the excess may be met in full by the Board.

The payment of annual subsidies to local authorities from the National Roads Fund for roading purposes is made at the following rates: Borough councils whose districts have a population of 6,000 or more, at the rate of £1 2s. per head of population; borough councils and independent town boards with less than 6,000 population, 15s. per head; county councils and road boards, 8s. for each £1 of general rates (excluding levies for hospital purposes or for other local authorities) or of special rates for roading purposes collected during the year.

The higher rate for boroughs with a population of 6,000 or more is in recognition of the fact that there are no highways in boroughs of that size, and they do not receive the benefits from State and main highways expenditure which are enjoyed by the smaller boroughs, county councils, independent town boards, and roads boards. The annual subsidies described replace the former system under which local authorities received a limited subsidy on rates as well as heavy traffic fees—plus, in the case of boroughs with a population of 6.000 or over, a payment of 8 per cent of the proceeds of the first 6d. per gallon of the motor spirits and mileage tax distributed on a population basis for expenditure on streets forming continuations of highways. Local authorities also received receipts from drivers' licence fees, and these fees are still retained by them. A comparison of the payments made to local authorities under the former and current systems is now given.

£

Local Authority1953–54 (Former System)1955–56 (New System—Annual Subsidies)
Boroughs and independent town boards802,3141,4,469
Counties and dependent town boards788,3041,860,035
Road boards1,6405,769
      Totals1,592,2583,297,273

On State and main highways which were located within the boundaries of all local authorities except boroughs with a population of 6,000 or over, a total amount of £13,698,927 was expended on maintenance and improvements by the National Roads Board during 1955–56.

The Board provides the following additional assistance to local authorities for roading purposes: Subsidies on the cost of renewing bridges, and on the cost of restoring flood damage on local authority roads and streets; and financial help with the cost of extraordinary damage or maintenance caused by certain types of heavy traffic.

It also makes available special monetary assistance to local authorities whose financial position is such that they cannot cope with their roading responsibilities from their own resources and the various forms of subsidy available from the National Roads Fund. During the year 1955–56 the Board expended the following sums on the additional forms of assistance mentioned:

 £
Bridge renewals314,432
Flood damage repair87,082
Extraordinary damage or maintenance61,150
Special financial grants235,584
      Total£698,248

For the first time assistance is now available to cities and boroughs with a population of over 6,000 for major and urgent works on streets which are continuations of the State highway system. This involves subsidies, with a maximum of £3 for £1, for construction purposes only, and the object is to ensure that the value of improved arterial highways is not lost through traffic having to continue on low capacity and congested streets in such borough areas.

Loan Assistance.—In special circumstances the Board may advance money by way of loan to local authorities to provide for the proportion of cost payable by a local authority in respect of the construction or reconstruction of a main highway. Such loans must be repaid by instalments extending over a period (not exceeding ten years) to be agreed upon between the Board and the local authority, and interest is payable at a rate approved by the Minister of Finance.

The Board is also empowered to sell roadmaking machinery, plant, and equipment to local authorities on such terms as it thinks fit, including terms for the repayment of the purchase money by instalments extending over not more than four years, with interest on the unpaid balance at such rate as is fixed by the Board. Since this scheme was introduced by the Main Highways Board, plant etc., has been purchased to the value of £893,979, of which sum £105,949 was outstanding at 31 March 1956. New advances made and repayments received during 1955–56 totalled £105,495 and £37,076 respectively.

Main and State Highways. —The National Roads Act 1953 provides for the declaration of roads as main highways and, with the approval of the Minister of Works, the Board may classify any main highway as a State highway.

The National Roads Board has the sole powers of construction, maintenance, and control of all main highways. These powers may be delegated, for any main highway or portion thereof, to the local authority in whose district the road is situated. Any construction or maintenance work that is not delegated by the Board to a local authority is carried out by or through the agency of the Commissioner of Works and the cost borne by the Fund. The Board may also delegate to the Ministry of Works its duties in connection with design, supervision, construction, or maintenance, or the administration of any specified main highway. No new construction works are to be commenced by the Board, however, without the prior consent of the Minister of Works.

As stated earlier, the cost of construction and maintenance of main highways is apportioned so that the three-quarters is met from the Fund and the rest is payable by the several local authorities within whose districts any part of the highway is situated in such proportions as may be fixed by the Board. For those main highways declared as State highways, however, the whole cost of construction is to be met from the National Roads Fund.

At 31 March 1956 the length of State and main highways totalled 12,767 miles, compared with 12,777 miles in March 1955, the decrease of 10 miles being due to minor adjustments of lengths, deviations, and revocation of sections through boroughs attaining populations of 6,000.

Main Highway Standards.—In order to qualify for financial assistance local authorities are required to carry out works to a standard approved by the National Roads Board. Subsidies are not payable unless the approved standard is observed, although work of a higher standard may be undertaken provided that the additional expenditure involved is found by the local authorities concerned. From time to time the Board's standards are revised to meet the latest developments in highway practice and engineering design and also to cater for the requirements of increasing traffic. Roadmaking materials used in highway works are subject to standard tests, and during recent years advances have been made in the direction of framing standard specifications which allow of a wider use of certain local materials which formerly were not accepted.

Motorways.—Legislation by means of the Public Works Amendment Act 1947, as amended by section 44 of the Public Works Amendment Act 1948, makes provision for the declaration of limited-access highways or, more shortly, motorways. It is emphasized that motorways are not merely better all-purpose highways.

In addition to providing the most efficient and economic transport service, the main distinguishing features of a motorway are the control of access and the total elimination of ribbon development, both of which will go far to improve road safety and prevent obsolescence.

The total mileage of motorways in use at 31 March 1956 was 25 miles 30 chains. Of this length 14 miles 24 chains was completed during 1955–56, and 4 motorway bridges, totalling 996 ft., were also completed during this period. Additional lengths are under construction at Auckland, and at the northern approach to Dunedin. The figures quoted for motorways' mileages and bridging are additional to those shown under highways.

Activity During the Year Ended 31 March 1956.—During the year ended 31 March 1956, 569 miles of new sealing on highways were completed, giving an aggregate of 6,153 miles of sealed roads, or 48 per cent of the total highway mileage. In addition, improvements to existing sealed surfaces were effected on 606 miles of highways.

New bridging totalled 11,960 lineal feet, compared with 8,933 lineal feet in the previous year.

TOTAL EXPENDITURE ON ROADS BY GENERAL GOVERNMENT AND LOCAL AUTHORITIES.—The following table, compiled from Transport Department sources, shows the total expenditure upon roads, streets, and bridges for the years quoted. The amounts expended on maintenance and construction of main highways differ from those given on page 404, since the figures given in the table presented here are inclusive of local authority expenditure on roads classed as highways, whereas the earlier data refer only to funds expended by the Main Highways Board on this account.

£

1951–521952–531953–54

* The bulk of interest is an estimate of interest on local-authority and public road liability.

Maintenance—
  Rural main highways4,708,5284,915,3145,354,345
  Urban roads and streets1,050.5111,150,6001,743,139
  Other rural roads2,866,9243,250,1603,686,987
      Totals8,625,9639,316,07410,284,471
Construction—
  Rural main highways3,509,8484,182,7884,407,747
  Urban roads and streets1,346,8261,852,9012,142,046
  Other rural roads1,060,1921,326,9841,392,442
      Totals5,916,8667,362,6737,942,235
Interest* and sinking fund charges—
  Rural main highways516,493538,582524,430
  Urban roads and streets642,751675,804844,342
  Other rural roads1,222,0801,298,5051,347,543
      Totals2,381,3242,512,8912,716,315
      Totals, New Zealand16,924,15319,191,63820,943,021

The total expenditure shown in the preceding table was made available from the following sources of revenue.

£

1951–521952–531953–54

* This item covers sources of revenue other than receipts by way of loans, local rates, Government grants, and motor taxation, the latter including receipts from motor-drivers' licences and heavy-traffic fees.

All roads—
  Loans4,405,3955,620,6296,033,370
  Local rates4,837,4775,522,5866,437,916
  Government grants12,70111,5449,613
  General taxation*2,119,5162,333,0722,644,522
  Motor taxation5,549,0645,703,8075,817,600
      Totals16,924,15319,191,63820,943,021

REGISTRATION AND LICENSING OF MOTOR VEHICLES.—Before the Main Highways Act 1922 was passed, the Government, by the provisions of the Customs Amendment Act 1921 and the Finance Act 1921–22, recognized and applied the principle that motor-vehicle owners should contribute toward the cost of the construction and upkeep of the road surfaces which were required principally for them. This principle is still applied in the National Roads Act 1953.

When the Main Highways Act was passed it was expected that a Motor Vehicles Act dealing with the registration and annual licensing of motor vehicles would be simultaneously passed, but owing to the difficulty of co-ordinating all interests it was not until November 1924 that the Motor Vehicles Act became law. The 1924 Act was repealed by the Transport Act 1949, which became from 1 November 1949 the statutory authority dealing with these requirements.

The following scale of fees is operative from 1 July 1956: Registration fees are £1 for any tractor, trailer, or power cycle, and £2 for any other motor vehicle. Annual licence fees are as follows: Power cycles, £1; motor cycles, £2; motor cars and private station wagons, £3; motor vehicles designed to carry more than nine passengers, £5; motor vehicles of which the manufacturer's gross laden weight exceeds two tons, £5; traction engines. £7 10s.; motor vehicles not otherwise specified, £4; trailers (two or more axles), £5; trailers (other), £1 10s. Other fees include drivers' licences, 5s.; changes of ownership, 10s.; and dealers' licences (motor cycles, £2; any other motor vehicles. £3). All such fees, except those for drivers' licences which are payable to the local authorities, were credited to the Consolidated Fund until 31 March 1954, and thereafter are credited to the National Roads Fund. Heavy-traffic fees which are referred to under the next heading are levied under the Transport Act, and receipts therefrom, until 31 March 1954, were distributed among local authorities, but have been credited to the National Roads Fund in the Public Account since 1 April 1954.

The 1949 Act provides that the annual licence may take the form of new registration plates or be in such other form as prescribed by regulation. The Motor Vehicles (Registration and Licensing) Regulations 1949, replacing earlier emergency regulations, authorize the permanent alternative of a licensed label system instead of an annual change of registration plates. The charge for licence stickers is 6d., for each set of two number plates, 3s. 6d., and 1s. 3d. for a single plate for a trailer or motor cycle.

The following table shows the numbers of the various types of motor vehicles licensed as at 31 March in each of the last five years.

Type of VehicleLicensed as at 31 March
19521953195419551956

* Not required to register in years prior to 1953.

Cars280,458305,672323,641356,284393,504
Light trucks (i.e., 2 tons and under, laden)53,16756,58256,70759,00763,200
Heavy trucks (i.e., over 2 tons laden)42,01444,45946,25848,26351,963
Contract vehicles2,1032,1062,1642,1742,207
Omnibuses1,6781,7621,8222,0222,055
Taxis2,2222,2332,2582,3192,436
Rental cars1,5571,6381,7061,8392,010
Private-hire cars306352289257253
Service cars703727723699733
Trailers40,93744,13748,67554,76860,710
Vehicles exempted from payment of annual licence fees (other than exempted Government-owned vehicles)42,97145,56447,28749,25650,685
Government vehicles12,01813,90014,63214,90515,789
Motor cycles26,70325,54625,75426,24424,592
Power cycles* 3,6513,9724,1144,180
      Totals506,837548,329575,888622,151674,317
Dealers' cars2,1822,3122,4432,6532,875
Dealers' motor cycles140121128147130
      Grand totals509,159550,762578,459624,951677,322

The abolition of motor-spirits rationing as from 1 June 1950 was the culmination of the gradual lifting of wartime restrictions on the use of motor-spirits. The increased figures for recent years follow on the higher importations of motor vehicles, particularly of cars. Motor vehicles exempted from the annual licence fee include a miscellaneous collection of machines such as farmers' motor vehicles used solely on the farm and only venturing on roads to proceed from one part of the farm to another, or from farm to garage for repair, etc., excavators, scoops, trench diggers, logging machinery, cranes, etc.

The next table shows the estimated total consumption of motor spirits in New Zealand, together with the quantity consumed by motor vehicles, for each year during the period 1945 to 1956.

Million Gallons

Calendar YearConsumption of Motor SpiritsConsumption of Motor SpiritsCalendar YearConsumption of Motor SpiritsConsumption of Motor Spirits
By Motor VehiclesTotal ConsumptionBy Motor VehiclesTotal Consumption
194565.674.61951139.4165.9
194686.596.61952149.0182.9
1947103.3117.01953160.5196.7
1948102.6118.31954172.1213.0
1949111.5132.61955185.0228.5
1950122.5145.81956200.7244.9

Consumption of motor spirits for civilian purposes reached its lowest level in 1942, successive increases occurring from then until 1948, which was influenced by reversion to a modified form of the wartime rationing. The following years also recorded increases principally owing to the abolition of rationing in 1950 and to the greater number of vehicles on the roads in recent years. Consumption by the Armed Forces was excluded from the figures given for years up to the 1947 year.

The following diagram illustrates the movement that has taken place in the number of motor vehicles licensed, and in the consumption of motor spirits by motor vehicles since 1933. The low consumption of motor spirits during the depression period, the effects of rationing during the war years, the post-war recovery, and increases paralleling the greater number of vehicles licensed in later years, are clearly demonstrated.

The following table gives particulars of the numbers of motor vehicles registered during each of the last five financial years. It must not be assumed, however, that the figures are a record of the number of new vehicles introduced into the country's traffic system each year, since they include an unknown number of vehicles which have been brought back into commission after having been removed from the register. In this connection it may be mentioned that dormant registrations—i.e., vehicles the registrations of which have not been cancelled, but which have not been relicensed for the current year—may be cancelled after the expiration of that year. If, however, a vehicle is again brought into use after its registration has been cancelled, it is treated as a new registration.

Year Ended 31 MarchCarsMotor Cycles (Including Power Cycles)Commercial VehiclesTotal Registrations
195234,6998,12531,04573,869
195328,4196,45928,84163,719
195424,7134,91524,62154,249
195540,4134,74728,77773,937
195645,1163,71033,51982,345

The large number of registrations shown for the last five years reflect the heavy importations of vehicles during the period.

ROAD TRANSPORT.—The period following the First World War ushered in a rapid development of an already considerable road motor transport which has necessitated extensive legislation not alone for its control, but also for the provision of adequate road-surfaces. Certain principal enactments are referred to briefly in chronological order.

The Customs Amendment Act 1921, among numerous tariff changes, imposed a tire tax on rubber tires and tubes, previously duty free. The proceeds were credited to the Main Highways Account until 31 March 1947, and since then to the Consolidated Fund. For an account of the moneys derived from this and other highways taxation, see Section 30B (Taxation).

The Main Highways Act of 1922, referred to earlier in this Section, constituted the next landmark. Two years later came the Motor Vehicles Act 1924 (this being repealed by the Transport Act 1949). At the same time the Public Works Amendment Act 1924 was passed (later included in the 1928 consolidation of that Act). Under it regulations could be made fixing, in respect of commercial vehicles of over 2 tons gross weight, heavy-traffic fees payable to local authorities for road-maintenance purposes, and also classifying roads and providing other measures. Regulations to this effect were made in 1925, and are now embodied in the Heavy Motor Vehicle Regulations 1955, replacing 1940 and 1950 regulations of similar title. Quarterly licence fees under the Heavy Motor Vehicle Regulations range from £2 3s. 4d. (not above 2½ tons) to £97 15s. (30 tons), with £3 10s. for each additional ton or part thereof above 30, commencing from 1 June 1954. The fees for farmers' trucks range from £1 1s. 8d. to £92 1s. 8d. on a corresponding basis. No distinction is now made between passenger and goods vehicles, while the range of weight classes is considerably extended. Heavy-traffic fees, less the cost of collection, etc., were apportioned among the local authorities having control of roads within each heavy-traffic district, either as may be mutually agreed upon by such local authorities or, in default of such agreement, by the Minister of Transport, but from 1954 the fees (less collection costs as fixed by the Minister of Finance and not exceeding 5 per cent) are payable to the National Roads Fund.

With the object of controlling motor-omnibus competition with tramways, regulations under the Board of Trade Act were issued in 1926. In the same year they were superseded by the Motor Omnibus Traffic Act, itself later repealed by the comprehensive Transport Licensing Act 1931 (amended in 1933, 1935, 1936, 1939, and 1948). All this legislation was consolidated by the Transport Act 1949.

The Motor Spirits Taxation Act 1927 imposed a duty of 4d. per gallon (raised in 1930 to 6d. per gallon; further subsequent increases were not connected with road taxation). As previously mentioned, from the net proceeds 8 per cent was formerly distributed on a population basis among cities or boroughs of a population of 6,000 upwards. From November 1953 the full duty was increased to 1s. 3d. per gallon, all of which is now paid into the National Roads Fund instead of only the first 6d. per gallon.

In 1927 the administration of the Motor Vehicles Act 1924 was transferred to the Public Works Department, which subsequently issued in draft form regulations containing a uniform code of rules for motor traffic in New Zealand. After full opportunity for criticism by interested parties the regulations were brought into force in 1928; they were later reissued through the Transport Department in 1936; and amended and consolidated as the Traffic Regulations 1956.

The Public Works Act 1928 contained extensive provisions relating to the construction, maintenance, and use of roads. Almost simultaneously came the Motor Vehicles Insurance (Third Party Risks) Act 1928—refer Section 34B (Accident Insurance).

In 1929 the Transport Department Act constituted the portfolio of Minister of Transport, and also constituted the Transport Department under a Commissioner of Transport. The Act placed the administration of the following Acts under the Transport Department: Motor Vehicles Act 1924, Motor Omnibus Traffic Act 1926, Motor Spirits Taxation Act 1927, Motor Vehicles Insurance (Third Party Risks) Act 1928, and Public Works Act 1928 in so far as it related to heavy traffic or to motor vehicles. The Transport Licensing Act 1931 was also under the administration of the Department. The Transport Act 1949 consolidated all previous legislation and repealed the Acts quoted.

TRANSPORT LICENSING.—The Transport Act 1949, which repealed the Transport Licensing Act 1931 and its amendments, provides that any authority under the Act when dealing with an application or any other matter concerned with road transport or harbour-ferry services, is to have regard primarily to the public interest, the desirability of the service, and the needs of the district. More generally the authority is to have regard also to the following:

  1. The provision of modern transport facilities best suited according to the nature of the service to meet the needs of national production and living standards and of national defence:

  2. The fair and impartial regulation of all forms of public transport in order to develop and maintain transportation facilities adequate to meet the needs of New Zealand and of national and Commonwealth defence; and, for these purposes, to administer such facilities so as to recognize and preserve the inherent advantages of each form of transport; to promote safe, adequate, economic, and efficient service, and the fostering of sound economic conditions in transportation; to encourage the establishment and maintenance of reasonable transport charges without unjust discrimination, undue preference or advantage, or unfair or destructive practices; and to promote good working conditions for workers.

The more important provisions of the 1949 law are described in the paragraphs now given, most of these being the re-enactment of the former legislation.

The constitution of transport, goods-service, and harbour-ferry service districts was provided for in the Act, together with the establishment of a Licensing Authority for each district. For the four metropolitan transport districts, the Licensing Authorities appointed are the Auckland Transport Board and the Wellington, Christchurch, and Dunedin City Councils respectively. Goods-service districts may be identical with a transport district or be a part of the latter. The Governor-General may also declare any specified harbour or harbours or parts thereof to be a harbour-ferry service district.

The Licensing Authority for any transport district may also be declared to be the Licensing Authority for the goods-service district. The Act provides for the appointment of a Licensing Authority for each harbour-ferry district instead of the former practice under which the Licensing Authority for the transport district to which the harbour is contiguous was to be the Licensing Authority for the harbour-ferry district. The Minister may authorize any specified Licensing Authority to exercise jurisdiction in respect of licences which would otherwise come within the jurisdiction of some other Licensing Authority.

The Licensing Authority, other than a Metropolitan Authority, is to consist of either one or three persons as the Minister may determine, who are appointed for a term of up to three years' duration. Members arc also eligible for reappointment. The sole member or the Chairman (where the Authority consists of three members) has the authority and privileges of a Magistrate in respect of proceedings.

Passenger and goods services and harbour-ferry services are only to be carried on under licence. The meaning of “goods service” in the Transport Act includes the carriage of goods (whether for hire or reward or not) by means of a goods service vehicle over 2½ tons gross laden weight if there is an available route for the carriage of the goods that includes not less than 50 miles of open Government Railway in the case of logs (except for the Murupara–Kawerau Railway) or 30 miles in any other case. Where a farmer is carrying his own farming goods (other than lime) in a goods-service vehicle owned by him it is a goods service if the gross laden weight exceeds 6½ tons, and if there is an available route that includes not less than 50 miles of open Government railway in the case of live-stock and fresh milk, cream, vegetables, fruit, eggs, or poultry, or 30 miles in any other case. The foregoing provisions do not apply if the route that includes the railway is longer by more than one-third than the shortest road route or where the owner of the motor vehicle is the Crown or a local authority or a public body.

A transport licence is not required for (1) the carriage to and from school of school children and their teachers only; (2) the carriage by a contract vehicle or a harbour ferry of a private party on a special occasion; (3) carriage of workmen to and from work by the Government or a public body, where the vehicle is not designed principally for the carriage of persons and such service has been approved by the Minister for this purpose; (4) carriage of passengers in a trackless trolley omnibus; (5) for carriage of newspapers, or in connection with funerals or repair and wreckage of vehicles which have met with mishap; (6) farmers carrying milk, cream, or whey to and from dairy factories for their neighbours where a licensed goods service is not available; (7) relieving or assisting inhabitants of a locality affected by flood, earthquake, or fire; (8) carriage of showman's goods, etc., by a vehicle owned by the showman; and (9) goods services otherwise exempted by Order in Council.

In considering applications for licences the Licensing Authority is to have regard to the extent to which any proposed service or improved service is necessary or desirable in the public interest, and the needs of the district concerned and the protection of public funds where the Minister of Railways holds a licence. If further consideration be then given, factors to be taken into account are existing services, financial ability of applicant to carry on the service, provision and maintenance of a reasonable standard of living and satisfactory working conditions in the transport industry, the manner in which a service has already been carried on, or the likelihood of satisfactorily carrying on a service, time-tables and frequency of service, vehicles or ferries to be used, conditions of roads, routes and load restrictions, speed, etc., and representations that may be made by various bodies, persons carrying on transport services and likely to be affected, and petitions of twenty-five or more adult persons of the locality concerned, etc.

Preference is to be given to applications by Government and local authority or other public body under certain conditions, chiefly where no existing services are available or where the proposal is for an extension of an existing service, or if the new service is wholly within the applicant's district in the case of a local authority, etc., or where there will be no competition with an existing service to the same locality by means of another route.

The Licensing Authority is to prescribe the terms and conditions of the licences such as class (continuous, seasonal, or temporary), commencement date, localities and routes, time-tables, etc.

Additional requirements may be prescribed for taxicab licences to ensure the control of the service in the interests of efficiency and of the public—e.g., complying with roster of duties, joining an organization for the purpose of obtaining telephone facilities, etc. Licences are transferable subject to certain conditions, while the maximum duration of a harbour-ferry service licence is to be ten years, and that of road transport licences to be five years.

Certificates of fitness are required for each passenger service or goods-service vehicle and all trucks with gross laden weight exceeding two tons.

The Transport Act 1949 provided that the fixing, altering, or reviewing of charges in respect of any transport service should be carried out solely by the Transport Charges Committee or the Transport Charges Appeal Authority established under the Act. The 1950 amendment, however, abolished the Transport Charges Committee and provides that charges are to be fixed, in the case of a service owned by a public body, by that body itself, and in the case of any other service, by the Commissioner of Transport, there being a right of appeal to the Transport Charges Appeal Authority in either case.

The Transport Charges Appeal Authority, as in the case of the Transport Licensing Appeal Authority, also established under the Act, is to be either a Judge of the Supreme Court or the holder of any office under any Act who is entitled to the equivalent rights and tenure of office as a Judge of the Supreme Court.

Applications to fix road and harbour-ferry charges may be made by the holder of, or an applicant for, the licence; any other person whose interests are affected, being the holder of a licence, an applicant, the permanent head of a Government Department, a local authority, or a public body; any twenty-five or more adult residents of a locality in which the charges are or would be in force; all parties to a contract for the carriage of passengers or goods by any such services; and incorporated bodies whose members have a special interest in the type of transport concerned or whose principal objects are the protection of the interests of transport operators. The power to fix fares to be charged on any road passenger service carried on by the Minister of Railways to which Part III of the Government Railways Act 1949 applies, is expressly excluded from the jurisdiction of the charge-fixing bodies, but there is now right of appeal to the Charges Appeal Authority.

The principles to be observed in determining transport charges include: the promotion and maintenance of the economic stability of New Zealand; desirability of increasing national production by granting concessions on the carriage of producers' goods; desirability of providing special fares for all regular users of passenger services, and that children under four years be carried free, with children from the age of four years and under fifteen years at half adult rates; desirability of maintaining a reasonable standard of living and satisfactory working conditions in the road transport and harbour-ferry industries; and the maintenance of efficiency of the transport services to which the proceedings relate.

Included in the general provisions is one under which the owner of any motor vehicle licensed for passenger services or goods services and involved in an accident attended by serious injury to any person, or serious damage to the property of any person, shall notify the Commissioner of Transport within forty-eight hours of the occurrence.

Operations of Licensed Goods and Passenger Services.—The following tables review the operations of licensed road transport services to which the preceding paragraphs relate. The first of these tables gives the estimated overall figures concerning licensed road goods services for the four years ended 31 March 1952–55.

Road Goods Services1951–521952–531953–541954–55
Revenue£23,342,00024,555,00026,628,00029,703,000
Capital£15,074,00016,357,00017,361,00018,413,000
Total vehicle-milesNo.195,300,000195,100,000199,500,000208,100,000
Vehicles ownedNo.12,28513,07513,20213,619
Number of operators 5,2485,3735,5705,902
Average revenue per vehicle-miled.28.6830.2132.0334.26
Average number of miles per vehicle 15,89914,91915,11415,279

The second table shows traffic data, revenue, and number of vehicles used by the road passenger services operating in New Zealand, and is inclusive of services in the four Metropolitan Transport Districts, for each of the four years ended 31 March 1952–55.

Road Passenger Services1951–521952–531953–541954–55
Traffic statistics—
  Passengers carriedNo.119,080,344114,235,629136,534,240149,856,890
  Vehicle-milesNo.59,692,82259,750,26164,700,14968,478,980
      Total revenue£6,242,3736,357,7107,277,4777,931,014
      Total revenue, per miled.25.0925.5327.0027.79
Number of vehicles included 2,7492,8493,1143,170

ROAD SAFETY.—During 1947 the New Zealand Road Safety Council was reconstituted. This body was first set up in 1936 to advise the Government on matters of road safety. Sub-committees have now been set up dealing with the following: the motor driver, motor vehicle, roads, traffic laws, traffic law enforcement, road accident statistics, road safety publicity, and child education in traffic.

Publicity directed towards road safety is carried out per medium of the press, posters, screen slides, and radio, concentrating on simultaneous presentation, as far as possible, of specific aspects of the problem. Other means employed in furthering road safety consist of traffic instruction in schools, inspection of motor vehicles, and enforcement of traffic laws.

The Transport Act 1949, as amended in 1950 and 1955, contains several provisions designed to achieve greater safety on the roads. A maximum speed limit of 50 miles per hour is fixed, but lower limits are provided for special classes of vehicles—e.g., motor cycles with pillion riders, 40 miles per hour (30 miles per hour without safety helmets); heavy passenger vehicles, 40 miles per how; vehicles drawing trailers, 35 miles per hour; and heavy goods vehicles, 30 miles per hour. A uniform speed limit of 30 miles an hour is fixed in boroughs, town districts, or other localities which have been declared to be closely populated localities by notice published by the Minister of Transport in the New Zealand Gazette. The Act also gives the Minister power to exempt any road in a particular borough or town district from the provisions of the maximum speed limit, and further exceptions are ambulances (fitted with a siren or bell) or police vehicles travelling on urgent duty, or fire engines proceeding to a fire.

Persons convicted on indictment of negligent or reckless driving, or driving while under the influence of drink or a drug to such an extent as to be incapable of having proper control of a motor vehicle, if injury or death to any person results from their actions, are liable to a maximum penalty of five years' imprisonment or a fine of £500. Where no person is injured or where the offence as above results in summary conviction, the maximum penalty is three months' imprisonment or a fine of £100. Where any person is convicted of negligent or reckless driving or driving or attempting to drive a vehicle while under the influence of drink or a drug to such an extent as to be incapable of having proper control of a motor vehicle, the Act provides that, unless the Court directs otherwise, an order must be made cancelling the offender's licence and disqualifying him from obtaining another for a period of at least one year from the date of conviction. By a later amendment, application may be made after six months to the Court imposing this penalty for removal of the disqualification. After the first offence the period of compulsory disqualification is increased to five years and he may not apply to the Court for review until after two years. The Act prescribes penalties for careless or inconsiderate driving, certain accident promoting offences (28 days' disqualification), the drinking of intoxicants in a public vehicle, and makes compulsory the reporting to the police of all motor-vehicle accidents involving injury.

Included in the Traffic Regulations 1956 are the requirements to which motor drivers must conform and which are designed to promote the safety of those using the roads.

The following table shows the nature of the offences resulting in convictions during the four years ended 31 March 1953–56.

Type of Offence1952–531953–541954–551955–56
(a) Road traffic offences—
  Intoxicated in charge207194207251
  Negligent driving18181826
  Dangerous manner383382359275
  Dangerous speed254217188153
  Careless or inconsiderate driving513650620638
  Exceeding 30 m.p.h.4,3565,2843,1372,607
  Overtaking offences199204301176
  Failing to keep left436405604445
  Failing to yield right of way500508569324
  Driver's licence offences9551,187976921
  Licensing and registration offences546920697614
  Lighting offences1,3221,6981,144772
  Defective brakes266243114140
  No warrant of fitness1,9462,1941,4921,579
  Loading offences282358237133
  Exceeding 50 m.p.h.399611513508
  Cycling offences436489518385
  Failing to dip108989283
  Failing to give right of way to pedestrians1071115661
  Exceeding 40 m.p.h. with pillion passenger409528427318
  L plate offences510529597450
  Crossing railway line75653341
  Miscellaneous1,7682,9552.6983,620
(b) Heavy motor-vehicle offences—
  Exceeding heavy-traffic licence794770520494
  Exceeding axle load1,1691,407953588
  No heavy-traffic licence524565343538
  Speeding657800778689
  No heavy-traffic disc or class plates8969347
  Miscellaneous2319426115
(c) Transport licensing offences—
  Unlicensed goods service310327301235
  Breach of goods service licence145124161165
  Unlicensed passenger service19883
  Breach of passenger service licence41613
  No certificate of fitness455368280310
  No vehicle authority94864645
  Drivers' hours breaches58116
  Overloading2051026421
  Rental vehicle offences40422836
  Miscellaneous transport offences1522917
(d) Miscellaneous offences under miscellaneous Acts and regulations47642823
      Totals20,79824,72019,17817,825

The above table covers only the offences reported by officers of the Transport Department.

TRAFFIC ACCIDENTS ON ROADS.—Motor-vehicle accidents involving death or personal injury are required by law to be reported to the police. For the year ended 31 December 1955, 6,676 such accidents, resulting in 333 fatalities and in injuries to 8,976 other people, were reported. Comparative figures for 1954 and 1953 years were (1953 figures being given in parentheses): number of accidents, 5,895 (5,669); fatalities, 360 (292); persons injured, 7,875 (7,686). The increase in the traffic flow over the last few years, caused largely by the increased number of vehicles on the road, has been an important factor in the increase in motor accidents. New Zealand has one of the lowest motor accident death rates (based on deaths per 10,000 licensed motor vehicles), the figure for 1955 being 5.78. Details of the number and nature of road accidents for the five calendar years ended in 1955, which have been compiled by the Transport Department, are as follows.

Nature of AccidentNumber of Accidents
19511952195319541955
Collisions—
  Between two or more motor vehicles1,9672,2182,2242,3002,609
  Between motor vehicle and bicycle1,0561,1011,0041,0821,208
  Between motor vehicle and pedestrian9249021,0001,0211,120
  Between motor vehicle and fixed object234249289326406
  Between motor vehicle and animal or horse vehicle4545475455
  Between motor vehicle and railway train4039373445
  Between motor vehicle and tram3840222016
  Multiple and other collisions180201214209288
      Totals, collisions4,4844,7954,8375,0465,747
Non-collisions—
  Drove off road197176202193199
  Went over bank194194245236252
  Overturned on roadway232290254297353
  Person fell from vehicle921089710297
  Other2526342128
      Totals, non-collisions740794832849929
      Total accidents5,2245,5895,6695,8956,676

Particulars of fatal motor-vehicle accidents included in the foregoing table are now given. It should be noted that the figures relate to the number of accidents and not to the number of deaths, which, as stated above, numbered 333 in 1955.

Nature of AccidentNumber of Fatal Accidents
19511952195319541955
Collisions, motor vehicle with—
  Pedestrian6960798579
  Motor vehicle5560687973
  Train867811
  Tram123  
  Bicycle3630273826
  Horse vehicle or animal12413
  Other2923373937
Otherwise.7370678475
      Totals272253292334304

Statistics of deaths resulting from motor-vehicle accidents are available for many years from vital statistics, these figures being discussed briefly in Section 4C.

The following table shows the distribution of motor accidents on the system of roads and streets during the calendar year 1955.

Classification of LocalityFatal AccidentsInjury AccidentsAll Accidents
NumberPercentage of TotalNumberPercentage of TotalNumberPercentage of Total
Four main cities3912.81,94530.51,98429.7
Secondary cities (9)196.376111978011.7
Boroughs 6,000 to 20,000 population (29)3511.597815.41,01315.1
Small boroughs, town districts, and closely populated localities4013167810.671810.8
    Total in built-up areas13343.74,36268.44,49567.3
State highways8628.31,19718.81,28319.2
Main highways3712.24006.34376.6
Other rural roads4815.84136.54616.9
    Total on rural roads17156.32,01031.62,18132.7
    Total accidents304100.06,372100.06,676100.0

The next table gives an analysis of the more important causes of accidents involving motor vehicles during the year ended 31 December 1955.

CausePercentage of Accidents Where Motorists Considered ResponsiblePercentage of Accidents Where Pedestrians Considered ResponsiblePercentage of Accidents Where Cyclists Considered ResponsiblePercentage of all Miscellaneous Causes
Failure to yield right of way27 22 
Failure to keep left10 8 
Driver/rider inattentive12 17 
Excessive speed9   
Intoxicated3   
Skidding4   
Pedestrian crossing roadway heedless of traffic 47  
Pedestrian emerging from behind vehicle or object 21  
Pedestrian stepping into roadway without due care 11  
Pedestrian intoxicated 7  
Pedestrian confused by traffic 4  
Pedestrian failing to keep to side of road where no footpath 3  
Turning suddenly  13 
Swerving negligently  7 
Reckless emergence from another road  8 
Door opened in moving vehicle   6
Animals on roadway   11
Door of vehicle opened in path of other party   9
Road surface slippery from rain   12
Narrow road   5
Excessive depth of loose metal   8
Sundry causes3572549
      Totals100100100100

On week days, from Monday to Friday inclusive, the worst hourly period for motor accidents was from 5 p.m. to 6 p.m., on Saturdays from 6 p.m. to 7 p.m., and on Sundays from 4 p.m. to 5 p.m. More accidents occur on Saturday than on any other day of the week.

Chapter 15. SECTION 15—CIVIL AVIATION AND AIR TRANSPORT

Table of Contents

ADMINISTRATION.—Civil Aviation in New Zealand is administered by the Civil Aviation Administration of Air Department. The Air Department was constituted by the Air Department Act of 1937. Prior to that date the control of Civil Aviation, like its military counterpart, was vested in the Defence Department.

The Civil Aviation Act of 1948 provides for the position of Director of Civil Aviation as well as giving effect to the Convention on International Civil Aviation signed at Chicago on behalf of New Zealand on 7 December 1944.

The 1955 amendment to the principal Act redefined the terms aerodrome and aircraft to conform with those generally accepted in modern aviation practice. The maximum penalties for dangerous operation of aircraft were also substantially increased up to a fine of £500 or imprisonment for twelve months.

The present organizational structure of the Civil Aviation Administration consists of a Directorate Staff, three technical divisions—viz., Operations, Airworthiness, and Airways—and an Administration Division. Principal functions of the four Divisions include—

  1. Examining and licensing of flight crews and aircraft maintenance engineers.

  2. Operation of the airways communication and air traffic control systems.

  3. The surveying of, and issuing certificates of airworthiness for civil aircraft.

  4. Collaboration with the Ministry of Works on airport projects.

  5. Licensing of aerodromes.

  6. The provision and maintenance of radio aids to air navigation.

  7. Operational certification of commercial aircraft operators.

  8. Dissemination of aeronautical and general aviation information.

  9. Liaison with the Royal New Zealand Air Force on matters of common interest and with overseas organizations, particularly the International Civil Aviation Organization.

STAFF.—The staff of the Civil Aviation Administration at 31 March 1956 totalled 704. This figure is inclusive of officers stationed in Fiji, the Cook Islands, and Western Samoa, but excludes local island labour employed at those places.

FACILITIES.—Various facilities for air navigation are provided by the Civil Aviation Administration. Radio navigational aids of different kinds are installed at the more important airfields in New Zealand and in the South-west Pacific, as well as en route aids at various points along the internal airways.

In addition, the Civil Aviation Administration has a number of aeradio stations in New Zealand providing air to ground, ground to air, and ground point to point communication facilities, plus communication centres located at Auckland, Christchurch, and Wellington.

The Air Traffic Control system comprises control towers situated at the important aerodromes with Area Control Centres situated at Auckland, Wellington, and Christchurch. In addition, communication facilities are provided at aerodromes in the Cook Islands, Fiji, and Western Samoa. In Fiji an Air Traffic Control Service is also maintained by the Civil Aviation Administration.

As already mentioned, the Civil Aviation Administration is responsible for collaborating with the Ministry of Works on airport planning, with the Ministry undertaking the actual construction and maintenance. At the larger airports in New Zealand and in the South-west Pacific crash/fire facilities are provided by the Civil Aviation Administration.

The Civil Aviation Charges Regulations 1954 prescribe the rates of dues payable by operators for the use of airways and airport facilities provided or maintained by the Crown. Different rates are prescribed in respect of international and domestic operators, and a distinction is made in respect of air transport and other domestic operations. No charges, other than those prescribed by regulations, are to be made for the use of aerodromes or connected facilities without the approval of the Minister in Charge of Civil Aviation.

The administration of Raoul Island in the Kermadec Group and Campbell Island, on which weather reporting stations are located, is another responsibility of the Civil Aviation Administration.

EXPENDITURE.—The total Government expenditure on civil aviation and meteorological services in New Zealand and its island territories in 1955–56 was £1,920,794 (civil aviation £1,596,292 and meteorological services £324,502), compared with £1,747,473 in 1954—55 (civil aviation £1,434,583 and meteorological services £312,890). Expenditure on the South Pacific Trunk Air Route (partly recoverable from the South Pacific Air Transport Council Member Governments) was £308,159 in 1955–56 and £276,731 in 1954–55.

AIR SERVICES LICENSING.—Licensing of air services in New Zealand is now vested in the Air Services Licensing Authority which was constituted by the Air Services Licensing Act of 1951. This authority consists of three members appointed by the Crown, and its principal functions are to hear and determine applications for the granting, renewal, or transfer of air service licences. An air service (including aerial topdressing) may not be commenced or carried on without a licence granted under the Act except that any aero club affiliated to the Royal New Zealand Aero Club (Inc.) may carry club members in club owned or hired aircraft without such a licence.

For the year 1955–56, 68 applications were received for air service licences, and the following table shows the decisions of the Authority.

CategoryDecision by AuthorityTotal Applications Received
New Licence IssuedTemporary Licence IssuedExisting Licence AmendedApplication DeclinedApplication Withdrawn, Lapsed, or Adjourned
Topdressing2 334140
Other aerial work1    1
Scheduled services  41 5
Non-scheduled services3118  22
      Totals611455168

Provision also is made in the Air Services Licensing Act for the appointment of an Appeal Authority of one member. Two appeals were lodged during the year and both of these were dismissed.

NEW ZEALAND NATIONAL AIRWAYS CORPORATION.—The operation of the internal air services is no longer under the complete control of the National Airways Corporation, as provision was made for other operators to run services under the Air Services Licensing Act 1951 previously mentioned. However, the bulk of the internal scheduled services are still operated by the Corporation. Information concerning the establishment of the National Airways Corporation and its duties and functions may be found on pages 329–330 of the 1951–52 Year-Book.

The Corporation's operating revenue figures for the year ended 31 March 1956, together with those for the two preceding years, are as follows.

 1953–541954–551955–56
 £££
Passenger fares1,742,9421,891,3482,087,586
Excess baggage24,37625,35827,762
Freight198,814279,373344,594
Mail77,43494,403104,222
Charters25,84837,88551,780
Incidental revenue33,71037,93144,981
      Totals2,103,1242,366,2982,660,925

Operating expenditure in 1955–56 totalled £2,474,124 (including depreciation on equipment), as compared with £2,270,522 in 1954–55 and £2,034,722 in 1953–54. The Corporation thus enjoyed a successful year financially. After adding interest on investments and deducting interest on capital and loans, a net profit of £42,033 was made in 1955–56, the corresponding figure for 1954–55 being £71,233. Provision for taxation in 1955–56 amounted to £120,184.

FLYING OPERATIONS: Domestic Scheduled Services.—Scheduled air transport operations over specific routes were first commenced in New Zealand in December 1934, on the route Inch-bonnie – Hokitika – Franz Josef Glacier, on the West Coast of the South Island. Subsequent extensions of services up to the outbreak of war in September 1939 had covered almost the whole of New Zealand. During 1946 and 1947 the New Zealand National Airways Corporation absorbed all then existing scheduled commercial services, and by adding to the fleet of aircraft was able to commence new services.

In February 1953 a scheduled service between Christchurch and Oamaru via Ashburton and Timaru was commenced by South Island Airways Ltd., followed by a Christchurch to Nelson service during 1954.

At 31 March 1956 domestic scheduled services were being operated on the following routes.

Terminating Points of RoutesIntermediate StopsRoute MilesScheduled Frequency
New Zealand National Airways Corporation
Auckland–WhangareiNil723 return trips daily.
Auckland–KaitaiaKaikohe1421 return trip daily.
Auckland–DunedinWellington, Christchurch7032 trips south and three north daily.
Auckland–DunedinWellington701I trip south daily.
Auckland–ChristchurchWellington5052 south and 1 north daily.
Auckland–ChristchurchNil4791 return trip daily.
Wellington–ChristchurchNil2182 trips south and 2 north daily; 1 south Monday only.
Wellington–DunedinChristchurch4162 trips south and 2 trips north daily.
Wellington–ChristchurchNil2185 return trips weekly and as required.
Auckland–ChristchurchHamilton, Palmerston North, Blenheim5241 return trip daily.
Auckland–WellingtonHamilton, Palmerston North, Wanganui2961 return trip daily.
Rongotai–HamiltonNapier, Rotorua3191 return trip daily.
Auckland–GisborneNil2231 return trip daily.
Auckland–GisborneTauranga2261 return trip daily.
Gisborne–WellingtonNapier, Palmerston North2262 return trips daily.
Auckland–WellingtonNew Plymouth, Wanganui, Palmerston North3341 return trip daily.
Auckland–WellingtonNew Plymouth2981 return trip daily.
Rongotai–BlenheimNil505 return trips daily plus 1 return trip Monday and Friday only.
Rongotai–NelsonNil836 return trips daily.
Wellington–NelsonNil963 return trips daily.
Nelson–WestportNil951 return trip daily.
Westport–HokitikaNil753 return trips weekly.
Hokitika–HaastNil1254 return trips weekly and as required to Waiho.
South Island Airways Ltd.
Christchurch–OamaruAshburton, Timaru1332 return flights weekly.
Christchurch–TimaruNil924 return flights weekly.
Christchurch–NelsonNil2052 return flights weekly.
Straits Air Freight Express Ltd.
Wellington–NelsonNil96Daily as required.
Wellington–BlenheimNil72
Wellington–ChristchurchNil218As required.
Wellington–OamaruNil344

The following table gives the summarized results of the operations of scheduled commercial air services during the last eight years. Statistics for the New Zealand Railways Freight Service, operated by Straits Air Freight Express Limited since 1 April 1951, are excluded.

Year Ended 31 MarchHours FlownMiles FlownPassengersFreight (lb.)*Mail (lb.)Passenger-milesFreight Ton-milesMail Ton-miles

* Includes excess baggage.

† Includes excess baggage ton-miles.

194931,3864,015,831174,8361,934,626752,49244,323,199242,846108,580
195035,2494,508,306204,7072,757,701873,30549,478,365351,175121,251
195134,0664,369,308238,4055,724,341916,68859,744,623658,817128,923
195237,1914,818,331303,04810,880,8221,782,08478,351,8051,351,088238,507
195337,0494,739,727312,4227,834,8681,123,62679,512,1391,010,009146,457
195444,0475,504,250370,00610,490,8921,740,49589,956,7431,366,220174,132
195546,9465,830,888387,36515,594,6111,024,13593,889,6351,976,621183,686
195649,5726,275,678429,48018,753,8101,156,986104,402,2782,396,704218,878

Aircraft used in the operation of services on these routes were—

Douglas D.C. 321
Douglas C. 47B (Freighter)3
D.H. 89B Dominie8
D.H. Heron4
Bristol Freighters3
      Total39

Cook Strait Rail/Air Freight Service.—The New Zealand Railways Air Freight Service was commenced officially in February of 1947 following a number of special inter-island freight flights which had been carried out by the Royal New Zealand Air Force at the request of the Railways Department to meet a shipping emergency. With the introduction of the Cook Strait Rail/Air Freight Services, delays caused by lack of shipping space and industrial troubles were somewhat alleviated. The service was conducted by the R.N.Z.A.F., operating Dakota aircraft until June 1947, when the service was handed over to the New Zealand National Airways Corporation, which continued to operate with Dakotas.

In 1950 the Railways Department decided to allow private enterprise the opportunity of tendering for the contract to run the service, and the successful tenderer was Straits Air Freight Express Ltd., which took over on 1 April 1951. The service is at present being maintained by three Bristol Freighter aircraft on a daily basis, the number of trips varying according to the amount of cargo offering.

Traffic statistics for this freight service for the years 1948 to 1956 are as follows.

Year Ended 31 MarchTrips FlownHours FlownMiles FlownFreight (lb.)Freight Ton-miles
19481,7861,114138,26613,081,232448,891
19492,2301,482181,63017,286,265600,682
19503,0181,949232,04221,789,779745,781
19514,2972,781320,51431,293,3291,045,558
19524,5412,461335,71449,671,1251,644,051
19532,9131,412213,45933,879,4451,106,476
19543,9371,954293,89240,497,6811,360,322
19554,8852,487364,07650,145,3041,668,087
19565,4112,683398,54753,913,9071,780,085

Non-scheduled Air Services.—During the year ended 31 March 1956 two new companies began operations in the field of non-scheduled air transport. At that date, twelve companies were engaged in charter, taxi, and joyriding work, including the major scheduled operators, New Zealand National Airways Corporation and Straits Air Freight Express Ltd. (S.A.F.E.), and an Australian company, Ansett Airways Ltd., which carried out four charter flights to the Chatham Islands during the year. Also engaged in non-scheduled operations were twelve aero clubs. The following is a traffic summary of these services for the years ended 31 March 1955 and 31 March 1956.

1954–551955–56
Commercial CompaniesAero ClubsTotalCommercial CompaniesAero ClubsTotal
Number of flights8,6385,21713,8558,7545,36214,116
Hours flown6,0483,3879,4356,8683,72210,590
Miles flown700,638324,4551,025,093763,553375,0551,138,608
Passengers carried20,35510,68631,04122,79110,89533,686
Freight carried (tons)3,741193,7604,301234,324

Aerial Work Operations.—The Royal New Zealand Air Force undertook extensive trials in the dropping of fertilizer from the air in 1948 at the request of the Soil Conservation and Rivers Control Council, which was interested in aerial top-dressing as a means of improving hill pastures and checking and preventing soil erosion. As the R.N.Z.A.F. experiments were successful and showed the distinct possibilities of aerial top-dressing as a commercial proposition, interest among the farming community quickened, and private firms commenced operations in 1949 assisted by the knowledge and experience gained in the official trials. Spectacular progress has resulted since the commencement of commercial operations, and the number of firms engaged in aerial top-dressing has grown from 9 at the end of 1949 to 66 in March 1956. The number of aircraft has also shown a striking increase, from 12 aircraft in December 1949 to more than 300 in March 1956. To the end of March 1956 a total of 12,222,278 acres had been top-dressed from the air, a figure which shows that the importance of aerial top-dressing is appreciated by the farming community of New Zealand.

Although not as prominent as aerial top-dressing, other aerial work activities are rendering invaluable services to farmers and others. The dropping of rabbit poison, supplies, and fencing materials from the air, aerial seed sowing, spraying and dusting of crops and noxious weeds, are important phases of aerial work operations.

The dropping of supplies to deer cullers and fencing materials in remote areas showed an increase over last year's figures, the total weight dropped in 1955–56 being 421 tons as against 107 tons for the year ended 31 March 1955.

The progress of aerial activities connected with farming in this country was demonstrated at an International Agricultural Aviation Show, the first of its kind in the world, which was held on 9 and 10 November 1956 at Palmerston North. Here, before a crowd of more than 50,000 people, some 200 aircraft demonstrated the aerial farming techniques developed in this country.

A summary of aerial work operations for the year ended 31 March 1956 follows.

Top-dressing
  Hours flown79,747
  Fertilizer distributed (tons)404,933
  Area treated (acres)3,853,169
Seed sowing
  Hours flown580
  Seed sown (tons)353
Area treated (acres)50,832
Rabbit poisoning—
  Hours flown3,042
  Bait distributed (tons)4,617
Spraying—
  Hours flown1,505
  Weed-killer and insecticide distributed (gallons)374,811
Aerial photography and survey—
  Hours flown819

International Services.—In March-April 1954 broad proposals for the reorganization of the Pacific air services were announced. Tasman Empire Airways Ltd. is now owned equally by the New Zealand and Australian Governments, and was re-equipped with D.C. 6 pressurized land planes previously operated by British Commonwealth Pacific Airlines. These aircraft are based in New Zealand, and the company uses the land-based aircraft to replace the previous flying-boats in services to Australia and to Fiji.

The services formerly carried out by British Commonwealth Pacific Airlines between Australia and North America were taken over by Australia and integrated with the Kangaroo services now operated by Qantas Empire Airways, which continues in partnership with British Overseas Airways Corporation on the Kangaroo route; New Zealand withdrew from the British Commonwealth Pacific Airlines, which was then wound up.

Tasman Empire Airways Ltd.—An air service from Australia to New Zealand across the Tasman Sea is the last stage of an air route from the United Kingdom to New Zealand. The first survey of this route was undertaken by Imperial Airways Ltd., of London, in 1937. Subsequently a company known as Tasman Empire Airways Ltd. was formed to operate a proposed trans-Tasman air service. The share capital was subscribed by the Governments of the United Kingdom, Australia, and New Zealand, the share proportions being 20, 30, and 50 per cent respectively. Later it became equally owned by Australia and New Zealand.

On 30 April 1940 the Auckland–Sydney service commenced. In June 1950 the company took over from New Zealand National Airways Corporation the Auckland-Suva service. The Wellington-Sydney service was inaugurated on 3 October 1950 and the Christchurch-Melbourne service on 28 June 1951. With the withdrawal of the Short Solent flying boats from the trans-Tasman routes, the Wellington–Sydney service was discontinued in June 1954 and a new service from Christchurch to Sydney using the Douglas D.C. 6's was commenced in the following month. The same type of aircraft were also employed on the Auckland–Fiji route as from June 1954.

The Coral Route to Tahiti via Suva and Aitutaki was inaugurated in December 1951 with a frequency of one return trip monthly. This was increased to one return trip fortnightly in May 1952. In October 1952 Apia in Western Samoa was added to the route, and in August 1953 a service to Tonga was inaugurated. Short Solent flying boats are still used on this route, which now commences in Fiji. The service to Norfolk Island, formerly conducted by the New Zealand National Airways Corporation, was taken over by Tasman Empire Airways Ltd., from 1 November 1955. Aircraft used are D.C. 4's chartered from Qantas Empire Airways Ltd.

The following routes were operating at 31 August 1956.

Route No.Route
1Auckland–Sydney
2Christchurch–Sydney
3Christchurch–Melbourne
4Auckland–Nandi
5Auckland–Suva
6Suva–Papeete, via Apia, Aitutaki
7Suva–Tonga
8Auckland–Norfolk Island
1,3365 return trips weekly.
1,3242 return trips weekly.
1,5021 return trip weekly.
1,3301 return trip weekly.
1,3101 return trip weekly.
2,2233 return trips monthly, plus 1 return trip monthly Suva–Apia.
4801 return trip monthly.
6622 return trips monthly.

Revenue traffic statistics for the years ended 31 March 1955 and 31 March 1956 are given below.

Item1954–551955–56
Hours flown7,7127,716
Miles flown1,733,2221,851,522
Passengers43,57549,389
Passenger-miles59,024,84366,247,291
Available seat-miles77,514,23485,441,343
Passenger load factor (per cent)76.1477.53
Cargo (lb.)—
  Freight753,137895,929
  Excess baggage115,846120,413
  Mail809,599796,520
Ton miles flown—
  Passenger5,530,1556,087,118
  Excess baggage70,81072,124
  Freight456,294527,002
  Mail486,551474,788
      Total ton-miles6,543,8107,161,032
Available capacity ton-miles8,779,1489,497,792
Overall load factor (per cent)74.5475.40

The following is a summary of traffic statistics for Tasman Empire Airways Ltd. for the last five years, and includes services flown by other airlines under charter to the company.

Year Ended 31 MarchHours FlownMiles FlownPassengersFreight*MailPassenger-milesFreight Ton-milesMail Ton-miles

* Includes excess baggage.

† Includes excess baggage ton-miles.

19529,7381,817,54742,3011,675,447665,20658,037,2771,008,468403,323
19539,4861,790,71236,898620,252728,48554,845,653381,516448,217
19549,0831,683,45135,910719,959778,07350,735,687448,848480,364
19557,7121,733,22243,575868,983809,59959,024,843527,104486,551
19567,7161,851,52249,3891,016,243796,49966,247,291671,025531,763

New Zealand National Airways Corporation.—The Corporation has now withdrawn completely from the field of international civil aviation. The service to Norfolk Island which it formerly conducted was taken over by Tasman Empire Airways Ltd. from 1 November 1955.

Revenue traffic statistics for this route for the year ended 31 March 1955 and for the six months ended 30 September 1955, the date when the Corporation terminated this service, are as follows.

Item1954–551 April–30 September 1955
Hours flown668281
Miles flown103,11643,626
Passengers1,925774
Passenger-miles1,272,425511,614
Available seat-miles1,606,484661,661
Passenger load factor (per cent)79.2177.32
Cargo (lb.)—
  Freight67,73830,261
  Excess baggage.2,6231,128
  Mail4,2351,740
Ton-miles flown—
  Passenger111,23345,137
  Excess baggage773319
  Freight20,1108,928
  Mail1,231514
      Total ton-miles flown133,34754,898
Available capacity ton-miles157,42563,865
Overall load factor (per cent)84.7185.95

Pan American World Airways, Inc.—The service between San Francisco and Auckland via Honolulu, Kingman Reef, and Pago Pago was commenced by Pan American Airways after a survey flight from Honolulu to Auckland in December 1937, but was discontinued after an accident to a Clipper aircraft on 11 January 1938. The service was resumed in 1940 on a reduced schedule, the first flight terminating at Auckland on 18 July 1940. Operations ceased in December 1941 after the outbreak of hostilities with Japan.

This organization recommenced services in the Pacific on 6 June 1946 over the route Auckland – San Francisco (via Fiji, Canton Island, and Honolulu). Aircraft employed at present between Auckland and Fiji are Douglas D.C. 4's, while. Boeing Stratocruisers are used on the remainder of the route. The frequency is three return trips weekly.

Canadian Pacific Air Lines.—Under the terms of the Air Transport Agreement of 1950 between New Zealand and Canada, Canadian Pacific Air Lines was selected as the Canadian airline to operate across the Pacific to New Zealand. Canadian Pacific Air Lines originally intended to commence operations to New Zealand in January 1951 but, as many of its aircraft were participating in the transport under charter of military personnel and cargo to the United Nations forces in Korea at the time, the service was not actually commenced until January 1952. The route at present followed is Vancouver – Honolulu – Nandi (Fiji) – Auckland. Canadian Pacific Air Lines use Douglas D.C. 6B aircraft on the route. The frequency is one return trip weekly.

Total Traffic Statistics for Overseas Airlines (C.P.A.L. and P.A.W.A.).—Total traffic statistics for Canadian Pacific Air lines and Pan American World Airways to and from New Zealand for the year ended 31 March 1956, together with the total for 1954–55, are given below.

Year Ended March 1956Total 1955–56Total 1954–55
C.P.A.L.P.A.W.A.
Hours flown3,4369,09512,5319,662
Miles flown892,0202,045,4002,937,4202,307,072
Traffic entering New Zealand—
  Passengers9112,1593,0702,716
  Freight (lb.)76,265257,813334,078235,312
  Mail (lb.)4,56073,51278,07229,708
Traffic leaving New Zealand—
  Passengers9401,8412,7812,249
  Freight (lb.)13,880172,069185,949264,820
  Mail (lb.)4,1028,61112,7139,140

Entrances and Clearances of Aircraft in the Overseas Trade.—The following figures supplied by the Customs Department give the number of aircraft entering New Zealand classified by the countries from which they arrived, and aircraft departing by the countries to which they departed, during the calendar years 1955 and 1956. Air freight carried is also shown for the same years.

Country from Which Arrived or to Which DepartedEntrancesClearances
NumberAir Freight (lb.)NumberAir Freight (lb.)
19551956195519561955195619551956
Canada505485,373117,033515111,94818,228
Fiji11812692,20293,35912611965,64568,716
Norfolk Island613619,61745,029604048,14447,475
Australia544517611,886598,847548496169,400175,166
Netherlands        
United States of America145158261,663279,397127159148,383178,016
New Caledonia    11  
      Totals9188911,070,7411,133,665913866443,520487,601

AERO CLUBS.—Practical interest in aviation was greatly stimulated by the first trans-Tasman flight of Kingsford-Smith and Ulm in 1928, and to this flight the aero-club movement largely owes its inception. The steady progress made by the movement has been in a great measure due to the scheme initiated by the Government of subsidizing a limited number of light aeroplane clubs. This subsidy (abolished from 31 March 1937) took the form of the loan of light aircraft and payments to clubs on account of pupils qualifying for their “A” flying licences, and for male pilots renewing their licences. The payment of subsidy was discontinued on the institution of the Civil Reserve scheme, by which the Government entered into an agreement with approved clubs for the training of civil reservists and Air Force candidates. On the outbreak of war in September 1939 the Government took over all aircraft suitable for training purposes, so that training operations of the clubs had to be suspended in most cases. The remaining clubs continued operations until December 1941, when, after the Japanese entry into the war, all civil flying with the exception of commercial scheduled services was prohibited under Proclamation issued by the Governor-General. This prohibition was lifted on 24 December 1945. After the cessation of hostilities an immediate resumption of club activities was not possible because of non-availability of accommodation at aerodromes and the shortage of qualified instructors. However, by 31 March 1946 there were four clubs again in operation, the number rising in later years, and in March 1956, 26 aero clubs were affiliated to the Royal New Zealand Aero Club.

The aircraft which had been purchased from the aero clubs by the Government at the outbreak of war were resold to the clubs to facilitate an early resumption of their activities. In addition, a number of Tiger Moths was presented free to the aero clubs by the Government. Assistance was also given to the clubs through the Air Training Corps flying training plan. This plan, which was inaugurated in 1947, provided for training by the clubs of selected Air Training Corps cadets, and Government subsidies were paid in connection therewith.

Also the aero clubs undertook the responsibility of providing annual refresher courses for R.N.Z.A.F. Active Reserve instructors, for which payment was made by the Government. The additional revenue received by the clubs for Air Training Corps and other instruction for the year ended 31 March 1955 amounted to £26,924.

As from 1 April 1955 a new scheme of financial assistance to aero clubs has been in operation. Under the new scheme a student pilot can qualify for his private pilot licence at a cost of between £40 and £60, compared with a previous cost of between £80 and £120. In respect of pilots trained and qualifying for a private pilot licence, the Government refunds to the pilot himself one-half of the cost of training up to an assessed standard rate of £3 per hour, with a maximum of £60. The club receives a subsidy of one-quarter of the cost of training, with a maximum of £30. In addition a payment of 7s. 6d. an hour flown on training and solo hire is made to clubs, as well as an incentive payment of 5s. an hour for all training and solo hire hours in excess of a yearly average of 200 per aircraft.

The Government has approved the scheme for a period of two or three years, by which time it is considered that the clubs should be able to carry on should State assistance be reduced or withdrawn.

The next table gives a summary of the training activities of aero clubs for the last five years.

Year Ended 31 MarchClubs OperatingMembershipAircraft in UseHours FlownAb Initio Pupils Under Training
AssociateFlyingDualSolo
1952213,3292,517756,02514,757392
1953233,2042,359846,15016,328505
1954223,0452,338756,27715,899569
1955233,2122,431836,89016,770756
1956263,1963,3621089,09520,864894

LICENCES.—A summary of licences and certificates current at 31 March 1956 is given below.

Year Ended 31 MarchClubs Operating
Number at 31 March 1956
Flight Crew (I.C.A.O.) Type—
Pilot Licences—
  Student Pilot1,305
  Private Pilot788
  Commercial Pilot449
  Senior Commercial Pilot2
  Airline Transport Pilot124
Pilot Licence Ratings—
  Instructor153
  Instrument198
Navigator Licences—
  Flight Navigator40
Licences to Operate Radio Equipment in Aircraft—
  Flight Radio Operator13
  Flight Radio Telephone Operator193
  Restricted Flight Radio Operator95
Flight Engineer Licences—
  Flight Engineer15
Other Licences, Certificates, etc.—
  Aircraft Maintenance Engineer Licences275
Aircraft—
  Certificates of Registration604
  Certificates of Airworthiness502
Aerodromes—
  Public Licences74
Air Service Certificates35

METEOROLOGICAL FACILITIES.—The provision of meteorological information for the use of civil and military aircraft operating within New Zealand or on trans-ocean routes in the Southwest Pacific region is one of the functions of the New Zealand Meteorological Service. The head office and general forecast office are located at Wellington, and branch forecasting offices are maintained principally for aviation purposes at Nandi (Fiji), Auckland, Ohakea, Paraparaumu, Christchurch, and Taieri (Dunedin).

Weather reports are collected by telegraph and radio at three-hourly or six-hourly intervals from approximately 110 stations within New Zealand and 40 on islands of the South-west Pacific. Most of the reports are prepared by airfield, telegraph, or lighthouse officials. Twenty airfields report hourly. In addition, routine measurements of the temperature and humidity in the upper atmosphere are made by balloon-borne radiosondes released from six stations, and radar tracking of balloons is employed for wind measurement at six stations. The collected reports are broadcast from Wellington and Nandi for the benefit of neighbouring Services. Similar information is received from Australia and other Pacific administrations.

Forecasting and other services for aviation are provided in accordance with recognized international procedures and agreements. Detailed written forecasts are made available to all scheduled commercial aircraft and supplemented where possible by personal discussion.

Pilots operating from airfields not staffed by meteorological personnel may obtain forecasts and other information by telephone.

AIR MAILS: Inland.—From 1920 onwards various attempts were made to operate air-mail services, but it was not until the inauguration of a service between Hokitika and South Westland in January 1934 that a service of any permanency was established. On 16 March 1936 the first regular air-mail services linking up the larger centres of population were established between Palmerston North and Dunedin, and between Nelson, Blenheim, and Wellington. As air services increased in frequency and extent the air-mail facilities were correspondingly expanded. The present network extends from Kaitaia to Invercargill.

The rate of postage for inland air-mail correspondence was originally 2d. per ounce, but from October 1939 to 29 February 1952 it was 3d. per half-ounce, and from 1 March 1952 to 31 August 1955, 4d. per half-ounce. From 1 September 1955 the rate was 4d. for the first half-ounce and 2d. each additional half-ounce, but has reverted to 4d. for each half-ounce since 1 November 1956. For parcels up to 28 lb. the rates range from 2s. 6d. to 15s.

The numbers of letters and parcels carried by air in New Zealand during the years 1945–46 to 1955–56 arc shown hereunder.

Year Ended 31 MarchLettersParcels

* Abnormal increase due to interruption of surface connections owing to industrial dispute.

19467,968,92032,204
194711,368,00048,298
194813,008,08065,205
194913,542,72077,607
195013,839,60091,226
195114,206,00099,575
195219,089,800*217,726*
195314,577,960150,680
195414,590,360151,222
195518,981,400168,521
195620,676,560167,486

Overseas: Trans-Tasman Air Services.—The first flight of the regular trans-Tasman service linking Auckland and Sydney took place on 30 April 1940, connection being made at Sydney with the Empire service to London. A service between Wellington and Sydney was commenced on 3 October 1950, and continued until 25 June 1954, when it was replaced by a service from Christchurch to Sydney, the first flight in this service being made on 28 June 1954. Direct flights between Christchurch and Melbourne were commenced on 28 June 1951. In normal weeks there are now seven to nine flights weekly between New Zealand and Australia.

New Zealand – United Kingdom Air Service.—The Empire service had been extended to Sydney in December 1934 but, until the establishment of the direct air link across the Tasman in April 1940, it was necessary for air mails to be forwarded by sea from New Zealand to Sydney. In June 1940 the through service from New Zealand to London was interrupted with the entry of Italy into the war, and it was necessary for air correspondence from New Zealand for the United Kingdom to be forwarded by air via Egypt to South Africa, and thence by sea to destination. Following the entry of Japan into the war the service beyond Australia was totally interrupted in March 1942, and it was not until 30 June 1944 that the through service from Australia to the United Kingdom was restored. The service is now operating six times weekly between Sydney and London, the transit time New Zealand to the United Kingdom being normally four to six days.

Trans-Pacific Services.—The trans-Pacific service operating between New Zealand and North America commenced on 20 July 1940, the route followed being via Noumea, Suva, Canton Island, and Honolulu. This service, which was operated by Pan American Airways, ceased on the entry of Japan into the war in December 1941, and it was not until 20 September 1945 that arrangements of a temporary nature were made for the resumption of the conveyance of civilian air-mail correspondence for North America by the Royal Air Force Transport Command service, the route followed being via Suva, Canton Island, and Honolulu. The Royal Air Force Transport Command service ceased on 18 December 1945. The Pan American air service was recommenced on 6 June 1946, and is now on a regular twice-weekly schedule, the route being via Suva, Canton Island, and Honolulu to San Francisco. On 25 April 1947 British Commonwealth Pacific Airlines commenced a direct service from Auckland to Vancouver, via Suva, Honolulu, and San Francisco, the service being a fortnightly one. In February 1949 the frequency was increased to once weekly. The service operated by British Commonwealth Pacific Airlines was taken over in April 1954 by Qantas, operating from Sydney to San Francisco. Connections with Qantas are made twice weekly at Nandi (Fiji) by Tasman Empire Airways planes from Auckland. A service between Auckland and Vancouver by Canadian Pacific Air Lines was commenced on 2 February 1952.

Regional Pacific Services.—Services from New Zealand to Norfolk Island, Fiji, Tonga, Samoa, and the Cook Islands operated by the R.N.Z.A.F. in the immediate post-war period were placed under the control of the National Airways Corporation on 1 November 1947. Tasman Empire Airways subsequently took over the Auckland–Fiji service on 6 November 1950, and on 27 December 1951 extended this service to Aitutaki (Cook Islands) and Papeete (French Oceania). On 14 October 1952 Tasman Empire Airways replaced the National Airways Corporation services to Apia (Samoa), and an extension to Tonga was made in August 1953. From 1 March 1955 Tasman Empire Airways took over the service to Norfolk Island, thus finally replacing the National Airways Corporation overseas services to the Pacific and controlling all New Zealand operated overseas flights.

Chapter 16. SECTION 16—POSTAL AND TELEGRAPHIC

Table of Contents

POSTAL BUSINESS.—At 31 March 1956 there were 1,437 post offices in New Zealand. In addition, there were 303 offices at which telephone business only was transacted.

The following table shows the numbers of articles posted during the years ended 31 March 1952 to 1956.

Million

Year Ended 31 MarchLetters, Lettercards, and PostcardsAccounts, Circulars, Newspapers, Packets, etc.ParcelsTotal Articles Posted
1952174.6164.87.3346.7
1953176.9173.67.1357.6
1954173.5179.46.4359.3
1955180.1199.86.5386.4
1956187.5213.76.8408.0

Compared with the year ended 31 March 1955, letters, lettercards, and postcards posted during the year ended 31 March 1956 showed an increase of 7.4 million (4 per cent); and accounts, circulars, etc., an increase of 13.9 million (7 per cent). Parcel postings increased by 376,000 during the year.

The average numbers of letters, etc., posted in New Zealand per head of population during the year ended 31 March 1956 were: letters, lettercards, and postcards, 86; accounts, circulars, newspapers, packets, etc., 98; parcels, 3.2.

During the 1955–56 year, 516,914 lb. of letters and 167,486 parcels were posted by inland air mails, and 188,533 lb. of letters and 21,766 lb. of parcels were posted by overseas air mail.

RURAL MAIL DELIVERY.—The rural-mail-delivery system was instituted in New Zealand about 1900, but, as the boxholders were generally called upon to meet part of the cost, development was slow until 1922. In that year the system was altered and a fee was introduced, the rates being 10s. per annum for a delivery of thrice weekly or less and £1 per annum for a greater frequency. The system showed gradual development until 1947, when a review of postal facilities in rural areas was commenced which resulted in a considerable increase in the number of boxholders. The growth of this scheme can be gauged from the following figures: 1921, 8,700; 1940, 32,382; 1947, 40,689; and in March 1956, 65,814 boxholders.

The rural delivery system enables country settlers to obtain postal notes, money orders, and stamps, to register correspondence, and to collect or post their mail in boxes at or near their gates. The deliveries are generally performed by contractors who handle the mail in conjunction with the carriage of goods, and thus the rural-mail delivery is in many areas the medium by which settlers obtain their newspapers, bread, parcels, etc.

AIR-MAIL SERVICE.—Details of the New Zealand air-mail service are given at the end of the preceding Section.

OVERSEAS PARCEL-POST.—Particulars of overseas parcels received and despatched in each of the years 1952 to 1956 are contained in the following table.

YearOverseas Parcels ReceivedOverseas Parcels Despatched
NumberWeightCustoms DutyNumberWeight
  lb.£ lb.
1952393,9603,104,5031,079,971489,7544,647,374
1953354,1383,010,673616,254439,7143,720,098
1954424,4833,926,468780,170240,6972,090,128
1955485,6164,370,5441,023,734166,0491,286,324
1956479,8414,318,5691,082,136147,1651,144,636

NEWSPAPERS.—In March 1956 there were 298 publications on the Post Office Register of Newspapers. Of these 42 are published daily, 10 being morning papers and 32 evening papers. Ten appear three times per week, 18 twice per week, 74 weekly, 24 fortnightly, 12 (monthly, and 4 at irregular intervals.

MONEY-ORDER AND POSTAL-NOTE SERVICES.—Details of these services are given below.

Money-orders.—New Zealand has reciprocal money-order agreements with all British Commonwealth countries and also with the United States of America, the Republic of Ireland, and Tonga. Money-orders may also be issued in New Zealand for payment in any other country with which the United Kingdom has exchanges of money-orders.

For payment within New Zealand the maximum amount for a single order is £100, but there is no limit to the amount which may be remitted. The commission is computed on each individual order. Commission on inland money-orders is 7d. for the first £10 and 3d. for each additional £5 or part thereof.

A money-order may be transmitted by telegraph for the additional telegraph charge of 1s. 9d.

For money-orders issued for payment overseas there is a limit for most countries of £40 for a single order, but for some countries the limit is £10. There are two special rates of commission, one rate applying to Australia (and countries advised through Australia), Fiji, Norfolk Island, and Tonga, and the other rate to all other countries.

During 1955, 1,336,541 money-orders were issued in New Zealand for a total of £25,460,852, and of that total 73,211 orders of a value of £363,176 were issued for payment overseas.

Money-orders issued overseas for payment in New Zealand in 1955 numbered 24,307 and totalled in value £125,608.

The analysis of the overseas money-order business for 1955 is given below.

Country of Issue or PaymentOrders Issued in New Zealand for Payment OverseasOrders Issued Overseas for Payment in New Zealand
NumberValueNumberValue

* No service to New Zealand.

  £ £
United Kingdom29,510218,3987,43958,950
Australia38,10291,56610,65426,664
Canada2108751,0334,512
Ceylon10701714
Fiji95318,4791,5345,529
Hong Kong1231,84710161
India1,22111,154409624
Republic of Ireland1,26613,72793721
Norfolk Island805333304,900
Pakistan38569**
South Africa3352,1323221,851
United States of America1,2953,4801,5968,289
Tonga6834687013,393
      Totals73,211363,17624,307125,608

The following table gives particulars of all money-orders issued and paid during each of the years specified.

Year Ended 31 DecemberNumber of Offices at End of YearMoney-orders IssuedMoney-orders Paid
NumberValueCommissionNumberValue
 ££ £
19519731,026,51012,680,89836,544987,39612,550,991
19529721,090,86214,373,89139,5561,055,77214,283,987
19539701,136,34914,666,63841,9031,089,69914,475,814
19549801,235,97020,586,84845,8681,180,33220,273,271
19559851,336,54125,460,85249,7251,269,97225,116,062

Postal Notes.—Postal notes in thirty-nine denominations ranging from 1s. to 20s. are issued in New Zealand for payment within New Zealand, Niue, the Cook Islands, and Western Samoa. The poundage payable is as follows: 1s. to 2s. 6d., 2d.; 3s. to 7s. 6d., 3d.; 8s. to 15s., 4d.; and 15s. 6d. to 20s., 5d.

Postal notes are negotiable, and their period of validity is unlimited. They are, therefore, a popular medium for making small inland remittances by post, and during the year ended 31 March 1956, 2,333,998 postal notes valued at £1,122,645 were purchased by the public.

Information regarding the issue and payment of postal notes is given below.

Year Ended 31 MarchNumber of Offices at End of YearPostal Notes IssuedPostal Notes Paid
NumberValue*CommissionNumberValue

* Value figures are inclusive of commission shown in next column.

 ££ £
19521,1262,349,8901,115,56435,6642,337,9821,075,228
19531,1182,297,2391,101,00435,1992,287,9081,066,761
19541,1052,230,1671,080,07634,5172,226,7291,044,959
19551,1182,277,7501,100,80635,0922,257,9781,058,380
19561,1152,333,9981,122,64535,8712,322,7361,086,215

British Postal Orders.—These are both issued and paid in New Zealand. Denominations sold in this country are 6d., 1s., 1s. 6d., 2s., 2s. 6d., 3s., 5s., 10s., 15s., and 20s. The commission payable ranges from 2d. to 6d.

As these orders are payable in several British Commonwealth countries they are a popular medium for making small postal remittances to overseas countries, particularly the United Kingdom.

During the year ended 31 March 1956 the Post Office sold 398,257 British postal orders valued at £290,481, and paid 52,557 orders valued at £45,210.

TELEGRAPH AND TELEPHONE SERVICES.—Up to 31 March 1956 a total sum of £45,021,456 had been expended on telegraph construction, including the construction of telephone exchanges. The amount expended during the financial year 1955–56 was £5,127,477.

During the year ended 31 March 1956 the revenue from telegrams and toll communications was £5,104,865, of which £786,232 represented ordinary telegrams, £112,043 press telegrams, and £4,206,590 toll communications. To these figures should be added £6,489,717 revenue of telephone exchanges and £258,869 miscellaneous receipts, making a total telegraph and telephone revenue of £11,853,451.

The handling time of telegrams is approximately the same as last year, but delivery, especially in the larger cities, continues to have its problems because of the difficulties in the recruitment of staff for this work. To meet these difficulties the telephoning of telegrams was resorted to some years ago. The system provides also for the phoning in of telegrams for despatch. In 1946, 15 per cent of telegrams were phoned to addressees, the percentage now being 35. In 1946 subscribers phoned in 28 per cent of the telegrams sent, while the present percentage is 44.

Details of telegraph and telephone services for each of the last five financial years are now given.

Year Ended 31 MarchNumber of Paid Telegrams and Toll Messages Forwarded During the YearRevenue (Including Miscellaneous Receipts)Total Value of Business
Telegraph and TollTelephone Exchange
 Million£££
195236.03,789,9803,766,0437,556,023
195336.93,980,4354,061,2458,041,680
195438.84,532,7374,820,3959,353,132
195542.05,115,8476,066,83711,182,684
195644.75,314,6516,538,80011,853,451

The number of telegrams forwarded in 1955–56 was 8.1 million, while the number of toll communications at 36.5 million showed an increase of 2.5 million.

The charge for ordinary telegrams on week-days is 1s. 2d. for six words or less, and 1d. for each additional word. The charge for letter-telegrams, which are delivered by post on the morning following the day of lodgment, is a flat rate of 1s. 6d. for twenty-two words, and 1d. for each additional two words. On Sundays and departmental holidays the rate for ordinary telegrams is 1s. 9d. for six words or less, and 1½d. for each additional word, the total charge being taken to the next penny where necessary. An additional charge of 9d. is made for an urgent telegram, irrespective of the number of words contained in the message.

TELEPHONE-EXCHANGE SERVICE.—At 31 March 1956 there were 411 telephone exchanges in New Zealand, serving a total of 534,501 connections. Of these exchanges 322 were manually operated, serving 205,296 connections, or 38 per cent of the total, and 89 were automatic, serving 329,205 connections, or 62 per cent of the total.

The following table indicates the growth of the New Zealand telephone-exchange service (the figures are as at 31 March of each year shown).

194819491950195119521953195419551956

* Represents separate instruments connected to main telephone system.

Exchanges350356358364371381397405411
Subscribers' main stations219,185234,874253,458268,365285,171307,453330,825359,674386,732
Service stations3,3193,4183,5763,5703,5333,5963,7553,6873,713
Toll stations1,8361,8271,7841,7651,7191,6911,6591,6331,605
Public call stations1,5501,6401,8021,9582,0852,2232,3412,4502,545
Extension stations70,66276,83283,80490,53698,239106,591114,193125,463136,658
Private telephone lines4,0004,1664,1153,7953,8193,6323,5163,3863,248
    Telephone station totals*300,552322,757348,539369,989394,566425,186456,289496,293534,501
Number installed during year17,88321,06724,80624,11126,53633,56036,15542,73841,011
Number of waiting applicants41,29248,37855,30958,48458,34854,94643,30333,34433,862

The total number of telephone stations shows an increase of 233,949, or 78 per cent, during the period covered by the table, the net gain for each of the last five years being, 24,577, 30,620, 31,103, 40,004, and 38,308 respectively. The increase in subscribers' main stations during the same period amounted to 167,547, or approximately 76 per cent, while extension stations show an increase of 65,996, or a little over 93 per cent.

The “party” line system of telephone service is extensively used, particularly by those whose premises are situated at a distance from an exchange. In March 1956 the number of “party” lines was 47,694, serving a total of 169,402 stations.

According to the latest comparative data available (January 1955), compiled by the Chief Statistician of the American Telephone and Telegraph Co., New Zealand ranks fourth in the number of telephones per 100 of population, the leading countries being the United States of America (32.2), Sweden (28.9), Canada (25.0), New Zealand (23.2), Switzerland (23.0), and Denmark (19.4).

The first public call stations (coin-in-the-slot telephones) erected in New Zealand were installed at Wellington in August 1910, and a total of 2,190 such instruments were in use at 31 March 1956. The revenue of these slot telephones during the year ended 31 March 1956 was £155,410. In addition, there are 355 multi-coin slot telephones in use, the first of which was installed at Christchurch in October 1938. These instruments take penny, sixpenny, and shilling coins, and are used for effecting both local and toll calls.

The capital expenditure on the equipment, etc., of the telephone exchanges up to 31 March 1956 was £36,822,593.

The following table shows the classification of telephone exchanges and the annual rental rates for different classes of connection.

Class of ExchangeClass of ConnectionAnnual Rate Within Base-rate Area
BusinessResidential
 £s.d.£s.d.
Special (Auckland, Wellington, Christchurch, Dunedin)Individual2910015100
 2-party221501326
 3-party20261250
 4-party1710011100
Class I (Over 3,000 subscribers)Individual230013100
  (Typical exchanges are Gisborne, Hamilton, Napier, New Plymouth, and Invercargill)2-party1712611150
 3-party16761150
 4-party152610150
 5-party1250976
 6–10-party1126876
Class II (2,001 to 3,000 subscribers)Individual1917612100
  (Typical exchanges are Hawera, Oamaru, and Ashburton2-party1517610150
 3-party141261050
 4-party13769150
 5-party11508100
 6–10 party10767126
Class III (1,001 to 2,000 subscribers)Individual181261200
  (Typical exchanges are Cambridge, Marton, and Waimate)2-party15501050
 3-party14009150
 4-party12150950
 5-party10176826
 6–10 party10267100
Class IV (201 to 1,000 subscribers with continuous attendance)Individual177611100
 2-party141509150
  (Typical exchanges are Piopio, Waipawa, Waverley, and Picton)3-party13100950
 4-party12508150
 5-party10767150
 6–10 party9176750
Class V (Up to 1,000 subscribers with restricted attendance and automatic exchanges with less than 200 subscribers)Individual141261050
 2-party12008100
 3-party1176800
  (Typical exchanges are Akaroa, Kawhia, Te, Akau, and Waitotara4-party101767100
 5-party9266126
 6–10 party8126626

For stations located outside the boundary of the base-rate area of an exchange a mileage rate as indicated below is added to the general base-rate-area rental, depending on the distance by line measurement from the base-rate boundary to the respective subscriber's station.

 £s.d. 
Individual line0176a furlong or part thereof.
2-party line—each party089a furlong or part thereof.
3-party line—each party0510a furlong or part thereof.
4-party line—each party040a furlong or part thereof.
5-party line—each party150a mile for the first 3 miles; 10s. a mile thereafter up to and including 20 miles; 6s. 3d. a mile thereafter.
6 to 10 party line—each party100a mile for the first 3 miles; 10s. a mile thereafter up to and including 20 miles; 6s. 3d. a mile thereafter.

Rural line telephone service is provided at all exchanges except those in the special class. This service provides for a minimum of 5 subscribers and a maximum of 10 subscribers on any one line. In general, subscribers connected on rural lines reside beyond the boundary of the basic-rate area.

Annual rental charges for rural line stations vary according to the number of subscribers on the line and the distance of the subscribers from the exchange.

TOLL SERVICE.—The basic rates for toll calls are as follows:

  1. Ordinary calls.

    Each 3 Minutes or Fraction ThereofBetween 8 a.m. and 6 p.m. on Week Days and Between 6 a.m. and Midnight on Sundays and Departmental HolidaysBetween Midnight and 8 a.m. and Between 6 p.m. and Midnight on Week Days and Between Midnight and 6 a.m. on Sundays and Departmental Holidays
     s.d.s.d.
    For distances under 30 miles—
      Up to and including 10 miles0404
      Over 10 miles but not over 15 miles0606
      Over 15 miles but not over 20 miles0808
      Over 20 miles but not over 30 miles010010
    For distances over 30 miles—
      Over 30 miles but not over 40 miles1414
      Over 40 miles but not over 60 miles1916
      Over 60 miles but not over 80 miles2319
      Over 80 miles but not over 100 miles2921
      Over 100 miles but not over 150 miles3628
      Over 150 miles but not over 200 miles4333
      Over 200 miles but not over 250 miles5340
      Over 250 miles but not over 300 miles5944
      Over 300 miles but not over 350 miles6349
      Over 350 miles but not over 400 miles6951
      Over 400 miles but not over 450 miles7356
      Over 450 miles79510
  2. For each minute exceeding the initial period of three minutes for distances over 30 miles the charge is one-third of the initial charge.

  3. In calculating the charge for each separate minute, fractions of 1d. are counted, but in the total charge fractions smaller than ½d. are excluded and fractions of ½d. or more are counted as 1d.

  4. The additional charge for an ordinary call exceeding three minutes in duration from telephones having coin boxes associated therewith in which charges for toll calls may be deposited is assessed in multiples of the respective initial charge for a three-minute call.

  5. Charge for an urgent call: double the rate for an ordinary call.

The toll network continues to expand. A major step towards increasing the number of circuits over the Auckland-Wellington route is well under way with the laying of the Auckland-Hamilton coaxial cable, which is capable of providing 960 telephone circuits. Exploratory tenders, to enable firm prices to be obtained, have been called for a microwave radio-relay system capable of providing 240 toll channels between Hamilton and Palmerston North, while preliminary planning is in hand for a coaxial cable, similar to the Auckland-Hamilton one, between Palmerston North and Wellington.

Toll facilities derived from the existing pole-line network were augmented during the year 1955–56 by the addition of a third 12-channel carrier telephone system on the Christchurch–Dunedin route, and 3-channel systems on the Hamilton–Paeroa, Hamilton–Taupo, and Dunedin–Ranfurly routes.

OVERSEAS CABLE SERVICES.—Telegraphic communication overseas was first established between New Zealand and Australia by means of the Eastern Extension Telegraph Company's cable from Wakapuaka (Nelson) to Sydney in 1876, this cable being duplicated in 1890. Subsequent developments were the opening in 1902 of the Pacific cable between Auckland and Canada via Norfolk Island, Suva, and Fanning Island, with a connection linking Norfolk Island to Brisbane; the laying of a cable direct between Auckland and Sydney in 1912; shifting of terminals from Wakapuaka to Wellington in 1917; laying a cable direct between Auckland and Suva in 1923, and duplicating the Suva–Canada cable in 1927. In 1929 a merger of British cable and wireless companies resulted in the overseas cable services being brought under the control of one authority (the private company of Cable and Wireless, Ltd., with headquarters in London), following which one cable between Wellington and Sydney was abandoned, part of it being lifted for re-use, and the route of the other was altered to terminate at Auckland instead of Wellington. One of the two direct Auckland-Sydney cables later became faulty and has not been repaired, leaving only one direct cable link between Auckland and Sydney. Following upon a conference of representatives of Commonwealth Governments (including New Zealand) held in London in 1945, the Commonwealth's external telecommunications systems were brought under Government control and, in accordance with the Commonwealth Telegraphs Agreement 1948, the New Zealand Post Office purchased the assets of Cable and Wireless, Ltd., in New Zealand, and took over the operation of the overseas cable services.

RADIO COMMUNICATION: Government Stations.—The first wireless-telegraph station in New Zealand for communicating with ships at sea was opened at Wellington on 26 July 1911.

An event of major importance in the development of New Zealand's external telecommunication services was the opening of the Himatangi radio transmitting station in November 1953 thus providing for direct New Zealand – United Kingdom radio-telephone and radio-telegraph circuits. The receiving station complementary to the Himatangi transmitting station is Makara Radio.

The principal stations under the control of the New Zealand Government are at Awarua, Wellington, and Auckland on the New Zealand mainland, at Rarotonga and Niue in the Cook Islands, and at the Chatham Islands. Smaller stations are established at certain lighthouses on the New Zealand coast and also on a number of adjacent islands. Marine radio beacons are operated at the lighthouses at Cape Reinga, Cuvier Island, Puysegur Point, Tiri Tiri Matangi, Mokohinau Island, Portland Island, Stephens Island, Baring Head, Cape Campbell, Godley Head, and Taiaroa Head, and are shortly to be established at East Cape, The Brothers Island, and Dog Island.

Communication is effected with outer islands in the Cook Group by Rarotonga-Radio through small feeder stations at Aitutaki, Atiu, Mangaia, Manihiki, Manuae, Mauke, Mitiaro, Nassau, Palmerston, Penrhyn, Pukapuka, and Rakahanga. Small stations at Aleipata, Atafu, Fagamalo, Sataua, Satupaitea, Fakaofo, Nukunono, Salailua, and Tuasivi communicate with Apia-Radio. Niue communicates with Apia-Radio, Rarotonga-Radio, and Wellington-Radio.

By means of the radio stations at Wellington, Apia, Rarotonga, and Niue, communication is maintained between New Zealand and the Pacific islands, the last three stations mentioned having direct communication with New Zealand. Wellington-Radio has also direct communication with Chatham Islands, Papeete (Tahiti), Nukualofa (Tonga), Noumea (New Caledonia), and Sydney.

Particulars of the radio business, exclusive of free (service) messages, transacted by the New Zealand coast stations during the last five years are given in the following table.

Year Ended 31 MarchForwardedReceived
MessagesWordsPost Office RevenueMessageWordsPost Office Revenue
 £ £
195236,667727,3357,34388,8831,769,12114,055
195339,632778,5398,43888,6621,655,69713,882
195439,558748,6719,92388,2571,609,14015,923
195541,002801,16610,34694,4801,775,25416,485
195646,067923,46711,240101,1601,976,96417,980

Facilities exist for the despatch of radio-telegrams to vessels at sea, and special rates operate for vessels registered in New Zealand.

Other Radio Services.—Telephone communication by radio is now available to fifty-five countries and the trans-Tasman vessel Monowai, as well as to Raoul Island, Chatham Islands, and Campbell Island. There has also been a remarkable expansion of the Post Office very-high-frequency radio-telephone service for mobile units first introduced in 1948. It is now operating in twenty-two centres for a total of 2,249 mobile units. Ambulance services, fire boards, traffic officers, taxi companies, veterinary services, and motor-transport companies are the principal users of the service. Radio-telephone services continue to provide essential service for isolated communities which cannot reasonably be reached by land-line—e.g., isolated settlers, alpine huts, etc. There is also a free radio-medical service for ships at sea and for lighthouses on the New Zealand coast for use in emergency cases.

Private Stations.—Private radio stations are governed by the New Zealand Radio Regulations 1953.

The licences for broadcast receiving stations (i.e., ordinary radio licences) authorize reception from broadcasting stations, and may be obtained at any postal money-order office on payment of the prescribed fee. Further reference to these licences will be found in Section 17, dealing with radio broadcasting.

Licences for amateur stations are intended to provide facilities for experimental transmission to those interested in radio science, and are issued only to holders of amateur operators' certificates.

Two radio manufacturing organizations and four colleges have been given authority to conduct experimental television transmissions for the purposes of studying the techniques involved and for investigating equipment developments in this new field of radio.

RECEIPTS AND PAYMENTS.—The receipts and payments of the Post and Telegraph Department for the last three financial years are now shown.

Receipts1953–541954–551955–56
£££

* Net figure—i.e. receipts less payments.

Postages4,645,4524,856,5945,233,613
Money-order and postal-note commission75,43079,84684,255
Private box and bag rents and rural-delivery fees131,038100,291130,537
Miscellaneous receipts1,962,0362,013,7302,162,703
Telegrams826,902875,589898,275
Tolls3,348,2793,894,8444,206,590
Telephone-exchange rentals4,557,4795,708,1476,086,003
Overseas telecommunications445,292466,267269,246*
      Totals£15,991,908£17,995,308£19,071,222
Payments1953–541954–551955–56
Salaries7,694,1248,585,4318,912,067
Conveyance of mails by sea and air681,635853,529804,675
Conveyance of mails by road426,059463,022480,519
Conveyance of mails by railway291,752337,500335,631
Maintenance and renewal of telecommunication system1,565,344927,634945,883
Motor services and workshops827,252741,0421,002,705
Miscellaneous3,471,2863,873,8164,559,132
Interest on capital liability1,183,7851,326,1031,524,307
Sick-benefit Fund17,62525,92727,556
Post Office buildings309,378319,576331,786
Superannuation Fund subsidy263,945288,624280,918
Overseas telecommunications219,239137,587 
 16,951,42417,879,79119,205,179
  Less transfers to Vote—Telegraph Extension1,373,1131,627,1431,976,714
      Totals£15,578,311£16,252,648£17,228,465

Receipts and payments for the last eleven years are shown by the following figures:

Year Ended 31 MarchReceipts £Payments £
19467,068,3976,478,956
19478,672,6407,374,561
19488,974,4488,956,316
19499,519,6529,877,525
19509,647,95010,491,851
195111,324,13711,186,126
195213,081,27613,850,574
195313,705,43314,766,186
195415,991,90815,578,311
195517,995,30816,252,648
195619,071,22217,228,465

WORK PERFORMED FOR OTHER DEPARTMENTS.—In addition to its natural functions, the Post and Telegraph Department performs a large amount of work for other Government Departments, its widespread organization being of inestimable value in this respect. Among the principal activities in this connection are the receipt and payment of moneys on behalf of the various Departments, the more important of which are enumerated below.

Receipts.—For the following Departments: Social Security (social security charge on income, social security charge on wages, sale of social security stamps), Agriculture (inspection fees, etc.), Education (child welfare receipts and examination fees, etc.), Health, Inland Revenue (land tax and income tax), Lands and Survey, National Roads Board (special mileage tax on motor vehicles), Public Trust Office. State Advances Corporation (State rents, loan and interest repayments), State Hydro-electric (Southland, Waimea, and Buller electric-power receipts), Transport, Tourist and Publicity (Mamaku, Atiamuri, Reporoa, and Ngongotaha power receipts), Valuation, New Zealand Broadcasting Service (radio licence fees and subscriptions to New Zealand Listener), Customs (collection of Customs duty and sales tax), National Provident Fund, and Government Superannuation Board.

Payments.—Departments of Social Security (social security benefits and war pensions, etc.), Health (refunds of medical expenses), Army, Air, Education (boarding-out orders), Labour (subsidized wage payments, military training medical examination payments, and holiday cards), Maori Affairs (Maori Trust payments), National Roads Board (refunds of duty on motor spirits), Public Trust Office, Police (witness warrants), Treasury (miscellaneous payments for other Departments), Ministry of Works, Government Superannuation Board, and for Reserve Bank (interest warrants and coupons).

Other services performed by the Post and Telegraph Department are the control of the licensing of, and the issue of licences in respect of, motor vehicles and radio apparatus, provision of advice and service on radio matters to the Marine Department and the Civil Aviation Administration of the Air Department, and provision of a fleet of motor vehicles in the larger centres for hire by other Departments. In the smaller centres Postmasters act as Registrars of Births, Deaths, and Marriages, Registrars of Electors, and agents for the Government Life Insurance Office, State Fire and Accident Insurance Office, and State Advances Corporation.

Other activities, not strictly departmental, include the receipt of Motor Vehicles Insurance (Third Party Risks) premiums under the Transport Act 1949, the issue of fishing and game licences on behalf of acclimatization societies, organizing and collecting investments in respect of national savings, organizing and selling health stamps, and collecting revenue for such outside bodies as the New Zealand Poultry Board, the New Zealand Trade Certification Board, and the Armed Forces Canteen Council.

STAFF.—The large volume and varied nature of the business of the Post and Telegraph Department entails the employment of a large staff. The Department is administered by the Postmaster-General and Minister of Telegraphs, with the Director-General as executive head. The staff at 31 March 1956 was as follows: Permanent, 14,354; temporary, 6,314; non-classified, 312; total, 20,980. In addition there were 953 country postmasters and telephonists who acted as such in conjunction with other pursuits and did not rank as officers of the Department. There were also 58 officers of the Railways Department who acted as postmasters.

VEHICLES.—The Post Office motor vehicles fleet consists of 2,162 vehicles—1,532 trucks and vans and 630 motor cars. Of this fleet, 402 vehicles are used for hire to other departments, 1,342 for engineering construction work, 94 on telegram delivery, and 324 on postal and other general work.

Chapter 17. SECTION 17—RADIO BROADCASTING

Table of Contents

NEW ZEALAND BROADCASTING SERVICE.—The Broadcasting Act of 1936 established the National Broadcasting Service as from 1 July 1936, and vested its control in a Minister of the Crown. All property, rights, liabilities, and engagements of the pre-existing controlling authority (the New Zealand Broadcasting Board) were transferred to the Crown. Details of the Board's activities and of the early history and development of radio broadcasting in New Zealand are given in the 1942 and earlier issues of the Year-Book.

The administration of the National Broadcasting Service was placed in the hands of a Director of Broadcasting, appointed by the Governor-General in Council to hold office for a period not exceeding three years. Permanent officers in the employ of the Board became officers of the Public Service as from 1 July 1936.

Section 9 of the Act allows for the appointment of an advisory body called the Broadcasting Advisory Council, to consist of not more than five members, to be appointed from time to time by the Governor-General on the recommendation of the Minister. Appointment to the Council is for a period of three years, except that members may be reappointed or removed from office by the Governor-General. No Advisory Council has however been appointed under this section.

The Broadcasting Act 1936 also authorized the Minister of Broadcasting to establish and operate commercial broadcasting stations from which advertising matter might be broadcast. For every locality that is served by a commercial station the Minister is required to provide an alternative service from at least one non-commercial station. Advertising over the air is forbidden except from the commercial stations authorized under the Act.

The Broadcasting Amendment Act 1937 made legislative provision for the establishment of a National Commercial Broadcasting Service. The administration of the Commercial Service, which in 1938 operated five stations, was placed in the hands of a Controller. Thus in 1938 there were two separate broadcasting organizations in New Zealand—the National Broadcasting Service under a Director, and the National Commercial Broadcasting Service under a Controller. This provision was repealed by section 4 of the Statutes Amendment Act 1943, the position of Controller was abolished, and from 26 August 1943 the two services were combined under a Director of Broadcasting. The Commercial Service was thus absorbed into the National Broadcasting Service.

In 1946 the title of the Department was changed to the New Zealand Broadcasting Service to give effect to the complete amalgamation of the two pre-existing authorities, which had in fact commenced prior to 1943 with the amalgamation of all technical resources under a Chief Engineer. Thus since 1946 there has been only one broadcasting organization, the New Zealand Broadcasting Service, controlling commercial and non-commercial broadcasting in New Zealand.

Stations and Programmes.—There were, at 31 October 1956, thirty medium-wave broadcasting stations and two short-wave transmitters of Radio New Zealand with eighteen assigned frequencies. Two of the medium-wave stations are privately owned (2XM and 4XD) and operate with the assistance of a subsidy from the Broadcasting Account, six are national advertising stations—marked “(a)” in the following list—and six are local stations carrying advertising up to ten hours daily, Monday to Saturday, the balance of programme time carrying no advertising—these stations are marked “(b)”, the complete list being given below.

StationAerial EnergyFrequency*Normal Hours of Transmission Per Week

* The frequencies used vary from time to time.

 KilowattsKilocyclesHr. min.
SHORT-WAVE STATIONS
ZL2 Wellington7.59,540115 35
ZL3 Wellington7.511,780115 35
ZL4 Wellington7.515,280115 35
ZL8 Wellington7.59,620115 35
ZL10 Wellington7.515,220115 35
StationAerial EnergyFrequency*Normal Hours of Transmission Per Week

* Operates during period when 2YA is broadcasting proceedings of the House of Representatives.

MEDIUM-WAVE STATIONS
1XN, Whangarei (b)2.0097071 0
1YA, Auckland10.00760121 20
1ZB, Auckland (a)10.001,070126 0
1YD, Auckland0.751,25048 0
1YC, Auckland10.0088034 30
1XH, Hamilton (a)2.001,310114 30
1YZ, Rotorua10.00800108 30
2XG, Gisborne (b)2.001,01071 0
2XM, Gisborne0.091,18016 30
2YZ, Napier5.00860108 30
2XP, New Plymouth (b)2.001,37071 0
2XA, Wanganui (b)2.001,20071 0
2ZA, Palmerston North (a)2.00940114 30
2YA, Wellington60.00570128 20
2YX, Wellington1.001,400*
2YC, Wellington60.0066042 0
2ZB, Wellington (a)10.00980126 0
2YD, Wellington0.501,13021 0
2XN, Nelson (b)2.001,34071 0
3YZ, Greymouth10.00920108 30
3YA, Christchurch10.00690121 20
3ZB, Christchurch (a)10.001,100126 0
3YC, Christchurch10.0096042 0
3XC, Timaru (b)2.001,16071 0
4YA, Dunedin10.00780121 20
4ZB, Dunedin (a)10.001,040126 0
4YC, Dunedin10.0090042 0
4XD, Dunedin0.061,43012 0
4YZ, Invercargill5.00720114 20
4ZA, Invercargill1.00820114 30

Station 2AP, Apia, is operated by New Zealand Broadcasting Service staff under secondment to the Broadcasting Department of the Government of Western Samoa. The New Zealand Broadcasting Service also acts in an advisory capacity in respect of broadcasting matters and arranges for the supply and maintenance of technical equipment in Western Samoa.

The aggregate transmission time of all stations—National, Commercial, and Short-wave—amounted during the year ended 31 March 1956 to 131,673 hours. Of the scheduled time, 22¾ hours were lost owing to technical defects in equipment.

At the request of the authorities responsible for the conservation of electric power, broadcasting after May 1950 was curtailed, but early in 1954 these restrictions were eased.

All programmes to be transmitted from the private broadcasting stations are supervised, and the Minister has authority to prohibit the broadcasting of any programme or part of a programme which in his opinion is unsuitable for broadcasting.

The programmes of the various stations are published in the New Zealand Listener, a weekly paper which was first issued on 30 June 1939.

Radio Coverage of New Zealand.—The call signs of the stations operated by the New Zealand Broadcasting Service and their functions in the programme coverage of New Zealand are as follows:

  1. Stations 1YA, 2YA, 3YA, 4YA, 1YZ, 2YZ, 3YZ, and 4YZ. These stations are operated to provide non-advertising programmes separately or in link to listeners throughout the whole country.

  2. Stations 1YC, 2YC, 3YC, 4YC, 1YD, 2YD, and 2YX provide alternate non-advertising programmes to the programmes of the YA and YZ stations listed in (a) above, but with coverage not quite so extensive.

  3. Stations 1ZB, 2ZB, 3ZB, 4ZB, 1XH, 2ZA, and 4ZA present advertising programmes mainly of a light nature, giving further alternative programmes to those provided by stations listed in (a) and (b) above.

  4. Stations 1XN, 2XG, 2XP, 2XA, 2XN, and 3XC. These are stations of local coverage in the smaller cities and towns and are designed to serve the immediate locality and present advertising and non-advertising programmes in specified time bands. Within their coverage range these stations provide alternative programmes to those provided by stations listed in (a), (b), and (c) above.

In addition, the overseas short-wave service of Radio New Zealand operates from ZL2, ZL3, ZL4, ZL8, and ZL10.

Television.—A departmental committee was set up in July 1949 by the Minister of Broadcasting to advise him on the development of television overseas and on the problems involved in the establishment of a television service in New Zealand. The Service continues to study closely the latest developments both in the technical and programme fields of overseas television organizations and the committee mentioned reports periodically to the Minister in this direction.

SHORT-WAVE SERVICE.—The service provided by Radio New Zealand is now well established, with a wide listening audience in Australia, the Pacific Islands, and even as far afield as Western Europe, the United States of America, and Japan.

Broadcasts by New Zealand artists are increasing in number each year. Features include the broadcasting of the National Orchestra, spoken material informing listeners of life in New Zealand—e.g., in such documentary programmes as “Felling the Timber”, “Big Game Fishing in the Bay of Islands”, etc., and the daily news service for New Zealand forces serving in Korea. A home service programme is rebroadcast from 6 a.m. to 7 p.m., and the special overseas transmission “Calling Australia and the Islands” follows. For the benefit of New Zealanders overseas, a full New Zealand summary of all sports results is broadcast each Saturday evening.

NATIONAL NON-COMMERCIAL SERVICE.—An analysis of the combined programmes of the National non-commercial stations for a sample week in February 1956 showed that, of the total broadcasting hours, 18.86 per cent was devoted to serious music; 42.56 per cent to light music; 3.58 per cent to modern dance music; 9.55 per cent to plays, sketches, and dramatic serials; 7.00 per cent to sporting commentaries; 6.71 per cent to talks, general and educative; 7.28 percent to news and commentaries; 1.99 per cent to church and devotional services; and 2.47 per cent to children's sessions.

The Service maintains a broad policy of broadcasting from the National stations programmes designed and classified to suit the major divisions of community taste. This policy is more easily applied in the four main centres, but, in the smaller centres where there is only a single station, the problem is more difficult. Every effort is made to solve it equitably and experiments are tried continually.

The practice is followed of giving broadcasting engagements to the best musical and other talent available in New Zealand. Throughout the year ended 31 March 1956 the Service engaged in the studios, or by relayed performance, bands, large choral groups, and similar societies.

The writing and production of dramatic and other special features in which local actors and actresses are employed arc carried out by the productions section of the New Zealand Broadcasting Service, and encouragement is being given to New Zealand writers.

The recording facilities are a valuable adjunct, and the studios are engaged daily in recording plays and programmes written by overseas and New Zealand authors, talks and news bulletins broadcast overseas which are rebroadcast in New Zealand at more convenient times, and historical events and other features.

The proceedings of the House of Representatives are broadcast from Station 2YA in order to acquaint the public with the provisions of the various Bills and the views of their representatives. During this time its scheduled programme is broadcast by 2YC, and 2YX takes over the scheduled programme of the latter.

Regular broadcasting programmes for schools are undertaken. The weekly schedule consists of three hours, and the following subjects are dealt with: music appreciation, singing, rhythm for juniors, literature, history through literature, nature study, book reviews, talks on news, social studies, and science, and French lessons for post-primary pupils. The Correspondence School of the Department of Education also broadcasts three half-hourly programmes per week. A programme “Kindergarten of the Air”, is broadcast for the benefit of pre-school children.

Time signals from the Seismological Observatory are broadcast through Station 2YA or 2YC each day. The signals take the form of a series of six “dots” at intervals of one second, the last “dot” being the exact minute. Fuller details of this time service may be obtained from the article on time service arrangements published in Section 44 (Miscellaneous) of this Year-Book.

The National Orchestra of the New Zealand Broadcasting Service was formed in 1946. Its concerts, studio broadcasts, tours, and free concerts to schools, are arranged and managed by the Concert Section of the Service, which also arranges for the presentation of overseas celebrity artists in public concerts associated with the National Orchestra, in concert tours without the Orchestra, and in studio broadcasts.

COMMERCIAL SERVICE.—Following the coming into operation of the Broadcasting Act 1936 the State purchased Station 1ZB, Auckland, which had previously operated as a “B” station, and commenced the broadcasting of programmes which included advertising matter. Commercial stations were subsequently established at Wellington, Christchurch, and Dunedin, all of which were opened in 1937, while a station at Palmerston North was opened in 1938. Station 1XH, Hamilton, was transferred to the status of a full-time commercial station on 2 November 1955. Station 4ZA, Invercargill, began transmission on 1 October 1956.

In January 1949 the first station to broadcast both commercial and non-commercial programmes was opened at Timaru. Similar stations now operate at Whangarei, Gisborne, Wanganui, Nelson, and New Plymouth.

The programmes of the Commercial stations contain a high percentage of entertainment, as compared with commercial announcements or direct advertising.

Sessions of informative value and services such as the broadcasting for missing persons and cars are provided in addition to the normal programmes.

FINANCIAL STATISTICS.—The following tables show the financial results of the principal activities of the Service for the last four financial years.

£

1952–531953–541954–551955–56

* Net deficit.

NOTE.—Minus sign (—) indicates an excess of expenditure over revenue.

Non-commercial Activities
National stations—
  Expenditure on programmes141,419159,496166,752166,312
  General administrative and running expenses514,164472,599503,827508,485
  Post and Telegraph charges for licence fee collection, etc.48,84651,39061,44160,946
  Depreciation99,277105,406115,433123,777
 803,706788,891847,453860,020
    Less recovery from Commercial for provision of technical facilities and services124,00078,02892,31698,141
  Net expenditure679,706710,863755,137761,879
  Revenue648,020680,096809,702808,756
  Balance of revenue over expenditure–31,686–30,76754,56546,877
National Orchestra and Concert presentation—
  Net expenditure100,754114,027110,509121,025
    Less Concert proceeds21,92427,79127,24338,735
      Balance of expenditure78,83086,23683,26682,290
New Zealand Listener—
  Expenditure on publication64,82368,20872,76175,479
  General administrative and running expenses26,52129,84331,29732,273
  Net expenditure91,34498,051104,058107,752
  Revenue93,66794,321100,353102,932
  Balance of revenue over expenditure2,323–3,730–3,705–4,820
    Total deficit non-commercial activities108,193120,73332,40640,233
Commercial
Expenditure on programmes55,69676,47071,34673,942
General administrative and running expenses359,172488,604540,930593,807
Charge from National for provision of technical facilities and services124,00078,02892,31698,141
Net expenditure538,868643,102704,592765,890
Revenue681,623729,988835,901970,736
Net surplus before tax142,75586,886131,309204,846
Provision for taxation76,35543,01962,427101,679
Net surplus after tax66,40043,86768,882103,167
Summary
      Total net deficit non-commercial activities108,193120,73332,40640,233
  Less Commercial surplus66,40043,86768,882103,167
Net surplus for Service41,793*76,866*36,47662,934

In the table for national stations the reduction in the amount recovered from commercial in 1953–54 on account of provision of technical services is due to direct charging of technical operational costs to the commercial stations concerned. These costs were previously included in the charge made to the commercial account which, from the 1953–54 financial year, provides for only Head Office engineering overhead and services and depreciation provision on assets in use commercially, and from 1954–55 a share of the costs of interference removal. This change accounts for the apparent reduction in the general running expenses of the national stations for the 1953–54 financial year and accounts in some measure for the increase in the general running expenses of the commercial stations, and the reduction in the charge from national for the provision of technical facilities and services.

In 1955 the New Zealand Listener was admitted as a commercial activity for taxation purposes, and from 1954–55 its financial result is shown in the published accounts with the commercial stations before provision for taxation. However, in order to preserve comparisons shown in the previous table the format has not been changed, and the Listener results have again been included under non-commercial activities.

The service has two principal sources of revenue, radio licence fees and sales of station time (advertising), and one supplements the other. For accounting purposes the former are credited to the accounts of the non-commercial stations and the latter to the accounts of the commercial stations but the Service operates on a common fund, and, in fact, all revenue is available for the general purpose of broadcasting.

Revenue from radio licence fees and from sale of station time for the last four financial years is shown in the following table.

£

1952–531953–51954–551955–56
Radio licence fees610,277642,010767,619761,410
Sale of station time664,277712,677816,349952,410
      Totals1,274,5541,354,6871,583,9681,713,820

STATISTICS OF RADIO LICENCES.—The growth in the number of radio-receiving licences is apparent from the following table. Free licences, which are referred to later, are included in the figures. The licence fee for a receiving station, which from 1 April 1935 had been £1 5s. per annum, was increased to £1 10s. per annum as from 1 January 1954.

At 31 MarchAucklandWellingtonCanterburyOtagoNew Zealand TotalsLicences Per Hundred of Population
1946130,445139,24371,36751,943392,99822.35
1947139,487143,81274,47257,452415,22323.16
1948144,646146,48474,16455,689420,98322.95
1949148,742150,37375,38557,589432,08923.07
1950155,797155,58578,28659,679449,34723.86
1951160,743160,97380,79560,907463,41823.89
1952165,838167,47183,92462,300479,53324.11
1953173,008169,91885,41563,515491,85624.14
1954178,499171,93887,01864,301501,75624.18
1955183,812173,83687,75363,542508,94323.88
1956188,775176,13687,58564,296516,79223.76

A summary of all radio licences in force in New Zealand at 31 March 1956 follows.

DistrictReceiving StationsRadio DealersPrivate ExperimentalOtherTotal Licences
AmateurResearch
Auckland188,7758488753929190,566
Wellington176,1368289434425177,976
Canterbury87,585333415102388,366
Otago64,29631426971964,905
      Totals516,7922,3232,50210096521,813

Licences are issued free of charge to institutions for the blind and also to any blind person. In addition, public hospitals, benevolent and orphan institutions, and other charitable institutions are granted free licence privileges, provided that the sets are used for the benefit of patients or inmates. Free licence privileges have also been extended to the operation of receiving sets in schools, where such sets are used for educational broadcast purposes. The number of free licences as at 31 March of each of the last five years was: 1952, 2,428; 1953, 2,533; 1954, 2,626; 1955, 2,704; and 1956, 2,804.

A penalty is attached to the operating of unlicensed radio apparatus.

Chapter 18. SECTION 18—LAND TENURE, SETTLEMENT, VALUATION, ETC.

18 A—GENERAL

OCCUPATION OF LAND.—The total area of New Zealand, excluding the island territories comprising Cook and associated islands and Tokelau Islands, and exclusive of the trust territory of Western Samoa, but inclusive of the minor islands since these form parts of land districts, is 66,390,700 acres. Of this total, 43,355,869 acres were assessed in 1955 as being in occupation, including reserves and Maori lands leased, but excluding areas within borough boundaries, holdings of less than 1 acre in extent, and Maori land held on the communal system.

The number of holdings and percentages of total holdings in occupation, grouped according to size, as returned in each of the years 1941, 1946, 1949, and 1952, are given below.

Area, in AcresNumber of HoldingsPercentage of Total
19411946194919521941194619491952
1 and under 1011,26511,38011,46312,36313.0413.2013.1613.69
10 and under 5014,58514,01413,61113,71616.8916.2515.631,519
50 and under 10012,73912,81212,96213,46014.7514.8614.8914.91
100 and under 20016,64616,69917,25018,10419.2719.3619.8120 05
200 and under 3209,8619,86210,08410,30811.4211.4411.5811.42
320 and under 64010,20210,39210,65311,08311.8112.0512.2312.27
640 and under 1,0004,1544,1544,2154,3824.814.824.844.85
1,000 and under 5,0005,8835,8825,8275,8666.816.826.696.50
5,000 and under 10,0005445565385350.630.640.620.59
10,000 and under 20,0002942872782760.340.330.320.31
20,000 and under 50,0001451451441430.170170.170.16
50,000 and over555651520.060.060.060.06
      Totals86,37386,23987,07690,288100.00100.00100.00100.00

Although approximately 44 per cent of holdings in 1952 were less than 100 acres in extent, the total area of such holdings represented only a little over 3 per cent of the occupied land of New Zealand. A further 20 per cent of the holdings ranged between 100 and 200 acres, but the aggregate area of these amounted to less than 6 per cent of the total. At the other end of the scale it is found that 65 per cent of the occupied land was held in areas of 1,000 acres and upwards, although the number of such holdings was only a little over 7½ per cent of the total. Holdings of 5,000 acres and upwards, of which there were 1,006 in 1952, accounted for 39 per cent of the total area of occupied land.

The total acreage of holdings in each group is given in the following table.

Acres

Area of Holdings, in Acres1941194619491952
1 and under 1052,52552,93853,05356,401
10 and under 50374,038356,797344,548346,400
50 and under 100925,878936,146949,958989,287
100 and under 2002,330,8672,338,3152,417,3422,536,230
200 and under 3202,476,2092,468,8172,527,4012,584,876
320 and under 6404,614,3254,697,2904,823,0685,011,073
640 and under 3,0003,307,7313,302,2243,349,9843,470,297
1,000 and under 5,00011,517,58211,498,50711,377,53911,367,370
5,000 and under 10,0003,707,1753,793,5913,661,1383,670,182
10,000 and under 20,0004,133,4004,012,3853,891,5863,870,948
20,000 and under 50,0004,406,4094,408,2094,457,0354,404,001
50,000 and over5,042,1985,214,7894,864,8474,912,638
      Totals42,888,33743,080,00842,717,49943,219,703

The following additional details not normally obtained in the annual farm production survey were collected under the special Census of Agriculture in 1950:

Holdings at 31 January 1950NumberPercentage of Total
Occupied by Maoris4,7055.21
Worked on share system2,6782.97
Lying entirely idle and unused2,3392.59

A classification of all holdings in 1950 according to the status of the occupier showed the following position:

Holdings at 31 January 1950NumberPercentage of Total
Status of occupier—  
  Owner55,08861.01
  Lessee17,84419.77
  Manager2,5322.80
  Partner1,2421.38
  Shareworker2,3032.55
  Part owner, part lessee11,28112.49
      Totals90,290100.00

Condition of Occupied Land.—The land in occupation in New Zealand at 31 January 1955 was classified according to condition and use as follows.

 AcresPercentage of Total

* Includes areas also sown with grasses and clovers.

In principal cereal crops and crops for threshing*313,9060.72
In green, root, and other crops*852,9101.97
In fallow161,2010.37
In sown grasses and clovers—
  Cut for hay, seed, or ensilage974,8072.25
  Not cut for hay, seed, or ensilage16,557,81938.19
In vineyards and orchards23,2360.05
In passion-fruit vines81 
In hop vines773 
In market gardens and nurseries19,3170.05
In private gardens and pleasure grounds94,7270.22
In plantations962,5922.22
      Total area in cultivation19,961,36946.04
Unimproved land23,394,50053.96
      Total area in occupation43,355,869100.00

Information collected in 1950 in conjunction with the World Census of Agriculture showed that 60 per cent of the area under sown grasses was stated as being capable of cultivation by ploughs or discs. Of the total area in occupation, 34 per cent was considered to be capable of being so cultivated.

Land in cultivation (under crop and in pasture) forms the subject matter of Section 20, Farm Production. An indication of the condition and geographical distribution of unimproved land is afforded by the following table, which relates to the position at 31 January 1955.

Acres

Land DistrictPhormium (New Zealand Flax)Tussock and Naturally Established Native GrassesFern, Scrub, and Second GrowthStanding Native BushBarren and Unproductive LandTotal, Unimproved Occupied Land
North Auckland1,675131,539794,070290,05075,0961,292,430
South Auckland1,18648,4791,044,319383,10199,4421,576,527
Gisborne341108,828217,943165,94828,014521,074
Hawke's Bay17344,819338,465128,68754,287866,275
Taranaki1012,024191,577232,80816,746453,165
Wellington6,784565,369674,687294,079131,0391,671,958
Marlborough6,0141,352,730284,096103,710289,4122,035,962
Nelson2,360176,498376,250136,13616,670757,914
Westland4,81751,236200,712332,432123,599712,796
Canterbury6,7634,142,953262,808160,457556,1025,129,083
Otago6,0295,211,184598,674345,857413,2506,574,994
Southland5,7731,246,198376,851107,41166,0891,802,322
      Totals41,76913,391,8575,360,4522,730,6761,869,74623,394,500

Tenure of Occupied Lands.—The area of land in occupation as at 31 January 1955, classified according to tenure, was as follows.

 Acres
Crown land (including leases and licences)18,822,893
Freehold (including all land held on deferred payment)21,653,955
Leasehold2,879,021
      Total occupied area43,355,869

Lands in occupation are not strictly comparable with Crown lands alienated or in process of alienation, for certain lands which were never made waste lands of the Crown have passed into the hands of Europeans. It must also be remembered that not all of the freehold land is in occupation, while (as stated previously) holdings within boroughs or under 1 acre in extent are excluded from the annual statistics.

RESERVES, DOMAINS AND SCENIC RESERVES.—These are areas which have been—

  1. Set apart by the Crown:

  2. Purchased by the Crown or by local authorities:

  3. Gifted to the Crown or in local authorities by other Acts, such as the Land Subdivision in Counties Act 1946, for the purpose of—

    1. Reserves for public utilities such as sites for county and municipal buildings, plantations, gravel pits, libraries, etc.;

    2. Recreation reserves or domains, as they are usually called, to provide for the recreation and enjoyment of the people;

    3. Scenic and historic reserves, which preserve scenic and historic places for the use and enjoyment of the people.

The legislation governing these areas was consolidated in the Reserves and Domains Act 1953, which provides for overall policy and management by the Minister of Lands with administration by the Department of Lands and Survey.

As a genera] rule the control and management of public utility reserves of a local nature are vested in the appropriate local authority, which may then use the area for the particular purpose for which it was set aside.

Day to day control of recreation reserves and domains is usually vested in locally elected boards of suitable interested persons or in the appropriate local authority. Local interest is thereby sustained and the community encouraged to help itself with the development, control, and management of these areas so that they provide for the recreation needs of the district. There is ample provision in the legislation for sporting clubs and bodies to assist in development and control, with adequate safeguards for the protection of the rights of the general public to use and enjoy these areas. The legislation also allows suitable portions of these reserves to be set aside and developed for camping and similar purposes.

Scenic and historic reserves provide for the preservation in their natural state of the more outstanding and attractive features of the natural landscape and sites of historic significance.

There is also provision for the creation of private scenic reserves and historic reserves. In these cases the owner retains ownership of the land, but the reservation ensures the conservation of the scenic and historic features. These reservations may be revoked at the owner's pleasure.

Provision is also made for the administration of bird sanctuaries, such as those established on Little Barrier Island in the Hauraki Gulf; Cape Kidnappers at the south-eastern point of Hawke's Bay; the white heron colony near Okarito in Westland; Kapiti Island off Paraparaumu on the south-west coast of the Wellington Provincial District; and Rangatira or South-east Island in the Chatham Group.

NATIONAL PARKS.—The National Parks Act 1952 codified the law relating to the establishment and control of New Zealand's national parks. Provision was made for the. establishment of a National Parks Authority, representative of governmental, scientific, recreational, and cultural interests. The authority's general functions are to advocate and adopt schemes for the protection of national parks and for their development on a national basis; to recommend the enlargement of existing parks and the setting apart of new areas; and generally control in the national interest the administrative policy affecting all national parks throughout the country.

Local control of individual parks is vested in park boards which are appointed by the Minister of Lands and are representative of users of the parks and those interested in their conservation.

The Urewera and Fiordland National Parks are not yet under board control. Urewera National Park is administered by the Commissioner of Crown Lands at Hamilton, and Fiordland by the Commissioner of Crown Lands at Invercargill.

Park boards administer the parks under their control, subject to the general policy and direction of the Authority, so as to secure to the public the fullest proper use and enjoyment of the parks consistent with the preservation of their natural features and the protection and well-being of their native flora and fauna. Boards have power to develop or authorize the development of parts of parks for specific recreation purposes; they may erect or authorize erection of mountain huts or ski tows; may erect or authorize the erection of hostels, accommodation houses, and other buildings and facilities; may develop or authorize the development of camping grounds and may charge or consent to charges for facilities provided. Provision is also made for the setting apart of wilderness areas, and these are to be kept and maintained in a state of nature, and no buildings or other development may take place in them with the exception of construction of foot tracks where necessary and desirable.

At present there are seven national parks in New Zealand, these being (areas in acres in parentheses): Urewera (119,614), Tongariro (160,593), Egmont (80,336), Abel Tasman (40,620), Arthur's Pass (239,118), Mount Cook (151,800), and Fiordland (2,791,340).

SUMMARY OF AREAS RESERVED.—The following table of reservations may be of interest, the figures given relating to 31 March 1956.

Type of ReservationNo.Acres

* There were 1,370 reserves at 31 March 1955. The lesser number shown at 31 March 1956 results from amalgamation of contiguous areas and consolidation of groups of reserves administered collectively.

Scenic and historic reserves959*909,924
Public domains90580,552
National parks73,583,421

WILDLIFE SANCTUARIES.—The Wildlife Act 1953, consolidating with amendments the Animals Protection and Game Act 1921-22, provides for the constitution of wildlife sanctuaries, these being areas devoted primarily as habitat areas for wildlife where the maximum degree of protection can be afforded. Restrictions are imposed on entry into the sanctuaries and certain prohibitions dealing with killing or disturbance of wildlife are imposed. The former game sanctuaries are now termed wildlife refuges, while occupiers of any land in wildlife refuges are authorized to carry out certain operations necessary for the normal use of the land.

LAND TRANSFER AND DEEDS REGISTRATION.—Under the land transfer system introduced in 1870 the title to land is not effected by the execution of documents. Registration is the fundamental principle, and it is only on registration that any interest passes. The Land and Deeds Registry assumes all responsibility for the registration, and any person named in the register as taking an interest under a registered instrument acquires a practically indefeasible title.

No instrument or dealing may be registered unless it is in accordance with statute or general law or if forbidden by positive law. An increasing number of statutes and regulations expressly impose upon the District Land Registrar the duty and responsibility of ensuring that no instrument is registered or no interests in land are acquired in contravention of the statutory provisions and requirements regulating the aggregation and subdivision of land, the alienation of Crown land, Maori land, or public reserves, the dedication or constitution of roads, streets, and access-ways, and many other matters involving Government policy.

The land transfer system of title by registration has great advantages over the older system of title by deeds, even when the deeds are duly registered. The state of a land transfer title can be ascertained by a search of the register with very much greater facility than can the state of a title under the deeds system, and the powers vested in Registrars under the Land Transfer Act enable them to keep the register simple, clear, and free from doubts; the simplicity of searching and of the preparation of instruments under the land transfer system enables transactions with land under that system to be carried out at less cost than under the deeds system; and under the land transfer system there is the State guarantee of a practically indefeasible title, as mentioned previously.

These considerations led to the passing in 1924 of the Land Transfer (Compulsory Registration of Titles) Act, now incorporated in the Land Transfer Act 1952, which had for its object the bringing under the provisions of the Land Transfer Act of all land alienated by the Crown and not already under the provisions of that Act, except lands held by Maoris under their customs and usages. Where on investigation it is found that a title is satisfactory the District Land Registrar issues in the name of the proprietor of the land an ordinary indefeasible certificate of title. Where however the title or the survey plans of the land are unsatisfactory a certificate of title, limited either as to title, or as to description of parcels, or limited both as to parcels and as to title, may be issued. By lapse of time or by compliance with such Acts or matters as are stated in the Registrar's Minutes issued with the limited certificate of title, the registered proprietor of the land may obtain an ordinary certificate of title in lieu of the limited one.

The work of bringing all land titles under the provisions of the Land Transfer Act as required by the Land Transfer (Compulsory Registration of Titles) Act 1924 has been completed for all practical purposes. There are in each district, however, several titles that it has been considered unwise to deal with at present owing to grave doubts as to ownership, or for some other reason.

The Land Transfer Act 1952, which came into force on 1 January 1953, consolidated the Land Transfer Act 1915 and its amendments. The Property Law Act 1952, the provisions of which, except as expressly provided, apply to land and instruments under the Land Transfer Act 1952, also came into force on 1 January 1953. These two Acts together have made a number of important alterations in the law of property, including provision for noting restrictive covenants against Land Transfer titles. In addition they have correlated and consolidated the law relating to property and to the registration and transfer of title to, and the dealing with, estates in land.

The provision for the issuing of certificates of title, limited as to parcels, introduced by the Land Transfer (Compulsory Registration of Titles) Act 1924 and now incorporated in the Land Transfer Act 1952, has been extended to permit the issue of certificates of title, limited as to parcels, in cases where land comprised in an ordinary certificate of title is subdivided and the District Land Registrar, in his discretion, exempts the owner, on the grounds of hardship, from the requirement of depositing a survey plan of the land.

To expedite the acquirement of title and to enable the registration of dealings by purchasers of dwellings and sections of land sold by the State and local authorities, provision has now been made by various statutes for agreements for sale and purchase and licences to occupy to be registered and endorsed "limited as to parcels" until roads are dedicated, surveys are completed, and other formalities are complied with to enable ordinary certificates of title to be issued. Where a registered agreement or licence is so endorsed, it shall have the same effect as if it were registered against a certificate of title limited as to parcels. Particulars of the main terms of sale of State housing properties are given in Section 33B of this volume.

For administrative purposes a special register of certain classes of pastoral leases, pastoral occupation licences, and other leases and licences, issued under the Land Act 1948 but not required to be registered under the Land Transfer Act 1952, is kept in the Land Transfer Office. Transfers, sub-leases, mortgages, or other dealings with such leases or licences are registered at the Land Registry Office and entered on this special register as evidence of the disposition or dealing. This secondary system of registration introduced by section 83 of the Land Act 1948 is one of registration of deeds and not of title. As the leases and licences concerned are not subject to the provisions of the Land Transfer Act 1952, such registration has no State guarantee.

Deeds Registration.—Provision has existed since 1841 and is now contained in the Deeds Registration Act 1908 for the registration of deeds and instruments affecting land which is not subject to the provisions of the Land Transfer Act. Registration is not essential to the validity of the instrument, but it is highly important as a record and to secure priority. The Act provides that every deed shall be void as against any person claiming for valuable consideration under any subsequent deed duly registered, unless the earlier deed was registered before the subsequent one. The Department is not responsible for the form or matter of the instruments registered beyond seeing that they are duly stamped and contain a sufficient description of the land to identify it. Provision is made for the deposit of instruments in the Deeds Register Office for safe custody and reference, and such deposit operates as a release from any covenant for production. The Deeds Index and all recorded and deposited instruments are open to public inspection, and certified copies may be obtained on payment of the prescribed fees. (This system of deeds registration is now for all practical purposes obsolete.) Information as to transactions under the Deeds Registration Act for each of the years 1942-43 to 1952-53 was given in the 1954 Year-Book.

Registrations Under Joint Family Homes Act 1950.—Information as to applications to settle joint family homes under the Joint Family Homes Act 1950 registered for each of the years 1950-51 to 1955-56 is given in the following statement.

Year Ended 31 MarchHomes Settled
195121
19525,763
19536,037
19544,808
19554,477
19565,363

Certificates of Title Issued.—The following table shows the number of certificates issued for the last seven years.

Year Ended 31 MarchTotalYear Ended 31 MarchTotal
195019,656195426,907
195121,794195525,356
195223,663195624,069
195322,763  

The table following shows transfers registered under the Land Transfer Act during each of the last eleven years.

Year Ended 31 MarchTown and Suburban PropertiesCountry PropertiesAll Properties: Total Consideration
NumberAreaConsiderationNumberAreaConsideration
  Acres£ Acres££
194631,23910,93825,393,0896,8211,310,55712,961,05238,354,141
194734,68512,22127,208,1588,3091,844,04817,764,34244,972,500
194832,08011,41925,039,5056,7211,756,58815,413,01340,452,518
194930,49410,95424,802,8436,0701,691,74313,607,15938,410,002
195033,18210,82227,629,1795,8761,783,38713,033,53040,662,709
195149,88014,06361,536,9708,0581,457,70617,822,81879,359,788
195246,14512,08473,164,86810,4641,848,60235,964,546109,129,414
195339,32510,00865,460,9619,0531,616,78135,241,475100,702,436
195443,42710,92575,503,4079,1881,675,61738,915,264114,418,671
195546,97811,83988,760,9409,5932,123,50047,964,242136,725,182
195641,37810,36380,684,4257,7221,525,60940,255,912120,940,337

The numbers of transfers shown in the table relate only to transfers of land on sale—i.e., they do not include transfers of land from trustees to beneficiaries or to new trustees, transfers of mortgages, easements, etc.

The downward movement in land transfers for the years 1947-48 and 1948-49 was arrested in 1949-50, and in 1950-51 transfers of town and suburban properties increased by 16,698 (50 per cent) and the amount of consideration by £33,908,000 (123 per cent). Country transfers increased by 2,182 (37 per cent) in number and by £4,789,000 (37 per cent) in the amount of consideration. The large increase in transfers in 1950-51 was contributed to by the exemption of town and suburban properties from control by Order in Council operative from 23 February 1950 and by the relaxation of control on farm lands by the enactment of the Servicemen's Settlement Act 1950, which came into force on 1 November 1950.

Whereas the number of transfers registered during 1951-52 did not reach the record figure established in the previous year, the amount of consideration involved reached the record level of £109,129,000. This figure represented an increase of 38 per cent on the total for 1950-51, and was 33 per cent greater than the previous highest figure of £81,790,000 recorded in 1921. Town and suburban transfers during 1951-52 showed decreases in both number registered and area, but a substantial increase of £11,628,000, or 19 per cent, in the amount of consideration involved. The 1951-52 year was the first complete one since the enactment of the Servicemen's Settlement Act 1950. The effect of the relaxation of control on farm lands brought about by this legislation is evidenced in the large increases in the number, area, and value of country transfers registered. The increases amount to 2,406 in number, 390,896 acres in area, and £18,142,000 in consideration, representing percentage increases of 30 per cent, 27 per cent, and 102 per cent respectively.

This was followed in 1952-53 by decreases in all categories from the previous year, very slight as far as the consideration for country properties is concerned, but amounting to £7,704,000, or 11 per cent, for town and suburban properties. The numbers for town properties fell by 6,820, or 15 per cent, and country properties by 1,411, or 13 per cent, the total areas involved showing sympathetic movements.

Increases in number, area, and consideration were recorded for 1953-54 and 1954-55. Although there was a further increase in the number of land transfers in the latter year, the totals were less than the 1950-51 town and suburban total and the 1951-52 country total. The significant feature of the 1954-55 figures was the record consideration for all properties of £136,725,000, there being marked increases in the value of town and suburban and country properties of £13,258,000 and £9,049,000 respectively.

Decreases were recorded in all categories during the year 1955-56. There was a drop in number for town and suburban properties of 5,600 or 11.9 per cent. The area and consideration dropped accordingly. The number of transfers of country properties dropped by 1,871 (19.5 per cent), the area decreased by 597,891 acres (28.2 per cent), and the consideration by £7,708,000 (16.1 per cent). Total consideration decreased by £15,785,000, (11.5 per cent).

As all classes of properties are included, land-transfer figures do not give a precise indication of any changes that may take place in property values. In the case of town and suburban properties, however, the numbers involved are probably sufficient to smooth out changes from year to year in the proportions of different classes of property included in the total. The average amount of consideration per town and suburban property transferred decreased in the years just after the war to £781 in 1947-48. Increases were recorded in the next eight years, the averages being £813 in 1948-49, £833 in 1949-50, £1,234 in 1950-51, £1,586 in 1951-52, £1,665 in 1952-53, £1,739 in 1953-54, £1,889 in 1954-55, and £1,950 in 1955-56.

Data, covering the last four years, of average consideration per transaction of town and sub-burban properties are shown in the next table. As can be seen, there has been little change in the proportions in the various consideration groups during this period.

Year Ended 31 MarchUnder £1,000£l,000-£9,999£10,000-£24,999£25,000 and OverTotals
NumberConsiderationAverageNumberConsiderationAverageNumberConsiderationAverageNumberConsiderationAverageNumberConsiderationAverage
  £ (000)£ £ (000)£ £ (000)£ £ (000)£ £ (000)£
195318,4996,68236120,60554,2692,6341742,56614,74847l,94341,34939,32565,4611,665
195419,7807,34637123,38562,9032,6902123,04414,359502,21144,21643,42775,5031,739
195520,2947,94139126,41275,0592,8422083,07714,791642,68441,94246,97888,7611,889
195618,3847,50140822,65066,0042,9142803,98014,214643,20049,99841,37880,6841,950

Further particulars relating to country properties from the year 1945-46 onwards are contained in the next table, but in this instance freehold properties only have been taken into account. From these figures in conjunction with those of the table on page 452 it will be seen that leasehold properties form a very small proportion of the total transferred in any one year. As indicated previously, very diverse types of property are included in the figures, and the averages should not be taken for more than they purport to show. This is particularly so in the case of country properties, where the number of transactions is comparatively small.

Year Ended 31 MarchNumberAreaConsiderationAverage Value per TransactionAverage Value per Acre
  Acres£££
19466,2121,063,73812,091,1271,94611.37
19477,4981,466,56516,631,8822,21811.34
19486,0381,462,98214,539,0972,4089.94
19495,5011,289,34112,663,6272,3029.82
19505,3361,268,76312,288,8852,3039.69
19517,4191,161,92616,885,9822,27614.53
19529,6551,514,28934,010,4593,52322.46
19538,2851,343,13133,049,7143,98924.61
19548,4421,371,09436,596,4524,33526.69
19558,8041,725,29944,460,1325,05025.77
19567,1121,236,89337,365,7095,25430.21

Monthly statistics of transfers on sale of land registered under the Land Transfer Act are published regularly in the Monthly Abstract of Statistics.

The following analysis shows, for 1955-56, transfers of country freehold properties classified by area groups.

Size Group (Acres)NumberAreaConsiderationConsideration per Acre
  Acres££
Under 303,45324,5268,492,618346.27
30 and under 5043417,5161,697,20196.89
50 and under 10084162,4274,983,98479.84
100 and under 2501,211195,4858,956,82545.82
250 and under 500609214,6115,966,38827.80
500 and over564722,3287,268,69310.06
      Totals7,1121,236,89337,365,70930.21

LEGISLATION CONCERNING LAND SETTLEMENT AND SALE OF LAND.—Legislation governing this aspect is found in the Land Settlement Promotion Act 1952. This Act replaced the previous enactments—viz., Servicemen's Settlement and Land Sales Act 1943 and the Servicemen's Settlement Act 1950.

Land Settlement Promotion Act 1952.—This Act has the objectives of providing for the closer settlement of farm land, for the acquisition of farm land that is, or when subdivided and developed will be, capable of substantially increased production, and to prevent the undue aggregation of farm land. There was also a provision requiring purchasers to reside for three years, but this has now lapsed and personal residence by purchasers is no longer necessary.

Part I relates to the taking of farm land for settlement (including a lease or licence of Crown land or a lease of West Coast settlement land) and gives power to the Minister of Lands to do so if he is of the opinion that additional farm land is required for the settlement of landless discharged servicemen and others requiring land on which to establish themselves in farming, and that sufficient land cannot be acquired for that purpose by voluntary negotiation. The Minister in such a case may, on the recommendation of the Land Settlement Board, take any farm land that is, in his opinion, suitable for settlement, and is, or when subdivided and developed will be, capable of substantially increased production.

Land is not to be taken from any owner unless he owns farm land in fee simple or on lease perpetually renewable or on lease in perpetuity which, in the aggregate, amounts to three or more economic farms or could provide for these by subdivision.

The owner also has the right to retain an area of land which is the equivalent of two economic farms (or which could by subdivision provide these) and also is sufficient to provide (a) a separate economic farm for each child of the owner under twenty-one years of age at the time, and (b) at the Minister's discretion, for each child of the owner over the age of twenty-one years who, at the time, is in the Minister's opinion likely to follow farming as a career. In every case the owner shall be entitled if he so desires to retain his homestead.

Objections to the taking of land may be made, and provision is made for the hearing of the objection by the Land Valuation Committee or the Land Valuation Court, which may allow or disallow it either unconditionally or subject to such conditions as the Court thinks fit.

Provision is also made for the payment of compensation for any land or estate or interest in the land so taken. If the offer of compensation made by the Minister is not accepted the amount of compensation payable will be that prescribed by order of the Land Valuation Court, which shall be final as regards the amount awarded. Another provision deals with compensation in respect of mortgaged lands.

Part II deals with the control of sales and leases of farm land to prevent undue aggregation. The Act applies to sales of freehold farm land, to leases of farm land for terms of three years or more, to sales of the lessees' interest under leases granted under the West Coast Settlement Reserves Act 1892, and to transfers of Crown land which, under section 208 of the Land Act 1924, do not require the consent of the Land Settlement Board, as well as to options for such sales and leases.

The consent of the Land Valuation Court is required to such transactions except where the purchaser or lessee owns no other farm land and has not since the passing of the Act transferred any farm land to any person as trustee for any person or created any trust in respect of any farm land.

The matters to be considered by the Court or Committee in determining whether undue aggregation would result are briefly (a) whether the farm land already owned, leased, held, or occupied in fee simple or under any tenure of more than one year's duration, by the purchaser or lessee, is sufficient to support him, his wife, and any dependent children in a reasonable manner and reasonable standard of comfort; (b) whether, having regard to land so held, etc., the acquisition of additional land could, judged by ordinary and reasonable standards, be considered excessive; (c) the nature of the use to which the purchaser proposes to devote the land and his ability to achieve that purpose; (d) whether the acquisition would be in or against the public interest; and (e) such other matters as, in the particular case, the Court or Committee considers relevant.

Part III of the Act deals with miscellaneous and machinery matters.

There is also legislation governing the administration of Crown lands, viz., the Land Act 1948. Details of this will be found in Section 18B, Crown Lands.

18 B—CROWN LANDS

THE Crown lands are now administered under the authority of the Land Act 1948 and its amending Acts of 1950, 1951, 1952, 1953, and 1954. The principal Act consolidated into one Act all previously existing legislation relating to the lands of the Crown and also made certain amendments thereto. The Acts so consolidated and amended were the Land Act 1924, the Land for Settlement Act 1925, those provisions of the Education Reserves Act 1928 which relate to education reserves administered by a Land Board, the Hanmer Crown Leases Act 1928, the Small Farms Act 1932-33, and the amendments to those Acts. It also repealed, but did not re-enact, the Discharged Soldiers' Settlement Act 1915, the Hutt Valley Lands Settlement Act 1925, the Deteriorated Lands Act 1925, the Fruit Farms Settlement Act 1910, and the amendments to those Acts. The distinction that existed between Crown land subject to the various enactments mentioned was abolished by the new Act.

The Minister of Lands is charged with the administration of the Land Act, and his executive officer is the Director-General of Lands, who is the Permanent Head of the Department of Lands and Survey.

New Zealand is divided into twelve land districts, the executive officer for each district being a Commissioner of Crown Lands. The Act abolished the former Land Boards and set up a central authority entitled the Land Settlement Board. This Board consists of the Minister of Lands (Chairman), the Director-General of Lands (Deputy Chairman), the Secretary to the Treasury, the Director-General of Agriculture, the Valuer-General, a representative of the State Advances Corporation, the Director of Rehabilitation, the Assistant Director-General of Lands, the Fields Director of the Department of Lands and Survey, a representative of the New Zealand Returned Services' Association, and not more than two other persons to be appointed by the Governor-General.

The duties of the Board are broadly defined in the Act as follows:

  • It shall be the duty of the Board to carry out the provisions of this Act for the administration, management, development, alienation, settlement, protection, and care of Crown land; and to carry out all negotiations for the purchase of land by the Crown under this Act, and the performance and completion of all contracts of purchase so entered into by the Crown.

To replace the former District Land Boards, the Land Settlement Board was required to appoint one or more Land Settlement Committees for each land district, and twenty of these Committees have been set up. Each Committee consists of three members, including the Commissioner of Crown Lands for the land district as Chairman. The Board may also appoint as an associate member of any Committee any person who in the opinion of the Board possesses expert knowledge of advantage to the Committee in the execution of its functions. The functions of these Committees are not expressly set out in the Act, but the Board has wide powers of delegating to Committees any of its functions.

METHODS OF ACQUIRING CROWN LAND.—Crown lands are usually offered at valuation and applications are invited. The successful applicant is selected by ballot, although in certain circumstances preferential allotment can be made. Under legislation introduced by the Land Amendment Act 1950 any urban or commercial or industrial land may be offered for disposal by tender at a minimum price or rental value or by public auction at an upset price. Every applicant must be of the age of seventeen years or upwards, and must apply for Crown land solely for his own use or benefit, and not directly or indirectly for the use or benefit of any other person. Two or more persons may make application to purchase or take on lease or licence as joint tenants or tenants in common. No application for Crown land will be granted if, having regard to the land already owned, leased, held, or occupied under any tenure of more than one year's duration, the acquisition of additional land would, in the opinion of the Board, amount to undue aggregation of land. An application will also be refused if the Board considers that the land is intended to be used for speculation or for uneconomic purposes.

Crown land may be acquired on the following tenures:

  1. Farm land, urban land, commercial or industrial land—(a) On renewable lease; (b) for cash; (c) on deferred payments. A renewable lease is for a term of thirty-three years with a perpetual right of renewal for the same term and, except where otherwise provided for, with a right of acquiring the fee simple. The Board may, however, determine that any specified land may be taken on renewable lease only, but without the right of acquiring the fee simple. The Board may also determine that any specified commercial or industrial land may be taken on lease only, but without the right of acquiring the fee simple, for any term with or without a right of renewal, but so that the aggregate term, including renewals (if any), does not exceed fifty years.

  2. Pastoral land—(a) On pastoral lease for a term of thirty-three years with a perpetual right of renewal for the same term, but with no right of acquiring the fee simple; (b) on pastoral occupation licence for a term not exceeding twenty-one years, with no right of renewal or of acquiring the fee simple.

  3. Short tenancies for grazing or other purposes for a term not exceeding five years.

  4. Land for communal grazing—The Board may grant a lease or licence for any Crown land to any person or group or association of persons, or to any body corporate, for use as communal grazing. The term is for a period not exceeding thirty-three years, with or without a right of renewal and subject to such conditions as the Board may decide.

  5. Unclassified land—Where in the opinion of the Board any Crown land available for disposal cannot properly be classified as farm land, urban land, commercial or industrial land, or pastoral land, the Board may sell or grant a lease for any term not exceeding thirty-three years, with or without a right of renewal, perpetual or otherwise, for the same term.

Every holder of a lease or licence is required to effect within a certain specified period such improvements as the Board determines. In most cases the lessee or licensee of any farm or pastoral land is required to commence to reside on the land within one year after the date of his licence.

LAND DEVELOPMENT.—The Land Act empowers the Land Settlement Board to carry out such development works as may be required to improve the quality or condition of any Crown land or to make it fit for settlement. This includes the erection of buildings, and the Board may carry on all usual farming activities on land developed or being developed until the time is appropriate for the disposal of the land on permanent tenure.

The Government announced in March 1953 that while land would continue to be purchased and developed for the settlement of A grade ex-servicemen as long as there was the necessity, a start had been made with the settlement of civilians by the introduction of a general land settlement scheme. The first offerings under this scheme were made at the end of 1953.

SELECTIONS.—The following table shows details of the various freehold selections during the year 1955-56, together with totals for 1954-55.

FreeholdNumber of SelectorsTotal Area SelectedPurchase-price
Crown lands—Acres£
  Farm land27410,83967,231
  Urban land401376191,660
  Commercial or industrial land221431,739
Lands freeholded: Land Subdivision in Counties Act25710,030
      Totals, 1955-5672211,236300,660
      Totals, 1954-5575213,805293,516

Corresponding details concerning selections made under leasehold tenures are now given for similar periods.

LeaseholdNumber of SelectorsTotal Area SelectedAnnual RentalAnnual Instalment
Acres££

* Areas and rentals not shown, as licences are on royalty basis only.

NOTE.—Section numbers refer to Land Act 1948.

Crown lands—
  Renewable lease—
    Farm20861,46718,005343
    Urban5671469,8551
    Commercial or industrial21304 
  Pastoral leases3114,39655078
  Pastoral occupation licences230,23578 
  Deferred-payment licences—
    Farm5414,201 3,319
    Urban1,258317 47,572
    Commercial or industrial358 2,404
  Land Subdivision in Counties Act10124 3,307
  Special leases under section 67, Land Act359,818968129
  Special leases under section 165, Land Act*17   
  Special leases under section 166, Land Act120010 
  Grazing and other leases: section 68, Land Act, etc.1,49187,79256,743 
        Totals3,774318,60586,51357,153
Endowment lands—
  Westport Harbour Board endowments88024 
  Leases under section 169, Land Act81,59789 
  Leases under section 48, Land Act401,1253,089 
  Sundry tenures412123 
      Grand totals, 1955-563,834321,52889,73857,153
      Grand totals, 1954-553,088399,58373,67429,901

The 1955-56 freehold figures show little variation from those of twelve months ago, the comparison being, with 1954-55 figures in parentheses, 722 (752) selections over 11,236 (13,805) acres, with a total purchase price of £300,660 (£293,516).

However, in the leasehold selections there has been a most marked increase over the activities of previous years. The most significant increases in selections are those in respect of urban sections, both on renewable lease and deferred payment licence. These facts indicate that the Department's operations in the making of residential sections available for selection under the different schemes have been rewarded by heartening public interest. There were during the year a total of 3,834 new selections covering an area of 321,528 acres, the figures for the previous year being 3,088 selections of 399,583.

LEASES AND LICENCES CURRENT AT 31 MARCH 1956.—The following table shows the total number of leases and licences current at 31 March 1956. This table is in two parts, the first (a), dealing with leases and licences issued under the Land Act 1948, and the second (b), with those issued under Acts other than the Land Act 1948 and still current at 31 March 1956.

As can be expected, the number of leases and licences under part (c) of the table has increased, there now being 15,222 leases and licences current over 7,443,520 acres, compared with 12,995 leases and licences twelve months ago, the area then being 6,449,763 acres. The overall position has changed, too, in that the total number of leases and licences current at the end of the year, namely, 32,908 over 16,169,415 acres, has shown an increase on last year's totals of 31,699 over 16,388,609 acres.

TenureNumberAreaAnnual RentAnnual Instalment (Including Improvement Loading)
Acres££

* Areas and rentals not shown; licences on royalty basis only.

(a) Tenures Under the Land Act 1948
Crown lands—
  Renewable leases—
    Farm3,7592,093,847321,54110,074
    Urban1,45969419,668123
    Commercial or industrial35331,524 
Pastoral leases2023,810,54139,973272
Pastoral occupation licences42451,3982,504 
Deferred-payment licences—
  Farm1,018360,730 97,258
  Urban2,501804 95,899
  Commercial or industrial1101,915 13,929
  Land Subdivision in Counties Act13534 4,383
Special leases (section 67, Land Act)—
  Renewable—
    Farm9222,1933,628649
    Urban10624438 
  Non-renewable—
    Farm3614,5951,749121
    Urban1315334 
    Commercial or industrial119 
Licences for removal of minerals*102   
Flax leases51,01693675
Miscellaneous licences5,363491,14388,146202
      Totals, Crown lands14,9797,248,983479,607223,585
Endowment lands—
  Leases under section 169, Land Act212,540295 
  Leases under section 48, Land Act1012,4617,244 
  Sundry tenures121189,5365,246 
      Totals, tenures under Land Act 194815,2227,443,520492,392223,585
((b) Tenures Under Acts Other Than the Land Act 1948
Crown lands—
  Renewable leases5,7931,595,974181,5343,338
  Leases under section 5, Discharged Soldiers' Settlement Amendment Act 1921-228317,7535,336152
  Special tenure leases519176,23925,224672
  Leases in perpetuity6,5071,327,552153,47537
  Perpetual leases944,709661 
  Mining district land occupation leases1853,137434 
  Pastoral regulation licences (mining districts)11922,82760854
  Small grazing-run leases3211,100,13828,748 
  Pastoral-run licences3333,841,85440,18734
  Education reserves: Public Bodies Leases Act87597,16617,17450
  Occupation with right of purchase licences24711 
  Deferred-payment licences1,061244,403 36,115
  Miscellaneous licences51563,7916,55927
  Small farm leases621,840742 
  Leases under Education Lands Act—
    Leases28786,96221,315197
    Temporary tenancies2281,251 
  Agreements sale and purchase: Waikato Land    
    Settlement Scheme9872 1,200
  Hanmer Crown leases130320645 
  Cheviot grazing farm leases1521,2264,963 
  Sundry leases291,9481,14847
      Totals, Crown lands16,9618,608,766490,01541,923
Endowment lands—
  Westport Harbour Board endowment56911,7011,686 
  Otago University endowments27,657188 
  Lower Clutha River Trust421,291572 
  Thermal Springs licences8648314 
  Sundry other endowments6476,4323,09329
      Totals, tenures under Acts other than Land Act 194817,6868,725,895495,86841,952
      Grand totals, all tenures32,90816,169,415988,260265,537

LEASES AND LICENCES FREEHOLDED OR CONVERTED TO OTHER TENURES.— There was one conversion of an existing lease held under an Act other than the Land Act 1948 to a tenure under the last-mentioned Act, the area involved being one acre.

Over the past few years many Crown lessees have availed themselves of the provisions of the Land Act 1948 and have freeholded their leases, either for cash or on deferred payment licence.

In 1955-56, 374 lessees freeholded their leases, 234 being for cash and 140 on deferred payments. The area embraced by these leases was 97,206 acres, and the total purchase price £390,577, of which £224,683 was on deferred payments.

These figures are a decrease on last year's figures, when 577 leases over 108,199 acres were freeholded for a total of £540,311.

Since the Land Act 1948 became operative on 1 April 1949 there have been 5,584 leases freeholded, the total area covered being 1,018,825 acres, with a total purchase price of £5,200,661.

Leases and Licences FreeholdedNumberAreaPurchase Price
For cash— Acres£
  Crown lands23337,810158,992
  Endowment lands1456,902
On deferred payments—
  Crown lands14059,351224,683
      Total37497,206390,577

ASSISTING PURCHASE AND DEVELOPMENT OF PRIVATE LAND.—Where the Land Settlement Board is satisfied that the area of Crown land held by any lessee or licensee is too small to be successfully occupied as a single unit, it may authorize the making of an advance to enable him to purchase the interest of a lessee or licensee in any other Crown land which can be conveniently farmed with the land already held. The Board may also make advances or re-advances to lessees or licensees of Crown land to assist them in the development of their holdings. Purposes for which advances may be made include erection, improvement, etc. of buildings; clearing, draining, fencing, cultivation, grassing; provision of electric power, telephone services, and water; purchase of fencing materials, fertilizers, implements, etc.; and purchase of live-stock.

PURCHASE OF LAND FOR SETTLEMENT.—The Land Act 1948 authorizes the Land Settlement Board to purchase private land or the interest of any lessee or licensee in any Crown land or Maori land for the purposes of settlement as farming, urban, commercial and industrial, or pastoral land. The Servicemen's Settlement and Land Sales Act 1943 also authorized the purchase of privately-owned lands and, in addition, gave power to acquire farm land compulsorily for the settlement of ex-servicemen. This latter power was also contained in the Servicemen's Settlement Act 1950, which expired on 30 June 1952. The former Act has now been repealed and both have been replaced by the Land Settlement Promotion Act 1952, section 3 of which gives power to the Minister of Lands, under certain conditions, to take any farm land suitable for settlement where additional farm land is required for settlement of landless discharged servicemen and others requiring land on which to establish themselves in farming (see p. 454).

LAND FOR DISCHARGED SERVICEMEN.—Authority is contained in the Land Act 1948 for the granting of a lease or licence over Crown land to a discharged serviceman without competition. The Act also provides that where there are simultaneous applications for Crown land and, in the opinion of the Land Settlement Board, there are two or more applicants who are equally suitable to be allotted the land, an applicant who is a serviceman or a discharged serviceman or the wife or widow of a serviceman or discharged serviceman may have preference over all other classes of applicants.

Land is provided by the Crown for the purposes of settling ex-servicemen by the following methods:

  1. By the purchase of privately owned properties:

  2. By the use of unalienated Crown land:

  3. By the resumption by the Crown of land already held under Crown lease or licence:

  4. By the provisions of section 3 of the Land Settlement Promotion Act 1952 giving power to the Minister to take farm land under certain conditions. The owner has the right to retain an area which is, or will provide, the equivalent of two economic farms and, in addition, will provide for an economic farm for each of his children under twenty-one years of age and, at the Minister's discretion, for each child of the owner over twenty-one years who is likely to follow farming as a career. This particular section has not yet been operated.

The following table contains particulars of land acquired for development and for the settlement of ex-servicemen during the year ended 31 March 1956, and from the commencement of the scheme to 31 March 1956; also shown are those areas made available for settlement and the balance on hand at the latter date. The figures do not include particulars relating to ex-servicemen who have been assisted by way of rehabilitation loans to purchase established farms on their own account. Further information concerning the settlement of ex-servicemen on the land will be found in Section 9B, "Rehabilitation".

Year Ended 31 March 1956From Inception to 31 March 1956
AreaUnitsAreaUnits
AcresAcres

* Includes adjustments in areas consequent upon survey.

ACQUISITIONS
  (a) Purchased by voluntary negotiations88,378841,216,9822,246*
  (b) Compulsorily acquired (Servicemen's Settlement and Land Sales Act 1943 and Servicemen's Settlement Act 1950)  281,472942
  (c) Properties where ex-servicemen substituted under section 31 (3) (b), Servicemen's Settlement Act 1950  17,39079
  (d) Crown land made available93,099170617,8441,923
      Totals, acquisitions181,4772542,133,6885,190
DSPOSALS
1. To Grade "A" Ex-servicemen
  (a) Developed units (including substitutions)35,977851,194,1263,098
  (b Partially developed units  4,18232
  (c) Unimproved units  1,3145
  (d) General land settlement scheme17512,30015
 36,152861,201,9223,150
2. To Non-graded Ex-servicemen and Civilians
  (a) Developed units209210,03523
  (b) Partially developed units  5,51424
  (c) Unimproved units5,433627,04764
  (d) General land settlement scheme67123,52218
  (e) Miscellaneous  7,87058
 6,3131053,988187
3. Sundry Disposals
  (a) Transferred to Maori Affairs Department for settlement of Maori ex-servicemen  11,96330
  (b) Transferred to Department of Agriculture for experimental purposes  2,4478
  (c) Workers' homes, adjacent owners, river-bank reserve, bush reserve, unsuitable for settlement, etc.11,612 92,7623
 11,612 107,17241
      Totals, disposals54,077961,363,0823,378
Land on hand planned for development  770,6061,812

Rent under renewable lease is based on the unimproved value of the land at the date of the lease or renewal, and in the case of discharged servicemen is calculated at the rate of 2 per cent of such unimproved value for the first year and 3 per cent for the balance of the first term.

The amount of the value of the improvements on the land at the date of the lease is deemed to have been advanced to the lessee and is secured by mortgage of the lease, the mortgage being secured to the State Advances Corporation, which extends interest concessions and gives the same terms as are given in respect of mortgages of freehold properties. The State Advances Corporation also has power to make advances on its usual terms for stock, chattels, or further improvements.

Provision was made in the Land Amendment Act 1950 for the granting of suspensory loans in cases where an ex-serviceman was settled on Crown land after the commencement of the Servicemen's Settlement Act 1950 and had been granted rehabilitation assistance for the purpose. This loan, which was not to exceed the difference between the 1942 value and the current market value, was not enforceable so long as the purchaser resided personally on the land and farmed it exclusively for his own use, etc. If the purchaser carries this out for ten years, the loan is discharged.

18 C—MAORI LANDS

DEFINITION AND KINDS OF MAORI LANDS.—Maori land is of two kinds—namely, customary land and Maori freehold land. Customary land is land which has never been the subject of a Crown grant and is held by Maoris under the customs and usages of the Maori people. It is land in respect of which the ancient customary Maori title as recognized by the appropriate provisions of the Maori Affairs Act 1953 has not yet been extinguished. Such land, since it has not been Crown-granted, remains vested in the Crown, subject, however, to the customary title of the Maoris, and to their right to have the customary title transformed into a freehold title by the Maori Land Court. There is little of this class of land now left in New Zealand.

Customary land has always been restricted from alienation except in favour of the Crown. By the Treaty of Waitangi the exclusive right to purchase such land was reserved to the Crown, and in all statutes since passed the alienation of customary land to private individuals has been prohibited, and this prohibition is now extended to the Crown. Maori freehold land is the land held by Maoris under an ordinary freehold title, though subject to certain restrictions on alienation and other special incidents which are unknown to the ordinary law.

Whether land is Maori or European land depends upon the beneficial ownership of it, and not merely on the legal ownership. If land is held by a European in trust for a Maori, it is Maori land; if it is held in trust by a Maori for a European, it is European land. There are, however, four exceptions to this:

  1. When land has once become European land it does not again become Maori land unless by special enactment, by being exchanged for Maori land, or in special circumstances by declaration by Order in Council.

  2. Land purchased by a Maori from the Crown for a pecuniary consideration is not Maori land. This does not include an exchange of land, with or without a payment of money by way of equality of exchange.

  3. Land held by a Maori in severalty may be declared to be European land by the Maori Appellate Court.

  4. Under certain circumstances (see page 309 of 1942 Year-Book) the Maori owner may have been declared a European.

Even though one of many Maori owners may sell, the land remains Maori land until all have disposed of their interests, or until the purchaser has had his interests partitioned off. The term "Maori" includes a half-caste, or a person intermediate in blood between a Maori and a half-caste.

The Maori Land Act 1931 and the Maori Purposes Act 1931 were consolidations, with amendments, of previously existing legislation.

The Maori Affairs Act 1953 replaced most of the provisions of the 1931 Acts and, in addition, amended the law relating to Maori lands in many ways. The Maori Trustee Act 1953 forms another part of the plan for the consolidation of the law relating particularly to Maoris and Maori land. These two Acts are closely related.

By virtue of the Maori Affairs Act 1953 the problem of "uneconomic interests" in Maori freehold land is left to a large extent to the discretion of the Maori Land Court, and only those interests which cannot be otherwise satisfactorily dealt with will be vested in the Maori Trustee.

BOARD OF MAORI AFFAIRS.—The Board of Maori Affairs constituted under the Maori Affairs Act 1953 consists of the Minister of Maori Affairs, the Secretary for Maori Affairs, the Director-General of Lands, the Valuer-General, the Secretary to the Treasury, the Director-General of Agriculture, the member (if any) of the Executive Council representing the Maori race, and three other members appointed by the Governor-General.

The functions of the Board include, inter alia, the following:

  1. The control of the development and settlement of Maori land or land owned or occupied by Maoris.

  2. The approval of investment and advances, and of certain expenditure from the Maori Trustee funds.

  3. The control of negotiations for the acquisition of Maori lands by the Crown.

  4. The control of expenditure on housing operations under the Maori Housing Act 1935, as amended in 1938.

MAORI LAND COURT.—The Maori Land Court consists of a Chief Judge and such other Judges as the Governor-General may think fit to appoint. All powers of the Court may be exercised by a single Judge, but there are certain important powers vested exclusively in the Chief Judge. Commissioners are appointed who exercise such jurisdiction of a Judge as the Governor-General authorizes. The chief matters within the jurisdiction of the Court are—

  1. The investigation of title to customary land, and transforming it into Maori freehold land.

  2. The exclusive power of partitioning land among the owners.

  3. The sanctioning of exchanges for other Maori land and European land.

  4. Granting probates of wills and effecting succession to the estates of Maoris.

  5. Making orders for the adoption of children.

  6. Appointing trustees for Maoris who are minors or under other disability.

  7. The incorporation of the owners of Maori land.

  8. The determination of various claims as between Maoris.

  9. To grant confirmation of alienation of Maori land.

The Maori Appellate Court consists of any two or more Judges of the Maori Land Court, provided that two Judges at least shall concur in every decision of the Court. With certain exceptions the Appellate Court determines appeals, whether on law or on fact, from all final orders of the Maori Land Court.

MAORI TRUSTEE.—The Maori Trust Office was originally created to take over from the Public Trust Office the administration of certain Maori reserves and the administration of the estates of deceased Maoris and those under disability. The Maori Trust Office now forms part of the Department of Maori Affairs and is headed by the Maori Trustee, comparable in status and function with the Public Trustee. The control of most Maori Trustee activities has been decentralized by the delegation of wide powers to the District Officers of the Department of Maori Affairs, who deal primarily with all Maori Trustee matters in their districts. A detailed review of the functions and powers of the Maori Trustee is contained in parliamentary paper G-9 of 1954.

By the Maori Land Amendment Act 1952 the Maori Trustee took over much of the powers, functions, and property of the former Maori Land Boards abolished by that Act.

The Maori Trustee may be appointed executor of the will of a deceased Maori or administrator of an intestate Maori estate. He may also be appointed trustee to manage the property of Maoris who are minors or suffer from some other legal disability, and is statutory trustee of the estates of Maori mental patients. The Maori Trust Office Regulations 1954 prescribe the rates of commission and fees chargeable by the Maori Trustee and the rates of interest payable in respect of moneys held by him in his Common Fund.

In the past the Maori Trustee has been engaged in fairly extensive farming operations principally in the East Coast district, but this activity is now being discontinued, the control of the various farms and stations being handed back to the interested Maoris.

In addition to the administration of Maori reserves, situated mainly in Taranaki, and in Nelson, Greymouth, and other South Island localities, the Maori Trustee has taken over from the Maori Land Boards the administration of large areas of Maori land elsewhere. Most of these lands are, like the Maori reserves, vested in the Maori Trustee, who is responsible for leasing them and distributing the proceeds to the owners. The two principal statutes under which the Maori Trustee acts in relation to the control and leasing of land are the Maori Vested Lands Administration Act 1954 and the Maori Reserved Land Act 1955. Another function taken over from the Maori Land Boards is the collection and distribution to owners of rents from most other Maori land under lease.

The Maori Trustee has extensive lending powers used principally for the settlement and improvement of Maori land, for the establishment of Maoris in business, and for housing purposes. Most advances are made on the security of Maori land.

The following table contains a summary of the financial position of the Maori Trustee as at 31 March 1955 and 1956. The particulars of assets and liabilities are for the twelve months ended in those years.

£

As at 31 March
19551956
Assets—
  Cash200,121144,867
  Investments—
    Government securities2,038,7772,064,959
    Local body debentures112,194121,756
    Mortgages, charges, and advances on overdraft596,875714,316
  Land, buildings, and miscellaneous240,54996,978
      Totals3,188,5163,142,876
Liabilities—
  Amounts held for beneficiaries and sundry depositors2,546,1042,480,634
  Reserves and Appropriation Account598,949653,559
  Sundry creditors, etc.43,4638,683
      Totals3,188,5163,142,876

POWERS OF ALIENATION.—The ordinary provisions as to alienation of Maori land do not affect the power to dispose of land by will, but a Maori cannot will to a European except it be a husband or wife or other relative of the person making the will. A Maori cannot dispose of customary land, whether by will or otherwise. No alienation of Maori land by a Maori has any effect until it is confirmed by the Maori Land Court.

The Court, before confirming an alienation, must satisfy itself, inter alia, that it is not contrary to the interests of the Maori alienating; that the consideration is adequate; that the purchase money or other consideration is paid or secured; and that the alienation is not otherwise prohibited by law. A lease of Maori land cannot be for a longer term than fifty years.

With regard to Maori freehold land, the Court during 1955-56 approved of new leases comprising 35,524 acres to Europeans and 11,418 acres to Maoris, the previous year's figures being 14,120 and 14,989 acres respectively. It confirmed transfers (apart from sales to the Crown) affecting 7,186 acres of freehold land to Europeans and 10,446 acres to Maoris in 1955-56, the corresponding 1954-55 figures being 20,210 and 5,774 acres respectively. During the year ended 31 March 1956 timber-cutting rights were confirmed by the Court in respect of 91,835 acres.

PURCHASE OF MAORI LAND FOR THE CROWN.—The duty of undertaking, controlling, and carrying out all negotiations for the acquisition of Maori lands by the Crown, and the performance and completion of all contracts entered into, is imposed by statute upon the Board of Maori Affairs.

Pending any purchase by the Crown the Governor-General may, by Order in Council, prohibit alienation other than to the Crown. Upon the purchase being completed the land is proclaimed Crown land, and is subject to administration under the Land Act 1948. Where the land is subject to lease when purchased, there may be extended to the tenant the option of purchasing the land from the Crown or having a renewable lease granted to him.

The area of Maori land still held by Maoris in the North Island is estimated at 3,750,000 acres, and in the whole of New Zealand at 4,000,000 acres. In many cases the Maoris are utilizing their land for pastoral and dairying purposes. Other lands are being farmed for them by the Maori Trustee. Extensive areas formerly managed for the Maori owners by the East Coast Commissioner, acting under statutory powers, are in the process of being returned to the management of the owners, who propose to continue farming them under the system of incorporated owners provided by Part XXII of the Maori Affairs Act 1953.

MAORI LAND DEVELOPMENT.—The main activities in new development during 1955-56 have been in the Waikato - King Country, and Northland districts. In the Waikato - King Country considerable areas are being brought back to production by clearance of noxious weeds, and in Northland the pressure of a large Maori population makes development worth while.

In general there is evidence that the standard of Maori farming has improved over recent years, and like their European counterparts the Maori farmers are taking advantage of practical research to improve pastures, stock breeding, etc. Increased numbers of farmers are making provision for supplementary winter and summer fodder as well as recognizing the value of rationed grazing by the use of the electric fence. The establishment of training farms in certain areas has shown good results.

Increasing attention was given to the matter of obtaining secure tenure for individual Maori farmers, either by the purchase of interests of co-owners or by long term leases, and it was found that many of the old prejudices against the sale of small interests and the granting of leases are disappearing.

In 1955-56, 40 Maori settlers were settled on economic holdings. Since the commencement of development to 30 June 1956, 479 settlers (including 88 in 1955-56) had repaid advances and had their lands released from the provisions of Part XXIV of the Maori Affairs Act 1953.

The following table gives statistical data on settlers and holdings at 30 June 1956.

At 30 June 1956TokerauWaikato-ManiapotoWaiarikiTairawhitiAoteaIkaroa and South IslandTotal
Area Acres91,02430,70965,45520,7789,3622,937220,265
Capital value £1,721,1001,002,5961,300,504290,670189,00075,6834,579,553
Settlers, 30 June 1956—
  (a) Dairy No.604142182252714994
  (b) Sheep No.42341224397
  (c) Mixed farming No.15314231321260
Development to date—
  (a) Permanent grass Acres51,17720,78736,81213,8207,5202,135132,251
  (b) Undeveloped but suitable Acres28,6516,5626,0214,41969352346,869
  (c) Not suitable for development Acres11,1963,36022,6222,5391,14927941,145
  (d) Grassed during year Acres1,5268432561602061353,126
Livestock (January figures)—
  (a) Dairy cows No.17,7257,20211,6501,2562,09060940,532
  (b) Other dairy stock No.10,5923,2086,7931641,39022422,371
  (c) Run cattle No.5791,3311,3823,068332876,779
  (d) Sheep No.4,05018,71832,70617,7259,4672,73385,399
  Production for year 1955-56 —
  (a) Butterfat lb.3,288,3041,166,0012,083,707265,643387,079106,0277,296,761
  (b) Wool Bales103358727454179481,869
Units released during the year No.5561683 88
Units settled during the year—
  (a) Freehold No.641 1 12
  (b) Leasehold No.8373  21
  (c) Nominated occupiers No.1 411 7
  Tenure—
  (a) Freehold No.24080111114347
  (a) Leasehold No.1187015644446438
  (c) Nominated occupiers No.251681983388566

Statistical data on Maori land development schemes and stations at 30 June 1956 are now given.

At 30 June 1956TokerauWaikato-ManiapotoWaiarikiTairawhitiAoteaSouth Island and IkaroaTotalLand Under Part XXIV Maori Affairs Act 1953Land Under Maori Trustee
Area of stations Acres40,61831,53892,5804,46456,43926,984252,623231,20921,414
Stations No.231632314795932
Stations returned to owners or otherwise released No.  1311642
Stations returned to owners to date No.111325I4452619
Area in grass Acres16,44617,38049,5233,69527,69115,876130,611116,65013,961
Area in course of development Acres2,1702,245 201327875,3544,724630
Area undeveloped but suitable for development Acres9,4935,55518,03533019,3601,48954,26253,819443
Area not suitable for development Acres12,5096,35825,0224199,2568,83262,39656,0166,380
Area cleared during year Acres2,2801,5192,8272351,2836108,7547,909845
Area grassed during year Acres1,9801,4453,3671,0041,767589,6218,667954
New fencing Chains3,4751,6654,843 3,61135113,94513,93510
New drains Chains474199332 60671,1321,1257
Planned subdivisions No.13190236 1157579579 
Sheep No.16,14738,76292,7646,37536,89820,827211,773196,81314,960
Run cattle No.3,4255,26811,5568495,6132,96529,67626,8672,809
Dairy cattle No.1,865146513630322,5922,57121
Wool production Bales3659442,2041861,0096435,3514,883468

18 D—SURVEYS AND MAPS

INTRODUCTORY.—The surveys of Crown lands, Maori lands, land purchased under the former Settlements Acts and the Land Act 1948, lands acquired under the Land Settlement Promotion Act 1952, and lands acquired or taken for public works, are executed under the authority of the Minister of Lands, and are carried out by staff and contract surveyors registered by the Survey Board under the provisions of the Surveyors Act 1938, which came into operation on 1 July 1939. This Act provides that in order to undertake surveys all registered surveyors must hold annual practising certificates, issued by the Secretary of the New Zealand Institute of Surveyors.

The surveys of private lands for the purpose of the Land Transfer Act 1952 are carried out by private surveyors similarly registered.

Statutory authority for the surveyor to enter upon any land and to place survey marks thereon is contained in several Acts, and the wilful destruction of these marks is subject to a severe penalty.

All surface surveys are made in accordance with regulations laid down and are subject to field check (if thought necessary) and to office examination prior to approval and deposit.

The standard of length is the chain of 22 Imperial yards divided into 100 links, and all linear measurements have to be expressed in terms thereof, and areas in acres, roods, and perches, with decimals of a perch. Standard comparison bands are available in each District Office, as well as at the office of the Surveyor-General.

SURVEY SYSTEM.—Control Survey: Until the abolition of the provincial system of government in 1876 the surveys of New Zealand were conducted by nine survey departments, each independent of the other, and working on no common system. At that date an amalgamation into one department was accomplished. Several of the provincial services had conducted their surveys on a trigonometrical basis, but, as the others were building one survey on another by traverse on magnetic or other azimuthal bearings, without any reference to true meridian or the independent check of triangulation, a state of considerable confusion and uncertainty had arisen in the survey records.

In these circumstances it was necessary to devise a system that would rapidly bring the surveys under control and record, so that settlers might be placed in secure possession of their land, and the Crown be safe to issue titles on reliable plans and descriptions.

The plan adopted was to divide the country into twenty-eight districts, designated "meridional circuits." At the initial or main station of each the astronomical meridian was determined from observations of circumpolar stars, and the latitude from observations of stars north and south of zenith. Lines of bearings on the true astronomical meridian of the initial station were extended throughout its circuit to the plains and valleys where surveys were in progress. Within three years these standard bearings had been so extended as to enable all the surveys to be conducted on the true meridian of their respective circuits. Following immediately on this operation, a base line was measured, and a minor triangulation of two- and three-mile sides, starting from one of the stations of the standard bearing, was spread over the country wherever most required for the check and connection of the settlement surveys. In this way New Zealand was placed very quickly under a system of correct recordable survey, readily adjusted to the requirements of a population rapidly spreading over areas widely apart. The intervening spaces have since been filled in, and the network of triangles is a continuous chain extending over the Islands from north to south, a distance of 1,100 miles. Simultaneously with the minor triangulation of the country, a topographical survey was carried on, giving the positions of rivers, plains, mountains, forests; best lines for future roads; altitudes of valleys, passes, and mountains; and generally a correct representation of the features of the country, to a scale of 2 inches to the mile.

Sectional: Each meridional circuit was subdivided into squares with sides of 1,000 chains in length, the meridian and perpendicular through the initial station being taken as the starting point. These squares, called "survey districts," were further divided into sixteen squares called "blocks," with sides of 250 chains in length. The sections for sale or lease were superimposed upon these and numbered consecutively in each block. Thus each section has for the purpose of record and title registration a complete identification by means of its number, the number of the block, and the name of the district. Unfortunately, it was not found practicable to incorporate in this system the sections which had been alienated prior to 1876; and the provincial registration districts—parishes, hundreds, Crown grant districts, squares, etc.—were perpetuated.

In general, sections were surveyed before selection or disposal, and in these cases the sections were set off with due regard to the topography, thus making each section as far as possible a farm unit with good access, water supply, and those other factors which make for the economical working of a farm.

The boundary lines of the sections were marked at all corners by stout pegs and lockspits, with additional marks where lines were long and straight. In bush the lines were cut out and similarly marked at corners.

The main object of the survey is to enable the settlement of lands to proceed on a system which will give the settler the possession of a definite piece of land without fear of future rival claims. The Crown, which guarantees titles, is also freed from embarrassing claims for compensation caused by overlapping boundaries.

Office Computation and Records: The triangulation of each circuit was computed as plane, neglecting the curvature of the earth, and the triangulation stations were co-ordinated on the meridian and perpendicular passing through the initial station. Road and sectional surveys were made by traverses with theodolite and chain, rigidly connected to the triangulation stations, and the traverse points were similarly co-ordinated. All surveys were thus subject to complete mathematical check, and could be recorded by direct plot from co-ordinates. Areas generally were mathematically deduced, graphic methods being used only for those portions bounded by irregular lines such as streams. All surveys were recorded on index maps, on scales varying from 4 inches to a mile in rural districts to 1 inch to 1 chain in urban districts. The original survey plans, field notes, and co-ordinate tabulations are all carefully stored in fireproof strong-rooms and are readily available to surveyors requiring the use of the information contained.

In a new country it is of the first importance that all surveys should stand the mathematical test of reduction to the meridian and perpendicular of a governing trigonometrical survey, for, unlike the surveys of old countries, where time-honoured landmarks and a settled population conserve boundaries, the surveys of a new country have no such aid, but, instead, have to create boundaries, in the unoccupied wilderness, which at best can only be marked by perishable surface marks. Then, again, the frequent changes of ownership of land in New Zealand facilitated by the Land Transfer system, and the responsibility of the Government in guaranteeing all titles under it, are cogent reasons why the rigid mathematical system of reduction of traverse to the meridian and perpendicular of the stations of a trigonometrical survey should be adopted and maintained.

GEODETIC SURVEY.—Increasing Accuracy: On completion of the original triangulation in the meridional circuits it was found that there were considerable discrepancies in the lines on the boundaries of the circuits, which were common to two or more. These discrepancies were caused principally by two factors—the accumulation of observational errors in the triangulation and the want of a common standard of length in the measurement of the bases. These differences were not sufficiently large to cause any embarrassment while traverses were made with the gunter chain and early pattern theodolite, but on the adoption of the long steel tape in the early "seventies," and the increased accuracy of later model theodolites, part of the value of the triangulation was impaired. Thus, while the network of permanent marks still controlled the position of boundaries, the field traverses of equal or even greater accuracy than the triangulation sides could no longer be used as definite checks.

First Order Triangulation: Early in this century it was decided to throw over the country a network of large triangles with a high degree of accuracy and from this to recompute the original minor triangulation to conform. In 1904 twelve steel bands were obtained, each with a Board of Trade certificate as to its correct length at a defined temperature and tension. Base lines were selected, and five in the North Island were measured between 1909 and 1914, when the outbreak of the First World War stopped further progress. In 1922 work was resumed, to be again stopped by the depression in 1931. After five years' cessation this work was resumed in 1936, the first order network observations being completed by the end of 1941, when it was necessary to divert the staff engaged thereon to the urgent task of topographical mapping for the Army. One of the three selected base lines in the South Island was measured temporarily to provide a more adequate control for the plotting of the topographical map series in the Southland district.

Field operations of the geodetic triangulation were completed in 1948, when all the necessary longitude fixes were made. The measurement of the base lines in the South Island was completed in the 1947 season.

The observational work has been done to an accuracy well within the limits set by the International Association of Geodesy for work of the highest precision.

Astronomical Positions: Latitude and azimuth observations have been taken in conjunction with the first order triangulation, about one station in every three being so observed. Longitude observations by wireless telegraphy have been made at stations 100 miles apart, so that in conjunction with latitude and azimuth these stations may be used for Laplace equations to control the entire triangulation.

The work of adjusting the observations and computing co-ordinates of the first order triangulation was sufficiently advanced in 1949 to establish a new datum which has already been adopted for some mapping work and in terms of which it is intended to bring ultimately all geographic and grid co-ordinates. This datum is known as the Geodetic Datum, 1949.

Second and Third Order Triangulation: It was originally anticipated that the old minor triangulation could be utilized after readjustment to conform to the new first order, but after attempting to do this it was found that larger corrections than could now be tolerated were being introduced into the old work. In some instances this was undoubtedly due to actual displacement of old stations, but in the majority of cases the fault lay in the old triangulation not being of sufficiently high standard.

In this way accurate geographical results over New Zealand will be moulded into one harmonious whole on a co-ordinated system and on a basis which gives the correct relation of one part to another, with no possibility of overlapping where different circuits join.

In most districts, over selected areas, the geodetic survey party has simultaneously broken down the first order triangulation into second order and, where necessary, third order triangulation.

Precise Levelling: Approximately 827 miles of precise levelling have been carried out for the purpose of correlating the level data of irrigation and drainage and other engineering works. This type of levelling has been carried out in accordance with international standards of accuracy— namely, 0.012 feet or 0.144 inches per mile.

These levels are at mean sea-level datum determined from the tidal records of the principal tidal stations or of tide gauges established specially for that purpose. The traverses are referenced at approximately ten-mile intervals by fundamental bench marks and at approximately one-mile intervals by permanent bench marks.

This work is being further extended to meet the requirements of national drainage, irrigation, hydro-electric, and river-control development, where related and co-ordinated levels in terms of a fixed datum are essential.

STANDARD SURVEYS.—In order to more adequately correlate and redefine old boundary marks for land-title purposes and to provide a permanent standard of reference for future surveys in cities and boroughs where land values are high, and on highways and on main arterial roads where modern road surfaces have eliminated survey marks, a precise survey is carried out, all intersections being referenced with permanent standard marks, normally concrete blocks protected by an iron cover.

These surveys are of two classes—(1) those in the cities and boroughs, being of standard of accuracy of 2 inches to the mile, the cost of which is borne partly by the local authority concerned and partly by the Department of Lands and Survey and (2) those carried out on highways and arterial roads to a lesser standard of accuracy, for the purpose of referencing survey marks lost or obliterated by road works and surfaces.

These standard traverses will in the future be correlated with precise levelling traverses, thus providing a standard level datum for engineering works.

AERIAL SURVEY AND TOPOGRAPHICAL MAPPING.—The incidence of war emphasized the need for up-to-date topographical maps of New Zealand. The use of the aerial photograph for the production of topographical maps had at the same time revolutionized the methods of production, requiring the introduction of an entirely new technique.

Up to 1936 several hundred square miles of topographical mapping had been carried out by plane-table methods in localities scattered throughout the country. With the introduction of the aerial photograph for mapping purposes in 1935, a co-ordinated mapping policy was laid down by the Army authorities. A revised map series on the scale 1 mile to an inch on an approved map grid was adopted, each sheet covering an area of 45,000 yards by 30,000 yards. Later a 1: 25,000 map series was also introduced, each sheet covering an area of 15,000 yards by 10,000 yards.

At the outbreak of war in 1939 an area of 1,000 square miles had been mapped on the scale 1 mile to an inch in the Hawke's Bay District, the first map sheet being published in March 1939.

During the war period the Department was made responsible for topographical mapping for military purposes. All the available resources of the Department and the services of a private aerial mapping company were concentrated on the production of maps in this connection.

Owing to post-war activities staff previously employed on topographical mapping was engaged on other survey work mainly connected with land settlement. In 1949 the Department was able to resume its mapping operations in the Rotorua-Taupo region, and to date has completed 2,600 square miles of large-scale mapping in this area.

Extensive use is made of the aerial photographs for other than purely mapping purposes. All types of land and engineering development, investigations into geological resources, afforestation, and town and rural planning are now based on data extracted from the aerial photographs. The Department is responsible for the maintenance of a complete library of aerial photographs, which are made available for all national purposes. All orders for photography required by any Department of State are co-ordinated and priorities for such photography fixed by a co-ordinating committee. By such co-ordination it is expected that a basic photographic coverage of the whole country will be completed in the next few years.

Since the war additional plotting equipment for the production of maps from aerial photographs has been acquired. The mapping equipment in the Photogrammetric Branch now includes a Wild A5 Autograph, three Wild A6 stereoplotters, six Multiplex bars, a Saltzman Vertical Mapping Projector, and extensive darkroom facilities. With this equipment, topographical mapping work is undertaken for all Government Departments, and also some work has been done for Fiji and Western Samoa.

TIDAL SURVEY.—The tidal work carried out by the Department at the commencement of the survey operations in New Zealand consisted of determinations of mean high-water mark (H.W.M.) for the purpose of defining the boundary of land abutting on tidal waters.

Later the adoption of mean sea-level as the datum of reference for the heights shown on the maps of trigonometrical and precise levelling surveys led to a more accurate system of tidal observations being initiated; but it was not until 1909 that a complete tidal survey was inaugurated, at the request of the Admiralty, to include the predictions of the times and heights of high and low water of the ports of Auckland and Wellington in the Admiralty Tide Tables.

The tidal observations are made mainly by self-registering tide-gauges, in which a curve is traced which shows the height of the water at any time above an arbitrary datum. This curve is decomposed, by a process devised by Lord Kelvin, and known as "harmonic analysis," into its harmonic elements. These components are now computed for the ports of Auckland, New Plymouth, Wellington, Lyttelton, Dunedin, Bluff, and Westport, and from them the predicted times and heights of high and low water are obtained by means of the tide predictor at the Tidal Institute, University of Liverpool, and published in advance in the New Zealand Nautical Almanac, the Admiralty Tide Tables, and several of the maritime publications of foreign nations.

The seven ports for which tide tables are prepared serve as standards of reference on which to base, by means of tidal difference, the times and heights of high and low water of all the other ports in New Zealand.

GEOGRAPHIC BOARD.— The principal functions of the New Zealand Geographic Board, established under the New Zealand Geographic Board Act 1946, are as follows:

  • To adopt rules of orthography and nomenclature in respect of place names in New Zealand.

  • To examine cases of doubtful spelling of place names, and determine the spelling to be adopted on official maps.

  • To investigate and determine the priority of the discovery of any geographic feature.

  • To collect original Maori place names for recording on official maps.

  • To determine what alien names appearing on official maps should be replaced by British names.

  • To investigate and determine any proposed alteration of a place name.

The Board, which replaced the honorary Geographic Board previously in existence, consists of the Surveyor-General, two representatives of the Maori race, a representative of the New Zealand Geographic Society, a representative of the Federated Mountain Clubs of New Zealand, and two other persons.

MISCELLANEOUS.—The Department, in addition to the activities outlined in the preceding paragraphs, carries out many miscellaneous functions, among which are the drawing of maps and diagrams for special publications, the periodic preparation of maps for census and electoral purposes, the copying of maps and plans by photostat process, the preparation of aerial photograph mosaics and enlargements for departmental purposes, compilation of maps and data for town and regional planning purposes, the control and administration of the subdivision of land in counties required for housing, the preparation of special topographical maps for land settlement, engineering and scientific development, the preparation of maps for air navigation requirements, the production of all maps for the Armed Services, and many other cognate duties requiring the services of the surveyor or the draughtsman.

PUBLICATIONS.—Reports: An annual report of the departmental activities is published as a parliamentary paper, C-1A. At intervals a publication called "The Records of the Survey" is issued, the latest volume being numbered five. The publication of professional papers is now discontinued, these being incorporated in the Records.

Maps.—Map sales agencies are maintained at each of the district offices except Wellington and at the Head Office of the Department of Lands and Survey. In addition, about one hundred private selling agents have been appointed throughout the country. All maps for sale are listed in the "Catalogue of Maps" published by the Department. The catalogue lists maps under the following headings:

  1. GENERAL AND MISCELLANEOUS MAPS.—General Maps New Zealand are small-scale maps of New Zealand and larger scale maps which are not included in the cadastral and topographical section of the catalogue.

    Pacific Islands Maps are of islands within the territories of New Zealand, the trust territory of Western Samoa, and Norfolk Island.

    Miscellaneous Maps are maps which have been prepared for special purposes, and in general include those of interest to mountaineers and tourists.

  2. (2) CADASTRAL MAPS.—The following series are published by the Department, these maps showing land title boundaries and land designations:

    1. Survey District Series—1 inch to 1 mile.

    2. County Series—1 inch to 1 mile.

    3. Town Map Series—At various scales from 40 inches to 8 inches to 1 mile.

  3. TOPOGRAPHICAL MAPS.—The following medium and large scale maps are published:

    1. 1:63,360-1 inch to 1 mile.

    2. 1:25,000.

    3. 1: 15,840-4 inches to 1 mile.

    4. 1: 10,000 to 1: 20,000—Street maps of towns.

    The 1: 63,360 series now covers approximately half of the country and embraces most of the settled areas. The 1: 25,000 series is as yet restricted to the closely settled areas at the main centres of population. The 1: 15,840 series is confined to certain areas of undeveloped lands which are being developed as farmlands.

  4. MOSAIC MAPS.—The sheet lines of the mosaic maps conform to the sheet lines of the 1: 25,000 topographic series. The mosaic maps are gridded and show place names and are published at scale 1: 25,000 and at scale 1: 15,840 (4 inches to 1 mile).

  5. AERONAUTICAL CHARTS.—Aeronautical charts published include—

    1. Aerodrome approach and landing charts.

    2. Plotting charts at scales 1: 1,000,000 and 1: 3,000,000.

    3. Aeronautical charts 1: 500,000.

18 E—VALUATION OF LAND

GENERAL.—The necessity for fixing equitable land values arises in many of the relations of the General Government and local governing authorities with the individual. In particular they are required in connection with the following:

  1. The levying of land tax.

  2. The apportionment of rating levies over contributory local authorities.

  3. The levying of rates by local authorities.

  4. The advancing of money on mortgage by Government Departments and by trustees under the Trustee Act.

  5. The assessing of stamp, estate and gift duties.

  6. The fixing of prices payable by lessees to the Crown for acquiring the freehold of Crown lands.

  7. In assessing the compensation payable where land is taken under the Public Works Act and certain other statutes.

  8. In estimating the prices payable in alienations of Maori lands.

SYSTEM AND PROCEDURE.—Prior to 1896 the valuing of land was not conducted on a uniform basis. Each State Department and local authority employed as valuers such persons whom it thought fit, and estimates of values by different authorities varied considerably. To bring about some order the Government Valuation of Land Act 1896 set up a separate Department of State charged with the duty of assessing the values of real estate for taxation and other purposes of the General Government and for local rating purposes. The present law relating to the valuation of land is contained in the Valuation of Land Act 1951 (which consolidated previous legislation), and in the Land Valuation Court Act 1948.

The work of the Valuation Department is directed by the Valuer-General, the actual work of valuing being done by District Valuers and assistant valuers. The duty of a valuer is to examine each property and to estimate to the best of his ability (1) the unimproved value of the land contained therein, (2) the value of the buildings (if any) or other improvements (if any) upon such land, and (3) the capital value of the property.

Valuers are enjoined not to strain after high values, nor to accept special prices paid for land in exceptional circumstances, but to determine the value neither above nor below the fair selling value in view of the many and diverse purposes for which the values are used.

Generally, under the New Zealand law the increased value attaching to any piece of land which is due to the successful working of other lands in the district, or to State or local authority expenditure on public works, or to the general prosperity and development of the country, forms portion of the "unimproved value".

"Improvements" on land are defined, with certain provisos, as any work done or materials used on or for the benefit of the land by any owner or occupier resulting in an increase in the value of the land.

The "capital value" is the sum of the "unimproved value" plus the value of "improvements".

THE VALUATION ROLL.—The Valuation of Land Act directs the preparation of a valuation roll for each district over which a local authority has rating jurisdiction, setting forth in respect of each separate property the following particulars:

  1. The name of the owner of the land, and the nature of his estate or interest therein, together with the name of the beneficial owner in the case of land held in trust:

  2. The name of the occupier within the meaning of the Rating Act 1925:

  3. The situation, description, and area of the land:

  4. The nature and value of the improvements:

  5. The unimproved value of the land:

  6. The capital value of the land:

  7. Such other particulars as are prescribed.

Revision of Rolls.—District valuation rolls are revised by the Valuer-General at such dates as the Governor-General in Council from time to time directs. Previously there were no fixed periods between revisions. Since the necessity for revision depended upon the extent to which values had moved since the previous revision, the periods between revisions varied considerably between old-established and currently-developing districts. The considerable changes in land values over recent years have caused a wider realization of the need for up-to-date valuations, and it is now provided that valuation rolls must be revised at intervals of not more than five years unless the Governor-General in Council directs otherwise.

There is provision that in the revaluation of a borough rating on the unimproved value the Governor-General in Council may direct that the revision is to be confined either to the unimproved values only or to the value of improvements only, with consequent adjustments of the capital values.

Alterations During Currency of Rolls.—At any time between the revisions of district rolls the Valuer- General may readjust, correct, or bring up to date the entries therein in consequence of—

  1. Any improvements being added to or removed from the land:

  2. Any change in the ownership or occupancy of the land:

  3. Any new valuation being made on the requirement of the owner of the land:

  4. Any land being omitted from the roll, or the name of the owner or the description or other particulars of the land being erroneously entered therein:

  5. Any subdivision of the land:

  6. Any lease or any other terminable charge or interest affecting the respective interests of the respective owners.

In new valuations as a consequence of (c) or (e), the aim is to preserve uniformity with the existing roll values of comparable parcels of land.

The Supplementary Roll.—There is, in addition to the district valuation roll for each district, a supplementary roll for that district. The supplementary roll may be used for the same purposes as the district roll except that it may not be used for the assessment of land tax or local rates. Generally, all special valuations of land made during the currency of a district roll for particular purposes—e.g., the granting of loans by Government Departments or trustees on the security of lands, the assessment of stamp, gift, and estate duties—are entered on the supplementary roll, but not on the district roll. There is generally a right of objection to such special valuations procedurally similar to the objections discussed under the next heading.

Objections to Valuations.—When a district valuation roll is revised the Valuer-General addresses to each owner, and also to the owner concerned when any particular valuation in that roll is altered, a notice showing the new valuation and naming a date before which all objections (in writing) to the values must be lodged. In the case of a revision of a district roll the Valuer-General, any local authority, or any owner whose name appears on the roll, may object to any valuation thereon. Where a particular property only is revalued, only the owner has a right of objection.

The Valuer-General refers any objections to his District Valuers for reconsideration. He may then decide (1) of his own motion to refer the objection to the Land Valuation Court, (2) to alter the valuation to the extent claimed, (3) to alter the valuation to such extent as is agreed upon with the objector, or (4) to decline to alter the valuation. If his decision is either (2), (3), or (4), he serves notice of it on the objector, and on the owner if other than the objector. Either of these may notify the Valuer-General within fourteen days that he desires the objection to be heard by the Land Valuation Court. If no such notice is received the Valuer-General's decision is deemed to be assented to, and the roll is amended, if necessary, to give effect to his decision.

LAND VALUATION COURT.—The Land Valuation Court Act 1948 established the Land Valuation Court, transferred to that Court the jurisdictions previously exercised by Assessment Courts under the Valuation of Land Amendment Act 1945, and abolished the latter Courts. The Court consists of three members appointed by the Governor-General in Council, one of whom is the Judge of the Court. In addition to its jurisdiction under the Valuation of Land Act the Court hears claims for compensation under the Public Works Act 1928 and determines values under the Land Settlement Promotion Act 1952.

The Act also established Land Valuation Committees which, in the exercise of their powers and functions, are subject to the general jurisdiction of the Court. A local authority may appoint a person, other than a member or paid officer of a local authority, to be an additional member of the Land Valuation Committee exercising its functions in the district of that local authority. This provision is limited to cases where objections to valuations of property situated in that local authority's district are being heard.

The Valuer-General files with a Registrar of the Land Valuation Court a list of objections, including those which of his own motion he has decided to refer to the Court and those which the objectors desired to be heard by the Court. Copies of the objections are filed with the list. The Registrar refers the objections to the appropriate district Land Valuation Committee for hearing, and the Committee embodies its determination in each case in a formal order which, after a lapse of fourteen days, is sealed by the Registrar and becomes an order of the Court. Within the period of fourteen days, however, either the Crown representative, or any one affected by the order, may appeal to the Land Valuation Court, or the Court of its own motion may amend the order. Except that the Judge of the Court may on the application of any party to proceedings, or of his own motion, state a case for the opinion of the Court of Appeal on a question of law, the decisions of the Land Valuation Court (either decisions of the Court itself or orders of the Committees sealed by the Registrar) are final.

In the case of an objection to a valuation being allowed, the new valuation dates back to the date at which the valuation objected to would have been effected had no objection been lodged.

If any owner who has objected to a valuation made at a revision of a district roll is not satisfied with the value of the land as fixed by the Land Valuation Court's order, he may, within fourteen days of the sealing of the order, give notice to the Valuer-General that he requires the capital value to be reduced to the value which he (the owner) considers to be the fair selling value as specified in his notice (but not less than the aggregate amount owing on mortgages or other charges on the land), or the land to be acquired on behalf of Her Majesty, or sold, at that value. There is also provision that if the Valuer-General is of the opinion that the value has been fixed by the Court at less than the capital value, he may within fourteen days after the sealing of the Court's order require the owner to consent to what he (the Valuer-General) considers is the fair capital value, and, failing such consent being given within thirty days after notice is delivered, he may, with the approval of the Governor-General in Council, acquire the property at that value on behalf of Her Majesty.

VALUATIONS IN RELATION TO RATING.—The district valuation roll so long as it continues in force is by law the roll from which the valuation roll of every local authority rating on the capital or on the unimproved value is framed.

Owing to the heavy decline in values during the early nineteen-thirties, and the impracticability of a universal revaluation, the provision enabling new valuations to be made was availed of by many owners with the object of reducing their rate payments. In order to maintain rating equity the Valuation of Land Amendment Act 1933 authorized local authorities to levy rates upon a proportionate part (not being under 75 per cent) of values upon the roll. Where an individual owner had obtained a revaluation, the lower of either the new figure or the proportionate part of the previously existing figure was taken. Since 1945 the right of objection to such a new valuation is limited to the claim that uniformity has not been preserved with existing roll values of comparable parcels of land.

The Urban Farm Land Rating Act 1932 (amended in 1933, 1935, 1944, and 1955) provides for rating relief for farm lands subject to rates levied by Borough (or City) Councils, Independent Town Councils, and County Councils in respect of county towns. The Act provides that these local authorities may assess valuations for rating purposes for such farm lands lower than the values for the same lands appearing on the district valuation rolls. There are rights of objection to such valuations, either to a specially constituted Assessment Court where the valuations are to appear on a farm land roll, or to a Magistrate if special rateable values are being assessed for the ordinary rating roll. The values are generally revised at five-yearly intervals.

A heritage of the days of independent valuations by local authorities is the provision by which they can rate on the annual (rental) values of properties within their areas, these values being assessed by the local authorities' own valuers. The annual value is defined as the rent at which a property would let from year to year reduced by 20 per cent in the case of houses, buildings, and other perishable property, and by 10 per cent in the case of land, but it may not be less than 5 per cent of the value of the fee simple. A new valuation roll in this regard is prepared either annually or triennially.

CAPITAL AND UNIMPROVED VALUES OF LAND.—General valuations of land for the whole of New Zealand were made periodically up to the year 1897-98. Since that year no general valuations for the whole country have been made, but portions are revalued from time to time. As previously mentioned, however, it is now provided that every revision of a district valuation roll shall be followed by a further revision within five years, unless such revision is postponed by the Governor-General in Council. The figures in the following table, showing valuations over a number of years, therefore represent general valuations up to 1897 only, while for subsequent years the figures include the latest valuation available of each division.

GROSS CAPITAL AND UNIMPROVED VALUES £

At 31 MarchCapital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)At 31 MarchCapital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)
1,87899,566,67962,573,8681931667,911,212331,634,774
1,885113,270,649 1932662,829,264321,798,700
1,888111,137,71475,497,3791933653,707,517314,556,174
1,891122,225,02975,832,4651934650,362,355309,770,390
1,897138,591,34784,401,2441935637,604,203301,137,513
1902154,816,13294,847,7271936635,801,798295,695,574
1905197,684,475122,937,1261937632,229,720287,844,804
1907236,644,536149,682,6891938636,362,641282,326,015
1909271,516,022172,759,9481939652,898,894282,806,212
1911293,117,065184,062,7981940660,524,008278,880,855
1913340,559,728212,963,4681941673,118,250277,541,575
1915371,076,683230,705,1471942681,921,681276,884,859
1916389,164,729241,322,2551943684,180,966276,881,168
1917405,466,071251,087,7081944688,794,796277,038,582
1918421,383,373260,921,8121945697,365,953277,494,868
1919445,533,445275,988,4091946710,425,005279,214,040
1920470,093,697290,880,2641947746,412,384284,274,437
1921518,584,318317,631,2451948796,037,683291,617,238
1922544,503,376329,174,3371949889,268,331307,152,159
1923553,403,794330,790,9911950985,879,820324,465,347
1924568,500,653333,869,58119511,112,746,940349,159,931
1925587,349,575339,310,26019521,314,879,131394,227,539
1926603,250,306341,047,95219531,532,357,718449,813,658
1927618,264,093341,519,10719541,702,727,321487,124,729
1928631,454,676335,2.17,07519552,068,312,525579,128,360
1929655,906,887344,757,79619562,307,585,132644,410,045
1930664,571,181338,887,411 

The table shows a continuous decrease in land values from 1929 to 1943. Probably the lowest point in real values was reached about 1934, and the decreases shown after that year merely indicate that the new valuations being made were still at levels lower than the existing pre-depression figures. After 1943 land values were stabilized through the operation of the Servicemen's Settlement and Land Sales Act 1943, and the increases shown to 1950 mainly reflect the writing into new valuations of increases which had occurred prior to 1943.

The lifting of land sales control on urban properties from 23 February 1950 was reflected in the 1951 general revaluations of boroughs and cities. County revaluations did not, however, reflect the transition to a free market basis until the 1952 revaluations, the effect of the higher basis having been postponed twelve months as provided for by section 38 of the Statutes Amendment Act 1950.

The fact that land valuations are not continuously up to date has the effect in the above table of delaying the appearance of other than the steepest movements and of reducing their apparent magnitudes. Consequently, the movements in the table cannot be regarded as indicative of the trends in land values at any given time. Rural land values are generally dependent on the prices received for our exports of primary products, and these prices are also the major influence affecting the country's economy and to some extent price levels generally. If it were not for the irregular periodicity of revisions of valuations, the movements in unimproved values in the preceding table could be expected to follow the trends of export prices shown in Section 36, though with less exaggerated movements and perhaps an upward bias due to improved efficiency in farming methods, growth of population, improved internal transport, and other facilities, etc.

Capital values are influenced not only by the prices of primary products (in so far as they affect the unimproved value included in the capital value and indirectly by their effect on price levels generally), but also by the amount of activity in the building and construction industry.

The values shown in the foregoing table and in that following are the gross values; they include the value not only of rateable properties, but also of churches, schools, unoccupied Crown lands, and other lands exempt from local rating.

GROSS VALUES

As at 31 MarchNumber *North IslandSouth IslandNew Zealand
Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)

*As constituted on 1 April.

 £(000)£(000)£(000)£(000)£(000)£(000)
Counties
1952129373,253123,352186,33273,875559,585197,228
1953129438,049139,657208,45478,748646,504218,405
1954129499,218153,752222,88383,670722,101237,422
1955129578,840172,579245,17988,067824,019260,646
1956125651,197189,604305,943110,951957,140300,555
Boroughs
1952134526,957138,557209,27654,192736,234192,749
1953137640,848170,907227,62056,836868,468227,743
1954144717,471187,727254,49560,499971,966248,225
1955146893,123231,573343,14085,6391,236,263317,212
1956145982,919255,608356,56186,5081,339,480342,116
Independent Town Districts
19522917,0643,9451,99630619,0614,251
19532714,9743,3322,41133317,3863,665
1954216,4821,1822,1782968,6601,478
1955196,0071,0302,0242418,0311,270
1956208,1311,4462,83429310,9651,739
Grand Totals
1946 483,837181,282226,58897,932710,425279,214
1947 513,590186,070232,82298,205746,412284,274
1948 550,732192,177245,30599,440796,038291,617
1949 628,190206,261261,079100,891889,268307,152
1950 690,084215,935295,796108,531985,880324,465
1951 782,632235,253330,115113,9071,112,747349,160
1952 917,274265,854397,605128,3731,314,879394,228
1953 1,093,872313,896438,486135,9171,532,358449,814
1954 1,223,171342,660479,556144,4651,702,727487,125
1955 1,477,970405,183590,343173,9462,068,313579,128
1956 1,642,247446,658665,338197,7522,307,585644,410

RATEABLE VALUES.—The values quoted earlier in this Section relate to gross values (i.e., the value of all property, whether exempt from local rating or not). The following summary indicates rateable values for counties, boroughs, and independent town districts as at 31 March 1956.

£

North IslandSouth IslandNew Zealand
Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)Capital Value (Land and Improvements)Unimproved Value of Land (Included in Previous Column)
Counties589,405,791179,813,666281,231,628106,185,418870,637,419285,999,084
Boroughs888,695,314230,697,385321,479,92079,275,7421,210,175,234309,973,127
Town districts (independent)7,170,4651,226,5452,506,475270,0259,676,9401,496,570
      Totals1,485,271,570411,737,596605,218,023185,731,1852,090,489,593597,468,781

The next table shows the percentage distribution of area and population as at 17 April 1956, and of rateable property values between the different types of local authority districts as at 31 March 1956.

Local Authority DistrictAreaPopulationRateable Property Values
Capital ValueUnimproved ValueValue of Improvements

*Less than 0.05 per cent.

Percentage Distribution
Counties99.536.541.647.939.2
Boroughs0.562.857.951.960.3
Town districts (independent)0.0*0.70.50.20.5
      Totals100.0100.0100.0100.0100.0

It will be observed that there is a closer correlation between value of improvements and population distribution than in the case of unimproved values and population distribution, with capital values consequently taking up an intermediate position.

Particulars of values for each county, borough, and independent town district in considerable detail are contained in the Local Authorities Handbook, where similar data are also given for dependent town districts and for road districts.

Chapter 19. SECTION 19—PRODUCTION: GENERAL

Table of Contents

ESTIMATES of the value, and of movements in the volume, of physical production have been made in New Zealand for many years, considerably antedating the technique of national income estimates. The latter, of course, take into account the value of the tertiary services of transport, commerce, administration, social services, etc., as well as physical production; the earlier series were concerned only with the last named. The estimates of physical production in this Section are based in the main on the production data which appear in the seven Sections following.

GROSS FARMING INCOME.—Farming occupies such an important position in the economic structure of New Zealand that statistical information relating to farm production is vested with special interest. Statistics of quantitative farm production and prices received by farmers constitute the basic data used in the computation of estimates of aggregate receipts from sales of farm produce. Such charges as sales commissions and producer boards' levies, forming part of the value of the finished products but not of returns to the farmers, are excluded. The figures do not purport to show the aggregate net income from farming after all expenses of farm operations have been met. They are intended to afford an indication of the income available to farmers as a whole to meet current expenses of farm operation, living costs, interest payments, and all other costs. Arising out of the preparation of the Farming Sector Account of the National income series, the estimates were revised prior to publication of the 1955 Year-Book. It was considered that within the limitations set out below, the series served a useful purpose and no major change in concept was required, but various modifications were made with the double purpose of obtaining greater consistency and simplifying calculations where this could be done without reducing accuracy.

For the gross farming income figures shown in this volume a further series of revisions has been made, in accordance with reductions in the estimates of returns to farmers from wool, referred to later in this Section.

Except in the cases indicated in the next paragraph, no attempt has been made to exclude from the scope of the compilations that portion of marketable farm produce which may be consumed on the farm. Similarly, that portion of farm produce which is sold to other farmers as material for further farm production is in general included. For example, the value of production of grass seeds is included under the heading "Agricultural Produce," although—except for exports—almost the whole of this crop is used for the sowing or renewal of pasture lands. An exception, however, occurs in the case of inter-farm sales of livestock, whether the animals are for breeding or fattening, as no data are available on which to base an estimate of the aggregate annual value of such sales. With this exception, the totals shown for all farm produce thus represent the total income (including receipts from sales to other farmers), plus certain allowances for farm produce used on the farm. On the other hand, products of kitchen gardens and of other activities more intimately associated with the home than with the farm do not come within the ambit of this inquiry.

Production of green-fodder crops, turnips, and mangolds is not included. The view taken is that production of these crops is a normal and essential part of farm routine to be regarded more in the nature of a farm cost than as production of a saleable commodity. Consequently, the unknown—but, it is believed, very small—proportion sold of the total production of this class of farm produce is omitted from the totals shown. It is arbitrarily assumed that 20 per cent both of grasses and clovers cut for hay, and of oats cut for chaff or hay, come within the scope of this inquiry, the remainder being omitted for reasons similar to those advanced in the case of green fodder, etc.

The division into the three groups—(1) Agricultural, (2) Pastoral, and (3) Dairying, Poultry, and Bees—has been made entirely on the basis of the nature of the produce. The values of all livestock slaughtered, including bobby calves, cull cows from dairy herds, and pigs, are included in the pastoral group.

The principal items included in the agricultural group are wheat, oats, and other grain crops, grass seeds, potatoes, onions, tobacco, linen flax, orchard produce, and produce of market gardens, nurseries, hop gardens, etc. The prices at which the various commodities are valued are, in general, the prices received by farmers in the early months of the year, when the crops are harvested. Transport charges from farm to market and commission on sales are excluded.

The principal items included in the pastoral group are livestock and wool production. Slaughterings of livestock have been assessed on the basis of values (alive) at freezing works, deductions being made to cover the cost of transport from farm to works, saleyards, etc., and of commission on sales of livestock. The value of store stock or young lambs sold by one farmer to another is counted only once—that is, when sold for slaughtering as fat stock. In the 1955 revisions referred to earlier, slaughterings during years ended 30 June were substituted for the figures for years ended 31 March as used hitherto.

Shorn wool production is valued at the average prices realized at sales or appraisals held during each season, the aggregate arrived at representing the value of wool produced in each season at average sale or appraisal prices ruling during that season. No adjustments are made to cover the unknown increase or decrease in the total ultimate return from the season's production owing to higher or lower prices realized for wool carried over and sold in a subsequent season. Deductions have been made to cover the cost of transport of wool to selling centres, and brokerage. In the latest series of revisions, deductions have also been made for additional charges by brokers for receiving into store, cataloguing etc., and for such services as binning, reclassing, and skirting when performed by brokers.

The estimates for the pastoral group take into account the value of real income represented by changes in the numbers of livestock held on farms, which in individual years may represent a marked accretion or reduction in terms of real income. These changes in cattle and sheep are now assessed as at 30 June instead of as at 31 January or 31 March as was the case previously.

The largest individual item included in the dairying, etc., group is the pay-out to suppliers by butter, cheese, and dried milk, etc., factories during each of the dairy seasons shown. From 1938-39 onwards this is on a farm-gate basis, an estimated allowance for the cost of milk transport to cheese factories being deducted. An estimate of the value of human consumption of raw milk at farm-gate prices is also included, together with the value of butter produced on farms for home use or for sale. The available data permit of only a rough estimate of the value of poultry products, which, with bee products, are included in this group mainly for purposes of convenience.

The following table shows the revised figures of gross farming income (in £N.Z. millions) for each of the eighteen production seasons from 1938-39 onwards, which is as far back as the two recent series of revisions were carried. The total effect of the changes in method is not great, particularly in the earlier years of this period, so that comparisons between these figures and those for still earlier seasons given in previous issues of the Year-Book are by no means invalidated. The table also shows the relative contributions of the three groups in each year, in the form of percentages of the total of all farm production.

Production YearAgricultural ProducePastoral ProduceProduce of Dairying, Poultry, and BeesAll Farm Produce
ValuePer CentValuePer CentValuePer CentValuePer Cent

* Provisional.

 £(m.) £(m.) £(m.) £(m.) 
1938-398.31230.94431.04470.1100
1939-409.61331.44234.04575.0100
1940-4110.31237.74536.84384.8100
1941-4211.41437.14435.34283.8100
1942-4313.31637.34434.24084.8100
1943-4414.41638.84533.63986.7100
1944-4516.41645.94540.339102.6100
1945-4615.91743.54536.73896.1100
1946-4715.91450.84644.640111.3100
1947-4817.41366.54951.938135.7100
1948-4919.61369.04758.240146.7100
1949-5020.81199.55463.935184.3100
1950-5120.87198.46871.525290.7100
1951-5223.511112.95183.038219.4100
1952-5324.49143.35594.036261.7100
1953-5429.311153.95692.333275.4100
1954-5530.811161.95791.532284.2100
1955-56*32.411155.35594.534282.1100

In the course of the compilation of the indices of volume of total production given later in this Section index numbers have been compiled showing the movements in volume of farm production. For the compilation of these index numbers a computation has been made for each season showing what the aggregate annual value would have been had 1938-39 prices been constant throughout the period. From the resultant aggregates, index numbers have been compiled which measure the movements in the volume of production; for, since prices were assumed to be constant, volume is the only variable factor in the aggregates. The coverage of the pastoral production series includes allowances for changes in the numbers of livestock on farms.

In the following table index numbers of value and volume on the base: 1938-39 (= 100) are given, and these give a clearer idea of the extent of year-to-year changes.

Production YearAgriculturalPastoralDairying, etc.All Farm Produce
ValueVolumeValueVolumeValueVolumeValueVolume

* Provisional.

1938-39100100100100100100100100
1939-4011611910298110107107104
1940-41124126122111119115121115
1941-42137128120110114109120111
1942-43160139121105110102121107
1943-4417314812610610896124106
1944-45198160149113130105146115
1945-4619214214111211892137107
1946-47192152164110144102159111
1947-48210144215115167104194114
1948-49236156223113188113209118
1949-50251150322123206117263123
1950-51251153642124231123415127
1951-52283148365124268123313126
1952-53294146464130303130373132
1953-54353162498136298123393133
1954-55370159524141295125405136
1955-56*393160508146305129405140

In recent seasons the general upward movement in prices has resulted in the value series outstripping the volume series. Wool prices have been a major factor affecting the pastoral and all farm produce value series, their influence being clearly seen in the indices. Over the seventeen-year period between the earliest and latest years shown, the annual increase in the volume series has averaged 2.0 per cent compound.

FARM PRODUCTION: EXPORTS AND NEW ZEALAND CONSUMPTION.—Estimates of the relative importance of exports and of consumption within New Zealand in the disposal of farm produce have been compiled by utilizing the statistics of gross farming income, in conjunction with statistics of trade in farm products.

In the paragraphs covering the statistics of gross farming income it is explained that these estimates were framed on the basis of "on the farm" values in order that they might indicate the gross receipts by the farmer, after making provision for transport charges and other expenses incurred in the marketing of produce.

In compiling the statistics of the relative importance of the New Zealand market and of export markets for farm products the value of exports has been assessed at the "farm" value of the commodities concerned, and not at the f.o.b. declared value for export. This adjustment has been made in order to ensure that both sets of statistics from which the comparison is made are on the same value basis. It will be realized, then, that the figures given in this statement indicate the proportions of total gross returns to farmers arising from farm products exported and from consumption of such products within New Zealand.

The figures of the return to farmers in respect of New Zealand consumption of farm produce have been obtained by deducting exports from total production. In these compilations exports of milk products have been converted to a butterfat equivalent, the returns to farmers being computed on the basis of butterfat pay-out; while the slaughterings represented by exports of meat products have been taken as the basis on which to estimate farmers' receipts from exports of meat. in instances where statistics of stocks are available adjustment has been made for the carry-over from one season to another. It has been assumed that stocks of wool, frozen meat, and butter and cheese carried over are held for export, and that stocks of wheat and oats are subsequently consumed within New Zealand.

Since the estimates of New Zealand consumption are the residual element in the process of compilation, any lack of correspondence between the statistics of production and of trade will affect the accuracy of these estimates. Statistics of production relate to the production year for each commodity, or group of commodities, coming within the scope of this investigation. In many instances the production years do not cover identical twelve-monthly periods, so that the aggregate of production of farm produce includes statistics for a number of yearly periods ending in different months. Exports during any one year do not consist entirely of commodities produced within the same twelve-monthly period to which the export statistics relate. Since the estimates of gross farming income include changes in the number of livestock on farms, it follows that the resultant increase or decrease in the total production is necessarily included in the residual New Zealand consumption figure. The effect of these various factors is, however, minimized by taking averages for five seasons.

The following table shows for quinquennial periods the proportions of gross farming income arising from exports of farm produce and from consumption of such produce within New Zealand.

Per Cent

Gross Farming Income1931-32 to 1935-361936-37 to 1940-411941-42 to 1945-461946-47 to 1950-511951-52 to 1955-56
Agricultural produce—
  From exports129181214
  From New Zealand consumption8891828886
      Totals100100100100100
Pastoral produce—
  From exports7881868483
  From New Zealand consumption2219141617
      Totals100100100100100
Produce of dairying, poultry, and bees—
  From exports7268656965
  From New Zealand consumption2832353135
      Totals100100100100100
All farm produce—
  From exports6667677170
  From New Zealand consumption3433332930
      Totals100100100100100

VALUE OF PRODUCTION.—Complete statistics covering all phases of production are not available, and in compiling the following statistics estimates of production have been made in several cases where direct data are not obtainable. Since statistical information as to production in each of the major productive activities is readily available, the items for which estimates must be made are, with the exception of one group of commodities, relatively unimportant. Although the value of products made in the home—e.g., home-made clothing, jams, kitchen-garden products, etc.— must, in the aggregate, account for a considerable annual value, it is impossible to estimate with any reasonable degree of accuracy the value of such production, which is, on this account, omitted from the statistics of the value of production.

It should be noted that production of material commodities only is taken into consideration in these statistics.

The general principle followed in assessing values has been to value products as near as possible to the actual point of production. For example, livestock is valued at "on the hoof" prices, while values at the factory are used in the case of factory products. In some few cases, however, reliable data as to values at or near the point of production cannot be obtained; and in these cases export valuations or wholesale-price quotations have been used in assessing values. Although absolute uniformity of treatment in the basis of valuation as between different commodities has not been possible, the basis of valuation gives comparable aggregate values for the period covered. The statistics thus afford a fairly accurate indication of fluctuations in the value of production from year to year, although the absolute figures for any individual year must be regarded as an approximation only.

Since the basis of valuation is, in general, at the point of production, transport costs are only partly represented in the values shown, while the accretions to the value of commodities caused by the services of retailers and other distributors of finished products are not included in the statistics. Commissions and levies forming part of the value of finished farm products, but not of the returns to the farmers, are excluded from gross farming income, but are not excluded from the value of production figures.

In classifying the value of production into the principal groups care has been taken to avoid. duplication, products of one group which constitute the raw material of another group being counted once only. For example, the major portion of agricultural products, being animal fodder crops utilized in livestock production, are excluded, since livestock and livestock products are included in either the Pastoral or the Dairying, etc., group.

Products have been classified into the groups to which they most logically belong from a production point of view, butter and cheese, for example, being classified under Dairying, etc., and not as factory products. The figure shown under the heading "Factory" is the aggregate value added to materials by the process of manufacture, excluding industries which are already included in other groups (e.g., butter and cheese making, meat freezing, fish curing, and sawmilling). As a result of the inclusion of these industries processing farm products in the appropriate farming subgroups as well as for reasons already stated, the values for these sub-groups and for the farming group shown in this series naturally differ from the corresponding values in the gross farming income series. The total value of output of factory industries is included in cases where the materials are produced in New Zealand and are not already included as production in some other group.

The 1955 revisions in the Gross Farming Income series mentioned earlier in this Section necessitated corresponding revisions in the farming groups in this series. These revised estimates (from 1938-39 onwards) are quoted in the following table, in terms of New Zealand currency. Since comparisons between the old and the revised series are of limited validity the figures for years prior to 1938-39 which appeared in the 1954 and earlier issues of the Year-Book are not reproduced here. It has not appeared worthwhile attempting to carry the revisions back any further, the old series up to 1937-38 being quite valid measures of movements up to that date. Global estimates such as these, are, from their nature, subject to amendment from time to time as additional data on production become available and improvements are made in technique.

VALUE OF PRODUCTION

£(m.)

YearAgriculturalPastoralDairying, Poultry, and BeesTotal, Farming GroupsMiningFisheriesForestryFactory*Building and MiscellaneousTotals (All Groups)

* Excluding factory industries included in other groups.

† Provisional.

1938-398.337.533.379.14.40.64.030.514.7133.3
1939-409.638.836.384.74.90.64.433.515.4143.5
1940-4110.346.339.395.95.10.64.537.114.4157.6
1941-4211.445.937.995.25.40.64.541.214.8161.7
1942-4313.346.936.696.85.30.65.045.215.5168.4
1943-4414.448.136.298.75.70.75.349.415.9175.7
1944-4516.456.343.3116.05.80.75.452.016.4196.3
1945-4615.955.039.8110.76.00.96.155.619.0198.3
1946-4715.964.948.4129.26.41.06.661.723.1228.0
1947-4817.481.155.9154.46.31.18.770.824.4265.7
1948-4919.684.462.7166.76.91.210.577.027.8290.1
1949-5020.8118.068.9207.78.21.410.984.531.1343.8
1950-5120.8213.077.4311.29.41.412.897.436.8469.0
1951-5223.5136.890.9251.29.31.515.5112.341.4431.2
1952-5324.4167.5103.0294.911.01.815.5115.943.0482.1
1953-5429.3180.0101.1310.411.02.117.3131.249.0521.0
1954-5530.8191.4100.4322.613.72.419.5151.458.9568.5
1955-5632.7189.0104.5326.216.62.721.0163.659.6589.7

Taken together the farming groups outweigh all others so that the all-groups aggregate reflects the movements in these groups. Primary produce, particularly wool, prices have been major factors influencing movements in the all-groups aggregate in recent years.

VOLUME OF PRODUCTION.—The method of computation of the volume series is somewhat involved and is based on figures of physical volume of output where available (as for practically all farm, mining, forestry, and fishery production). For factory industries, quantity figures— either of products or of materials used—have been utilized where available, and in the case of other factory industries an estimate of volume of production is assessed by applying to the cost of materials used or of products, an index of wholesale prices of the principal materials or products of the particular industry. In the case of some of the industries where the above methods were not applicable, a figure closely indicative of volume movements has been arrived at by assessing the number of man-hours worked.

Information as to the number of houses erected, classified according to size, is available for certain years. From a consideration of this data, value figures for other classes of building activity for the same years have been converted into equivalent house or room units, and composite totals of actual and equivalent units used in computing the index number of volume of total production for these years. For other years, for which the required information is not available, the composite total for the last year in which the information was available has been projected forward by the movement in the total value of building permits issued, deflated by the movement in the average value of newly constructed State rental houses of similar size and type. For those physically productive occupations (representing only a small percentage of aggregate production) not included in any of the groups mentioned above, a reasonably close approximation of movement is afforded by a consideration of the numbers of men engaged, with allowance for changes in working hours and also for the relative productive output of different classes of labour.

The following table gives figures of value, and index numbers of value and volume of production, for the principal headings.

VALUE AND VOLUME OF PRODUCTION

Base of index numbers: 1938-39 (= 100)

YearFarmFactory*Total (Including Other)
ValueIndex of VolumeValueIndex of VolumeValueIndex of Volume
TotalIndexTotalIndexTotalIndex

* Excluding factory industries included in other groups.

† Provisional.

1938-39£(m.) 79.1100100£(m.) 30.5100100£(m.) 133.3100100
1939-4084.710710433.5110110143.5108106
1940-4195.912111537.1122114157.6118112
1941-4295.212011141.2135117161.7121110
1942-4396.812210745.2148122168.4126109
1943-4498.712510649.4162129175.7132109
1944-45116.014711552.0170132196.3147114
1945-46110.714010755.6182136198.3149112
1946-47129.216311161.7202146228.0171118
1947-48154.419511470.8232159265.7199123
1948-49166.721111877.0252167290.1218130
1949-50207.726312384.5277174343.8258137
1950-51311.239312797.4319184469.0352141
1951-52251.2318126112.3368196431.2323144
1952-53294.9373132115.9380196482.1362147
1953-54310.4392133131.2430211521.0391152
1954-55322.6408136151.4496235568.5426164
1955-56326.2412140163.6536250589.7442170

A measure of relative productivity is afforded by the next table, which gives figures and index numbers of value and volume of production in total and per head of population.

VALUE AND VOLUME OF PRODUCTION

YearMean Population Year Ended 30 June (000)Value of ProductionVolume of Production
Total £(m.)Per Head £Index Numbers 1938-39 (= 100)Index Numbers 1938-39 (= 100)
TotalPer HeadTotalPer Head

* Provisional.

1938-391,617133.382.4100100100100
1939-401,637143.587.7108106106105
1940-411,634157.696.5118117112111
1941-421,631161.799.1121120110109
1942-431,639168.4102.7126125109108
1943-441,641175.7107.1132130109108
1944-451,673196.3117.3147142114111
1945-461,729198.3114.7149139112104
1946-471,779228.0128.2171156118107
1947-481,817265.7146.2199177123110
1948-491,853290.1156.6218190130113
1949-501,891343.8181.8258221137117
1950-511,927469.0243.4352295141118
1951-521,970431.2218.9323266144118
1952-532,023482.1238.3362289147118
1953-542,073521.0251.3391305152119
1954-552,117568.5268.5426326164125
1955-56*2,161589.7272.9442331170127

MARKETING OF PRIMARY PRODUCE.— Prior to the First World War, internal arrangements for the marketing of primary produce destined for export were the subject of individual negotiation between producers and intermediaries. Government assistance in the marketing of primary products, however, had been given in many ways since organized settlement began, such as by monetary grants, by research and instruction, and by inspection and regulation in the public interest. Organized bulk marketing commenced in 1915 with the establishment of the Imperial Government Supplies Department in Wellington as agent for the New Zealand Government in controlling the export of the various items of primary produce, notably meat, wool, butter, cheese, hides and skins, etc. After the termination of Imperial bulk purchasing by March 1921 producers of meat and dairy produce viewed more favourably participation in some form of common marketing organization, though wool producers were much less favourably disposed, owing to the different circumstances pertaining in regard to overseas markets for wool.

In 1922 and 1923, therefore, attempts to gain at least some of the advantages of organization were apparent in the establishment in the former year of the Meat Producers Board under the authority of the Meat Export Control Act, and of the New Zealand Dairy Produce Control Board in 1924 under the Dairy Produce Export Control Act of the later year mentioned. Other such Boards established include the Honey Export Control Board (1924), the Fruit Export Control Board (1924), the Kauri Gum Control Board (1925), the New Zealand Poultry Board (1933), and the Wheat Committee (1936).

The effect of the economic depression of the early "thirties" affected the operations of the Boards so seriously that after an investigation by a Royal Commission, an Executive Commission of Agriculture was created in 1934 by virtue of the Agriculture (Emergency Powers) Act 1934. The Commission was granted very wide powers, including those to take over the functions of various existing Boards, and to make regulations for the improvement of marketing methods in order to improve the prices at which farm produce was being sold.

In respect of the direct control and marketing of primary produce, the Executive Commission of Agriculture was superseded by the Primary Products Marketing Department in 1936, though it continued to function in an advisory and regulatory fashion, being, among other things, responsible for the zoning of dairy factory supply areas.

The Meat Producers Board arranged for the grading, handling, and storage of meat for shipment and the regulation of shipping, while no valid contract for shipment by exporters could be made without the approval of the Board. This practice continued until the early stages of the Second World War, when recourse was again made to bulk purchase between Governments, the Marketing Department taking over the export of meat.

The Dairy Board in a similar manner became responsible for the control of shipping in respect of dairy produce. As an experiment in 1927 it endeavoured to make use of its London office as the sole agent for the sale of butter and cheese, including the fixation of prices by the London agency in conjunction with distributors. This experiment was abandoned shortly thereafter, but a modified form of marketing organization was adopted in the early depression years by the preparation of a list of licensed wholesalers to whom allocations of dairy produce were made. Further plans for the more complete control of export marketing by the Board were rendered void with the establishment of the Marketing Department under the Primary Products Marketing Act 1936. The Department was empowered to acquire primary products and market these either in New Zealand or overseas. During the ensuing period up to the outbreak of war the operations of the Department were confined to dairy produce, while throughout this period and subsequently, payments to butter- fat producers were based on the guaranteed-price scheme. Concurrently with the control of marketing of dairy produce for export the Department assumed the responsibility of marketing such products within New Zealand.

On the outbreak of the Second World War, however, when wool, like other important primary products, became subject to bulk purchase arrangements, the New Zealand Government, as the agent of the United Kingdom Government, became the sole purchaser of New Zealand grown wool, producers being paid according to schedules of fixed prices for the different classes and qualities of wool. In its wartime purchasing the Government utilized the services of established wool brokers, buyers, and appraisers, while the Marketing Department was made responsible for the general administration and financial aspects of the scheme.

The Meat Pool, Meat Industry Stabilization and Dairy Industry Stabilization Accounts received the benefit of price increases occurring during the war years (the first mentioned, of increases in meat prices up to December 1942; the second, thereafter). The surpluses remaining in the two latter accounts, after payment of subsidies, etc., designed to keep down farm production costs, constituted reserves intended to maintain producer incomes during periods of falling prices and, in the case of the Meat Pool surplus, for the future use of the industry. The Finance Act 1950 amalgamated the Meat Pool and Meat Industry Stabilization Accounts to form the Meat Industry Reserve Account.

The existence of the Marketing Department was thus a factor in achieving a smooth changeover to a system of bulk-purchase agreements covering meat, dairy produce, wool, hides, tallow, etc., between the United Kingdom and New Zealand Governments. This procedure was to remain a dominant feature of marketing during the war and immediate post-war years. Shipping and storage difficulties associated with wartime conditions also led to the export of meat becoming a function of the Marketing Department.

Government Marketing.—The Marketing Department was established by the Marketing Act 1936, which transferred to it many of the functions previously exercised by the New Zealand Dairy Board, and made provision for the compulsory acquisition by the Department at prices fixed by it of butter and cheese for export, followed in 1937 by butter and cheese for local consumption. These functions were in 1947 relinquished to the Dairy Products Marketing Commission. Control of prices of export meat was assumed by the Marketing Department under the authority of the Marketing Amendment Act 1939, meat marketing orders being issued annually until 1947, and again from 1949 to 1953. The physical handling arrangements for export meat were resumed by the Meat Producers Board in 1948, and the same authority conducted the price negotiations with the United Kingdom Ministry of Food for the 1953-54 season. The Marketing Amendment Act 1937 set up the Internal Marketing Division of the Marketing Department, with power to control wholesale and retail prices of eggs, fruit, and honey, as well as dairy produce, while subsequent regulations added other commodities, notably meat, wool, hides, wire, galvanized iron, and industrial and farming machinery. The Department's functions were by no means fully exercised in respect of these commodities. It guaranteed a minimum price for kauri gum in 1937; provided a minimum guarantee for eggs and undertook an advisory service for the trade in 1937; took over the processing and marketing of New Zealand standard lemons in 1939; and in 1940 became responsible for the administration of regulations setting up egg floors in the four main centres and in Hastings.

In 1942 it became necessary to set up floors in most of the provincial centres and these have continued to operate. The marketing of eggs became the sole responsibility of the National Egg Marketing Committee in 1951, but the committee continued to use the Department as its agent. The Poultry Industry, however, set up its own marketing organization and took over completely at the end of 1953.

In 1938 regulations administered by the Division were introduced regulating the sale and disposal of bobby calves, but in 1953 the New Zealand Dairy Board took over the administration of these regulations. In 1938 also the Minister of Marketing assumed the powers of the Honey Export Control Board. Honey in blended and packed form was distributed both within the country and to overseas markets, in 1953 this becoming the responsibility of the Honey Marketing Authority. Upon the outbreak of war in 1939 and by agreement with the New Zealand Fruitgrowers' Federation, but actually commencing duty in 1940, the staff of the Fruit Export Control Board was taken over, the Board retiring from active participation, but remaining as an advisory committee. The growers were given a fixed return for their fruit, the Government undertaking to sell the whole crop within New Zealand and to bear whatever losses were consequent upon such policy.

In 1948 the Apple and Pear Board became responsible for the marketing of these fruits, followed in 1951 by a registered company controlling imported citrus fruits and bananas, while New Zealand lemons came under the Citrus Marketing Authority in 1953.

The Milk Act 1944 created the Milk Marketing Division of the Marketing Department. The Department's functions in regard to milk were eventually assumed by the New Zealand Milk Board in 1953.

In a relatively minor but financially substantial field the Marketing Department operated wartime-built processing factories at Motueka and Pukekohe, administered supplies for Government institutions, hired storage space to commercial interests, provided staff and facilities for the Armed Forces Canteen Council, and maintained liaison with various marketing organizations.

By the Marketing Amendment Act 1948 the Export Division, the Internal Marketing Division, and the Milk Marketing Division were abolished as separate divisions of the Marketing Department. With the industry bodies assuming control of the marketing of their produce progressively from 1947 onwards, by 1953 the remaining functions did not justify the retention of a separate Department, and provision was made in the Marketing Amendment Act 1953 for the abolition of the Marketing Department and the transfer of its remaining functions to the Director-General of Agriculture. By the beginning of December 1953 arrangements had been made in respect of these functions, and since then the Marketing Division of the Department of Agriculture has relinquished all active participation in the marketing processes. A brief description of the transfer of functions from the former Marketing Department to industry bodies, as affecting certain commodities, is given in the following pages.

The general policy of State marketing of primary products has exhibited four phases:

  1. The original tendency was for the State to trade directly, buying products outright, bearing losses, and retaining profits.

  2. This was followed by the formation of financial pool accounts for each industry, the profits subject to the general policy on stabilization, being paid out to the suppliers, and any reserves held for the benefit of the industry.

  3. The third phase has been the direction of policy by boards and committees with the assumption of executive, and not as previously merely advisory, powers. Each body continued to use the marketing organization for assembly, storage, transport, distribution, and accounting, which the Department had built up, these services having been made available at cost.

  4. The fourth phase has been the progressive transfer to various boards or authorities, representative of the industries concerned (with Government representation to protect consumer interests), of the responsibility and authority for the effective marketing of their own products.

Marketing Authorities, Specific and General.—The major statutes under which specific marketing authorities operate are the Dairy Products Marketing Commission Act 1947, the Meat Export Control Act 1921-22 (for the Meat Producers Board), and the Meat Export Prices Act 1955, the Wool Commission Act 1951, the Milk Act 1944, the Potato Growing Industry Act 1950, the Apple and Pear Marketing Act 1948, and the Dairy Products Marketing Commission Amendment Act 1956.

In addition to the specific statutes authorizing the industry body concerned to carry out marketing functions for certain major commodities—e.g., dairy produce, meat, potatoes, apples and pears, milk—an Act passed in 1953, entitled the Primary Products Marketing Act 1953, authorized the setting-up of other marketing authorities by Orders in Council. The Minister was required to be satisfied that a large majority of the producers in the industry concerned desired to have an authority established, and provision was made for the protection of consumer interests by the appointment of experienced Government representatives to such authorities. Other protection measures included provision for consultation between the Minister and the various boards or authorities, empowering the Minister to give directions on matters of Government trade policy, the presentation of annual reports to Parliament by each body, and Government audit of their accounts.

Orders in Council have been gazetted entitled the Citrus Marketing Regulations 1953, the Egg Marketing Regulations 1953, and the Honey Marketing Regulations 1953, all three being confirmed and validated by the Primary Products Marketing Confirmation Act 1953.

Summary of Present Position.—The present position may be summarized as set out below.

Dairy Produce.—Provision was made in 1936 for the compulsory acquisition by the Marketing Department, at prices fixed by it, of butter and cheese for export, and also in 1937 for consumption in New Zealand. By the Dairy Products Marketing Commission Act 1947, however, these functions, as regards butter and cheese for export (later extended to cover all dairy produce for export) were transferred to the New Zealand Dairy Products Marketing Commission. By the same Act the control and regulation of butter and cheese for local consumption was also transferred to the Commission. The Commission was given the task of determining the guaranteed price to be paid out to producers, while the general conditions to be taken into account in its determination were also specified, but the Dairy Products Marketing Commission Amendment Act 1956 transfers this latter function to the Dairy Products Prices Authority, which is being established from 1 August 1957.

The Dairy Products Marketing Commission negotiates with the overseas buyers in respect of prices and quantities of export dairy produce, acquires and provides for the handling of the New Zealand export production, determines the guaranteed prices to be paid to local producers for dairy produce, and regulates the marketing of butter and cheese in New Zealand. The amendment Act of 1953 empowered the Commission to acquire shares in overseas marketing companies and to delegate to a committee the control of the marketing of milk powder intended for export. The Commission is authorized to join with the New Zealand Co-operative Dairy Company in setting up the Milk Powder Committee for this purpose.

Meat.—Control of prices of export meat was assumed by the Marketing Department in 1939.

By arrangement with the Government in early 1948, the Meat Producers Board resumed the regulation of shipping and physical handling of meat and became responsible for the purchase of meat for export and the payment to the freezing companies for such meat. In negotiation of prices, etc., for the sale of meat and meat products overseas the representatives of the Board acted as advisers in association with the representatives of the New Zealand Government, and for the 1953-54 season's prices the Meat Producers Board was authorized to conduct the price negotiations with the United Kingdom Ministry of Food. The United Kingdom Government agreed to this procedure subject to the New Zealand Government vouching for the accuracy of any cost statistics used by the Board's representatives. Meat destined for local consumption is not dealt with by the Meat Producers Board. With the end of the bulk purchase agreements in September 1954, the export trade in meat reverted to a trader-to-trader basis. Provision was made by the Meat Export Prices Act 1955, however, for the determination annually by the Meat Export Prices Committee of minimum prices for meat exported from New Zealand, and for the payment of deficiency payments equal to the difference between the minimum price for that class of meat shown in the annual table and the f.o.b. value in the schedule of deficiency payments gazetted in that week for the particular class and grade of meat.

Wool.—The minimum-price system created by the Joint Organization for the disposal of war surplus stocks of wool was operated in New Zealand by the Wool Disposal Commission, which was prepared to buy, at minimum reserve prices, wool from current clips offered at public auction but in respect of which prices failed to exceed the reserve fixed. By the Wool Commission Act 1951 the Wool Disposal Commission was abolished and a Wool Commission authorized, with the principal function of assuring minimum prices for greasy, scoured, and growers' slipe wool in accordance with the table of minimum prices (effective only after agreement with the Minister), for New Zealand wool sold in New Zealand or the United Kingdom at auction sales approved by the Commission. The Wool Disposal Account was abolished and its moneys, together with those standing to the credit of the Wool Industry Deposit Account, were transferred to the Wool Commission Account which was established by the Act. The marketing of wool is carried out by public auction, though a charge on the proceeds of sales may be retained by the Wool Commission sufficient to cover administration costs and the amount of the levy imposed by the Wool Industry Act 1944. The latter amount is expended by the Wool Board for the benefit of the industry as a whole.

Apples and Pears.—Apples and pears are purchased from growers by the New Zealand Apple and Pear Marketing Board. This Board was set up in 1948, in terms of the Apple and Pear Marketing Act 1948, to take over direction of the acquisition and marketing of the apple and pear harvest. It administers a guaranteed price scheme based on the cost of production of apples and pears. This price is a New Zealand average, and within it prices to growers vary for the different varieties, grades, type of packs, and sizes. In this case the Board does not itself declare the average price to be paid for apples and pears, its powers being limited in this respect to making recommendations to the Minister of Marketing, who declares the cost of production. The Minister then, after consultation with the Board, declares the average price to be paid for apples and pears. The Board is charged with the duty of recovering from the market these prices together with the costs of marketing. It determines the wholesale prices at which fruit is sold by authorized wholesalers to retailers, these prices not being fixed by the Price Tribunal. However, a price order of the Tribunal maintains retail prices in fixed relationship to wholesale prices and individual retailers' transport costs. If in any season the total receipts from sales of fruit by the Board exceed the amount which the Board is required to pay to growers in accordance with the declared average price, the surplus, after deduction of costs and expenses incurred by the Board, is apportioned between a reserve fund and the growers. So much of the annual profit as was required to increase the reserve fund to £1,000,000 was paid to the Reserve Fund and the profit accruing since then distributed in the proportion of 25 per cent to growers and 75 per cent to the fund until it reached £1,250,000. The annual profit is now divided equally between the two. If sales in any season realize less than the amount the Board is required to pay, the deficiency is met from the reserve fund. All apples and pears are not purchased by the Board, the Act making provision for certain private sales by growers in accordance with regulations issued thereunder. The Board has been able to declare a bonus to fruitgrowers for each season since 1953-54, the average amounts paid out per case being for 1954, 4.09d.; for 1955, 2.37d.; and for 1956, 3.98d.

The Apple and Pear Board at first did not employ its own staff, except for secretarial and investigational duties, the physical functions in assembly, distribution, and marketing being carried out by the Marketing Department as the agent of the Board. However the Board set up its own marketing organization and took over direct control as from 1 December 1953.

With the exceptions listed below, all fruit must be offered to the Board, and accepted by it if it comes within the scope of the New Zealand Grown Fruit Regulations 1952, which sets standard grades with which the packed fruit must conform.

Officers of the Department of Agriculture inspect the fruit, and if it complies with the required standards the fruit becomes the property of the Board.

The exceptions under which fruit is not required to be offered to the Board are:

  1. Growers, with permission of the Board, may sell direct to consumers in lots of not more than two cases, or to retailers in specified localities. In the latter case the Board may prescribe conditions as to quantities, varieties, standards, etc., of fruit sold:

  2. Manufacturers may be licensed by the Board to purchase their requirements direct from growers (although in some cases the Board itself purchases fruit and resells it to the factory). In such cases, also, the Board may make conditions as above:

  3. Growers may also be permitted by the Board to sell at municipal markets established under the Municipal Corporations Act 1954. The Board is not obliged to accept fruit from a grower while he holds a permit to sell at such a market.

The Board decides what proportion of the fruit is to remain in New Zealand and what proportion is to be exported, and arranges for the storage and release of varieties according to their condition and keeping capacity, in order to make fruit available for as long a period as possible during the year. The Board has purchased the greater part of the facilities, previously owned by the Government, situated in fruitgrowing districts and consisting principally of stores and cool stores and sundry ancilliary equipment such as motor trucks and mechanized handling equipment.

Potatoes.—Commencing during the war period, the Marketing Department let contracts to. ensure an adequate supply of main-crop potatoes for local consumption. The last such contracts were let for the 1950-51 season.

The Potato Board, with equal representation of growers and merchants, was established by the Potato Growing Industry Act 1950. Its principal function is to ensure that an adequate supply of main-crop potatoes shall be available for consumption. Its powers include the making of contracts between growers and the Board, and the appointment of wholesalers authorized to purchase from growers and to sell potatoes in respect of which contracts have been made with the Board. The Board replaced the Potato Advisory Committee of the Marketing Department from November 1950. In June 1956 the Government announced that it would guarantee the funds of the Potato Board to enable the Board to guarantee a certain schedule of minimum prices to contract growers for any potatoes unsold at the end of the 1956-57 season. The purpose is to encourage the growing of an adequate supply of potatoes. The schedule is to be reviewed for the 1957-58 season.

Milk.—The Milk Act 1944, as amended in 1951, set up a Central Milk Council under whose general direction were to be established local milk authorities of various types according to conditions. The Marketing Department, and later the Department of Agriculture, acted as the administrative agent of the Council. It also administered the National Milk Scheme under which local supply associations of farmers contract to supply the requirements in given areas at prices fixed from time to time by agreement between the industry representatives and the Government. The scheme controlled prices and allowances for processing and distribution at all stages from the farm gate to the consumer. The Milk Amendment Act 1953, however, further implemented the Government's policy of divorcing marketing of primary products from direct Government control. It provided for the setting-up of the New Zealand Milk Board to replace the Central Milk Council, with powers considerably greater than those of the Council, and for this reason one extra Government member was appointed to the Board. The Board has its own officers and operates the National Milk Scheme and treatment stations owned by the Crown, and engages in other activities for the purpose of ensuring an adequate supply and efficient distribution of milk.

The Central Milk Council Account is also replaced by the Milk Industry Account. While subsidies are payable from the Consolidated Fund, the Board may make a levy on milk for the purpose of providing for its operations if the Minister of Agriculture approves.

Retail prices are fixed by Price Order. The price for the milk to the producer is negotiated between the Government and the Town Milk Producers Federation of New Zealand. Intermediate margins, such as those for chilling and bottling milk and to vendors for its delivery, are fixed in consultation with the representative bodies concerned. The total cost at the present time exceeds the amount paid by the consumers, the balance being met by subsidy. It is the function of the Milk Board to administer the whole town milk scheme on behalf of the Government which, however, retains a direct interest by virtue of the substantial sum still paid in subsidy.

Eggs.—The marketing of eggs and egg products was formerly controlled by the National Egg Marketing Committee, set up under regulations issued in 1951 and amended in 1952. Private firms in various towns and cities were licensed by the Minister of Marketing to receive and sell eggs on commission and to manufacture and sell egg pulp. The prices paid to the poultrykeepers were those fixed from time to time by the Minister on the Committee's recommendation, while the wholesale and retail selling prices to the public were fixed by price order. It was the responsibility of the Committee to obtain from the market the average cost of production for the producer. It operated by adjusting prices, by deciding the proportion of eggs for pulping, and by instituting economic in marketing; it also administered funds collected from the producers by means of levies on feed and eggs, applying these towards meeting administrative costs and marketing expenses.

The Egg Marketing Authority Regulations 1953 transferred to the Egg Marketing Authority the power to regulate and control the marketing and distribution of eggs and egg pulp in substantially the same manner and extent as those powers were exercisable by the Minister and the Department of Agriculture under the Egg Marketing Regulations 1951.

The Egg Marketing Authority consists of seven members—four producer members of the New Zealand Poultry Board and three Government representatives.

The principal function of the Authority is to regulate and control the marketing and distribution of eggs and egg pulp in New Zealand and elsewhere in accordance with the regulations, to ensure as far as possible sufficient supplies of eggs and their equitable distribution in the general interests of producers and consumers.

The New Zealand Egg Marketing Authority as the successor with autonomous powers to the National Egg Marketing Committee, operates principally through licensed distributors in the various districts who, on commission, receive and re-sell eggs, or, as directed by the Authority, manufacture egg pulp for the use of bakers and pastry cooks. The poultry industry docs not enjoy a full guaranteed price from the Government, but, within limits fixed by the assessed costs of production, is free to recover these costs from the market. A subsidy, at present at the rate of 4d. per dozen, is paid by the Government in respect of eggs received at authorized egg floors (as the licensed distributors are known). The Authority has, with the approval of the Minister, delegated its powers in the daily supervision of the details of egg and egg pulp marketing to a Committee of four persons, one nominated by each of the Provincial Councils of the New Zealand Poultry Board.

Imported Citrus Fruits and Bananas.—The control and distribution of bananas and imported citrus fruits were placed in the hands of the Internal Marketing Division in 1938, pineapples being added in 1940. Since the beginning of 1951, however, the importation and marketing of imported citrus fruits, bananas, and pineapples have been taken over by a registered company, Fruit Distributors, Ltd., representing trade interests.

New Zealand Lemons and Oranges.—The Citrus Marketing Authority Regulations 1953 provided for the Citrus Marketing Authority with the principal task of selling fresh lemons, either directly or through agents, throughout New Zealand at prices related to cost of production, and to process unmarketable but otherwise sound fruit into by-products, such as fruit juice and lemon peel. The Authority has a membership of five, four of whom are nominees of the New Zealand Citrus Council and represent the producers, and one appointed by the Minister of Agriculture representing the consumers.

The Citrus Marketing Authority is now empowered to control the assembly and distribution of New Zealand lemons, including the variety known as the meyer lemon which was hitherto exempt from regulation, and also New Zealand grown sweet oranges. The entire output of packed lemons, which now comes under the jurisdiction of the Authority, is sold at agreed prices to Fruit Distributors Ltd, following discussions with the predecessors of the Citrus Marketing Authority, and confirmed by the Citrus Marketing Authority. The Authority has taken over the processing and packing facilities at Kerikeri, Auckland, and Tauranga, and most of the staff previously associated with this work.

Honey.—A Honey Export Control Board was set up in 1924, the powers of which were assumed by the Minister of Marketing in 1938. In the same year regulations were made to provide for a levy at the rate of 1/2 d. per pound on honey sold by beekeepers within New Zealand, subject to certain small exceptions. At a later date regulations under the Marketing Acts set up the Honey Marketing Committee which at first was advisory in nature, but some years later was given virtually executive powers. The Honey Marketing Authority Regulations 1953, made under the Primary Products Marketing Act 1953, amalgamated all the foregoing provisions and provided for a Honey Marketing Authority, which undertakes the task of packing and marketing honey within New Zealand and for export, and either directly or through agents operates the blending plant in Auckland. The levy referred to is continued at the rate of 1d. per pound and the funds paid into the Honey Industry Account, which is administered by the Authority for the benefit of the industry in general. The greater part of the funds hitherto obtained from this levy has been applied to subsidizing the return received by those whose honey has been exported through the Honey Marketing Committee.

The Authority comprises four members elected by beekeepers, one appointed by the National Beekeepers' Association (Inc.), and one member appointed by the Government to watch the interests of the consumer.

Processing and Storage Facilities.—The New Zealand Packing Corporation, Ltd., was formed in November 1953 for the express purpose of operating the trading and storage facilities of the Marketing Division at Auckland, Pukekohe, and Motueka as the Government's agent. The property and facilities, buildings, plant, and equipment remain with the Government, but are transferred for the purposes of practical administration to the custody of the company. The company is charged under an agreement between it and the Government to operate the facilities in a prudent and businesslike manner. All profits are paid into the Consolidated Fund, after making due allowance for income tax and such other charges as a commercial organization would be required to bear.

The Government is responsible for the provision of such plant as may from time to time be required to keep the facilities up to date and in effective working order. The company is operating the factories for a period of five years. At the end of this period the last four years of operation will be taken into account to decide the purchase price at which a future public company will purchase the entire assets of the undertaking from the Government. The agreement provides that the price to be paid shall be based upon the earning capacity of the undertaking, taken over the average of the preceding four years.

PURCHASE OF PRIMARY PRODUCE BY UNITED KINGDOM.—The deterioration in the European situation during 1938 and 1939 had led to the formulation of plans in the United Kingdom and New Zealand for the supply of foodstuffs and other produce in the event of war. These plans, which were put into effect shortly after the outbreak of war, envisaged the United Kingdom Government becoming the sole purchaser of imported foodstuffs, and the Marketing Department becoming the authority in New Zealand responsible for the bulk purchase and shipment of the various food and other products.

In general the arrangements for the purchase of produce were to continue for the duration of the war and a subsequent period to be agreed upon, except in the case of wool, where the period was fixed for the duration of the war and one season's clip thereafter. The bulk purchases of wool terminated with the sale of the 1945-46 season's clip, but early in 1944 long-term contracts were entered into in regard to butter, cheese, and meat, the period covered in the original agreement being the four production seasons 1944-45 to 1947-48. At the beginning of the 1946-47 season the period of the contracts was extended to 31 July 1950, with arrangements to confer in 1948 on the desirability of a further extension. As a result of conferences held in 1948 new long-term agreements were entered into covering the period to the end of the production year which terminated in 1955. These agreements are referred to later under their respective headings. However, during 1954, after discussions with the United Kingdom, the long-term contracts for both dairy produce and meat were terminated from the beginning of the 1954-55 season—i.e., one year before expiry date.

The principal products coming within the bulk-purchase plan which commenced at the outbreak of the Second World War were wool, dairy produce, meat, tallow, and woolly sheep skins. A brief history of the contracts entered into in regard to the three main items—wool, dairy produce, and meat—and of the principal changes that have taken place since the inception of the scheme is given in previous issues of the Year-Book. In the following pages only recent years are dealt with in the text, together with summary tables.

WOOL.—In the case of wool the contract commenced with the 1939-40 season's clip and was for the duration of the war and one season's clip thereafter. Following the cessation of hostilities in August 1945, the sale of the 1945-46 season's clip marked the end of the contract obligation of the United Kingdom Government. Huge surplus stocks of wool purchased under contract from Australia, South Africa, and New Zealand had accumulated by the end of the contract period. The total stocks of United Kingdom owned wool at 30 June 1945 were estimated at 3,245,000,000 lb., including 540,000,000 lb. (or 17 per cent) from New Zealand. Owing to the increased world consumption of wool, the surplus stocks were disposed of at a much faster rate than was anticipated, being at a rate of approximately 2,000,000 bales each year.

A Joint Organization to dispose of the surplus was formed and incorporated in England as a private registered company, the capital consisting of eight shares, of which four were held by the nominees of the United Kingdom, two by nominees of the Government of Australia, and one each by nominees of the Governments of New Zealand and South Africa. The company had one subsidiary acting on its behalf in each of the three wool-producing countries, in New Zealand this being the New Zealand Wool Disposal Commission established under the Wool Disposal Act 1945.

The Joint Organization bought, held, and sold wool as agent for the four Governments at public auctions; wool was bought in if it failed to reach reserve prices fixed at the beginning of each season.

Stocks of wool taken over by the Joint Organization for disposal in 1945 amounted to 10,407,000 bales, the New Zealand share of this wool comprising 1,777,000 bales. By early 1952 all stocks held in New Zealand were liquidated.

A total final profit of £20,157,265 accrued to New Zealand as its share from the sale of wool under the Joint Organization scheme. This amount, together with an accumulated surplus of £6,438,851 from a contributory charge imposed on wool growers to meet the industry's share of the operating expenses of the organization, became the Wool Commission's opening capital account to be expended for the purposes set out in the Wool Commission Act 1951.

The Wool Commission set up by the Wool Commission Act 1951, and replacing the Wool Disposal Commission, was given the necessary powers to complete the winding-up of the Joint Organization. The objective of the 1951 Act is to ensure that during each wool-selling season the growers selling greasy, scoured, and growers' slipe wool at auction sales will receive for their particular types of wool at least the minimum prices prescribed from time to time in the table of minimum prices prepared by the Commission. This table is not to become effective except by agreement with the Minister of Agriculture. The Commission is authorized to approve auction sales in New Zealand or the United Kingdom for the purposes of the Act and, where wool is sold at less than the minimum price at an approved sale, to supplement the sale price so as to increase it to the minimum price; alternatively, the Commission may buy such wool at a price not greater than the minimum price. Provision is also made in the 1951 Act for a charge on wool sufficient to cover the costs of administration of the Act and the levy imposed by the Wool Industry Act 1944. There was no charge imposed on the sale value of wool for seasons 1951-52 to 1955-56 to cover administration costs, the only amount deducted being the levy per bale contributed to the Wool Board for its wool promotion purposes. The amount of this levy for the 1956-57 season is 3s. per bale from the sale of wool, supplemented by 3s. from the income of the Wool Commission. All moneys standing to the credit of the Wool Disposal Account and the Wool Industry Deposit Account were transferred to the Wool Commission Account established by the Act.

Statistics of greasy wool sold at auction in New Zealand (compiled from information supplied by the New Zealand Wool Commission) are given below in two sections. The first table gives a summary of the transactions that took place during the seasons 1947-48 to 1956-57. Actual total quantities and values are shown as recorded at sales, no attempt being made to allow for variations in quality or in the relative quantities of the various types of wool sold from season to season. Besides price movements, therefore, the average value per pound of wool sold shown in this table includes variations on account of these additional factors.

WEIGHT, SALE VALUE, AND AVERAGE VALUE PER POUND OF GREASY WOOL SOLD AT AUCTION

SeasonWeight of Greasy Wool SoldSale ValueValue Per PoundSeasonWeight of Greasy Wool SoldSale ValueValue Per Pound

* Provisional.

 lb.(000)£(000)d. lb.(000)£(000)d.
1947-48280,72929,37525.111952-53311,90260,02246.19
1948-49287,21130,88225.811953-54317,09366,39250.25
1949-50297,88647,13837.981954-55338,60870,08449.67
1950-51293,737107,50987.841955-56341,57665,73546.19
1951-52314,89652,73440.191956-57356,400*81,300*54.73*

In the next table details of a wool price index on base 1949-50 (= 1000) are given. This index has been compiled in an attempt to eliminate all but the price factor in movements of average wool values during the seven seasons. A description of the make-up of this index is given in the March 1952 issue of the Monthly Abstract of Statistics.

SeasonPrice Per Pound on Floor, Greasy* d.Index Numbers Base: 1949-50 (= 1000)SeasonPrice Per Pound on Floor, Greasy* d.Index Numbers Base: 1949-50 (= 1000)

* Average of selected types.

† Based on price on floor, clean.

1947-4825.626761952-5347.071,219
1948-4926.106861953-5450.831,310
1949-5037.981,0001954-5549.981,286
1950-5187.472,2991955-5646.981,208
1951-5241.591,0881956-5756.151,430

The following table shows the total wool production (greasy basis), the movement in the average price per pound of wool (greasy basis), and the estimated total value of wool production for seasons 1938-39 to 1956-57 inclusive. The reserve prices mentioned earlier are also given for the seasons 1946-47 to 1956-57—e.g., an overall average greasy reserve price of 24d. per pound represented a range of prices over the various qualities of fleece wool from 44 1/2d. for finest wools down to approximately 20d. for coarsest wools.

Season Ended 30 JuneTotal Wool Production (Greasy Basis)Average Price Per Pound (Greasy Basis)Reserve Price* Per Pound of Greasy WoolEstimated Value of Total Wool Production

* Minimum floor price from 1952.

† Provisional.

 lb.(million)d.d.£(m.)
1939327.79.17 12.5
1940310.012.85 16.6
1941331.512.87 17.8
1942345.012.88 18.5
1943340.014.58 20.7
1944330.014.60 20.1
1945372.014.61 22.6
1946365.014.51 22.1
1947367.017.8316.2327.3
1948362.025.1116.2337.9
1949367.025.8116.9839.5
1950390.037.9816.9861.7
1951390.087.8419.10142.7
1952407.040.1924.0068.2
1953418.046.1924.0080.4
1954426.050.2526.0089.2
1955455.049.6726.0094.2
1956462.046.1930.0088.9
1957488.054.7330.00111.3

DAIRY PRODUCE.—In previous issues of the Year-Book there is an account of the bulk purchasing agreements; the following paragraphs relate to later years up to and after the termination of the agreements as from the 1954-55 season.

Negotiations in June and July 1948 between the United Kingdom Ministry of Food and the delegation representing the Dairy Products Marketing Commission resulted in a new long-term agreement (incorporating the unexpired term of the then current contracts) for the period throughout 1948 and up to 31 July 1955. Agreement was also reached at these discussions in respect of prices for the 1948-49 season, followed by discussions in 1949 at which prices and quantities for the 1949-50 season were agreed upon.

The agreement for the season 1947-48 had provided that New Zealand was to be at liberty to reserve for sale at her own discretion from that season's production up to 1,500 tons of butter and 1,000 tons of cheese. From this free allocation the Dairy Products Marketing Commission could, and did, sell direct, or through exporters acting as its agents, to other countries for the purpose of maintaining connections in those markets where New Zealand has in the past enjoyed an established trade, and of exploring new markets which were considered to hold prospects of permanent trade in the future. These free allocations were in addition to sales to specified colonies permitted by the United Kingdom Ministry of Food agreements with the Governments of the colonies concerned.

For the 1948-49 season sales of butter and cheese to the United Kingdom Government, inclusive of the amounts for the colonies, were to be confined to not less than 97 per cent of the exportable surplus of butter and cheese, calculated on a butterfat basis. There were no changes from the above quantities involved in the agreement for the 1949-50 season. For the 1950-51 season the agreement announced in April 1951 provided for a full 7 1/2-per-cent increase in price for finest and first-grade butter and a proportionate increase for finest and first-grade cheese. There were no increases in the prices paid for second-grade butter or cheese or for whey butter. The quantity to be shipped was not to be less than 90 per cent in butterfat equivalent of exportable surplus with a maximum export of 12,000 tons of cheese to markets outside New Zealand and the programmed countries. Payment was also made in London as to 100 per cent on shipment in lieu of the former 97 1/2 per cent.

Agreement reached for the 1951-52 and 1952-53 seasons provided for a 7 1/2-per-cent increase in the price paid for New Zealand butter and an appropriate increase in the price for cheese. For 1953-54 the increase was approximately 4 per cent. In respect of quantities, up to 15 per cent of the exportable surplus of butter and cheese could be reserved for sale to other countries in 1951-52; for 1952-53 the corresponding figures were 12 1/2 per cent of butter and 10 per cent of cheese; and for 1953-54, 10 and 7 1/2 per cent respectively.

The question of long-term contracts for the sale and purchase of the exportable surplus of milk powders was also discussed in 1949 and an agreement reached by which the Ministry of Food undertook to purchase specified percentages of the exportable surplus of buttermilk powders and skimmed roller milk powder from participating dairy factories for the six-year period 1 August 1949 to 31 July 1955. For 1952-53 the prices for first-quality products were as follows, second grades being 5s. less: spray skim-milk powder in tins, 91s. sterling per hundredweight; roller skim in bags, 75s. 6d.; and roller buttermilk in bags, 65s. For 1953-54 the corresponding prices were 84s. 6d., 70s., and 60s. respectively, a decrease of 7 1/2 per cent. These contracts were terminated as from 1954-55 season, although the United Kingdom Ministry of Food agreed to purchase from the 1954-55 season an estimated quantity of from 2,000-3,000 tons of milk powder which certain New Zealand manufacturers who were parties to the contract wished to ship at prices per hundredweight as follows: spray skim-milk powder, 45s., roller skim-milk powder, 37s. 6d., and buttermilk powder, 32s. 6d. (all f.o.b.).

Following discussions which took place in London in June the United Kingdom - New Zealand bulk purchase dairy contract was terminated as from the commencement of the 1954-55 season.

The following table shows the contract price in sterling per hundred weight of butter and cheese over the years 1944-45 to 1953-54—i.e., up to the end of the bulk-purchasing period.

SeasonButterCheese
CreameryWheyFinest and First Grade (91 Points and Over)Second Grade
Finest Grade (93 Points and Over)First Grade (90-92 1/2 Points)Second GradeFirst GradeSecond Grade
 s.d.s.d.s.d.s.d.s.d.s.d.s.d.
1944-4515061493145614261386890870
1945-4615061493145614261386890870
1946-471750173917001670163010261006
1947-482050203920001970193011801160
1948-492350233923002270223013301310
1949-502526251324762446240614161396
1950-512716270324762446240615101396
1951-522920290928202720267016161516
1952-533140312930402940289017601660
1953-543260324931603060301018261726

Overseas Prices and Sales in Post-contract Period.—The following table shows weekly sales in the United Kingdom for the 1955-56 season. (For previous season's figures see page 482 of 1956 Year-Book).

PeriodButter (at 40 Boxes = 1 Ton): Total All GradesCheese (at 14 Crates = 1 Ton): Total All Grades
TonsAverage Price (Sterling Per Cwt.)TonsAverage Price (Sterling Per Cwt.)
Week ending s.d. s.d.
1955—Aug. 61,402324112,1011821
132,962324112,84318211
203,61932452,6941876
273,825324101,1021939
Sept. 36,68332501,0462022
104,810331103,1072054
172,786345111,7412126
241,80936341,7462227
Oct. 11,36137131,9752341
895737141,7142334
152,31237246792398
221,927379111,9452472
291,80439331,0362527
Nov. 591039453,92625911
122,97439631,0832624
193,66739883,6352660
262,46240127532663
Dec. 380440272,00426910
101,31140231,4722705
171,66940231,1482707
241,98440231,4772737
311,43440257412704
1956—Jan. 71,79040265472714
141,480400755627110
211,21039502,7232731
281,830*38301,11527610
Feb. 41,64838241,4532735
112,821367101,6482735
182,65235961,3942729
252,039359101,5632743
Mar. 32,70234661,1162741
102,50634011,4962728
172,58733931,9572755
242,26333911,03827011
312,172321111,6512740
Apr. 72,35832191,2892670
142,442321111,8282671
212,44831021,5272639
284,203298101,9472593
May 52,751289105,1652523
1210,45029008662542
194,86930232,0112546
263,25132231,9152532
June 2621329'63,8892551
9986328102,44626211
163,80033011,7512732
2353233442,85227611
3055733491,2102825
July 775032537252840
141,02431294022857
211,375299261428010
282,792294101,2492824
      Totals126,381341187,9112519

The following table (source, New Zealand Dairy Products Marketing Commission) shows the latest Official London Provision Exchange market reports for the particular week. (For previous year's prices see page 483 of 1956 Year-Book).

Price per Cwt. (Shillings)

Week EndedButterCheese (White)
Finest GradeFirst GradeFinest and First GradeGraded and Second Grade
1956-10 May290289252-253 
17 May290-305294-299252-253 
31 May330-329251-254 
7 June330329258-264 
14 June330-335329-334268-273 
21 June335334275-278 
28 June335334281-284 
5 July325324283-285 
12 July310-325314282-285 
19 July300299280-283 
26 July298299280-282 
2 August290-294289280-282 
9 August290289280-281 
16 August290-292289-291281-283 
23 August298-304297-301283-287281
30 August308-314309-311286-288281
6 September318-322317-321290-291 
13 September322-324321-323292-293 
20 September324323294-295292-293
27 September324323295-297 
4 October318-322317-321296-298 
11 October308-312307-311297-298 
18 October296-300295-299297-298295
25 October294293297-298293-295
1 November294293297-298293-295
8 November298297297-298295
15 November296-298294-297297-298293
22 November290288-289297-298293
29 November276-286275-285285-298284-290
6 December276275270-278266-272
13 December276275260-272260-262
20 December276274255-258248
28 December276275254-257248
1957— 3 January262-274261-273250-255242-246
10 January260259246-250240-244
17 January260259244-245236-240
24 January260259241-244232-238
31 January260259240-242230-232
7 February260259240-241230
14 February252-260251-259239-241229-230
21 February250-254249-251237-240 
28 February260-268259-267236-238228
7 March262-268261-267234-237 
14 March260259232-234 
21 March250249228-231219-221
28 March250249220-226210-214
4 April250-252249-251212-218202-206
11 April250-252249-251202-207192-196
18 April260259200-202190-191
25 April264-276263-273198-200188
2 May276275195-198185-188

Agreement on Guaranteed Price Procedure Between New Zealand Government and New Zealand Dairy Board.—An agreement on future guaranteed price procedure between representatives of the Government and the Dairy Board (after consultation with the Dairy Products Marketing Commission) was approved in June 1952 and published as parliamentary paper H-49, 1952. The principal features of the agreement are described below.

    1. The purpose of the guaranteed price scheme was to stabilize the income of the dairy farmer and to give him some certainty as to probable farm income in any production season.

    2. Over a long period of years the guaranteed price scheme must be to a large extent self-balancing. The existing reserves, wisely used, would help to cushion price falls over a number of years; and in the interests of national economy and for the welfare of the dairy industry, if and when reduction became necessary, prices to producers for butter and cheese should be reduced gradually and in harmony with reductions on real income borne by other sections of the community.

    3. In giving effect to the preceding clause there might be periods when overseas price recessions would lead to deficits in the Dairy Industry Account. The Government stated categorically that in such circumstances the existing statutory obligations as to the guarantee of prices would be honoured. This was understood as a statement that the existing provisions of the Act would be applied so that the dairy farmer would at least receive a price sufficient to meet costs and to maintain himself and his family in a reasonable state of comfort, and the necessary moneys would be made available by the Government.

    4. The desirability of discussions annually to consider whether the scheme was working in the interests of the industry and of the country as a whole was affirmed; and in particular to determine whether modification or amendments were desirable in the light of economic circumstances, marketing conditions, or practical considerations.

    1. Having regard to then economic circumstances and to the balances likely to be accrued in the Dairy Industry Account as at 31 July 1952, unless otherwise agreed by the Dairy Board, it was agreed until the end of the 1954-55 season to use for the benefit of suppliers and for dairy companies the full realizations received for butter and cheese in each season.

      In arriving at this conclusion the parties had in mind that trading in overseas markets demanded every effort on the part of the dairy farmer and dairy factory to produce and process a product of highest quality. The Dairy Division of the Department of Agriculture and the Dairy Board were engaged in a campaign aimed at securing this result, and it was inevitable that additional capital expenditure would be required both on the farm and in the factory, particularly in the initial period.

    2. For these specific purposes it was agreed—

      1. That a payment under section 22 (2) (b) of the Dairy Products Marketing Commission Act 1947 be made to all dairy companies on the basis of 3d. per pound for all butterfat received for manufacture into butter and cheese during the dairy companies' 1951-52 financial year, such payment to be in the form of a non-interest-bearing loan for approved capital expenditure. The loan would be cancelled by producing an audited certificate that the moneys had been expended on the approved capital expenditure:

      2. The Dairy Products Marketing Commission recognized the validity of a claim made by the Dairy Board that farmers would be required to incur additional capital expenditure on the farm for the above purposes, and when fixing the guaranteed price for the 1952-53 season it would take appropriate action to meet this requirement:

      3. If on calculating the guaranteed price on existing standards and methods for any of the 1952-53, 1953-54, and 1954-55 seasons it appeared probable that the realizations from sale of butter and cheese would exceed the guaranteed price so calculated, the Commission before fixing the price would confer with the Dairy Board with a view to determining by agreement how the full estimated realizations for the year should be used in accordance with clause 2 (a) above:

      4. Except as provided for below, should the movement of costs as measured by the Dairy Products Marketing Commission according to the present standards justify a price in excess of realizations, then the Commission should determine and pay such price.

    1. In March 1955 (or at any time that it was clear to the Commission and the Board that the total balance in the Dairy Industry Account might fall below £20 million) the parties to this agreement would again meet to review the operation of the scheme, to discuss any desirable amendment to the procedure operating at that date, and to arrange for the ascertainment of new cost standards and the period to which they might be applied.

    2. After the date of the operation of new standards as determined in accordance with paragraph 3 (a) above, the price fixed by the Dairy Products Marketing Commission should not in any event be lower than 95 per cent of the price indicated by the new cost standards. If at any time, and not later than 1960, it appeared that the total funds in the Dairy Industry Account might fall below £10,000,000, there should be consultation between the parties with a view to agreement to meet the position in the interests of the industry.

    3. The Dairy Products Marketing Commission should consult with the Dairy Board as to the advisability and procedure to be followed in any adjustment to the present standards in the guaranteed-price costs structure. Moreover, in any adjustment of the output per labour unit between the present standards and the standards to be adopted after 1955, due regard should be had to allocating a proper share of the increased efficiency in output per labour unit to the credit of the dairy farmer.

  1. The parties to the agreement were convinced of the urgency and importance of the need for increased capital investment in butter and cheese factories during the next few years. Considerable expansion of capital was required for the rebuilding and extension of existing factories, renewal of capital equipment, and modernization of manufacturing equipment.

Some portion of Dairy Industry Account funds could profitably be invested in dairy factories for the processing of by-products, as these would assist toward a diversification of products and an improved economic balance within the industry that would promote flexibility in marketing.

Dairy Products Marketing Commission Amendment Act 1956.—The Dairy Products Marketing Commission Amendment Act 1956, which comes into force on 1 August 1957, makes miscellaneous amendments to the Dairy Products Marketing Commission Act 1947. It reconstitutes the Dairy Products Marketing Commission, establishes a Dairy Products Prices Authority and a Dairy Industry Loans Council, and provides for the disposal of any annual surplus received from the sale of butter and cheese.

In future the Commission will consist of three members appointed as Government representatives, two members of the Dairy Board, and two members from outside the Dairy Board but nominated by that Board. The Chairman will be elected annually by the members of the Commission.

The Dairy Products Prices Authority will consist of one member appointed as Chairman, one member representing the Government, and seven members of the Commission. The principal functions of the Authority will be to fix the prices of butter and cheese acquired by the Commission and to authorize payments from any annual surplus obtained from the sale of butter and cheese. The Authority will fix the cost of production at the commencement of each season, and take this into account in fixing the prices to be paid for butter and cheese. The price fixed for the first season will be not less than 95 per cent of the cost of production, and in subsequent seasons will be not less than 95 per cent of the maximum price for the preceding season.

The Dairy Industry Loans Council is to consist of three members of the Dairy Commission, three members of the Dairy Board, the Secretary to the Treasury, and the Director-General of Agriculture. The functions of the Council will be to approve loans from the Dairy Industry Account to co-operative dairy companies and for other purposes in the interests of any primary industry.

Guaranteed Prices for Butter and Cheese.—The fixed prices in pence per pound of butter and cheese for export payable to dairy factories under the Marketing Act 1936 and, as from the 1946-47 season, under the Dairy Products Marketing Commission Act 1947, are now given.

Pence per lb

SeasonCreamery ButterCheese
Finest, 94 Points and OverFinest, 93-93 1/2 Points (Basic Grade)First 92-92 1/2 PointsSecond GradeFinest, 94 Points and OverFinest, 93-93 1/2 PointsFirst, 92-92 1/2 Points (Basic Grade)Second Grade

NOTE.—First grade (90-91 1/2 points) creamery butter is 0.5d. higher than second grade; first grade (91-91 1/2 points) cheese is 0.0625d. below basic grade.

1945-4619.05918.93418.871518.18410.7842510.75310.62810.378
1946-1721.56221.43721.374520.68712.0882512.05711.93211.682
1947-4823.97723.85223.789523.10213.2182513.18713.06212.812
1948-49—
  Aug. 1948-May 194924.72324.59824.535523.84813.6822513.65113.52613.276
  June-July 194925.868725.743725.681224.993714.2048514.173614.048613.7986
1949-50—
  Aug. 1949-April 195025.994425.869425.806525.119414.4019514.370714.245713.9957
  May-July 195026.592426.467426.404525.717414.6827514.651514.526514.2765
1950-51—
  Aug. 1950-14 Feb. 195127.283927.158927.096426.408915.1084515.077214.952214.7022
  15 Feb. 1951-July 195128.71528.5928.527527.8415.8142515.78315.65815.408
1951-5230.931630.806630.744130.056617.312517.215017.000015.8000
1952-5332.662232.537232.474731.787218.412518.315018.100016.9000
1953-54—
  Aug. 1953-14 Sept. 195332.662232.537232.474731.787218.487218.389718.174716.9747
  15 Sept. 1953-July 195434.478234.353234.290733.603219.450519.35319.13817.938
1954-55—
  Aug. 1954-30 Nov. 195434.067533.942533.8833.192519.056218.958718.743717.5437
  1 Dec. 1954-July 195534.621934.496934.434433.746919.332919.235419.020417.8204
1955-5633.389933.264933.202432.514918.672518.575018.360014.6100
1956-5734.260534.135534.073033.385519.579819.482319.267315.5173

The prices quoted in the preceding table were designed to enable efficient dairy companies to pay to suppliers the following amounts in pence per pound of butterfat for butter or for cheese manufactured over the period up to 1956-57. Also given is the average payout per pound of butter-fat supplied for seasons up to 1948-49, and of average net revenue for later seasons.

Pence per lb.

SeasonPrice Per Pound of Butterfat Used for—
Butter-making (Basic Price)Cheese-making (Basic Price)Butter-making (Average Payout or Net Revenue)Cheese-making (Average Payout or Net Revenue)
1945-4620.39422.39420.56822.884
1946-4723.39125.39123.69125.753
1947-4825.90727.90726.22927.945
1948-49—
  August 1948 to May 194926.75128.75127.36929.190
  June 1949 and July 194928.14630.146
1949-50—
  August 1949 to April 195028.24430.24428.72030.785
  May 1950 to July 195028.97230.972
1950-51—
  August 1950 to 14 February 195129.67831.67830.56832.425
  15 February 1951 to July 195131.40733.407
1951-5233.65536.15534.10636.764
1952-5335.67038.67035.91638.958
1953-54—
  August 1953 to 14 September 195335.83438.83437.61040.554
  15 September 1953 to July 195437.98440.984
1954-55—
  August 1954 to 30 November 195437.34939.83137.73240.133
1 December 1954 to July 195537.96140.240
1955-5636.45938.45936.54738.730
1956-5737.54840.548  

In addition to the guaranteed price payments, payouts were made from realizations of the sale of butter and cheese in the 1951-52, 1952-53, and 1953-54 seasons, in accordance with the agreement by which the full proceeds received from the sale of these commodities up to the end of the 1954-55 season were to be used for the benefit of suppliers and/or dairy companies.

The following distribution surpluses thus accruing from the 1951-52, 1952-53, and 1953-54 seasons were made:

  1. A monthly payment to dairy farmers during the 1952-53 season of 5/8d. per pound of butterfat used in the manufacture of butter and cheese. This payment was to assist with capital expenditure on dairy farms, and comprised 3/8d. per pound from the 1951-52 surplus and 1/4d. per pound from the 1952-53 surplus:

  2. A monthly payment to dairy farmers during the 1953-54 season of 5/8d. per pound of butterfat used in the manufacture of butter and cheese. Of this amount 3/8d. was made from the 1952-53 surplus:

  3. Payments to dairy companies as interest-free loans for approved capital expenditure, such amounts to be cancelled on production of certificates that the moneys had been expended on approved capital works, at the following rates: 3/4d. per pound of butterfat received for manufacture into butter and cheese during the 1951-52, 1952-53, and 1953-54 seasons.

There was no surplus distribution in 1954-55, the Commission in fact incurring a loss of £2,000,000, but in 1955-56 (after providing for an increase in the cheese differential mentioned below) a surplus distribution was made of 0.7d. per pound of butterfat.

The price differential between butterfat for manufacture of cheese and for butter was 2d. a pound higher for cheese during 1937-38 to 1950-51, 2 1/2d. for 1951-52, 3d. for 1952-53 and 1953-54, 2 1/2d. for 1954-55, and, as shown in the previous table, was first fixed at 2d. for 1955-56. By subsequent announcements during the season this was increased to 4d., the additional 2d. being distributed, not by increasing the guaranteed price for cheese, but by paying to factories 2d. per pound on all butterfat used by them in the manufacture of cheese during the season. For 1956-57 the price differential was 3d.

MEAT.—As in the case of dairy produce, details of bulk purchasing agreements, etc., for earlier years may be found in previous issues of the Year-Book, the account presented now relating only from 1948 up to the termination of the agreements as from the 1954-55 season.

An agreement was signed in 1948 covering the period to 30 September 1955, forming a long- term contract for the purchase of the exportable surplus of meat (after providing for domestic consumption and quantities to be mutually agreed upon for supply to other markets).

Negotiations on meat prices for the 1951-52 season resulted in the United Kingdom Ministry of Food making a special adjustment on all prices in view of certain circumstances and paying an average price increase of 15 per cent for lamb and approximately 10 per cent for mutton for the 1951-52 season. Beef prices were also substantially increased.

During the negotiations for the 1952-53 season's prices, alterations were made to the conditions of the long-term agreement in so far as they affected the annual price variations. It was agreed that for the remaining period of the existing long-term contract, variations in prices on account of movement in prices paid to other countries supplying the United Kingdom would be limited to 10 per cent instead of 7 1/2 per cent. However, if costs of production in New Zealand were proved to have moved by more than 10 per cent, the limitation would not apply and prices might move to the extent that costs had altered. The negotiations resulted in an overall average price increase of 12 1/2 per cent, and ranged from 15 per cent for lamb, quarter beef, and porkers, to 20 per cent for wethers, 7 1/2 per cent for edible offal, and no increase for ewe meat and baconers.

The contract prices for the 1953-54 season showed an increase of 7 1/2 per cent for lamb and lamb offals, and an average increase of approximately 5 1/2 per cent for mutton and mutton offals (varying according to weight and quality). Prices for frozen beef were increased by 5 1/2 per cent, while the premium of £26 10s. a ton for chilled beef was continued, and a new classification of frozen beef, "baby beef", received a premium of 13s. 4d. per 100 lb. over prime frozen beef.

New Zealand in March 1954 accepted the United Kingdom Government's offer to cancel the bulk purchase agreement for meat on 30 September 1954, a year before the contract was due to expire.

A review of the contract prices under the bulk-purchase agreements for the years 1944-45 to 1953 -54, i.e., up to the end of the bulk purchasing period, is given in the following table. All prices are in sterling per pound. Where seasons are combined, this indicates that there was no change during the seasons concerned.

Pence (stg.) per lb.

ItemSeason
1944-45 and 1945-461946-47 and 1947-481948-491949-501950-511951-521952-531953-54

*These prices were increased to 12.5349d. and 7.3420d. respectively for the period 23 April to 30 September 1951.

Lambs—
  Downs (23-36 lb.)8.59.137510.837511.650312.400314.386616.2517.47
  Canterbury (23-36 lb.)8.41669.047810.731211.536112.286114.20021,60617.26
  Crossbred (23-36 lb.)8.258.868710.518711.307612.057713.936215.8116.99
  Seconds (23-36 lb.)7.83338.42089.987510.736610.736612.434115.0316.16
Wethers—
  Prime (48 lb. and under)5.756.18127.33127.88117.88118.833610.6011.61
  Seconds (56 lb. and under)4.91665.28536.26876.73896.73897.30398.769.46
  Ewes (49-56 lb.)3.66663.94164.6755.02565.02565.49065.495.54
Quarter beef—
  Ox and heifer G.A.Q.—
    Hinds5.83336.27087.43757.99539.0343*12.2514.0914.86
    Fores3.41663.67284.35624.68295.2916*9.562511.0011.60
  Ox and heifer F.A.Q.—
    Hinds4.58334.9275.84376.28206.282010.7512.3613.04
    Fores3.33333.58334.254.56874.56878.68759.9910.54
  Cow G.A.Q.—
    Hinds4.33334.65835.5255.93945.93948.05749.2710.14
    Fores3.253.49374.14374.45454.45456.35557.318.48
Porkers—
  Full carcases (first quality)8.08338.992710.670111.470214.470219.223.5723.57
  Sides (first quality)8.41679.363511.1111.943214.943220.812525.9525.95
Baconers—
  Full carcases (first quality)8.16669.085310.7811.588514.588517.267218.1918.19
  Sides (first quality)9.083410.105211.9912.889215.889220.290620.9420.94

The f.o.b. prices (i.e., for bare meat only) paid to the exporters and freezing companies by the Meat Producers Board as agent for the marketing authority, the New Zealand Government, were fixed by the Meat Producers Board in consultation with the Government; factors such as contract prices, encouragement or discouragement of certain types of meat by means of price differentials, costs of production and movements therein being taken into account. From the commencement of the 1951-52 season meat producers received the full amount of the proceeds from meat exported (this was similar to the procedure in respect of dairy produce). To the bare meat prices were added allowances for pelts, fat, and wool in the case of lamb and mutton, and for fat and hides in the case of beef; deducted from the totals were the killing and freezing, processing, buying and administration, interest and insurance charges. The resultant prices were the basis of those paid to producers.

Overseas Prices in Post-contract Period.—With the cessation of contract prices, the only overseas information at present available consists of ruling wholesale prices for representative quantities of meat sold during the particular week. The following prices were compiled by the Imported Meat Trade Association on the basis of ex-store London for frozen meat and delivered to Smithfield Market for chilled beef. (For previous year's prices see page 488 of 1956 Year-Book.)

Pence (stg) per lb.

DescriptionWeight Range (lb.)19561957
13 Jan.10 Feb.16 Mar.13 April11 May15 June13 July10 Aug.14 Sept.12 Oct.9 Nov.14 Dec.11 Jan.15 Feb.15 Mar.
Crossbred wethers and/or maiden ewes48/U1715 1/213 1/213 1/214 1/217181919 1/219 3/418 3/41818 1/21918 1/2
 49-561614 1/213'12 1/213 1/215 1/2161717 1/217 1/2171616 1/216 1/216 1/2
 57-6415 1/213 1/21211 1/211 3/4141516161615 1/2151514 3/415
 65-7214121110 1/210}121314141413 1/213131313
Ewes48/U14 1/212 1/211119 1/29 1/29 1/499 3/410 1/210 1/212   
 49-5513 1/211 1/2109 1/28 1/2887 1/288 1/28 1/29 1/2   
 57-6412 1/2108 1/28 1/487 1/2777 1/47 1/27 1/29   
 65-7211 1/28 1/27 1/27 1/476 1/465 3/46 1/46 1/26 1/28   
Lamb, Crossbred—
  1st quality29-3625 1/224 1/22322 1/222 1/222 1/22425262625252828 1/226
 37-42222321 1/221212223 3/424 1/224 1/224 1/223 1/223 1/2272725
  2nd qualityabout 3124232221 3/422222323 1/224 1/2252424272826 1/2
Lamb, Downs—
  1st quality25-36 24 1/22322 1/422 1/422 1/22425 1/2262625 2828 1/425 1/2
 37-42 2321 1/221212223 3/424 1/224 1/224 1/223 1/2 2726 3/424 1/2
  2nd qualityabout 31 232221 3/422222323 1/224 1/2252424272826 1/2
Lamb, Canterbury—
  1st quality29-3624 1/224 1/22322 1/222 1/222 1/224 1/425262624 3/4252828 1/226
 37-42232321 1/221212223 3/424 1/224 1/224 1/223 1/223 1/2272725
  2nd qualityabout 3123232221 3/422222323 1/224 1/2252424272826 1/2
Chilled beer—
  Ox hinds100-185212117 1/223 22251816 1/416 1/2151421 17
  Ox fores100-18514 1/214 1/41012 11 1/2139 1/21111 1/411 1/48 1/210 10
Frozen beef—
  Ox hinds145-21015 1/215 1/213 1/213121617 1/217 1/2191918 1/213 3/41515 1/215 1/2
  Ox fores145-210131311109 1/210 1/2121111 1/21211}1010 1/21111
Pigs (1st quality)60-100  23       26    

Opening Schedule Prices.—Under the stabilized prices and costs procedures operative up to the 1947-48 season, the fat stock schedule prices at which meat operators purchased from producers were fixed. In the two seasons following, while the opening schedules for each season were fixed in consultations between the Government, the Meat Producers Board, and the meat operators, subsequent movements during each season due to wool growth and fluctuations in prices of byproducts were the responsibility of the meat operators. Since the beginning of the 1950-51 season the fixing of the schedule prices has been wholly in the control of the operators. The Meat Producers Board keeps a close watch on the prices being received for the meat and all by-products and on processing costs to ensure that the schedule prices give a just and equitable return to producers.

The opening schedules for the 1946-47 to 1956-57 seasons are given below.

ItemSeason
1946-471947-48 and 1948-49*1949-501950-51 1951-521952-531953-541954-551955-561956-57

* Schedule unchanged from 1947-48 except for boner beef, which rose to 31s.

† Owing to the late commencement of the season, figures quoted are the effective opening prices issued in December 1950.

‡ From 1947-48 to 1952-53 price is given for 720 lb. and under, from 1953-54, 880 lb. and under, and for 1954-55 and 1955-56, 800 lb. and under.

Price of Lamb, Wether, and Ewe Mutton, in Pence per Pound
Lambs—
  Downs (29-36 lb.)1011 1/811 1/2191618 3/419 3/4272423
Canterbury (29-36 lb.)16 3/419 1/220 1/4
Crossbred (29-36 lb.)9 3/410 7/811 1/418 3/416 1/21919 3/4
Seconds (29-36 lb.) (N.I.)9 1/89 7/810 1/217 3/41518 1/4192623 1/222
Wethers—
  Primes (48 lb. and under)—
    North Island6 1/27 1/87 1/210 1/2101112 1/214 3/416 1/415 3/4
    South Island6 1/46 7/87 1/410910 1/311 5/814 1/215 1/215
  Seconds (56 lb. and under)—
    North Island5 3/46 3/86 3/49 1/299 1/810 3/811 3/413 1/412 3/4
    South Island5 1/26 1/86 1/2988 5/89 1/211 1/212 1/212
Ewes (48 lb. and under) (N.I.)4 1/84 3/45 1/87 1/26 1/25 3/47 1/26 1/48 3/48 5/8
Price in Shillings and Pence, Per 100 lb. of Beef (N.I.)
Quarter beef—
  Ox, chiller beef (680 lb. and under)      127 0140 0120 080 0
  Ox—
    G.A.Q. (840 lb. and under)46 051 057 070 091 0100 0104 0124 0110 065 0
    F.A.Q. (all weights)40 043 049 058 6.67 088 692 0107 6100 055 0
  Heifer—
    G.A.Q. (840 lb. and under)45 050 056 070 091 0100 0104 0124 0110 060 0
    F.A.Q. (all weights)39 042 048 058 667 088 692 0107 6100 050 0
  Cow, G.A.Q. (all weights)38 041 647 658 064 675 073 0100 090 050 0
  Boner beef (cow)26 028 634 048 050 075 060 085 080 070 0

The large increases which occurred in the 1950-51 season resulted mainly from the lifting of the stabilization controls on by-products, so that the full returns from these were available to producers, rather than from increases in the bare-meat prices, which were only moderate. The prices for subsequent seasons reflect the movements in the prices of both meat and by-products.

Minimum Prices for Export Meat.—The institution of a system of minimum prices for meat exported from New Zealand was provided for by the Meat Export Prices Act 1955. The following table gives the minimum prices for the 1955-56 season contained in a schedule to the Act, and which also apply during the 1956-57 season.

Class of MeatGrade of MeatMinimum Price Per Pound d.
LambPrime Down Cross 36 lb/U.15 1/2
Wether muttonPrime 49-56 lb.8 1/4
Ewe muttonPrime 49-56 lb.4 3/4
Chilled beef680 lb./U.13 1/8
Ox and heifer quarter beefG.A.Q.: under 800 lb.9 3/4
Quarter cow beefG.A.Q.: all weights8 1/4
Boner cow, ox, bull, and heiferAll weights.. 10 1/2 (boned out value)
Veal (sides or quarters)Under 280 lb.9
PorkersPrime 60-80 lb.15
BaconersPrime 111-160 lb.14

TALLOW.—Bulk purchase by the United Kingdom of all surplus tallow available for export commenced during the 1939-40 season. The contract system was terminated as from the end of the 1951-52 season, the export of tallow then reverting to private enterprise. A table showing the prices obtained and other details regarding the tallow contract over the period in which the contract system operated (1939-40 to 1951-52) is given on page 427 of the 1953 Year-Book.

FARM INDUSTRY RESERVES.—In the preceding pages reference is made to amounts paid in to the various primary produce accounts, these having accrued from the surpluses obtained after deducting from the contract or sterling prices received for primary produce the amounts paid to producers by way of guaranteed prices, purchase prices, etc.

The following table shows the balances remaining in the various farm industry reserves during the period quoted, the source of the data being the parliamentary paper B-5.

£(N.Z.)

Balances as at 31 JulyDairy Industry Stabilization AccountMeat Industry Reserve AccountsWool Capital Account*Wool Contributory ChargeWool Retention Moneys

* Profits from disposal of wool stocks taken over by Wool Disposal Commission at the end of the war.

†This was a levy on all wool sold at auction.

‡ As at 30 September from 1948.

§ No balance remained in wool retention accounts after 31 January 1957.

1942 749,801   
1943 1,883,547   
19441,066,5994,317,432   
19454,675,4469,159,084   
19464,703,24012,201,928   
19478,907,45918,222,1405,046,287 Dr.1,165,402 
194812,663,48725,628,6351,047,385 Dr.2,592,618 
194915,331,08729,535,6605,181,539 Cr.4,205,416 
195018,449,54735,337,27312,933,244 Cr.5,563,391 
195123,037,18937,255,65119,608,187 Cr.6,166,72132,755,151
   Wool Commission Account 
   (30 June) 
195223,584,77840,429,37926,672,68528,117,210
195324,147,26140,449,82227,630,16321,786,961
195424,739,48539,550,76128,387,86816,154,105
195523,496,48140,276,65228,230,36010,226,000
1956 (estimated)28,678,77840,600,00028,991,0002,850,000§

SUBSIDIES.—It is clear that for the effective operation of the policy of price stabilization a system of Government subsidies has been essential. An account of the use and extent of subsidies paid in 1942-43 and from 1947-48 to 1951-52 was given in parliamentary paper B-5 of 1952. The following table is chiefly extracted from that publication, but has been brought up to date by the inclusion of corresponding figures for subsequent years up to 1956-57.

£(000)

Subsidy PaymentsYear Ended 31 March
194319501951195219531954195519561957

* Includes meat, sugar, tea, etc.

† Includes gas, etc.

‡ Although subsidies are shown for March years and recoveries for July years, the final figures shown for "Subsidies, net" represent a fair approximation to general subsidies paid each year.

§The subsidy on the carriage of lime is not now charged to the Farm Industry Stabilization Account, but is charged to Agriculture Department vote.

Shipping, transport, and incidental271,559731,106381    
Coal production and distribution3562,8904879100    
Primary production1,3157278741,0546344955594853§
Essential clothing and foodstuffs—
  Clothing1,4832,3061,8571504    
  Dairy produce4,3573,3695,8247,6608,6887,9087,8528,880 
  Other*1,2711,06513964213313621 
Wheat5832,7182,0004,4634,8265,0003,9003,0033,003
Miscellaneous12144116938943231420464465
Total subsidies, gross (March year) Less recoveries from farm industry stabilization accounts3,67314,8439,36415,31514,71514,45112,92311,82512,351
  (July year)413394672626365365366549 
Subsidies, net3,26014,4498,69214,68914,35014,08612,55711,27612,351

The general position is that stabilization subsidies increased up to 1947 as import prices and wages rose. The full increase in costs above basic level (mainly 15 December 1942) has not always been covered by subsidy. In most cases a part of the increased cost has had to be borne by the industry concerned, either at the source of the increased cost or at some later stage in the distribution of the goods and services.

In 1947 the Government decided to review the position. The number of commodities on which subsidy was paid had grown too large for administrative ease. Also to have continued subsidies at the previous rate would have raised the estimated expenditure to £19.6 million, which would have imposed a severe strain on the public finances. Further, a great many of the costs met by subsidy were permanent. Accordingly many farm subsidies, which on an annual basis cost approximately £4.2 million, were removed, and compensating adjustments were made in the prices of farm products. Of the other subsidies, all the smaller and less important ones were abolished, in part or in full. There were also increases in the price of shipping and railway freights and fares, tea, sugar, and many other commodities. On an annual basis these subsidies would have cost about £8 million.

In spite of the removal in 1947 of total subsidies of over £12 million a year, the cost of the remaining subsidies had risen to a level of over £17 million a year by 1950. The Government therefore removed subsidies in May 1950 amounting to £12 million a year. The subsidies on coal and tea were discontinued (apart from certain special payments), and subsidies on flour, bread, milk, butter, and eggs were reduced substantially. In addition, rail freights and fares were again increased. In September 1951 the retail prices of butter, bread, flour, and gas were substantially reduced, the subsidies on these commodities being adjusted accordingly. By mid-1952 subsidy expenditure was running at the annual rate of £17.5 million. Following upon the general wage order of November 1953 (see Section 38c), the position was again reviewed. It was decided that the maintenance by subsidy of price levels previously subsisting would have entailed too great a burden on the public funds, and accordingly the prices of subsidized items, particularly bread, butter, and milk, were allowed to rise. Nevertheless these items still carry heavy subsidies, as is indicated in the following table, which shows the amount of subsidy paid on the main commodities in April 1957.

 s.d. 
Butter10.1369per lb.
Milk03.875per quart.
Bread03.7per 2 lb. loaf.
Flour42.8per 25 lb. bag.
Gas20per 1,000 cubic feet sold.
Eggs04per dozen.

Chapter 20. SECTION 20—FARM PRODUCTION

20 A—GENERAL

NEW ZEALAND is a pastoral country. Of the 43,000,000 acres occupied at 31 January 1950 by farm holdings of one acre and over situated outside borough boundaries, 32,000,000 acres represented sheep farming and beef cattle raising holdings and 6,000,000 acres dairy farming holdings. At 31 January 1955 sown pastures covered 17,500,000 acres, and areas of tussock and other native grasses a further 13,000,000 acres. These grasslands support nearly 5,900,000 cattle (of which 1,995,000 are dairy cows in milk) and over 39,000,000 sheep. After allowing for 10,000,000 acres taken up by areas in fern, scrub, and second growth, standing bush, and barren and unproductive land, approximately 2,500,000 acres are left, this comprising areas in field crops, private gardens, market gardens, orchards, plantations of trees, fallow land, areas in flax, etc. Of the field crops, cash crops such as wheat, oats, barley, peas, linseed, and potatoes account for 239,000 acres, and green fodder and root crops for winter and summer supplementary feed for stock, 815,000 acres. In addition, a further 91,000 acres were sown under wheat, oats, barley, and maize for the purposes of green fodder, or chaff, hay, and silage. From this an indication is obtained of the importance of the grazing animal in the economy of this country.

The natural tussock grassland, which occurs mainly on the hilly and mountainous country to the east of the Main Divide of the South Island, is used for extensive pastoral farming, where the main product is wool and in some instances store sheep, while on the less steep country, particularly in the North Island where there is surface-sown grassland, both store sheep and cattle are additional products. The third type of grassland, that sown after ploughing, is found on the flat and gently undulating country of both Islands and is used mainly for the production of meat and dairy produce. It is in the latter area that considerable progress has been made over the past thirty years. Here farmers have exploited the use of certified strains of grasses and clovers and phosphatic fertilizers and lime. However, the advent of the blower, and, more particularly, the use of aircraft for top-dressing hill pastures, has resulted in considerable areas of surface-sown grassland being top-dressed in recent years. This treatment of country otherwise inaccessible to normal top-dressing methods is resulting in considerable improvement to hill pasture, with a consequent increase in carrying capacity and production.

With the development of the country's water resources for hydro electricity most farming districts have been reticulated with electricity, which is being put to a variety of uses on the farm, but by far the most important is that of providing power for milking machinery. For instance, in the dairying districts of the North Island there are approximately 82,000 electric motors, which is 67 per cent of the total number used on farms in New Zealand.

The North Island.—Because of the temperate climate, which makes possible the grazing of stock outside all the year round, many parts of the North Island have proved very suitable for dairying. Approximately 84 per cent of the total dairy cows in the country are grazed on the flat and undulating land of Northland, the Waikato, Bay of Plenty, Taranaki, Manawatu, and Horowhenua districts. Pastures of high feeding value form the basis of the industry. The main winter supplementary feed is hay and silage made from the surplus spring and early summer growth of the pastures. The area saved for this purpose in these dairying districts comprises approximately 65 per cent of the total area saved in New Zealand. In most of the dairying areas fat-lamb raising is associated with dairying, particularly in the Waikato and the Bay of Plenty.

Various forms of sheep farming are carried on throughout the Island, but it is most concentrated on the eastern section from the Wairarapa, through Hawke's Bay, to the hill country north of Gisborne. Approximately half of the sheep in the North Island are in this section. Extensive sheep farming is the main feature, the receipts from the sale of store sheep and store cattle contributing a considerable portion of the farm revenue.

Where climatic and soil conditions are favourable, orchard areas, market gardens, and other specialized types of farming are found. The Pukekohe district, 30 miles south of Auckland, provides that city with a considerable portion of its vegetable requirements as well as being the main onion-growing area of the Island. Wellington draws most of its vegetable supplies from the Otaki and Levin districts, while Ohakune, in the centre of the Island, with climate and soils suitable for the production of cabbages and broccoli, supplies both cities with these vegetables. Further large areas are utilized for these purposes in the Hastings district of Hawke's Bay, which is also the largest contributor of canned or processed vegetables.

In certain particularly warm areas of the Island with suitable soils citrus fruits are grown, the principal areas being Kerikeri, in Northland; Tauranga, in the Bay of Plenty; and Gisborne. The main orchard area is located at Hastings, where there are approximately 3,000 acres of pip (apples and pears) and stone fruits.

It is in the North Island that the principal areas of undeveloped land remain, these being situated mainly on the central plateau. The State is active in developing some of this land for farming.

The South Island.—Sheep farming is carried on in practically all parts of the Island. On the tussock grasslands, particularly on the higher parts, extensive sheep farming is practised. Merino and half-bred flocks predominate, with emphasis on the production of fine wool. Because of the comparatively severe climate—hot, dry summers and cold winters with occasional heavy snowstorms—there is a considerable risk of heavy sheep losses. On the easier hill country, in addition to returns from wool, a considerable portion of the revenue comes from the sale of store sheep, which are purchased by the farmers on the plains and undulating country for fattening and for flock-replacement purposes.

On the plains and downlands of Canterbury and in parts of Marlborough, Otago, and Southland, where the climate and soils are suitable, arable mixed farming is a feature. Approximately 90 per cent of New Zealand's wheat, oats, and barley acreage are in these districts. Associated with cereal production is fat lamb raising, for sheep and lambs are fattened on the majority of these farms. Because of the dry summers and relatively severe winters considerable areas (approximately three-quarters of the New Zealand acreage) of rape, kale, turnips, and swedes are grown for summer and winter supplementary feed.

Dairying is very localized and is concentrated near the cities to cater for whole-milk requirements. Districts where herds are run for dairy-factory supply are the plains areas of Southland; parts of Nelson and Westland, and Banks Peninsula, in Canterbury.

Market gardening is carried on near the cities, and on the rich soils near Christchurch some 2,400 acres are devoted to this purpose; also to the immediate south of Oamaru and on the Taieri Plains just south of Dunedin there are other areas aggregating 1,200 acres. Nelson also produces considerable quantities of fresh and processed vegetables, most of which are marketed in Wellington.

With the warm climate and more frost-free areas, the Nelson and Motueka districts are the most important orchard districts in the country, as well as being the centre of New Zealand's tobacco-growing industry. Around the Alexandra and Roxburgh districts in Central Otago, with its almost continental climate, is situated New Zealand's major stone-fruit-growing area.

DEPARTMENT OF AGRICULTURE.— The Department of Agriculture has existed as a separate Department since 1893. In 1953 it was, however, formally constituted by virtue of the Department of Agriculture Act 1953. The principal functions of the Department as set out therein are—(a) to promote and encourage the development of all phases of the agricultural, pastoral, and horticultural industries in New Zealand, including the stock, poultry, fruit, vegetable flax (Phormium tenax), tobacco, hops, and honey production industries, with a view to maintaining and improving the quality of the products derived from those industries and increasing the production of those products; (b) to promote and encourage the marketing and sale of those products.

Under the control of the Minister of Agriculture, the Department of Agriculture provides a service of which the main object is the advancement of the interests of primary production. Under a Director-General of Agriculture there are Directors of Divisions of Animal Industry, Animal Research, Dairy, Extension, and Horticulture.

While the service is primarily educative, the Department administers a number of acts and regulations. Under the Animal Industry Division all meat killed at meat export slaughterhouses and abattoirs is inspected by qualified officers, and periodical inspections are carried out at registered rural slaughterhouses.

All meat intended for local consumption is graded by the inspection staff. The Division is responsible for the control of infectious diseases of livestock, and vaccination and testing is carried out to prevent and eradicate certain serious stock diseases. Special attention is given to herds supplying milk for human consumption. Livestock husbandry forms an essential part of the extension service provided by this Division.

All stock exported and imported is examined by the Division's veterinarians. Special instruction and advice are given in poultry keeping, swine husbandry, and wool growing and handling. Among other activities the Division is concerned with the eradication of rabbits and noxious weeds. Recently a wool testing service has been established.

The Animal Research Division, which was formed in 1939, works in co-operation with the Animal Industry, Dairy, and Extension Divisions, as well as other institutions engaged in agricultural research, notably the Department of Scientific and Industrial Research and Massey and Canterbury Agricultural Colleges. The Division has well-equipped laboratories at Wallaceville and at its research station at Ruakura, an important function of the former being the provision of a veterinary diagnostic service, while the latter is mainly concerned with animal nutrition and breeding.

Instruction in the manufacture of butter, cheese, milk powder, and casein is given by the Dairy Division. Dairy produce is inspected and graded before shipment and a close supervision is exercised over butter and cheese at all stages of manufacture. Dairy farm premises are inspected, and the Division is responsible for the registration of town milk supply premises. It also provides technical advice on the administration of market milk treatment. The Division has modern laboratories at Auckland and Wallaceville, which provide a comprehensive examination of dairy products as a background to its controls of dairy produce quality. The Division is responsible for the registration and licensing of dairy factories, approval of their design, general suitability, and economic justification.

The Extension Division is concerned with research and advisory work in soil management, crop and pasture production, and farm management. A field staff of instructors in agriculture acts as a link between the research stations and the farmers and also carries out co-operative field trials and demonstrations on farmers' properties. The Division has special sections devoted to seed certification and crops, field experimental work, pastures, farm management and economics, fertilizers and lime, rural sociology and home economics, and farm engineering and machinery. Soil testing and assistance with farm drainage work are both undertaken on a fee-paying basis. The Division controls the following stations: Seed Testing Station, Palmerston North; Rukuhia Soil Research Station, Hamilton; Experimental Area, Marton; Phormium plantation, Moutoa; Flock House Farm of Instruction, Bulls; Winchmore Irrigation Station, Ashburton; and Invermay Agricultural Research Station, Mosgiel.

The Horticulture Division provides an advisory service to fruitgrowers, market gardeners, nurserymen, flower-growers, and beekeepers. Its officers inspect market gardens, nurseries, and apiaries for disease and grade pip fruit for export and home consumption. The Division operates the plant quarantine service in New Zealand, which is designed to prevent the introduction of diseased plant material. At Te Kauwhata Experimental Station investigations are carried out into grape and wine production, and at Levin Research Station into berry fruit and vegetable production.

The Department's Editorial Section is responsible for the production each month of the Journal of Agriculture, which has a very wide circulation amongst farmers. In addition, a large number of bulletins on special subjects are produced, most of which are available free of charge.

In 1953 the former Marketing Department was absorbed by the Department and, although most of its functions have been assumed by statutory producer Boards, the Department is concerned with many of the issues relating to the marketing of primary products, both overseas and within New Zealand, as well as with general economic problems affecting farming industries as a whole.

DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH.— Under the supervision of the Council for Scientific and Industrial Research the Department devotes a large part of its activities to the promotion of agricultural research. In carrying out its programme the Department initiates and encourages the organization of co-operative research in industry, hence research associations have been formed which are subsidized by the Department and assisted by its staff in order to make the best possible use of the available resources.

The work of the branches of the Department covers nearly every phase of agriculture. The Botany, Crop Research, and Plant Diseases Divisions, together with the Fruit Research Station, all assist farmers, fruitgrowers, nurserymen, and gardeners in their specialized spheres to eliminate (or to reduce the destructive effect of) all types of plant diseases and insects, to increase yields, and to improve the strains of various plants. The Animal Ecology Section conducts research on rabbits and other pests, and suggests control measures. Regional survey work is carried out to obtain information on native and introduced mammals and birds.

The improvement of New Zealand pastures, through studies of plant breeding, pasture ecology, plant chemistry, etc., is the aim of the Grasslands Division. Overseas species are plot-tested, and studies are made with a view to increasing yields of clover seed, etc. The Entomological Research Station has made a major contribution to pastoral farming in devising a method of controlling grass grub; in addition, it handles a wide range of insect problems in agricultural crops. The Soil Bureau is responsible for a soil survey of New Zealand and carries out research on the relationship of the soil to problems of agriculture, forestry, and engineering; problems of phosphate fixation and the uptake of phosphate by plants are also being investigated.

The Wheat Research Institute, the Tobacco Research Station, and the Hop Research Station are subsidized by industry and controlled by the Department. The Wheat Research Institute seeks improvement in the quality of bread by flour and wheat tests. A moisture-testing service aids farmers to determine when crops are ready for harvesting. The Tobacco and Hop Research Stations investigate the use of fertilizers, control of diseases, and general management, and test new varieties in their respective fields.

Among the incorporated research associations is the Dairy Research Institute (N.Z.) (Inc.), concerned with nearly every aspect of dairy production—utilization of products, farm efficiency, diseases, and hygiene. Much experimental work in this direction is carried out at Massey Agricultural College. Another association is the New Zealand Fertilizer Manufacturers' Research Association (Inc.), which tests experimental fertilizers and studies the production, distribution, and effect of fertilizers.

The Value of Agricultural Research.—The Wheat Research Institute has been responsible for improvement in wheat, flour, and bread quality by the breeding of Cross 7, Yielder, Hilgendorf, and other wheats, and by devising methods of utilizing sprouted wheat and controlling the vitamin B content of flour; the Dairy Research Institute has achieved such results as great improvements in cheese starters, the manufacture of dried butterfat, and the discovery and control of bacteriophage.

Corky pit of apples and other deficiency diseases of fruit have been overcome, and investigations in transport have vastly improved the quality of fruit arriving in the United Kingdom. Transport investigations in meat resulted in consignments of chilled beef sent from New Zealand to the United Kingdom arriving in excellent condition.

A soil survey of the whole of New Zealand has been completed, and the problems of mineral deficiency diseases such as bush sickness and dopiness have been solved. Tobacco research has resulted in the area devoted to this crop being doubled, simultaneously with the doubling of the yield per acre, and the industry has become one of the most prosperous of the rural industries. Effective control has been secured over a wide range of plant diseases. Ball smut and loose smut of cereals have almost disappeared, and dry rot of brassicas has materially lessened. A system of certifying spray materials effective against a wide range of diseases of horticultural and garden crops has been devised. A most effective culture to promote lucerne growth has been found and maintained. Numerous serious insect pests have been brought under control, and the diamond-back moth, white butterfly, and codling-moth are not the menace they formerly were; subterranean caterpillar also has been checked and, more recently, grass-grub, the most costly insect of all, has capitulated to the newer chemical insecticides.

The work of the Crop Research and Grasslands Divisions has resulted in the development and expansion of a profitable farm-seeds industry. Chewings fescue seed, which lost its germination during sea transport, can now be shipped overseas with confidence, following the development of a seed-drier and airtight packaging by the Dominion Laboratory. Rape and turnip seed, hitherto imported from overseas, is now produced locally and exported, as the result of breeding and selection work done by the Crop Research Division, which, in addition, has improved the quality of oats, barley, lupins, carrots, and lucerne seeds. Research into the breeding of new strains of pasture plants, and into the utilization and management of pastures, has done much to enable New Zealand farming to lead the world in grassland and bring its per-acre yield of meat and dairy produce to levels not attained elsewhere. Improved methods of pasture establishment, together with the use of chemical sprays, have done much to control the noxious weeds that seriously reduced farm production in 1926 and the years that followed.

CLASSIFICATION OF HOLDINGS BY PRINCIPAL FARMING ENTERPRISES.—The collection of farm production statistics in 1950 was carried out as New Zealand's part of the World Census of Agriculture. Detailed information from punch-card machine tabulations has been published separately in the report on the New Zealand Census of Farm Production, 1949-50.

For purposes of fuller analysis of the New Zealand results than is customarily given in Land District tables, counties with some affinity as to farming types, etc., have been regrouped to form what have been designated "Regional Areas", and certain tables given in Sections 20B and 20C of this volume are set out on this basis. The following sets out in detail the content of these regional areas—

Regional AreaCounties Included
NorthlandMangonui, Whangaroa, Hokianga, Bay of Islands. Whangarei, Hobson, Otamatea, Rodney, Waitemata, Eden.
South AucklandManukau, Franklin, Raglan.
Waikato and Hauraki LowlandsWaikato, Waipa, Otorohanga, Hauraki Plains, Piako, Matamata.
Cape ColvilleGreat Barrier, Coromandel, Thames, Ohinemuri.
Central PlateauTauranga, Rotorua, Taupo, Whakatane.
Western UplandsKawhia, Waitomo, Taumarunui, Ohura, Whangamomona, Clifton, Kaitieke, Waimarino.
TaranakiTaranaki, Inglewood, Egmont, Stratford, Eltham, Waimate West, Hawera.
East CapeOpotiki, Matakaoa, Waiapu, Uawa, Waikohu, Cook.
Hawke's BayWairoa, Hawke's Bay, Waipawa, Waipukurau, Patangata.
RangitikeiPatea, Waitotara, Wanganui, Rangitikei, Kiwitea, Pohangina.
ManawatuDannevirke, Woodville, Oroua, Manawatu, Kairanga, Horowhenua, Pahiatua.
CastlepointWeber, Akitio, Castlepoint.
WairarapaEketahuna, Mauriceville, Masterton, Wairarapa South.
FeatherstonHutt, Makara, Featherston.
NelsonWaimea, Takaka, Collingwood, Buller, Murchison, Inangahua.
MarlboroughSounds, Marlborough, Awatere, Kaikoura.
WestlandGrey, Westland.
North CanterburyAmuri, Cheviot, Waipara.
FoothillsAshley, Oxford, Tawera, Selwyn.
Canterbury PlainsKowai, Rangiora, Eyre, Malvern, Paparua, Springs, Ellesmere.
ChristchurchWaimairi, Heathcote, Halswell.
Banks PeninsulaMount Herbert, Akaroa, Wairewa.
MackenzieMackenzie.
South CanterburyAshburton, Geraldine, Levels, Waimate, Waitaki.
OtagoWaihemo, Waikouaiti, Peninsula, Taieri, Tuapeka.
Central OtagoManiatoto, Vincent, Lake.
SouthernBruce, Clutha, Southland, Wallace.
RemainderChatham Islands, Stewart Island.

A type classification of farm holdings was also brought into use in 1949-50 and figures, as to the number of holdings of various principal types of farming enterprises, in the several regional areas (each Island separately) are here presented.

Regional AreaPredominant EnterpriseTotal
Sheep FarmingDairy FarmingBeef Cattle RaisingMixed FarmingArable Cropping (Including Grass-seed Production)Arable Cropping (Including Grass-seed Production)Poultry KeepingGrazing AreasResidentialOther* and UnspecifiedIdle and Unused

* Including horse raising, 473; plantations, 272; pig raising, 217: timber cutting, 75; and phormium tenax (N.Z. Flax), 22.

† In regional area statements, 95 holdings in the Chatham Islands are excluded from the North Island totals but included in the South Island totals.

Northland7857,31333058868821980487442267012,171
South Auckland7563,5048617229413089317101785,374
Waikato and Hauraki Lowlands8776,936823717528293165113688,675
Cape Colville128849334 234955432681,290
Central Plateau2842,2664419921136931131141203,309
Western Uplands1,3951,149602913537117276773,068
Taranaki4393,9742217 353714417882184,946
East Cape9451,10825107931288110635456533,056
Hawke's Bay1,9877393558966547119941861504,368
Rangitikei1,8201,263291829433010230648283,716
Manawatu1,4132,9904125281856216026857395,268
Castlepoint2742311   217 8326
Wairarapa636661525191017328830101,533
Featherston354489812641435010129501,183
    Totals, North Island12,09333,2648014272922,4227612,2403,4251,2211,33758,283
Nelson5291,01475775180636192368'2112163,575
Marlborough74039397317696313716456521,827
Westland1374081597 13750111731491,11-1
North Canterbury59639350796642651610912
Foothills3388315889313640842122803
Canterbury Plains426727141618096989153415152343,049
Christchurch382711017755467875354119401,623
Banks Peninsula271193945255524495622
Mackenzie2871313162 1622812380
South Canterbury2,23288531542948213277378744166666,482
Otago93855834762918076144227102862,450
Central Otago661833186616871189128681,311
Southern3,9081,8368422115137434365771861867,665
Remainder7437  1 1371556194
    Totals, South Island11,1756,5064401,3072,4942,1936911,7343,3031,1621,00232,007
    Totals, New Zealand23,26839,7701,2411,7342,7864,6151,4523,9746,7282,3832,33990,290

SUBSIDIES, GRANTS, ETC.—For many years a number of grants and subsidies have been paid to the farming industry from public funds. In addition, agricultural and pastoral production is assisted financially by grants to the agricultural colleges. A more detailed survey of subsidies generally is given in Section 19.

Subsidies reached their peak during the war and immediate post-war years, details of which are available in earlier issues of the Year-Book. In more recent years there has been a considerable curtailment of this type of assistance to farmers.

The following table shows the payments during the last three years.

£

Subsidy, Grant, etc.1953-541954-551955-56

* Refer text of following paragraph.

Carriage of lime430,515*523,837*482,285*
Carriage of fertilizers37,08032,434 
Imported phosphatic fertilizers23,894*  
Stock Act: compensation and incidental expenses65,07555,75449,615
Compensation for loss of production from compulsory tuberculosis test68,89636,07032,086
Meat Act: compensation17,43917,79916,156
Grants to Agricultural Colleges167,009175,297190,662
Subsidies to Rabbit Boards395,209425,255419,614
Grants to Rabbit Boards320,000290,000235,000
Cow-testing organizations35,33335,58335,583
Destruction of wild pigs1,5491,2331,666
Destruction of kea179163113
Veterinary Services Council50,00050,00050,000
Nassella Tussock Act: subsidies to Boards25,50620,60522,580
Noxious Weeds Act: subsidies to County Councils and Road Boards17,83922,04124,993
Compensation and incidental expenses to control outbreaks of scrapie disease 34,75733,539

In certain cases there is an agreement between the farmers' organizations and the Government that certain proportions of the subsidy paid can be recovered from the various stabilization or reserve accounts of the farming industry. In the above table the items to which this arrangement applied during the period covered are indicated by asterisks. The total amount recovered in each of the three (July) years was £364,900 in 1953-54, £365,500 in 1954-55, and £472,800 in 1955-56.

Comment on some of the more important items is necessary to explain their origin and significance.

Fertilizer and Lime Subsidies.—The transport of lime has been subsidized for many years to encourage its wider use. The present system was introduced in 1947, the former system of free railage for 100 miles having previously been withdrawn.

The present system, which has been amended slightly several times, is designed to encourage lime use by assisting farmers remote from limeworks. In very broad terms the road transport subsidy is granted at the rate of 4d. per ton-mile for distances of from 4 to 20 miles and after that, 6d. per ton-mile. This applies to deliveries direct from works to farm. For deliveries by road after carriage by rail, the rate is 4d. for 4 to 10 miles, and after that 6d. For deliveries by rail only, the farmer pays the full charge for the first 15 miles and receives a rebate of 75 per cent of the remainder of the rail charge.

The main trends are a steady increase in total lime usage and an increase in the proportion of the total amount now being applied in areas previously remote from works, both through the operation of the assistance scheme and through the introduction of new works and mobile crushing plants.

Of the total cost, 85 per cent is borne by the Dairy and the Meat Industry Accounts and the balance by the Consolidated Fund. These proportions represent approximately the shares which should be borne by the export and locally consumed portions of farm produce respectively.

During several years up till 1954 the railway system was unable to handle all tonnages offering during the summer-autumn peak season, and, as a relief measure, road and sea transport services were called upon to convey fertilizers for substantial distances, usually up to 100 miles. Fertilizers were selected for this treatment for various reasons of convenience. When this occurred the Consolidated Fund bore the difference in cost between the normal rail haul and the auxiliary transport service. This measure was necessary mainly in the Auckland Provincial District and to a lesser extent in Taranaki. An improvement in the railway rolling stock position and the development of fertilizer storage depots, by farmers and by contractors and others, enabled avoidance of subsidized road and sea transport during the 1954-55 farming season. The sum shown in the table above for the 1954-55 year covered the months of April and May 1954. The reintroduction of this subsidy in the future seems unlikely.

The subsidy on imported phosphatic fertilizer was designed to redress in some measure the wide disparity in the price of these materials and that of locally made superphosphate.

Other Items.—Most of the remaining subsidies represent attempts to deal with specific problems of disease and pest control which are of importance to the whole community but the handling of which would impose a serious burden on individuals or small groups. Under this heading come such items as compensation for diseased stock under the Meat Act and the Stock Act, grants and subsidies to Rabbit Boards, and destruction of kea and wild pigs, etc. Subsidies of this nature are mostly charges against the vote of the Department of Agriculture. They are not recoverable except in the case of compensation paid for diseased stock under the Stock Act, where a partial recovery is obtained by the sale of by-products from condemned stock.

FARM MACHINERY.—The results of a full census of farm machinery taken in 1950 have been published in earlier volumes of the Year-Book.

The following table gives details of farm machinery for those items where a comparison is available for the years 1947 to 1952.

194719481949195019511952

* Not available.

† This item covers only those machines actually used for threshing wheat or oats during the year specified.

‡ Estimates, 1953, 52,495; 1954, 55,623; and 1955, 62,137.

Milking machines32,59633,46134,11436,36837,20437,563
Cream separators48,19448,45748,45154,421**
Shearing machines—
  Plants14,56415,46816,39218,79119,47320,810
  Stands33,90735,44836,95240,53642,29844,472
Agricultural tractors21,15623,42327,44734,91840,31045,734
Rotary hoes and garden tractors1,6462,2532,6603,0933,8124,380
Electric motors82,72188,28294,047110,683116,549123,439
Internal-combustion engines23,10924,92226,19929,92629,04629,052
Threshing machines1,6411,7082,0241,9002,2181,965

The figures for 1952 showed a continuation of the trend towards more intensive mechanization of farm work that has been in evidence over a considerable period. During the war and early post-war years this movement was retarded through inability to procure the necessary equipment, but there has been a considerable speeding up in later years. Particularly noticeable are the increases in agricultural tractors and electric motors.

Milking Machines.—Information concerning milking machines on farms was first collected in 1919, in which year there were 7,577 plants recorded. Since that year the use of milking machines has expanded rapidly, although, as might be expected, the rate of increase slowed down somewhat during the war period. During the six years from 1933 to 1939 milking machines increased at an average rate of 770 per year, while during the six-year period 1940-46, the average increase was 430 per year. The subsequent six years showed increases of 791, 865, 653, 2,254, 836, and 359 respectively. Of the 1,905,534 cows in milk on 31 January 1952, 1,799,375, or 94 per cent, were on holdings employing milking machines. In 1951 the corresponding percentage was 94 and in 1942, 87.

The following table shows, by size of herd in milk, both the number of farms equipped with milking machines and farms with dairy cows in milk but no milking plant.

Size of Herd (Cows in Milk)Farms With Milking MachinesFarms Without Milking Machines
194019511952194019511952

* These totals for 1951 and 1952 include 273 and 357 cases respectively of farms with milking machines but no cows in milk. Comparable figures are not available for 1940.

Under 57151,217*1,569*22,75525,95926,001
5 and under 101,2221,4308,7904,0733,578
10 and under 201,6483,0333,0375,7841,5251,331
20 and under 304,4624,4654,2132,032371323
30 and under 405,3455,6755,4525627075
40 and under 504,4975,3685,2271741318
50 and under 603,3304,4174,4337455
60 and under 702,7073,5403,66530  
70 and under 801,8032,3732,512378 
80 and under 901,1761,6771,726
90 and under 1008421,0851,105
100 and under 1251,1011,5491,551
125 and under 150416512566
150 and under 200289278315
200 and over170103100
      Totals28,50136,51436,90140,23832,02431,331

Agricultural Tractors.—During the ten years from 1942 to 1952 the number of agricultural tractors employed on holdings of 1 acre and over outside borough boundaries rose from 13,967 to 45,734, an increase of 227 per cent. These figures do not include rotary hoes or garden tractors, which showed an increase from 813 in 1942 to 4,380 in 1952, an increase of 439 percent.

The increase in tractors has been accompanied by a decrease in the number of horses employed on farms, particularly those described as "draught and three-quarter draught." The total number of horses in 1952 was 173,922, of which 57,434 were classed as draught or three-quarter draught, 20,300 as spring-cart or light artillery (including half-draught), 74,530 as hacks or light working horses, and 21,658 as thoroughbred or other. Comparable figures for 1942 were 248,597, 118,054, 44,586, 71,509, and 14,448 respectively. The number of agricultural tractors increased from 45,734 in 1952 to an estimated total of 62,137 in 1955, whereas the total number of horses fell from 173,922 to an estimated 147,063.

The number of holdings on which tractors were located in 1952 was 38,434 out of a total of 90,288, whereas horses (excluding "thoroughbred or other") were present on 50,629 holdings. In 13,162 cases there were tractors but no horses, 25,357 cases in which there were horses but no tractors, while both tractors and horses were present in 25,272 instances.

The 6,046 cases in 1952 in which there were more than one tractor on the farm were made up as follows: two tractors, 5,110; three, 720; four, 157; five or more, 59.

In 1952, of the 45,734 agricultural tractors, 35,954 (78.6 per cent) were classified as petrol driven, 5,282 (11.5 per cent) as kerosene (paraffin) fuel, and 4,498 (9.8 per cent) as diesel fuel. In 1950, of the 26,318 (75.4 per cent) petrol driven tractors, 24,524 were stated as wheel tractors and 1,794 as crawler. Of the 6,076 (17.4 per cent) kerosene (paraffin) fuel tractors 5,423 were wheel and 653 were crawler, while in the diesel group of 2,524 (7.2 per cent), 1,217 were wheel and 1,307 were of the crawler type.

Threshing Machines.—Information last collected in 1952 in conjunction with the monthly threshing returns showed that a total of 1,965 machines (1,852 header harvesters, 62 threshing mills, and 51 tinmills) were engaged in threshing either wheat or oats in 1952, as compared with a total of 1,129 machines in 1942. The increase in the total number of machines so used during the ten-year period is accounted for by the change in harvesting methods that has taken place, the mobile header harvester, which was first employed in New Zealand in the harvest of 1930, having threshed over 95 per cent of the wheat area and over 80 per cent of the area of oats threshed for grain in 1952.

20 B—CROPS

In the preceding subsection reference was made to the economy of New Zealand being largely dependent on grassland products. This is not to say that cropping is not of any importance. Domestic needs for agricultural products are largely satisfied internally, although in recent years an increasing proportion of wheat requirements has been imported. Tropical and sub-tropical products such as tea, sugar, cotton, etc., are not produced in New Zealand.

Fruit is grown on a considerable scale, home requirements of all the important fruits and berries grown in temperate zones being satisfied by New Zealand orchard production. Citrus fruits are grown in the sub-tropical northern portion of New Zealand, and grapes are also cultivated in certain localities with a favourable climate. In addition to satisfying local demand, there is a substantial export trade in apples.

In rural New Zealand and in many urban localities the kitchen garden supplies a very considerable proportion of family requirements of vegetables, while there is a substantial area planted in market gardens, both inside 2nd outside borough boundaries. The major commercial cash vegetable crops are potatoes and onions. Local supplies of potatoes are not always adequate, and in recent years production has fluctuated, with a surplus in one year and perhaps a shortage in the next. In most recent years the production of onions has also been more than sufficient for local requirements. Although the importance of vegetable growing in agricultural production cannot be measured (a considerable, though unknown, proportion being non-commercial), it will be realized that this branch of crop production is of some consequence in that the requirements of the people are supplied from New Zealand production.

Coincident with the growth of the stock-raising industries, there has been a considerable increase in areas sown for supplementary fodders. While practically throughout the whole of New Zealand animals can be grazed in open pasture for the full twelve months of the year, the winter growth of grass, except in certain favoured localities, requires to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the drier summer months. The supply of supplementary fodders is adequate both in quantity and in quality, so that New Zealand imports stock food to a very minor extent only.

Hay and silage crops are grown almost exclusively on the farms where they are consumed, though some districts specialize in the growing of certain other supplementary fodder crops. The bulk of the supplementary fodders other than grass and clover hay, and silage, is grown in the South Island, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

The renewal of pasturage requires the annual supply of very considerable quantities of grass seeds, which are now grown almost entirely in New Zealand. There is a small import of certain classes of seeds, but this is almost negligible in relation to requirements; on the other hand, an appreciable export trade in some species of grass seeds has been developed.

GEOGRAPHIC DISTRIBUTION.—Grain growing is localized to a considerable extent, the Canterbury Land District, with its fertile plains, supplying in 1954-55, 63 per cent of New Zealand's wheat yield, 43 per cent of the oats threshed, and 70 per cent of the barley yield. Maize growing is largely confined to certain portions of the South Auckland and Gisborne districts. The growing of peas for threshing is carried out extensively in Canterbury, and to a lesser extent in Marlborough and Otago, Canterbury alone producing over half of the total yield. In the season 1954-55, 58 per cent of the area closed off for production of grass seed was in Canterbury district. The Canterbury district also produces a large proportion of the commercial potato crop, followed by Wellington, while the growing of potatoes for the early market is of importance in the North and South Auckland districts.

Commercial orchards in New Zealand are largely confined to certain areas suited by climatic and soil conditions, while access to markets is also an important factor, particularly in respect of small fruits. The Nelson district is famed for its apple orchards, a high percentage of the crop from this district normally being exported. Central Otago is well suited to the growing of stone fruits, notably apricots. In several other districts commercial orchard production is successfully carried on; special mention may be made of citrus culture in certain northern districts.

Grape growing is of importance in North Auckland and Hawke's Bay, and to a lesser extent in South Auckland. Tobacco growing is mainly confined to the Waimea County, in the Nelson district, hop growing also being "largely concentrated in this area.

A detailed analysis of arable cropping farms in 1949-50 was undertaken as part of the World Census of Agriculture. The following table, compiled from the results of this analysis, shows the number of arable cropping farms in each regional area. The dominance of the South Island, with 90 per cent of the farms of this type, is clearly shown.

Regional Area*Principally Arable CroppingArable CroppingSpecial Cropping UnitsGrass Seed ProductionOther Aral HoldingsTotal Number of Arable Holdings
With SheepWith DairyingWith BeefWith Horse RaisingWith PoultryWith HorticultureWith Mixed Farming

* For details of counties included see pages 512-13.

North Island
Northland7 1        8
South Auckland1 1        2
Waikato and Hauraki Lowlands  1        1
Cape Colville            
Central Plateau6 2    1   9
Western Uplands1          1
Taranaki            
East Cape6873  6 5 4 93
Hawke's Bay62321  11120596
Rangitikei1192    331 29
Manawatu1622    132228
Castlepoint            
Wairarapa1111    213 19
Featherston312        6
      Totals18623171 61138307292
South Island
Nelson2432    5 12551
Marlborough584073  223 3013176
Westland            
North Canterbury1350     5 7479
Foothills26317    12 11289
Canterbury Plains31728158 26 9081532809
Christchurch5246   3422275
Banks Peninsula21     1 1 5
Mackenzie37      14 16
South Canterbury24945156 13 11544227948
Otago1281    3 3229
Central Otago2131     2 8466
Southern242542   4 84 151
      Totals801932142539526415219992,494
      N.Z. totals98795515963156277232491062,786

From the 1952-53 season up to 1954-55, farming statistics have been based on a sample survey (ratio 1: 7). Undue importance should not be attached to the final digits shown, as these statistics are estimated from the sample returns and are quoted to the last unit for the sake of convenience.

In 1956 opportunity was taken to collect the 1955-56 farm statistics in conjunction with the Population Census taken at 17 April 1956. Certain preliminary data for 1955-56 are published where applicable throughout this and the succeeding section, while any later information, if available, will be found in the section "Latest Statistical Information" in the front of this volume. For certain of the major crops, estimates of areas are also available in advance for the 1956-57 season in addition to some projected yield estimates, and these are quoted wherever possible.

The area devoted to each of the principal crops in the 1954-55 season and the percentage area in each land district are given in the following table.

Name of CropAreaLand District Percentages
AcresNorth AucklandSouth AucklandGisborneHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtagoSouthland

* North Auckland, Hawke's Bay, and Wellington, 23 per cent.

For threshing—
  Wheat103,98973671310
Oats31,16432541229
Barley41,67412116791
  Maize3,154*2354* *      
  Peas29,50610235584  
  Linseed7,741  87211  
For chaff, hay, or silage—
  Oats29,73114 5 372222
  Grasses, clovers691,6621339231110121756
  Lucerne93,958 915 352 52203
  Green fodder—
  Oats40,84716 12 53154
  Rape175,421 1 5 321 502711
Kale (including chou moellier)114,3643912342711 14710
Wheat, oats, and barley for chaff, hay, silage, or green fodder20,3585143921281 23176
Root crops—
  Swedes198,8783181158 1 82134
Turnips254,662412 214121461314
  Turnips and rape51,188 1 2 211 281649
Potatoes21,373842511612 4993
Grasses, clovers, and lucerne for seed189,18710 4 581513
Tobacco3,104       100    
Orchards21,99821921812318 818 
Market gardens17,79534621411516 147 
Grape, passion fruit, hop vines, and nurseries3,614311121435 25 432

BUSHEL WEIGHTS.—For statistical and other purposes it is at times necessary to convert bushel units to a weight basis. For New Zealand produce and fruit, conversion is effected by using the following weights per bushel for the commodities mentioned.

lb.

ProduceWeight of BushelFruitWeight of Bushel
Wheat60Apples40
Oats40Pears38
Barley50Quinces40
Maize56Peaches42
Peas60Nectarines42
Ryecorn56Apricots42
Beans65Plums42
Grass seed20Cherries42
  Oranges42-43
  Lemons (uncured)42

AREA UNDER CULTIVATION.—A general summary of the areas under cultivation during each of the last ten years is given in the following table. The statistics quoted in this and other tables in this subsection relate to holdings of 1 acre or upwards outside borough boundaries.

In addition to the areas shown as under cultivation there is a considerable area of occupied land still unimproved. In 1954-55 the total area of unimproved occupied land was 23,394,500 acres. Cultivated land accounted for 46 per cent of the total area in occupation, unimproved land accounting for the remaining 54 per cent. The area in phormium—a productive asset—is included in the total of unimproved land, while an appreciable proportion of tussock and other naturally established native grasses is of considerable economic utility, particularly in the South island, where it is used for extensive pastoral fanning.

Acres

YearPasture Land*Field CropsPlantationsOrchardsLying FallowOther Cultivated LandTotal Cultivated Land

* Excluding areas of grasses and clovers cut for seed, hay, or silage, which have been included in field crops.

1945-4617,036,8221,839,589861,00818,235121,03390,55519,967,242
1946-4717,013,0571,984,395869,95918,253123,65494,54520,103,863
1947-4817,088,8101,904,377871,35618,667122,81296,89220,102,914
1948-4917,033,7341,985,381884,07718,667100,270106,07020,128,199
1949-5017,164,9571,931,393908,36018,85390,819114,44820,228,830
1950-5117,042,3472,061,429902,16419,722114,536111,03220,251,230
1951-5216,797,3442,062,910915,83519,973143,367109,59820,049,027
1952-5316,574,4392,131,170949,53321,464173,626111,36419,961,596
1953-5416,573,0042,060,678967,66621,246144,328111,98619,878,908
1954-5516,557,8192,141,623962,59221,998161,201116,13619,961,369

In the following pages statistics of the principal crops are quoted with explanatory comment. In addition to summary tables, covering in each instance a range of related items, important individual crops are discussed under separate headings.

PRINCIPAL FIELD CROPS.—The following table shows the areas under each of the principal field crops for the years 1950-51 to 1954-55. Acres

Crop1950-511951-521952-531953-541954-55

* Including turnips and rape mixed.

† Excluding wheat, oats, barley, maize, and peas fed off.

Wheat147,00891,837135,736115,875108,617
Oats133,596126,093120,87875,681101,742
Barley58,53554,63769,28875,09452,291
Maize11,66510,3389,4218,5038,267
Peas22,53624,72827,26530,88929,506
Linseed16,22424,43721,3852,8227,741
Linen flax1731,8691,5251,886 
Potatoes16,80413,27618,30521,65121,373
Turnips and swede*402,350398,072424,887474,966504,728
Mangolds2,2832,0692,0052,0102,052
Onions1,0531,1351,4051,2981,616
Tobacco3,3243,1523,1683,1013,104
Green fodder289,852279,755277,012309,643306,258
Grasses, clovers, and lucerne for seed212,099196,378123,467153,910189,187
Grasses and clovers for hay or silage660,689742,072783,570680,523691,662
Lucerne for hay or silage68,62278,90793,57089,09793,958
Other crops14,61614,15518,28313,72919,521
      Totals2,061,4292,062,9102,131,1702,060,6782,141,623

The figures quoted in the foregoing table in respect of wheat, oats, barley, maize, and peas relate to the total areas under these crops for grain or fodder. It should be noted that a considerable portion of the area under certain crops, particularly oats, is cut for chaff or is fed off. In regard to peas it should be noted that areas of this crop for domestic consumption in the form of green peas are included under market gardens and crops for processing.

GRAIN AND SEED CROPS.— Details of areas for threshing, total yields, and yields per acre of the principal grain and seed crops during recent years are set out in the following table.

YearWheatOatsBarleyMaizePeasLinseed

* Provisional.

† Estimated.

‡ Not available.

Areas For Threshing (Acres)
1950-51144,76335,80846,1546,11921,70116,224
1951-5289,95545,56146,0646,44924,37924,437
1952-53127,22549,08755,3345,97327,26521,385
1953-54113,81320,52968,4794,06230,8892,822
1954-55103,98931,16441,6743,15429,5067,741
1955-56*68,30041,60649,04425,303
1956-5762,00044,00052,00025,000
Total Yields
 BushelsBushelsBushelsBushelsBushelsCwt.
1950-516,271,9281,827,9531,902,432362,533625,784148,099
1951-523,890,1672,469,5302,182,175381,835730,288222,269
1952-534,525,2982,385,1292,139,886349,194614,417194,444
1953-544,783,227945,3863,335,399259,248953,74929,022
1954-554,113,4441,602,0581,891,875201,913885,43277,588
1955-56*2,651,4291,924,4542,025,546636,446
1956-572,700,0002,175,0002,500,000
Yields Per Acre
 BushelsBushelsBushelsBushelsBushelsCwt.
1950-5143.3351.0541.2259.2528.849.13
1951-5243.2554.2047.3759.2129.969.10
1952-5335.5748.5938.6758.4622.549.09
1953-5442.0346.0548.7163.8230.8810.28
1954-5539.5651.4145.6664.0230.0110.02
1955-56*38.8246.2641.3425.16
1956-5743.0049.0048.00

It was the practice prior to 1940 to import considerable quantities of small seeds, but during the war years it became necessary to make an effort to raise the full domestic requirements in this direction within New Zealand. The success of the effort is exemplified in the total areas planted in other crops for seed (i.e., crops other than the principal crops stated above, wheat, oats, barley, maize, peas, and linseed together with lupins), which rose from 342 acres in 1938-39 to 6,674 acres in 1942-43. Although there has been some reduction from the peak figure of that year, the area in the last year of full enumeration, 1951-52, was 5,862 acres. These figures covered, rape, kale, white-fleshed turnips, swedes, mustard, beans, and ryecorn, together with a variety of smaller areas relating to crops such as onions, vetches, tares, radish, silver beet, red beet, carrots, pumpkins, marrows, leeks, cauliflower, cabbage, parsnips, etc. It was found in most instances that the locally produced seed was fully up to, and indeed in some cases superior to, the standard of that previously imported. It has been shown, for instance, that swede and turnip crops grown from locally produced seed have been comparatively free from the widespread dry-rot disease which formerly attacked these crops when grown from imported seed. New Zealand is self-sufficient in peas, beans, swedes, turnips, and parsnips. Most other vegetable seeds are imported from the United States of America.

WHEAT.—Wheat is the most important grain crop grown in New Zealand. Efforts at encouraging wheatgrowing with a view to making New Zealand entirely self-sufficient in respect of requirements of wheat and wheaten products were initiated in 1936, and the importation of wheat or wheaten flour was prohibited, except under permit granted by the Minister of Industries and Commerce. With a view to reducing imports of Grade A wheat necessary for mixing purposes, the Wheat Research Institute has been endeavouring to encourage the growing in New Zealand of better-quality varieties which do not require blending with imported wheat. The institute has already achieved satisfactory results, its most outstanding success being the development of a Tuscan variety known as Cross 7. Though not grown on a commercial scale until 1935-36, Cross 7 has, since 1941, held pride of place in the area grown for grain. In the 1951-52 season second and fourth places were taken by Fife Tuscan and Tainui respectively, types also evolved by the Wheat Research Institute.

Other new varieties released have been Hilgendorf (1947), Yielder (1948) and Arawa (1957). Tests of flour from commercial crops over the past six years have confirmed the outstanding baking quality of Hilgendorf wheat. In an endeavour to encourage the growing of this variety, and so help to bring about an improvement in flour and bread quality, a premium has been payable to farmers of one shilling per bushel on all crops of Hilgendorf wheat handled by the Wheat Committee. The premium has been further increased to two shillings per bushel for the 1956-57 season.

Appreciable increases occurred in the production of wheat in the four seasons 1939-40 to 1942-43, but since then there was an irregular decline in sowings until the season 1951-52, when only 89,995 acres were harvested. Some temporary improvement occurred up to 1954-55, but the record low figure of 68,300 acres recorded in 1955-56 will be displaced if the estimated area for threshing of 62,000 acres for 1956-57 is realized.

The following diagram shows the fluctuations that have occurred in the area sown in wheat during the last twenty-nine seasons, together with the total yield and the average yield per acre.

Wheat Committee.—Control of the importation of wheat and flour and of the distribution of both imported and locally produced wheat rests with the Wheat Committee. The operations of this Committee, which consists of representatives of flour-millers, wheatgrowers, and bakers, with the Minister of Industries and Commerce as Chairman, and bis nominee from the Department of Industries and Commerce as Deputy Chairman, are governed by the Board of Trade (Wheat and Flour) Regulations.

All New Zealand milling wheat is purchased from farmers by the Wheat Committee through the agency of the grain merchants acting as brokers for the Committee. The Committee is responsible for the importation of any wheat and flour and the distribution of imported poultry wheat in the North Island; in the South Island poultry wheat is not controlled. Its functions also include arrangements for the processing of wheat and the sale of flour to merchants, bakers, pastrycooks, grocers, and others.

The annual consumption of wheat in New Zealand approximates 12 million bushels—some 8 million bushels being required for flour, and the balance for poultry food and seed. Over the past five seasons the annual local production of wheat has averaged 4,717,000 bushels, while imports have over the same period averaged 6,900,000 bushels.

Varieties of Wheat.—The choice of wheat varieties for sowing is influenced by their suitability to local conditions of climate, soil type, etc. Wheatgrowers receive valuable guidance regarding suitable varieties as the result of research work and field trials undertaken by the Wheat Research Institute and the Department of Agriculture. Particulars regarding varieties of wheat were obtained covering 79 per cent of the total area of wheat threshed for the harvest of 1952. Of the three groups of varieties, Tuscan accounted for 95.9 per cent of the area and 96.2 per cent of the yield; Hunter's, 0.5 per cent of the area and 0.6 per cent of the yield; and Pearl, 3.6 per cent of the area and 3.2 per cent of the yield. Of the individual varieties, Cross 7 produced 72.7 per cent of the total yield, while Fife Tuscan produced a further 7.4 per cent. These two varieties accounted for 73.6 per cent and 7.9 per cent of the total area respectively.

OATS.—The area under oats has declined fairly steadily during the past decade, the greatest decrease being in oats for chaff, hay, and silage. This decline is parallel with the replacement of horses by machinery. During the five years 1944-49 the average area under oats for all purposes was 192,834 acres, and of this figure the proportion for chaff, etc., was 41.5 per cent, whereas for the last five years (1950-55) the comparable figures are 111,598 acres and 29.4 per cent. Taking the same two 5-yearly periods the average area under oats for chaff, etc., has declined by 59 per cent.

The yield per acre of oats threshed for grain, etc., does not show any definite trend during the past ten years, but fluctuates between 45 and just over 54 bushels, depending on seasonal conditions. On the other hand the yield per acre of oats for chaff, hay, and silage showed a fairly steady increase from about 1 3/4 tons for the first few years to almost 2 1/4 tons for the season 1952-53.

The total yield, comparing the average per season for the five years 1944-49 with the average per season for the five years 1950-55, shows, in the case of oats threshed for grain, etc., a decrease of 43 per cent, mainly accounted for by a particularly heavy fall in acreage planted in 1953-54.

The total and average yields of oaten grain and of chaff, hay, or silage for the seasons quoted were as follows.

SeasonGrainChaff, Hay, or Silage
Total YieldAverage Per AcreTotal YieldAverage Per Acre

* Not available.

 BushelsBushelsTonsTons
1950-511,827,95351.0580,9711.98
1951-522,469,53054.2084,3662.12
1952-532,385,12948.5971,7002.24
1953-54945,38646.05**
1954-551,602,05851.41**

In 1955-56 some 41,606 acres were threshed, yielding 1,924,454 bushels at 46.26 bushels per acre, while it is estimated that some 44,000 acres will yield an expected 2,175,000 bushels for 1956-57 based on a pre-harvest estimated yield of 49 bushels per acre.

Varieties of Oats Threshed.—An analysis of the threshing returns relating to the season 1951-52 gave the following percentage distribution of varieties of oats threshed (no later figures are available).

Variety of Oats ThreshedAverage Yield Per AcrePercentage of Total AreaPercentage of Total Yield
 BushelsPer CentPer Cent
White60.9367.9276.90
Algerian38.0622.7116.07
Dun38.216.894.90
Black46.322.482.13
All varieties53.81100.00100.00

BARLEY.—Prior to 1945 considerable quantities of barley were imported, mainly for use as stock food, but the quantities imported since then have declined considerably. Outstanding increases in the area planted were recorded in each of the four years ending in 1947-48, the area threshed in that year (63,398 acres) and the yield of grain (2,087,900 bushels) exceeding all previous figures. Since then harvestings have fluctuated considerably from year to year. New records were established in the 1953-54 season, when 68,479 acres were grown for threshing, and a record average yield of 48.71 bushels per acre gave a total production of 3,336,000 bushels. This was followed by a sharp fall in the 1954-55 season, when 41,674 acres were threshed for a yield of 1,991,875 bushels.

Of the total area grown, 80 per cent was threshed for grain in 1955, the remaining 20 per cent being used for stock fodder (mostly feeding off).

Malting varieties normally account for over 80 per cent of the area sown in barley.

Provisional figures for barley threshed in 1955-56 show 49,044 acres threshed with a yield of 2,025,546 bushels. The area for threshing in 1956-57 is estimated at 52,000 acres, and, if pre-harvest yield estimates are correct, some 2,500,000 bushels can be expected.

PEAS.—Both the area and total yield of peas for threshing have fallen considerably since 1953. There have been fluctuations in the export figures for the commodity. In 1949 nearly 850,000 bushels were exported, whereas by 1953 the amount had fallen to approximately 370,000 bushels, although there was a slight recovery in 1954 to 443,000 bushels.

The foregoing figures exclude green peas grown for market or for processing (e.g., canning and quick freeze). Apart from a large local consumption of quick-frozen peas and canned peas, New Zealand also supplied 7,452,595 lb. of canned peas to the United Kingdom in 1954. In 1955 a total of 9,625,687 lb. was exported, of which 9,250,138 lb. went to the United Kingdom.

POTATOES.—The production of potatoes has previously been adequate to meet the home market, but in recent years there have been considerable fluctuations, a surplus in one year being followed by a shortage in another. The problem of the disposal of surplus quantities is rendered difficult by import restrictions on New Zealand potatoes entering Australia, although certain quantities were admitted in 1940 and again in 1950 owing to shortages of supplies in that country. Strangely enough, in each of the years mentioned the area in potatoes in New Zealand was comparatively small, but particularly high yields resulted in surplus quantities being available.

The 1951-52 crop was the lowest in area and yield for many years, with 13,276 acres producing 69,841 tons, necessitating heavy importations from Australia to the extent of 31,337 tons up to the end of September 1952. The 1952-53 season showed an improvement with 18,305 acres, yielding 94,652 tons. The yield per acre was lower than usual at 5.17 tons, and it was necessary to import 7,012 tons during the year ended September 1953. Heavier plantings in 1953-54 (21,651 acres), combined with a high average yield of 7.2 tons per acre, resulted in the biggest potato crop for ten years, so that some difficulty was experienced in disposing of surplus supplies. Plantings at 21,373 acres were well maintained in the 1954-55 season, although average yields were somewhat smaller at 6.75 tons per acre, giving a total yield of 144,158 tons.

Under the Potato Growing Industry Act 1950 a Potato Board was established consisting of seven members, three of whom are representative of the growers on an elective basis, three nominated by the New Zealand Grain, Seed, and Produce Merchants' Association (Incorporated), and one an officer of the Public Service acting in an advisory capacity.

The principal functions of the Board are to ensure that an adequate supply of main-crop potatoes are available for consumption in New Zealand, and for that purpose to enter into contracts with growers for the growing of main-crop potatoes. The Act provides that the Board may impose a levy not exceeding 30s. per ton on main-crop potatoes sold by growers, the proceeds of which are to be applied by the Board in payment of charges, etc., for which it may become liable in the exercise of its functions.

For the 1956-57 season the Board has undertaken to compensate contract growers for any declared unsold F. A.Q. grade contract produce held by growers at the end of the season. The amount involved varies according to varieties from £17 to £20 per ton in the South Island and £19 to £22 per ton in the North Island. These amounts need not necessarily apply to any other season, the rates for 1956-57 being conditioned by the abnormally high prices for seed brought about by shortages in the previous year.

Figures for area and yield for the last five years are as follows.

YearAreaTotal YieldYield Per Acre
 AcresTonsTons
1950-5116,804119,7787.13
1951-5213,27669,8415.26
1952-5318,30594,6525.17
1953-5421,651155,9427.20
1954-5521,373144,1586.75

In 1955-56 provisional figures show that 17,547 acres were harvested, yielding 99,979 tons of table, seed, and pig potatoes. The estimated area for 1956-57 is placed at 19,000 acres. No advance estimates of yield are available.

Special statistics of areas and yields of potatoes, classified according to varieties as well as by origin of seed planted (Government certified or otherwise), were compiled from 1936 to 1952. The information was obtained from a special collection from growers in July, by which time the bulk of the crop had been harvested. The inquiry was limited in the main to growers of 2 acres and over, but the resultant details, which covered approximately 50 per cent of the total potato acreage, could be taken as representative of the crop as a whole. "Government certified" seed is that for which a Government certificate has been issued in respect of purity, etc. Seed obtained from the ensuing crop cannot be so designated unless the requisite certificate is issued by the authorities.

The available statistics plainly indicate the superior yielding capacity of certified seed. The average yield per acre over the last five years of collection for certified seed was 7.50 tons, as compared with 6.36 tons for uncertified seed. The advantage of 1.14 tons per acre in favour of crops from certified seed represents a yield superiority of almost 18 per cent. It is also of interest to note the increasing use of certified seed. Of the areas for which the information was supplied in 1938-39 the proportion of certified seed used was 35.5 per cent, as compared with 54.8 per cent in 1951-52.

ONIONS.—Areas in, and yields of, onions for the years 1950-51 to 1954-55 are as follows.

YearAreaTotal YieldYield Per Acre
 AcresTonsTons
1950-511,0539,6449.16
1951-521,13510,3369.11
1952-531,40512,5108.90
1953-541,29811,1308.57
1954-551,61614,9529.25

In earlier years the production of onions was rarely sufficient to supply domestic requirements. As onions are a semi-perishable commodity it was found convenient to export in the flush of the New Zealand season, and to obtain supplies from overseas later in the year. However, a considerable improvement has been effected in the keeping qualities of the varieties grown, and no onions have been imported into New Zealand for some years, while over the last five years exports have averaged 1,600 tons annually.

LINSEED.—The area under this crop has fluctuated considerably over a long period. In 1917-18 an area of 1,456 acres was recorded under linseed. This rose to 12,119 acres in 1923-24, dropped to 2,800 acres in 1929-30, and rose again to 12,200 acres in 1930-31. After further fluctuations the area planted fell away to 354 acres in 1942-43, then rose in successive years to a peak of 18,728 acres in 1947-48. Then followed a recession for two successive years to less than half the 1947-48 acreage. The area in 1950-51 showed a firm increase to 16,224 acres, followed by a new record high level of 24,437 acres in 1951-52, and a slight recession to 21,385 acres in 1952-53. In the 1953-54 season reduced world prices, among other factors, led to a sharp contraction in the area planted, only 2,822 acres being grown. This area gave a yield of 29,022 cwt. of seed at an average of 10.28 cwt. per acre. There was a partial recovery in the 1954-55 season, when 7,741 acres were harvested for a total yield of 77,588 cwt. Because of falling overseas prices the sole processing plant for linseed oil at Dunedin closed down at the end of 1954, but all contracts with growers for the 1954-55 season were honoured and all seed produced in the 1955 harvest was exported.

SUPPLEMENTARY FODDER CROPS.—Although grass is the main crop of the farmer in New Zealand, at certain periods during the year the pastures need supplementing in order that the grassland may not become unduly exhausted, and also to maintain stock in a satisfactory condition. In mid-winter the grass is at a low stage of productivity generally, while under dry summer conditions it loses part of its nutritive value. During these periods it is necessary that some extra feed should be provided, and this is usually done either by cutting the grass for hay or silage when there is an ample surplus on the pastures during the flush of the growing season, or by the provision of green fodder or root crops.

The following table gives detailed figures of the areas of the supplementary fodder crops available during the years 1950-51 to 1954-55.

Acres

YearChaff, Hay, or SilageGreen FodderRoot and Other Crops for Feeding to StockTotal Area of Fodder Crops
Cereal CropsGrasses and Clovers, Including LucerneCereal CropsOther Crops

* Separate figures not available; these two items totalled 97,704 acres.

1950-5142,477729,31175,483290,687406,6131,544,571
1951-5241,477820,97953,399280,104401,7741,597,733
1952-53*877,140*277,012429,2051,681,061
1953-5423,089769,62045,181309,643478,3821,625,915
1954-5534,126785,62056,810306,258508,6031,691,417

In 1954-55 grasses and clovers cut for hay or silage totalled 691,662 acres and lucerne 93,958 acres. Oats was the only cereal crop utilized in any quantity for this purpose, the area of oats cut for chaff, hay, or silage being 29,731 acres. Oats also was the principal cereal crop fed off to stock, amounting to 40,847 acres. The principal green-fodder crops apart from oats are rape (175,421 acres) and kale, including chou moellier (114,364 acres). Swedes and turnips are the principal root crops grown in New Zealand, the total area sown in these crops in 1954-55 being 504,728 acres (including 51,188 acres of turnips and rape mixed). Other crops included 2,052 acres of mangolds.

GRASS SEED.—The total area of grasses, clovers, and lucerne cut for seed during the 1954-55 season was 189,187 acres, as against 153,910 acres in 1953-54. Canterbury, Otago, and Southland land districts between them provided 86 per cent of the area cut in 1954-55.

The areas of grass, clover, and lucerne crops harvested for seed, distinguishing the principal varieties, during each of the last five years for which figures are available, are given in the table following.

Acres

Crop1950-511951-521952-531953-541954-55
Ryegrass—
  Perennial81,92749,13628,77033,68150,804
  Italian9,9467,5724,2415,2618,120
  Short-rotation (H1)12,64713,7539,31916,89821,617
Cocksfoot7,2888,9874,2726,2797,145
Chewings fescue14,83115,79114,4378,5879,988
Crested dogstail7,7518,2347,1104,5406,439
Red clover (including cow-grass)18,71014,72412,51917,11820,197
White clover43,32963,51327,75445,06949,486
Other grasses and clovers15,67014,66815,04516,47715,391

Quantities (in dressed weights) of the more important grass and clover seeds treated by machine dressing plants for the last three years are given below.

Type of SeedUnitQuantity
195419551956
Ryegrass—
  PerennialBush.957,5331,001,1191,691,505
  Short rotation (H1)Bush.382,554607,118644,566
  Italian (including W. Wolths)Bush.129,631101,505120,267
  Cocksfootlb.1,403,294885,995844,376
  Chewings fescuelb.2,142,7181,588,923698,765
  Crested dogstaillb.1,249,0831,057,984654,179
  Brown toplb.1,073,506754,392144,444
  Timothylb.258,588247,217139,047
  White cloverlb.7,363,9704,606,8524,599,223
  Suckling cloverlb.132,747183,248222,770
  Suckling white mixturelb.204,846264,499319,692
  Cowgrass (including broad red clover)lb.1,268,5761,333,2671,629,968
  Montgomery red cloverlb.1,290,0651,646,142428,828
  Lucernelb.428,869503,847490,878
  Other grasses and cloverslb.100,188141,35380,204

Large quantities of grass and clover seed have been exported during recent years, especially to the United Kingdom, Australia, and the United States of America. Details of the volume and value of exports during recent years will be found in Section 10B of this issue.

PASTURE GRASSES.—Researches and experiments in regard to pasture grasses are regular features of the activities of both the Department of Agriculture and the Department of Scientific and Industrial Research. These experiments, which extend right on to individual farms throughout New Zealand, and are conducted in co-operation with the farmers themselves, are wide in their application, and cover all the major phases of pasture management, dealing in particular with such items as pasture mixtures, suitability as to soil types, methods of establishment and management, the efficient use of fertilizers, etc. The results are made available per medium of the Journal of Agriculture and such allied publications, as well as by special pamphlets which are distributed without charge. The farmer is thus enabled to avail himself of, and profit by, highly specialized knowledge and experience. In addition, a constant endeavour is being made not only to improve existing strains by such measures as seed certification and the provision of pedigree seed, but also to evolve new strains. At the beginning of the year 1955 there were 17,773,994 acres under artificially sown grasses (including 974,807 acres cut for seed, hay, or silage during the season), and in addition 13,391,857 acres of occupied land still remained in tussock or naturally established native grasses, making a total of 31,165,851 acres of grassland being farmed.

The following table shows the respective areas occupied by artificially sown grasses and by tussock and other naturally established native grasses during the five years specified.

Acres

YearArtificially Sown Pasture Grasses*Tussock and Other Naturally Established Native GrassesTotal Area Under Grass*
Cut for Seed, Hay, or SilageNot Cut for Seed, Hay, or Silage

* Includes lucerne.

† Includes approximately 250,000 acres also sown with crops.

1950-51941,41017,282,60413,112,68831,336,702
1951-521,017,35717,028,72613,250,47431,296,557
1952-531,000,60716,818,54213,299,00831,118,157
1953-54923,53016,837,81213,388,59431,149,936
1954-55974,80716,799,18713,391,85731,165,851

TOP-DRESSING (PASTURE LANDS).—Top-dressing in New Zealand is carried out mainly on sheep and cattle-grazing areas, including, of course, dairy farms; the North Island, which contains 86 per cent of the total cattle, accounted in 1954-55 for 75 per cent of the area top-dressed.

The following table gives particulars of areas of grassland top-dressed during the five years specified.

Acres

YearGrassland Area Top-dressed
With Artificial Fertilizer OnlyWith Lime OnlyWith Both Artificial Fertilizer and LimeTotal Grassland Top-dressed
1950-514,155,943649,4901,521,3116,326,744
1951-524,361,241664,5411,436,4016,462,183
1952-534,941,697626,3721,597,8347,165,903
1953-545,377,367531,4091,546,2897,455,065
1954-556,016,738550,4371,673,4508,240,625

Mustered sheep in the home paddocks of a high-country sheep station at the foothills of the Southern Alps.

A Selection of New Zealand Photographs illustrating Primary Production

Land development. Clearing bush with special rooter blade on tractor in Southland.

Reclamation of marginal hill country, showing swamp ploughing.

A large tract of land newly opened up for subdivision and settlement.

Spreading fertiliser by aircraft. New Zealand has been one of the leaders in agricultural aviation.

Pedigree Polled Hereford cattle on a Northland farm. Beef cattle are being raised in increasingly large numbers throughout New Zealand to supply markets overseas.

Breeding pigs grazing at Ruakura Animal Research Station, Hamilton.

Carcases of million ready for shipment overseas awaiting transport in the cooling chamber of one of the large freezing works.

A freezing works on the Canterbury coast. Modern killing and freezing plants are established at strategic points throughout New Zealand to prepare meat for shipment overseas.

Rich pastures form the dairy farms of Waikato, country which was covered in dense bash less than a century ago. A temperate climate and an ample rainfall ensure feed all the year round and winter housing of stock is unnecessary.

Milking in progress at a New Zealand dairy farm. Practically all dairy cows in the country are machine milked.

A ton of butter being removed from a 100-box churn—a typical scene in many a New Zealand dairy factory.

Butter grading. All dairy produce exported is graded and samples analysed by officers of the Dairy Division of the Department of Agriculture.

Stainless-steel milk tankers, each capable of carrying 1,500 gallons of milk, convey milk hygienically from farm to factory and are shown here unloading the milk at a co-operative dried milk factory.

Mechanical curd agitators stirring the milk in a giant stainless-steel vat in a New Zealand co-operative cheese factory. Previous day's cheeses in the background await the curing room.

Cheese being loaded on an overseas liner for export.

Aerial view showing overseas vessels at Auckland, New Zealand's busiest cargo-handling port.

Threshing pedigree perennial rye grass in South Canterbury. Rye-grass seed is harvested under Government supervision and is exported to world markets.

Header harvester on a Canterbury farm, cutting, threshing, and bagging wheat as it moves forward.

General view of experimental plots at Palmerston North. where the Grasslands Division, Department of Scientific and Industrial Research, carries out a wide range of research into pasture species and breeding.

Bales of wool opened and draped in a Wellington wool store, ready for overseas buyers to inspect before bidding at the auction sale.

Sheep being shorn at a station in Poverty Bay. Modern electric shears help to speed the collection of wool.

Digging and bagging potatoes on a Canterbury farm. Potatoes are grown chiefly for home markets in districts in both Islands.

Removing laterals from tobacco plants in a tobacco field at Motueka, Nelson district, where most of New Zealand's tobacco is grown.

Sorting and grading tobacco leaf in a New Zealand tobacco factory. A considerable proportion of tobacco manufactured in New Zealand now comes front New Zealand grown leaf.

Harvesting fruit into trailer bins in a Hawke's Bay orchard.

Loading radiata pine logs on to modern road haulers in the Kaingaroa State Forest.

A fork-lilt truck stacking timber sawn from trees of the exotic forests.

Maraetai hydro-electric power station, one of a chain of modern generating stations on the Waikato River that provides power vital to industry and the farmer.

Dominating the geothermal electricity project at Wairakei, two circular concrete towers belch forth awe-inspiring clouds of steam. The towers form the visible part of a recently-designed "twin silencer", reducing noise and erosion.

Since 1946 supplies of artificial fertilizer have been coming to hand in greater quantities than during the war years, and the area top-dressed with artificial fertilizer in 1954-55, including cases where lime also was used, was 7,690,188 acres, an increase of 1,892,546 acres over the 1951-52 figure. A noticeable feature was the increased use of lime during the period that phosphatic fertilizers were in such short supply.

The activities of the Department of Agriculture and the Department of Scientific and Industrial Research in the treatment of experimental plots from the various aspects of soil and crop requirements, and the subsequent data published thereon, have been an important factor in conveying to the farmer the many advantages to be derived from the scientific treatment of pastures.

While top-dressing in the past has been practically confined to sown grasses on the flat and gently undulating country, recent years have seen the application of fertilizer to the surface-sown hill-country pastures in increasing quantities, first by the use of the blower and later by broadcasting from aircraft. The latter method particularly has expanded very rapidly since experimental work was first carried out in 1948 by the Royal New Zealand Air Force at the request of the Soil Conservation and Rivers Control Council. Further information in this connection is contained in Section 15.

HORTICULTURE.—In 1949-50 a special farming type classification as part of the World Census of Agriculture showed the following breakup by regional areas of those farms where 75 per cent or more of the farm enterprise was devoted to horticulture, or if a mixed farm where 50 per cent or more was given to horticultural production. Although the North Island had 52 per cent of these enterprises the South Island predominated on an acreage basis with 74 per cent.

The following table shows the number of horticultural enterprises by regional areas in 1949-50.

OrchardsVineyardsPrincipally Market GardensSmall FruitsNurseriesApicultureOther Horticultural HoldingsTotal Horticultural Enterprises*

* Excluding boroughs.

Northland3713875143310147688
South Auckland97224224325294
Waikato and Hauraki Lowlands168818161875
Cape Colville10 5 22423
Central Plateau123229 4845211
Western Uplands2 22 25435
Taranaki  71223235
East Cape25749 I838128
Hawke's Bay314122089131187654
Rangitikei8 173111343
Manawatu51138321215185
Wairarapa1 61  210
Featherston2 21822641
Nelson22427532111461806
Marlborough23 2745 3796
Westland1   210 13
North Canterbury  3  3 6
Foothills28    2131
Canterbury Plains9 34458969
Christchurch47 3622735 75546
Banks Peninsula8 12 1 425
Mackenzie  1  1 2
South Canterbury16 7551121247213
Otago88 321513428180
Central Otago118 126 428168
Southern1 72916237
Remainder  1    1
      Totals1,449771,4501832361321,0884,615

GARDENS AND PLANTATIONS.—The acreages for market gardens, plantations, etc., for the five years specified are shown below. Forest Service plantations are covered by these figures. It should be noted that the statistics relate only to holdings of 1 acre or more outside boroughs and include berry-fruit gardens.

The following table has been compiled from Farm Production statistics.

Acres

YearMarket GardensNurseriesPrivate Gardens, etc.Plantations
1950-5113,9841,19193,971902,164
1951-5213,5341,27392,942915,835
1952-5315,4891,57192,457949,533
1953-5415,3091,51793,242967,666
1954-5517,7951,52294,727962,592

Market Gardens.—The Commercial Gardens Registration Act 1943 provides for the compulsory registration of all areas of half an acre or over of certain specified vegetables for sale for human consumption. The following vegetables are covered by the Act: asparagus, bean, beetroot, Brussel sprouts, cabbage, carrot, cauliflower (including broccoli), celery, cucumber, leek, lettuce, marrow, melon, parsnip, pea, pumpkin, radish, rhubarb, silver beet, spinach, squash, sweet corn, tomato. The 2,720 gardens registered under the Act at 30 September 1956 recorded an area of 20,180 acres in commercial gardens. Extensions occurred in established intensive gardening areas, while there was also an increased growing for canning and quick freezing to meet the mounting local and export demand for processed vegetable products. Processing firms are estimated to have used produce from approximately half the total registered acreage in 1955-56. Areas within borough boundaries are included in the registration figures.

The types and areas of berry fruits according to figures estimated by the Department of Agriculture as at 31 March 1956 are as follows: raspberry 463 acres; strawberry 262 acres; black currant 85 acres; gooseberry 65 acres; boysenberry 50 acres; loganberry 12.5 acres; and red currant 2 acres. These estimates include those grown in borough areas. The only berry fruit under control is raspberries where local marketing committees have been established in Nelson (since 1940) and Canterbury and Otago (since 1950), while a Central Council of Raspberry Growers was created by the Raspberry Marketing Regulations 1950.

Nurseries.—Since 1939 owners or occupiers of nurseries raising for sale certain specific trees, shrubs, and plants have been required to register their nurseries before being permitted to sell trees or plants. The number of nurseries so registered at 31 December 1956 totalled 434.

The 1,587 acres recorded under nurseries on holdings of 1 acre and over outside borough boundaries in 1950 were divided into the following categories: flowers and ornamental shrubs, 812 acres; forest-tree seedlings, 352 acres; seedling fruit trees, 255 acres; and vegetable seedlings, 168 acres.

ORCHARDS AND THE FRUIT INDUSTRY.—Because of New Zealand's geographic position the climate is varied, and favours the production of a wide variety of fruits. The climate in most parts of Northland, Auckland, Bay of Plenty, and Gisborne is sufficiently mild for the production of citrus and other sub-tropical fruit such as passion fruit, tree tomatoes, and Chinese gooseberries. Central Otago, with its hot summers and severe winters, produces the greater part of the English plums, apricots, and cherries. The main apple-and pear-growing areas are in Nelson, Hawke's Bay, Central Otago, and near Auckland. Peach and plum orchards are similarly distributed.

The following table shows the area outside borough boundaries which has been returned as under fruit trees at each of the last ten annual enumerations.

YearAcresYearAcres
1945-4618,2351950-5119,722
1946-4718,2531951-5219,973
1947-4818,6671952-5321,464
1948-4918,6671953-5421,246
1949-5018,8531954-5521,998

The production of apples predominates, this crop accounting for over half the total area in orchards.

The Orchard Levy Act 1953 provides for the levying in each year of an amount not exceeding £2 10s. on occupiers of orchards containing no fewer than 120 fruit trees, by the New Zealand Fruitgrowers' Federation. The purpose of this levy is for use as required in assisting and developing the industry.

At 31 January 1957 there were 1,900 levied orchards containing tree fruits of the pip, stone, citrus, and sub-tropical varieties covering an estimated 15,900 acres. The following table shows the estimated total acreage covered by different-sized orchards paying levy:

AcresAcresAcresAcres
1 to 53,68026 to 501,875
6 to 104,060Over 50845
11 to 152,620  
16 to 201,710    Total15,900
21 to 251,110  

During 1953 the Department of Agriculture made the first comprehensive field survey of fruit trees in commercial orchards. (It is proposed to carry out a similar survey every five years.) This survey covered all orchards with 100 or more deciduous fruit trees, over 50 citrus trees or over half an acre in berry fruits, grapes, sub-tropical fruits, and mixed orchards of half an acre and over. The Horticulture Division of the Department of Agriculture has supplied the following estimate of numbers of fruit trees of principal kinds in commercial orchards based on 1953 survey figures amended for major changes: apple, 1,064,600; pear, 135,000; quince, 10,000; peach, 310,000; nectarine, 28,000; apricot, 125,000; plum, 113,000; cherry, 20,000; lemon, 51,000; orange, 36,000; grapefruit, 54,000; mandarin, 7,000.

The growing of outdoor grapes is chiefly confined to the districts situated between the North Cape and Hawke's Bay, the total area returned in vineyards in 1955 being 1,238 acres. The greater portion of the crop is used for winemaking, several wines of excellent quality being manufactured. In 1940 the quantity of wine produced was 185,000 gallons from a licensed vineyard area of 469 acres. The figures for 1956 show wine production at 500,000 gallons, and the licensed area in wine grapes 1,000 acres on 148 vineyards.

Apples and Pears.—A summary of the activities of the New Zealand Apple and Pear Board appears on pages 489-90.

Quantities of apples and pears marketed in New Zealand by the Board in the last five seasons are given below. These figures exclude direct sales from fruitgrowers to the public.

Bushel Cases

SeasonApplesPearsTotal
19521,185,300316,1001,501,400
19531,014,699363,6001,378,299
19541,436,100322,6001,758,700
19551,443,000397,8001,840,800
19561,482,900359,1001,842,000

The following table shows the quantities of the main varieties of apples and pears marketed in New Zealand by the Apple and Pear Marketing Board and exported to the United Kingdom and elsewhere during the 1955-56 season, together with the total estimated production of each variety for that year. Factories in 1956 were given authority to purchase fruit for processing direct from the growers.

Bushel Cases

VarietyMarketed in New ZealandExported to United KingdomExported to. Other CountriesEstimated Total Production*

* Estimated by Horticulture Division, Department of Agriculture.

Apples—
  Sturmer Pippin232,900365,26646,784786,640
  Delicious251,900162,50978,284570,430
  Granny Smith168,700101,4865,827353,750
  Jonathan173,600194,06448,930443,880
  Ballarat Seedling112,40053,292998210,800
  Cox's Orange Pippin100,300154,430 300,730
  Gravenstein94,60016,015 134,980
  Rome Beauty43,4007,26612,05174,360
  Golden Delicious58,80057,82121,751157,090
  Dougherty37,40087,4147,751145,770
  Others208,90097,25229,208434,730
      Totals, apples1,482,9001,296,815251,5843,613,160
Pears—
  Winter Cole105,10035,6037,000163,805
  Winter Nelis66,300  75,555
  Williams' Bon Chretien49,100  168,085
  Others138,60015,780 194,795
      Totals, pears359,10051,3837,000602,240

Citrus Fruits.—Estimated production of citrus fruits during 1955 was: grapefruit, 124,000 bushels; lemons, 91,000 bushels; sweet oranges, 17,600 bushels; mandarins and other citrus, 2,000 bushels. Reference to the Citrus Marketing Authority is to be found on page 491.

HOPS.—According to returns covering holdings of 1 acre or over outside boroughs there were 773 acres under hop vines in the season 1954-55.

Practically the whole of the hop gardens are located in Waimea County. Production per acre usually ranges between 1,200 lb. and 1,500 lb., and the aggregate crop is usually sufficient to satisfy local requirements as well as to provide a surplus for export. Production in the 1954-55 season was 1,076,300 lb., compared with 871,000 lb. in the previous year. The 1954 yield met all requirements of brewers; in addition 50,840 lb. was packed for local trade are e was an export surplus of 915 bales (278,316 lb.), compared with 631 bales (187,750 lb.) in 1953-54.

A Hop Marketing Committee of six members (one Government and five producer) was established by the Hop Marketing Regulations 1939 to regulate and control the marketing either locally or overseas of all hops produced in New Zealand and to assist the industry generally.

TOBACCO.—After the establishment of the Tobacco Board in 1936 production rose from 1,197,161 lb. in 1935-36 to 5,000,470 lb. in 1948-49. Reduced plantings since then have been largely offset by higher yields. Commercial tobacco growing is confined to those to whom licences are issued by the Tobacco Board established under the Tobacco Growing Industry Act 1935 to control the industry. Most of the tobacco produced is flue-cured, producing a yellow-leaf tobacco which is largely used for the manufacture of cigarettes, the balance, air-cured, being used mainly in the manufacture of smoking mixtures and pipe tobacco.

The following particulars relating to tobacco production have been taken from the annual report of the New Zealand Tobacco Board. It should be noted that the figures relate to the total commercial tobacco production and not merely to holdings of 1 acre or over situated outside borough boundaries, as is the case with most of the statistics contained in this Section.

SeasonNumber of GrowersArea PlantedProduction
 Acreslb.
1951-524963,6484,088,189
1952-534293,5144,797,267
1953-544013,2124,228,643
1954-554123,0824,135,921
1955-564183,1374,733,086

The production figures represent the weight of the leaf purchased from growers before redrying. Flue-cured leaf accounted for 99.08 per cent and air-dried leaf for 0.92 per cent of the 1955-56 crop.

Mechanization of the industry on the growing side continues to increase. Picking and tying, however, are still done by hand.

PHORMIUM TENAX.—Large areas in various parts of New Zealand are covered with Phormium tenax, or New Zealand flax, the fibre of which is largely used for ropemaking, etc. An area of 41,769 acres was estimated as under phormium tenax on occupied holdings in 1954-55.

LINEN FLAX.—Investigations into the growing of linen flax in New Zealand were first instituted in 1936, and much valuable research work was carried out by the Department of Scientific and Industrial Research in collaboration with the Department of Agriculture. These investigations demonstrated the possibility of the establishment of the industry in New Zealand, and led to an officer being sent abroad to study the industry at first hand and to purchase the necessary processing machinery for an experimental factory.

Though 40 acres of linen flax were grown in 1939-40, the industry was not established on a commercial basis till the 1940-41 season, when 13,118 acres were grown under contract to the Crown in response to a request received from the United Kingdom Ministry of Supply. This was increased to 21,067 acres by 1942-43, but with the end of the war fell to approximately 4,500 acres. There has since been a further decrease, the area recorded in 1953-54 being only 1,886 acres. Since 1954 the industry has gradually declined until the present time when, with the closure of factories at Fairlie and Winton, only Geraldine remains open to clean up existing stocks on hand. No further contracts have been entered into.

SEED CERTIFICATION.—Commencing with the certification of seed potatoes and seed wheat in 1928, the Department of Agriculture has extended its activities in this direction to include such crops as perennial rye-grass, Italian rye-grass, Short-rotation (H1) rye-grass, cocksfoot, timothy, brown-top, Phalaris tuberosa, white clover, cow-grass (broad red clover), Montgomery red clover, subterranean clover, oats, barley, ryecorn, sweet blue lupins, onions, chou moellier, rape, kale, turnip, and swede seeds.

The scheme was introduced to provide the buyer of certified seeds with a guarantee that the produce of such seeds would be true to type and free from seed-borne diseases.

In the early stages of the scheme, certification, which has relationship only to the type of the plant and not to the purity or germination of the seed itself, was based on the identification of superior strains of seeds appearing in certain districts as a result of natural selection. At the same time, however, a programme of scientific plant selection was instituted by the Department of Scientific and Industrial Research in an endeavour to improve still further the naturally occurring strains. The results of this selection work now form the basis of seed certification as applied to most of the above-mentioned types.

The task of raising seed of artificially selected strains involves in the first instance the testing of a large number of individual plants of the particular species. Only the plants giving the best performance under trial are resown for further multiplication, possibly half a dozen out of thousands.

These plants are then seeded together to produce small quantities of seed of the selected strain. This seed, in turn, is multiplied until sufficient is available to sow areas on a field scale. At this stage the Department of Agriculture takes over the material available and multiplies the seed under contract with selected farmers.

The resultant seed is distributed by the Department, sales being made through the mercantile firms to those farmers most favourably situated to make the best use of it for further seed production. From this stage the selected strain is multiplied under the Department's certification scheme through the stages of certified "Pedigree" seed and certified "Mother" seed to certified "Standard" or "Permanent Pasture" seed. These seeds are sold through the usual commercial channels.

While in the lower classes of some varieties of certified seed at the present time there may be included also seed from natural strains, the proportion of the latter is being steadily reduced. The purpose of the various classes is to obtain the greatest bulk of good-quality seed in the "Standard" or "Permanent Pasture" class in the shortest time. Thus, while the higher grades are important to seed producers, farmers sowing for pasture purposes only need not concern themselves with other than certified "Standard" or "Permanent Pasture" seed.

20 C—LIVESTOCK

SUMMARY OF LIVESTOCK.—Detailed statistics of livestock are contained in the Report on the Farm Production Statistics of New Zealand issued annually by the Department of Statistics. This publication also contains the summary tables appearing in parliamentary paper H-23, which is devoted exclusively to a statistical analysis of the annual sheep returns. It should be noted that, unless otherwise stated, the statistics quoted in the tables in this subsection relate to holdings of 1 acre and over situated outside borough boundaries.

From the 1952-53 to the 1954-55 seasons farming statistics were based on a sample survey (ratio 1: 7). Undue importance should not be attached to the final digits shown, as these statistics are estimated from the sample returns and are quoted to the last unit for the sake of convenience.

The numbers of livestock of various kinds at each of the last five annual enumerations were as shown in the following table. Horses, dairy cows in milk, total cattle, sows, and total pigs are as at 31 January; sheep shorn, lambs shorn, and lambs tailed are for the season ending in the year stated; breeding ewes and total sheep are as at 30 June.

19511952195319541955

* Includes those in boroughs and on holdings under 1 acre.

Horses183,972173,922158,065158,280147,063
Dairy cows in milk1,898,1971,905,5341,962,4921,999,1401,994,761
Cattle (including dairy cows)5,060,0245,164,6895,445,9635,744,8785,886,777
Sheep shorn during season32,251,29733,901,69134,794,48935,542,83637,354,588
Lambs shorn during season7,017,9896,705,1907,111,9008,355,9478,138,840
Lambs tailed during season21,238,46121,814,02422,162,27023,594,80524,239,189
Sheep (including lambs)*34,786,38635,384,27036,192,93538,010,95439,117,300
Breeding ewes*22,638,49122,963,34023,781,37624,850,53026,186,358
Pigs (total)564,335565,723627,830648,902681,359
Breeding sows75,05377,74781,16287,10488,969

In the following table figures for livestock other than sheep are given for each land district for the 1954-55 season.

Land DistrictHorsesDairy Cows in MilkTotal CattleBreeding SowsTotal Pigs
North Auckland20,979451,2141,001,08723,076174,085
South Auckland28,340750,2911,624,03033,665263,441
Gisborne11,27844,613414,1102,51616,383
Hawke's Bay12,33153,698526,9541,85014,244
Taranaki8,987260,039499,7887,58261,706
Wellington22,843230,1521,020,36511,02578,150
Marlborough2,37714,65669,9981,1147,913
Nelson2,54535,06392,9992,48519,004
Westland1,06713,48758,5947457,716
Canterbury17,18765,020262,7903,40027,863
Otago11,03333,875147,9658375,472
Southland8,09642,653168,0976745,382
      Totals147,0631,994,7615,886,77788,969681,359

The corresponding figures for sheep are now given.

Land DistrictSheep ShornLambs ShornLambs TailedBreeding Ewes*Total Sheep*

* Includes sheep in boroughs.

North Auckland1,546,028482,130898,306992,7891,449,480
South Auckland4,143,0231,252,1772,662,4783,005,0644,155,808
Gisborne2,174,454839,9401,038,8321,282,5102,186,250
Hawke's Bay4,797,5601,542,7912,840,7463,206,6104,899,357
Taranaki1,077,872401,552674,736754,4771,117,136
Wellington7,420,5742,590,5414,329,4354,862,4867,552,959
Marlborough1,057,023132,057526,638667,3541,139,782
Nelson428,43351,635219,669273,766449,923
Westland88,44817,77679,44579,80298,636
Canterbury6,207,740408,6174,567,7914,732,9056,771,196
Otago4,273,500186,6832,779,2873,036,7084,794,397
Southland4,139,933232,9413,621,8263,291,8874,502,376
      Totals37,354,5883,138,84024,239,18926,186,35839,117,300

The next table shows the proportion of the various kinds of livestock in each land district. The figures reveal that the dairying and beef-production industries are both largely concentrated in the North Island, which has 86 per cent of the total cattle and 89 per cent of the dairy stock. Localizing the dairying industry still further, it is found that over half the milking cows of New Zealand are in the area comprised of the land districts of North and South Auckland. Taranaki and Wellington are practically equally important as regards the number of cows in milk; between them they account for nearly one-quarter of the total.

Taking the number of beef cows two years old and over as a guide to beef production, Wellington Land District easily leads with over one-fifth of the New Zealand total. South Auckland is second, followed by Hawke's Bay, Gisborne, and North Auckland in that order. These five districts together depasture 81 per cent of cows reserved for beef production.

Pig farming is largely an adjunct of dairy farming, and consequently the distribution of swine closely follows that of dairy cattle. Taranaki, however, which is mainly a cheese-producing district, has 13.0 per cent of New Zealand's milking cows, but only 9.1 per cent of the pigs, while Nelson, Westland, and Canterbury, which together have only 5.7 per cent of the cows in milk, have 8.0 per cent of the pig population.

Sheep farming is more evenly distributed between the North and South Islands. The land districts of major importance are Wellington, Canterbury, Hawke's Bay, Otago, Southland, and South Auckland, in that order, these six districts accounting for nearly 84 per cent of the total sheep population in 1955.

The following table shows the percentage distribution by land districts of each class of livestock.

Per Cent

Land DistrictDairy Cows. Two Years Old and Over (in Milk)Cows and Heifers, Two Years Old and Over (Other Than for Dairying)Total CattleBreeding SowsTotal PigsTotal HorsesSheep Shorn*Lambs Shorn*Lambs Tailed*

* Sheep shorn, lambs shorn, and lambs tailed during 1954-55, remaining particulars for stock at 31 January 1955.

North Auckland22.6210.8817.0125.9425.5514.274.145.923.71
South Auckland37.6118.0027.5937.8438.6619.2711.0915.3910.98
Gisborne2.2413.697.032.832.407.675.8210.324.29
Hawke's Bay2.6916.578.952.082.098.3812.8418.9611.72
Taranaki13.043.868.498.529.066.112.894.932.78
Wellington11.5421.9417.3312.3911.4715.5319.8731.8317.86
Marlborough0.731.651.191.251.161.622.831.622.17
Nelson1.761.181.582.792.791.731.140.640.91
Westland0.681.121.000.841.130.730.240.220.33
Canterbury3.265.104.463.824.0911.6916.625.0218.84
Otago1.692.692.510.940.817.5011.442.2911.47
Southland2.143.322.860.760.795.5011.082.8614.94

SHEEP.—The number of breeding ewes reached a new record level of 21.9 million in 1950, while the total number of sheep, 33.9 million, was only 118,000 below the record figure of 1945. As from 1951 the date of collection was changed from 30 April to 30 June. The change in the date of collection made it difficult to assess the relative increase in sheep numbers compared with 1950, but the actual increase between 30 April 1950 and 30 April 1951 has been estimated at over three and a quarter millions. In each successive year since 1951 new record levels have been reached for both the number of breeding ewes and total sheep.

At 30 June 1956 the number of breeding ewes was 27,015,612 and of total sheep 40,255,488.

The special farming type classification made in 1949-50 as part of the World Census of Agriculture shows the following break up by regional areas of those farms where 50 per cent or more of the farm enterprise was given over to sheep. Of all the farm types this classification shows the most equal balance between the North and South Islands, though the diversity of sheep farming with other agricultural pursuits is very evident in the South Island.

The following table shows the number of sheep farms in 1949-50 by regional areas.

Regional Area*Principally SheepSheepOther Sheep HoldingsTotal Sheep Farms
With Beer StockWith Dry Dairy StockWith Dairy StockWith CroppingWith PoultryWith HorticultureWith Mixed FarmingNo.Area
Acres

* For list of counties included sec pages 512-13.

Northland4422821234 1 14 785699,643
South Auckland5421302350   101756464,330
Waikato and Hauraki Lowlands648977042 11135877399,398
Cape Colville8515185  122128117,496
Central Plateau166593413   111284265,071
Western Uplands98029743571  1111,3951,442,304
Taranaki26527793014 312439234,952
East Cape58227211366512759451,751,473
Hawke's Bay1,6191571887221149331,9872,098,902
Rangitikei1,528782211430114241,8201,616,668
Manawatu1,149394711917 23551,413709,578
Castlepoint2568 10     274396,046
Wairarapa530223394  335636628,843
Featherston293141123   112354515,160
Nelson404342578 7134529446,117
Marlborough5681842373 130237401,785,507
West and656412   41137197,646
Norton Canterbury4054 1093  64205961,323,947
Food hills2312216381 33153381,045,148
Canterbury Plains22235171292 3216426268,438
Christchurch311 12  3 3822,422
Banks Peninsula2161821832192271178,298
Mackenzie2304 523 114102871,476,035
South Canterbury1,24283127559214212562,2323,350,892
Otago6968480364373349381,640,281
Central Otago565 115403423106613,789,679
Southern2,853708309160313521523,9083,368,001
Remainder74        74177,371
  Totals, Number16,8871,7314281,3391,24549291,15140923,268 
      Acreage (000)24,6212,98115149374120241,080298 30,410

In the following table sheep distribution is shown by Islands, the figures including sheep in boroughs.

YearNorth IslandSouth IslandTotal Sheep at 30 April
NumberPer Cent of TotalNumberPer Cent of TotalNumber

* At 30 June.

194519,215,2405714,759,3724333,974,612
194718,245,5615614,436,2384432,681,799
194818,495,5435713,987,5954332,483,138
194918,600,0685714,244,8504332,844,918
195019,131,6605714,724,8984333,856,558
195119,912,8585714,873,5284334,786,386*
195220,161,2855715,222,9854335,384,270*
195320,407,3245615,785,6114436,192,935*
195421,292,1455616,718,8094438,010,954*
195521,360,9905517,756,3104539,117,300*
195622,131,6885518,123,8004540,255,488

The following table shows the number of rams, wethers, breeding ewes, dry ewes, and lambs in New Zealand for the last five years, together with a broad classification into stud and other groups for the years 1948 to 1952. Figures prior to 1951 are at 30 April; from 1951 they are at 30 June. Consequent on this change, figures in the "lambs" column as from 1951 should be read as "hoggets". The hogget total for 1956 includes 206,694 ram, 2,712,850 wether, and 6,618,612 ewe hoggets.

YearRamsWethersBreeding EwesDry EwesLambsTotal

* Change in Classification.

Totals
1952632,0862,979,15622,963,340450,7348,358,95435,384,270
1953639,5502,660,76823,781,376444,6248,666,61736,192,935
1954669,0962,719,58924,850,530428,7579,342,98238,010,954
1955702,3062,558,62126,186,358479,1309,190,88539,117,300
1956729,1652,495,28427,015,612477,2719,538,15640,255,488
Stud Sheep (Entered in Flock Book)
194812,380 314,1456,092237,892570,509
194912,576 323,7046,966239,379.582,625
195012,129 319,0776,249245,369582,824
195111,606 323,4715,774239,660580,511
195212,828 331,1805,937248,485598,430
Sheep of a Distinctive Breed but not Entered in Flock Book
1948549,463903,1735,420,298212,5932,140,8519,226,378
1949559,009953,7465,818,439211,1612,134,2639,676,618
1950568,697982,8436,324,524232,6642,414,33910,523,067
1951588,243910,9774,793,956162,9121,893,5988,349,686
1952*587,5452,393,10517,804,304356,5546,522,33827,663,846
Crossbred Sheep
19489,6341,345,68815,321,039441,9095,567,98122,686,251
194911,3371,521,66715,357,560417,1155,277,99622,585,675
195013,8561,493,41615,237,866404,5075,601,02222,750,667
195121,5771,768,41517,521,064302,1706,242,96325,856,189
1952*31,713586,0514,827,85688,2431,588,1317,121,994

Because of changes in the 1952 questionnaire, figures for non-stud sheep are not comparable with those for the preceding years. Sheep previously classified as crossbreds now appear under the distinctive breed where a particular strain is predominant. The figures for Romneys illustrate very markedly the effect of this change in method of classification. The statistics of breeds of sheep are now (from 1952 onwards) being collected at five-yearly intervals.

The 1952 classification of breeds shows that of the 35,384,270 sheep in New Zealand 22,378,958 (63.2 per cent) were Romneys and 7,121,994 (20.1 per cent) were crossbreds. The remainder were principally half-bred 2,705,195, Corriedale 1,505,492, Merino 795,385, and Southdown 711,409.

The average size of the flocks was 1,008 in 1952, 1,022 in 1953, 1,050 in 1954, 1,054 in 1955, and 1,055 in 1956. The subdivision of the large estates of the pioneering days and the practice of running small flocks on dairy farms, the latter a typical feature of recent activities, has resulted in a decrease in the average size of flocks as compared with earlier days. Since the beginning of the present century, however, there has been little variation. An upward tendency was evident between 1939 and 1945, owing no doubt to the decrease in dairy stock during the war period. Decreases in 1947 and 1948 have been followed by slight rises, probably as a result of higher wool prices. A classification according to size shows the following position.

Size of Flocks19521953195419551956
1 to 1006,9063,8263,8163,8454,239
101 to 2003,0092,9932,9843,059
201 to 5007,0886,8836,7286,8576,832
501 to 1,0008,6358,7038,8458,9259,182
1,001 to 1,500 6,0316,2836,5836,674
1,501 to 2,0009,9822,9623,2363,4563,538
2,001 to 2,5001,4701,6171,7211,767
2,501 to 5,0001,9571,9892,1162,1442,282
5,001 to 7,500353349362363375
7,501 to 10,0009593109112111
10,001 to 20,0008910095100100
20,001 and over8891113
      Total flocks35,11335,42336,20937,10138,172

WOOL PRODUCTION.—Although fifth in order in actual size of flocks on the latest figures available, in point of production of wool New Zealand was the second largest in the world, and also ranked second in the list of principal exporting countries. New Zealand specializes in the production and export of crossbred wool, and in this field her production and export exceed those of Australia as well as of her other competitors Argentina and Uruguay. With the exception of a small annual consumption by local mills the whole of the wool produced in New Zealand is exported. The quantity on a greasy basis used by local mills prior to the war was from 7,000,000 lb. to 8,000,000 lb. per annum, but this was greatly increased during the war period. By 1946-47 the wartime demand had eased and the quantity had fallen from 17,200,000 lb. in 1943-44 to 13,100,000 lb. Except. for 1951-52, when it fell to 11,000,000 lb., local consumption has remained about the 13,000,000 lb. mark, 13,500,000 lb. being used in 1953-54,12,200,000 lb. in 1954-55 and 13,530,000 lb. in 1955-56.

The following are the figures of estimated production in each of the last twelve seasons, computed on a greasy basis.

Year Ended 30 JuneEstimated ProductionYear Ended 30 JuneEstimated Production

* Provisional.

 lb. lb.
1946365,000,0001952407,000,000
1947367,000,0001953418,000,000
1948362,000,0001954426,000,000
1949367,000,0001955455,000,000
1950390,000,0001956462,000,000
1951390,000,0001957475,000,000*

An analysis of wool sold at New Zealand auctions, according to quality groups, is given in the following table.

Quality Group1951-521952-531953-541954-551955-56
BalesPercentage of Total SalesBalesPercentage of Total SalesBalesPercentage of Total SalesBalesPercentage of Total SalesBalesPercentage of Total Sales
60-64's and up14,1291.513,0071.414,9111.615,7901.617,5371.7
60's13,8051.510,2531.111,1071.211,2651.110,4961.0
58-60's, 58's, and 56-58's93,26610.191,3619.990,9279.798,2709.996,4579.5
50-56's and 56's118,77812.8102,98711.2116,66112.5132,32613.3127,42212.7
52's60,3176.560,3056.655,9246.068,5346.968,2216.8
50's116,04412.5117,52912.8127,12213.6139,77514.1145,71014.5
48-50's134,33714.5145,75515.9166,23317.8176,47517.7174,37617.3
46-50's and 48's253, 98627.4271,06629.5242,26825.9252,99425.4268,59926.7
46-48's103,29611.190,8059.989,4559.679,7668.079,8087.9
46's and lower19,8102.115,5281.719,5392.120,3112.019,0811.9
      Totals927,768100.0918,596100.0934,147100.0995,506100.01,007,707100.0

The Wool Industry Act 1944 provided for the establishment of the New Zealand Wool Board, replacing the New Zealand Wool Council established under the Wool Industry Promotion Act 1936. The Board's principal concern is the promotion of the wool industry, particularly in regard to markets, scientific and industrial research in relation to wool and sheep with a view to improvement in duality and quantity, and the discovery of new or improved methods of utilization. Specific matters in relation to which the Board may be called upon to exercise certain functions are the production handling, pooling, appraising, storage, distribution, marketing, and disposal of wool. The Board in empowered to act in combination or association with other bodies established outside New Zealand functioning on similar lines. It is also represented on the Wool Commission established by the Wool Commission Act 1951. To provide funds for the Board to carry out its functions the Act authorizes a levy on all wool produced in New Zealand, the rate of the levy to be fixed each season by the Board. Originally this levy was paid entirely by the wool growers, but a 1954 amendment limits the wool-growers' contribution to 50 per cent of the levy, the remainder being paid from a fund held by the Wool Commission (making a total levy of 6s. per bale at present).

References to the activities of the Wool Commission set up under the Wool Commission Act 1951 are to be found on pages 478-79.

CATTLE.—The total number of cattle recorded at the enumeration of 1955 was 5,886,777, as against 5,744,878 in 1954. The figures for 1954 and 1955, grouped according to the classification in use, were as follows:

Dairy stock—

 19541955
Breeding bulls, two years old and over62,56958,408
Cows and heifers, two years old and over—
  Cows in milk during season1,999,1401,994,761
  Heifers not yet in milk74,57674,414
  Cows not in milk during season, but intended to be used again for dairying49,23639,179
Heifers—
  One and under two years old399,675432,495
  Under one year old482,524439,298
Bulls and bull calves under two years old to be used for breeding purposes42,70440,498
      Totals, dairy stock3,110,4243,079,053
Beef stock—
Breeding bulls, two years old and over28,37330,328
Cows and heifers, two years old and over1,009,3541,091,445
Heifers—
  One and under two years old250,598259,854
  Under one year old278,338302,149
Steers, two years old and over508,754515,661
Steers and bulls—
  One and under two years old255,559284,541
  Under one year old303,478323,746
    Totals, beef stock2,634,4542,807,724
    Totals, cattle5,744,8785,886,777

For some time prior to 1933 the development of the beef breeds was somewhat checked, partly owing to the advance taking place in dairying operations and partly through the difficulties of competing with other countries in the British market; but the successful inauguration of chilled beef shipments to the London market led to a marked increase in beef animals. Although the wartime arrangement for the purchase by the United Kingdom Government of New Zealand meat available for export did not include chilled beef, the schedule of prices was so framed that the producers of animals of the type required for the chilled beef trade would not suffer on account of the temporary cessation of the industry. A condition of the long-term contract for the purchase of meat by the United Kingdom Government was that the chilled beef trade should be progressively resumed as and when the shipping position permitted. Trial shipments were made in 1952 and 1953, while larger scale shipments again commenced in 1954.

Up to 1935 the breeding of dairy cattle made great progress in New Zealand. From then on, up to 1947, with the exception of 1941, when a slight increase was recorded, a series of successive decreases was experienced in the number of cows in milk. In each of the succeeding seven years substantial increases took place, the total for 1954 (almost 2.0 million) being 37,000 above the previous highest figure of 1.96 million recorded in 1953. In 1955, however, there was again a slight decrease which would have been greater but for an appreciable drop in the number of dry cows carried through the season.

The following table shows the number of holdings with dairy cows in milk, grouped according to size of herd in milk, for the last five years for which such information is available. The figures relate to holdings of 1 acre and over situated outside borough boundaries.

YearNumber of Cows in MilkTotal Holdings With Cows in Milk
1-910-1920-2930-3940-4950-5960-6970-7980-8990-99100 and Over
194732,0655,1355,4995,9474,8763,5222,7621,9461,3148141,89165,771
194832,3884,7865,2985,8105,1383,7452,8992,0161,4138782,03566,406
194931,8214,7525,0975,8275,1943,8633,1002,0431,4849432,06466,188
195132,1984,5584,8365,7455,3814,4223,5432,3751,6791,0862,44268,265
195232,2234,3664,5365,5275,2454,4383,6652,5121,7261,1052,53267,875

Analysing those farm holdings where 50 per cent or more of the enterprise is devoted to dairying, the North Island predominates with 84 per cent of dairy farms. The following table shows the number of dairy farms in 1949-50 by regional areas.

Regional AreaPrincipally DairyingDairyingDry Dairy Cows and Heifers OnlyOther Dairy HoldingsTotal Dairy Farms
With SheepWith CroppingWith Beef StockWith PoultryWith PigsWith BeesWith HorticultureWith Mixed FarmingNo.Area
Acres
Northland6,815154 2358142375514877,3131,485,711
South Auckland3,16511214335 192613183,504395,319
Waikato and Hauraki Lowlands6,544193 4720 73911846,936967,162
Cape Colville78727 141 2126 849192,907
Central Plateau2,065651 1811123403932,266439,416
Western Uplands907184 2 5 5301331,149284,159
Taranaki3,71377 11715 12312343,974514,993
East Cape9156513 44328381821,108150,572
Hawke's Bay594781196111218973987,371
Rangitikei1,0241878153 4171311,263181,504
Manawatu2,7161786 111019193642,990335,070
Castlepoint157  1      235,403
Wairarapa55672  571 1163661117,093
Featherston42241  55 1312 489131,792
Nelson817994457 30351121,014277,251
Marlborough324305 13  195639375,858
Westland34519 9163 178 408177,268
North Canterbury3231 1   11 392,625
Foothills50126 6 1 4318313,908
Canterbury Plains5261991 1212115111372775,155
Christchurch223519133 344627120,697
Banks Peninsula145361 12  41319336,125
Mackenzie831  1     131,612
South Canterbury635755723914423981088572,107
Otago43958101121 2179955870,880
Central Otago6881    141 8311,777
Southern1,29542325111112701151,836295,814
Remainder3          3138
  Totals, Number35,1482,23022859309165181685887649339,770 
      Acreage (000)5,190805242821231122247418 6,420

A similar analysis for beef-cattle farms shows that the North Island contributed 65 per cent of the New Zealand total for this type of farming. The following table shows the number of beef-cattle farms in 1949-50 by regional areas.

Regional AreaPrincipally Beef-cattleBeef-cattleOther Beef-cattle HoldingsTotal Beef-cattle Farms
With SheepWith DairyingWith Arable CroppingWith Mixed FarmingNo.Area
Acres

* Not available separately. Areas are included in the total.

Northland245673 411330184,825
South Auckland69102 148622,133
Waikato and Hauraki Lowlands716  148220,956
Cape Colville2431 233320,249
Central Plateau30111  24461,313
Western Uplands44132  16027,844
Taranaki161  14222,287
East Cape1591   2528,458
Hawke's Bay287    3520,483
Rangitikei2241 112911,599
Manawatu363  114111,181
Castlepoint1     1*
Wairarapa5     52,352
Featherston8     83,692
Nelson638   47539,130
Marlborough81    9462,507
Westland108443 4 159398,477
North Canterbury3     3212,855
Foothills1     1*
Canterbury Plains14     143,676
Christchurch9    1101,294
Banks Peninsula72    94,569
Mackenzie1     1*
South Canterbury291 1  315,946
Otago274111 3416,663
Central Otago21    3106,677
Southland59202 218431,688
Remainder7     7539
  Totals, Number95221517218371,241 
      Acreage1,389,252286,1586,15337412,80210,565 1,705,304

Most of the leading breeds of the cattle of Great Britain are represented in New Zealand by herds bred on sound lines. Provision was made in the 1950 Census of Agriculture for the collection of breeds of cattle, the first collection of this nature since 1928. Details of breeds are given on pages 488 and 489 of the 1954 issue of the Year-Book. Dairy stock in New Zealand in 1950 was predominantly of Jersey breed (84.7 per cent), while the beef stock breeds were mainly Polled Angus (66.7 per cent), Hereford (21.9 per cent), and Shorthorn (7.1 per cent).

DAIRY PRODUCE.—The Dairy Industry Act 1908 (a consolidation of previous legislation), with its amendments, may in general terms be described as an Act to regulate the production, collection, treatment, preparation, and manufacture, under proper sanitary conditions, of dairy produce—i.e., milk, cream, butter, cheese, and any other product of milk or cream—intended for sale for human consumption within New Zealand or for export.

Inspectors are empowered to inspect premises used for the production or manufacture of dairy produce. Any defects affecting the cleanliness and sanitation of the premises, or of the plant, machinery, and apparatus used in connection therewith, may be ordered to be remedied to the satisfaction of the inspector, and until so remedied their use in the production of dairy-produce may be forbidden. Inspectors are authorized to condemn any dairy produce considered unfit for human consumption, and the sale of unwholesome milk or other dairy produce is prohibited.

Milk or cream purchased for the manufacture of dairy produce and paid for according to the percentage of butterfat contained therein must have this percentage determined by the Babcock or the Gerber test. Dairy factories are required by regulations under the Act to pay different prices for different grades of milk or cream supplied for the manufacture of dairy produce. Factories are also required to furnish to suppliers a certified annual statement of overrun, and provision is made for an independent investigation by the Audit Department where a supplier is dissatisfied with the statement received.

Dairy produce intended for export must be sound and wholesome in all respects, and must comply with the requirements of the Act as to inspection, grading, and marking. The export of butter containing more than 16 per cent of water or less than 80 per cent of butterfat is prohibited. The export of cheese of which the water-free substance consists of less than 50 per cent of fats wholly derived from milk is also illegal.

Wide powers are conferred to make regulations prescribing matters of detail with regard to the production, manufacture, sale, and export of dairy produce. In particular, regulations may be made for the registration of dairies, the licensing of persons carrying on the manufacture of dairy produce, the registration of brands to be used on dairy produce, and for the inspection, grading, packing, marking, stamping, and labelling of dairy produce.

The Co-operative Dairy Companies Act 1949, which replaced similar legislation contained in the Dairy Industry Act 1908 and its amendments, provides for the registration of co-operative dairy companies. No dairy company may include in its registered name the word "co-operative" unless it is entitled to be registered as a co-operative dairy company under the Act. A company registered under the Act is authorized to accept or to compel the surrender of shares issued in certain cases, subject to the rights of shareholders being safeguarded. This refers mainly to shareholders who have ceased to supply milk, cream, or butterfat to the company for a specified period. The Act provides for the establishment of the Co-operative Dairy Companies Tribunal of three members, the functions of which are to fix the fair value of shares surrendered in cases where the company and the shareholder are unable to agree as to the value of the surrendered shares and to fix the terms of repayment by the company.

References to the parts played by the New Zealand Dairy Board, the New Zealand Dairy Products Marketing Commission, and the New Zealand Milk Board are to be found in Section 19—Production: General—under the heading of Marketing of Primary Produce.

Production of Dairy Produce.—Total production of butterfat during the 1955-56 season is estimated to have amounted to 533 million pounds. This is 24 million pounds more than was produced in the previous season and the second highest amount on record, being 6 million pounds short of the total production during the best season to date, 1952-53. The quantity of butterfat used in manufacture in the last season was 466 million pounds, compared with 443 million pounds in the 1954-55 season, and 472 million pounds in the record season of 1952-53.

Production results in 1955-56 for New Zealand as a whole were excellent. Northland experienced a very good season apart from wet conditions over the closing months. On the other hand Southland and Canterbury experienced some very dry spells which curtailed production. In spite of this, however, the butterfat content of milk increased to an average of 4.62 per cent, and butterfat production per cow averaged 265 pounds, 11 pounds more than in the previous season and 9 pounds below the record figure of 273 pounds achieved in 1952-53.

Variations over the last ten years in total butterfat production, including estimates for butterfat in milk and cream sold for human consumption, used and lost on farms, etc., are shown hereunder. The table also gives the number of dairy cows recorded as in milk, on farms of 1 acre or more outside borough boundaries, and estimates of the average butterfat production per cow "at the pail", this estimate being based on data concerning tested herds.

YearTotal ButterfatDairy Cows in MilkAverage Production Per CowYearTotal ButterfatDairy Cows in MilkAverage Production Per Cow

* Provisional.

 Million lb.(000)lb. Million lb.(000)lb.
1946-474081,6582431951-525051,906263
1947-484181,7142411952-535391,962273
1948-494571,7472591953-545011,999250
1949-504711,8502521954-555091,995254
1950-514971,8982601955-5533*2,002*265*

The next table shows the estimated production and disposal of butterfat during each of the last five seasons.

Million lb.

1951-521952-531953-541954-551955-56*

* Provisional.

† Including residual fat in skim milk from home separation.

Butterfat used in—
  Creamery buttermaking346.8363.5333.3344.6372.0
  Cheesemaking84.695.992.691.086.2
  Other milk products9.012.98.77.98.3
      Total used in manufacture440.4472.3434.6443.5466.5
Human consumption—
  Milk and cream as such and for manufacture of ice-cream41.942.743.343.544.7
  Farm butter4.13.73.33.12.8
Fed to stock13.514.714.714.013.5
Wastage5.15.35.05.05.3
      Total production505.0538.7500.9509.1532.7

Changes in the usage of butterfat in dairy factories over recent years are indicated by the percentages in the following table.

Percentage of Total Butterfat
1951-521952-531953-541954-551955-56*

*Provisional.

Butterfat received into factories from farms and used for—
  Buttermaking78.977.276.977.880.0
  Cheesemaking19.320.421.420.518.5
  Condensed and dried milk, etc.1.82.41.71.71.5
      Totals100.0100.0100.0100.0100.0

Manufacture of creamery butter during the 1955-56 season is estimated to have risen 8 per cent over the previous season, but cheesemaking declined by a further 5 per cent, the switch to casein manufacture being apparent in the large rise of 29 per cent in casein output. Production of buttermilk powder rose by 29 per cent; there was a decrease of 12 per cent in the amount of preserved whole milk made, while 13 per cent more skim-milk powder was made.

Production by dairy factories during the last five seasons is set out in the following table.

Tons (000)

1951-521952-531953-541954-551955-56
Creamery butter187.7197.2180.7186.7200.0
Whey butter2.83.33.23.13.0
Cheese95.4107.1103.4102.296.3
Condensed and powdered whole milk22.928.316.916.714.7
Skim-milk powder31.838.739.821.235.3
Buttermilk powder7.15.46.29.712.5
Casein9.57.18.311.314.6

The actual increases in the volume of production are shown in the next table, in which the above details are converted to index numbers based on the 1947-48 season (=100).

1951-521952-531953-541954-551955-56
Butterfat123132121124130
Creamery butter126132121125134
Whey butter112132128124120
Cheese110124120118111
Condensed and powdered whole milk130162979684
Skim-milk powder261317327256289
Buttermilk powder544418475748963
Casein213158185252324

The following diagram shows the progress of the dairy industry during the last fifty-one years, and also illustrates the disparity between the growth in the number of dairy cows and that of pigs.

New Zealand's paramount position in the supply of butter, cheese, and milk powder to the United Kingdom market is illustrated in the following table, showing imports into the United Kingdom, by country of export.

Country (of Export)ButterCheeseMilk Powder (Unsweetened)
195419551954195519541955
 Cwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per Cent
New Zealand2,432432,478401,821691,630637847554461
Australia584101,4642435513396152392314817
Denmark2,024361,69827188721081 121
Netherlands28452103149615062 15217
Other countries3006342612752028162344
      Totals5,6241006,1921002,6401002,5881001,042100890100

PIGS.—For some years prior to 1937 a quickening of interest in pig production as an adjunct to dairy farming raised pig numbers considerably above those noted previously, culminating in the record figure of 808,000 in 1936. Subsequent years showed substantial decreases in the number of pigs, although since 1948 the figures have shown a rising trend. The 1955 figure of 681,000 shows a decrease of 127,000, or 15.7 per cent, as compared with the peak figure of 1936.

At 31 JanuaryPigs Under Six Months OldPigs Six Months and Under One Year OldBoars One Year Old and OverSows One Year Old and OverTotal Pigs
1951349,509125,88313,89075,053564,335
1952351,921122,13913,91677,747565,723
1953392,872138,99414,80281,162627,830
1954417,992129,03114,77587,104648,902
1955434,400142,24615,74488,969681,359

Particulars as to pig breeds were collected in 1950, the first time a collection of this nature had been carried out since 1928. Details of breeds based on the 1950 collection are given on page 493 of the 1954 issue of the Year-Book. The principal distinctive breeds were Berkshire (6.6 per cent) and Tamworth (5.5 per cent), but over 80 per cent of the pigs in New Zealand were crossbreds.

LIVESTOCK SLAUGHTERING.—Meat intended for export from New Zealand is slaughtered at meat export slaughterhouses, of which thirty-eight are at present operating. They are licensed annually under the provisions of the Meat Act 1939 and regulations thereunder, which also authorized the Animal Industry Division of the Department of Agriculture to carry out inspection of all meat whether for export or for local consumption.

The supervision of grading of meat for export is one of the responsibilities of the New Zealand Meat Producers Board. Grading at each freezing works is carried out, after slaughtering and dressing, by graders employed by the concern operating the freezing works. Supervising graders of the Meat Producers Board are allotted to each group of works to ensure uniformity of grading. Grading of meat for local consumption is carried out by the meat inspection staff of the Animal Industry Division of the Department of Agriculture.

Abattoirs kill practically all the meat required by the urban centres and large provincial towns. There are at present forty-three abattoirs operating, the larger ones being organized on the same lines as meat export works. Rural slaughterhouses kill meat for consumption in small country towns and rural districts. Though there is no regular inspection of meat at these slaughterhouses, they are liable to fairly frequent visits from Livestock Instructors of the Department of Agriculture who check up on slaughterhouse building regulations, methods of killing, disposal of refuse, etc. As far as farm killings are concerned, there is no inspection of meat. Many farmers, particularly on sheep farms, kill their own meat; in point of fact many more sheep and lambs are killed on farms than at rural slaughterhouses.

The following table shows the numbers of the different classes of livestock slaughtered for food during each of the last ten September years. The figures are for total killings—i.e., they include export works, abattoirs, rural slaughterhouses, and an allowance for killings on farms.

LIVESTOCK SLAUGHTERINGS      Carcases (000)

Year Ended 30 SeptemberSheepLambsCattleCalvesPies
19475,03611,8087281,084633
19484,64512,3757121,174638
19494,83012,3746621,204674
19505,00012,7956931,275677
19514,43311,6946921,311707
19525,92512,4157431,311685
19535,54312,3006481,235741
19545,46713,3247801,326760
19555,73313,9929001,435778
19565,88614,8071,0001,406816

Sheep and Lambs.—As the United Kingdom takes the great bulk of the mutton and lamb exported from New Zealand it is interesting to note the extent to which New Zealand contributes to this market in comparison with importations from other countries.

In the calendar year 1938 New Zealand supplied 63 per cent of the total frozen mutton imported into the United Kingdom and 50 per cent of the total imports of frozen lamb. Australia, the next largest supplier in 1938, contributed 23 per cent of mutton imports and 29 per cent of lamb imports, while Argentina, which ranked third on the list, supplied 6 per cent and 15 per cent respectively.

That New Zealand has more than maintained her position in this connection in the post-war years is evidenced by the figures for 1955, when New Zealand supplied 70 per cent of frozen mutton and lamb imported into the United Kingdom, whereas the proportions supplied by other countries were: Australia 15 and Argentina 15 per cent respectively.

Cattle.—New Zealand's frozen beef competes under difficulties with chilled and fresh beef from countries nearer the United Kingdom, with the consequence that the New Zealand share of the United Kingdom's beef imports has been relatively small. However, prospects for expansion brightened considerably when several trial shipments of New Zealand chilled beef were despatched to England in 1933. The experiments proved very successful, and were followed by larger shipments, the quantity hipped in 1938 being 351,000 cwt. During the first nine months of 1939, 311,000 cwt. were exported, but with the outbreak of war the necessity for conserving shipping space resulted in the temporary cessation of the chilled beef industry. The first post-war consignment in the form of a small experimental shipment was made in 1952, followed by further trial shipments in 1953. During 1954 shipments of New Zealand chilled beef amounted to 144,997 cwt. The 1955 figure rose to 335,015 cwt. The development of the export trade in chilled beef, however, has not been made at the expense of frozen beef.

During the war period a considerably greater proportion of beef exports was shipped in boneless form in order to conserve shipping space, and this practice was continued into the immediate postwar years. Also much greater quantities were exported in canned form. Consequently, it is not possible to give an exact comparison over these years. In 1955 New Zealand supplied approximately 15 per cent of the United Kingdom's total imports of beef, as compared with only 7 per cent in 1938.

Pigs.—As in the case of other frozen meats, New Zealand pork in normal times is shipped almost exclusively to the United Kingdom.

In international trade, exports of bacon far exceed those of other pig products, with the United Kingdom normally absorbing most of the exports of other countries. Although New Zealand supplies a substantial proportion of the imports of frozen and chilled pork into the United Kingdom, her contributions of bacon are negligible. It should be mentioned, however, that the major portion of the carcases imported from New Zealand are "baconers," the curing process being carried out in the United Kingdom.

Calves.—Prior to the outbreak of the Second World War, veal production was displaying evidence of rapid development, and exports of veal had increased appreciably, mainly as a result of the expansion of the "bobby-calf" trade.

The term "bobby calf" is defined by regulations as being "all calves that have a live weight of less than 100 lb."

Bobby Calf Committees were established in 1938 and are now governed by the Bobby Calf Marketing Regulations 1955 under the control of the Dairy Board. The country is divided into bobby calf pools with a committee for each pool area to regulate and control the marketing of bobby calves. In this way the disposal of bobby calves to the best advantage of the farmer is ensured and the previously unsatisfactory position has been eliminated where each farmer sold individually.

The arranging of supplies of calf skins and veils (for rennet) for local consumption and for export are also handled by the Dairy Board. More than 1,000,000 bobby calves are collected annually.

Section 19 of this volume dealing with Production should be referred to for an outline of the activities of the New Zealand Meat Producers Board—see Marketing of Primary Produce.

Meat Production and Disposal.—Meat production for the season ended September 1956 and 1955 shows the total carcase weight of meat to be 671,200 (provisional) and 637,183 tons respectively. In the tables which follows carcase meat is shown at bone-in weight.

Total Production, 1954-55Disposals, 1954-55
ExportsShips' StoresFor CanningLocal Consumption
 TonsPer CentTonsTonsTonsTons
Beef202,11233.192,39743213,29295,991
Veal23,3803.815,729552,0535,543
Mutton137,92222.666,9771982,45268,295
Lamb207,97134.1198,99718688,780
Pig-meat—
  Pork14,3886.43,11474 11,200
  Bacon and ham21,8843,85119 18,014
  Chopper2,537 2804121,845
    Total carcase meat610,194100.0381,34596418,217209,668
    Edible offal26,989 15,074751,60510,235
      Grand totals637,183 396,4191,03919,822219,903

Prior to 1954-55 figures for exports to the United Kingdom as supplied by the New Zealand Meat Producers Board related only to meat shipped on contract to the United Kingdom Ministry of Food. The contract system of payment has now been abolished and all exports from New Zealand are now sold on the open market.

The next table shows total New Zealand meat production and exports to the United Kingdom under Ministry of Food contract for the two September years 1952-53 and 1953-54 together with total exports 1954-55.

Tons (000)

Total ProductionTotal Exports
1952-531953-541954-551952-53*1953-54*1954-55

* Exports to United Kingdom (under United Kingdom Ministry of Food Contract).

Beef161.3178.1202.136.941.292.4
Veal20.720.723.41.40.215.7
Mutton145.0129.4137.975.454.467.0
Lamb187.5198.4208.0176.1187.1199.0
Pig-meat—
  Pork13.318.814.46.78.73.1
  Bacon and ham25.716.821.98.41.43.9
  Chopper2.02.12.5  0.3
  Total carcase meat555.5564.4610.2304.9293.1381.4
  Edible offal22.524.227.010.911.615.1
  Total production578.0588.6637.2   
    Grand total     396.5
    Total exports under United Kingdom Ministry of Food contract315.8304.6 
    Percentage of total production54.651.8 

Meat consumed in New Zealand during 1954-55 accounted for 35 per cent of total production, the total per capita consumption showing an increase of approximately 2.5 per cent on the previous year's figure, increases being recorded in the consumption of lamb, mutton, and pig meats.

A summary of meat production and local consumption is set out below, together with quarterly estimates.

Tons (000)

Total Production (Estimated) (Bone-in Weights)
BeefVealMuttonLambPig MeatsOffalTotal

* Provisional.

Year ended 30 September—
  1951159.118.1109.2183.139.021.4530.0
  1952173.218.9153.7194.138.923.4602.2
  1953161.320.7145.0187.541.022.5578.0
  1954178.120.7129.4198.437.724.2588.6
  1955202.123.4137.9208.038.827.0637.2
  1956*225.624.7141.2210.740.328.2671.2
Quarter ended—
  1953—December29.12.819.534.110.23.699.3
  1954—March51.01.267.1111.416.09.9256.6
  June65.11.928.050.87.97.1160.8
  September32.914.814.82.13.63.671.8
  December41.13.628.656.911.56.0147.7
  1955—March55.02.161.6105.516.110.7251.0
  June69.63.031.944.67.96.9163.9
  September36.414.715.81.03.33.474.6
  December*41.73.827.363.312.66.4155.2
  1956—March*59.22.562.7104.715.310.7255.1
  June*78.83.435.741.49.77.1176.3
  September*45.915.015.51.32.74.084.6

Tons (000)

Consumption in New Zealand (Bone-in Weights)
BeefVealMuttonLambPig MeatsOffalTotal

* Provisional.

NOTE.—In some cases consumption may exceed production for the period, the balance being drawn from stocks in store.

Year ended 30 September—
  195199.54.955.49.627.58.5205.4
  195297.25.158.69.324.38.5203.0
  195393.04.660.08.820.38.2194.7
  195495.55.462.17.925.49.6205.9
  195595.25.867.48.828.49.8215.4
  1956*101.85.969.68.431.18.9225.6
Quarter ended—
  1953—December21.91.114.92.86.31.848.8
  1954—March22.81.415.32.07.32.251.0
  June25.61.616.41.86.12.654.0
  September25.21.415.51.45.63.052.1
  December22.51.415.82.76.91.951.2
  1955—March22.91.417.32.47.81.853.6
  June24.41.617.12.37.24.156.7
  September25.31.417.21.36.62.153.9
  December*23.91.217.42.88.32.456.0
  1956—March*23.71.517.42.48.42.055.4
  June*27.51.817.91.87.62.559.1
  September*26.71.416.91.46.82.055.1

The following table shows the imports of meat into the United Kingdom from the principal countries for the year ended 31 December 1955, by country of export.

Country (of Export)LambMuttonBeefAll Meats
Cwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per CentCwt. (000)Per Cent
New Zealand4,00667.793278.51,07715.36,69624.8
Australia85014.419516.42,31632.94,77417.7
Argentina1,03217.5  3,15444.85,47320.3
Denmark      5,48220.3
Other countries250.461514987.04,56816.9
      Totals5,913100.01,188100.07,045100.026,993100.0

The important part played by New Zealand in the supply of meat to the United Kingdom is shown in the above table, this country being the leading individual supplier, accounting in 1955 for 70 per cent of the mutton and lamb and 25 per cent of total meat products. Corresponding figures for 1954 were 75 per cent and 27 per cent respectively.

HORSES.—The following table includes the latest information available of the number of horses in each class shown, excluding horses in boroughs.

19511952195319541955
Draught and three-quarter draught65,90157,434158,065158,280147,063
Spring cart (including half-draught)22,54120,300
Hacks and light working horses75,31874,530
Thoroughbred and other horses20,21221,658
      Total horses183,972173,922158,065158,280147,063

Since 1911, when the peak number of 404,000 was recorded, there has been a steady decline in the number of horses in New Zealand. The greater part of the decrease has occurred in draught and three-quarter draught animals, the numbers of which fell from 118,000 in 1942 to 57,000 in 1952, while those described as spring cart (including half-draught) horses fell from 45,000 to 20,000. This decline in the numbers of horses of the heavy type has been accompanied by a marked increase in the use of mechanical traction for farm work, the number of agricultural tractors on farms in 1952 being 46,000 as compared with 14,000 in 1942. By 1955 the number of horses had fallen to 147,000 while tractors had increased to 62,000. This subject is discussed in more detail in Section 20A.

Hacks and light working horses have decreased to a much lesser extent over the period; in fact, mainly as the result of an increase of over 3,000 in 1950, the number for that year was the highest since 1938, but numbers have since receded slightly. The class described as "thoroughbred and other" fell away considerably during the war and early post-war years, but increases were recorded in the years 1948-52.

POULTRY.—A census of poultry has been an ancillary inquiry associated with the census of population from 1861 onwards, with the exception of the censuses of 1896 and 1901. Until 1936, however, poultry kept by Maori households had not been brought within the ambit of the census. The extension of the inquiry to Maori households in 1936 furnished probably the first statistics in existence on this subject. The total poultry flocks of the Maoris, however, are small (91,976 in 1945 and 107,361 in 1936), and their omission from earlier censuses does not appear to have been of significance.

The following table shows the numbers recorded at the last six censuses. All references to fowls, ducks, etc., are intended to cover both male and female birds.

CensusNumber of Households Keeping Fowls, Ducks, Geese, or TurkeysTotal Number of Fowls, Ducks, Geese, or TurkeysFowlsDucksGeeseTurkeys

* Excluding Maori flocks.

† Including Maori flocks.

October 1916*134,2343,465,6383,141,354220,80846,95556,521
April 1921*145,9933,991,0093,491,567379,98846,23473,220
April 1926*158,8563,781,1453,308,384352,03043,87976,852
March 1936*159,0983,911,7153,415,793351,60861,41882,896
March 1936166,3544,019,0763,488,516377,79166,66786,102
September 1945*152,2294,378,3904,006,780298,39937,66135,550
September 1945159,3334,470,3664,070,683319,91841,90337,862
April 1951180,7234,199,5903,829,481260,65958,47450,976

The comparability of the foregoing figures is affected by two important considerations, the first being that the 1951 figures include only birds aged four months or over, while the 1945 figures cover birds of all ages. The second factor is that the censuses of 1916 and 1945 were taken in the spring, whereas the other censuses were taken in the autumn. Poultry numbers are subject to considerable seasonal fluctuations, the main breeding season being in the early spring, when there would be considerable numbers of young chickens included in the figures, whereas in the autumn the culling of old birds would have been more or less completed.

Number and Size of Flocks.—Although poultry farming is regarded as a definite branch of the farming industry, a classification as to sizes of flocks indicates that poultry keeping is generally carried on merely as a sideline. The 180,723 households recorded as keeping poultry at the 1951 census show an increase of 13.4 per cent as compared with the 1945 census. Taking only fowls into consideration, it is found that 89.5 per cent of households keeping poultry had less than twenty-five birds, the corresponding percentage in 1945 being 83.8. In 15,535 cases in 1951 the number of birds ranged from 25 to 99, making a total of 174,704 cases, or 98.2 per cent, in which the flocks consisted of less than 100 birds.

Of 366 flocks in which the number of birds was 1,000 or over, 284 ranged from 1,000 to 1,999, 62 from 2,000 to 2,999, 11 from 3,000 to 3,999, and 9 exceeded 4,000. In 1945 the number of flocks of 1,000 or over amounted to 490, but here, as elsewhere, the remarks concerning seasonal fluctuations in poultry numbers made earlier should be taken into consideration. The larger flocks at the time of the 1945 census would be unduly swollen by the inclusion of young chickens held for sale, this being the source from which the small or "backyard" poultry keeper mainly obtains his flock. The average flock in rural districts was 26.3, in urban districts 14.7, and in New Zealand as a whole 21.5 birds.

Poultry Control.—The Poultry Act 1924 provides for the regulating of poultry keeping and of the sale and export of poultry and eggs. Provision is made for the appointment of inspectors, on whom certain powers of entry are conferred for purposes of inspection of poultry or of eggs intended for sale or export. Poultry are required to be kept under sanitary conditions, and cruelty to poultry is made an offence. Every owner of poultry is required to notify an inspector of any outbreak of disease among his flock and to comply with the inspector's directions. It is an offence to sell diseased poultry. The Governor-General in Council is empowered to declare diseases, to appoint ports of export, and to appoint grading stores.

In order to provide finance for the organization and development of the poultry industry, the Poultry-runs Registration Act was passed in 1933 and a Poultry Board constituted of two Government and four producer members. The Act makes compulsory the annual registration of every poultry run, which is defined as land used for the keeping of not less than twenty-five head of poultry (hens and ducks not less than six months old) and the production of eggs for sale. The fee payable annually for registration is 2s. 6d. if the flock is in excess of twenty-four but does not exceed one hundred head. For each additional hundred (or part thereof) an additional 2s. 6d. is payable. Figures supplied by the Board show that the number of poultry runs registered at 31 May 1955 was 7,489, covering an aggregate of 1,488,722 birds.

Reference to the field covered by the Egg Marketing Authority is given in Section 19 of this Year-Book.

BEES.—The rich dairy pastures of New Zealand and other localities where cattle raising is carried on extensively are particularly favourable for apiculture and the production of high-grade honey for the local and export markets; thus the North Island, which contains 86 per cent of the cattle population, accounts for 62 per cent of the total apiaries. The export trade is, of course, small when compared with the main primary industries, but is capable of considerable development. It is estimated that the total production of honey during a favourable season in New Zealand is 75 lb. surplus per hive, amounting to 6,400 tons, based on the present registered apiary holdings. The estimated production in commercial and domestic apiaries for the year ended 31 March 1955 was 4,600 tons of honey and 161,000 lb. of commercial beeswax, approximately 2,400 tons of honey and 84,000 lb. of beeswax less than the previous year's production.

Registrations under the Apiaries Act show that at 31 May 1955 there were 5,237 beekeepers with a total of 11,166 apiaries and 180,409 established hives. Following is a summary of these registrations showing beekeepers in groups according to the number of hives kept.

Group1-5 Hives6-29 Hives30-250 Hives251 Hives and Over
Beekeepers3,4711,102432232
Apiaries3,5331,4001,8244,409
Hives established7,80612,98536,593123,025

Under the Apiaries Act 1927 stringent regulations have been enacted in order to control foul-brood, bee moths, and other diseases of bees. Beekeepers are required to register all apiaries of one or more hives, and it is an offence to keep bees in an unregistered apiary. Only frame hives may be used, box hives being prohibited.

The introduction into New Zealand of bees, and used appliances for the keeping of bees and the harvesting of their products, is prohibited save with the prior consent of the Minister of Agriculture. The consent of the Minister in regard to used appliances is restricted to such appliances as are necessary to serve as containers for bees so introduced.

Exports of honey for the last five years ended 31 December are given below.

YearQuantityValue
 lb.£
1951751,28034,994
1952885,59843,412
19531,115,59557,980
19541,896,51895,378
19554,555,931226,963

Reference to the activities of the Honey Marketing Authority is given in Section 19 of this issue.

Chapter 21. SECTION 21—FORESTRY

Table of Contents

NATIONAL FOREST POLICY.—The forest policy is essentially one of conservation and expansion—conservation of the indigenous forests for the threefold purpose of erosion control, maintenance of amenity values, and timber production; and expansion of the exotic forests to enable the conservation of the indigenous forests and provide an additional timber supply. Only by the multiple use of both upland and lowland forests for the preservation of their timber productivity and for the maintenance of their protective, scenic, and recreational values can the objective of the national forest policy be achieved. This objective is that the public should enjoy to the full those economic and social benefits which forests alone can confer.

The salient features of the timber-supply situation are—

  1. Most of the remaining virgin forests are overmature, with new growth being offset by decay and natural deaths.

  2. The podocarp forests (which supply most of New Zealand's general-purpose indigenous timber) regenerate only with difficulty and grow very slowly. The kauri forests regenerate more easily and grow faster than the podocarp, but even then they are slow growing. The beech forests, which establish themselves more readily, grow very much faster than either the podocarp or kauri forests.

  3. Current timber demands are depleting the virgin indigenous forests at such a rate that without other provision being made New Zealand would soon be faced with a permanent timber famine and would have to rely entirely on imports.

  4. The establishment of exotic forests to supplement and, in a large measure, to replace the indigenous forests is essential to the future well-being of the country.

  5. Fortunately, New Zealand is endowed with a climate which is particularly favourable to the development of several valuable exotic softwood species. Moreover, there are large areas of land which are marginal for agriculture (or in the past have been so considered) but which are entirely suitable for tree growth.

  6. So favourable are the climatic and soil factors in New Zealand that exotic softwood forests can be grown more quickly and hence more cheaply than in most other countries. As a result New Zealand can look forward confidently to the development of its export trade in timber, woodpulp, newsprint, and other forest products.

FOREST RESOURCES: General.—Land in New Zealand was acquired by the Crown during the early days of settlement, except for limited areas purchased privately from the Maoris; some land, mostly in the North Island, remained as Maori land. Subsequently the Crown granted freehold and leasehold titles for much tussock grassland country and for accessible forest areas, but it kept in reserve large forest areas for future settlement and for timber supplies. Because of the mountainous nature of the country—three-quarters of the land surface lies above the 650-foot contour—and the limited farmable areas therefore available, the more accessible country was quickly cleared of forest under this system of settlement. The main mountain areas, however, remained forested, and before they could be deforested to any extent the shortage of indigenous timber reserves became apparent and the dangers of erosion began to show on the steep country that had been cleared. Many of these areas were, therefore, made State forests quite early—this term being used for the first time under the Forests Act of 1874—and upon the formation of the State Forest Service in 1919 were administered by the Forest Service either as permanent or provisional State forests. The latter category included land that might be suitable for farming and could be taken over for this purpose once the crop of timber had been cut from it. Large areas of indigenous forest were from time to time also declared national parks and reserves. By and large the general pattern of distribution of agricultural land and forest became defined about the end of the nineteenth century.

Distribution of Forested Land.—In the days of first European settlement in New Zealand about 70 per cent of the land surface was forested. But now all readily accessible native forests have been cleared, and forested land is reduced to about a quarter of the total land area. Nevertheless, this portion represents a very large area as the following table of land categories shows.

Type of LandArea, in AcresPercentage of Total Land Area
Forested land16,130,00024.3
Non-forested land49,369,00074.4
Minor islands205,0000.3
Water area687,0001.0
    Total land area (including water surfaces)66,391,000100.0

The best use of the 16,000,000 acres of forested land will be decided, within the framework of the forest policy already outlined, by the location, tenure, and economic value of its component parts. It falls into three descriptive classes.

Nearly three-quarters is not commercially exploitable forest and is termed "other land classed as forest". This includes mostly indigenous forest that is Crown-owned, and, because it covers much of the remoter mountainous and high rainfall country, its primary function is that of soil protection and water regulation. Nevertheless, it also includes considerable areas of potential productive forest land which could, in the distant future, be placed under production management. Such management would always be subordinate to the protective functions of such forest.

Some 5 per cent of the forested area may be classed as "potentially exploitable" forest—forest which, owing to inaccessibility, has not yet been exploited but would be exploitable if such factors as demand and transport become favourable. "Potentially exploitable" forests also lie mainly on Crown land, and are entirely indigenous.

"Fully exploitable" forests are more diverse in tenure and composition than either of the other two classes already mentioned because they contain almost all the planted (exotic) forests, of which nearly half are owned privately or by local authorities. Fully exploitable indigenous forests have receded well in advance of close settlement, and the largest areas are now on Crown lands and Maori lands in regions (especially on the West Coast of the South Island) little suited to other forms of land use. The distribution of exploitable exotic forests has been influenced mainly by the availability of cheap, undeveloped land in the period (1900 to 1935), when most of these forests were established. Hence, there is a preponderance of exotic forest (State-owned and private) on the volcanic plateau of the North Island.

The distribution by area of these three classes of forested land in 1955 is shown by the following table.

Acres (000)

Class of ForestState ForestCommunal ForestPrivate ForestTotal ForestPercentage of Total Forest Area

NOTES

  1. State forest includes all forest under the control of the State through the New Zealand Forest Service or other Government Departments.

  2. Communal forest includes all forest under the control of local (i.e., public) authorities other than the State.

  3. Maori forest is included under private forest.

  4. Areas of communal and private forests are approximate only.

(a) Exploitable—
    Indigenous1,534 5792,11313.1
    Exotic465374129145.6
      Totals1,999379913,02718.7
(b) Potentially exploitable—
    Indigenous700 1018015.0
    Exotic     
      Totals700 1018015.0
(c) Other land classed as forest—
    Indigenous9,034 3,25612,29076.2
    Exotic12  120.1
      Totals9,046 3,25612,30276.3
(d) Grand totals—
    Indigenous11,268 3,93615,20494.3
    Exotic477374129265.7
      Total forest area11,745374,34816,130100.0

Composition of Forests.—Indigenous forests of New Zealand may be divided very broadly into two formations, mixed temperate evergreen forest and southern beech forest; the former, in regard to its trees, being a mixed community of many species of broad-leaved trees and conifers, and the latter a pure community of one or more of the species of southern beech (Nothofagus). Between these two formations there are many intermediates, as the one gradates to the other.

In general distribution, mixed temperate evergreen forest originally occupied mainly the coastal, lowland, and montane belts, except in the drier areas where it was replaced by southern beech forest; and the southern beech forest, besides occupying these drier areas, extended above the montane belt to the timber line. The upper altitudinal line of the mixed forest became gradually lower in proceeding from north to south.

Most of the mixed forest has been cut over for timber and cleared for farming purposes, whereas the southern beech forest, because of the difficult topography and the poor soils on which it most frequently grows, is largely intact. The following description gives in more detail the distribution and the present state of the main forest communities.

Kauri forest once occupied much of the area northwards from a line joining Port Waikato to Tauranga, but', except for limited reservations and small pockets, this forest has disappeared. The main secondary species of trees are taraire and tawa. Mixed podocarp forest (the principal podocarp is rimu; the important secondary ones, totara, matai, and miro) extended throughout all three main islands. The heaviest commercial stands were on flat or near-flat sites; in steeper country timber trees thinned out and secondary species became more plentiful. The remaining forest of this type consists of pockets which will be worked for a few decades to come; some large areas on steep country, such as the Urewera, which can be classed mainly as protection forest; and fairly extensive forests in the centre of the North Island and on the West Coast of the South Island which contain most of the remaining indigenous softwood supplies. The main species of broad-leaved trees in these forests are kamahi, tawa, and rata. Kahikatea forest occupied low-lying swampy river silts, but this has almost disappeared to make way for farming.

Bog forests, whose dominant trees are smaller podocarps of the silver-pine group, occupy limited areas mainly in the central North Island and on the West Coast of the South Island. They have largely been cut over, at least once, for posts and sleepers.

Although most southern beech forests can be classified as protection forests, there remain large areas in more accessible regions which have been cut over and are regenerating, or which have not yet been cut over and will be reserved for sustained-yield management. Where southern beech forest is present in the more accessible areas of the North Island and northern Marlborough-Nelson, the species are hard beech (Nothofagus truncata) and black beech (N. solanderi). Red beech (N. fused) abounds in the less accessible upper areas, where it is usually accompanied by the silver beech (N. menziesii), the main tree at high altitudes. In rather dry places mountain beech (N. cliffortioides) replaces silver beech. On the eastern slopes of the Southern Alps there was once a belt of mountain beech forest, but all except pockets of this has been burnt. On the western side of the Alps, beech forest is absent from the Taramakau River southwards for one hundred miles. In western Otago and Southland silver beech is the main forest tree, with fair areas of mountain beech and small pockets of red beech. At the lower elevations silver beech is extensively milled and much of the forest has disappeared.

Important forest trees at high elevations, and not already mentioned, are kaikawaka (Libocedrus bidwillii) and thin-barked totara (Podocarpus hallii).

In the undisturbed indigenous vegetation there were limited transition areas between tussock grassland and forest proper that carried manuka (Leptospermum scoparium and L. ericoides), and sometimes bracken fern (Pteridium esculentum). With the destruction of much tussock grassland and forest, these belts have extended, and manuka has even occupied extensive areas of destroyed forest remote from any original manuka stands. These stands are important because they are often a stage in succession back to mature forest. Manuka is also a very useful fuel.

Much land now classified as forest consists of a second growth of broad-leaved shrubs and trees which have come in after milling operations or on abandoned farm land.

Exotic plantations of over ten acres in extent now total 890,000 acres, besides which there is a large total acreage of smaller farm woodlots and shelter belts. These areas of exotic species already provide a significant proportion of the country's timber requirements, and before many more decades have passed must supply most of it. In some poorly forested districts shelter belts now provide a large part of the local timber supply.

Most of the larger exotic plantations are in the central North Island region. They were established with radiata pine (Pinus radiata) between the years 1925-1935. Other plantations are scattered throughout the country, although there are still some timberless districts with little plantation, notably Taranaki, Poverty Bay and the East Coast, and South Canterbury.

National Forest Survey.—Within the Forest Service an organization known as the National Forest Survey (administered by the Forest Research Institute, Rotorua) was set up in 1946 to make a volumetric record of the indigenous timber resources of the Dominion. Based on a combination of aerial photographs and statistically-controlled ground sampling, this survey will provide qualitative descriptions of the many forest associations present. Within the geographic units of the whole area studied, volume statistics will be provided according to species, land tenure, and accessibility.

The field work for this survey has recently been completed, after embracing more than 7,000,000 acres of difficult terrain. A full report is now being prepared. This will provide up-to-date information needed to draw up New Zealand's long-term indigenous forest policy. Further plans are at the same time being made to use the survey organization to make an inventory of exotic forest resources and of indigenous protection forests in high country.

FOREST AUTHORITY.—The administration of State Forests and afforestation activities in New Zealand was for many years under the control of the Department of Lands and Survey, but in 1919 a separate Forestry Department was formed. This was reorganized in 1920 as a Department of State called the State Forest Service, and was given statutory recognition and administrative authority by the Forests Act 1921-22, which provided for a Minister of the Crown to hold office as Commissioner of State Forests. The Forests Act 1949 consolidated the previous legislation and changed the title of the Minister to Minister of Forests, and that of the State Forest Service to the New Zealand Forest Service.

The Act provides for the appointment of a Minister of Forests, a Director of Forestry, and Conservators of Forests and other officers. The Minister may delegate such of his powers as he thinks fit. The Act prescribes that the Forest Service shall have under the direction of the Minister exclusive responsibility in carrying out all matters of forest policy affecting State forest land and shall have exclusive control and management of—

  1. All State forest land, whether for the production of timber or other forest produce, or for the protection of the land with a view to water conservation or soil stabilization, or for ensuring the balanced use of the land, or for scientific purposes, or for recreational or amenity purposes not prejudicial to forestry;

  2. The establishment, culture, and maintenance of forests on State forest land, and the harvesting, utilization, transport, sale, or other disposal of forest produce from State forest land;

  3. The granting of licences, leases, permits, and other rights and authorities under the Act;

  4. The enforcement of the conditions of licences, leases, permits, and other rights and authorities granted under the Act or any enactment repealed;

  5. The collection and recovery of all purchase-moneys, rents, fees, royalties, charges, and revenues of the Service; and

  6. Generally the exercise of all powers, authorities, and duties conferred or imposed on the Minister or the Forest Service by the Act.

Central management and control of the Forest Service is exercised by the Director of Forestry, with the head office at Wellington. For the purpose of local administration New Zealand is divided into seven conservancies, each under the control of a Conservator of Forests, who is the territorial representative of the Director of Forestry. Conservancies are subdivided into districts under the charge of Forest Rangers responsible to Conservators of Forests. Central administration of forest policy is achieved under divisions, each with an Inspector in Charge as principal officer Six divisions have now been set up—namely, management (working plans, silviculture, soil conservation, timber sales, etc.), commercial (logging, sawmilling, and log sales), development (recruitment, training, and research), engineering (building and road construction, mechanical plant, survey and mapping, fire protection), operations (forest law, accountancy, public relations, staff, etc.), and noxious animals (extermination of certain noxious wild animals. See reference to Noxious Animals Act 1956 on page 559),

There are two further divisions not yet fully developed. One, industrial, aims to provide the timber industry with such inspectional and protectional facilities as the common interests of producers and consumers require. This division is at present attached to the development division, and includes the timber quarantine and inspection services. The other, public and private forestry, is at present attached to the management division, and aims to provide extension forestry and advisory services to the whole community. Research has been centralized at the Forest Research Institute, Rotorua, and staff training at the Forestry Training Centre, also at Rotorua.

Slate Forests.—State forests are administered under the authority of the Forests Act 1949. The powers conferred by this Act to deal with forest produce are subject to the provisions of the Coal Mines Act 1925, the Mining Act 1926, and the Petroleum Act 1937. Section 23 of the Mining Amendment Act 1934 provides for the payment to the Crown of compensation for damage resulting from mining operations to any land vested in the Crown. Such compensation in respect of State forests may be claimed by the Minister of Forests from time to time as damage is caused. The Minister of Forests also administers the Waitangi Endowment under powers set out in the Waitangi Endowment Act 1932-33.

Mining Privileges and Coal-mining Rights.—Under the Coal Mines Act 1925 and the Mining Act 1926 a mining privilege or coal-mining right over State forest land may not be granted except with the consent in writing of the Minister of Forests and subject to such conditions as he may impose. Notwithstanding anything in the Mining Act 1926 or in any licence, lease, title, right, privilege, or other authority under those Acts granted after the Forests Act 1949 came into force, no person may cut or remove any timber or other forest produce on or from State forest land except in accordance with the provisions of the Forests Act.

Regulations.—The Forests Act 1949 authorizes the appointment by regulation of committees to advise the Minister of Forests on specified matters. Regulations issued under this authority are the Timber Production Advisory Committee Regulations 1949, the Sirex Advisory Committee Regulations 1950, the Forest and Fire Publicity Committee Regulations 1952, and the Waipoua Forest Sanctuary Advisory Committee Regulations 1952.

Other regulations in force are the Sawmill Registration Regulations 1952, the Timber Regulations 1948, the Forest Service Fees and Charges Regulations 1953, and the Forest Produce Import and Export Regulations 1956.

Timber Floating Act 1954.—The Timber Floating Act 1954, which consolidated and amended the Timber Floating Act 1908, is now administered by the New Zealand Forest Service. The Timber Floating Regulations 1955 have been issued under this Act.

Noxious Animals Act 1956.—This Act transfers to the New Zealand Forest Service the responsibility of controlling and eradicating noxious animals and confers on the Minister of Forests the appropriate powers for that purpose. The Opossum Regulations 1953 continue in force as if they had been made under the Noxious Animals Act 1956 and are now administered by the New Zealand Forest Service.

The Act transfers to the Forest Service the activities formerly carried out by the Wildlife Division of the Department of Internal Affairs under the Wildlife Act 1953. The Forest Service was considered better naturally equipped to administer the activities of this division. It is, from its greater knowledge of protection forests, better able to assign priorities to animal extermination measures, and make more effective use. of all facilities now available in carrying them out.

Fire Prevention and Control.—A complete coverage of New Zealand with respect to fire prevention and control is now provided by the Forest and Rural Fires Act 1955, and the Fire Services Act 1949.

The Forest and Rural Fires Act 1955 provides that each County Council is a Fire Authority for the county area under its control, and for the constitution of rural fire districts each to be administered by a committee or by the Minister of Forests as Fire Authority. The Minister of Forests is the Fire Authority for practically all unoccupied Crown-owned land outside rural fire districts, while the Soil Conservation and Rivers Control Council is the Fire Authority for each soil conservation district. Rural fire districts, soil conservation districts, most unoccupied Crown-owned land, and urban fire districts are excluded from control by a County Council. Regulations issued under this Act are the Rural Fire Committee Regulations 1949 and the Forest and Rural Fires Regulations 1956, which replace the regulations of 1951.

The Fire Services Act 1949 provides for the protection of urban districts.

FOREST MANAGEMENT.—In the field of production forestry, as distinct from protection forestry, the management activities of the Forest Service are directed towards two ends:

  1. To protect, conserve, and, if possible, perpetuate the remaining indigenous forests of the country.

  2. To create an exotic estate large enough and sufficiently diverse to supply the future needs of New Zealand in timber and other forest produce, and to provide an exportable surplus.

Indigenous Forest Management.—Conservation measures in indigenous production forests involve regulation and restriction of the permissible annual cut, protection against fire, a careful watch for trespass and the prosecution of offenders caught, rigid insistence on close utilization, both of forests and forest products, and finally block sales of carefully measured and appraised standing timber. Of these measures the last one is particularly important. The system of block sales introduced by the Forest Service in 1921 is in sharp contrast to the previous method of "royalty payment off the saw." The present system encourages close utilization since the sawmiller is required to pay for all timber measured; the previous one encouraged unnecessary waste both in the forests themselves and in the subsequent milling processes. It is estimated that through this administrative reform the Forest Service has succeeded in conserving some 700,000,000 board feet of timber which would otherwise have been left to rot in the forests or been thrown away in slab heaps. A large part of the indigenous forest officers' work is in the routine administration of the block sale system—i.e., in the careful measurement and appraisal of trees for sale and in the periodic and equally careful inspection of milling operations to ensure that waste is not taking place.

Of equal importance to this policy of "conservation through close utilization" is that of rationing the cut of indigenous timbers so that the remaining supplies, particularly of high quality wood, are spread out over as long a period as possible instead of being liquidated in a very short time. To this end the Forest Service formulates working plans for all major State forests and through them regulates, both by individual forests and by districts, the amount of timber that can be cut annually. So far as may be practicable, consideration is given to the essential timber requirements of a district and to the extent to which these requirements can be met by the substitution of exotic species.

At the same time the possibility of ultimately regenerating podocarp forests and bringing them into a productive state is far from being overlooked. Research into the silvicultural properties of the species and into the ecology of the natural forest associations is being pursued; and in some instances logging of podocarp forests is being carried out by the Forest Service, with a view, among other things, to the reservation of seed-bearing trees. Logged areas are protected from fire and grazing, thus encouraging the development of natural second-growth associations which should in time act as a nurse crop for podocarp seedlings.

Parallel to the policy of rationing the cut is that of making long-term log and timber sales. This has the effect of giving stability to sawmilling industries and to the communities dependent upon them. In one or two instances further stability is being sought by the practice of interplanting logged areas to exotic species (mainly Douglas fir and western red cedar), combined where possible with the planting up of adjacent areas of open country. By this means a sustained yield, part exotic part indigenous, can be achieved, and the sawmilling industries and communities can look forward to a life in perpetuity.

The kauri forests, now only remnants of vast forests from which timber was first felled in any quantity in New Zealand, are owned principally by the State. The remaining kauri stands show promise of being amenable to sound forestry management. Bleeding for gum, which damaged many trees in the past, is forbidden. The annual cut is strictly rationed. Wherever kauri is felled a portion of the growing stock in young vigorous trees is left as a reserve. Young pole stands are silviculturally treated to free them from competition and enhance growth. Natural regeneration is assisted and encouraged, and planting extends the species on to lands which have not held kauri for generations. A small but regular cut of this valuable species is assured, and forests for the future are being established and cultivated.

The prospects of perpetuating and improving the beech forests of New Zealand are very good. Both the major species, red beech and silver beech, when given the right conditions will regenerate freely; both grow sufficiently rapidly to be worked on a medium length rotation (100 to 130 years); and both show their optimum development on sites that are unsuitable for agriculture. There are large tracts of virgin forest still intact, and, in the case of red beech, extensive areas of young pole forest which have originated as a result of fire, windthrow, or mining activities. All the conditions, therefore, are favourable for sustained yield management. The only major difficulty is in localities where red deer are present in large numbers. Under these conditions the beech seedlings are continuously grazed and the development of regeneration is effectively prohibited. Work in the intensive management of the beech forests has been commenced in selected areas. In the case of virgin forests it consists of preparing the ground for the reception of seed; marking seed trees for retention; erecting deer-proof fences; felling and utilizing of merchantable trees; and, finally, felling of remaining trees and shrubs other than the seed bearers. Simultaneously thinning operations are taking place in areas of natural regeneration and in the already established pole stands. On a more extensive scale the regeneration and improvement of the forests is being sought by the reservation of seed bearers and by the imposing of diameter limit restrictions which prohibit the felling of young vigorous trees.

As a result of these measures it is confidently expected that future generations of New Zealanders will become heir to beech forests as healthy and productive as any of the best hardwood forests in the Old World.

Recreational Aspects of Forestry.—As the population increases and as the cleared land becomes more firmly occupied by agricultural interests, so does the call on the recreational resources of the forests become greater. Week-end hunters head for the forest to shoot deer and pigs; fishermen frequent the streams; trampers wander through the many tracks; and alpinists climb through the forest to the heights above. The Forest Service caters for this demand in popular forests by establishing regular patrols, clearing and maintaining tracks, making camping sites and fireplaces, and (with the help of tramping and alpine clubs) building and maintaining huts and erecting bridges.

Exotic Forest Management.—The establishment of State exotic forests dates from 1896 when an Afforestation Branch of the Lands Department was formed and forest-tree nurseries were established at Tapanui and Eweburn in the South Island and at Rotorua in the North Island. Planting commenced in 1898, and proceeded at a slow rate until 1922, by which time 47,000 acres had been established. The formation of the New Zealand Forest Service as a separate department of State in the early "twenties" coincided approximately with an "afforestation boom," and in the period 1923-36 no less than 376,000 acres were planted. Since then plantings have again been on a modest scale and over the last few years have averaged only some 5,000 acres a year.

In the earlier years the areas selected for planting were often chosen with little consideration for the suitability of the site for tree growing or for the proximity of the forests to existing and future markets. As a result there have been some partial or complete failures, and the geographical distribution of the forests leaves much to be desired. These faults are now being corrected by the establishment of new forests in timber-hungry districts and by the careful selection of areas where the climate, soil, and topography are all favourable to tree growth.

The original plantations contained a great variety of species, most of the common timber trees of Europe being represented as well as many from America and Australia, particularly North American conifers and Australian eucalypts. In general, except locally and on very good sites, the European hardwoods such as ash, oak, and sycamore were failures; and of the multitude of eucalypts tried, only a few proved suited to New Zealand conditions. The standard European softwood, Scots pine, was a complete failure, as were many of the American pines, firs, and spruces. Norway spruce promised well for some years, but was finally wiped out by insect attack. Austrian pine was planted extensively in the earlier years and developed into very poor stands; much later similar results were obtained from extensive plantings of the scopulorum variety of ponderosa pine, and even worse results from the wide-scale and indiscriminate attempts to establish Californian redwood. The successes, however, were no less numerous than the failures, and before long it became fairly obvious which would be the most suitable and profitable species. Pride of place went to radiata pine, which showed the ability to grow rapidly on a wide range of sites and to produce line stands of timber. It became, and still is, the major exotic conifer of New Zealand. Other major species, planted according to site, are Douglas fir, Corsican pine, and ponderosa pine. Of recent years the "Southern" pines, P. taeda, P. caribaea, and P. palustris have found a place in the more northerly forests. Minor species planted on a restricted scale are larch, lodgepole pine, Pinus strobus, Pinus patula, Cryptomeria japonica, Lawson's cypress, Monterey cypress, and western red cedar. The estimated species distribution is—

SpeciesThousands of Acres
Radiata pine460
Ponderosa pine95
Corsican pine70
Douglas fir50
Others and mixtures250
      Total925

Descriptions of the most important species and of their silvicultural characteristics are given later in this Section.

In spite of the failures, New Zealand now has a large and valuable exotic forest estate. It is estimated that the annual growth in State forests alone is about 65,000,000 cubic feet. This represents approximately 400,000,000 board feet of timber, or about two-thirds of the current total yearly consumption. New Zealand is thus well on the way to being nationally self-sufficient from State forests; with privately-owned forests taken into account the annual increment is sufficient to meet all local requirements and to give a considerable exportable surplus as well. Quantitatively, therefore, the position of exotic forestry in New Zealand is basically very sound; qualitatively the forests leave much to be desired. Their various shortcomings, due largely to past mistakes, now present problems which will tax the ingenuity of the forestry profession to the utmost. Specifically, management of the State exotic forests is rendered difficult and complex by reason of—

  1. The Bad Age-class Distribution: Sixty-five per cent of the total radiata pine area was planted in one ten-year period; a similar proportion will thus mature in a ten-year period, leading to a temporary over-supply of timber with shortages before and after. The position is much the same with the other major species.

  2. The High Proportion of Radiata Pine: Although only 40 per cent of the total area is in radiata pine, the proportion in some individual forests and in some districts is much higher. A greater diversity of species would enable a wider range of forest products to be supplied and would lessen the risk of insect or fungal attack on an epidemic scale.

  3. The Considerable Areas of Low Productivity: The maximum value from the soil is not being obtained in areas which are occupied by poor species such as P. ponderosa var. scopulorum, Austrian pine, some races of lodgepole pine, Australian eucalypts, etc. Their replacement by more valuable species must be undertaken.

  4. The Low Stocking of Many Areas: Two causes are responsible—the practice during the boom afforestation period of planting at a wide initial espacement, and the failure during the same period to plant up gaps in original establishment. The resultant trees are often open grown and branchy, and are producing firewood and pulping material rather than sawlogs.

  5. Lack of Tending: Large areas have received little silvicultural treatment since planting. Low pruning has been carried out on an extensive scale, but thinning, which is essential to the health and well-being of the stands, has been badly neglected. As a result many forests are stagnating, and are failing to put maximum increment on the best final-crop trees. High pruning, which in a short rotation species is necessary for the production of clean timber and veneer logs, has also been carried out on a small scale only.

For these reasons management activities in State exotic forests are directed towards getting a better distribution of age classes in the next rotation, which entails felling some stands before they are mature and leaving others to be carried on to over-maturity; towards converting areas of low productivity to well-stocked stands of more valuable species; and above all towards catching up with arrears of thinning. At the same time all these activities must be integrated with utilization projects so that the demand for forest products can be met and forest industries can have continuity of supply; and they must be so planned as to fit in to long-term schemes for sustained yield operation. Working plans, which when approved have Ministerial authority, are prepared for all exotic forests. They not only prescribe detailed planting, thinning, pruning, and felling operations for the next five years, but also embody long-term plans of twenty to thirty years or even longer.

Large-scale clear-felling activities in State exotic forests began in 1939, and have been confined almost entirely to radiata pine. In most cases natural regeneration has followed logging, and second rotation crops are now well established. In order to grow high-quality timber, to get the maximum production from the soil, and to lessen the chances of insect or fungal attack, these dense young stands must be thinned early and often. This work is given a high priority.

Production from State exotic forests is now over 14,000,000 cubic feet annually and is increasing rapidly. Sawlogs account for the greater part of this yield, but many other types of forest produce are included, notably pulpwood, posts, poles, mining timber, fencing materials, and firewood. This diversity of produce permits the utilization of trees of widely varying dimensions, a very necessary condition in operations designed to improve the quality of maturing timber stands. In particular the growing sales of small logs to the Tasman Pulp and Paper Company for the production of chemical and ground wood pulp permits the clearing of much produce previously wasted as unsaleable.

FIRE PROTECTION.—The fire-protection policy of the Forest Service follows from the premise that fire is the greatest single menace to forests and protection vegetation in New Zealand; within a few hours fire can undo the work of decades in building up a soil and vegetation balance.

The fire risk in New Zealand cannot be measured by comparing the generally adequate and well-distributed rainfall experienced in most districts with conditions in countries where droughts are frequent and severe and the summers normally hotter and drier. New Zealand is a mountainous country, and the characteristic high winds and strong sunshine will dry out the forest vegetation on exposed situations even in the heavy rainfall areas in a remarkably short time.

Although widespread dangerous fire conditions occur only infrequently there are few seasons during which there are not dry spells or near droughts in some part or other of the country, and very high fire hazards develop. The year 1946 brought the great fires of the central plateau of the North Island, and in 1949 conditions were severe enough in the Auckland Provincial District to cause mortality from drought in a number of native forest species. During 1950 there were numerous forest fires on the West Coast of the South Island, and there was a long continued dry spell in the summer-rainfall districts of the extreme south. In 1955 a serious fire occurred in late spring in an exotic forest in Canterbury.

The peculiar feature of many New Zealand forest species in being extremely exacting in their requirements for regeneration to take place is of special significance. Forest fires in most countries mean the loss of a crop; in New Zealand a severely burnt forest usually means a destroyed forest. Even the beech species, which will regenerate freely under favourable conditions, can only do so after a severe fire under circumstances which are often quite fortuitous in character. Virgin mixed temperate forests admittedly do not burn readily during normal seasons, but the greater proportion of the remaining forests of this type have been logged for the commercial species. As cut-over forests they are very inflammable, and when burnt become waste lands.

The consequences of the relatively small fires which occur all over the country every normal season are as serious in the long run as the spectacularly large fires common in some countries. The losses are cumulative because most of our forest species lack the powers to recuperate from fire damage.

The existing areas of protection vegetation on the headwaters of the main rivers are inadequate for the purposes of soil and water conservation. Unless these protective areas are themselves protected and allowed to extend, abnormal flooding with costly river-control schemes will continue to be a heavy drain on the resources of the country.

The history of statutory provisions for the protection of forests from fire is a long one going back to 1874, but it was not until the Forests Act 1921 established the present Forest Service that the protection of State forests was put on a satisfactory basis. This Act provided for the constitution of fire districts, and also for the protection of forests which, because of administrative difficulties, could not be protected by fire districts. The principle of fire districts was later extended to cover private forests and other lands.

This situation was satisfactory as far as it went, but it left large areas of inflammable vegetation over which there was no authority for controlling the lighting of fires during dangerous weather. The need for legislation to deal with fire control on a national scale was realized, but it was not until the disastrous fires of 1946 that there was public support for such legislation. The Forest and Rural Fires Act was passed in 1947. This Act was amended and consolidated in 1955 to include the fire provisions of the Forests Act 1949, the National Parks Act 1952, and the Land Act 1948, thus bringing fire protection of unalienated lands of the Crown under one Act.

The Forest and Rural Fires Act provides for land on which high fire hazards occur annually to be covered by Rural Fire Districts administered by Committees or by the Minister of Forests. The rest of the country, with the exception of certain areas, is placed under the control of County Councils as the Fire Authorities, with powers to declare an emergency during periods of high fire hazard. In effect there is now no area of rural land for which there is not some Authority for the control and prevention of fire.

The fire protection organization of the Forest Service operates over the whole of New Zealand, covering State forests, forests on other Crown lands, scenic reserves, and national parks. The organization has also the responsibility of securing co-ordination and uniformity in the administration of the Forests and Rural Fires Act by other Fire Authorities.

An efficient fire-fighting service is maintained wherever the Department has fire-fighting responsibilities, according to the needs of each district. This reaches its highest level of organization in the larger exotic forests where standard Forest Service lookout cabins equipped with fire finders, radio, and telephones are located. Trained fire-fighting crews with modern equipment can be brought into action at a minute's notice and controlled through a radio network. Aerial patrols operate during each fire season in the important Rotorua area.

The provision of a fire-hazard prediction and warning service is an essential function of the fire protection organization. A nation-wide network of fire-weather and radio stations is maintained, and the fire-hazard situation in any part of the country is known at the Head Office of the Forest Service in Wellington each day during the fire season (October to April) within an hour of the weather observations being taken at the stations. This enables appropriate action, such as advice to Fire Authorities and broadcasting of warnings, to be taken.

SOIL CONSERVATION.—Through its ownership and control of some 6,000,000 acres of protection forest the Forest Service is deeply involved in the vital national question of conserving soil and water resources. Ever since its inception the Forest Service has insisted that maintenance of an adequate forest cover is the only means of preventing accelerated soil erosion and one of the main means of regulating stream flow. Engineering work in the lower reaches of rivers is essential to reclaim swamps and to prevent flooding of alluvial flats, but these must be protected by adequate measures in the headwaters and catchments of rivers. Soil erosion, which both denudes the catchments and aggrades the rivers, can only be prevented by a continuous cover of vegetation.

In the light of these convictions the policy of the Forest Service in soil-conservation measures is clear cut. It is simply to initiate or encourage any action which would conserve or improve the existing cover, and conversely to prevent or discourage any action which would have the reverse effect. This policy dictates the management activities of all State forests where soil erosion is an important consideration; it is advocated by the Forest Service as the correct policy for all types of eroded land, irrespective of land tenure.

The forest management activities undertaken in protection forests are: protection from fire; prohibition and control of grazing; limitation of sawmilling activities; reservation of secondary species in some logging operations; extermination of animal pests; and, in some cases, artificial re-establishment. Of these, the most important are fire prevention and suppression (discussed earlier) and the control of introduced animal pests. The latter work is undertaken by the Noxious Animals Division of the Forest Service.

Forest-protection work is coordinated through the Department's representation on the Soil Conservation Council and on the thirteen Catchment Boards now operating throughout the country; through the secondment of a professional forest officer to the staff of the Soil Conservation Council; and through the activities of the local land-use committees (representing the Departments of Agriculture and Lands and Survey and the Forest Service) which recommend the optimum land-use policy for marginal or doubtful areas.

PUBLIC AND PRIVATE FORESTRY.—The method first adopted in New Zealand for encouraging the planting of trees for the production of timber was by means of "land grants"—a settler being given a free grant of land if he planted a certain portion of his land with suitable trees. Several large plantations were established in Canterbury by this method, which, however, was abandoned in the "eighties."

For some years prior to 1931 the Forest Service raised and sold trees to intending planters and further assisted with advice from officers specializing in this branch of forestry activity. In 1931, at the request of the Horticultural Trades Association, the State ceased the sale of trees, and the work of the extension officers became incidental to the other duties of the general staff.

Private Forest Estate.—The area of planted forest owned by afforestation companies, local authorities, and private persons was reported in March 1950 to be 435,600 acres. Plantings since then are unlikely to have more than kept pace with the acres felled for utilization.

Private and local authority ownership is estimated to account for about 100,000 acres of the above, and it is composed mainly of radiata pine with a proportion of longer rotation species. Many of the original plantings have been milled and some are in process of regeneration. Because most of the areas had received little or no care since establishment, the produce has been very knotty, but owing to its greater age (and consequent high heartwood content) it has been extensively used.

Afforestation companies boomed in the 1923-30 period, when huge areas were planted—they are now estimated to cover approximately 335,000 acres. The species used was almost wholly radiata pine. Utilization was begun some years ago in an endeavour to bring this short-period establishment into a normal series of age gradations, and the cut-over is already being regenerated.

Forest Taxation.—Taxation of forest land and forest income has been under critical review during recent years, and was the concern of a special Committee of Inquiry. Several much needed reforms have been introduced; they were made necessary by the need to change a tax system based largely on the habit of "devastation cutting" to one which recognized the importance of forest management.

Land tax is levied on the unimproved value and does not include the value of trees growing on the land. However, valuations for death-duty purposes do include the value of growing trees.

Income from the sale of trees is taxable in the same way as other income with the following exceptions:

  1. Intermittent income from the sale of farm woodlots may be spread over a period of five years in order to mitigate the effects of the higher graduated tax.

  2. Expenditure incurred by a farmer in planting and maintaining shelterbelts and woodlots may be offset against income for tax purposes.

RECLAMATION OF SAND DUNES.—Sand-dune fixation which, since 1931, had been in the hands of the Ministry of Works has been transferred to the joint control of the Department of Lands and Survey and the New Zealand Forest Service. The primary objective is the reclamation of land for agricultural and pastoral purposes. Trees are being established by the Forest Service on the protective zone and on such other dunes as have no agricultural or pastoral potential; and existing plantations are being thinned. Some useful forests will result. Sand-dune-reclamation schemes may ultimately embrace a large part of the 290,000 acres of dunes in New Zealand.

FINANCE OF STATE ACTIVITIES.—The financial objective of the New Zealand Forest Service is to develop sufficient forests which will be free of debt when the production of mature timber commences, and which will then be managed as revenue producing units for the benefit of general Government funds. None of the State exotic forests has yet fully reached this stage, and forest revenue is therefore insufficient to meet the costs of development. The excess expenditure is met from general Government funds and, as far as possible, from current revenue (i.e., taxation, etc.), but the amount involved has been such that loan moneys from the Public Works Account have also been required.

Expenditure by way of general administration of forestry as distinct from the development of State forests for subsequent management is, of course, met in full from the Consolidated Fund.

The excess of expenditure over forest revenue in connection with forest and allied development has been financed as follows during the last five years.

£

Year Ended 31 MarchExcess of Expenditure Over Forest RevenueExcess Financed from—
LoansConsolidated Fund
19521,325,000983,000342,000
19531,500,000685,000815,000
19541,431,000800,000631,000
19551,510,000723,000787,000
19562,014,0001,156,000858,000

The following table provides a summary of receipts and payments from all sources for the last five financial years.

£

Item1951-521952-531953-541954-551955-56
Receipts
Indigenous forests receipts—
  Timber sales267,519236,769226,629292,881360,081
  Timber royalties and trespass56,43357,41844,44749,38165,290
  Leases, grazing3,9652,3083,1302,8452,193
  Sawmill sites, industrial, etc.4063696531,1141,168
  Miscellaneous30,43928,35515,21513,8937,950
Log sales from managed forests197,765197,886189,340190,870202,203
Exotic forests: Poles, posts, firewood, log sales, etc.346,850480,362528,098686,163727,032
Utilization projects—
  Sawn timber797,920754,889839,7571,031,853894,757
  Creosoted products98,632132,281152,201237,216265,869
  Box shooks237,398212,837142,763154,333201,384
  Miscellaneous19,22722,4707,97113,07125,537
Miscellaneous credits48,47737,78347,77548,97643,616
      Totals2,105,0312,163,7272,197,9792,722,5962,797,080
Payments
Allocation of revenue—
  Local authorities45,53755,49051,71855,00161,198
General management charges—
  Salaries476,022535,717610,495686,018749,396
  General expenses154,790192,269227,814239,052252,714
Land purchase68,35242,24328,01713,82221,832
Forestry projects under direct management—
  Exotic1,321,1841,284,2541,280,9501,166,1731,292,340
  Indigenous213,494265,683239,902209,787223,391
Utilization: Sawmill, creosote plant, etc.1,062,5981,287,0051,152,5921,342,2961,360,831
Pulp and papermaking investigations66,5561,36137,607519,410849,102
      Totals3,408,5333,664,0223,629,0954,231,5594,810,804

The revenue from indigenous forests is used to reduce loan moneys required to finance forest activities under the Public Works Account, and statutory allocations of receipts to local authorities are a charge on the Consolidated Fund.

FOREST UTILIZATION: Production of Sawn Timber.—Sawn timber is produced from two entirely distinct but nevertheless complementary resources—the indigenous forests and the exotic forests. From the days of the first European settlement the indigenous forests have been subjected to destructive cutting, and, because of the long cycle of reproduction, must from a commercial viewpoint be regarded as largely a wasting asset. Consequently, as far as the indigenous forest is concerned, the sawmilling industry has had to follow a constantly receding forest edge—with the inevitable result that the industry has never been able to achieve any real measure of stability. Thus the production of indigenous timber has been based traditionally on rather primitive mills with poor living conditions for the workers; the forest could not be worked on a continuous cycle that would permit a sawmill to operate successfully on a permanent basis, hence there was no incentive to undertake more than the minimum of capital expenditure.

Up to about twenty-five years ago almost the whole output of sawn timber was produced in this way. The usual sawing equipment was a circular breaking-down saw for ditching the logs and a breast-bench circular resaw. The characteristics of the product may be summed up by saying that although the quality of the timber itself was probably equal to any in the world the sawing was inaccurate. The mills in general had a low cutting-capacity and the annual sawn output per mill seldom exceeded 2,000,000 board feet. Up to the Second World War the total yearly production of sawn timber in normal years fluctuated around the level of 300,000,000 board feet.

In the "thirties" significant changes began to develop. On the one hand the easy abundance of indigenous timber had gone, while on the other hand certain forests of exotic species which had been established about the beginning of the century had reached an age when cutting could commence. These exotic forests had been planted in conifers from the northern hemisphere to offset the depiction of the indigenous forests. They put on rapid growth in New Zealand, and the primary and original aim has been the management of these forests for sustained yield on the basis of permanent forest industries and modern communities with a normal range of amenities. In 1930 the production of exotic species was only 10,000,000 board feet, but by 1939 it had risen to 42,000,000 board feet. However, almost all of this production came from farm shelter belts and woodlots and was sawn in the same type of primitive mill as that characteristic of the indigenous forest. The product was used almost entirely for rough temporary work and boxmaking as there was still ample indigenous timber for all more demanding needs.

At the end of the "thirties" the first great step was taken to change sawmilling from a primitive, shiftless industry to a stable industry based on permanent, well constructed capital installations with modern equipment and good living and working conditions. The Forest Service established a modern sawmill of Swedish design at Waipa, near Rotorua. This mill has high-speed gang frames with an annual cutting capacity of more than 20,000,000 board feet. The Service subsequently established another mill of this type at Conical Hill, near Tapanui (Southland). These mills were designed to serve as demonstration units and to enable the Forest Service to pioneer sawing, seasoning, grading, and merchandising techniques for the logs and timber yielded by the exotic forests. While such mills involve a large capital investment, they are permanent, have a high output with low unit costs, and yield accurately sawn timber. Mills similar in type have been constructed since the Second World War by private enterprise, and the Waipa and Conical Hill mills also served as prototypes for the huge sawmill erected for the Murupara scheme.

The production of exotic timber is increasing rapidly, and it is gradually finding acceptance for general building purposes and a wide range of other uses. By far the most important of the exotic timber species is radiata pine, which accounts for about 95 per cent of the total cut of exotics; larch, eucalypts, Douglas fir, and a few other species are produced only on a minor scale. Only 55 per cent of the country's timber requirements now comes from the indigenous forests, and this proportion must inevitably fall as cutting is gradually reduced to the point where a small sustained yield of indigenous timber can be maintained. In connection with even the indigenous forests, however, it should be noted that the policy of the Forest Service wherever possible is to arrange sales on such a basis as to give mills an operating life long enough to warrant the installation of modern plants, and the provision of a good standard of housing and amenities.

Logging methods, too, have been changing from the traditional use of steam haulers and bush tramways, linking bush with mill, to tractor logging and motor-truck haulage of logs. The latter method permits the working of scattered and lightly-stocked stands of indigenous timber. Roads, too, are an essential feature of exotic forests for fire protection and forest management as well as for log haulage, and tractors are favoured for their dual role of roading and extraction.

The table below gives the production of rough-sawn timber by softwoods and hardwoods, and further classified by indigenous and exotic, from 1921 onwards.

Board Feet (Million)

Year Ended 31 MarchSoftwoodsHardwoodsGrand Total
IndigenousExoticTotalIndigenousExoticTotal

NOTE.—Quantities have been rounded to the nearest million board feet. In some cases this rounding off results in a total disagreeing slightly with the total individual items shown in the table.

192129010300718308
192229711308617315
19232908297617304
192430273098 8317
19253288335819344
1926335734210111353
192728972969110306
19282538260919269
1929250925911 11270
19302611027111 12283
1931208132219 9230
1932134131486 6154
1933145151597 7166
1934168211908 8198
1935207272359 9244
19362493428310 10293
19372633229610 10306
19382763731310 10323
1939265423079 10317
19402794732610 10336
19412775433111 12343
19422565631311112325
19432596732613215341
19442478333116420351
19452358632017320340
19462269732319322345
194721911233120223354
194826113839929332431
194928016144127330471
195029515244729332478
195130119049232436528
195230223353437441575
195330422953337340573
195428924353237341572
195528528957439442616
195627530558043346626

The following table gives details of timber production by species for the past five years; quantities are quoted in board feet (i.e., units of 12 inches by 12 inches by 1 inch).

Board Feet (000)

SpeciesYear Ended 31 March
19521953195419551956
Rimu and Miro225,407231,564219,234211,020207,613
Matai36,86435,63836,53437,72835,008
Totara17,40214,15914,80214,72712,356
Kahikatea20,04220,64216,27819,00718,295
Beeches17,97217,89216,88118,69020,433
Tawa15,51315,10716,37516,52218,372
Kauri1,6301,4621,2591,496936
Other indigenous4,2844,0644,7634,4134,556
      Totals, indigenous339,114340,528326,126323,603317,569
Exotic pines224,452222,340235,217281,498297,182
Larch3,7982,4472,1261,1381,557
Eucalypts2,8642,5452,9103,1472,939
Douglas fir2,3512,7283,6124,0103,788
Macrocarpa1,9541,9161,8462,0212,224
Other exotic710481410622530
      Totals, exotic236,129232,457246,121292,436308,220
      Totals (all species)575,243572,985572,247616,039625,789

Details of the 5,086,000 board feet of "other" timber for the year ended 31 March 1956 are as follows.

SpeciesBoard FeetSpeciesBoard Feet
Hinau744,000Puriri418,000
Rewarewa710,000Poplar408,000
Tanekaha637,000Rata236,000
Taraire591,000Other382,000
Pukatea494,000 
Mangeao466,000      Total5,086,000

The Pulp and Paper Industry.—The pulp and paper industry in New Zealand has now completed the first stage in the utilization of the big exotic forests on the volcanic plateau of the North Island. The industry consists of five plants, three of which are integrated with sawmilling. The integrated plants are using radiata pine logs from their own or from State exotic forests for pulping operations. There is no pulping of indigenous species.

The main products of the industry are mechanical and chemical woodpulp, newsprint, kraft paper, tissue and light paper, paper board, and building and insulating board.

The following table gives production figures for the past five years.

Tons

Year Ended 31 MarchMechanical PulpChemical PulpNewsprintOther PaperPaper BoardFibre Board

NOTE.—Mechanical pulp includes groundwood pulp and defibrated pulp.

195224,947  6,67316,58417,965
195326,685  6,89516,41618,666
195427,0027,413 11,64515,72919,323
195529,56843,204 22,49417,77920,591
195637,99461,3959,00028,15420,22521,340

The Murupara Scheme.—Following a visit to New Zealand in 1925 by an overseas pulp and paper expert and successful tests in 1928 to prove the suitability of New Zealand's exotic softwoods for pulp and paper production, the Kaingaroa State Forest was extended to its present size of 284,000 acres. To guard against the vulnerability of a single species to insect and fungal attack, a diversity of species was planted, and the part included in the Murupara Working Circle contains approximately 100,000 acres of radiata pine and areas of several other species totalling a further 100,000 acres.

In 1949 further successful tests were carried out on a commercial scale to prove that resin and other problems associated with making newsprint from radiata pine could be overcome under operating conditions. Favourable reports were also submitted by overseas consultants on the feasibility of the proposal to establish an integrated sawmill and pulp and paper mill to convert the timber from the Murupara Working Circle.

In June 1951 the Government issued a world-wide invitation to organizations commanding adequate technical and financial resources to establish an integrated sawmill and pulp and paper mill for the conversion of an annual log supply of 23,000,000 cubic feet offered from the Kaingaroa State Forest.

The only offer was from the Tasman Group. A committee set up by the Government to examine this offer recommended its acceptance, and the Tasman Pulp and Paper Co., Ltd., was formally registered in July 1952 with a provisional directorate of three Tasman Group directors and three Government directors. In 1954 Albert E. Reed and Company Ltd. and the Commonwealth Development Finance Company Ltd., of London, took up a substantial interest in the company, and in 1955 new articles of association were adopted. The permanent board now consists of ten directors, three being appointed by the Crown, two by the Tasman Group, two by Albert E. Reed and Company Ltd., and the Commonwealth Development Finance Company Ltd., and two by ordinary share holders.

After two years of construction the pulpmill and newsprint mill came into production in late 1955 and the sawmill commenced operations early in 1956. The plant is located at Kawerau in the Bay of Plenty and has an annual output available for sale of 75,000 tons of newsprint, 36,000 tons of kraft pulp, and, on a one-shift basis, 36,000,000 board feet of sawn timber.

A thirty-eight mile rail link between the mill and the forest and the final rail-head at Murupara has been constructed. The mill-site is also linked by rail with the east coast main trunk line at Awakaponga, nine miles distant; and the new port at Mount Maunganui is joined to the same trunk line by a four-mile length from Te Maunga. There is a new 1,230 foot wharf at Mount Maunganui and full port facilities to serve the entire Bay of Plenty, Rotorua, and Putaruru area,

Test borings for geothermal steam to a depth of 1,400 feet at Kawerau have produced steam in sufficient quantity for use in dry kilns and other processes.

Two new towns have been built: the first for mill employees at Kawerau, the second at Murupara for accommodation of logging gangs. Single-men's accommodation is also provided at both towns.

The Kaingaroa Logging Co., Ltd., registered in July 1954, and with headquarters established at Murupara, handles the log supply for the Tasman Pulp and Paper Co., Ltd. Its directorate represents both Government and Tasman interests. The first train-load of logs from the forest was delivered to the mill at Kawerau on 4 April 1955.

The Kinleith Project.—The integrated pulp mill, kraft-paper mill, and sawmill of New Zealand Forest Products, Ltd., is located at Kinleith (near Tokoroa).

This great enterprise, backed by 176,000 acres of radiata pine forests, now has an annual capacity of 25,000 tons of kraft paper, 50,000 tons of kraft pulp, and 60,000,000 board feet of sawn timber. At other plants the company manufactures insulating and hard-board, multi-wall paper bags, solid board containers, wooden cases, and veneer for plywood. The company has built a town at Tokoroa, four miles from Kinleith, for its 1,500 employees and their families. Additional equipment now being installed at Kinleith will increase the output rate from 50,000 to 65,000 tons of sulphate pulp per annum.

Other Developments.—The Whakatane Board Mills Ltd. have commenced operating their second paperboard machine, which will enable the company to increase its annual production to 32,000 tens. A new plant for producing semi-chemical pulp has been installed which, together with the production of mechanical pulp, will make this company self-sufficient for more than 90 per cent of its raw materials.

The company owns its own radiata pine forest at Matahina and hauls the logs twenty-three miles to the mill over its private railway line. An associated company, Whakatane Timber Mills, Ltd., has its modern sawmill located near the board mill to take the larger logs from the forest.

Caxton Paper Mills, Ltd., registered with a capital of £300,000, owns a mill making tissue and various lightweight papers adjacent to the Tasman Pulp and Paper Company's plant at Kawerau. The mill has a production of between seven and eight thousand tons annually. It draws pulp, water and steam supplies from the Tasman company.

Plywood and Veneer Manufacture.—Five factories are engaged in the manufacture of plywood, and the total output for the year ended 31 March 1956, when reduced to a uniform basis of 3/16 in. thickness, was 35,660,000 square feet. Three other plants produce veneer only.

For the most part logs from the indigenous forests form the basis of the plywood and veneer industry, though the peeling of exotic species, particularly radiata pine, shows a good deal of promise and is increasing steadily in importance. Now that the indigenous forests have become depleted, the production of peeler logs for veneer and plywood manufacture is regarded by the Forest Service as having a first claim on the State forests; hence in its own logging activities the Forest Service aims at producing the maximum amount of peeler logs, and has recently also adopted a policy of requiring sawmillers purchasing State indigenous forest to reserve logs suitable for peeling and divert them to the veneer factories.

PLYWOODAND VENEER

(a) Production

Year Ended 31 MarchPlywood (3/16 in.)Veneer (1/16 in.)
Thousand Square FeetValueThousand Square FeetValue

NOTE.—Quantities are shown on a common thickness basis.

  £ £
195232,853804,41625,28489,419
195330,815778,57519,12182,958
195430,868849,51320,13992,999
195532,699908,71427,060114,868
195635,6601,003,24140,438205,735

(b) Species and Volume of Logs Used

(Volume in thousand cubic feet)

Year Ended 31 MarchSpeciesTotalValue £
RimuMataiKahikateaRadiata PineOther
1952901158179134511,423258,514
1953843146127180551,351275,660
1954847156138175211,337285,963
1955879171108163101,331293,276
1956856107167341331,504328,951

Other Round and Split Products.—Considerable quantities of native timbers have been required in the past to meet the needs for mining, fencing timbers, firewood, and a proportion of sleeper, pole, and bridge timber requirements. Thinnings and small diameter logs from exotic forests should now make useful contributions towards satisfying those needs, and justify the operation of commercial-sized preservative treating plants.

Wood Preservation.—Apart from plants treating round produce, for ground contact use, with creosote and oil-soluble preservatives, the more recent establishment of plants for treatment of sawn timber with water-soluble preservatives has permitted far greater use in buildings of the nondurable grades and species from both indigenous and exotic forests.

On a per capita basis New Zealand is now by far the world's largest producer of preservative treated timber for building purposes. Published statistics for 1955 give the quantity of preservative treated timber produced per capita as 41 board feet. In the United States of America, the second largest producer, the corresponding figure is 1 board foot. House construction has traditionally been based on the use of heartwood of the indigenous softwoods, having excellent durability, strength, and stability. Where sapwood of these timbers was used extensively, insect borers have been troublesome. Peculiar emphasis on the significance of borer attack led to the progressive adoption of preservative treatment of such wood, as its use became more universal due to the depiction of indigenous resources. The further diminution in supply of both heart and sapwood indigenous softwoods has in turn stimulated the use of exotic conifers for which preservative treatment against both decay and insect attack is justifiable and technically easy.

Much controversy has arisen regarding the effectiveness of various preservatives and types of treatment and the extent to which treated timbers should be used in a building. This controversy has retarded development in new methods of timber preservation and in order to resolve the conflicting opinions, the Government in September 1955 issued the Timber Preservation Regulations under which was set up the Timber Preservation Authority. The main functions of this Authority are to decide what shall be authorized preservative treatments and to establish and administer such inspectoral and advisory service as is necessary, to ensure that treatments are in accordance with its authorizations. Eleven organizations, including five Government Departments, are represented on the Authority and the inspection is done on behalf of the Authority by the New Zealand Forest Service. The Authority has adjudicated on and approved of a number of specifications and methods for timber preservation which were previously the subject of controversy. Further progress in preservation practice, and the use of treated timber will now be accelerated. Treatment of forest thinnings for fence posts, poles, and engineering construction timbers, although carried out on a considerable scale, continues to fall short of demand. Facilities for treating larger quantities of forest produce are being provided.

Collection of statistics on wood preservation was introduced in 1955 and the following tables for sawn timber treated in the year ended 31 March 1956 show the importance of this new industry.

TYPEOF TREATMENT      Thousand board feet

SpeciesOpen TankDiffusion ImpregnationPressure ImpregnationTotal
1955-561954-55
Exotics—
  Exotic pines157049,46650,03835,104
  Other  616117
Indigenous—
  Tawa 6,5046,20212,70610,590
  Rimu 4110,50010,5419,668
  Matai 110,35810,3599,417
  Kahikatea  4,7114,7113,025
  Other20170668858699
      Totals, 1955-56217,28681,96789,274 
      Totals, 1954-55536,98461,484 68,520

PRESSURE IMPREGNATION

SpeciesPreservative UsedTotals
CreosoteMulti-salt Water Borne Preservatives1955-561954-55
Exotics—
  Exotic pines37649,09049,46634,474
  Other 616117
Indigenous—
  Tawa 6,2026,2024,292
  Rimu 10,50010,5009,668
  Matai 10,35810,3589,417
  Kahikatea 4,7114,7113,025
  Other 668668589
      Totals, 1955-5637681,59081,967 
      Totals, 1954-554961,435 61,484

Further to the above, 752,909 cubic feet of round wood, such as poles and fencing materials was treated by the open tank method and by pressure impregnation.

OVERSEAS TRADE.—New Zealand is self-sufficient in limber resources as far as quantity is concerned, but has always found it necessary to import strong, hard, and durable Australian hardwoods for railway sleepers, poles, cross-arms, wharf, bridge, and constructional timbers, etc. In addition there has been a traditional demand for Douglas fir, redwood, and western red cedar from North America for structural uses and exterior joinery. Other imports are normally limited to Japanese oak for the furniture trade and small quantities of other species for specialty purposes.

While exports have fallen to quite low levels in recent years owing to the absence of any real surpluses of indigenous timber there has been a growing trade with Australia in radiata pine. The export potential is approximately 150,000,000 board feet annually, but the attainment of this level is dependent on the large scale development of the exotic forests in the North Island and will develop gradually over the next 10 to 15 years.

Tables giving the details of the external trade in timber since 1946 are given below. The value of imports is the current domestic value in the country of origin plus 10 per cent; the value of exports is free on board at the port of shipment.

TIMBER IMPORTS INTO NEW ZEALAND      Thousand board feet

Calendar Year (1)Sawn TimberSleepers (7)Logs and Poles (8)Total, All Timber (9)
Australian Hardwoods (2)North American Softwoods (3)Oak (4)Other (5)Total (6)
19466,9847,751320714,9456,83620521,986
19472,64916,6264041,48121,1606,3775,18132,718
19485,8698,15873456115,32216,1494,82336,294
19496,8217,2561,79972426,60014,1644,63345,397
19505,9809,5693,5381,47320,5609,3144,00933,883
19514,67213,7822,28196921,7044,5284,29330,525
195214,84420,2182,2182,25739,5375,3119,94454,792
195311,6535,4711,1652,15220,44113,6226,53340,596
19547,40516,1931,9012,67728,1767,1352,56037,871
19558,67821,9643,0344,73338,4097,7664,31350,488

NOTE.—Figures have been adjusted to include items not given in board feet in published statistics. Sleepers and logs and poles in columns 7 and 8 are from Australia; small quantities of logs and poles from other countries are included in column 5.

ANNUAL IMPORTSOF TIMBER INTO NEW ZEALAND: COUNTRIESOF ORIGIN

Calendar YearAustraliaCanadaUnited States of AmericaJapanOther CountriesTotal
Thousand board feet
194614,0695,5262,380 1121,986
194714,23614,7393,628 11532,718
194826,8815,8222,85450023736,294
194925,64713,7933,5401,86854945,397
195019,3368,6369293,5461,43633,883
195113,54712,6369572,47591030,525
195230,15412,8077,4652,3152,05154,792
195331,8455,0694131,2522,01740,596
195417,11111,3384,7432,0062,67337,871
195520,74316,4845,5743,1654,52250,488
£(N.Z.)
1946327,86093,68046,840 1,270469,650
1947359,100549,870126,820 13,4201,049,210
1948712,590243,730106,85019,04019,8001,102,010
1949623,610380,600144,30071,99016,4401,236,940
1950565,340280,05062,320170,80044,6001,123,110
1951510,380532,55060,900192,66040,2301,336,720
19521,508,250696,120399,240189,150121,3702,914,130
19531,520,720204,34032,11084,75088,0201,929,940
3,954774,660479,360186,940157,250130,4101,728,620
19551,017,020729,810271,800308,050205,7402,532,420

TIMBER EXPORTS FROM NEW ZEALAND

Thousand board feet

Calendar Year (1)Indigenous Timber (2)Radiata PineOther Exotics (5)Total Exotics (6)Total. All Sawn Timber (7)
Sawn (3)Cases (4)

NOTE.—Small quantities of roundwood are included in columns 2 and 7.

19464,5891,5352,067 3,6028,191
19473,9134,5771,245 5,8229,735
19488,40313,612836 14,44822,851
19498,76714,6451,7687616,48925,256
19504,3459,1811,366810,55514,900
19511,81215,5484,02611619,69021,502
19522,79810,1213,971 14,09216,890
195332416,1474,173120,32120,645
195410330,9622,211 33,17333,276
195510238,6793,891742,57742,679

ANNUAL EXPORTSOF TIMBER FROM NEW ZEALAND: DESTINATION

Calendar YearAustraliaPacific IslandsOther CountriesTotals
QuantityValueQuantityValueQuantityValueQuantityValue
 Bd. Ft. Bd. Ft. Bd. Ft. Bd. Ft. 
(000)£(N.Z.)(000)£(N.Z.)(000)£(N.Z.)(000)£(N.Z.)
19467,019136,8101,00125,7701713,6608,191166,240
19478,182149,7201,37644,7401775,1709,735199,630
194821,887483,73085725,5701073,76022,851513,060
194924,222537,20068919,0803454,84025,256561,120
195013,980340,02087630,870441,84014,900372,730
195120,22.5685,8701,17545,3601022,71021,502733,940
195216,098565,89068429,5701084,32016,890599,780
195317,309487,4102,817131,29051919,58020,645638,280
195430,911793,6301,93092,57043516,80033,276903,000
195539,5121,094,2503,157165,6101042042,6791,260,280

Total production of the pulp and paper industry will meet New Zealand's requirements almost fully, reduce imports of these products, and leave a considerable surplus for export for some of the major products such as newsprint and sulphate pulp.

The following tables give New Zealand's external trade in pulp and paper for the past five years.

EXTERNAL TRADEOF NEW ZEALANDIN PULPAND PAPER

Imports

Calendar YearChemical PulpNewsprintOther Printing and WritingGreaseproofWrappingPaper BoardFibre Board

* In thousand square feet.

NOTE.—Basis for valuation: current domestic value in country of origin.

Tons
19513,39234,42115,7741,7562,86414,0566,871*
19529,45441,18620,6553,9328,44417,12914,798*
19539,41231,4985,7331,4614,0197,1801,534*
19545,34337,8969,7012,0781,0516,9582,136*
19555,06246,28015,3423,3795,6568,2649,546*
£
1951385,7061,499,7022,199,846246,721281,1641,149,699178,315
1952906,5582,109,7733,406,211658,006876,2681,527,711320,594
1953301,9821,608,539709,164200,535354,424453,08795,937
1954241,1141,923,8721,142,016256,492133,009573,586162,550
1955237,6642,502,6171,848,064424,305469,133601,509224,859

Exports

Calendar YearChemical PulpNewsprintOther PaperPaper BoardFibre Board

* In thousand square feet.

NOTE.—Basis for valuation: free on board at port of shipment.

Tons
1951  2372,873*
1952  2183,330*
19534,327 14533,808*
195419,583 51381,359*
195527,34136092951,666*
£
1951  2,91661258,659
1952  3,9821,85469,654
1953176,682 13,60136562,978
1954816,665 7,5003,66231,462
19551,130,56621,2991,31621,07929,118

RESEARCH.—All forestry and forest products research administered by the Forest Service has since 1947 been co-ordinated or undertaken by the Forest Research Institute, Rotorua.

The complexity of the many indigenous and exotic forest problems necessitates the maintenance of an organization such as this, working on the principle of continuity in a co-ordinated programme of investigations.

While the onus is on the Forest Service as the national forest authority to bear the major share of forestry and forest products research, the Department of Scientific and Industrial Research, the University of New Zealand, and private industrial organizations also undertake both applied and pure research in certain aspects of forestry and forest products.

The scope of the research that is being undertaken may be summarized as follows:

Silviculture.—(a) Intensive study of the ecology of beech, kauri, and podocarp forests leading to the development of systems of silviculture which will provide the basis of sustained yield management.

  1. Establishment of a series of permanent sample plots in commercial exotic forests to study the response to various grades of thinning and to obtain data on growth and yield throughout the rotation.

  2. Research on quality and origin of seed in conjunction with tree type improvement based on genetical principles, involving vegetative propagation of desirable parent stock. Forest soils investigations (in collaboration with the Department of Scientific and Industrial Research), with particular reference to the long-term changes in pumice soils, and to the effect of chemical treatments on soils associated with poor tree growth.

  3. Development of national arboreta in geographically representative localities, and a central herbarium of forest vegetation.

Mensuration.—The compilation of volume tables for both standing forests and logs, in respect of both indigenous and exotic species. Yield tables for exotic species; increment studies; research on timber conversion factors and logscaling; and form-class investigations applicable to chief exotic conifers.

Forest Pathology.—The investigation of all organisms and factors harmful to the growth of forests, embracing both entomology (including a New Zealand wide biology survey and the biological control of insect parasites) and mycology, with particular reference to the fungi affecting radiata pine and beech forests.

National Forest Survey.—This subject is treated in detail on page 558.

Forest Products.—Current research is centred upon evaluation of the inherent properties of those timbers, both indigenous and exotic, which must gradually replace the widely-used indigenous softwoods and imported timbers and forest products. In parallel with the basic studies are those relating to establishment of grading rules, to air-seasoning and kiln-drying, wood preservation, and wood use generally. As the direct result of such research, a number of Codes of Practice and Standard Specifications are being evolved to meet the needs of industry, while the more fundamental aspects are discussed in Forest Service publications and research notes. Some results of specialized work on wood chemistry, paint, and wood preservatives by the Department of Scientific and Industrial Research, and on aspects of utilization of exotic forest timbers by non-Government organizations, are also becoming available. Meanwhile the earlier research work by the Forest Service on the indigenous softwoods indicates the ways in which the dwindling resources may be used most intelligently and economically.

PRINCIPAL FOREST TREES.—A brief description of the chief forest trees with their distribution and the uses of their timber is now given.

Hardwoods.—SILVER BEECH (Nothofagus menziesii): This species is widely distributed throughout both the North and South Islands, particularly in cold, wet, mountainous country, but it is also capable of occupying a very wide range of sites and soils from swamps to dry talus slopes, and from sea level to the timber limits at 4,000 ft. It frequently occurs in admixture with podocarps or with the other beech species but forms pure stands in high altitude forests and in the lowlands of western Southland. In this latter locality it attains its optimum development. In form it is an exceedingly plastic species varying, according to site, from a low branchy shrub to a tall massive tree, total height 80 to 90 ft., branch-free bole to 60 ft. (average 36 ft.), breast height diameter to 72 in. (average for commercial forest 24 to 36 in.). In virgin lowland forest the older trees, circa 350 years, are normally heavily defective. Such stands may carry up to 25,000 board feet per acre, averaging less than 10,000 board feet, but, under management, production of 50,000 board feet per acre on a 120-year rotation is anticipated. In general form and in its silvicultural characteristics under management, silver beech might best be compared with European sessile oak.

The Southland timber (averaging 34 lb. per cubic foot air-dry) is of a pinkish colour when first cut, changing to a light brown with exposure. It is straight in the grain, easily worked, and strong, but not durable in contact with the ground. The principal uses are flooring, interior finish, furniture, bentwood work, agricultural implements, bodies of motor cars, billiard tables, tool handles, dowels, rifle stocks, shoe heels, casks, barrels, cheese crates, and packing cases. The denser silver beech from districts other than Southland air-seasons slowly but satisfactorily under cover, and is suitable for most of the less critical uses where the heavier weight (46 lb.) is not disadvantageous.

MOUNTAIN BEECH (N. cliffortioides): This is the characteristic tree of the drier inland and eastern mountain ranges, though it occurs also on a wide range of sites down to, and including, acidic bog soils and spray-swept coastal cliffs. At high altitudes and in the bogs it is a small stunted tree or twisted shrub, but on favourable lowland sites, particularly in western Southland, it attains a maximum height of 80 ft. with up to 60 ft. of clean evenly tapered bole, with a breast height diameter to 48 in. (average 18 to 24 in.). On such sites it displays rapid growth with a potential rotation period of 90 years. The total life span is less than that for the other beech species, and trees are overmature and defective at approximately 150 years. In many forests mountain beech is aggressive at the expense of other species. As with all the native beeches, heavy seed crops may be expected, particularly within the areas of optimum range, at three to four year intervals normally following hot, dry summers. From the viewpoints of water-shed protection and soil conservation, mountain beech and silver beech are undoubtedly two of the most important trees in the country, but at the same time are the two species most susceptible to damage by exotic browsing animals.

The Southland timber is potentially important as a substitute for silver beech in many uses. It is intermediate in density between Southland silver beech and red beech, sharing with the former the advantages of an excellent density to strength relationship, and reasonable ease of seasoning. Evidence suggests that heartwood is durable in outdoor locations, but the indicated uses meanwhile will be those requiring a tough, straight-grained, and even-textured timber in motor bodies, factory trucks, implement manufacture, gates, handles, and in industrial and domestic flooring. The timber is also very suitable for general building purposes.

BLACK BEECH (N. solanderi): Contrary to previous reports, black beech is of strictly limited occurrence. It has invariably been confused with lowland types of mountain beech to which it bears a close resemblance and with which it hybridizes freely. In the South Island the two species merge and become generally indistinguishable. The type can only be recognized with certainty on lowland sites in Nelson and Marlborough. In the North Island black beech characteristically occupies lower hill slope and valley sites to the east of the main ranges, sites intermediate between the podocarp forests and the main bulk of the beech forests proper. Few, if any, extensive areas of pure black beech forest remain. In its behaviour under management it again resembles mountain beech though growing to a somewhat larger size than the latter. As with all the indigenous beeches, young vigorous trees are marked by smooth light coloured bark, and maturity or over-maturity by the development of rough fissured bark of darker colour.

The timber (49 lb. per cubic foot air-dry) is yellowish-white with black-streaked heartwood, which is extremely durable in the ground. With its additional advantages of high strength, hardness, and excellent wearing properties, the heartwood is suitable for bridge decking, bridge timbers, and similar purposes, as well as for fence posts. Sapwood clear of defect is suitable for dowels, handles, and bentwood, while other grades are suitable for building. The greatest obstacle to sawing black beech is the high silica content, which causes rapid blunting of saws. Supplies are relatively restricted.

RED BEECH (N. fused): Red beech is a tree of very wide, though discontinuous, distribution from the Thames mountains south almost to Foveaux Strait. In the far south it is clearly beyond its optimum climatic limits and is vigorous only on restricted special sites in western Otago. In the North Island it is generally restricted to montane forest on the inland and eastern ranges, typically in the Ureweras and in the Kaimanawas. The finest red beech forests are those of western Nelson and north Westland. Here the species is most vigorous, regenerates freely, displays its fastest growth, and reaches its maximum size. Red beech is a tall massive tree, total height 100 ft. or more with up to 70 to 80 ft. of clear bole, ranging in diameter to 72 or 84 in., but trees of this size are seldom sound. The average diameter is 40 in. Within its area of optimum range red beech can be managed under a simple uniform clear-cutting system with a rotation of less than 100 years. Second-growth stands have been logged at 62 years. Red beech forests outside this optimum area will, for various reasons, require more skilled management under selection or shelterwood systems, techniques not yet economically possible on any considerable scale.

The timber when first cut is a pinkish-red in colour, turning to a light brown on seasoning; it is hard, strong, easily split, durable, and of about the same weight (about 44 lb. per cubic foot air-dry) as English ash. It is slow seasoning, and requires end coatings and a roof over the stack to prevent sun checks, warping, and internal checking. When good-grade stock is seasoned carefully it is suitable for house construction (framing is installed green), furniture, bentwork, handles, dowels; other established uses are sleepers, bridge timbers, fence posts, mine props, boat building, and flooring (domestic and industrial). Its excellent bending and even-wearing qualities are particularly significant in connection with the last wo uses. Material containing sapwood is suitable for parts of buildings and other uses where there is no decay hazard.

HARD BEECH (N. truncata): A tree very similar in general appearance to red beech but normally somewhat smaller. The leaves are more coriaceous and the species favours the drier sites, red beech in the valleys and hard beech on the ridges. In geographic range it extends farther north than any of the other species and occurs in Northland in local association with kauri. Throughout the North Island its general distribution parallels that of red beech but is more markedly discontinuous.

In the South Island it is not found outside Marlborough, Nelson, and north Westland. In these areas it occurs in admixture with red beech or, south of Westport, with rimu. This is its area of optimum range. Silviculturally it bears close comparison with red beech though growth rates are not so well known and may prove slower. In stem form it is not quite the equal of red beech. As with all the beeches, satisfactory form is assured only when stands are maintained in a heavily stocked condition, at the expense of volume increment, until height growth is completed. Red and hard beech hybridize readily, but apparently not so freely as do either red or hard beech with either black or mountain beech.

Until recently its timber (48 lb.) was confused with that of the red beech, but it is harder and probably more durable. When first cut it is pinkish in colour. Its uses are the same as those of its near relative, the red beech. This species may be expected to become, with red beech, progressively more important as a local substitute for the durable Australian hardwoods in outdoor applications, as well as providing mining timbers. The timber is slow-seasoning and liable to warp and check unless seasoning technique is correct, with special emphasis upon protection from the sun.

TAWA (Beilschmiedia tawa): A shade-tolerant evergreen tree with graceful willow-like foliage and thin black bark widely distributed throughout the podocarp forests of the North Island and, locally, in coastal forests of Nelson and Marlborough. On certain hill sites and elsewhere, following the logging of the physiognomically dominant podocarps. tawa assumes dominance, but the long-term stability of such tawa forest types is not known. Tawa regenerates freely, though in comparison with the beeches growth appears somewhat slow. Mature trees reach a maximum height of 80 ft., averaging 50 to 60 ft., with breast height diameters up to 48 in., though generally averaging about 20 in. Stem form is not good, the bole tending to be irregular or forked, and logs of length exceeding 20 ft. are seldom obtained. Tawa is important as the most widely distributed species of commercial significance residual in, or developing in, fully exploited podocarp forests. Its ultimate role under more intensive silvicultural management is, as yet, the subject of inquiry.

The timber (46 lb.) is light-brownish-white to cream in colour, hard, straight-grained, strong, but not high in shock resistance. It deteriorates rapidly if left block-stacked in an unseasoned condition, but where rapid air-seasoning under cover is carried out under hygienic conditions degrade is slight. Kiln-drying green from the saw is the preferred, practicable method of seasoning. With its excellent machining and finishing qualities, combined with a high yield of dressing grade timber, tawa is a first-class furniture wood and very suitable also for all other interior woodwork and flooring and turned products such as dowels, rods, handles, and clothes-pegs. Treatment to give immunity from attack by the powder-post borer will extend its popularity for these uses. Lower-grade timber is suitable for framing, dunnage, and hardwood pulp.

Indigenous Softwoods.—KAHIKATEA or WHITE PINE (Podocarpus dacrydioides): This species is widely distributed according to a complicated pattern throughout New Zealand. It occurs on dry sites in hill podocarp forests in association with matai and totara, and on such sites the trees are very large and very old. It occurs, also, in dense stands in swamp forests throughout the country. In the swamps kahikatea is vigorous, seeds freely, regenerates well (in certain localities prolifically), and displays comparatively fast growth. The saplings and poles are usually of excellent form and early develop long clean boles. Mature kahikatea are fine trees frequently exceeding 140 ft. in total height (though considerably less in the far south), with diameters breast height to 72 in. (averaging 30 to 40 in. in the hills and 20 to 30 in. in the swamps). Clear logs to 80 ft. in length are not exceptional. Only one factor has served to prevent the initiation of intensive sustained yield management: the swamps in which kahikatea is vigorous, when drained and developed, are the finest dairy lands in the country.

Logs from most lowland sites consist almost entirely of white sapwood from which long clear lengths in wide widths may be sawn. The timber is light (averaging 29 lb. per cubic foot air-dry), even-textured, of moderate strength, easily worked, and practically odourless; the last quality made it pre-eminent as a container for easily-tainted foodstuffs such as butter. With the advent of the fibreboard butter box the timber has become more readily available for kitchenware, miscellaneous woodware, kitchen furniture, vats, boat building, and house building (after preservative treatment). Heartwood forms a significant proportion of old hill-grown logs; it is yellow, sometimes miscalled "yellow pine," durable, and is a useful substitute for heart kauri.

KAURI (Agathis australis): Kauri, the most celebrated of all New Zealand trees, is a species of most restricted distribution with but few outliers outside the Northland and Coromandel Peninsulas, but of the original areas only remnants remain. The giant dominants in virgin forest, up to 20 ft. in diameter with taperless smooth boles reaching to 80 ft. or more, are immensely old and are rightly regarded as national monuments. Yet, of all the native softwoods (saving only kahikatea in the swamps), kauri proves, silviculturally, the most amenable. Regeneration can be secured (by way of nurse crops of Leptospermum or by suitable shelterwood techniques), the species can be handled in forest nurseries, and growth rates are satisfactory. Kauri can be grown as specimen trees in Invercargill 1,000 miles to the south of its natural range. There growth rates exceed those shown by rimu on sites of optimum quality. Under management in the north it should certainly prove possible to grow kauri on a rotation not exceeding 200 years for the production of logs up to 36 in. in diameter. Many minor details in connection with its silviculture remain for solution, but successful domestication of this valuable timber tree can confidently be anticipated.

Production of sawn timber has fallen to about 1,000,000 board feet per annum, of which the major proportion of first-quality timber is used for boat building. Its rapid decline has emphasized the remarkable versatility of a timber whose capacity to yield long clear wides of heart quality has been a byword in world trade. The light yellowish-brown, lustrous heartwood, averaging 36 lb. per cubic foot air-dry, is straight-grained, strong, easily worked and finished, even-textured, remarkably stable and durable under most exacting conditions. It is used in vats for acids, tanning, and brewing, in textile-mill machinery, laundry appliances, butter churns, printers' blocks, and sink benches. A wide range of general uses in building, furniture, bridge, boat, and ship construction has absorbed the other grades "Medium" and "Seconds" (containing sapwood) as well as "Rough Heart" and "Shaky Heart."

MATAI or BLACK PINE (Podocarpus spicatus): This tree, resembling a hardwood in form though possessing yewlike foliage, occurs throughout New Zealand. In the south its distribution is strictly discontinuous and it occurs as solitary trees or in small stands scattered throughout the rimu forests, the lowland beech forests, and even the eastern grasslands. Here it possesses all the characteristics of a true relict species. Growth rates are very slow (50 or more rings to the inch), regeneration is rare even on exceptionally favourable sites, the trees are normally of great age (in some stands all exceed 800 to 1,000 years), and the degree of stunting and malformation increases from north to south. The major matai forests lie in the central portions of the North Island where the trees are of better form, total height to 80 ft. (averaging 60 ft.), diameters breast height to 60 in. (averaging 20 to 30 in.), growth rates are better (though seldom exceeding 1/10 in. per annum), and the dominants are younger. But even here regeneration is normally sparse to wanting. Matai forest soils are very fertile agricultural soils and are in demand for farming. Sustained yield management is a possibility only on restricted special quality sites in the north.

The narrow white sapwood band is clearly demarcated from the straw-coloured heartwood, and boards which are partly or wholly sapwood are used principally for flooring (preservative treated), tallow casks, and similar containers. Heart timber, averaging 38 lb. per cubic foot air-dry, has outstanding qualities of being both hard-and even-wearing, durable and dimensionally stable, which make it one of the best flooring timbers in the world for industrial as well as for domestic use; the same properties commend it for decking and sills. Other building uses include weatherboarding, framing timbers, and plywood. Reject logs provide excellent firewood.

MIRO (Podocarpus ferrugineus): Miro is found in close association with rimu throughout the entire range of the latter. It seldom, however, achieves co-dominance and very rarely and locally attains dominance. In comparison with the other major podocarps it is a small tree usually less than 70 ft. in height and 36 in. in diameter (averaging 24 in.). In contrast to the cupressoid foliage of kahikatea and rimu, the miro foliage is of the yew type. The large bright-red drupes are borne regularly and in abundance and are widely distributed by birds. Seedling miro are normally abundant throughout the forests but saplings are rare. Some, as yet unknown, factor prevents survival and satisfactory growth. Growth rates are extremely slow even in comparison with rimu, and it is most unlikely that miro will ever prove a species of commercial significance in managed forests.

This timber resembles rimu in appearance, in the differentiation of three zones in the log (heartwood, intermediate zone, and sapwood), in many of its major properties, grading and uses, and is moreover marketed as rimu in many localities. Miro is stronger and harder than rimu, and is somewhat more liable to warp when handled carelessly.

RIMU or RED PINE (Dacrydium cupressinum): This, the principal timber tree of New Zealand, is likewise the most widely distributed, occurring in quantity from the Northland kauri region south to Stewart Island. It is present in all lowland beech forests and is the dominant tree over wide areas in the North Island and in Westland, though absent from high altitude forests and rare or local over the central eastern portions of the South Island. It is a tall tree up to 100 ft. in height, producing logs 70 ft. or more in length with breast height diameters up to 60 or 70 in., though these dimensions are reached more frequently in the north than in the south, and in the hill country forests rather than on the coastal plains. Despite its abundance, however, rimu has proved, silviculturally, a most recalcitrant species. In the hill forests, most noticeably in the south, there has been no significant regeneration for several centuries, and rimu on such sites appears to be definitely a relict species. Growth rates are very slow. Many of the larger trees exceed 700 years in age, while annual diameter increments, even on select sites, of 1/10 in. are rarely exceeded. Growth is equally slow in the coastal forests where the sparse regeneration obtained after logging is frequently impeded by rising ground-water levels, a consequence of logging. Artificial re-afforestation with rimu is rendered abortive by the high cost of collection of the solitary seeds emplaced at the tips of the terminal twigs, by the dioecious habit of the species, by uncertain germination coupled with slow growth of the seedlings and heavy mortality on transplantation, and by the heavy growth of weed species that develops following logging. Rimu may be maintained indefinitely as a minor constituent of certain lowland beech forests or on select sites in the north of the North Island, but elsewhere the rimu forests are probably a non-renewable resource.

Current high production of rimu timber cannot be sustained for many years, and it is necessary to direct available supplies into those uses in which its properties and grades are used to best advantage. The timber possesses the qualities of even texture, medium density (averaging 37 lb. per cubic foot air-dry), good seasoning, machining, finishing, and painting qualities, and moderate strength and hardness. The light brown sapwood and intermediate zone may be preservative-treated to impart durability; heartwood is moderately durable, dimensionally stable, and often is highly figured. Building construction (practically all components), furniture, and plywood use the bulk of available supplies.

TOTARA (P. totara and P. hallii): These closely related species which hybridize freely are both widely distributed though in very different fashion. The distribution of P. totara, a tall massive tree with thick fibrous bark, up to 100 ft. in height (average 80 ft.) and up to 80 in. in diameter (average 30 to 40 in.), parallels that of matai and, like matai, it is stunted and malformed in the south. P. hallii, a much smaller tree with thin papery bark, is more widely distributed and occurs in both lowland and alpine podocarp and beech forests. In high altitude forests it is frequently no more than a shrub. Growth rates are slow, particularly in the south, though regeneration occurs more abundantly, for P. hallii if not for P. totara, than for matai. Such regeneration, however, is seldom of good form. Remarks on the silvicultural potential of matai apply to P. totara, though prospects are somewhat brighter by virtue of freer regeneration and faster growth (up to 1/5 in. per annum). P. hallii is strictly a minor species of limited commercial importance, though recent growth-rate figures for this colder climate species when grown in the north show some small promise.

Brownish-pink heartwood is readily distinguished from the pale brown sapwood: the latter is regarded as more durable than sapwood of other indigenous softwoods and suitable without preservative treatment for a wide range of uses in building construction where its relative softness and brittle nature are not restrictive. The latter properties too are virtually the only disadvantages of heart totara which is light (averaging 30 lb. per cubic foot air-dry), easily worked, straight-grained, dimensionally stable, free from warping, and of outstanding durability under the most adverse conditions, in poles, posts, sleepers, and wharf piles. High-grade stock today is required primarily for exterior joinery, while reject logs continue to supply fence posts.

Exotic Softwoods.—DOUGLAS FIR (Pseudotsuga taxifolia): This was introduced in the early days of settlement from the Pacific coast of Canada and the United States of America, where it forms very extensive forests both pure and in mixture with other species. Trees, when growing rapidly, are pyramidal in shape and with very dense, fragrant foliage on numerous, smallish branches. In the best of the Pacific coast forests they reach immense sizes of 300 ft. in height and 40 ft. in girth. The species has been a highly successful introduction, both as an ornamental and as an afforestation tree. Fine old trees and plantations are to be seen along the foothills of Canterbury. Forest Service plantings date back to 1900, although large areas were not established until 1921-30. In all, over 40,000 acres have now been planted in State forests as well as several thousand acres in private, company, and municipal plantations. The forests are successful and healthy from the Rotorua district to Southland, and at altitudes under 1,000 ft. in the south and up to 2,000 ft. in the north. The species grows in a wide range of soils, provided that they are well drained. It is a tree of hill country, and seldom does well on flats and plains; in general it prefers shady slopes. It will grow well in areas of moderately high rainfall, but cannot stand severe frosts.

Plantations put on large volume increments and yield profitable early thinnings for poles and posts. On good-quality sites a height of 80 ft. can be attained in 30 years and a volume of 9,000 cubic feet to a 4 in. top. Only locally collected seed is now used for raising seedlings. In many areas trees or plantations will throw dense regeneration. To produce quality timber and maximum profit, rotations will be at least 60 and probably 80 years or more.

The inherent features of locally-grown Douglas fir are not dissimilar from those characterising the species as grown in its native habitat. Heartwood is formed at a relatively early age, pinkish-brown in colour, with the distinctive Douglas fir smell, and having moderate durability, including resistance to insect borers, in buildings. Sapwood is white. Growth rings are prominent with dense latewood bands contrasting with the more open-texture earlywood zones. In general, a high proportion of latewood in the growth rings is indicative of the higher density strong timber preferred for framing and structural timbers for building; on the other hand a low latewood percentage indicates light timber easily nailed and presenting fewer painting difficulties. The density range is from 27 lb. to 36 lb. per cubic foot air-dry. Thinnings are suitable after preservative treatment for use as poles and posts.

EUROPEAN LARCH (Larix decidua): This tree, one of the few deciduous conifers, is a native of Central Europe. The main New Zealand plantings were made during the years 1900-15; the area established to date totals 7,900 acres, of which 5,460 are located in the North Island and 2,440 in the South Island. Best growth has been obtained on sheltered easy hill slopes at fairly low altitudes and on soils which are deep, well aerated, and moist. On such sites the root system is strongly developed and the bole is tall, clean, and tapering. Exposure to strong winds leads to the development of sabre butts. By the age of 30 years heights of 70 ft. have been attained and volumes per acre are estimated to be approximately 4,000 cubic feet. Seed cones are sparse and fertile seed is not borne until about the age of 25 years. Early plantings were made from stock raised from seed imported from Switzerland, but now sufficiently mature stands are available from which to collect all requirements; one pound of seed produces in the nursery about 18,000 seedlings. Fortunately stands have escaped the serious diseases to which this species is subject in Europe. Being a strong light demander, larch requires early and frequent thinnings to prevent the stands from stagnating; thinnings are likely to be profitable. Only after a thinning that has been too long delayed has wind-throw occurred; otherwise the tree has shown itself to be wind-firm. Rotations will be 70 years or more. The tree never grows to a large diameter, but has characteristically small branches which die early, and can be readily cleared; knot-free timber can thus be produced.

The small diameter logs available at present have been used after preservative treatment, mainly as natural round poles, props, and posts, for which purposes their good strength and form are realized to advantage. Natural rounds without treatment are used also for mine props, rails, and rustic work. Sapwood is light in colour, narrow and clearly defined; heartwood is reddish-brown to light greenish-brown in colour and moderately durable. The timber is of medium density (averaging 35 lb. per cubic foot air-dry), strong and tough, and hence is very suitable for framing in buildings, for gates and other farm timber, and for scaffold planks. The well-defined growth rings with dense latewood present a painting problem, and floors subject to heavy wear tend to wear unevenly.

CORSICAN PINE (Pinus laricio): This tree, native of southern Europe, has adapted itself well to New Zealand conditions. Successful plantations have been established as far north as Waipoua and as tar south as the Invercargill district, and from sea level to altitudes up to 2,500 ft. The species has not proved exacting as to soil requirements, although the best stands are at lower altitudes on deep well-drained soils varying in texture from sands to clays. Plantations do not thin themselves naturally, so that early thinnings are imperative if stagnation is to be avoided. Unthinned stands become very liable to wind-throw from an age of 45 years onwards.

Growth rates are slow as compared with radiata pine, but are rapid in comparison with European standards for Corsican pine. The rotation in New Zealand is likely to be 60 to 80 years. Because of the wide variation in tree types which exist, special care must be taken in the selection of élite seed trees. In some localities there is promise of successful regeneration.

No stands have yet been clear-felled, but thinnings have been fully utilized.

Knowledge of this timber is limited mainly to small diameter logs of which the largest are sawn and others used for poles and posts after preservative treatment. Available logs contain only a small core of pink heartwood, and resinous pink knots contrasting with the creamy white sapwood. The timber is slightly denser and harder than radiata pine (averaging about 31 lb. per cubic foot air-dry), generally similar in strength properties, seasoning, machining, and finishing, and very susceptible to sapstain disfigurement during seasoning in both boards and natural round products. Pith is relatively insignificant, knots are smaller and more closely spaced than in radiata pine, and the density variation within the log is less. Light and dark bands (earlywood and latewood) in the closely-spaced growth rings do not appear seriously to affect paint coat adhesion in weatherboards or wearing qualities in flooring, for which the timber is mainly used.

RADIATA PINE (Pinus radiata): Almost confined in its natural state to the limited area of the Monterey Peninsula in California it has been a truly remarkable tree for its successful introduction into Southern Hemisphere countries and its widespread use for afforestation. In New Zealand it has been the mainstay of all planting, both on forms and in plantations, and about 500,000 acres have been established with it, or over 60 per cent of the acreage of all species planted. The present cut of timber exceeds that of rimu, hitherto the main indigenous building timber, and in the near future radiata pine will be by far the most important timber. It was introduced by the settlers in the early "sixties" and planted mainly for shelter.

By the 1920's its potentialities for afforestation were obvious and it was the species used mainly in the planting of the large areas of pumice country in the "boom" period 1925-30. The central North Island is now its stronghold, but it is grown throughout the length and breadth of the country, though it fares poorly in Northland and on the wind-swept shingle plains of Canterbury. It does well on a wide range of soil types, at altitudes from sea level to 2,000 ft. and in rainfall varying from 30 in. to 70 in. per annum. The best stands are in the Rotorua, Nelson, and Tapanui districts, and in sand dunes. Individual trees vary greatly in form, vigour, and in such botanical characteristics as size and shape of cones. The most remarkable feature of the species is its fast rate of growth; on good sites it will reach a height of 130 ft. in 30 years, and in the same period will commonly yield 50,000 board feet of sawn timber to the acre. Diameter growth is equally rapid and annual rings up to 1 in. wide are frequently seen.

Early in the life of stands, dominant trees take the lead and there is a continuous natural thinning so that stands do not stagnate. Seed is produced early and most of it is retained in the thick woody cones that stay on the trees. Natural regeneration usually follows clear-felling and is prolific after fires. Untended stands in the pumice country have been attacked by Sirex noctilio, in places severely. The insects Hylastes ater and Tortrix moth, and the fungi Armillaria mellea and Phomopsis also attack the species under certain conditions.

The inherent properties of the bulk of sawn timber produced from radiata pine are sufficiently good to justify confidence in the suitability of the timber for a very wide range of uses in building construction, provided that it is properly graded, protected from sapstain disfigurement during seasoning (by chemical dipping or kiln-drying green off the saw), and preservative-treated where a decay hazard may arise in service. In other parts of buildings where the timber is erected after thorough seasoning and remains dry in service, preservative treatment is unnecessary. Sapwood timber is creamy-white, light (average about 28 lb. per cubic foot air-dry), easily dried, machined, and finished, and strong for its weight; there is little heartwood present in logs from 25 to 30 year old trees. Knots, only slightly darker than the rest of the wood, are the main defects; there are long lengths of clear timber between whorls of knots in many logs. Boards containing widely-separated large defects find a logical use in furniture and interior joinery for the "clear cuttings" which they will yield with minimum waste; other boards with smaller dispersed defects are preferred for flooring and weatherboarding. Growth rings are characteristically broad with a gradual rather than an abrupt change from the earlywood to the denser latewood in each ring. In machining and finishing, and in wearing (in service), the timber is largely free from troubles associated with more uneven and textured woods. Nevertheless there is a slight tendency for the customary paint coats on weatherboards showing a prominent "slashgrain" to be eroded away from the latewood bands; special priming treatments to counteract this feature and also the knots are being studied. The pith, in itself a significant defect, and a core of low density wood surrounding it, are taken account of, especially in members graded for strength. Apart from building uses, large quantities of timber are absorbed by boxes and crates, concrete boxing, core-boards and door cores, and a growing export trade. Pulping industries are using increasing quantities of small diameter material which is suitable for both groundwood and chemical pulps for paper as well as fibreboard and container board manufacture. Veneer production from selected logs is growing also.

LODGEPOLE PINE (Pinus murrayana): Lodgepole pine comes from the inland montane regions of Canada and the United States of America where pure forests of the species extend over large areas. It has a wide range of geographical races, several of which have been introduced into New Zealand. It has been used by the Forest Service mainly for the afforestation of high, cold plateau country in the centre of the North Island. Over 16,000 acres have been planted, the greater part between 1926 and 1932. The species is hardy and frost resistant, and can be grown at a higher altitude than any other exotic pine in New Zealand. The best races develop well and indicate that the species has a place in New Zealand forest practice, provided that seed selection is carefully done. Poor races on the other hand produce stunted and excessively branched trees which are unlikely to produce commercial timber. The tree never grows to large diameters and may find its best use in pulpwood. Lodgepole pine is a remarkably early and prolific seeder, and it regenerates profusely; it is in fact already tending to colonize parts of the tussock country of the central North Island. These characteristics may lead to it being grown for protection rather than production purposes.

The characteristics of the timber from local sources are as yet imperfectly known, as production is very small and limited to one or two localities. Timber sawn in North Canterbury has more clearly-defined growth rings and latewood bands than radiata pine, more closely-spaced growth rings due to its slower growth, and carries a significant proportion of heartwood distinguished from the creamy-white sapwood by its light pinkish-brown colour and distinctive smell. Pith is insignificant and knots are smaller, light brown in colour, and more dispersed than in radiata pine. The timber appears in general to be slightly denser and harder than radiata pine, but comments on the grading, seasoning, preservation and uses of the latter are a satisfactory guide to procedure with lodgepole pine.

PONDEROSA PINE (Pinus ponderosa): Ponderosa pine comes from the drier montane areas of western Canada and the United States of America. It is there a composite species comprising a number of geographical races which differ greatly in form and vigour and which extend over a wide area and range of conditions. In New Zealand the tree has been planted on a large scale, both by the Forest Service and by afforestation companies, and on an area basis it is second in importance only to radiata pine. Being a hardy species its main use has been in the afforestation of difficult sites, particularly the "frost flats" of the pumice country where climatic conditions are too severe to permit the establishment of radiata pine. Unfortunately, mainly poor races have been introduced and the ponderosa forests are therefore not of high quality. Some small-scale early plantings were from good races and these now show the possible value of the species. The tree will do well on poor soils and in climates characterized by low rainfalls and cold frosty winters. It grows slowly except on the best sites, and it will require a long rotation to produce mature high-quality timber. Early thinnings have not been profitable. Ponderosa pine in New Zealand is generally healthy but it has shown some susceptibility to Sirex noctilio, Hylastes ater, and Tortrix moths. It does not seed early in life and natural regeneration as yet is almost non-existent.

It is impracticable to give a complete picture of properties and uses as the sawn production to date is small. Timber examined is generally of lower density and slightly weaker than radiata pine, but this may be counter-balanced in graded framing timber by the knots being smaller and more dispersed. The indicated disability of low density core timber with associated low strength and a warping tendency will require attention in grading. Heartwood forms an insignificant proportion of the small-diameter logs which have so far been sawn. Sapwood is whitish and growth rings are not well-defined.

Principal Strength Properties of New Zealand Timbers.—The following table shows the principal strength properties of New Zealand timbers, both indigenous and exotic species. The test samples were in the form of small clear specimens, the air-dry values being adjusted to 12 per cent moisture content. In two of the exotic species, Douglas fir and radiata pine, tests of timber from two different localities are shown.

Common and Botanical Name of SpeciesCondition at TestWeight Per Cubic Foot (Pounds)Modulus of Rupture in Bending (Pounds Per Square Inch)Modulus of Elasticity in Bending (1,000 Pounds Per Square Inch)Maximum Crushing Strength Parallel to Grain (Pounds Per Square Inch)Shear Strength Parallel to Grain (Pounds Per Square Inch)
Indigenous Species
Beech, black (Nothofagus solanderi)Green699,4001,7504,3001,280
 Air-dry4914,5001,9808,3001,870
Beech, hard (Nothofagus truncata)Green6910,3001,8704,6001,420
 Air-dry4813,7002,1007,0001,980
Beech, mountain (Nothofagus cliffortioides)Green608,0101,3803,6001,230
 Air-dry4215,8102,0427,7601,790
Beech, red (Nothofagus fusca)Green619,1001,7203,9001,260
 Air-dry4411,4001,9307,6001,850
Beech, silver (Nothofagus menziesii)Green557,6001,2803,400940
 Air-dry3412,2001,6706,1001,420
Black maire (Olea cunninghamii)Green7513,0501,5506,0001,810
 Air-dry6217,0002,0209,6002,360
Hinau (Elacocarpus dentatus)Green708,8001,5904,3001,380
 Air-dry4512,3001,6106,6001,610
Kahikatea or white pine (Podocarpus dacrydioides)Green516,3009602,500810
 Air-dry299,5001,1405,1001,340
Kaikawaka (Libocedrus bidwillii)Green615,6006602,800750
 Air-dry276,4008704,100820
Kamahi (Weinmannia racemosa)Green557,8001,2503,4001,290
 Air-dry4010,8001,4205,8001,920
Kauri (Agathis australis)Green517,8001,5703,400940
,Air-dry3613,1001,8905,6001,220
Kohekohe (Dysoxylum spectabile)Green577,3001,2903,100790
 Air-dry3410,9001,4007,100840
Mangeao (Litsaea calicaris)Green627,6001,3303,3001,030
 Air-dry3913,3001,6206,6001,560
Matai (Podocarpus spicatus)Green689,0001,2304,0001,000
 Air-dry3810,8001,3206,8001,600
Miro (Podocarpus ferrugineus)Green548,4001,4203,8001,150
 Air-dry3612,9001,5706,6001,690
Pokaka (Elaeocarpus hookerianus)Green656,2001,0003,2001,260
 Air-dry3910,0001,1005,5001,730
Pukatea (Laurclia novae-zelandiae)Green614,2007302,500580
 Air-dry3011,8001,7004,9001,080
Rata, Northern (Metrosideros robusta)Green7211,3001,7105,2001,610
 Air-dry5518,2002,3409,2001,940
Rata, Southern (Metrosideros lucida)Green7913,0002,1505,8001,640
 Air-dry7123,0003,15011,5002,570
Rewarewa (Knightia excelsa)Green708,6501,9013,820900
 Air-dry4617,1902,5239,2301,380
Rimu (Dacrydium cupressinum)Green617,4001,2203,300910
 Air-dry3711,0001,3105,4001,260
Silver-pine (Dacrydium colensoi)Green546,4007903,100840
 Air-dry398,5001,0705,8001,320
Taraire (Beilschmiedia taraire)Green728,6001,4103,9001,000
 Air-dry4213,0001,7906,6001,910
Tanekaha (Phyllocladus trichomanoides)Green689,3001,3904,6001,210
 Air-dry4214,1001,6206,5001,400
Tawa (Beilschmiedia tawa)Green679,7001,5904,4001,100
 Air-dry4615,7002,0608,4001,780
Totara (Podocarpus totara)Green596,5009203,100810
 Air-dry307,6001,0705,5001,120
Exotic Species      
Corsican pine (Pinus nigra var. calabrica), Rotorua CountyGreen646,7101,3823,280880
 Air-dry3511,2201,6327,2701,780
Douglas fir (Pseudotsuga taxifolia), Mackenzie CountyGreen366,3001,1002,800830
 Air-dry279,0501,2604,9001,220
Douglas fir (Pseudotsuga taxifolia), Marlborough CountyGreen398,0001,2103,8001,030
 Air-dry3613,4002,0006,6001,340
Douglas fir (Pseudotsuga taxifolia), Rotorua CountyGreen508,0701,5244,020880
 Air-dry3414,2601,8781,7601,060
Radiata pine (Pinus radiata), Rotorua CountyGreen585,9001,0602,600870
 Air-dry2811,2001,3405,6001,550
Radiata pine (Pinus radiata), New Brighton BoroughGreen516,1009102,8001,060
 Air-dry319,3001,0604,2001,370
Macrocarpa (Cupressus macrocarpa), Tuapeka CountyGreen508,0009703,8001,010
 Air-dry3110,9001,1805,9001,620
Larch (Larix decidua), Rotorua CountyGreen417,5001,3203,200830
 Air-dry3513,5001,7407,1002,060

Chapter 22. SECTION 22—FISHERIES

Table of Contents

GENERAL.—The principal characteristics of New Zealand's fisheries are the great length of the coast line, extensive natural harbours, numerous sheltered bays, and narrow continental shelf. Off its more northerly coasts, which come within the influence of the south equatorial current, a rich variety of subtropical fish is found, as exemplified by such species as the flying fish, the sunfish. the swordfish, and several shark species. On the other hand, its southern coasts, washed by the Antarctic drift, are the natural haunt of the fur-bearing seal, and yield varieties of fish which are characteristic of cold-water conditions.

Of the many kinds of excellent edible fishes the most important are the snapper (Pagrosomus auratus), which is the principal species in the catch (mainly by trawl) in the north-western part of the South Island, the west coast of the North Island, and the east coast of the North Island to just south of East Cape; next in importance is tarakihi (Dactylopagrus macropterus), which is taken mainly by trawlers working off the east coast of the North Island and in smaller quantities off the west coast of the South Island. The groper or hapuku (Polyprion oxygeneios) is caught on lines in the deeper water from North Cape to Stewart Island, but principally in Cook Strait and on the rocky parts of the east coast of the South Island, while the blue cod (Parapercis colias) is the staple line-caught product of the southern line fisheries, particularly about Foveaux Strait and Stewart Island.

The flounder and sole (Pleuronectidae) occur in the more shallow and sheltered waters.

The most productive grounds are in relatively shallow water, and, except for groper and ling, fished for by means of deep long lines, most of the fishing is carried on at depths of less than 40 fathoms. Depths of over 100 fathoms occur at a comparatively short distance from the coast, and up to the present it is not known to what extent these deeper waters may be productive of marketable fishes. The principal methods of fishing are long-lining for groper (hapuku), ling, "hake" or "kingfish," and snapper; hand-lining for blue cod; trawling and Danish seining, by which flounders, snapper, tarakihi, gurnard, john-dory, and a variety of other fish are taken. In bays and estuaries set-nets are used for flounders, snapper, and mullet, and seines are also employed principally for the capture of flat fish and snapper. Sardines or pilchards (Sardinia neopilchardus) and other species of the herring family are known to occur in large shoals off some parts of the coast from time to time. There is no regular fishery for these kinds except where they have been periodically netted for bait in the Marlborough Sounds by Cook Strait fishermen. Attempts to commercialize these fish have been unsuccessful mainly because their appearances proved extremely irregular and inadequate in quantity.

In order to ascertain the economic position of the fishing industry an investigation committee was set up, under the Board of Trade Act, in 1937. This committee conducted exhaustive inquiries into all aspects of the industry, and reference to the committee's report (parliamentary paper H—44A, 1937-38) will give detailed information as to the conditions under which the industry then operated.

The fishing industry—that is "the taking of fish and shell fish for sale"—came wholly under the control of the Marine Department by virtue of the Fisheries Amendment Act 1945, which provides that any boat used in fishing for purposes of sale must be registered, and that the owner of such a boat must be the holder of a licence authorizing the boat to be so used. In addition, any person employed on a fishing boat except as an engineer engaged wholly in connection with the propelling machinery, or wholly as a fireman, or as a cook, must be the holder of a crew licence.

The principal regulations dealing with fisheries are set out hereunder. Two comprehensive series are the Fisheries (General) Regulations 1950 and the Fresh Water Fisheries Regulations 1951. Under the latter are issued a number of modification notices which deal with particular aspects—e.g., permissible length of different classes offish to be taken—while the various acclimatization societies' rules are issued under the authority of these regulations. The Sea Fisheries (Boats and Licences) Regulations 1951, the Oyster Fishing Regulations 1946, and the Whitebait Fishing Regulations 1951 are directly relevant to the fishing industry. Other regulations include the Seal Fisheries Regulations 1946, the Quinnat Salmon Regulations 1940, the Fish-pass Regulations 1947, and the Toheroa Regulations 1946.

STATISTICS OF FISHERIES.—Of the 1,373 licensed boats operating during 1955 those vessels whose income was over £200 totalled 785, compared with 793 in 1954. The number of persons employed on these boats was 1,605, compared with 1,616 in 1954.

The estimated total quantity and value of the principal classes of fishery products marketed in the years 1954 and 1955 were as follows.

UnitQuantityValue
1954195519541955
 ££
Wet fishCwt.414,122435,3351,195,5681,299,494
Whitebait (West Coast, South Island only)Cwt.4,3056,343129,648233,840
Oysters (dredged)Sacks66,29678,60497,787129,697
Oysters (rock)Sacks5,7365,30015,05713,915
MusselsSacks25,58527,74312,19413,238
CrayfishCwt.108,849116,670658,515782,269
Whale oilTons1,47084088,20042,000
Fish liverslb.773,661636,76433,84738,471
      Total value   2,230,8162,552,924

In the most important group, the "wet fish "—i.e., all the ordinary fishes caught by all the methods of sea fishing—the annual totals for successive years were as follows.

YearQuantityValueYearQuantityValue
 Cwt.£ Cwt.£
1940-41328,594440,3081948446,265838,334
1941-42326,863458,3931949449,903864,332
1942-43311,971442,9761950440,179918,051
1943-44294,445489,2681951408,365949,551
1944308,237522,9541952408,8581,079,099
1945331,773558,4041953435,4971,200,038
1946380,321660,0961954414,1221,195,568
1947438,300802,4961955435,3351,299,494

The poor season for tarakihi, which adversely affected the total production in 1954, was not apparent in 1955, the catch for this year being up by 26,210 cwt. At Wellington, where the principal species taken is tarakihi, the catch of this fish alone is up by 13,741 cwt.

Snapper, which is the principal species of "wet fish", and which had shown a marked decline each year from 1948 to 1953, improved its position still further, the total catch being 7,113 cwt. more than last year.

Except for an increase of trevally, the catch of practically all other species shows a slight drop, and the total quantity of "wet fish" produced, 435,335 cwt. is up by only 21,213 cwt.

Kind or Class of Wet Fish Caught.—The following table shows the quantity and value of each kind of wet fish caught during 1954.

Kind or Class of FishQuantityValueKind or Class of FishQuantityValue
 Cwt.£ Cwt.£
Snapper127,210325,010Warehou8782,302
Tarakihi111,771273,108Kingfish8312,869
Gurnard39,06477,966Kahawai620914
Hapuku25,692142,488Herring6061,164
Blue cod18,43962,761Mixed rounds402994
Trevally18,13923,534Mackerel290352
Sole16,957108,776Parore254369
Elephant-fish15,78859,044Garfish175760
Flounder15,634116,057Brill156966
Pioke6,19611,526Trumpeter117551
Red cod6,13411,464Monkfish109254
Moki5,15513,231Creamfish8056
Ling4,73715,925Conger5678
John-dory4,66613,050Skate3140
Barracouta4,1684,920Maomao1236
Mullet3,71210,043Perch1012
Shark3,5496,065Whiting  
Whiptail1,3801,901   
Butterfish1,3096,930   
Hake1,0083,978      Totals435,3351,299,494

Snapper was the most abundant species for 1955, although tarakihi increased by 26,240 cwt. as compared with 1954.

Methods of Capture.—A table showing the total quantity and value of wet fish caught in 1955 by each of the common methods of fishing is shown below, with the figures for 1954 included for comparative purposes.

Method of FishingQuantityValue
Cwt.Percentage of Total£Percentage of Total
19541955195419551954195519541955
Trawl276,326306,32166.7370.37733,253850,73061.3365.47
Danish seine22,37523,4255.405.3849,47651,5134.143.96
Long and hand lines80,83375,23319.5217.28271,808277,28622.7321.34
Set and drag nets34,58830,3568.356.97141,031119,96511.809.23
      Totals414,122435,335100.00100.001,195,5681,299,494100.00100.00

The steam trawlers landed a total catch of 27,682 cwt. (6.4 per cent) while the motor trawlers landed 278,639 cwt. (64 per cent).

Landings at Ports.—Ports where the total landed catch was in excess of 10,000 cwt. are shown in order of importance in the table below. The percentage of the grand total is also included.

PortQuantityValue
Cwt.Percentage of Total£Percentage or Total
19541955195419551954195519541955
Auckland113,645113,53127.4426.07240,891242,19820.1418.65
Wellington37,34347,4879.0110.92108,376149,9689.0611.54
Timaru28,42030,4946.867.00109,230124,2499.149.56
Manukau20,41825,6254.935.8942,83053,5563.584.12
Napier24,59022,1685.955.0959,01960,4804.944.65
Lyttelton23,44421,7125.675.0080,45785,6396.736.59
Gisborne17,50120,8924.234.8037,85150,3463.163.87
Tauranga13,39219,4583.234.4630,54144,2662.553.41
Nelson11,64414,0952.813.2427,72737,0872.322.85
Thames11,72712,4702.832.8640,29446,1973.373.55
Port Chalmers13,94411,0253.372.5455,08662,6078.394.82

The quantity of fish landed at these ports totalled 338,957 cwt., which was 77.86 per cent of the grand total.

EXPORTS.—The total value of fish and shellfish exported during 1955 was £1,344,258.

A table showing the principal classes of fishery products exported during each of the last three years is set out below.

UnitQuantityValue
195319541955195319541955
 £££
Oysters, frozenCwt.1183193132137
MusselsCwt.364187371436991
Fish, frozenCwt.49,01143,02147,343410,717345,655368,833
Crayfish, frozen, including cray tailsCwt.22,56533,03731,079695,063982,257953,631
Fish, smoked, dried, etc.Cwt.5051721034,6161,8371,177
Fish and shellfish, cannedlb.57,45298,48450,21614,41528,25019,489
      Total values    1,125,3751,358,5671,344,258

Fish-liver Oil.—The quantity of fish livers processed during the year was 636,764 lb., which is 136,897 lb. less than during 1954, and the yield of oil was down by 7,257 gallons. A reason for this trend was the rise in price for high grade, especially shark livers, but a drop in price of the poorer grades of livers from certain other species.

A total of 18,299 gallons of fish liver oil was exported during 1955 compared with 9,569 gallons in 1954. The oil exported included varying amounts of concentrate, but the major part of the increased volume exported was composed of low-grade oils.

The total weight of livers processed and the quantity of oil produced in each of the last five years is as follows:

YearWeight of Livers TreatedQuantity of Oil Produced
 lb.Gallons
1951751,08735,003
1952800,30339,275
1953833,46040,741
1954773,66138,953
1955636,76431,696

OYSTER BEDS.—The principal oyster beds around the coast of New Zealand are those situated in Foveaux Strait, between South and Stewart Islands, and the rock-oyster beds on the east and west coasts of the Auckland peninsula.

In South Island waters a close season is observed from 1 October to 14 February, and in North Island waters from 1 November to 30 April in each year. The taking of oysters is governed by the Oyster-fishing Regulations 1946, and vessels operating commercially are subject to the Sea-fisheries (Boats and Licences) Regulations 1951. During the 1955 season 78,604 sacks of oysters were dredged from Foveaux Strait, compared with 66,296 sacks in 1954.

The rock-oyster beds of Auckland were worked for many years under a variety of systems, but, owing to stripping of the beds, close seasons had frequently to be proclaimed. From 1908 the picking and wholesale marketing of rock oysters from the North Island beds has been undertaken by the State, private picking being prohibited.

Oyster-cultivation work is being systematically carried on by the Marine Department in the Hauraki Gulf, in the Bay of Islands, and in the Kaipara district.

Rock oysters picked and sold by the State in 1955 totalled 5,300 sacks, compared with 5,736 sacks in 1954.

CRAYFISH.—Marine crayfish occur off many parts of the New Zealand coast. Part of the catch of crayfish is sold in local markets for domestic consumption, part is exported as frozen crayfish tails and whole crays, while a small quantity is canned.

With the development of the export of frozen crayfish tails to the United States of America and the high price received for this product, the increase in the catch of crayfish has been phenomenal, but already some grounds are showing a reduced return for the gear worked. The catch of crayfish over the last five years is as follows.

YearQuantityValue
 Cwt.£
195156,911218,052
195266,350333,775
195381,674460,366
1954108,849658,515
1955116,670782,269

WHALING.—With the enormous development of pelagic whaling that has taken place in recent years the whaling industry in New Zealand has greatly declined from the important position which it occupied in the early days of the colony. Only one shore station was in commercial operation during the 1955 whaling season. This station is situated in Tory Channel, Queen Charlotte Sound, and the season's catch in that area was one hundred and twelve whales, all humpbacks, compared with one hundred and eighty in 1954. The total oil production was 840 tons, while other products included 80 tons of bonedust and 300 tons of whale meat.

A concentrated whale-marking programme was undertaken during October and November 1955 to mark humpback whales during their southern migration. In Great Barrier Island area 4 whales (including one blue whale and one sei whale) were marked; in Foveaux Strait, 106 humpbacks; and some whale markings were carried out in Cook Strait in the course of commercial whaling operations there.

The Whaling Industry Act 1935 was passed in order to give effect to an International Convention for the regulation of whaling and matters incidental thereto (refer to Ross Dependency in Section 43 of this issue).

SEALS.—The taking of seals in New Zealand waters has been on a restricted scale during the last fifty years, these animals being placed on the protected list in 1894. No sealing was then allowed until 1913, when there was an open season, but with certain restrictions. From 1916 a close season was observed until 1922, when the taking of seals was again permitted, but only till 1924, since when a close season was observed until 1946.

A short restricted open season was permitted during 1946 by the Seal Fisheries Regulations 1946, but a close season is again being observed.

BIG-GAME FISHING.—Swordfish (striped and black marlin, and occasionally broadbill), mako shark, and other big-game fish occur principally off the east coast of the Auckland Provincial District, and attract both New Zealand and visiting big-game fishermen. The principal centres for this sport are Whangaroa, Russell (Bay of Islands), Whitianga (Mercury Bay), and Tauranga, where specially designed and equipped launches in charge of experienced men may be hired. The season lasts from December to May, the best months usually being February and March. The world's record black marlin swordfish (976 lb.) was caught off the Bay of Islands in February 1926.

To preserve this very important fishery the Fisheries (General) Regulations 1947, superseded by the regulations of similar title issued in 1950, were gazetted prohibiting the taking of these fish by other than rod and line, and stipulating that the line was not to be heavier than No. 39 linen thread line. In addition, a limit bag of not more than four fish per day has been imposed.

In the 1955 season (from November 1954 to June 1955) big-game fish caught included 25 black marlin, 477 striped marlin, 272 mako shark, and 35 other species. Figures for three of the five principal fishing areas for the 1954 season recorded 20 black marlin, 374 striped marlin, 3 blue marlin, 81 mako shark, and 44 other species.

WHITEBAIT.—A fishery that is peculiar to New Zealand with regard both to the product and to the methods of operation, and carried on from July to November in the tidal reaches of many rivers, is the whitebait fishery. New Zealand "whitebait" are the young of Galaxias attenuatus, a species that lives for the greater part of its adult life in fresh water, descending to tidal water to spawn in late summer and autumn. The spawn is deposited among grass and similar herbage on the margins of the rivers above the ordinary high-water mark in a zone that is submerged only at the highest spring tides. Here it remains under cover of the herbage and secure from aquatic enemies until it is once more reached by a spring tide about a fortnight or, it may be, a month later. The young then hatch out, and are carried by the ebb tide to the sea. Here they remain until, at the age of about five months, the young fish, then about 2 in. long and still possessing the almost glassy transparency of the larval stage, migrate up the rivers in dense shoals. This is the time of the whitebait fishery, when they are caught in nets made of wire gauze or mosquito netting. The cultivation and drainage of riparian lands have considerably diminished the extent of spawning and feeding areas that were available in earlier times. From these causes, as well as from the intensity of the fishing operations, there are now few rivers where the runs of whitebait show anything like the abundance of former years. The most productive whitebait fisheries are near the mouths of the rivers of the West Coast of the South Island and in the lower reaches of the Waikato River. Normally the whitebait fishery gives employment to over three hundred regular fishermen, and a greater number of part-time fishers, and, over a period of years, produced an average of approximately 3,000 cwt. of whitebait. As a result of reasonably good seasons over a period of years, and with improved transport from the more remote rivers, in which aeroplanes have played an important part, a substantial whitebait industry has been developed, particularly on the West Coast of the South Island, where 6,343 cwt. were caught in 1955.

FRESH-WATER FISHERIES.—Native Fishes: Of fresh-water fishes indigenous to New Zealand the species of most commercial importance at the present time is Galaxias attenuatus, which provides the whitebait fishery already mentioned. Other species of Galaxias are known in the streams and lakes of the country. With the exception of the eels, which frequently attain an extraordinarily large size compared with those of the Northern Hemisphere, all the native fresh-water fishes are small, and are therefore not considered to possess any sporting value except to the most juvenile of anglers. There are two species of eels—Anguilla australis, the short-finned eel; and Anguilla dieffenbachii, formerly known as Anguilla aucklandii, the long finned eel. Investigations by Marine Department biologists have thrown new light on their distribution. It is known that all male eels remain in tidal and brackish waters; female long-finned eels are found throughout all accessible fresh waters, while female short-finned eels are restricted to the warmer, deeper, and slowly-flowing waters, and in the South Island are found only in the lower reaches of rivers and in coastal lakes. Eels constituted an important food supply to the Maoris, who devised very efficient traps for their capture as the adult eels migrated to the sea. This fishery is still carried on by the Maoris of some districts, and during recent years some commercial fishing has taken place for home markets and for export. So far as available supplies are concerned, there is scope for considerable development in connection with eel utilization in New Zealand.

The following list shows the definitely known genera of indigenous fresh-water fish and includes all the principal species.

Scientific NameEuropean NameMaori NameUsual Maximum Size
 Inches
Galaxias attenuatus"Minnow"Inanga7
Galaxias fasciatusNative trout or mountain troutKokopu10
Galaxias brevipinnis"Gudgeon"Taiwharu or kokopu6
Galaxias huttoni Koaro6
Galaxias burrowsiiCanterbury mudfish 5 to 6
Neochanna apodaMudfishHauhau or waikaka8
Retropinna retropinnaSmeltParaki6
Prototroctes oxyrhynchusGraylingUpokororo12
Cheimarrichthys fosteriTorrent-fish or shark-bullyPapanoko7
Gobiomqrphus gobioidesBullyToitoi6 Feet
Anguilla austral isShort-finned eelTuna3 to 4
Anguilla dieffenbachii (aucklandii)Long-finned eelTuna4 to 5
Geotria australisLampreyKanakana or pikarau2

The "minnow," smelt, grayling, and, of course, the eels and lamprey, are migratory fish which spend parts of their lives in the sea or in estuarine tidal waters, although at least one species of purely fresh-water smelt is known.

Acclimatized Fishes: Although most of the above-mentioned indigenous fishes—especially the eels, kokopu, and upokororo—provided an appreciable portion of the food supplies of the Maoris, and have been a welcome addition to the camp provisions of surveyors, bushmen, and prospectors since the pioneering days, there were many among the early settlers to whom the New Zealand rivers and lakes appeared uninteresting and unproductive in comparison with their native salmon and trout streams. By means of private agency in some cases, and by more organized efforts on the part of Government and local acclimatization societies, attempts to introduce British salmon and trout were commenced in the early "sixties." The brown trout was first established in 1867 by means of ova imported from Tasmania, where the species had been acclimatized a few years earlier from English stock. Importations of brown trout besides the Loch Leven and sea-trout varieties have been made subsequently, so that the species is now found in most of the fresh and tidal waters of New Zealand. Rainbow or steelhead trout, first introduced in 1883 from California, are also now widely distributed. In some lakes, notably Taupo and others in the Thermal Region, they have largely displaced the earlier brown-trout population. The American brook trout (Salvelinus fontinalis) was widely planted in the "seventies" and "eighties," but is now found only in a few back-country streams in the South. The Mackinaw trout, or Great American Lake trout, has been naturalized in Lake Pearson, Canterbury, since 1906. Quinnat salmon, introduced from California in the first five years of the present century, after earlier attempts had failed, are now firmly established, and "runs" of these salmon take place annually between January and June in the larger east coast rivers of the South Island. They have been taken in smaller and more variable numbers in a few rivers on the West Coast and in the Wellington District. Sockeye salmon, imported at the same time, have given rise to a land-locked stock in Lake Ohau, no sea-run examples of this species having yet been identified. The introduction of European Atlantic salmon was attempted at various times in the earlier years, and was finally achieved after 2,000,000 ova had been imported in 1910-12 from British and Continental rivers. The species is now established in the Waiau River system and associated lakes (especially Lake Te Anau) in Southland. It is remarkable that, although there is unimpeded access to the sea, the species has largely adopted land-locked habits, most of the fish remaining to feed in fresh water until and after they have reached maturity. Relatively small numbers, however, enter the Waiau from the sea.

Besides the above-mentioned members of the salmon and trout family, other species of fish from the Northern Hemisphere which have been acclimatized in New Zealand are the European perch, tench, and carp, the North American catfish (Ameiurus catus), and the small viviparous Gambusia patruelis introduced about 1930 for its utility as a devourer of mosquito larvae.

With the exception of the Rotorua Acclimatization District in the thermal lakes region and the Southern Lakes District in the South Island, which are under the control of the Department of Internal Affairs, the local administration and management of fresh-water fisheries are in the hands of acclimatization societies.

The Freshwater Fisheries Regulations 1951 contain provisions of general application with regard to limit bag, size limit, baits and lures, duration of season, etc. Such general regulations apply unless modification notices for particular districts are issued varying these limits.

A fishing licence, for which the fee for the season (opens 1 October and continues for seven months) is £2 in the North Island and £1 10s. in the South Island, enables the holder to fish for acclimatized fish in any part of New Zealand except the Rotorua Acclimatization District (which includes the Taupo Trout Fishing District) and the Southern Lakes Acclimatization District. For fishing in the Rotorua area and the Southern Lakes District the local licence fees are £2 and £1 10s. respectively for all male adults, but in the Taupo area of the Rotorua Acclimatization District, which is the most popular of all New Zealand angling resorts, the licence fees for each month are £1 for male adults, 10s. for females and males under seventeen years, with maxima of £3 16s., and £1 16s. for the full period of nine months; weekly licences are 10s. and 5s. respectively, and daily licences 2s. 6d. in all cases. For all acclimatization districts there is a reduced scale of licence fees for female and juvenile anglers. Monthly, weekly, and daily licences are also available, while half-season, weekend, and single-river licences are optional in some districts. The Taupo Trout Fishing (Special Season) Regulations 1954 provided for a special experimental open season from 1 June - 31 October 1954 in the district. A further open season was provided for 1955, while the 1956 and subsequent seasons will extend from 1 October to 30 June (a nine-month season).

The Fisheries Amendment Act 1953 provides for the establishment of fisheries experimental waters by Order in Council. In such cases the fresh water regulations applicable may be declared not to apply or to apply subject to modifications. Under this authority, Lake Waingata was declared a fisheries experimental water during 1954 and the Upper Hinemaiaia river in 1956.

The same amendment also enables the Governor-General under certain conditions to dispense with a close season for trout and salmon in any one or more years or to fix a close season of less than five months' duration for all or part of the waters of the district concerned.

Chapter 23. SECTION 23—MINERALS AND MINERAL PRODUCTION

Table of Contents

THE law relating to mining and quarrying is contained in the Mining Act 1926, the Coal Mines Act 1925, the Coal Act 1948, the Petroleum Act 1937, the Quarries Act 1944, and the Atomic Energy Act 1945. There have been numerous amendments to these Acts, the most recent of which are the Mining Amendment Acts of 1947, 1948, and 1953, the Coal Mines Amendment Acts of 1949, 1950, and 1953, and the Quarries Amendment Acts of 1951 and 1954. The Coal Mines Amendment Act of 1950 provides for the return to their previous owners of all coal and servitudes vested in the Crown by the Coal Act of 1948, but also ensures a greater measure of control of the working of privately-owned coal than that previously exercised. The Quarries Amendment Act 1951 removed opencast coal workings from the provisions of the Coal Mines Act and brought them within the scope of the Quarries Act 1944.

By the Quarries Amendment Act 1954 a holder of a mine manager's certificate under the Coal Mines Act 1925 or the Mining Act 1926 will, subject to passing the prescribed examinations, be entitled to a quarry manager's surface certificate. The term "quarry manager's surface certificate" has been replaced by "tunnel manager's certificate". Provision has been made for the establishment of Courts of Inquiry to conduct investigations into serious accidents in quarries or in underground tunnels. Other sections of the Act have generally strengthened the law in regard to the better and safer working of quarries and of underground tunnels.

By the Petroleum Amendment Act 1955, the Minister is required to specify at the time of the grant of the prospecting licence, the conditions on which a mining licence will be granted in exchange for a prospecting licence, and the conditions to which both will be subject; at the time of exchange the licensee has the right to specify the land desired to be in the mining licence.

The Minister may grant, subject to satisfactory compliance with the conditions of the prospecting licence, an extension of five years, with a maximum of grant and extension of ten years.

The Minister may suspend or modify the obligation to commence investigational work within three months of grant and drilling of at least one well within three years after grant or in such extended time as allowed under certain circumstances. These apply where an undertaking is given by the holder of or applicant for two or more prospecting licences (or holder of one and applicant for another) to conduct at a specified estimated cost such geological, geophysical, and other investigations into the licensed areas so as to ensure that these will have been fully prospected within the currency of the licence.

After consultation with the licensee, the Minister is empowered to direct the latter to refine the oil products in New Zealand, provided it can be done economically, and that the products are required in New Zealand.

Provision is made for the appointment of arbitrators and an umpire on questions of—

  1. The direction to refine petroleum in New Zealand;

  2. The extension of the term of a prospecting licence;

  3. The exchange of a mining licence for a prospecting licence.

MINERAL PRODUCTION.—The following statement shows the production of metals and minerals during 1954 and 1955.

Mineral19541955
QuantityValueQuantityValue

* A new classification.

Fuels
  £(N.Z.) £(N.Z.)
Coal2,594,256 tons6,879,0002,556,653 tons6,783,000
Petroleum (crude)239,800 gals.9,991199,510 gals.8,333
Natural gas5,020,000 cu. ft.8785,499,000 cu. ft.965
Metals
Gold41,713 oz.519,63126,443 oz.327,267
Silver33,049 oz.9,90627,930 oz.8,362
Platinum1 oz.38  
Iron ore2,916 tons4,0462,550 tons8,638
Manganese ore239 tons1,075159 tons715
Tungsten ore28 tons17,81430 tons28,514
Non-metallics
Asbestos  154 tons7,592
Bentonite582 tons6,588718 tons8,436
Clay for bricks, tiles, etc.223,112 tons276,009265,875 tons274,626
Clay for pottery fillers, etc.3,966 tons5,9853,903 tons6,246
Diatomite168 tons809556 tons688
Dimension stone for building10,443 tons16,87622,151 tons36,866
Dolomite2,025 tons2,0251,813 tons1,813
Limestone for agriculture1,535,995 tons1,382,6791,444,810 tons1,269,072
Limestone for industrial purposes21,498 tons15,96438,342 tons34,178
Limestone, marl, silica sand, etc., for cement503,900 tons137,228713,171 tons148,878
Magnesite720 tons720388 tons543
Perlite (manufactured value)146 tons7,008198 tons6,347
Pumice8,854 tons9,6087,741 tons10,023
Rock for harbour work223,348 tons102,750819,835 tons147,967
Salt1,500 tons9,0003,000 tons18,000
Sand, rock, gravel, etc., for building aggregate1,066,222 tons611,9802,248,294 tons1,262,766
Sand, rock, gravel, etc., for roads and ballast6,831,281 tons3,170,1939,164,691 tons5,127,560
Sand for industry*  41,360 tons36,772
Serpentine58,825 tons125,99081,640 tons192,480
Silica sand26,640 tons99,32023,712 tons89,674
  13,423,111 15,846,321

The next statement shows the value of New Zealand minerals and allied substances exported during the years stated.

£

Mineral195319541955Total From 1 January 1853 to 31 December 19
Gold364,912487,662260,809123,176,25
Silver10,5909,0673,0163,905,504
Tungsten ore45,52226,13617,180812,704
Antimony ore81  55,781
Mercury   41,319
Other minerals5,5849,92015,524784,475
Kauri gum42,64033,14847,79325,102,381
Coal (including bunker)10,7775,4543,9078,620,178

GOLD MINING.—The gold-mining industry, which in its early stages contributed greatly to the progress and settlement of New Zealand, but which declined in importance with the exhaustion of the more accessible alluvial-gold deposits and of ore from the zones of enrichment, again came into prominence in the years immediately prior to the war on account of the enhanced price of gold and the revival of gold dredging.

Gold-dredging possibilities presented an entirely new aspect not only on account of the price of gold, but also on account of the greater depths to which modern machines can work and their low cost of operation per cubic yard. Since 1940, however, there has been a steady decline in the production of gold. The decreased importance of gold mining to the community during the war period was responsible for man-power problems in the industry and difficulties in securing equipment. These difficulties were further accentuated by rising costs in the post-war years, and tax remissions to the extent of 34s. 8d. per ounce made by the Government to meet such costs, and the increased price of gold consequent upon the devaluation of sterling, have not been able to improve the position. A further attempt to assist the industry was the decision by which from 16 August 1952 producers or their agents holding gold-dealers' licences have been permitted to sell their gold production overseas on the open market provided the full proceeds of such exports were received by the banking system in United States dollars at not less than thirty-five dollars per fine ounce. Previously all gold was purchased by the Reserve Bank, the price being £12 5s. per fine ounce.

The principal reason for the decline in gold production, however, would appear to be the exhaustion of the gold-bearing areas, and this applies to the three recognized methods of mining.

The number of dredges in active operation during 1956 is four, three on the West Coast and one in Otago. As prospecting operations for new areas have now ceased, it is apparent that production of gold by dredging must continue to diminish.

No actual production of gold from quartz mines was made during 1955, although the cleaning up operations at the Martha Mine, near Waihi, resulted in a production of 2,695 ounces of gold and 27,496 ounces of silver. All operations at the Martha Mine have ceased. Largely owing to the exhaustion of ore reserves, for all practical purposes the active quartz-mining section of the industry may be regarded as finished.

Alluvial mining showed a slight increase during the year. The following table gives particulars of the estimated gold content of gold/silver/bullion production for the last three years.

QuantityValue
195319541955195319541955
 Oz.Oz.Oz.£££
Quartz mining3,56113,8322,69545,815169,43733,016
Alluvial mining1,5811,2071,35318,90913,15115,773
Dredge mining33,51420,67422,395423,979337,043278,478
      Totals38,65641,71326,443488,703519,631327,267

SILVER.—Nearly the whole of the locally produced silver exported from New Zealand was obtained from the refinement of bullion from the quartz mines of the Hauraki goldfield, where gold and silver are found alloyed, the ratio of the two metals in the alloy varying greatly.

With the closing-down of the Martha mine, the production of silver in New Zealand in any quantity may be regarded as finished.

PERLITE.—A new industrial mineral, perlite, was produced during 1955, 198 tons being obtained from deposits at Atiamuri and Ongaroto and processed at Wellington. The estimated value was £6,347. Recent tests have shown the New Zealand produced expanded perlite comes up to the standard required by the Perlite Institute of America.

IRON ORES.—The two main sources of iron available in New Zealand are the iron-ore deposits of the Onekaka region, Golden Bay, in the Nelson Provincial District; and the ironsands which are largely concentrated on the beaches of Taranaki, though not limited to that district.

As a result of a systematic prospecting programme of tunnelling and boring carried out by the State during the years 1938 to 1942, the ore reserves of the Onekaka deposits are estimated at 9,500,000 tons, assaying 40 per cent iron.

Although the whole of New Zealand's iron-bearing sands have not been surveyed, there is no doubt that the total quantity is enormous. As a result of prospecting operations by the State the titaniferous ironsands in the vicinity of Patea have been estimated as amounting to 45,500,000 tons, assaying 21 per cent soluble iron, which, by magnetic separation, would yield 14,500,000 tons of concentrates assaying 53 per cent soluble iron. Preliminary investigations at Wanganui and at Waitara have shown great quantities of sand but of lower iron content, while deposits at Mokau, Awakino, and Manukau still await investigation.

Many attempts have been made to smelt Taranaki ironsand, but commercial success has not attended any of these efforts. Difficulty has been experienced owing to the fineness of the sand and also to the presence of titanic acid. However, it is considered possible that these sands can be economically smelted if mixed in the proportion of 1 part of sand to 4 of Golden Bay ore. In 1949 large-scale tests on the smelting of ironsands by means of an electric furnace and the use of char obtained from sub-bituminous coal were carried out at Onekaka under the supervision of overseas experts. The tests showed that pig iron suitable for conversion to steel could be obtained from Taranaki ironsands by these means.

There has been a small annual production of iron ore from the Onekaka deposits and certain small deposits in the North Auckland district, for use in gas purification, the preparation of stock licks, and in the brickmaking industry.

Production in 1955 was 2,550 tons, 1,301 of these from Okaihau, 975 from Kamo, and 274 from Onekaka.

TUNGSTEN.—The principal ore of tungsten in New Zealand is scheelite, though a little wolfram is found in Otago and Stewart Island, but not in economic quantities.

Scheelite occurs at numerous points, frequently associated with gold, in quartz veins traversing the schists of Otago and Marlborough. It has also been identified in finely divided form in the concentrates from the gold-saving tables of dredges operating on the West Coast.

The scheelite-bearing quartz-veins are generally small and broken, while the scheelite is most erratically distributed in the veins, with the greatest concentration of scheelite situated close to the surface or at shallow depths. Further, many of the lodes occur at high altitudes, which allows of only a short working season; access and transport present difficulties, and production costs are relatively high.

In 1955, 30 tons of scheelite were produced as compared with 28 tons in 1954. The Glenorchy field was responsible for all this production. Other producing centres in Otago have been Stoneburn, Hyde, Barewood, Waipori, and McCrae's Flat.

COPPER.—Ores of copper are found in New Zealand in no fewer than thirty-two known localities, but during the last seventy years attempts at their successful exploitation have been unprofitable.

It is estimated that the total production of copper to the end of 1954 has amounted to 6,404 tons, valued at £124,302. There has been no production of copper ore in New Zealand since 1952.

MANGANESE.—Manganese ores are found in many localities, chiefly in the older sedimentary rocks. At Tikiora Hill (near Russell), at Parua Bay (near Whangarei), and especially at Waiheke Island, manganese deposits were mined many years ago, while of recent years there has been some production from deposits at Bombay, Moumoukai, and Otau, all in the Auckland district. Deposits are, however, generally small and shallow and capable of producing only limited tonnages of ore.

Production from Otau in 1955 totalled 159 tons, compared with 239 tons in 1954.

MERCURY.—Cinnabar, the principal ore of mercury, is widely distributed in New Zealand, but only in a few localities is it found in quantities of economic importance. The most promising deposits of mercury ore in New Zealand are those of the Puhipuhi district, where for many years efforts have been made to place the production of the metal on a commercial basis. During the war these efforts were revived and production recommenced, the ore being obtained by opencast mining and the mercury recovered in a modern treatment plant with a capacity of 50 tons of ore per day.

Owing to the drastic slump in the price and the need for additional earth-moving equipment, operations were discontinued in 1945.

The total quantity of mercury of New Zealand origin exported up to 31 December 1954 was 111,838 lb., valued at £41,319.

ANTIMONY.—The high price ruling for antimony ores again directed attention to the deposits of these ores in Central Otago, and prospecting operations were carried out at Mount Stoker in the Nenthorn Survey District, 5 tons of ore being obtained from these operations in 1949, as compared with 9 tons in 1948. There was no production in 1950 or in 1951, but 11 tons were produced in 1952. Attention was later directed to deposits at Endeavour Inlet, in Queen Charlotte Sound, and Langdon's Creek, near Greymouth. Twenty-two tons of antimony ore, valued at £124, were obtained at Endeavour Inlet and at Langdon's Creek in 1953. Both of these mines have now ceased production.

TIN.—Cassiterite in the form of "stream tin" occurs in small deposits near Port Pegasus, Stewart Island, and these have been worked to some extent. "Lode tin" has been found in the same locality, but the deposit is not of economic value. Small quantities of cassiterite have also been detected in the stream gravels of the Reefton, Greymouth, and Westport districts. Among other localities in which traces of tin occur are Wet Jacket Arm (Otago) and Campbell Island.

PLATINUM.—In the published lists of minerals of New Zealand, platinum is stated to occur in several places, associated generally with gold in gravel. It is only from Southland, however, that platinum has been exported, but quantities produced have been insignificant, and of late years negligible. There had been no production since 1946, when 14 oz. were produced, until 1951 when 8 oz. were produced. One ounce was produced in 1954 from the Roundhill claim in Southland. With the closing down of this claim the production of platinum has ceased.

URANIUM AND THORIUM.—Some interest was aroused by the discovery in 1955 of radioactive minerals in the vicinity of the Haast River in South Westland as it was considered that the minerals might have uranium content. Chemical analysis, however, showed that the radio-active properties were due to the presence of thorium and the mineral was identified as thorite. So far only float boulders of the material have been located and these have not been traced to their source. Thorium, though not of immediate value, promises to have potential value in nuclear-power generators and accordingly the discovery must be regarded as of some importance.

The discovery of radio-active material at Batty Creek in the Buller Gorge caused considerable excitement and resulted in applications for mining privileges over much of the surrounding area. The radio-active minerals occur in a steeply dipping lode, 4 ft. to 7 ft. thich, which traverses the Hawke's Crag Breccia and which so far has only been traced for a limited distance. Surface sampling has shown that most of the material has a low uranium content, but much of the outcrop shows signs of leaching. So far the uranium-bearing minerals have not been positively identified and up to the present no serious testing of the lode has been undertaken. It is of interest that prospecting of an area on the north side of the Buller River directly opposite the original discovery, has shown the existence of large float boulders of Hawke's Crag Breccia which are much more strongly radio-active and which show a high uranium content by assay. As yet no deposit of any magnitude has been located, but the area must be regarded as a most interesting prospecting venture. There is a considerable area of Hawke's Crag Breccia in this locality and, from the results already obtained, it should command the serious attention of prospectors.

SULPHUR.—Native sulphur occurs in the thermal districts of the North Island near Rotorua and Lake Taupo and at White Island. From an area at Rotokaua, in the Taupo region, 486 tons of sulphur were produced in 1952, the first production of sulphur for many years. No sulphur has been produced since 1952.

ASBESTOS.—Chrysotile asbestos occurs at several points in the massive serpentines of Nelson and Otago, but the only deposits of importance so far located are those of Upper Takaka in the Nelson district. While these deposits have long been known, difficulties of access have prevented prospecting and exploitation, but of recent years an all-weather motor road has been formed giving access to the area. An experimental treatment plant was installed, and a systematic prospecting programme of driving and crosscutting carried out. This programme was completed early in 1945, when active development was suspended. Operations were, however, resumed in 1950 and continued on an increasing scale in 1951, but owing to the easing of the overseas supply position, were on a reduced scale in 1952, with production ceasing in 1953. In 1955 production of asbestos was resumed with 154 tons of fibre valued at £7,592.

COAL.—Coal in New Zealand has for many years been mined in certain well-defined areas, beyond which no coal is known to exist in any significant quantities. The major coalfields, with the class of coal found in each, are—

  • Bituminous Coal (Coking): Greymouth, Westport (Buller Coalfield).

  • Sub-bituminous Coal (Non-coking): Waikato (including North Taranaki), Otago (Kaitangata), Southland (Ohai), Reefton.

  • Lignite (Non-coking Low Grade): Southland (Mataura).

Minor coalfields from which coal is being mined, but which cannot be expected to provide an important contribution to our coal resources, are—

  • Sub-bituminous Coal: North Auckland (Hikurangi, Kamo), Nelson (Puponga, Westhaven).

  • Lignite: Canterbury (numerous small deposits), Otago, Charleston (Westport).

Coal Utilization and Research.—The Coal Research Committee, which has done much valuable work in the past, has to some event outlived its usefulness in its present form. It has disbanded and in its stead three separate committees have been formed. They are:

  • Coal Resources Committee,—Two officers of the Mines Department with the Director and such other officers of Geological Survey as may be deemed appropriate.

  • Coal Mining Research Committee.—The Chief Inspector of Coal Mines with two other officers of the Mines Department, together with the Professor of Coal Mining at Otago University. This committee is under the aegis of the Mines Department.

  • Coal Utilization Committee.—Deputy Secretary of Department of Scientific and Industrial Research (Chairman), Under-Secretary of Mines, Directors of Dominion Laboratory and Auckland Industrial Development Laboratory, Dean of the Canterbury School of Engineering, representative of State Hydro-electric Department, and representatives of coal wholesalers and retailers, and of the gas industry.

  • A technical sub-committee comprises officers of the Dominion Laboratory, Auckland Industrial Development Laboratory, Dairy Research Institute, and Mines Department. This Committee and sub-committee are under the aegis of the Department of Scientific and Industrial Research.

It is expected that the reorganized committees will be better equipped to deal with the many problems facing the coal industry and to ensure as far as practicable that the fullest and most efficient use is made of our native fuel and power resources.

Inter-Departmental Committee on Fuel.—This committee, which was set up in 1954, continues to do valuable work in ensuring the use of local fuels in Government and other public buildings and institutions where it is reasonable and practicable to do so.

Survey of Coal Resources.—In recent years the investigation of coal resources has been carried on in three phases: (i) mainly geological and chemical activities; (ii) detailed topographical surveys and shallow prospecting by means of cuts, pits, and hand drilling; (iii) investigations by deep-core drilling.

As a result of the intensive work considerably more information is available. This matter was considered jointly by officers of the Geological Survey and Mines Department, and a new estimate prepared based on information obtained from the Mines Department as to reserves of operating coal mines and of closely drilled areas, and from the Coal Survey as to reserves of the districts surveyed. The classification accepted—"measured," "indicated," and "inferred"—is that used by the United States Bureau of Mines and the Commonwealth Mineral Resources Survey. These terms are simply defined as follows:

  1. "Measured coal" is coal for which tonnage is computed from dimensions revealed in outcrops, trenches, workings, and drill holes and for which the grade is computed from the results of detailed sampling. The sites for inspection, sampling, and measurements are so closely spaced and the geologic character is defined so well that the size, shape, and content are well established. The computed tonnage and grade are judged to be accurate within limits, and no such limit is judged to differ from the computed tonnage or grade by more than 20 per cent.

  2. "Indicated coal" is coal for which tonnage and grade are computed partly from specific measurements, samples, or production data and partly from projection for a reasonable distance on geologic evidence. The sites available for inspection, measurement, and sampling are too widely or otherwise inappropriately spaced to outline the coal completely or to establish its grade throughout.

  3. "Inferred coal" is coal for which quantitative estimates are based largely on broad knowledge of the geological character of the deposit and for which there are few, if any, samples or measurements. The estimates are based on an assumed continuity or repetition for which there is geologic evidence; this evidence may include comparison with deposits of similar type. Bodies that are completely concealed may be included if there is specific geologic evidence of their presence.

These clearly and specifically defined terms have wide international acceptance.

The figures in all cases represent recoverable coal and not coal in ground.

The following are the total coal resources of New Zealand based on all available information in 1955.

Tons

MeasuredIndicatedInferred
Bituminous40,000,00033,000,00051,500,000
Sub-bituminous106,200,000126,100,000307,500,000
Lignite16,300,00042,000,000310,000,000
      Totals162,500,000201,100,000669,000,000

From time to time concern has been expressed that reserves of measured, recoverable coal are of so low an order in New Zealand. It must, however, be recognized that to establish reserves of this type it is necessary either to block them out by underground development or to define them by close boring, and sound mining practice demands that such reserves should bear some relationship to the scale of the industry and the annual production required. Actually, measured reserves of coal in each class, bituminous, sub-bituminous, and lignite, are sufficient to maintain the present rate of production for a term of years far in excess of those demanded by recognized mining practice and it is accordingly questionable whether, from some aspects, reserves are accordingly too high rather than too low, and there is no justification for the concern expressed.

The following table shows the quantitative grouping in the various coalfields of New Zealand, totalling 1,032.6 million tons, set out under the three rank divisions.

Tons

MeasuredIndicatedInferred
Bituminous
Buller28,000,00016,000,00015,000,000
Murchison  1,500,000
Garvey Creek1,000,0002,000,0005,000,000
Greymouth11,000,00015,000,00030,000,000
  Totals, bituminous40,000,00033,000,00051,500,000
Sub-bituminous
Northland1,500,000500,0003,000,000
Maramarua52,000,0006,000,0005,000,000
Huntly30,000,000105,000,0005,000,000
Kawhia100,000500,0005,000,000
Mangapehi1,800,000600,0001,000,000
Tatu1,500,000600,000500,000
Waitewhena400,000900,00011,000,000
Mokau  60,000,000
Nelson200,000 2,000,000
Buller Gorge  1,000,000
Reefton1,700,0004,000,0008,000,000
Fletcher Creek  3,000,000
Punakaiki  2,000,000
Kaitangata2,000,000500,000100,000,000
Ohai15,000,0007,500,000100,000,000
Orepuki1,000,000  
  Totals, sub-bituminous106,200,000126,100,000307,500,000
Lignite
Charleston6,000,0002,000,0008,000,000
Canterbury250,000 20,000,000
North Otago250,000 2,000,000
Central Otago250,000 15,000,000
Green Island250,000 3,000,000
Kaitangata4,300,00020,000,000100,000,000
Pomahaka  10,000,000
Mataura Valley5,000,00020,000,000152,000,000
  Totals, lignite16,300,00042,000,000310,000,000
  Grand totals162,500,000201,100,000669,000,000

The next survey of coal resources in New Zealand is due to be made in 1960.

Summary of Operations.—The following table summarizes coal-mining operations.

YearOutput (Tons)Persons Ordinarily EmployedLives Lost by Accidents In or About Collieries
SurfaceUndergroundTotalsPer Million Tons ProducedPer Thousand Persons EmployedLives Lost
Prior to 1946109,083,130562     
19462,793,8701,7383,8195,5571.430.724
19472,751,7251,7033,7395,4421.430.734
19482,775,8861,7403,8425,5821.800.905
19492,813,2751,8684,0095,8771.070.513
19502,669,4511,7733,8155,5881.120.543
19512,435,5051,6763,3865,0622.050.985
19522,750,2131,6103,4825,0921.450.544
19532,518,7151,6083,3404,9480.790.402
19542,594,2561,5063,2854,7911.540.834
19552,556,6531,4943,0354,5291.570.894
  Totals135,742,679     600

The output of the several classes of coal mined in each inspection district during 1955, together with the total output to the end of that year, are shown in the next table. District totals for 1954 are also given.

CLASSIFICATION OF COAL PRODUCED        Tons

Class of CoalNorthern District (North Island)West Coast District (South Island)Southern District (South Island)TotalTotal Output to 31 December 1955
Anthracite  1,5051,50529,453
Bituminous 766,54715,663782,21068,097,171
Sub-bituminous1,078,111156,487355,5961,590,19458,519,512
Lignite 12,814169,930182,7449,096,543
    Totals for 19551,078,111935,848542,6942,556,653135,742,679
    Totals for 19541,081,833964,078548,3452,594,256133,186,026

During 1955, 185 mines were in operation. Of these, 62 mines operated wholly or principally on freehold land and the remaining 123 wholly or predominantly on Crown land.

Output from freehold land was 1,143,287 tons (44.7 per cent) and output from Crown land 1,413,366 tons (55.3 per cent).

Underground Mines.—The following table gives particulars of the operations of underground mining during the last eleven years.

Calendar YearOutput (Tons)Men Employed UndergroundTons Per Man UndergroundMen Employed on SurfaceTons Per Man on Pay-roll
19452,380,8963,9326061,328453
19462,265,1703,8195931,313441
19472,107,0333,7395641,271421
19482,099,1583,8425461,285409
19492,071,2884,0095171,368385
19501,956,9553,8155131,334380
19511,479,3733,3864371,230320
19521,914,5423,4825501,204408
19531,872,9783,3405611,259407
19541,888,1363,2855751,172424
19551,789,3473,0355901,152427

Of late years the output per hewer shift has risen slightly, and there has been an overall increase in output per man on pay roll.

Opencast Mines.—Production of coal from opencast mines in 1955 amounted to 767,306 tons, which was 61,186 tons more than the production achieved in 1954. The proportion of the total production of coal obtained from opencast mines amounted to 30 per cent.

There were sixty opencast mines in operation in 1955, and of these ten operated by the State produced 364,841 tons. All of these State mines have come into production since the beginning of 1944. The progress of opencast mining during the last twelve years is illustrated by the following table.

YearOutput (Tons)Men EmployedTons Per Man Employed
1944196,454242812
1945452,6803321,363
1946528,7004251,244
1947644,6924321,492
1948676,7284551,487
1949741,9875001,484
1950712,4964391,623
1951956,1324462,144
1952835,6714062,058
1953645,7373491,850
1954706,1203342,114
1955767,3063422,243

Derived Products,—The Government is keeping abreast of latest developments in regard to the production of oil from coal by the hydrogenation and the low-temperature carbonization processes. A large amount of investigation into fuel problems was also carried out, and many analyses of coal and other fuel samples were made.

Low-temperature carbonization works, using the Lurgi process, established at Rotowaro, 70 miles south of Auckland, in 1931, produced during 1955, 13,137 tons of carbonettes, 272,270 gallons of tar and oil, and 2,155 tons of char from 26,292 tons of slack coal, which was part of the output of a group of local mines.

The Sockburn plant, near Christchurch, produced 24,547 gallons of tar and 5,861 tons of coke during 1955.

Coal Consumption.—The approximate distribution of coal consumption during each of the five years 1951-55 is shown in the following table. The total quantity is based on actual production in each year plus imports and minus exports (including bunker coal for overseas vessels). Where the information is available, adjustments have been made for stocks on hand at the beginning and end of the year.

Tons

19511952195319541955

* Includes hospitals, hotels, etc.

Railways444,000435,000416,000399,000371,000
Coastal shipping37,00036,00033,00035,00029,000
Gasworks260,000289,000279,000266,000268,000
Factories*1,174,0001,378,0001,237,0001,359,0001,383,000
Households540,000590,000550,000550,000520,000
      Total consumption2,455,0002,728,0002,515,0002,609,0002,571,000

Mercer Power Station.—Of the greatest importance to the coal industry has been the Government's decision to build the coal-fired steam-generating station at Mercer. This station, of 180,000 kW. capacity, will require 600,000 to 800,000 tons of coal per annum. It is proposed that one-third of the coal requirements will be provided from the Huntly coalfield from existing mines plus some additional opencast development.

The remaining two-thirds will be provided from the Maramarua coalfield about 7 miles distant from the station. Initially it is expected that most of the Maramarua quota will, of necessity, be supplied from opencast development, but it should be possible within ten years to mine 25 per cent of this quota from underground sources to conserve opencast coal in this district.

These proportions will ensure continuity of production and employment at Huntly, and at the same time ensure that the better-quality Huntly coals are not used up at a greatly accelerated rate for the one power undertaking.

State Coal Mines.—The Coal Mines Act 1901 provided for the purchase and working of State coal mines in New Zealand under the direct control of the Minister of Mines. At 31 December 1955 there were thirty-six State coal mines working.

The output of coal produced from Slate coal mines for the last two financial periods is shown below.

Tons

Name of MineYear Ended 31 December 1954Year Ended 31 December 1955
Gross Output (a)Net Output for DisposalGross Output (a)Net Output for Disposal

(a) Includes surplus stock brought on charge or amended for stock deficiencies.

(b) Coal won from development work during 1954.

(c) Tonnages for coal used on works, waste, workmen, and free are apportioned with opencast production.

(d) This part of mine now leased.

(e) Work stopped at Tyneside in July 1954.

(f) Birchwood ceased production 23 March 1954.

(g) Production commenced 11 May 1955.

(h) Production ceased 10 May 1955.

Underground Mines
Kamo52,44451,10249,31248,113
Alison78,81177,16077,10276,388
Rotowaro89,91685,75484,75179,370
Renown79,45177,04768,78866,765
Wilton50,69748,81341,02139,712
Mangapehi30,67729,75923,73922,784
Tatu32,84431,04636,73034,846
Denniston87,76884,59070,58367,337
Sullivan (b)5,1835,18317,84517,638
Millerton52,77851,34144,16542,890
McCabe's (c)21,46821,03723,10322,650
Stockton (c)36,04235,39357,76056,797
Webb (c)15,14914,83118,40618,036
Burke's Geek34,56333,53224,41423,621
Garvey Creek (d)102102  
Blackball55,56553,40952,06749,632
Dobson53,50349,43265,77161,315
Paparoa23,71223,152 22,093
Tyneside (b)(e)1,9491,949  
Wallsend44,15741,68843,60741,580
Liverpool114,539110,37885,42181,370
Strongman98,07090,39091,96883,986
Birchwood (f)4,5454,332  
Linton79,14476,52476,21873,543
Morley (b)6546548,9718,861
Star26,83825,45623,02521,793
Wairaki96,82591,215100,70994,742
      Totals1,267,3941,215,2691,208,0971,155,862
Opencast Mines
Barker's88,03188,01394,80894,649
Devlin and Bell's28,49428,47151,76751,746
Kimihia71,58171,47988,37888,262
Waitewhena16,51916,47516,23716,187
Denniston4,0244,024  
Stockton (c)11,70011,45611,50611,319
Garvey Creek: S.E.11,78411,6938,9208,801
Garvey Creek: N.W.1,9201,920  
Wangaloa14,11914,04123,09623,015
Black Diamond29,84129,8313,8853,883
McLean's3,9283,928  
No. 7 Opencast (g)  52,49352,493
No. 9 Opencast Ohai (h)47,33447,33414,48614,486
      Opencast totals329,275328,665365,576364,841
      Underground totals1,267,3941,215,2691,208,0971,155,862
      Grand totals1,596,6691,543,9341,573,6731,520,703

The average number of persons employed in and about State mines during the year ended 31 December 1955 was—underground, 1,979; surface, 989: total, 2,968. Surface workers include 180 employed at the thirteen State opencast mines operating during the period.

Financial.—Sales of coal, etc., through the medium of the depots totalled 1,495,646 tons (value, £6,121,254) for the year ended 31 December 1955. This compares with 1,498,252 tons (value, £6,133,556) for the year ended 31 December 1954.

The profit on trading before providing for interest on capital for the year was £118,404. The surplus in Accident Insurance Account, however, was £41,631, and increases in other specific reserves totalled £49,581, thus the total surplus for the year was £209,616. The interest charge on loan capital was £249,749, of which £241,062 was remitted.

The only amount available to meet the statutory sinking fund instalment was the year's profit of £109,717.

Capital expenditure on fixed assets during 1955 was £433,608. Depreciation written off was £339,358, so that the net valuation of fixed assets increased by £94,250.

Housing.—Employees in State coal mines may be granted loans for the erection of new homes, the purchase of existing ones, or for repairs and renovations. During the year ended 31 December 1955 the number of loans granted was forty-five for a total amount of £40,769. All these loans were for the purchase of existing houses. During the period this scheme has been in operation some 563 loans have been granted for a total amount of £387,548. The erection of new houses accounted for 165; purchase, 361; and repairs, etc., 37.

Accident Insurance.—The number of compensable accidents at State coal mines for the year ended 31 December 1955 was 1,549, as compared with 1,692 for the year ended 31 December 1954.

The cost of claims per cent on wages paid amounted to £3 12s. 11d. for the year, compared with £5 3s. 11d. for the previous year.

The Accident Insurance Working Account showed a surplus of £41,631 for the year ended 31 December 1955 as compared with £435 for the previous year. The surplus was transferred to the Accident Insurance Reserve. At 31 December 1955 this reserve stood at £341,090.

PETROLEUM.—Indications of the presence of petroleum are found on the surface in North Auckland, at Moturoa near New Plymouth and elsewhere in Taranaki, over wide areas on the eastern coast of the North Island, and in the South Island at Kotuku, near Murchison, and in the Cheviot district. In earlier years drilling had been carried out in Taranaki, Hawke's Bay, Canterbury, Southland, and Westland, the deepest hole being at Moturoa, near New Plymouth, which attained a depth of approximately 6,000 ft. Petroleum of good quality was proved to exist, but only in limited quantity.

After the passing of the Petroleum Act 1937 considerable interest was displayed by some of the major oil organizations, and practically all the potential oil-bearing lands in New Zealand were held under petroleum-prospecting licences.

A great amount of geological and geophysical work was carried out on licensed areas and, in addition to many thousands of feet of core drilling for geological and geophysical purposes, thirteen deep holes were drilled on favourable structures located by the geological work. The deepest hole attained a depth of 10,925 ft., and the total footage drilled amounted to 73,565 ft. The results of this drilling were consistently disappointing, as all the wells proved dry.

Towards the end of 1950 geologists of the Anglo-Iranian Oil Company, assisted by members of the New Zealand Geological Survey, commenced a survey of all available information obtained from past oil-prospecting activities and a review of geological literature on the subject, preparatory to a fresh assessment of New Zealand's oil resources.

Interest in the search for oil in New Zealand has been maintained and at the present time, 120 petroleum prospecting licences covering an area of 19,354 square miles have been granted.

These licences are distributed as under:

DistrictNumber of LicencesArea Square MilesDistrictNumber of LicencesArea Square Miles
Taranaki335,662Canterbury111,973
Gisborne, Hawke's Bay, Wairarapa5810,152Otago130
   Southland2150
Auckland7697Westland5489
Bay of Plenty166   
Marlborough2135      Totals12019,354

During the year 1955, 199,510 gallons of crude oil were obtained by Egmont Oil Wells Ltd. from the Moturoa field near New Plymouth. This compares with 239,800 gallons in 1954, 278,100 gallons in 1953, 302,870 gallons in 1952, 185,710 gallons in 1951, and 232,297 gallons in 1950. In addition, 5,499,720 cubic feet of natural gas, chiefly methane, were supplied to the New Plymouth Gas Co. for domestic and industrial use, as compared with 5,020,864 cubic feet during the year 1954, and 5,820,000 cubic feet during the year 1953.

Due to the lack of pumping equipment, No. E5 well was out of production during the first half of the year, while No. E6 well, sunk to 2,386 ft. in June, has not yet been put on a producing basis.

Crude Oil RecoveredDistillations

* Includes output from 1D well from September.

Well No.Gallons Gallons
14,550Motor spirit37,360
257,630Distillate4,800
438,530Power kerosene43,695
1D51,200Diesel oil46,640
E547,600*Residual oil56,965
      Total199,510      Total189,460

Work has continued on the rebuilding of the refinery on a new site but has not yet reached completion.

The areas in Taranaki are held by Shell-D'Arcy and Todd Oil Services Limited, and this company commenced field work in Taranaki in November. Two geological parties are active, one in the north part of the Taranaki basin and the other in the younger tertiary formations of Taranaki proper.

A study of aerial photographs and preparation of photo-geological maps are also under way, while geological studies of a more regional character are being carried out.

Seismic operations have been commenced by this company in Taranaki and a gravity party and also a magnetic party are busy in this area. The seismic programme calls for a minimum period of three years' field work, but the gravity and magnetic operations are expected to be of possibly six months duration only. It is not expected that the drilling stage will be reached before mid 1957.

Geological work is also being done in the Gisborne area by Todd Bros., Limited, and increased activity in this district is expected in the near future.

A certain amount of exploratory work is being done in other areas. At Oamaru, the North Otago Development Company Limited has drilled a hole to a depth of 2,980 ft., but at this point the drill rods broke some 400 ft. from the bottom and drilling has been abandoned meantime.

The total production of crude petroleum to 31 December 1955 is estimated at 5,424,603 gallons, 199,510 of which were obtained in 1955.

BENTONITE.—The most promising deposits of this mineral occur at Porangahau, in the Hawke's Bay district, and at Mangatu, near Gisborne. Bentonite is mainly used in the preparation of foundry moulding-sands and drilling muds, but the mineral has many other uses. With the installation of treatment plants, bentonite in a marketable processed form is now available instead of the crude, lump, sun-dried form previously produced. The total quantity of bentonite produced to the end of 1955 was 6,393 to is, of a value of £52,194.

KAURI GUM.—Production of kauri gum has decreased in recent years. The industry suffered a severe setback through the restriction of European markets during the period of the First World War; and, while some recovery was made in the five years immediately following the war, trade in this commodity has since been at a comparatively low level.

During 1955, 411 tons of kauri gum, valued at £47,973, were exported, the total quantity of gum exported to the end of 1955 being 457,974 tons, valued at £25,102,381.

PHOSPHATE.—The occurrence of phosphate has been reported from many localities in New Zealand, but so far the deposits of Clarendon and Milburn have proved to be the only ones of economic importance. From 1902 to 1924 these deposits were actively worked, and 141,843 tons of medium-grade phosphate rock were produced. Active mining commenced again in 1943. During the years 1943 and 1944, 7,488 tons of medium-grade phosphate rock were produced, while from 1943 to 1947 the production of low-grade phosphate rock amounted to 40,887 tons. The resumption of imports of rock phosphates from Nauru coincided with the exhaustion of the more favourable sections of the deposit, and operations were terminated early in 1947.

SERPENTINE.—Serpentine, which in the South Island forms vast rock masses in Nelson and Otago, and which occurs in smaller amounts in the North Island, is now of value to the fertilizer industry in the preparation of serpentine superphosphate. Production at first was mainly confined to the smaller occurrences in North Auckland owing to ease of access and transport, but production is now made from much larger deposits at Piopio, near Te Kuiti, in the North Island, and near Mossburn, in the South Island. To the end of 11955, 725,200 tons of serpentine had been mined, including 81,640 tons in 1955.

GREENSTONE.—The mineral nephrite, the "pounamu" of the Maori, a deep-green semi-transparent mineral with dark opaque patches, more popularly known as one of the varieties of "greenstone," occurs as rounded segregations in the talc or talc-serpentine rocks of the Griffin Range of north Westland. The principal supply was obtained from the gravels of the Arahura and Taramakau Rivers, and from gold-sluicing claims of the Kumara district. Some of this has been cut and polished in New Zealand for personal and other small ornaments; the remainder has been exported. With the decline in sluicing operations, this mineral has been in short supply.

SALT.—An entirely new departure in mineral production is at present in its early stages at Lake Grassmere, in Marlborough, where salt is being produced by the solar evaporation of seawater. The low rainfall, long hours of sunlight, and the wind conditions make this locality the most suitable one in New Zealand for this purpose. Salt harvested in 1952 totalled 700 tons of value £4,200. Owing to unfavourable weather conditions, there was no production in 1953, but in 1954, 1,500 tons valued at £9,000 was produced, and in 1955, the harvest was 3,000 tons valued at £18,000.

BUILDING AND ORNAMENTAL STONES.—New Zealand possesses a great variety of handsome and durable building stones scattered throughout both Islands. In Auckland there are basalt, andesite, porphyrite, and quartz biotite-diorite, known in the building trade as Coromandel "granite," a hard, coarsely crystalline rock, capable of taking a fine polish. In addition, there are the Whangarei limestone and the Raglan stone, the former an excellent building stone, the latter a good freestone. Taranaki has the hornblende andesites of New Plymouth and Mount Egmont, and Wellington the andesites of Ruapehu.

In Nelson there are the granite of Tata Island and Tonga Bay and the marble or crystalline limestones of the Pikiruna (Riwaka) Range. West Nelson and Westland are well provided with granites and limestones of good quality, well adapted for building purposes; and in the Griffin Range, north Westland, there is found an abundance of finely coloured serpentine, unsurpassed as a decorative stone. Building stone is scarce in Marlborough, but Canterbury is well supplied, having an abundance of Lyttelton bluestone (andesite) and Mount Somers stone, a limestone of exceptional quality. In Otago there is an abundance of excellent building stone, ranging from the well-known Oamaru stone to the granite, gneiss, and limestones of Fiordland, all close to deep water. In Southland there are the so-called Ruapuke "granite," the norite of the Bluff, and the granites of Stewart Island.

The lower story of Parliament Buildings is constructed of Coromandel granite, and the upper stories of Takaka marble.

OUTPUT OF QUARRIES.—The following table relates to quarries under the Quarries Act and shows the output for the year 1955. The classification given in this table differs in certain minor instances from that given on page 595.

North AucklandSouth AucklandCentral
QuantityValueQuantityValueQuantityValue
  £ £ £
Asbestos      
Bentonite    7188,436
Clay (bricks and tiles, etc.)114,41668,02033,000165,00047,15615,799
Clay (pottery, etc.)8001,860    
Diatomite  327523  
Dolomite      
Limestone (agriculture)174,710183,041128,26693,489169,099142,290
Limestone (cement)373,00062,825    
Limestone (industry)1,4203,9708,0855,6649,3786,890
Marl (cement)      
Magnesite      
Perlite  198742  
Pumice  1,4094,3426,3325,681
Rock (harbour and river protection)  33,68620,53029,45817,651
Rock (building aggregate)168,846196,384258,880204,253168,29294,906
Rock (roads, ballast, etc.)2,209,0382,048,1141,903,7131,208,8311,619,419726,658
Gravel and sand (building aggregate)116,397180,676208,770153,678350,735181,830
Gravel and sand (roads, ballast, etc.)86,18678,950689,508211,944175,78880,235
Sand for industry16,83526,67121,1627,466  
Serpentine8,50017,00058,400146,000  
Silica sand for glass19,65888,052    
Stone dimension for building6,68211,4621,3408,848  
Totals3,296,4882,967,0253,346,7442,231,3102,576,3751,280,376
West CoastSouthernDominion Totals
QuantityValueQuantityValueQuantityValue

Number of men employed: North Auckland, 1,056; South Auckland, 963; Central, 762; West Coast, 472; Southern, 681; total, 3,934.

  £ £ £
Asbestos1547,592  1547,592
Bentonite    7188,436
Clay (bricks and tiles, etc.)3,02092768,28324,880265,875274,626
Clay (pottery, etc.)3921,4152,7112,9713,9036,246
Diatomite  229165556688
Dolomite1,8131,813  1,8131,813
Limestone (agriculture)163,886136,504808,849713,7481,444,8101,269,072
Limestone (cement)154,68034,331121,06448,426648,744145,582
Limestone (industry)5,23013,12814,2294,52638,34234,178
Marl (cement)25,67071438,3202,55563,9903,269
Magnesite388543  388543
Perlite    198742
Pumice    7,74110,023
Rock (harbour and river protection)574,14868,772182,54341,014819,835147,967
Rock (building aggregate)7,9452,47035,69224,759639,655522,772
Rock (roads, ballast, etc.)43,6105,679177,560106,1875,953,3404,095,469
Gravel and sand (building aggregate)46,09711,227886,640212,2831,608,639739,694
Gravel and sand (roads, ballast, etc.)805,085237,7701,464,784423,1923,221,3511,032,091
Sand for industry437272,9262,60841,36036,772
Serpentine  14,74029,48081,640192,480
Silica sand for glass  4,0541,62223,71289,674
Stone dimension for building32249113,80716,06522,15136,866
      Totals1,832,877523,4033,836,4311,654,48114,888,9158,656,595

The Quarries Act 1944, which repealed the Stone Quarries Act 1910 and its amendments, includes any place with a face of more than 15ft. in depth, in which persons work in excavating any kind of material from the earth, with the exception of coal (other than opencast coal workings). gold, scheelite, or petroleum. It does not apply to any road or railway cutting, or to excavations for buildings, but does include any tunnel of more than 50 ft. in length in the construction of which explosives are used, and excavations for hydro-electric dams and reservoirs. The Quarries Amendment Act 1951 places opencast coal workings under the scope of the Quarries Act 1944.

PERSONS ENGAGED.—The following table shows the number of persons employed in or about mines and stone quarries during each of the last five years.

19511952195319541955
Metalliferous mines915536426318277
Coal mines5,0625,0924,9484,7914,529
Stone quarries and tunnels1,9162,7322,9823,6584,134
      Totals7,8938,3608,3568,7678,940

Accidents in mining and quarrying operations in 1955, with 1954 figures in parentheses, resulted in four (4) deaths in coal mines, nil (nil) in metalliferous mines, and seven (6) in quarries and tunnels. In addition, twenty-two (31) persons were seriously injured in coal mines, nil (2) in metalliferous mines, and fifteen (18) in quarries and tunnels.

STATE AID TO MINING.—State aid to mining in New Zealand is given in several forms—viz., (1) geological survey and bulletins; (2) financial aid to prospecting; (3) schools of mines; (4) subsidized roads to mining fields.

Geological Survey.—There has been an intensification of geological work on problems of structural control and distribution of geothermal steam. A new approach to the problem of steam occurrence and accumulation has resulted in a concept of fault control. This concept has to some degree been sustained by successful well-siting. Air photographic interpretation has played no small part in delineating the active fault pattern of the Wairakei area. The area is one where active faults revealed by recent erosion are known to occur grouped in patterns. The photo-interpretation techniques used were those developed during the air-photo study of quaternary tectonics.

The advances made in our knowledge of the succession of Cretaceous rocks during the previous year have been continued in the Gisborne - East Cape area. Geological mapping has been continued on a four-mile scale. The results of this work have been of considerable interest to the holders of oil concessions in that area.

During the year many people prospected for uranium and thorium. They received guidance from a pamphlet published by the Geological Survey Branch. In November 1955 two prospectors reported finding a radioactive deposit on the roadside near Batty's Creek in Buller Gorge. Analysis of specimens showed that the rock contained sufficient uranium for economic working, if the deposit was extensive and extraction of the metal presented no difficulties. Examination by officers of Mines Department and Geological Survey showed that the lode was only 4 to 9 ft. wide and could only be traced for several chains. A sample collected across the face contained a somewhat lower content of uranium than the first sample. The lode is worth driving on, for at depth, where the rock is less oxidized, the uranium content may be higher. The find was important in that it gave a lead on the type of country that is well worth prospecting.

A find of radioactive mineral in the Haast Valley below Square Top was announced by a prospector. Analysis of a sample from a boulder showed that the mineral contained a fairly low content of thorium. A survey of the area in company with the finder failed to find the outcrop from which the boulder came. More prospecting is warranted in the Haast Valley.

The uranium in the Hawke's Crag Breccia is so finely distributed that attempts to separate the mineral, both in New Zealand and Great Britain, have proved unsuccessful. The radioactivity appears to be localized in the ferruginous matrix and possibly the uranium is present, not as a distinct mineral, but as a fine dissemination of absorbed material. Further study, both in the field and laboratory, is required to ascertain the nature and source of the uranium; such a study may point to a primary uranium mineral at depth.

Thorium radioactivity in rocks from the Haast River area is due to the presence in the migmatite (gneiss) rock of thorite (thorium silicate).

REGIONAL PROJECTS: Geological.— Surveys on one inch to a mile of subdivisions in National Park, Murchison, South Canterbury, and Southland districts are being continued. The field work in the Amberley (North Canterbury) and Takitimu (Western Southland) subdivisions is complete. Mapping on four miles to an inch was continued in the East Cape area of the North Island aimed at classifying Cretaceous stratigraphy and geological history.

Paleontology.—Revision of Jurassic Stratigraphy and Ammonites of Kawhia Harbour. Determination of Permian Fauna of Southland. Microfaunal correlations of Upper Oligocene of Auckland and Waikato.

Petrology.—Petrological study of the metamorphic rocks in the Murchison area is nearing completion.

Ground Water.—Ground water continues to occupy attention particularly in Auckland, Hawke's Bay, and Canterbury areas.

Coal.—Survey of the Waikato coalfield is near completion; diversion of effort to other work has slowed this project.

Four-mile Geological Survey Map.— Using data of existing, and where necessary additional, surveys the compilation of information for the four-mile geological maps of New Zealand commenced. This stocktaking of geological knowledge is planned to culminate in 1965 with the appearance of a four-mile geological atlas of New Zealand.

SPECIAL PROJECTS: Quaternary Tectonics.— Work continues on the mapping of active faults by photo-interpretation and field mapping. Planned use is being made of the generous collaboration of Civil Aviation Department during calibration flights to obtain air photographs, both vertical and obliques of all the important faults under suitable lighting conditions.

Pleistocene History.—Mapping of P eistocene deposits has continued and elucidation of Pleistocene history used by C. 14 age determinations is continuing. Active studies of this project are being carried out in Southland, Canterbury, Westland, Wellington, Rotorua. and in the Waikato.

Paleontology.—Revision made of New Zealand Belemnites, Cretaceous and Tertiary Corals, New Zealand Cretaceous Inoceramus, Monograph on revision of Foraminifera of Oligocene stages.

Geological Map of New Zealand.— A new geological map of New Zealand on 1. 2,000,000 has been prepared and publication is proposed in the coming year. A simpler version of the map, together with a short description note, will appear in the proposed national atlas. At the same time the preparation of a new mineral map is proceeding.

INDUSTRIAL AND ROUTINE PROJECTS: Foundation Problems.— Foundations of dams and bridges continue to claim considerable attention. Most work of this nature has been in Auckland and Otago districts. An increasing demand is being made on the Survey for systematic geological studies of road-metal aggregate sources.

Coal Mines.—Advice to mine operators in the principal coalfields of New Zealand continues as an important follow-up of regional work in the coalfields.

Agricultural Minerals.—Limestone deposits were examined in all parts of the country. Serpentine deposits at D'Urville Island have been revisited in view of likely future development.

Geothermal.—The geological aspect of the study and development of geothermal steam for power has been pushed on vigorously. Field studies, supplemented by valuable air photographic interpretations, have together given a clearer structural picture. Petrological studies are proceeding of the hydrothermal alteration of the rock.

Uranium.—Encouragement to prospectors by way of advice and testing of samples has continued. A steady flow of samples continues to be received. Field and mineralogical studies of the recent finds are planned with a view to understanding the mineralization of these occurrences.

Dominion Laboratory.—The following is a summary of the work carried out at the Dominion Laboratory during 1955 in connection with mining industries.

Sulphur.—In connection with the investigation by Mines Department of the Kauaeranga pyrite deposit, samples collected at 10 ft. intervals from drillholes E, F, and G were analysed for total sulphur with the following results:

 Per CentSulphur Content Average Percentage
Bore E, 18 samples0.6 to 7.74.4
Bore F, 33 samples4.5 to 11.17.5
Bore G, 41 samples1.8 to 10.76.2

Uranium.—Selected samples of radioactive beach sand from the Westport area were received from Geological Survey. By means of the Officer magnetic separator and heavy liquids, monazite of at least 90 per cent purity was separated from the sands. The best sample which came from the Nile River beach contained 1.5 per cent monazite. This monazite contained 0.6 per cent uranium oxide, U3 O8.

The method investigated for the determination of this uranium proved to be applicable for the analysis of uranium in ore samples collected by two prospectors and later by geological survey from the Buller River find.

Bloated (Expanded) Clay Aggregate.—Early in 1955 a start was made of an investigation into the bloating of New Zealand clays or shales for the production of lightweight aggregate for use in concrete. Preliminary tests of a number of clays from various localities were made at Dominion Laboratory and several good bloaters were found. A committee consisting of representatives of Dominion Laboratory, Geological Survey, and Pottery and Ceramics Research Association was set up to pursue the matter, and in particular to locate, if possible, deposits of suitable bloating clay handy to big centres of population, such as Auckland and Wellington. A large number of samples were collected by Geological Survey and these are under investigation.

Perlite.— Samples of perlite ore from a new deposit on the Paku Peninsula were tested and some were found to be of good commercial quality.

Raw Materials for Cement.—Limestone from Ward and marl from Picton were examined for suitability for cement making. Samples of cement made in Australia by the vertical-shaft process were also tested; one of these was made with Australian raw materials except that coal from Ohai, Southland, was used as fuel. Further samples, collected by Geological Survey, were analysed in connection with the proposed establishment of a cement works at Otorohanga.

Ilmenite.—A good deal of work was done, mainly on samples from boreholes sunk in 1949 on Nine Mile Beach dunes, south of Cape Foulwind, Westport. Other samples consisted of Barrytown dredge concentrates from the extensive beach deposits south of the Karamea River collected in 1945-46. The object of the investigation was to determine the best concentration of ilmenite obtainable on a commercial scale, as a guide to the grade of slag which could be smelted from the concentrates.

The samples were first treated in the Humphreys Spiral to separate the heavy minerals, the concentrates then being dried and passed over the "Rapid" high-intensity belt-type separator where the magnetic minerals are lifted from the belt by adjustable rotating magnetized discs, giving results capable of being repeated on a commercial scale.

It has been possible to make a concentrate from Nine Mile Beach containing 44.8 per cent TiO2, one from Barrytown with 45.5 per cent TiO2, and one from Karamea with 43 per cent TiO2. With further work it should be possible to upgrade the Karamea concentrate to 45 per cent TiO2.

Analysis of the Nine Mile Beach concentrate shows that it should be possible to smelt this to produce a slag containing from 70 to 75 per cent TiO2. Further work is being done on the Nine Mile Beach material to see if it is possible to produce a concentrate with a slightly higher TiO2 content.

Moulding Sands.—Only a small number of natural moulding-sand deposits have been found in New Zealand.

The Dunedin sands - Green Island and Lookout Point - owing to their natural cohesiveness and satisfactory flow characteristics, are widely used by foundries. Their use was almost exclusive for moulding-sand mixtures for a long period. These sands are suitable for non-ferrous and cast-iron castings.

Two Canterbury natural moulding sands - Whitecliffs and Carter's Loam - according to users, possess consistent and satisfactory properties for foundry use.

On the other hand New Zealand has many large and excellent deposits of silica sand which can form the basis of a wide variety of synthetic-sand mixtures by judicious addition of suitable bonding agents to wash silica sands exhibiting satisfactory grain size and shape. Highly satisfactory synthetic moulding sands are made from Parengarenga silica sand, and washed South Island silica would serve the same purpose. Until the discovery of further deposits of good natural moulding sand is made, more scientific control of moulding sand is maintained, using washed silica sand as a base.

Analysis of a large number of sands were made during the year for this investigation.

Miscellaneous.—Many samples were submitted by prospectors for identification or for assay for gold and silver. Other samples of interest included pottery clay (Waihao Forks, South Canterbury), pozzolans (Kaimai, Middlemarch, and Whirinaki), lead-zinc ores (Te Aroha), incrustation blocking pipe (Kamo Mine), scheelite concentrates (Marlborough), limestones for agricultural use, copper and manganese ores (Great Barrier Island), manganese ore (Fiji), and serpentines (Griffic Range) for the manufacture of calcium-magnesium phosphate by the fusion process.

Coal Section.—A total of 589 samples was received from the Mines Department, Geological Survey, Fuel Technologists, and Government Departments.

These included samples from prospect drilling, outcrop, opencast, face, and run-of-mine samples, and mine airs and other industrial gases.

General Remarks on More Important Investigations

Inflammability Index.—Samples of coal from a Greymouth mine were examined and found to have a very high inflammability index. It was shown that it was necessary to add 75 per cent limestone to the coal dust in order to suppress inflammability of the mixture. Such a mixture would contain 80 per cent incombustible material (moisture, ash, and limestone) and this is a high figure for the Strongman type of coal. It would appear that the significance of the laboratory test should be correlated with large-scale gallery tests, and with this aim in view, samples of three representative New Zealand coals have been sent to the Safety-in-mines Research Establishment in Great Britain.

Kaitangata Drilling.—A considerable number of samples have been taken in connection with the drilling programme at Kaitangata where, in conjunction with geological work, the boundaries of the coal reserves are being defined. Drilling to a depth of up to 700 ft., cuts through several coal horizons and the various coal seams vary in thickness from drill to drill. The ash is determined on foot samples and a complete proximate analysis is done on composite sets of samples. It is generally found that the coal improves with depth and that the sulphur content decreases.

Fuel Technology Samples.—In connection with boiler investigations it is necessary to sample and analyse the coal as fired and also to analyse the various residues. Special investigations on new burners under test require screen sizing of the coals used, the amount of fines below £ in., and the quantity of moisture which these fines may retain.

Lump and Slack Coals.—Four West Coast mines were sampled for run-of-mine slack in connection with gas-production tests. For comparative purposes and to show what accuracy of sampling was obtainable, samples were also taken of the "lump" run-of-mine coal and of the "total" run-of-mine coal. Calorific value and swelling number showed the presence of weathering in one case, but for the majority of the mines there seemed very little difference between large and fine coal as regards quality, e.g., calorific value and swelling properties. The difficulties inherent in sampling and analysis were shown by the difference between the "total" run-of-mine coal and the average or mean of the "lump" and "slack" coals. Sampling output correctly is a very difficult procedure and must be carried out in accordance with standard methods and the necessary statistical examination.

Mine Airs.—Analysis of mine airs have been carried out to observe the effect of stoppings in suppressing fires, the presence of excessive amounts of gases, such as carbon dioxide, methane, or carbon monoxide. Carbon monoxide and hydrogen sulphide are most effectively tested "on the spot" with suitable testing tubes.

Reflectance of Limestone.—The whiteness or ability to reflect light is a most important property of limestone dust which is to be spread in mines for the suppression of coal-dust explosions. This is now expressed as a percentage of the total reflectance of pure magnesium carbonate which is taken as 100 per cent. The reflectance of samples tested ranged from 42 per cent to 75 per cent.

Moisture in Coal.—On behalf of the Geological Survey a series of coals, ranging in "seam" or "bed" moisture from about 5 per cent to 50 per cent, were tested to determine the amount of moisture held naturally by the coal as it occurs in situ. It is considered that this moisture varies with the rank of the coal and this correlation is being examined. A large proportion of the coal output of New Zealand is sub-bituminous or lignite coal containing from 10 per cent of moisture up to about 50 per cent. From a point of view of assessing the value of a coal, analyses are generally expressed on the "air-dried" basis but with high-moisture coals the basis must be more accurately defined. Work is proceeding at present to show the influence on "air-drying" of various temperatures and humidities.

Mine Sample Survey.—Sample surveys have now been carried out in the Kamo and Mangapehi mines. In the former wide variations of ash in different sections of the mine necessitated the survey, while in Mangapehi coals of variable quality and showing different calorific values, volatile matter, and sulphur contents were being obtained. Samples were taken from the different levels and from top to bottom of the seams. Sulphur showed a wide variability, from 0.2 per cent to 1.6 per cent. Calorific values, calculated to the dry, ash-free basis, varied from 11,900 to 13,000 B.t.u. per lb. and moisture on the air-dried basis ranged from about 17 per cent to 23 per cent.

These variations are considerable and fully justify the detailed survey which, by plotting all samples, isolates the areas of, say high sulphur coal or high-volatile coal. Ash in Mangapehi was not a problem. A third survey of the Tatu Mine, has been commenced and the samples are at the Laboratory for analysis.

Calibration of Carbon-dioxide Instruments.—In connection with Suxé burner trials samples of flue gases were taken and analysed. At the same time readings were taken on two different types of carbon-dioxide recorder so that the instruments could be calibrated.

Ash Fusion and Lime Content.—Arising out of the ash survey of samples from the Kamo Mine, where ash percentages varied from 2.7 per cent to 14.4 per cent and where the higher ash samples were shown to contain high percentages of lime, an investigation was commenced to study the effect of lime on ash-fusion temperatures. Four samples were examined before and after removal of the lime content by extraction with hydrochloric acid. The extracted samples, in the absence of soluble lime, had an ash-fusion point about 140°C., lower than the high lime ashes. Further experiments, involving the addition of silica, ironsand concentrate, and sodium chloride, seemed to show that the relationship between ash composition and fusion point is dependent more on the ratio of the proportions of the various constituents than on any marked change in the percentage of one constituent.

Chlorine in Coal.—Trouble has been experienced in Great Britain where a high-pressure boiler plant was swiched from its usual coal to an apparently similar coal. The difference was finally traced to an excessive percentage of chlorine in the troublesome coal. Tests on a number of New Zealand coals have shown that there are no high-chlorine coals (above 0.3 per cent). They are mostly in the low-chlorine category, below 0.15 per cent. Millerton and Blackball were the highest of those tested but they were only on the borderline between low and medium chlorine content. An article dealing with the build-up of bonded deposits in furnaces indicates that the ratio of sulphur and chlorine may be important, and since both Millerton and Blackball are high sulphur coals they should be further investigated from this point of view.

Screen Analyses and Ash-fusion Points of Waikato Slack Coals.—Nine run-of-mine slack samples were taken by Waikato Carbonization Ltd. from Waikato mines and were screened analysed on 3/4 in., 3/8 in., 1/8 in. screens. Opportunity was taken to carry out fusion-temperature tests in reducing and oxidizing atmospheres on all these slack samples. With the exception of Rotowaro slack, which had a medium-fusion-point temperature, all other Waikato slacks had a low-fusion-point ash (below 1200°C). It must be noted that these figures are for slack coal and not for total run-of-mine.

Paparoa Coal Dust as a Rubber Filler.—Tests indicate that, subject to physical compatibility, Paparoa coal dust would be quite suitable for use as a rubber filler. Spectrographic analysis showed the necessary low percentage of manganese and copper required by specification.

Bright and Dull Millerton Coals.—A further set of samples of Millerton bright and dull coals was taken by the Geological Survey and fully detailed. Analyses of the eight samples showed that, in the air-dried state, there was no difference in the chemical analyses of the two types of coal.

BOARDS OF EXAMINERS.—The Board of Examiners set up under the Coal Mines Act annually conducts examinations of candidates for certificates as first class and second class mine managers, mine surveyors, and mine electricians. Examinations of candidates for certificates as underviewers and firemen-deputies under the Coal Mines Act are held annually. Twenty-two certificates were issued in 1955.

COAL MINING DISTRICTS WELFARE AND RESEARCH FUND.—The Coal Mines. Amendment Act 1953 provided for the creation of a new fund, the Coal Mining Districts Welfare and Research Fund (replacing the former Relief and Amenities Funds), into which is paid a levy at the rate of 6d. per ton on coal other than lignite and 4 1/2d. per ton for lignite. This fund is used for coal miners' relief, provision of amenities, establishment and maintenance of rescue stations, research, and generally for the benefit of the industry. Payments are made on the direction of the Coal Mining Districts Welfare and Research Council or the Local Committee (in relief cases).

The Coal Mining Districts Welfare and Research Council met on six occasions during 1955 and dealt with 151 applications for assistance from organizations in mining townships.

Sixty-seven applications for amenities were granted, committing the Fund to expenditure totalling £40,000, and were made contingent upon part of the cost of the amenities being found locally.

Retiring allowances granted to 116 retired miners amounted to £18,237, the average payment being £157. Rescue station maintenance and coal miners' relief, which are also charged against the Welfare and Research Fund, cost £11,773 and £7,027 respectively.

The amount devoted to research work in the industry during 1955 was £4,800. This important research and experimental work was carried out by the Otago University.

Promotion of coal sales and general advancement of the industry has also been attended to by the Council with good results.

The amount standing to the credit of the Fund at 31 December 1955 was £59,886, but the whole of this amount is committed.

Information concerning monetary benefits for miners incapacitated by miner's phthisis or any other occupational disease or heart disease contracted while working as a miner in New Zealand appears in Section 7A—Social Security.

Chapter 24. SECTION 24—FACTORY PRODUCTION

Table of Contents

STATISTICS of factory production were collected in New Zealand from 1867 to 1916 in conjunction with the population census; but, commencing with the year 1918-19, the collection became an annual one, the results being published in the Statistical Report on Industrial (previously Factory) Production.

Since the year 1951-52 factories have been classified according to the New Zealand Standard Industrial Classification, and as a result some of the individual industry statistics will not now compare with previously published figures. However, where possible, information for individual industries has been reclassified for the two previous years, and grand totals have been brought into line with the new classification from the year 1938-39. Apart from transfers within the framework of this series of factory production statistics, the adoption of the New Zealand Standard Classification has meant the elimination from the series altogether of three important industries. These relate to the logging operations of sawmillers, previously included in sawmilling, and the generation and supply of gas and electricity, accounting in all for the activities of approximately 10,000 persons. Information on the generation and supply of gas and electricity is still the subject of an annual inquiry, but the results are no longer included in the series on factory production. Separate and detailed statistics for these industries are recorded in Section 26 of this Year-Book.

A review of the statistics of factory production for a number of years shows that, following the depression of the early nineteen-thirties, New Zealand industries had been making steady progress up to the outbreak of the Second World War; such growth being mainly due to the establishment and growth of new industries. This diversification and expansion, which received a further impetus as the result of the policy of import selection and control instituted by the Government towards the end of 1938, greatly increased the occupational range of factory employment, and local production of raw materials ceased to be the limiting factor in the growth of factory industries, local manufacturers being able to meet the country's needs in many products which previously had been almost exclusively imported. This development stood New Zealand in good stead during the years of the Second World War when heavy calls were made on the industrial community to supply goods, no longer obtainable from overseas, for both the Armed Forces and civilian requirements. Not only were there large increases in the output of items for which appropriate manufacturing facilities and skills were available, but new facilities were provided, locally and by importation, and new skills acquired for production of items not previously manufactured in this country. On the other hand, during the war and in the post-war period, labour shortages and difficulties experienced in obtaining plant and raw materials from overseas sources of supply restricted the supply of certain commodities. In particular, the year 1951-52 saw developments in the Korean War and the local waterfront strike: both of these caused some disruption to the flow of factory production in New Zealand, the former causing material and plant shortages, and the latter delays in domestic handling of both materials and finished goods. Following that year the supply of materials improved rapidly and some relief to the labour market was found in immigration, but in general the year 1952-53 was marked by considerable variations in production between various industries. Production in 1953-54 expanded after some setbacks in 1952-53 and recorded an increase of some 6 per cent in volume compared with the previous year, while in 1954-55 the level of production was even higher as a result of buoyant consumer demand and the more free availability of raw materials. In terms of volume, the output in 1955-56 was nearly 6 per cent higher than the previous year. Three important factors in this production increase were the rise in the number of persons employed, the increase in overtime worked, and the large advance registered in the volume index for the paper and paper products group.

The development of the country's hydro-electric power resources has been a potent factor in industrial growth. Until the outbreak of the Second World War curtailed deliveries of generating equipment and led to heavier demands on available supplies owing to the expansion of industry, ample power was available in both Islands at rates comparing very favourably with those in other and more highly industrialized countries. The overall price per unit retailed in 1954-55 was 1.13d., with much lower rates for industrial supply in the urban areas. Shortage of generating capacity necessitated continuous control on the growth of load, and restrictions on the use of current were necessary from 1941 until late in 1952, when the supply was increased by the addition of Maraetai to the chain of Waikato generating stations, and no restrictions have since been applied in the North Island. However, during 1954-55 controls were reimposed in the South Island. The State Hydroelectric Department is pressing forward extensive hydro-electric development schemes in both the North and South Islands.

SCOPE OF STATISTICS.—The statistics of factory production collected annually by the Department of Statistics embrace the activities of factories coming within the Manufacturing Division of the New Zealand Standard Industrial Classification of all Economic Activities, which is an adaptation of the United Nations International Standard Industrial Classification. The classification covers registered factories employing at least two hands (including the working proprietor) engaged in the manufacture, repair, or treatment of articles. Important factories not covered in this survey which, however, come within this section of the Standard Classification are—

1. Bakeries. 2. Cake and pastry kitchens. 3. Boot repairers. 4. Watch repairers. 5. Bespoke tailors, dressmakers, milliners. 6. Abattoirs. 7. Railway and tramway workshops. 8. Naval dockyard. 9. All one-man factories.

The exclusion of the above from the scope of the statistical inquiry, and also of all persons engaged in factories in a purely distributive capacity reduces the total manufacturing labour force from that quoted by the Department of Labour (198,200—average of October 1955 and April 1956 surveys) to the figure recorded in these statistics—158,148. However, the proportion of factory production covered in this inquiry is much greater than the ratio implied by the above mentioned totals, in that practically all of the establishments of any considerable size are included.

The year covered by these statistics is generally the year ending 31 March, but concerns are permitted to furnish returns covering their financial year most closely corresponding to this period. In the case of the important semi-primary industries—butter, cheese, and other milk products, and meat freezing and preserving—the years correspond with the production seasons ending respectively in June and September.

GENERAL SUMMARY.—The statistics in the following table illustrate the growth of New Zealand's factory production to its present standing.

YearNumber of EstablishmentsPersons EngagedSalaries and Wages PaidCost of Materials"Other Expense" (i.e., Expenses of Operation Other Than Salaries and Wages and Cost of Materials)Value of OutputAdded Value

* Productive employees only.

† Not available.

‡ Estimates based on results of sample survey carried out during that year.

NOTE.—1955-56 figures are given in greater detail in the Latest Statistical Information Section at the front of this book.

   £££££
1910-113,48345,924*4,786,698*18,782,92929,317,02310,534,094
1915-163,75548,744*5,791,704*30,197,78443,034,03312,836,249
1920-214,02269,68113,172,99652,933,49477,828,01324,894,519
1925-264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
1930-315,19477,91415,617,05248,458,3569,388,62677,745,24929,286,893
1935-365,53686,58814,844,36760,172,8489,374,36990,014,74829,841,900
1937-385,924102,34420,981,58775,371,55810,540,208113,691,55638,319,998
1938-396,146102,53522,270,01075,634,90310,001,804114,447,42638,812,523
1939-406,342108,72224,460,54985,243,38311,043,557129,061,82643,818,443
1940-416,395113,99926,946,79998,547,80411,978,8201.47,153,55948,605,755
1941-426,367117,21429,504,299102,260,86012,812,901155,566,19553,305,335
1942-436,127114,59032,256,071107,447,79913,331,973165,936,28458,488,485
1943-446,202117,86434,433,075112,883,93214,516,235175,686,68962,802,757
1944-456,485122,41437,379,062122,695,10615,481,351189,800,76467,105,658
1945-466,991128,20841,499,113123,508,43816,278,562195,258,61471,750,176
1946-477,642134,43545,336,217138,533,72218,247,043218,106,18279,572,460
1947-487,966140,26752,132,689181,773,21821,240,976272,155,33390,382,115
1948-498,000142,50056,000,000203,000,00023,350,000301,000,00098,000,000
1949-508,027144,30961,316,840221,228,64726,334,762331,703,908110,475,261
1950-518,318148,94070,386,677274,165,77730,528,205395,045,818120,880,041
NEW SERIES
Commenced 1951-52, with comparable totals for certain previous years
1938-396,00293,63819,926,91571,173,3149,315,674106,607,91935,434,605
1941-426,225108,27526,812,79396,481,96512,047,029145,608,16649,126,201
1944-456,340113,53434,196,853116,476,19714,556,029178,585,78362,109,586
71947-487,822130,50447,940,238174,845,30120,076,507259,181,23284,335,931
1949-507,815133,24556,231,281215,008,89924,139,996317,342,946102,334,047
1950-518,113138,43565,005,458266,884,56628,867,078380,200,428113,315,862
1951-528,547144,37075,038,793290,682,89132,027,622431,038,354140,355,463
1952-538,512143,18078,490,492318,945,33635,359,704464,064,555145,119,219
1953-548,377146,42686,579,123332,858,17740,392,917495,376,770162,518,593
1954-558,366153,55898,362,829365,373,46847,943,230550,790,555185,417,087
1955-568,515158,548107,870,738382,866,55756,540,803584,035,667201,169,110

Factory production climbed fairly steadily from 1910-11 until a relatively high level was attained in 1929-30. During the depression of the early "thirties" there was a decided fall, but 1933-34 saw the commencement of a gradual recovery in industrial conditions. The pre-depression level was surpassed in 1936-37, and from then on each successive year has set new record high levels for factory production. During the Second World War there were temporary reductions in the numbers of establishments operating, and a fall in the number of persons engaged occurred in 1942-43 as a result of mobilization for home defence following the entry of Japan into the war. However, by 1944-45 recovery had more than made up for these reductions, and from that year New Zealand industries have maintained the rapid progress characteristic of the immediate pre-war years, despite difficulties in the form of labour shortages and of the supply of imported plant and materials.

In the 8,366 establishments recorded in 1954-55 the number of persons engaged was 7,132, or 4.87 per cent, more than in the 8,377 establishments from which returns were obtained in 1953-54. The amount of salaries and wages paid increased by 11.8 million, or 13.6 per cent, and wage-earners worked 3,074,000 hours, or 18.6 per cent, more overtime. Cost of materials used rose by £32.5 million, or 98 per cent; value of output was £55.4 million, or 11.2 per cent greater; and added value increased by £22.9 million, or 14.1 per cent.

In compiling statistics by provincial districts for 1954-55 as shown below, the Department adopted an improved method of collection in regard to firms operating more than one factory. In the past, one consolidated return was deemed sufficient and was classified in the district of the head office of the firm. As a result, geographic tables lost some of their accuracy. Now, however, in addition to the consolidated return, a special schedule is required, giving for each factory the information presented below.

Provincial DistrictNumber of EstablishmentsPersons EngagedSalaries and Wages PaidCost of MaterialsValue of OutputAdded Value
TotalPercentage of Total
 £(000)£(000)£(000)£(000) 
Auckland3,23761,69339,976154,479231,23776,75841.4
Hawke's Bay3665,3373,40815,76121,8986,1373.3
Taranaki3635,1663,52622,49429,1546,6593.6
Wellington1,83033,52722,03879,211120,63041,41922.3
Marlborough969225741,9322,7548220.4
Nelson2572,5311,5804,3697,6433,2731.8
Westland1101,1056771,5532,8281,2750.7
Canterbury1,19625,95015,80746,97875,31228,33415.3
Otago—
  Otago56212,5867,55621,74035,85414,1157.6
  Southland3494,7413,22116,85723,4816,6243.6
    Totals8,366153,55898,363365,373550,791185,417100.0

The additional data collected for the first time in 1954-55 has enabled new distributive tables to be published on factory production. Some of the more significant annual totals are now classified by employment districts of the Department of Labour. These districts, 25 in number, provide a far more comprehensive locality classification than has been available in the past.

The table below is a general summary by employment districts, and shows a comparison of the manufacturing strengths of each district. The fairest guide to actual volume of production is the last column in the table on "Added Value." This shows Auckland district's dominance in the manufacturing world; its production all but equalling the total for the South Island.

Employment DistrictNumber of FactoriesPersons EngagedSalaries and Wages PaidCost of MaterialsValue of OutputAdded Value
MalesFemaleMalesFemalesTotalPercentage of Total
 No.No.£(000)£(000)£(000)£(000)£(000) 
Whangarei2482,4262071,6417511,95515,7323,7772.0
Auckland1,97031,19914,10223,6565,50692,942146,08853,14628.7
Hamilton5025,6377384,02627826,77335,1088,3344.5
Paeroa1301,286254849807,1959,2212,0261.1
Tauranga106890176570703,5434,7491,2060.7
Rotorua1903,4272622,513879,37116,4947,1233.8
Gisborne1161,279298880943,3505,1441,7931.0
Napier1471,4513631,0051253,8285,9672,1391.1
Hastings1662,6245391,85221310,44414,0593,6161.9
New Plymouth3423,7236612,69422319,44325,0765,6333.0
Wanganui2412,7058511,9513089,94114,0624,1212.2
Palmerston North3874,2771,2873,03846818,66825,4556,7873.7
Masterton1591,5432681,090906,6908,8612,1711.2
Lower Hutt2796,7272,0735,43883927,78240,53012,7496.9
Wellington8139,3295,1217,1722,11920,02136,37316,3528.8
  Totals, North Island5,79678,52327,20058,37310,575271,945402,919130,97470.6
Blenheim96732190496781,9322,7548220.4
Nelson1851,7073341,1481173,7436,4722,7281.5
Westport4328144180144137243110.2
Greymouth1291,055193719661,7473,2021,4550.8
Christchurch97915,8886,72011,0992,50836,36960,61824,24913.1
Ashburton66765152544592,7924,0471,2550.7
Timaru1612,0763711,4751367,83610,7192,8841.5
Oamaru59831155568542,5574,0171,4600.8
Dunedin5038,2743,3265,7581,17619,18331,83712,6546.8
Invercargill3494,1935483,03818316,85723,4816,6243.6
  Totals, South Island2,57035,80212,03325,0254,39093,428147,87254,44329.4
  Totals, New Zealand8,366114,32539,23383,39714,965365,373550,791185,417100.0

A further summary of the operations of factories is given below for the three latest years.

1952-531953-541954-55
Number of establishments8,5128,3778,366
Persons engagedNo.143,180146,426153,558
Production costs—
  Salaries, wages£78,490,49286,579,12398,362,829
  Materials£318,945,336332,858,177365,373,468
  Other expenses£35,359,70440,392,91747,943,230
      Totals£432,795,532459,830,217511,679,527
Value of output£464,064,555495,376,770550,790,555
Manufacturers' surplus£31,269,02335,546,55339,111,028
Value added in manufacture£145,119,219162,518,593185,417,087
Overtime worked by wage-earnersHrs.15,662,70516,555,37019,629,275
Volume index for industry: Base 1949-50 (=1000)1,1161,1841,307
Premises and plant—
  Value at end of year—
    Land and buildings£63,278,85069,359,86080,687,461
    Plant and machinery£45,828,72452,909,37057,886,920
  Capital expenditure during year—
    Land and buildings£6,775,4996,511,4378,530,211
    Plant and machinery£11,301,03111,786,76912,061,182

The following table gives a summary of some of the principal production statistics for the year 1954-55 classified by individual industries. Totals for the industrial groups to which these industries belong are also shown.

IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of OutputValue Added in Manufacture
   £££
Food Manufacturing Industries
Meat freezing and preserving4013,74911,394,43196,637,95919,559,219
Ham and bacon curing42815578,6225,422,5491,139,579
Sausage casings1413996,795646,933154,920
Processed cheese45829,190473,805109,993
Ice cream44429237,5451,614,374810,043
Butter and cheese3183,3592,341,81977,995,4434,889,965
Milk products other than butter and cheese821,187873,2817,019,5972,599,294
Fruit and vegetable preserving411,717949,0344,866,8281,908,001
Fish preserving104223-386120,37247,351
Grain milling47849539,2574,309,0461,253,115
Biscuits101,379690,0062,847,2801,185,555
Cocoa, chocolate, and sugar confectionery501,801894,8434,759,9981,783,871
Feeds for animals and fowls36260193,3082,016,439464,124
Food preparations n.e.i.571,433925,7639,195,1022,376,640
      Totals79527,21719,767,280217,925,72538,281,670
Beverage Industries
Wine-making2710665,362361,029202,879
Brewing of ale and stout301,3701,038,1756,673,9823,189,618
Malting12172138,6431,103,219378,079
Aerated waters and cordials77587365,0721,400,542795,817
      Totals1462,2351,607,2529,538,7724,566,393
Tobacco Manufactures
Tobacco, cigars, and cigarettes71,210608,8446,263,8901,724,443
Manufacture of Textiles
Woolscouring21412321,78211,531,717656,114
Woollen milling192,6281,549,2435,608,6432,487,584
Other spinning and weaving mills11957558,5542,449,5741,138,709
Hosiery and other knitting mills913,9222,014,6457,759,3983,456,402
Phormium flax18189108,744345,205206,902
Linen flax49549,337136,08490,108
Textiles n.e.i.17361261,8521,467,556633,263
      Totals1818,5644,864,15729,298,1778,669,082
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of OutputValue Added in Manufacture.
 £££
Manufacture of Footwear, Other Wearing Apparel, and Made-up Textile Goods
Leather gloves and apparel23238110,067326,133162,856
Men's and boys' outerwear1734,3351,968,3317,407,2392,628,866
Women's and girls' outerwear3375,8112,417,9817,719,1883,392,134
Underclothing381,583694,9672,709,262998,724
Hats, caps, and millinery541,006458,6691,414,698694,072
Corsetry21929429,1011,346,251659,842
Neckties816583,937400,816160,460
Shirts and pyjamas561,440596,6202,506,293939,252
Wearing apparel n.e.i.1143,6901,593,8476,144,8182,323,914
Fur coats and necklets43324165,904487,733233,257
Footwear (other than rubber)1305,1122,910,2978,233,4304,038,088
Canvas goods40363210,466859,320348,753
Made-up textiles (other than wearing apparel)66540244,2441,356,340487,821
      Totals1,10325,53611,884,43140,911,52117,068,039
Manufactures of Wood and Cork (Except Manufacture of Furniture)
Sawmills5425,8664,186,22915,926,2708,792,549
Planing mills1471,9891,302,1597,548,8052,586,384
Joinery3132,9361,968,5176,734,8373,237,784
Wooden containers47641415,9001,965,953755,657
Plywood and veneer7505316,2011,091,412657,558
Wood products n.e.i.57397258,302827,378451,789
      Totals1,11312,3348,447,30834,094,65516,481,721
Manufacture of Furniture and Fixtures
Furniture4874,3492,659,2026,988,6963,851,376
Mattress manufacture40561342,1241,815,255651,806
Venetian blinds25243161,643827,748291,251
      Totals5525,1533,162,9699,631,6994,794,433
Manufacture of Paper and Paper Products
Pulp, paper, and paperboard4973700,1465,450,4743,449,813
Cardboard boxes, cartons, and paper bags461,415778,9294,918,6751,692,410
Paper products n.e.i.451,006553,6443,432,4841,199,217
      Totals953,3942,032,71913,801,6336,341,440
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of OutputValue Added in Manufacture
   £££
Printing, Publishing, and Allied Industries
Printing and publishing974,4913,249,08610,321,3726,864,458
Job and general printing2624,1322,570,7427,471,9034,360,896
Service industries for printing trade30367276,932541,553444,887
      Totals3898,9906,096,76018,334,82811,670,241
Manufacture of Leather and Leather Products (Except Footwear)
Tanning15757541,7482,613,004844,289
Fellmongery77248,909723,104109,802
Leather goods87851427,9671,313,580658,958
      Totals1091,6801,018,6244,649,6881,613,049
Manufacture of Rubber Products
Motor tires and tubes3738719,5344,122,5532,008,988
Rubber goods (other than motor tires and tubes)241,413933,9583,229,4961,830,337
Vulcanizing and tire retreading55491359,8851,480,608842,703
      Totals822,6422,013,3778,832,6574,682,028
Manufacture of Chemicals and Chemical Products
Chemical fertilizers91,236993,4509,125,5882,792,516
Vegetable and animal oils and fats43355280,0261,838,866782,613
Ink68349,175257,649117,841
Soap and candle15491325,1342,053,806750,862
Paint and varnish25751544,6004,703,3021,418,457
Pharmaceuticals, toilet goods, and cosmetics44722372,3342,531,422976,055
 711,145749,3054,322,5561,857,286
      Totals2134,7833,314,02424,833,1898,695,630
Manufacture of Products of Petroleum and Coal
Petroleum and coal products811590,4641,016,593208,145
Bituminous paving and roofing materials20143108,462850,515306,893
      Totals28258198,9261,867,108515,038
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of OutputValue Added in Manufacture
 £££
Manufacture of Non-metallic Mineral Products (Except Products of Petroleum and Coal)
Structural clay products461,026728,2341,791,2871,640,518
Pottery, china, and earthenware7509300,239647,676524,420
Cement3528435,9613,038,5992,320,901
Glass and glass products40910605,2541,902,8181,223,623
Concrete products2621,8921,319,9964,536,9662,469,767
Lime94481321,5341,621,7331,127,576
Fibrous plaster70377261,157720,760385,018
Non-metallic mineral products n.e.i.10467355,2822,027,472739,714
      Totals5326,1904,327,65716,287,31110,431,537
Basic Metal Industries
Basic metal industries85870651,0142,979,1541,270,510
Manufacture of Metal Products (Except Machinery and Transport Equipment)
Sheetmetal working1543,4752,481,4028,881,5554,324,067
Wire working25340234,1771,186,022457,113
Nail making613491,596918,078176,398
Electroplating and metal polishing46362284,483574,658424,678
Metal products n.e.i.1373,0442,271,9417,787,9834,115,385
      Totals3687,3555,363,59919,348,2969,497,641
Manufacture, Assembly, and Repair of Machinery (Except Electrical Machinery)
Agricultural and pastoral machinery871,442924,0025,674,5521,598,284
Machinery n.e.i.3727,4755,385,54320,377,7979,443,000
      Totals4598,9176,309,54526,052,34911,041,284
Manufacture of Electrical Machinery, Apparatus, Appliances, and Supplies
Rangemaking8969629,2071,694,3581,002,840
Radio assembly and manufacture221,064638,0592,654,5601,023,865
Electrical machinery, appliances n.e.i.1022,2551,388,4036,026,4242,659,125
      Totals1324,2882,655,66910,375,3424,685,830
Manufacture of Transport Equipment
Boat building and ship repairing541,131786,2881,664,3611,189,072
Motor vehicle assembly122,5792,091,40721,309,9744,463,766
Motor body building791,193784,4422,020,1041,153,956
Repairs to motor vehicles1,55412,6257,715,10422,561,17312,054,210
Aircraft maintenance and repair181,054708,3261,601,3211,103,891
Perambulators1416897,139259,863142,336
Transport equipment n.e.i.27468330,5891,114,880638,474
      Totals1,75819,21812,513,29550,531,67620,745,705
IndustryNumber of EstablishmentsNumber of Persons EngagedSalaries and Wages PaidValue of OutputValue Added in Manufacture
£££
Miscellaneous Manufacturing Industries
Optical, surgical, and dental, etc.,
equipment25160107,698261,787147,259
Jewellery58430256,981671,341378,471
Brushes and brooms15415226,521868,994383,134
Toys and sports goods30456226,184758,647398,609
Manufacturing industries n.e.i.911,263707,9952,672,1161,333,900
      Totals2192,7241,525,3795,232,8852,641,373
      Grand totals8,366153,55898,362,829550,790,555185,417,087

ESTABLISHMENTS AND EMPLOYEES.—The increases in the number of factories in the immediate post-war years were the highest recorded annually and compare with the percentage increases recorded after the First World War. The same factors operated after both wars—viz., the re-establishment of businesses closed down during the war period and the opening of new businesses by returned servicemen. In addition, in recent years the shortage of labour in the principal centres has resulted in branch factories and workrooms being opened in secondary towns to tap the labour resources in those areas. The peak was reached in 1951-52, the three following years showing a decrease in the number of factories returned.

The following table shows the number of factories in each provincial district for the three latest years.

Provincial DistrictNumber of Factories
1952-531953-541954-55
Auckland3,2393,2313,237
Hawke's Bay355363366
Taranaki364351363
Wellington1,8751,8541,830
Marlborough1079196
Nelson263273257
Westland115109110
Canterbury1,2231,1921,196
Otago—
  Otago portion611579562
  Southland portion360334349
      Totals8,5128,3778,366

The number of factories and persons engaged are next shown classified according to the New Zealand Standard Industrial Classification, introduced with the 1951-52 collection. Persons engaged include only those employed in the manufacturing activities of a factory. They include proprietors actively engaged in their own businesses but exclude all persons engaged in selling and distribution. Figures for persons engaged refer to the average number over the whole year.

Industry GroupNumber of FactoriesNumber of Persons Engaged
1952-531953-541954-551952-531953-541954-55
Food79482179525,75726,15427,217
Beverages1701651462,2732,2232,235
Tobacco manufactures8771,3231,2831,210
Textiles1901931817,7688,1878,564
Footwear, other wearing apparel, and made-up textile goods1,1591,1651,10324,16624,80625,536
Wood and cork products (except furniture)1,1381,1221,11312,22012,15712,334
Furniture and fittings5935725524,9555,0595,153
Paper and paper products8593952,7713,1483,394
Printing, publishing, etc.3863933898,4688,6358,990
Leather and leather products (except footwear and apparel)1071051091,5781,6561,680
Rubber products8778822,0662,2672,642
Chemicals and chemical products2172212134,5804,6154,783
Petroleum and coal products272728250258258
Non-metallic mineral products n.e.i.5285085325,8475,8566,190
Basic metal manufactures808085822752870
Metal products (except machinery and transport equipment)3763773686,1916,5627,355
Machinery (except electrical)4424444598,3258,3318,917
Electrical machinery and appliances1431431323,9554,2514,288
Transport equipment1,7591,6491,75817,27917,57519,218
Miscellaneous products2232142192,5362,6512,724
      Totals8,5128,3778,366143,180146,426153,558

Further information is given in the following table on persons engaged in 1954-55. Totals in each industrial group are shown by provincial districts.

Industry GroupAucklandHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtagoTotal
Otago PortionSouthland Portion
Number of Persons Engaged 1954-55
Food10,3622,0782,1223,983177586303,9782,2161,68527,217
Beverages9889453362185335343236532,235
Tobacco manufactures66123 1,021      1,210
Textiles2,003148 1,89310541542,5041,6471518,564
Footwear, other wearing apparel and made-up textile goods11,4553325065,89920275664,8311,88828225,536
Wood and cork products (except furniture)5,9834036081,615756394831,25362065512,334
Furniture and fittings2,215298921,0253581218554111205,153
Paper and paper products2,037  698   2422291883,394
Printing, publishing, etc.3;0913042272,77253129711,3477682288,990
Leather and leather products (except footwear and apparel)84010415533 404214471,680
Rubber products664211152145 1,3901972,642
Chemicals and chemical products1,4621992211,7122120 587546154,783
Petroleum and coal products1524849   405 258
Non-metallic mineral products n.e.i.2,85120910478544202231,1775282676,190
Basic metal manufactures302 86211 2 211526870
Metal products (except machinery and transport equipment3,72228271,6932292990808547,355
Machinery (except electrical)3,4143143841,9756945631,7495953098,917
Electrical machinery and appliances1,30923101,549   956441 4,288
Transport equipment7,5197236714,8401836001572,6501,21366219,218
Miscellaneous products1,2582632769268 443150122,724
      Totals61,6935,3375,16633,5279222,5311,10525,95012,5864,741153,558

The distribution of the sexes among the persons engaged shows a considerable preponderance of males. In the five years prior to the Second World War the proportion of female employees in factories was steady at approximately 25 per cent. After rising rapidly to a peak of 31.5 per cent in 1942-43 as a result of additional women being recruited for factory work and men being called for military service, the proportion then fell equally rapidly back to the pre-war figure.

In the smaller districts there are few industries employing female labour to any great extent; but the male preponderance is considerably smaller in the four main districts, where female labour is in great demand mainly on account of the importance of the clothing and textile industries. The greater number of females in manufacturing industries are engaged in four classes: Food; footwear and other wearing apparel; textiles; and printing, publishing, etc. In 1954-55 these classes accounted for 76 per cent of all females in factories. In two classes only did the number of females exceed the number of males—viz., tobacco manufactures, where there were 169 females to every 100 males, and footwear and other wearing apparel, etc., where there were 296 females per 100 males. The following table shows the average number of males and females engaged according to industry groups for the year 1954-55.

Industry GroupMalesFemalesTotal
Food22,6924,52527,217
Beverages2,1071282,235
Tobacco manufactures4497611,210
Textiles4,3804,1848,564
Footwear, other wearing apparel, and made-up textile goods6,44319,09325,536
Wood and cork products (except furniture)11,98235212,334
Furniture and fittings4,6544995,153
Paper and paper products2,2091,1853,394
Printing, publishing, etc.7,0451,9458,990
Leather and leather products (except footwear and apparel)1,1665141,680
Rubber products2,1425002,642
Chemicals and chemical products3,7071,0764,783
Petroleum and coal products2508258
Non-metallic mineral products n.e.i.5,8223686,190
Basic metal manufactures83634870
Metal products (except machinery and transport equipment)6,5238327,355
Machinery (except electrical)8,5213968,917
Electrical machinery and appliances3,3269624,288
Transport equipment18,32689219,218
Miscellaneous products1,7459792,724
      Totals114,32539,233153,558

Further information is available in the table below on the extent to which females are engaged in factories in New Zealand for 1954-55. This table gives by provincial districts the number of males per 100 females engaged, and the total persons engaged per thousand of population.

Provincial DistrictMalesFemalesTotalNumber of Males Per 100 FemalesTotal Population at 1 April 1955Total Persons Engaged Per Thousand of Population
Auckland45,67316,02061,693285841,29173
Hawke's Bay4,3519865,337441100,10053
Taranaki4,4866805,16666093,70055
Wellington24,0139,51433,527252430,30078
Marlborough73219092238524,60037
Nelson2,1493822,53156371,70035
Westland9141911,10547918,90058
Canterbury18,7097,24125,950258300,23686
Otago—
  Otago portion9,1053,48112,586262168,50075
  Southland portion4,1935484,74176581,60058
      Totals114,32539,233153,5582912,130,92772

A classification of the establishments, according to the number of persons engaged, is given at five-yearly intervals from 1924-25 onwards. Figures for the latest year (1954-55) are also included, but are not strictly comparable with the other years shown. As mentioned earlier, the series no longer includes certain sectors of production previously included—principal omissions being the logging activities of sawmills and the operations of gas and electric supply stations.

YearFactories With Persons Engaged Numbering—Total
10 or Under11-2021-5051-100Over 100
Number of Factories
1924-252,9727205701551214,538
1929-303,4768005911641375,168
1934-353,7257644961431425,270
1939-404,2189577722121836,342
1944-454,1391,0468332701976,485
1949-504,9931,4091,1063122078,027
1954-555,3501,4731,0203102138,366
Number of Persons Engaged
1924-2512,65810,69018,06711,09424,67477,183
1929-3015,47411,78517,97711,65825,96782,861
1934-3514,90111,32115,3099,71628,11179,358
1939-4017,21214,04823,31614,73739,409108,722
1944-4518,38215,54725,78718,80943,889122,414
1949-5024,48120,60834,38621,30443,530144,309
1954-5527,20621,43231,65021,74051,530153,558

The classification according to the number of persons engaged shows clearly that, judged by the standards of highly industrialized communities, the average size of the industrial unit in New Zealand is small. Factories employing ten persons or under accounted for 63.9 per cent of the total number of factories in 1954-55.

A further break up by employment groups, this time by industrial classes, is shown in the following table, which gives both the number of establishments and persons engaged in each industrial group for the year 1954-55.

Industry GroupEstablishments (E) Persons (P)Factories With Persons Engaged Numbering—Total
Under 66 to 1011 to 2021 to 5051 to 100101 to 200Over 200
FoodE24223114996291533795
P7951,8002,1193,0782,0982,36414,96327,217
BeveragesE69361813631146
P2072912523994333533002,235
Tobacco manufacturesE  1 3127
P  13 2101238641,210
TextilesE32314037201011181
P1092376061,1391,3921,5743,5078,564
Footwear, other wearing apparel, and made-up textile goodsE214229289267752091,103
P7871,7934,3288,3805,3342,7432,17125,536
Wood and cork products (except furniture)E4313202449715511,113
P1,4522,4333,5922,89199973223512,334
Furniture and fittingsE278140824471 552
P9201,0631,2001,354515101 5,153
Paper and pulp productsE15211526123395
P521612368418904028123,394
Printing, publishing, etc.E1409463562457389
P4717158801,6921,7498052,6788,990
Leather and leather products (except footwear and apparel)E5716141543 109
P164121193521309372 1,680
Rubber productsE36237721682
P122170992321461491,7242,642
Chemicals and chemical productsE724638369102213
P2173615631,1296681,3914544,783
Petroleum and coal productsE12772   28
P40509870   258
Non-metallic mineral products n.e.i.E2981145736683532
P9708719869793351,1359146,190
Basic metal manufacturesE30261991  85
P10319425024875  870
Metal products (except machinery and transport equipment)E13493545421102368
P4657287491,7581,4571,4947047,355
Machinery (except electrical)E18110268672894459
P6197789912,1281,8761,3791,1468,917
Electrical machinery and appliancesE353119211682132
P1172302916661,1771,2995084,288
Transport equipmentE83652225111126481,758
P2,9703,9303,5743,3561,6665443,17819,218
Miscellaneous productsE11145282663 219
P366334412789411412 2,724
      TotalsE3,2232,1271,4731,020310119948,366
P10,94616,26021,43231,65021,74017,37234,158153,558

SALARIES AND WAGES.—The figures relating to the amounts paid as salaries and wages include amounts paid as bonuses and for overtime, also amounts drawn in lieu of salary by working proprietors. The amounts received by male and female employees (inclusive of all groups—executive, clerical, and wage earning), and the average amount received per employee of each sex, as recorded in the last five collections, are set out below. Although total figures for the latest four years shown are on a different basis from those shown for the year 1950-51 owing to the exclusion of certain sectors of production, the average salary and wage quoted can be considered reasonably comparable. For the year 1954-55 both males and females recorded increased average earnings over the previous year of 8.5 and 7.9 per cent respectively.

£

YearMalesFemalesBoth Sexes
TotalAverageTotalAverageTotalAverage
1950-5159,710,99053510,675,68728670,386,677473
1951-5263,151,27259111,887,52131775,038,793520
1952-5366,604,45162111,886,04133178,490,492548
1953-5473,489,68867213,089,43535386,579,123591
1954-5583,397,42172914,965,40838198,362,829641

The averages shown relate to all persons engaged, irrespective of age, industry, status, and personal occupation, and year-to-year comparisons may also be affected by changes in any of these factors. The figures do, however, give an indication of the increased earnings of factory workers in recent years, the average for males having risen by 36.3 per cent and for females by 33.2 per cent since 1950-51.

The amount of salaries and wages paid in each industrial group and in all industries during the last three years is given hereunder.

£(000)

Industry GroupSalaries and Wages Paid
1952-531953-541954-55
Food16,32317,75219,767
Beverages1,3741,4791,607
Tobacco manufactures593606609
Textiles3,7834,4124,864
Footwear, other wearing apparel, and made-up textile goods9,74810,61611,884
Wood and cork products (except furniture)7,1567,6918,447
Furniture and fittings2,5752,8893,163
Paper and pulp products1,4661,7842,033
Printing, publishing, etc.4,7875,3736,097
Leather and leather products (except footwear and apparel)8599401,019
Rubber products1,3211,5172,013
Chemicals and chemical products2,6142,8103,314
Petroleum and coal products155179199
Non-metallic mineral products n.e.i.3,5123,7874,328
Basic metal manufactures520505651
Metal products (except machinery and transport equipment)3,7614,3005,364
Machinery (except electrical)4,8875,3346,310
Electrical machinery and appliances2,1302,4412,656
Transport equipment9,73310,81412,513
Miscellaneous products1,1941,3521,525
      Totals78,49086,57998,363

In the following table an analysis is made of the 1954-55 totals according to provincial districts in which the industries were carried on.

£(000)

Industry GroupAucklandHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtago
Otago PortionSouthland Portion

* To avoid disclosure of details of individual establishments, figures have been included in those for Miscellaneous products.

Salaries and Wages Paid
Food7,5731,4341,7063,042143350192,7811,4031,316
Beverages725583026810342226016337
Tobacco manufactures** *      
Textiles1,15692 1,162521641,37290688
Footwear, other wearing apparel, and made-up textile goods5,4501331942,7919926282,282776107
Wood and cork products (except furniture)4,2022753891,08745425345819405455
Furniture and fittings1,4381725465021451147422871
Paper and paper products1,295  397   122102117
Printing, publishing, etc.2,1201961491,997347946835502140
Leather and leather products (except footwear and apparel)492**96** 24015426
Rubber products52515*433** 1,008164
Chemicals and chemical products1,0421521501,1571514 37739610
Petroleum and coal products113**43   30* 
Non-metallic mineral products n.e.i.1,995148725762717317764364191
Basic metal manufactures230 *160 * 14440*
Metal products (except machinery and transport equipment)2,74917161,247***70357536
Machinery (except electrical)2,4932022611,4744528381,156398214
Electrical machinery and appliances798155994   554289 
Transport equipment4,8574183983,502111357861,633750403
Miscellaneous products7238010396219.271254918
Totals39,9763,4083,52622,0385741,58067715,8077,5563,221

A further analysis of salaries and wages paid is given in the table below for 1954-55, and shows the amounts paid to working proprietors, managers, clerical staff, and those paid to other employees, i.e., wage-earners. As mentioned earlier, drawings in lieu of salaries are included for proprietors actively engaged in the business.

£(000)

Industry GroupWorking Proprietors, Managers, Clerical StaffWage-earning EmployeesAll Employees
MalesFemalesMalesFemalesMalesFemalesTotal
Salaries and Wages Paid
Food2,53934315,5401,34418,0801,68819,767
Beverages307421,25271,559481,607
Tobacco manufactures6927247266316293609
Textiles4821042,7461,5323,2271,6374,864
Footwear, other wearing apparel, and made-up textile goods3,3954903,3156,6854,7107,17411,884
Wood and cork products (except furniture)1,450966,857448,3071408,447
Furniture and fittings634562,3381352,9721913,163
Paper and paper products309501,2873881,5954372,033
Printing, publishing, etc.1,0892524,2644925,3527446,097
Leather and leather products (except footwear and apparel)173256451768182001,019
Rubber products306421,4991671,8052092,013
Chemical and chemical products6411222,2542972,8954193,314
Petroleum and coal products434152 1954199
Non-metallic mineral products n.e.i.667603,524774,1911374,328
Basic metal manufactures14412492363615651
Metal products (except machinery and transport equipment)866964,1522505,0173465,364
Machinery (except electrical)1,1931334,936486,1291816,310
Electrical machinery and appliances374761,8903142,2653912,656
Transport equipment2,3873109,7665112,15336112,513
Miscellaneous products290608842911,1743511,525
      Totals15,3572,39968,04112,56783,39714,96598,363

The following statement shows the average earnings of males and females for the past nine years, and although the basis of the calculations has changed in the latest years the figures shown below should compare reasonably well.

£

YearProprietors Actively EngagedManagers, OverseersAccountants, ClerksWage-earning EmployeesTotals
MalesFemalesMalesFemalesMalesFemalesMalesFemalesMalesFemales
Average Salary or Wage
1945-46367326596350347193359180377184
1946-47372320614365368201365189385194
1947-48428336661409406224401211421216
1949-50491346730463460266460248481253
1950-51531399797499511296514281535286
1951-52596459871525576330566311591317
1952-53628436922568626354' 593324621331
1953-54746497995590688388639344672353
1954-557975431,071655734410696373729381

MOTIVE POWER.—A supply of cheap motive power is essential for industrial development. New Zealand industries were formerly somewhat handicapped in this respect, long railway hauls and, in some instances, sea carriage being involved in the transport of coal from the mines to the factories. The difficulties in the way of obtaining a supply of cheap motive power have been met by the development by the State of hydro-electric schemes, for which New Zealand is topographically well suited. Restrictions in the supply have been necessary during recent years except for a period following the addition of Maraetai to the chain of Waikato stations.

The following table shows the numbers and aggregate horsepower of each class of engine used in factories for 1927-28, 1937-38, 1947-48, and the last two years available.

Class of Engine1927-281937-381947-481953-541954-55
ElectricNo.12,42825,62670,274117,271125,572
H.P.111,942181,757342,408516,128546,054
SteamNo.1,8691,4701,001641628
H.P.63,93050,73634,78824,88624,576
Petrol and light oilNo.297
3,769
511
12,333
1,015740714
H.P.25,30216,93314,755
Heavy oilNo.411349365
H.P.20,26721,48821,178
OtherNo.53025587119126
H.P.16,3676,0592,8854,5184,428
      TotalsNo.15,12427,86272,788119,120127,405
H.P.196,008250,885425,650583,953610,991

The figures relating to horsepower represent the rated horsepower of engines ordinarily in use for driving factory plant. Steam boilers and engines for generating electric power in own works are excluded.

The following table shows the types and rated horsepower of engines ordinarily in use in the various industries during 1954-55.

Industry GroupRated Horsepower of Engines in Use
ElectricSteamPetrol and Light OilHeavy OilOtherTotal
Food139,97410,8741,1161,407847154,218
Beverages9,392553861181310,162
Tobacco manufactures1,087  9041,181
Textiles25,1851,5607595392028,063
Footwear, other wearing apparel, and made-up textile goods13,1103482251702013,873
Wood and cork products (except furniture)94,9669,5228,55912,5261,912127,485
Furniture and fittings11,775 4130 14,909
Paper and paper products31,83926776183 32,365
Printing, publishing, etc.14,08466395665415,763
Leather and leather products (except footwear and apparel)5,9491448180 6,281
Rubber products18,93310019325 19,251
Chemicals and chemical products28,91557038856464531,082
Petroleum and coal products1,738329317042,037
Non-metallic mineral products n.e.i.57,8425681,2762,22427562,185
Basic metal manufactures4,197 326 4,235
Metal products (except machinery and transport equipment)21,188143911,307 22,900
Machinery (except electrical)26,93916700363 28,018
Electrical machinery and appliances6,937 9  6,946
Transport equipment23,39927072033424,345
Miscellaneous products5,605 7017 5,692
      Totals546,05424,57614,75521,1784,428610,991

CONSUMPTION OF COAL.—During the year 1954-55, 931,400 tons of New Zealand coal were used in industries covered by the statistics of factory production. Comparable figures for the two previous years were: 1953-54, 893,800 tons, and 1952-53, 889,700 tons. It is important to note that the new series of factory production statistics no longer includes the activities of the gas-making industry and electric generation and supply stations. These two industries for the year 1954-55 used 266,149 tons and 136,931 tons of coal respectively.

The following table shows for the year 1954-55 the consumption of coal by industrial groups.

Industry GroupTons of Coal Used, 1954-55Industry GroupTons of Coal Used, 1954-55
Food472,240Rubber products20,857
Beverages20,115Chemicals and chemical products25,998
Tobacco manufactures571Petroleum and coal products34,420
Textiles42,842Non-metallic mineral products n.e.i.208,247
Footwear, other wearing apparel, and made-up textile goods2,847Basic metal manufactures294
Wood and cork products (except furniture)1,888Metal products (except machinery and transport equipment)2,143
Furniture and fittings71Machinery (except electrical)645
Paper and paper products86,549Electrical machinery and appliances1,390
Printing, publishing, etc.345Transport equipment972
Leather and leather products (except footwear and apparel)7,884Miscellaneous products1,079
     Total931,397

Approximately 82 per cent of the amount of coal used is accounted for in three groups: Food, paper and paper products, and non-metallic mineral products n.e.i. Individual industries using more than 10,000 tons of coal in 1954-55 are as follows.

IndustryTonsIndustryTons
Meat freezing and preserving154,693Petroleum and coal products32,906
Milk products other than butter and cheese153,426Food preparations n.e.i.32,355
 Woollen milling22,371
Butter and cheese107,390Brewing of ale and stout19,015
Cement135,148Lime16,523
Pulp paper and paperboard85,356Woolscouring11,167
Structural clay products45,552Vegetable and animal oils and fats10,656

MATERIALS.—The value of materials used does not afford a very satisfactory basis of comparison as between one industry or industrial group and another, for the reason that the changes wrought during the process of manufacture vary considerably in degree. An example of the wide differences which may occur in the ratio of cost of materials to value of goods produced will be seen in the food group and the wood and cork products (except furniture) group.

Totals for the latest year show that the cost of materials used in food manufacture was £179,644,000 and the goods produced were valued at £217,926,000, while the materials used in the manufacture of wood and cork products cost £17,613,000 and finished goods produced were valued at £34,095,000.

The cost of materials used in each industrial group and in all industries during the latest three years is given hereunder. All figures shown in these tables are comparable, being based on the new concept.

£(000)

Industry GroupCost of Materials Used
1952-531953-541954-55
Food167,942170,923179,644
Beverages4,2104,5334,972
Tobacco manufactures4,1994,5564,539
Textiles14,88119,51720,629
Footwear, other wearing apparel, and made-up textile goods21,10121,17923,843
Wood and cork products (except furniture)14,42415,88217,613
Furniture and fittings3,7974,1564,837
Paper and paper products6,2785,9517,460
Printing, publishing, etc.5,6415,7646,665
Leather and leather products (except footwear and apparel)2,7743,1593,037
Rubber products3,6743,4354,151
Chemicals and chemical products14,31714,23216,138
Petroleum and coal products1,1331,0691,352
Non-metallic mineral products n.e.i.5,0004,9505,856
Basic metal manufactures1,6941,3141,709
Metal products (except machinery and transport equipment)7,9857,8109,851
Machinery (except electrical)11,55512,67015,011
Electrical machinery and appliances4,6375,2045,690
Transport equipment21,98324,45429,786
Miscellaneous products1,7202,1012,592
      Totals318,945332,858365,373

An analysis by provincial districts of the cost of materials used for the year 1954-55 is given below.

£(000)

Industry GroupAucklandHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtago
Otago PortionSouthland Portion

* To avoid disclosure of details of individual establishments, figures have been included in those for Miscellaneous products.

Cost of Materials Used
Food80,45510,25918,81225,0821,3072,48846618,5499,31412,913
Beverages2,5961315458928616099339664
Tobacco manufactures** *      
Textiles4,2762,047 5,0384401775,6702,662715
Footwear, other wearing apparel, and made-up textile goods10,7862744575,92319954534,4531,396248
Wood and cork products (except furniture)9,3246167122,560607505981,511727753
Furniture and fittings2,372174569922435769041967
Paper and paper products5,051  1,328   479253349
Printing, publishing, etc.2,3811601042,0332249211,089685120
Leather and leather products (except footwear and apparel)1,435**171** 562498357
Rubber products1,08822*944** 2,0383010
Chemicals and chemical products5,5307531,0035,5393891 1,2421,90933
Petroleum and coal products558**615   136* 
Non-metallic mineral products n.e.i.2,9342071138363020716748497269
Basic metal manufactures1,008 *326 * 15532*
Metal products (except machinery and transport equipment)5,18726452,466***1,14789859
Machinery (except electrical)7,1692743833,6464085242,447659284
Electrical machinery and appliances2,13914141,971   1,219332 
Transport equipment8,77456350514,2511704811303,408895609
Miscellaneous products1,4142412384,9011029 4431377
      Totals154,47915,76122,49479,2111,9324,3691,55346,97821,74016,857

A large proportion of the total cost of materials is accounted for by the food group, which includes the semi-primary industries dealing with meat freezing and preserving and the manufacture of butter, cheese, and other milk products. In the latest year, for example, the cost of materials used by this group, £179,644,000, represented 49 per cent of the total cost of materials used by all industries, £365,373,000. For this reason, variations in the prices received for primary produce have a very marked effect on this total, and it should be remembered that, as these prices can be regarded as understated by the amount of any subsidies paid to primary producers, a similar understatement can be assumed in the cost of materials shown in these tables.

PRODUCTS.—The value of products is based upon the valuation of goods at the factory door. It is the selling value at the factory to customers of all goods made or processed during the year after deducting all costs of selling and distribution.

In making use of the gross value of products it must be borne in mind that the figures include the value of raw materials operated upon, which value normally constitutes approximately two-thirds of the value of products. Where the products of one industry—for example, sawmilling— are treated again in other industries, such as furniture making, joinery, etc., part of the value of the timber shown as products of the former industry appears again as the materials of the latter industry and enters into the value of furniture and joinery made. Duplication of this kind is found in many industries.

The following tables show the gross value of products for each industrial group and for all industries for the last three years available. All figures shown in these tables are based on the new concept and are therefore comparable.

£(000)

Industry GroupProducts
1952-531953-541954-55
Food200,396206,387217,926
Beverages7,7028,8079,539
Tobacco manufactures6,1206,4396,264
Textiles21,75927,47829,298
Footwear, other wearing apparel, and made-up textile goods34,77036,17340,912
Wood and cork products (except furniture)27,78330,60134,095
Furniture and fittings7,6868,4999,632
Paper and paper products10,05710,81213,802
Printing, publishing, etc.14,69115,88818,335
Leather and leather products (except footwear and apparel)4,1864,6644,650
Rubber products6,4357,1148,833
Chemicals and chemical products20,90221,76724,833
Petroleum and coal products1,5061,5411,867
Non-metallic mineral products n.e.i.12,93013,60016,287
Basic metal manufactures2,7612,2882,979
Metal products (except machinery and transport equipment)14,58815,30219,348
Machinery (except electrical)19,91621,99826,052
Electrical machinery and appliances8,1529,46110,375
Transport equipment37,93842,13350,532
Miscellaneous products3,7854,4265,233
      Totals464,065495,377550,791

A similar analysis by provincial districts, but limited to the year 1954-55, is now given.

£(000)

Industry GroupAucklandHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtago
Otago PortionSouthland Portion

* To avoid disclosure of details of individual establishments, figures have been included in those for Miscellaneous products.

Products
Food95,20612,72921,91230,6151,4513,16451124,06612,33215,941
Beverages4,5482961211,417491501411,856839122
Tobacco manufactures** *      
Textiles6,3572,219 7,33111752857,9434,191886
Footwear, other wearing apparel, and made-up textile goods18,68249677510,01131791847,6032,452400
Wood and cork products (except furniture)18,0391,1551,4224,5051321,5381,2852,9351,4651,619
Furniture and fittings4,5594241262,0245496251,398757169
Paper and paper products9,904  2,055   763472608
Printing, publishing, etc.6,4535693825,75291204972,6971,666424
Leather and leather products (except footwear and apparel)2,230**319** 943711417
Rubber products2,37661*1,828** 4,4236822
Chemicals and chemical products8,5171,0831,5678,47880131 2,0722,84856
Petroleum and coal products854**734   212* 
Non-metallic mineral products n.e.i.7,6915212501,94380956512,2651,707824
Basic metal manufactures1,435 *629 * 429101*
Metal products (except machinery and transport equipment)9,92554864,959***2,3091,847111
Machinery (except electrical)11,5296548446,408110133824,3251,319648
Electrical machinery and appliances3,46936223,774   2,281793 
Transport equipment16,6971,2321,16520,6373401,0292655,9332,0181,215
Miscellaneous products2,7673684827,2103977385826820
      Totals231,23721,89829,154120,6302,7547,6432,82875,31235,85423,481

ADDED VALUE.—As indicated under the heading of "Products," the value of products is not always a satisfactory measure of either the absolute or the relative importance of a given industry, for the reason that only part of this value is actually created by the manufacturing processes carried on in the industry itself. In many cases by far the larger portion of the value of products represents the value of the materials used. From a manufacturing standpoint, the best measure of the importance of an industry is the value created by the manufacturing operations carried on within the industry. This value is obtained in New Zealand by deducting the cost of materials used from the gross value of the products, and is referred to as the "added value."

The tables given herewith show the added value for each industrial group and for all industries for each of the last three years available, with an analysis of the 1954-55 totals according to the provincial districts in which the industries were carried on. All figures shown in these tables are comparable, being based on the new concept.

£(000)

Industry GroupAdded Value
1952-531953-541954-55
Food32,45535,46338,282
Beverages3,4924,2734,566
Tobacco manufactures1,9211,8831,724
Textiles6,8787,9618,669
Footwear, other wearing apparel, and made-up textile goods13,66914,99417,068
Wood and cork products (except furniture)13,36014,71916,482
Furniture and fittings3,8894,3434,794
Paper and paper products3,7804,8616,341
Printing, publishing, etc.9,05010,12411,670
Leather and leather products (except footwear and apparel)1,4121,5051,613
Rubber products2,7613,6784,682
Chemicals and chemical products6,5857,5368,696
Petroleum and coal products373472515
Non-metallic mineral products n.e.i.7,9308,65110,432
Basic metal manufactures1,0679741,271
Metal products (except machinery and transport equipment)6,6037,4929,498
Machinery (except electrical)8,3609,32911,041
Electrical machinery and appliances3,5154,2574,686
Transport equipment15,95517,67920,746
Miscellaneous products2,0652,3252,641
      Totals145,119162,519185,417

A similar analysis for 1954-55 by provincial districts is given below.

£(000)

Industry GroupAucklandHawke's BayTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtago
Otago PortionSouthland Portion

* To avoid disclosure of details of individual establishments, figures have been included in Miscellaneous products.

Added Value
Food14,7522,4703,1005,533144676455,5173,0183,027
Beverages1,9511656882822898086244358
Tobacco manufactures** *      
Textiles2,080172 2,2946351082,2731,529171
Footwear, other wearing apparel, and made-up textile goods7,8952223184,08911837323,1511,056152
Wood and cork products (except furniture)8,7155397101,945727876871,424738865
Furniture and fittings2,187249701,032306018708338102
Paper and paper products4,853  727   284219259
Printing, publishing, etc.4,0724092783,71969155761,608981304
Leather and leather products (except footwear and apparel)795**148** 38221360
Rubber products1,28839*885** 2,3863813
Chemicals and chemical products2,9873305642,9404240 83093923
Petroleum and coal products296**119   76* 
Non-metallic mineral products n.e.i.4,7573141371,10750750351,5171,210555
Basic metal manufactures427 *303 * 27468*
Metal products (except machinery and transport equipment)4,73828412,493***1,16294951
Machinery (except electrical)4,3603804612,7617048571,879661363
Electrical machinery and appliances1,3302281,803   1,061462 
Transport equipment7,9236706606,3861695481352,5251,123606
Miscellaneous products1,3531272452,3093048241613113
      Totals76,7586,1376,65941,4198223,2731,27528,33414,1156,624

A further table is shown below giving details of added value by industry groups and the main employment districts of the Department of Labour. This compilation is a new one in the factory production series and serves to pinpoint the main areas of manufacture far better than does the classification by provincial districts shown in the previous table.

£(000)

Industry GroupAucklandLower HuttWellingtonChristchurchDunedinAll Other DistrictsTotal for New ZealandPercentage of Total

* Included in Miscellaneous.

Added Value
Food9,3959987523,9192,36120,85738,28220.6
Beverages1,528454547544431,3424,5662.5
Tobacco manufactures***  *1,7240.9
Textiles1,9107415351,4891,3132,6818,6694.7
Footwear, clothing7,2165642,5963,0931,0462,55317,0689.2
Wood manufactures2,2583943941,17665011,61016,4828.9
Furniture and fittings1,9462115156673361,1194,7942.6
Paper and products2,459645142842192,8016,3413.4
Printing, publishing3,2531352,9441,4119432,98411,6706.3
Leather and products77115783802131561,6130.9
Rubber products1,074728582,386383984,6822.5
Chemicals and products2,8301,1521,2257979141,7788,6964.7
Petroleum, coal products196 1197681165150.3
Non-metallic mineral products2,5923352501,1461,0485,06110,4325.6
Basic metal products41286144249683121,2710.7
Metal products4,5279931,1071,1329447959,4985.1
Machinery3,3877111,2241,7435693,40711,0416.0
Electrical products1,1952221,5551,0614621914,6862.5
Transport4,9333,9531,2092,0729577,62220,74611.2
Miscellaneous1,2631,4036784131234852,6411.4
  Totals, added value53,14612,74916,35224,24912,65466,267185,417100.00
  Percentage of New Zealand Total28.76.98.813.16.835.7100.0 

The development of factory production in New Zealand from 1920-21 onward is clearly portrayed in the following diagram, which also shows the relationship between cost of materials, added value, and value of output.

EXPENSES OF OPERATION.—Total operating costs of factory production for the year 1954-55 amounted to £511,680,000, of which salaries and wages accounted for £98,363,000, cost of materials for £365,373,000, and other expenses for £47,943;000 while value of output totalled £550,791,000.

The table below shows the principal items comprised in the figure for expenses of operation, other than salaries and wages and cost of materials, by industry groups for the year 1954-55.

£(000)

Industry GroupCoalElectricityCoke, Gas, Oils, etc.InsuranceInterest on Loans, etc.DepreciationRentRepairs and MaintenanceOtherTotal
Food2,0439201525463322,7321272,4042,36711,622
Beverages10253615644388124053911,513
Tobacco manufactures4681628661032252421
Textiles19312748123133643534847052,508
Footwear, other wearing apparel, and made-up textile goods13146371301504173803939962,663
Wood and cork products (except furniture)7249144448185906959601,5094,504
Furniture and fittings 44687391278186269741
Paper and paper products28914568115254810293626922,764
Printing, publishing, etc.2863210364555942891,3792,604
Leather and leather products (except footwear and apparel)3070335952197086324
Rubber products9592405714468141284181,326
Chemicals and chemical products1201288413252703345167352,504
Petroleum and coal products710171043132756165
Non-metallic mineral products n.e.i.1,039248313145751,017328105834,262
Basic metal manufactures220491513661241103322
Metal products (except machinery and transport equipment)1110684122883311142857871,927
Machinery (except electrical)496951411124091012608932,110
Electrical machinery and appliances772536247175441294921,081
Transport equipment6186612721426303034781,8993,978
Miscellaneous products634736271175895224604
      Totals3,9792,7871,3602,6511,81310,6431,6178,25514,83747,943

CAPITAL INVESTED AND ASSETS.—Information as to the amount of capital invested in manufacturing industries was collected for some years, but the figures obtained were found to be unsatisfactory. The chief factors militating against the collection of reliable information have been the methods of accounting in use in many of the smaller establishments, and the difficulty of apportioning capital where an establishment is only partly manufacturing.

A more satisfactory indication of the capital investment in a manufacturing industry is obtained from figures of manufacturers' fixed assets. Not only are the figures more reliable than those for capital invested, but they do not suffer from the understatement of capital (from the economic viewpoint) which occurs in those cases where the factory premises, or, in some few cases, even the plant, is not owned by the manufacturer, but is rented. In these cases an estimate of the value of the rented asset has been obtained by capitalizing the annual rental shown. Approximations in the figures for fixed assets are also made where one building houses two or more factories carrying on different industries, necessitating an apportionment as between the industries. In most instances, too, fixed assets are stated at their book value, and this may be an overstatement due to insufficient allowance having been made for depreciation, obsolescence, etc., or an understatement owing to appreciated site value, excessive allowance for depreciation, or currency depreciation resulting in the assets being understated in terms of their present earning capacity or replacement cost. It is necessary to bear in mind these limitations to the accuracy of the figures of fixed assets appearing in the following table, which shows the values of these assets for each of the last three years together with an analysis by principal industries for 1954-55. For the year 1954-55 information is also shown by industry groups of the amounts expended during the year by way of capital additions and alterations.

£

Industry GroupCapital Additions and Alterations During the YearValue at End of Year (Including Estimated Value of Rented Assets)
Land and BuildingsPlant and MachineryTotalLand and BuildingsPlant and MachineryTotal
Totals—
  1952-536,775,49911,301,03118,076,53063,278,85045,828,724109,107,574
  1953-546,511,43711,786,76918,298,20669,359,86052,909,370122,269,230
1954-55—
  Food3,313,5613,415,5826,729,14322,551,40415,702,60738,254,011
  Beverages190,319454,093644,4122,021,6652,364,9244,386,589
  Tobacco manufactures13,32689,521102,847484,310354,381838,691
  Textiles178,882746,560925,4423,344,0653,103,1566,447,221
  Footwear, other wearing apparel and made-up textile goods233,767432,724666,4917,216,0302,519,5009,735,530
  Wood and cork products (except furniture)468,892881,8611,350,7535,039,7875,266,01610,305,803
  Furniture and fittings151,222146,482297,7042,175,471788,6242,964,095
  Paper and paper products378,152452,161830,3132,147,5204,133,2786,280,798
  Printing, publishing, etc.455,670887,4301,343,1004,543,2544,030,3868,578,640
  Leather and leather products (except footwear and apparel)15,92850,21666,144599,126332,244931,370
  Rubber products99,697336,215435,9121,491,5561,611,8843,103,440
  Chemicals and chemical products422,560509,699932,2593,660,2832,821,3406,481,623
  Petroleum and coal products12,91235,39348,305212,632149,807362,439
  Non-metallic mineral products n.c.i.478,3801,362,0361,840,4163,656,9865,189,2728,846,258
  Basic metal manufactures27,43350,34277,775534,342341,088875,430
  Metal products (except machinery and transport equipment)414,765583,652998,4173,234,2382,163,0335,397,271
  Machinery (except electrical)536,001557,5731,093,5744,000,8792,226,2506,227,129
  Electrical machinery and appliances111,131171,360282,4911,553,115712,8332,265,948
  Transport equipment938,038658,7021,596,74010,769,0003,266,33414,035,334
  Miscellaneous products89,575239,580329,1551,446,798809,9632,256,761
      Totals, 1954-558,530,21112,061,18220,591,39380,687,46157,886,920138,574,381

ORGANIZATION OF INDUSTRY.—New Zealand's industrial progress has been fairly rapid, but industry is as yet organized on a relatively small scale.

The law in New Zealand restricts the membership of a partnership to not more than twenty persons, a private company to not fewer than two or more than twenty-five persons, and a public company to not fewer than seven persons. Co-operation is characteristic of certain industries engaged in the processing of primary products, mainly butter and cheese manufacturing. As a result of a reclassification of industrial statistics to conform with the New Zealand Standard Industrial Classification, gasworks and electricity generation and supply are now excluded from the Municipal and Government section.

Information as to the character of organization of the establishments engaged in factory production during 1954-55 is given in the following table.

Character of OrganizationNumber of EstablishmentsPersons EngagedSalaries and Wages PaidCost of Materials Used or Operated UponValue of Manufactures or ProductsAdded Value
TotalPer Establishment

* Average of totals.

  No.£(000)£(000)£(000)£(000)£
Individual1,1925,7853,2285,24710,5465,2994,445
Private firm or partnership6653,5922,1493,4227,0273,6055,421
Public registered company85049,09032,790115,137181,21366,07677,736
Private registered company5,14188,00555,318163,114263,801100,68719,585
Municipal and Government1002,4221,6451,7294,2112,48324,826
Co-operative and miscellaneous4184,6643,23376,72483,9927,26817,387
      Totals8,366153,55898,363365,373550,791185,41722,163*

As would be expected, the average size of establishments operated by public registered companies is larger than in any other type of industrial organization, the added value per unit being nearly four times as high as that for private registered companies. Private companies, however, occupy a very high place, both numerically and in the share they contribute to the total added value created in New Zealand factories (54.3 per cent in 1954-55, as compared with 35.6 per cent in the case of public companies).

Examination of the statistics of added value over a series of years indicates that private companies have increased appreciably in relative importance, while the individual and partnership types of organization have declined. Very little change has occurred in the percentage of total added value attributable to the operations of public companies, or municipal and general governmental undertakings.

VALUE AND VOLUME INDICES OF FACTORY PRODUCTION.—Below is a table giving index numbers of added value, value of output, and volume of production based on the year 1938-39. This table commences with the year 1928-29 and runs through to 1950-51, at which stage a new series was commenced based on the year 1949-50.

Base: 1938-39 (=100)

Production YearIndex Numbers of—Production YearIndex Numbers of—
Value Added in ManufactureValue of OutputVolume of ProductionValue Added in ManufactureValue of OutputVolume of Production
1928-298079711940-41125129114
1929-308379741941-42137136116
1930-317568691942-43151145120
1931-326258601943-44162154125
1932-336058631944-45173166129
1933-346463651945-46185171131
1934-357069741946-47205191140
1935-367779811947-48233238151
1936-379093921948-49252263155
1937-389999971949-50285290164
1938-391001001001950-51311345172
1939-40113113110 

With the reclassification in 1951-52 a new series of index numbers was commenced based on the year 1949-50; these are shown below. It should be realized in comparing the two series of index numbers that the latter excludes the activities of three important industries. These relate to the logging operations of sawmillers, previously included in the sawmilling industry, and the generation and supply of gas and electricity, accounting in all for the activities of approximarely 10,000 persons. However, the effect of the exclusion of these industries entirely from the new series is not great, as the two series in the overlapping period record very similar movements.

Base: 1949-50 (=100)

Production YearIndex Numbers of—
Value Added in ManufactureValue of OutputVolume of Production
1949-50100100100
1950-51111120105
1951-52137136112
1952-53142146112
1953-54159156118
1954-55181174131

The table which follows sets out by industry groups, index numbers of value of output, added value, and volume of output for the three latest years. It is not possible to arrive at volume of production index numbers for all the groups, for technical reasons, and consequently some have been omitted, but the total index number for the year is calculated in such a way as to include the groups which cannot be assessed separately.

INDEX NUMBERS OF VALUE AND VOLUME OF FACTORY PRODUCTION

Base: 1949-50 (= 1000)

Industry GroupValue of OutputValue Added in ManufactureVolume of Production
1952-531953-541954-551952-531953-541954-551952-531953-541954-55

* Index not available for the groups, but allowed for in compiling total index.

Food1,4461,4901,5731,3981,5271,6491,0351,0631,096
Beverages1,3901,5901,7221,3901,7011,8181,1451,1821,306
Tobacco manufactures1,2701,3361,3001,3681,3401,2271,1271,1741,148
Textiles1,2391,5641,6681,2681,4681,5989941,1851,223
Footwear, other wearing apparel, and made-up textile goods1,2981,3501,5271,2311,3501,5371,0111,0551,161
Wood and cork products (except furniture)1,4801,6301,816.16021,76619771,1821,1961,252
Furniture and fittings1,2721,4061,5941,3211,4751,628***
Paper and paper products1,79619312,4651,50919412,5321,3011,5991999
Printing, publishing, etc.1,5221,6461,8991,4101,5771,8171,1241,1741,363
Leather and leather products (except footwear and apparel)1,2121,3501,3461,1421,2191,306967981946
Rubber products2,0992,3202,8811,6012,1322,7141,3261,4392,188
Chemicals and chemical products1,4461,5061,7181,3711,5691,8111,1491,2381,411
Petroleum and coal products1,4981,5331,8581,1041,4011,528***
Non-metallic mineral products n.e.i.1,5251,60419201,4261,5561,8761,1171,1551,314
Basic metal manufactures1,8871,5642,0361,6871,5412,011***
Metal products (except machinery and transport equipment)1,6001,6782,1221,5401,7472,215***
Machinery (except electrical)1,8992,0972,4841,5731,7562,078***
Electrical machinery and appliances1,3991,6231,7801,3241,6031,7651,1281,2861,396
Transport equipment1,6101,7882,1441,5511,7192,017***
Miscellaneous products1,2371,4461,7101,2661,4261,620***
      Totals1,4621,5611,7361,4181,5881,8121,1161,1841,305

OVERTIME.—Details of overtime worked in factories by wage-earning employees are summarized in the tables given, which show, by industry groups, the hours worked during the latest three years. The averages given are calculated on the basis of the total number of wage-earners engaged irrespective of the number who actually worked overtime.

Industry GroupTotal Overtime Hours Worked by Wage-earners (Both Male and Female)
1952-531953-541954-55
Food4,596,0054,958,0145,666,331
Beverages477,221467,146491,576
Tobacco manufactures186,637181,757189,518
Textiles621,772687,751744,964
Footwear, other wearing apparel, and made-up textile goods503,739723,641852,580
Wood and cork products (except furniture)1,226,6171,233,1841,331,074
Furniture and fittings275,997304,821385,065
Paper and paper products346,365361,155496,244
Printing, publishing, etc.522,026606,965727,805
Leather and leather products (except footwear and apparel)141,286137,018152,535
Rubber products188,186227,441397,386
Chemicals and chemical products744,763727,088898,343
Petroleum and coal products33,42729,45040,765
Non-metallic mineral products n.e.i.1,114,2651,238,7181,411,120
Basic metal manufactures112,915108,125138,570
Metal products (except machinery and transport equipment)962,5581,126,6921,562,179
Machinery (except electrical)1,260,6111,282,9381,466,142
Electrical machinery and appliances342,537374,141489,837
Transport equipment1,890,8151,642,5242,016,010
Miscellaneous products114,963136,801171,231
      Totals15,662,70516,555,37019,629,275

The next table shows, by industry groups, the hours of overtime worked during 1954-55 by males and females separately.

Industry GroupTotal Overtime Hours Worked by Wage-earnersAverage Overtime Hours Worked by All Wage-earners
MalesFemalesMalesFemales
Food5,195,407470,924261.10128.56
Beverages490,928648279.0936.00
Tobacco manufactures115,63673,882304.31104.50
Textiles596,842148,122152.6137.46
Footwear, other wearing apparel, and made-up textile goods408,554444,02682.3524.51
Wood and cork products (except furniture)1,326,5974,477127.9839.27
Furniture and fittings376,9118,15496.1522.46
Paper and paper products432,20664,038224.2959.79
Printing, publishing, etc.635,72192,084108.4870.83
Leather and leather products (except footwear and apparel)137,48715,048140.8732.93
Rubber products392,4774,909210.5612.15
Chemicals and chemical products863,58534,758285.2942.91
Petroleum and coal products40,765 200.81 
Non-metallic mineral products n.e.i.1,382,60928,511272.17127.85
Basic metal manufactures138,467103199.5217.17
Metal products (except machinery and transport equipment)1,509,50352,676266.2785.10
Machinery (except electrical)1,455,59710,545199.04125.54
Electrical machinery and appliances439,77550,062149.3362.81
Transport equipment2,000,73715,273128.95141.42
Miscellaneous products131,55939,67291.3647.12
      Totals18,071,3631,557,912184.9546.29

SUMMARY OF OPERATIONS.—The following table contains an analysis of production costs in 1954-55, together with the value of products for each industry group and for all industries. In addition, by virtue of the complete details collected annually of the cost structure of goods produced in manufacturing industries, it is possible to give information on the surplus available to manufacturers prior to payment of dividends, taxation, and other appropriations. The only exception occurs in the case of co-operative dairy companies, which do not purchase milk and cream in the way that other manufacturers purchase raw materials. They collect the milk and cream from their shareholders, process it, and pay out to these shareholders the whole of the profits of the sales of the products, less amounts paid to reserves. Manufacturing surplus shown by these companies is therefore confined to the amount of these transfers to reserves and any undistributed profits.

In quite a number of cases, articles produced are transferred at cost to separate selling departments and warehouses, or to retail stores run by the same company or establishment. Where this is apparent, the company concerned is asked to substitute a commercial value for its production. The same procedure holds where a company controls more than one factory, and transfers the products of one to the other for further processing. It must be recognized that estimated values have to be accepted in many transactions of this type.

£(000)

Industry GroupProduction CostsValue of ProductsManufacturing Surplus
Salaries and WagesCost of All Materials UsedOther Expenses of OperationTotal
Food19,767179,64411,622211,033217,9266,892
Beverages1,6074,9721,5138,0939,5391,446
Tobacco manufactures6094,5394215,5696,264695
Textiles4,86420,6292,50828,00229,2981,296
Footwear, other wearing apparel, and make-up textile goods11,88423,8432,66338,39140,9122,521
Wood and cork products (except furniture)8,44717,6134,50430,56434,0953,530
Furniture and fittings3,1634,8377418,7419,632891
Paper and paper products2,0337,4602,76412,25713,8021,545
Printing, publishing, etc.6,0976,6652,60415,36618,3352,969
Leather and leather products (except footwear and apparel)1,0193,0373244,3794,650271
Rubber products2,0134,1511,3267,4908,8331,342
Chemicals and chemical products3,31416,1382,50421,95624,8332,877
Petroleum and coal products1991,3521651,7161,867152
Non-metallic mineral products n.e.i.4,3285,8564,26214,44516,2871,842
Basic metal manufactures6511,7093222,6812,979298
Metal products (except machinery and transport equipment)5,3649,8511,92717,14119,3482,207
Machinery (except electrical)6,31015,0112,11023,43126,0522,621
Electrical machinery and appliances2,6565,6901,0819,42610,375949
Transport equipment12,51329,7863,97846,27750,5324,254
Miscellaneous products1,5252,5926044,7215,233512
      Totals98,363365,37347,943511,680550,79139,111

LIST OF CERTAIN COMMODITIES PRODUCED IN RECENT YEARS.—The following is a list of certain commodities produced in New Zealand during the years 1952-53 to 1955-56.

1952-531953-541954-551955-56
ToastersNo.31,05428,91630,69230,315
IronsNo.59,16161,29559,49164,221
Jugs and kettlesNo.27,95431,83246,49541,999
RadiatorsNo.32,26042,10740,17028,978
Vacuum cleanersNo.38,02536,18341,27331,399
Washing machinesNo.38,80449,85957,37645,458
Refrigerators (home and commercial and freezers)No.36,11444,69366,17671,538
Electric rangesNo.22,61225,37528,50631,049
Electric rangettesNo.9,2996,7126,5595,469
RadiosNo.56,48071,68985,405100,764
Women's fully fashioned nylon hoseDoz. prs.173,795237,556309,373359,576
Men's half hoseDoz. prs.268,903308,378335,111285,365
BlanketsPairs142,437135,755143,515144,671
Floor coverings (textile top coverings)Sq. yd.1,001,0521,397,4331,575,2731,593,048
Mattresses—
  Innerspring—
    SingleNo.9,59515,43815,85421,299
    DoubleNo.9,93710,44412,60918,431
  Soft filled—
    SingleNo.81,52898,818100,64984,998
    DoubleNo.36,77029,90734,58126,832
    InfantsNo.14,34515,91516,17616,919
Venetian blindsSq. ft.2,400,1092,631,4954,040,8524,369,982
Newspapers produced—
  DailiesThousand246,649256,296262,122269,313
  Other than dailiesThousand32,15840,49341,30943,868
Hot-water bottlesNo.253,875207,676277,570378,166
Soap-
  ToiletTon2,2302,7972,9632,930
  BarTon5,8666,1775,7585,278
  Powder and flakeTon9,5169,9199,6949,728
Paints—
  Ready mixed—
    Oil and alkyd-vehicle typeGallons951,4301,121,1951,441,0691,533,848
    EnamelsGallons679,796742,224844,059927,162
ToothpasteCwt.5,8335,4586,5518,437
Furniture and floor polishCwt.14,52218,74020,11621,430
Shoe polishes and cleanersCwt.4,2073,9353,9913,430
Water heaters—
  Under 10 gallonsNo.16,61614,95313,49511,355
  10 gallons and overNo.31,56229,59535,06934,113
Sinks: stainless steelNo.5,5155,82110,59918,741
Sink tops: stainless steelNo.9,43110,42413,47214,683
WheelbarrowsNo.13,61015,45011,36210,399
Lawnmowers (hand and power)No.38,43946,29948,60559,795
Prams, pushchairs, strollers—
CaneNo.9,80910,44810,26410,508
Other than caneNo.15,37916,42018,50420,472
BroomsNo.415,398465,091612,736614,339
ToothbrushesNo.1,835,0162,141,4001,979,1042,111,412

DETAILS OF CERTAIN PRINCIPAL INDUSTRIES.—The principal statistics regarding leading factory industries for the last three years available are set out in the following pages. Fuller details are given in the annual Statistical Report on Industrial Production.

1952-531953-541954-55

* Includes products of establishments classified in other industries.

* Includes production by establishments classified in other industries.

† In addition, in 1952-53 a further 66,905 gallons, in 1953-54 70,534 gallons, and in 1954-55 86,763 gallons were recorded by establishments classified in other industries.

* Principal products shown for this industry include the production of establishments classified in other industries.

* Principal products shown for these industries include the production of establishments classified in other industries.

Meat Freezing and Preserving
Number of establishments 524440
Persons engagedNo.13,08413,20013,749
Production costs—
  Salaries, wages£9,121,32010,055,37811,394,431
  Materials£64,480,46370,163,46977,078,740
  Other expenses£3,517,322' 3,758,8034,451,358
      Totals£77,119,10583,977,65092,924,529
Value of output£80,407,94987,275,06396,637,959
Value added in manufacture£15,927,48617,111,59419,559,219
Overtime worked by wage-earnersHrs.2,821,3713,070,7043,374,080
Principal products—
  Meat—
    Lamb carcasesNo.11,960,27113,010,54813,675,570
    Cwt.3,601,3193,901,7924,075,184
    Mutton carcasesNo.3,137,2732,991,6993,215,020
    Cwt.1,562,3401,447,0611,538,546
    Boned muttonCwt.119,714128,37099,822
    Mutton and lamb piecesCwt.28,76522,04229,576
    Beef quarters, shipped bone inCwt.975,5151,175,5891,498,774
    Beef quarters, without boneCwt.26,89541,9199,840
    Boneless beefCwt.458,845629,164618,790
    Bobby vealCwt.180,802186,634199,489
    Other vealCwt.29,62534,54147,511
    PorkCwt.448,356411,357473,031
    Edible offalsCwt.408,690435,270435,577
    RabbitsNo.1,078,973696,464312,333
  By-products—
    Runners£2,185,7282,781,1383,688,006
    Woolly sheepskinsNo.184,787171,119165,064
    PeltsNo.16,640,30917,640,66018,479,473
    Rabbit skinsNo.355,417412,680145,230
    Cow hidesNo.248,740324,053417,554
    Ox and bull hidesNo.151,459195,305243,043
    Bobby calf hidesNo.1,194,1291,217,9391,322,673
    Other calf hidesNo.17,14023,72237,205
    Woollb.50,608,01049,948,80050,137,760
  Boiling-down products—
    TallowCwt.771,907771,512780,665
    Neatsfoot oilGallons86,70495,570109,690
    ManuresCwt.586,066664,143679,125
    LivermealCwt.22,10222,67429,456
    MeatmealCwt.256,516284,866303,938
  Canned and other preserved meats, pastes, extracts, and miscellaneous canningsCwt.361,801337,943226,187
Ham and Bacon Curing
Number of establishments 424442
Persons engagedNo.807777815
Production costs—
  Salaries, wages£497,735528,518578,622
  Materials£3,962,0134,227,2454,282,970
  Other expenses£230,828242,411291,390
      Totals£4,690,5764,998,1745,152,982
Value of output£5,069,3575,387,6265,422,549
Value added in manufacture£1,107,3441,160,3811,139,579
Overtime worked by wage-earnersHrs.96,280102,541129,065
Pigs dealt with—
  CarcasesNo.368,536356,577373,318
  Cost£3,381,1823,545,2373,545,391
Principal products—
  Ham and baconCwt.270,441257,321271,411
  Frozen porkCwt.52,60551,62139,611
  Small goodsCwt.130,039141,208146,960
  Lard (edible)Cwt.11,32110,16811,019
  Other fatsCwt.7,4244,34612,005
Batter, Cheese, and Other Milk Products
Number of establishments—
  Butter and cheeseNo.340326318
  Other milk productsNo.788082
Persons engagedNo.4,6524,5664,546
Production costs—
  Salaries, wages£3,147,1823,171,9523,215,100
  Materials£80,368,64476,486,69477,525,781
  Other expenses£3,466,2383,733,9333,883,354
      Totals£86,982,06483,392,57984,624,235
Value of output£87,521,47984,408,83985,015,040
Value added in manufacture£7,152,8357,922,1457,489,259
Overtime worked by wage-earnersHrs.719,185781,839839,861
Number of suppliers 51,13747,97848,281
Butterfat used—
  For creamery butterlb.(000)362,337333,523344,795
  For cheesemakinglb.(000)95,52492,91591,478
  For whey butter making—
    Recoveries from own wheylb.(000)3,4973,3823,366
    Whey fat purchasedlb.(000)2,3592,3962,353
    Second grade creamery butterfatlb.(000)163180169
      Total whey butterlb.(000)6,0205,9585,888
  For other manufacturing or for separation for cream saleslb.(000)15,7537,0148,394
Principal products—
  Creamery butterTons196,751180,820186,867
  Whey butterTons3,2763,1373,188
  CheeseTons107,448102,954101,784
  Condensed and powdered whole milkTons28,26216,70117,528
  Skim-milk powderTons38,62540,60032,498
  Buttermilk powderTons5,4736,3768,920
  CaseinTons7,5107,73311,491
Ice-cream
Number of establishments 494444
Persons engagedNo.418382429
Production costs—
  Salaries, wages£206,247203,865237,545
  Materials£592,244700,051804,331
  Other expenses£220,570245,472258,732
      Totals£1,019,0611,149,3881,300,608
Value of output£1,283,5561,447,9561,614,374
Value added in manufacture£691,312747,905810,043
Overtime worked by wage-earnersHrs.31,80329,00133,269
Main materials used—
  MilkGallons446,196536,183601,989
  CreamGallons28,69417,88722,940
  Ice-cream mixtureCwt.53,61941,62458,765
  Butterlb.835,8991,059,5221,124,592
  Skim-milk powderlb.892,9211,295,8401,356,544
  SugarCwt.19,88122,68924,628
Products—
  Bulk ice-creamGallons2,005,6762,049,6782,362,866
  Ice-cream, cartoned, wrapped, chocolate-coated, etc.Gallons1,258,2711,521,1441,680,268
Grain Milling
Number of establishments 474747
Persons engagedNo.840838849
Production costs—
  Salaries, wages£462,444488,081539,257
  Materials£3,340,7143,163,3743,055,931
  Other expenses£316,220338,813378,424
      Totals£4,119,3783,990,2683,973,612
Value of output£4,374,5374,240,8214,309,046
Value added in manufacture£1,033,8231,077,4471,253,115
Overtime worked by wage-earnersHrs.107,72457,99591,599
Main materials used—
  WheatBushels7,731,7038,105,3358,437,863
  OatsBushels638,075601,117539,406
Principal products—
  FlourShort tons173,972177,933183,200
  Wholemeal, wheatmealShort tons7,9278,7659,277
  Bran and pollardShort tons49,39750,92250,659
Prepared cereals for human consumption—
  Oatmeal, rolled oatsShort tons7,0876,6076,302
  Other (including cereals in biscuit and flake form)*Short tons4,7065,2395,764
Biscuits
Number of establishments 121010
Persons engagedNo.1,0631,0381,379
Production costs—
  Salaries, wages£481,842519,688690,006
  Materials£1,391,1451,459,1241,661,725
  Other expenses£293,697341,163464,981
      Totals£2,166,6842,319,9752,816,712
Value of output£2,458,9372,603,8282,847,280
Value added in manufacture£1,067,7921,144,7041,185,555
Overtime worked by wage-earnersHrs.151,486130,974209,813
Main materials used—
  FlourShort tons11,31011,29811,267
  SugarTons3,5354,1434,030
  ChocolateCwt.5,8706,0365,935
  Margarine, lard, confectionery fatCwt.50,01357,66852,342
Biscuits manufacturedTons15,72116,32915,875
Cocoa, Chocolate, and Sugar Confectionery
Number of establishments 555250
Persons engagedNo.1,7831,8631,801
Production costs—
  Salaries, wages£789,742868,104894,843
  Materials£2,856,0163,042,1702,976,127
  Other expenses£402,417410,394492,349
      Totals£4,048,1754,320,6684,363,319
Value of output£4,330,9164,706,7164,759,998
Value added in manufacture£1,474,9001,664,5461,783,871
Overtime worked by wage-earnersHrs.134,608120,556172,277
Main materials used—
  SugarTons8,9919,2758,901
  Cocoa beansCwt.45,18955,53838,669
  Cocoa butterCwt.10,1878,6068,606
  GlucoseCwt.63,31067,86261,155
Confectionery manufactured—
  Chocolate and chocolate-coatedTons7,4087,3906,296
  SugarTons8,9629,5489,559
Fruit and Vegetable Preserving
Number of establishments 344441
Persons engagedNo.1,2001,5511,717
Production costs—
  Salaries, wages£573,141744,950949,034
  Materials£2,268,3542,570,4602,958,827
  Other expenses£318,832449,546534,333
      Totals£3,160,3273,764,9564,442,194
Value of output£3,538,0674,135,0334,866,828
Value added in manufacture£1,269,7131,564,5731,908,001
Overtime worked by wage-earnersHrs.270,271359,738508,495
Main materials used—
  FruitTons7,2796,688'7,958
  Vegetables and tomatoesTons13,29917,93425,862
  SugarTons3,1073,6793,103
Principal products—
  Canned fruitCwt.54,88450,74667,095
  Canned beans in sauceCwt.39,96845,08339,995
  Canned peasCwt.137,839199,303239,476
  Canned green beansCwt.28,45615,90116,997
  Other canned vegetables (not tomatoes)Cwt.17,411
  Tomato soupGallons344,414317,045336,014
  Pickles and saucesGallons441,745*530,767*546,550*
  Jams, jellies, and conservesCwt.70,66973,93747,225
  Canned spaghetti in sauceCwt.36,47135,58440,018
Breweries
Number of establishments 333330
Persons engagedNo.1,3861,3501,370
Production costs—
  Salaries, wages£869,881932,9861,038,175
  Materials£2,973,2103,198,1713,484,364
  Other expenses£778,232989,4861,100,438
      Totals£4,621,3235,120,6435,622,977
Value of output£5,352,7636,317,1756,673,982
Value added in manufacture£2,379,5533,119,0043,189,618
Overtime worked by wage-earnersHrs.379,454380,477408,838
Main materials used—
  MaltBushels1,182,1931,254,1091,331,619
  HopsCwt.6,9336,7896,818
  SugarCwt.61,51265,13469,479
Beer produced for saleGallons38,883,77840,646,81344,202,961
Stout produced for saleGallons471,829454,200445,413
Aerated Waters and Cordials
Number of establishments 898477
Persons engagedNo.564546587
Production costs—
  Salaries, wages£301,542326,542365,072
  Materials£502,026537,216604,725
  Other expenses£146,637171,771202,632
      Totals£950,2051,035,5291,172,429
Value of output£1,175,5701,206,9281,400,542
Value added in manufacture£673,544669,712795,817
Overtime worked by wage-earnersHrs.24,52126,02027,679
Main materials used—
  SugarTons3,3513,5424,009
  Essential oils and essenceslb.87,65494,007111,516
  Fruit extracts and juicesGallons77,65675,45485,184
Aerated waters madeGallons4,689,9184,871,6225,299,858
Cordials madeGallons328,174367,329417,870
Tobacco, Cigars, and Cigarettes
Number of establishments 877
Persons engagedNo.1,3231,2831,210
Production costs—
  Salaries, wages£592,888605,535608,844
  Materials£4,198,9804,555,6054,539,447
  Other expenses£377,595392,718420,983
      Totals£5,169,4635,553,8585,569,274
Value of output£6,120,2776,438,8276,263,890
Value added in manufacture£1,921,2971,883,2221,724,443
Overtime worked by wage-earnersHrs.186,637181,757189,518
Tobacco leaf used in manufacturelb.10,268,34910,687,91010,237,752
Cigarettes madeMillion1,9251,9941,962
Tobacco madelb.5,290,4045,552,8145,379,430
Woollen Milling
Number of establishments 191819
Persons engagedNo.2,4902,6362,628
Production costs—
  Salaries, wages£1,247,0341,480,1401,549,243
  Materials£2,104,5172,991,5483,121,059
  Other expenses£640,668671,327782,701
      Totals£3,992,2195,143,0155,453,003
Value of output£4,229,6595,358,4825,608,643
Value added in manufacture£2,125,1422,366,9342,487,584
Overtime worked by wage-earnersHrs.202,026249,790250,762
Main materials used—
  Wool fibres—
    Greasy and slipe woollb.8,429,8859,085,0768,576,730
    Scoured woollb.227,259611,515397,603
    Tops, noilslb.404,442645,755679,075
    Woollen and worsted yarnlb.86,533278,888360,333
  Non-wool fibres—
    Artificial and syntheticLb.24,75861,083102,142
    OtherLb.15,06516,77227,625
Principal products—
  Woollen clothYd. 54 in.1,358,5341,411,6161,136,048
  Worsted clothYd. 54 in.596,981819,0171,006,144
  FlannelYd. 54 in.319,837450,374500,417
  BlanketsPairs142,437135,755143,515
  RugsNo.25,50837,68334,590
  Yarn produced for sale or transfer—
    Fingeringlb.351,803340,683311,159
    Machine knittinglb.1,734,3722,173,4932,103,749
Hosiery and Other Knitting Mills
Number of establishments 9510091
Persons engagedNo.3,4713,6243,922
Production costs—
  Salaries, wages£1,506,5931,752,4352,014,645
  Materials£3,120,3744,292,2034,302,996
  Other expenses£679,460763,895925,954
      Totals£5,306,4276,808,5337,243,595
Value of output£5,732,4727,407,2427,759,398
Value added in manufacture£2,612,0983,115,0393,456,402
Overtime worked by wage-earnersHrs.169,490150,050180,265
Clothing
Number of establishments 844843801
Persons engagedNo.17,63718,16418,959
Production costs—
  Salaries, wages£6,713,1667,309,6688,243,453
  Materials£15,570,01515,518,12017,851,301
  Other expenses£1,470,5101,598,0191,776,731
      Totals£23,753,69124,425,80727,871,485
Value of output£24,791,00625,690,85129,648,565
Value added in manufacture£9,220,99110,172,73111,797,264
Overtime worked by wage-earnersHrs.270,539396,684499,409
Footwear
Number of establishments 140136130
Persons engagedNo.4,9735,0505,112
Production costs—
  Salaries, wages£2,390,5982,596,3142,910,297
  Materials£3,623,1963,798,7884,195,342
  Other expenses£548,958602,319698,563
      Totals£6,562,7526,997,4217,804,202
Value of output£7,008,2837,408,5138,233,430
Value added in manufacture£3,385,0873,609,7254,038,088
Overtime worked by wage-earnersHrs.200,022288,669318,378
Main materials used—
  Upper leatherSq. ft.8,900,3769,221,15910,066,378
  Sole leatherlb.4,820,1435,133,7255,278,958
  FeltSq. yd.232,138211,660198,592
Principal products—
  Men's and boys' boots and shoesPairs1,131,8741,071,0361,126,098
  Women's and girls' shoesPairs1,522,5891,749,7892,041,402
  Sandals (all kinds)Pairs695,318683,521687,314
  Slippers, leather and felt, etc.Pairs1,570 5631,648,7251,734,325
Sawmills
Number of establishments 587564542
Persons engagedNo.6,0075,8185,866
Production costs—
  Salaries, wages£3,645,7283,772,6614,186,229
  Materials£5,805,6476,487,0197,133,721
  Other expenses£2,042,7832,416,4882,933,320
      Totals£11,494,15812,676,16814,253,270
Value of output£12,882,73014,213,19515,926,270
Value added in manufacture£7,077,0837,726,1768,792,549
Overtime worked by wage-earnersHrs.538,203461,423515,685
Rough sawn timber producedThousand ft. b.m.575,114574,289617,377
Planing Mills
Number of establishments 148149147
Persons engagedNo.1,8501,9601,989
Production costs—
  Salaries, wages£1,052,0401,191,7491,302,159
  Materials£3,946,6284,334,24,962,421
  Other expenses£427,226537,571,222
      Totals£5,425,8946,063,6,835,802
Value of output£5,980,4916,737,2717,548,805
Value added in manufacture£2,033,8632,403,0122,586,384
Overtime worked by wage-earnersHrs.217,452229,251233,671
Rough sawn timber used in manufactureThousand ft. b.m.111,660114,286120,339
Dressed timber produced—
  FloorboardsThousand ft. b.m.28,62731,85033,602
  WeatherboardsThousand ft. b.m.24,17127,40824,512
  OtherThousand ft. b.m.42,71142,95748,341
Joinery work done£1,096,9181,168,0221,258,873
Joinery
Number of establishments 289299313
Persons engagedNo.2,8582,8752,936
Production costs—
  Salaries, wages£1,619,2331,814,2891,968,517
  Materials£2,831,0463,090,6883,497,053
  Other expenses£392,710445,571522,558
      Totals£4,842,9895,350,5485,988,128
Value of output£5,527,1346,000,9506,734,837
Value added in manufacture£2,696,0882,910,2623,237,784
Overtime worked by wage-earnersHrs.302,875370,885415,465
Timber used in manufactureThousand ft. b.m.50,82953,86257,088
Dressed timber produced—
  FloorboardsThousand ft. b.m.2,496.2,8382,932
  WeatherboardsThousand ft. b.m.1,5792,0081,692
  OtherThousand ft. b.m.3,5723,5283,793
Joinery and other woodwork£5,184,9885,600,5286,296,398
Furniture
Number of establishments 536509487
Persons engagedNo.4,2774,3264,349
Production costs—
  Salaries, wages£2,201,2872,454,8002,659,202
  Materials£2,470,3122,728,8173,137,320
  Other expenses£443,398516,086565,185
      Totals£5,114,9975,699,7036,361,707
Value of output£5,611,0436,235,4016,988,696
Value added in manufacture£3,140,7313,506,5843,851,376
Overtime worked by wage-earnersHrs.233,152258,234324,919
Pulp, Paper, and Paperboard
Number of establishments 344
Persons engagedNo.692918973
Production costs—
  Salaries, wages£460,412644,343700,146
  Materials£1,555,8061,498,1972,000,661
  Other expenses£525,5401,288,3952,093,762
      Totals£2,541,7583,430,9354,794,569
Value of output£3,186,4334,044,8365,450,474
Value added in manufacture£1,630,6272,546,6393,449,813
Overtime worked by wage-earnersHrs.172,543180,837234,308
Principal products—
  PaperTons6,89511,64522,494
  Container boardTons16,41615,72917,779
  Fibre building boardSq. ft. (thousand)55,16459,78661,850
Cardboard Boxes, Cartons, and Paper Bags
Number of establishments 444646
Persons engagedNo.1,2531,2911,415
Production costs—
  Salaries, wages£601,083669,869778,929
  Materials£3,089,0722,733,0583,226,265
  Other expenses£298,205314,907410,316
      Totals£3,988,3603,717,8344,415,510
Value of output£4,415,7214,062,0554,918,675
Value added in manufacture£1,326,6491,328,9971,692,410
Overtime worked by wage-earnersHrs.102,277110,702174,675
Paper used in manufactureTons6,7417,3386,942
Cardboard used in manufactureTons20,72920,60624,385
Cardboard boxes, cartons, made£2,987,2682,948,8043,732,833
Paper bags, made£1,238,735894,910963,482
Printing and Publishing
Number of establishments 10010097
Persons engagedNo.4,2194,2914,491
Production costs—
  Salaries, wages£2,542,1352,858,9993,249,086
  Materials£2,877,9573,010,7273,456,914
  Other expenses£1,141,2271,297,0751,560,795
      Totals£6,561,3197,166,8018,266,795
Value of output£8,032,2318,863,45110,321,372
Value added in manufacture£5,154,2745,852,7246,864,458
Overtime worked by wage-earnersHrs.191,772225,672256,103
Newsprint usedTons32,06135,84441,736
Other paper usedTons2,4732,8143,167
Job and General Printing
Number of establishments 258265262
Persons engagedNo.3,9194,0014,132
Production costs—
  Salaries, wages£2,044,2352,280,8962,570,742
  Materials£2,686,2222,671,8163,111,007
  Other expenses£728,441829,060977,908
      Totals£5,458,8985,781,7726,659,657
Value of output£6,267,2786,576,2907,471,903
Value added in manufacture£3,581,0563,904,4744,360,896
Overtime worked by wage-earnersHrs.307,533345,212441,792
Newsprint usedTons1,048917938
Other paper usedTons9,7069,44510,910
Cardboard usedTons2,7762,5093,203
Tanning
Number of establishments 151415
Persons engagedNo.753754757
Production costs—
  Salaries, wages£476,946493,769541,748
  Materials£1,800,0151,889,3311,768,715
  Other expenses£200,068204,074214,656
      Totals£2,477,0292,587,1742,525,119
Value of output£2,590,7192,695,3932,613,004
Value added in manufacture£790,704806,062844,289
Overtime worked by wage-earnersHrs.102,50590,137109,029
Main materials used—
  Cattle hidesNo.361,061336,278338,257
  Yearling and calf hidesNo.244,133210,614238,602
  PeltsNo.920,268672,522380,991
  Sheep-skinsNo.35,35957,12442,090
Principal products—
  Leather—
    Hides—Bendslb.2,860,1962,779,7622,643,411
    Shoulderslb.1,564,2111,383,3891,353,684
    Bellieslb.1,519,6361,544,4451,394,969
    Chrome and other sidesSq. ft.8,384,4388,402,3438,796,411
    YearlingSq. ft.583,362550,732665,631
    CalfSq. ft.996,6151,250,1991,222,611
    Sheep—BasilsSq. ft.224,596194,903222,694
    RoansSq. ft.2,205,5831,794,5621,604,660
    ChamoisDoz.4,50517,32014,598
    Woolly skinsSq. ft.272,979246,058194,263
Rubberware
Number of establishments 272727
Persons engagedNo.1,6371,8012,151
Production costs—
  Salaries, wages£1,060,5761,208,5721,653,492
  Materials£2,937,2802,779,8013,512,724
  Other expenses£812,600888,4571,123,414
      Totals£4,810,4564,876,8306,289,630
Value of output£5,086,3715,721,8647,352,049
Value added in manufacture£2,149,0912,942,0633,839,325
Overtime worked by wage-earnersHrs.141,511171,148328,229
Crude rubber usedlb.(000)8,09610,62314,608
Principal products—
  Motor tiresNo.282,355337,867518,628
  Motor tubesNo.237,228342,301469,716
  Camel backlb.1,939,6132,690,7183,085,379
Milking rubberware£877,069873,592934,217
Bicycle tires and tubes
Battery containers
Rubber and canvas footwear
Chemical Fertilizers
Number of establishments 889
Persons engagedNo.1,1241,0961,236
Production costs—
  Salaries, wages£752,395788,071993,450
  Materials£5,826,8755,289,8446,333,072
  Other expenses£695,541734,122936,662
      Totals£7,274,8116,812,0378,263,184
Value of output£7,859,2957,543,0839,125,588
Value added in manufacture£2,032,4202,253,2392,792,516
Overtime worked by wage-earnersHrs.377,465385,577452,838
Main materials used—
  Rock phosphateTons439,123412,313534,889
  Serpentine rockTons112,71164,46777,028
  SulphurTons69,21478,099102,138
  Carbonate of limeTons17,25510,29215,870
  Nitrate of sodaTons2,6643,2844,115
  PotashTons6,0219,9808,858
Principal products—
  Serpentine superphosphate and mixturesTons207,238207,303292,498
  Basic and reverted superphosphate and mixturesTons28,70031,10646,844
  Other superphosphate and mixtures containing superphosphateTons107,987477,525639,118
  Super compoundTons447,05446,5842,881
Soap and Candle Manufacture
Number of establishments 201715
Persons engagedNo.520520491
Production costs—
  Salaries, wages£301,208302,987325,134
  Materials£1,161,0581,249,8921,302,944
  Other expenses£194,491216,534242,719
      Totals£1,656,7571,769,4131,870,797
Value of output£1,897,1572,069,8592,053,806
Value added in manufacture£736,099819,967750,862
Overtime worked by wage-earnersHrs.68,16069,93767,283
Main materials used—
  TallowTons9,30510,37010,649
  Other oilsTons920905880
  Caustic sodaTons1,6761,7511,662
  Soda ashTons2,6392,6482,561
Principal products—
  Soap—
    ToiletTons2,2302,7972,963
    BarTons5,8666,1775,758
    Powder and flakesTons9,5169,9199,694
  CandlesTons286283261
  SandsoapTons860681674
Paint and Varnish
Number of establishments 242725
Persons engagedNo.661676751
Production costs—
  Salaries, wages£387,984420,643544,600
  Materials£2,917,3392,898,6543,284,845
  Other expenses£241,932250,026333,430
      Totals£3,547,2553,569,3234,162,875
Value of output£3,778,9893,996,3164,703,302
Value added in manufacture£861,6501,097,6621,418,457
Overtime worked by wage-earnersHrs.115,633104,597159,308
Main materials used—
  White leadCwt.39,60032,25133,935
  Other pigments and extendersCwt.125,563144,852183,705
  Linseed oilGallons548,001621,798618,593
  SolventsGallons1,058,1391,086,8841,369,691
  Gums and resinsCwt.26,25626,93451,100
Principal products—
  Ready mixed paintsGal(000)1,0931,3161,620
  Varnishes (for sale)Gal(000)151162132
  Enamels, lacquersGal(000)800861990
Pharmaceuticals, Toilet Goods, and Cosmetics*
Number of establishments 454444
Persons engagedNo.727729722
Production costs—
  Salaries, wages£316,461342,354372,334
  Materials£1,353,1911,504,4171,555,367
  Other expenses£150,283160,296190,758
      Totals£1,819,9352,007,0672,118,459
Value of output£2,125,8672,397,1062,531,422
Value added in manufacture£772,676892,689976,055
Overtime worked by wage-earnersHrs.11,34515,07920,744
Principal products—
  Pharmaceutical products£1,123,8611,250,5201,342,795
  Toilet preparations and cosmetics—
    Dentifrices£186,498223,409251,568
    Cosmetic creams and lotions£123,708149,418126,375
    Hair dressings£237,956273,401300,362
    Powder, face and talcum£118,711159,525172,464
    Lipstick£45,33956,31066,148
Structural Clay Products
Number of establishments 484846
Persons engagedNo.1,0009831,026
Production costs—
  Salaries, wages£611,456667,970728,234
  Materials£108,200125,612150,769
  Other expenses£574,414646,247722,378
      Totals£1,294,0701,439,8291,601,381
Value of output£1,493,0041,586,1231,791,287
Value added in manufacture£1,384,8041,460,5111,640,518
Overtime worked by wage-earnersHrs.198,554223,055231,888
Clay used—
  PurchasedTons15,51211,94211,981
  From own quarryTons254,220253,227278,343
Principal products—
  FirebricksNo.2,959,2963,492,1183,359,174
  Building bricksNo.40,550,59941,637,13747,996,632
  Roofing tilesNo.2,798,5772,718,1762,419,665
  Salt-glazed pipes—
    Above 6 in.No.44,84659,86717,696
    6 in. and belowNo.1,871,9982,051,3282,915,132
Pottery, China, and Earthenware
Number of establishments 777
Persons engagedNo.424461509
Production costs—
  Salaries, wages£219,917249,033300,239
  Materials£77,11294,371123,256
  Other expenses£131,312156,787191,172
      Totals£428,341500,191614,667
Value of output£429,302524,075647,676
Value added in manufacture£352,190429,704524,420
Overtime worked by wage-earnersHrs.85,67676,09391,418
Principal products—
  Insulators and refractory insulator elements£145,541163,024209,058
  Crockery, artware, and novelties, stoneware£170,767252,000280,729
  Other earthenware including sanitary-ware£94,07887,091129,265
Cement
Number of establishments 333
Persons engagedNo.378451528
Production costs—
  Salaries, wages£292,590351,971435,961
  Materials£665,664616,966717,698
  Other expenses£800,103992,3231,586,625
      Totals£1,758,3571,961,2602,740,284
Value of output£2,027,1392,316,8973,038,599
Value added in manufacture£1,361,4751,699,9312,320,901
Overtime worked by wage-earnersHrs.172,909237,726304,998
Principal materials—
  LimestoneTons208,120248,681295,937
  Clay, marl, cement rockTons226,382234,883313,146
  GypsumTons8,91610,60312,391
Cement madeTons274,625288,241361,775
Concrete Products
Number of establishments 245237262
Persons engagedNo.1,6791,7221,892
Production costs—
  Salaries, wages£1,000,8051,094,4811,319,996
  Materials£1,639,9741,670,8742,067,199
  Other expenses£344,352374,071482,859
      Totals£2,985,1313,139,4263,870,054
Value of output£3,465,9653,667,9434,536,966
Value added in manufacture£1,825,9911,997,0692,469,767
Overtime worked by wage-earnersHrs.196,340200,743269,181
  Materials used—
  Portland cementTons53,11454,83267,868
  Sand, shingleYd.192,815198,261246,174
  ReinforcingTons6,7827,05710,562
  PumiceYd.31,48430,80031,666
Principal products—
  Roofing tilesNo.16,362,65213,266,55113,619,719
  Fencing postsNo.1,358,7081,664,0862,456,321
  Housing bricks and blocksNo.2,482,2562,457,4873,164,017
  Coppers, boilersNo.16,19113,84810,101
  PipesTons55,72353,13165,552
Plywood and Veneer
Number of establishments 777
Persons engagedNo.483493505
Production costs—
  Salaries, wages£264,461298,435316,201
  Materials£346,140369,374433,854
  Other expenses£154,582170,876208,603
      Totals£765,183838,685958,658
Value of output£875,781944,1451,091,412
Value added in manufacture£529,641574,771657,558
Overtime worked by wage-earnersHrs.73,23885,76068,671
Species of logs used—
  RimuFt. (H. Dahl)7,946,0277,980,8238,279,058
  MataiFt. (H. Dahl)1,374,5821,475,8591,610,352
  KahikateaFt. (H. Dahl)1,199,6301,300,3281,018,300
  Radiata pineFt. (H. Dahl)1,695,9921,648,7841,535,704
  OtherFt. (H. Dahl)520,420194,34597,907
Plywood made (3/16 in. basis)Sq. ft.30,814,65730,868,33132,699,253
Range Making*
Number of establishments 1098
Persons engagedNo.9651,018969
Production costs—
  Salaries, wages£548,836616,030629,207
  Materials£635,132674,376691,518
  Other expenses£138,894199,029201,390
      Totals£1,322,8621,489,4351,522,115
Value of output£1,430,2261,667,2511,694,358
Value added in manufacture£795,094992,8751,002,840
Overtime worked by wage-earnersHrs.116,562121,856115,783
Iron and steel usedTons4,2284,4804,212
Principal products—
  Domestic electric rangesNo.22,61225,37528,506
  Domestic electric rangettesNo.9,2996,7126,559
  Domestic coal rangesNo.4,7945,1294,246
Radio Assembly and Manufacture*
Number of establishments 252722
Persons engagedNo.9781,0481,064
Production costs—
  Salaries, wages£493,155564,724638,059
  Materials£1,351,8781,608,0581,630,695
  Other expenses£177,890191,101247,181
      Totals£2,022,9232,363,8832,515,935
Value of output£2,128,8432,571,4402,654,560
Value added in manufacture£776,965963,3821,023,865
Overtime worked by wage-earnersHrs.82,08792,842146,480
Principal products—
  Radio receivers, table models—
    BroadcastNo.18,59426,47130,589
    Broadcast and short-waveNo.9,35911,01913,273
    RadiogramNo.8,3915,9156,836
  Radio receivers, console models—
    BroadcastNo.474782400
    Broadcast and short-waveNo.516468515
    RadiogramNo.2,4166,1907,836
  Portable receiversNo.5,7959,10210,719
  Automobile receiversNo.10,93511,74215,237
Motor Vehicle Assembly
Number of establishments 111212
Persons engagedNo.1,9192,1022,579
Production costs—
  Salaries, wages£1,440,6821,535,7982,091,407
  Materials£12,549,52613,182,12616,846,208
  Other expenses£593,502636,224661,792
      Totals£14,583,71015,354,14819,599,407
Value of output£15,448,85616,419,76221,309,974
Value added in manufacture£2,899,3303,237,6364,463,766
Overtime worked by wage-earnersHrs.548,298465,839662,017
Vehicles assembled—
  CarsNo.15,48020,67626,895
  BusesNo.47115156
  VansNo.1,2449901,148
  TrucksNo.6,3993,5775,470
Motor Body Building
Number of establishments 847779
Persons engagedNo.1,2481,1891,193
Production costs—
  Salaries, wages£722,971717,499784,442
  Materials£758,433708,870866,148
  Other expenses£201,437182,760199,036
      Totals£1,682,8411,609,1291,849,626
Value of output£1,930,7521,812,4842,020,104
Value added in manufacture£1,172,3191,103,61*-}1,153,956
Overtime worked by wage-earnersHrs.115,34678,967105,634
Main materials—
  TimberFt. b.m.1,740,6691,231,8011,347,213
  PlywoodSq. ft.410,789337,802271,381
  Paints and oilsGallons21,00519,17023,199
Motor bodies built—
  BusesNo.205191141
  VansNo.661369488
  TrucksNo.1,3571,2231,381
Motor Repairs
Number of establishments 1,5541,4481,554
Persons engagedNo.11,42711,54512,625
Production costs—
  Salaries, wages£5,904,6606,810,4737,715,104
  Materials£7,529,3249,271,74010,506,963
  Other expenses£1,718,7172,002,3682,408,446
      Totals£15,152,70118,084,58120,630,513
Value of output£16,996,17219,912,68122,561,173
Value added in manufacture£9,466,84810,640,94112,054,210
Overtime worked by wage-earnersHrs.690,238592,081702,203
Sheetmetal Working
Number of establishments 160156154
Persons engagedNo.3,0783,1683,475
Production costs—
  Salaries, wages£1,805,7111,998,9772,481,402
  Materials£4,022,0433,890,9414,557,488
  Other expenses£581,712631,709816,878
      Totals£6,409,4666,521,6277,855,768
Value of output£7,211,5347,379,3928,881,555
Value added in manufacture£3,189,4913,488,4514,324,067
Overtime worked by wage-earnersHrs.446,455534,094773,845
Metal Products n.e.i.
Number of establishments 133139137
Persons engagedNo.2,4272,6303,044
Production costs—
  Salaries and wages£1,516,0171,794,9462,271,941
  Materials£2,648,2372,792,3113,672,598
  Other expenses£537,139642,499922,405
      Totals£4,701,3935,229,7566,866,944
Value of output£5,339,1745,892,4907,787,983
Value added in manufacture£2,690,9373,100,1794,115,385
Overtime worked by wage-earnersHrs.394,343465,852638,435
Agricultural and Pastoral Machinery
Number of establishments 1009587
Persons engagedNo.1,3531,3361,442
Production costs—
  Salaries, wages£725,477786,226924,002
  Materials£4,010,5904,314,9414,076,268
  Other expenses£209,176227,619267,290
      Totals£4,945,2435,328,7865,267,560
Value of output£5,355,4035,745,2995,674,552
Value added in manufacture£1,344,8131,430,3581,598,284
Overtime worked by wage-earnersHrs.124,558125,593133,202
Machinery n.e.i.
Number of establishments 342349372
Persons engagedNo.6,9726,9957,475
Production costs—
  Salaries, wages£4,161,2204,547,3915,385,543
  Materials£7,544,8508,354,59010,934,797
  Other expenses£1,365,9431,552,7191,842,994
      Totals£13,072,01314,454,70018,163,334
Value of output£14,560,48516,253,05320,377,797
Value added in manufacture£7,015,6357,898,4639,443,000
Overtime worked by wage-earnersHrs.1,136,0531,157,3451,332,940

Chapter 25. SECTION 25—BUILDING, CONSTRUCTION, AND HOUSING

Table of Contents

INTRODUCTORY.—Within the short span of a century New Zealand has been transformed from a virgin wilderness into a country whose community enjoys the amenities of modern social and industrial life. In the pioneer stages of colonization the development of the resources of the country demanded an almost mushroom growth of building and construction activity in the formation of railways, roads, and harbours, in addition to provision for the housing needs of a rapidly growing population. More recently the utilization of available resources of water power has involved major schemes of construction of hydro-electric stations in various parts of New Zealand, and the reticulation of practically the whole of the inhabited portion of the country. The utilization of forest resources, land settlement, and the growth of factory industries have required extensive building and construction works, rural and urban, while the increasing housing needs of a growing population are reflected in a steady long-term increase in the building of houses and flats. The increase in trade and industry, with the resultant growth of the towns, has been accompanied by extensive construction of factories, shops, offices, warehouses, etc.

With the passing of the early stages of social and industrial development, replacements of obsolete and obsolescent structures and general maintenance will occupy a larger place in building and construction activity than was the case formerly, although there have been new avenues of industry requiring further major building and constructional operations. For example, the development of aviation in New Zealand required the formation of a chain of landing grounds and airports. The increase in motor traffic has necessitated a reorientation of roading policy, much new construction and extensive alterations to the surfaces of existing roads being required. The diversification of factory industries in recent years has involved extensive building operations—particularly in the engineering trades—while modernization of factory equipment and of shop and office accommodation has been responsible for a further appreciable proportion of building activity. Developments in recent years in the production of pulp and paper from the exotic forests have contributed to further demands on this industrial sector.

An interesting feature of building and construction activity in New Zealand is the absence of a marked seasonal decline in the winter months, since winters are not sufficiently severe, except in a few districts, to interfere materially with the building of houses and flats or other construction work.

The building and construction industry is particularly sensitive to cyclical fluctuations in business conditions, and it is not surprising to note that in the past marked changes in building activity have coincided with the ebb and flow of trade and industry. Governmental policy in regard to public-works construction in such times has been directed towards accelerating State activity in this direction in times of depression and in the slack seasons of the year with a view to alleviating unemployment. While considerable success has been achieved on various occasions, at other times the expansion of public works has been limited for financial reasons. Private building suffered severely during the depression, but later revived substantially to reach its pre-war peak in 1938-39. Thereafter a progressive decline in the importation of essential materials, notably steel and iron, took place, with consequential effects on normal large-scale construction. After 1941, however, the full effect of war began to have its effect, while Japan's entry into the war accentuated the diversion of men and building materials to aerodromes and other defence constructional work. This diversion was maintained as the necessity arose to provide accommodation for Allied Forces using New Zealand as a base, for operations in the Pacific area. The cumulative effect of these circumstances may be gauged from the record low level of building permits for urban districts in 1942-43, the value of which, £2.7 million, may be compared with the 1938-39 figure of £12.1 million. Thereafter, with the completion of the major portion of defence programmes, a distinct revival of civil building took place, the improvement being progressively maintained despite the hampering effects of shortages of skilled labour and many essential building materials. By 1944-45 the annual value had exceeded the highest pre-war figure, although it would appear that much of the increase over earlier years was a reflection of higher costs. If the number of permits for new houses and flats can be safely used as a guide, then by the 1946-47 year building activity both in volume and value had by far exceeded pre-war figures. Since then, building activity has continued at higher levels in each successive year until 1955-56 when there was a slight decrease.

The value of building permits in urban districts for 1955-56 totalled £70.2 million, compared with £74.6 million in 1954-55. The total value of permits for urban and rural districts combined in 1955-56 was £90.2 million, which was a decrease of £3.2 million or 3.5 per cent over the 1954-55 figure.

Building controls introduced seventeen years ago as war-time emergency regulations to conserve materials and man-power were removed in December 1956. Local authorities have now full power to issue building permits without restrictions.

Statistics of Building Activity.—A collection of annual statistics of building permits issued in cities, boroughs, and town districts was initiated in 1921-22, while a monthly collection on a more restricted scale was begun in 1926, and enlarged in April 1951 by the inclusion of a further twenty-one local authorities. The collection of rural statistics was first made for the 1937-38 year. From 1925 to 1941 an annual collection of returns from builders and contractors was obtained, affording, inter alia, an analysis of costs, etc., not available from the building permit statistics. Reference to a further collection undertaken in 1951-52 is made at the end of this Section.

Trends in Average Costs of Some Representative Lines.—The following table is of interest in that it illustrates trends in the cost of some of the more representative lines of building activity over a period with general characteristics of rising costs and prices.

Cost in Year Stated
19391945End of 1950End of 1956
State rental house (976 square feet)£1,061£1,479£2,172£2,623
Accommodation on works—
  Single men£30£125£165£257
  Married men£135 £1,000£1,560
Buildings (reinforced concrete): For similar size and type£10,000£15,700£25,100£29,200
Bridge: Concrete, per cubic yard£12 2s.£19 7s.£31 7s.£44
Fencing (labour only), per chain10s. 6d.£1£1 17s. 6d.£2 15s. 0d.

The movement in costs of some particular lines of general building materials is now given, the first figure in each instance relating to 1939 and the last figure to the end of 1956: hardwood sleepers, 7s. to 33s. 6d.; structural steel, £11-£14 to £65-£70; and cement, £4 8s. 3d. to £12 10s. 0d. per ton.

Building Materials.—Most building materials are in good supply. The following materials call for special comment.

Timber.—The supply of indigenous timber has improved, but as the bush reserves are depleted sales of exotic timber are expected to increase, provided that full use is made of improved methods of preservation, standards of grading, and construction techniques.

Cement.—Existing production plants have been expanded, and two further units are expected to commence operations early in 1957. Production should be sufficient to meet New Zealand requirements. A sixth unit is planned to commence production in 1958. The importation of cement is being discontinued.

Bricks, Tiles, and Concrete Products.—The supply of bricks has improved, and there are ample stocks of clay and cement tiles. The use of concrete blocks in building is growing, as these blocks can be produced quickly with low labour and plant costs.

Paints, Varnishes, and Enamels.—Industrial output of paints and varnishes for 1955-56 increased by 4.4 per cent over 1954-55. Production of paints rose from 1,620,000 gallons in 1954-55 to 1,687,000 gallons in 1955-56. In 1955-56 production of varnishes and enamels was 115,000 gallons and 1,098,149 gallons respectively.

Wallboards.—Production of fibreboards (both soft and hardboard) has increased, and local manufacturers can supply most of the requirements, although boards of special sizes and qualities have to be imported. Additional productive capacity for the manufacture of plasterboard was brought into operation early in 1957, and domestic production should be sufficient to meet demand.

Plywood.—Plywood production has expanded, but it is expected that production from indigenous logs will tend to decline. To compensate for this, production of pine plywood and plywood from imported logs will increase.

Structural and Reinforcing Steel and Galvanized Corrugated and Flat Sheets.—There is no domestic production of these materials, which are free of import licensing from all sources. New Zealand's normal suppliers are the United Kingdom and Australia, but in times of shortage supplementary supplies come from Continental Europe, North America, Japan, and Hong Kong. During 1955 imports of galvanized sheets reached the record total of 52,606 tons, and supplies continued to be ample during 1956. Some difficulty was experienced in regard to supplies of structural and reinforcing steel, and Customs duties were suspended throughout 1956 to facilitate imports from foreign sources without unduly increasing building costs in New Zealand. This action resulted in supplies being maintained at an adequate level.

Availability of Principal Building Materials.—The following tables show the availability of the principal building materials in the years quoted.

The first of the two tables relates to the production of principal building materials.

PRODUCTION OF PRINCIPAL BUILDING MATERIALS

Year Ended 31 MarchRoughsawn TimberDressed Timber (from Rough-sawn)Building Sheet*PlywoodWallboardPaints, etc.
PaintsVarnishesEnamels, Lacquers

* Asbestos-cement and cement sheet.

† Information not available.

‡ Includes fibrous plasterboard

 Ft. b.m. (million)Sq. ft. (million)Gallons (thousand)
1939316.769.614.7445108157
1940336.068.917.1560132213
1941342.270.016.3616151228
1942324.567.513.1582189233
1943341.564.316.924.1645158211
1944350.758.015.234.6646171220
1945340.156.318.844.4776175246
1946344.759.822.620.953.8822164306
1947354.067.821.522.852.7702156346
1948430.663.217.924.270.41,009245440
1949470.376.215.225.379.91,179215542
1950478.476.218.626.085.51,048182586
1951527.692.223.231.188.71,208179688
1952575.2112.623.832.9102.51,203174807
1953573.0104.525.030.8106.11,093151800
1954572.2113.726.530.9121.81,316162861
1955616.0119.431.232.7124.51,620132990
1956625.8121.128.435.7132.01,6771151,098
Year Ended 31 MarchRoofing-tilesBricks and BlocksDrainpipes,* Salt Glazed, 6 in. and BelowCement
ClayConcreteBuilding Bricks, ClayConcrete*
BricksBlocks

* Information not available prior to 1952.

   Number (million)  Tons (000)
19392.74.529.1   216.1
19402.54.533.4   231.0
19412.24.730.4   214.6
19422.35.227.6   215.9
19432.22.520.6   214.3
19442.12.815.7   235.2
19452.65.3190   228.9
19463.27.520.5   234.9
19473.08.023.8   219.5
19484.310.825.1   226.8
19494.612.928.5   243.1
19504.315.134.3   245.6
19513.514.938.1   204.4
19522.614.937.20.81.31.83238.6
19532.816.440.60.91.71.87274.6
19542.713.341.60.32.92.05288.2
19552.413648.00.4402.20361.8
19562.212.448.10.35.52.37422.7

To complete the review, the second table deals with imports of these materials.

IMPORTS OF PRINCIPAL BUILDING MATERIALS

Year Ended 31 DecemberTimber, SawnBuilding Sheet*PlywoodWallboardLinseed OilCommon Window Glass

* Asbestos-cement and cement sheet.

† Information not available.

 Ft. (b.m.)Sq. ft.Sq. ft.Sq. ft.GallonsSq. ft.
 (million)(000)(000)(000)(000)(000)
193829.82,2508373,377
193927.26127103,966
194013.52709623,570
194112.6327973,981
19427.35857713,975
194310.62402913,190
194411.465803,619
194513.413452,550
194614.952973,935
194726.55913056,693
194820.43,30663011,108
194930.72,7941,0725,0897228,056
195023.34,1098288,2031886,933
195125.49,3241,57611,8396377,427
195246.75,7902,31721,53638012,724
195326.34104261,910349,278
195430.43179182,34655310,138
195541.86304,93315,85991812,403
Year Ended 31 DecemberPlaster of ParisGypsumAsbestos, CrudeCementGalvanized-iron SheetAluminium Sheet
Cwt.(000)CorrugatedFlat

* Information not available.

1938264.5297.5*27.0268120*
1939234.1489.6*31.0316110*
194056.3661.8*25.618568*
194110.4565.115.611.55538*
19422.6269.646.89.54849*
19435.7263.260.064.67357*
194422.3383.454.213.51358*
194581.5297.369.439.13480*
194623.6487.533.0134.86096*
1947120.2584.145.9273.85689*
194896.0539.137.783.46777*
1949185.8786.430.3631.86010657
1950168.5566.275.71,424.910211770
1951141.2304.347.02,868.113112250
1952365.2702.094.92,466.321816676
1953222.0610.236.53,863.840414515
1954330.8798.369.03,727.164529319
1955408.8677.381.12,694.379925332

THE HOUSING SITUATION.—In the post-war years there has been a steady increase in house building in New Zealand as servicemen have re-settled, as materials have become more freely available, and as the labour force has grown. Efforts have been made to meet the backlog of housing construction, which dates back to the depression years of the early thirties and was aggravated by reduced activity during the war years. There are indications that the backlog has been overcome in some of the smaller centres, following the erection of record numbers of houses in recent years, reaching a peak of 19,200 new houses for the year ended 31 March 1956. This rate of house building in relation to population is higher than in most countries.

In New Zealand houses have largely been built by private enterprise. The State has assisted by providing loan money. From legislation passed in 1894 has grown up the State Advances Corporation which made loans for over 6,700 of the 16,100 new houses built for private ownership in 1955-56. Other State and private lending institutions cater for loans to home owners.

Since 1937 the State, using the services of private contractors, has been building rental houses. Over 47,800 of these houses have now been built, and since 1950 over 12,250 of them have been sold to the occupiers. About 2,500 of these houses are now built each year and let to the most deserving applicants with an income of not more than £765 a year. Some 800 houses are also built by the State each year for the accommodation of Government employees subject to transfer.

Post-war conditions have militated against the building by private enterprise of houses for rental, although a small number of flats has been built for rental. Over 80 per cent of the houses built annually at present are for private home ownership.

The Government recognizes that it should provide housing for those who cannot meet their own needs, should assist in the housing of the elderly, and in slum clearance, and otherwise promote by all appropriate means the more rapid and extended construction of houses for the community in general.

This policy was enunciated in the Government's statement on housing policy in 1950 in which it was recognized to be the Government's function:

  1. To examine housing needs and to promote the broad lines of the country's housing programme.

  2. To encourage conditions that will enable people to provide houses for themselves.

  3. To assist groups with special housing problems, such as people in the lower income groups.

  4. To ensure that finance is available to private home builders, local bodies, and other organizations concerned with the housing needs of the people.

  5. To endeavour to increase building resources of materials and labour, and to encourage the best use of these resources in housing and to meet other constructional needs.

In August 1953 the Government convened a National Housing Conference for the purpose of surveying the general housing situation in New Zealand and investigating ways and means of implementing the Government's housing policy of making houses available to the people at a reasonable cost. The conference was attended by builders and others directly associated with the building industry and also by employers, workers, welfare organizations, local bodies, organizations interested in housing finance, and other sections of the public.

Every aspect of housing was discussed, and action taken on the resolutions adopted by the conference has helped to effect a marked improvement in the housing position. The conference assessed the extent of the housing shortage and set a number of 206,000 houses in ten years as a target to overcome the shortage. This represented an increase of 25 per cent in the building rate. A National Housing Council was also set up.

Against this background a revised housing policy has been evolved following the appointment of a Minister of Housing.

The problem has been approached with the intention of getting greater production from the existing labour force, in the main by reducing non-productive lime between the finish of one house and the start of the next, and by eliminating delays caused by interruptions in the supply of building materials. The Group Building Scheme is designed expressly to give builders this continuity of work and to enable them to make better use of their resources. The most significant development in the last seventeen years, this scheme has become a major source for the extra houses needed.

The aim of the Group Building Scheme is to build houses for sale to those in the lower and middle income groups. Plans and specifications are checked by the State Advances Corporation, which also supervises the work. Builders erect groups of houses for sale, and are thus given the opportunity of employing their organizations in the most efficient way, supported by a Government undertaking to take over a certain proportion of any unsold houses. At 31 March 1957 there were 480 builders participating in the scheme in 78 towns, and 10,208 houses were programmed; of these 5,819 had been completed and sold, and 946 were under construction.

In the sphere of building finance, the Minister of Housing announced several policy changes in September 1953. For State Advances loans, the terms, in appropriate cases, would be extended to thirty-five or forty years with adjustments up or down at fixed periods.

To encourage employers to build houses for their employees, employers would be allowed to write off 30 per cent of the cost of such houses as depreciation in the first year.

Withdrawals could also be made at any time from national savings for the acquisition of homes.

A mortgage guarantee scheme was provided whereby the State Advances Corporation guarantees financial institutions repayment by the borrower of the difference between the normal housing loan and 90 per cent of the valuation, the maximum loan under this scheme being £2,200. (See Section 33B.) The suspensory loan scheme, instituted in December 1949, has also been continued.

That the building industry is responding to the obligation it has been asked to assume in the expansion of production is shown by the record total of 19,200 new houses completed for the year ended 31 March 1956. Manpower has been built up, and 14,496 persons were employed on the erection of houses and flats in April 1956. Materials are in fairly good supply.

A noticeably larger number of houses is being built for prices ranging about £2,500 and catering generally for those people whose income is above the qualifying limit for State houses, but whose savings are not enough to finance houses costing £3,000 or more. To some extent this shows the influence of the Government's encouragement of the use of low-cost designs, and of the Group Building Scheme under which builders are able to build more cheaply than if they were working on individual houses. In other directions, by means of a low-cost plan service and by making available as many Crown sections as possible on leasehold or deferred payment licence, initial costs to the home builder are also reduced. The present policy is to make available for private building any Crown sections that are surplus to the requirements of State housing development, but there is an obvious limit to this supply. Some overall responsibility for the provision of building sites is most important, and local authorities have been asked to assist in this direction.

Encouragement is also being given to the building of blocks of residential flats, both for rental and sale. The Government, recognizing the need to cater for that section of the community for whom flats are the most suitable accommodation and to promote higher density housing in central city areas to curb urban sprawl, has introduced a scheme under which individual flats can be offered for sale. To give a lead to private enterprise the Government is building several blocks of fiats in which the individual flats will be offered to the public in this manner. Under the arrangement a company is formed in which the share capital is divided into blocks of shares. A person may buy a block of shares, the ownership of which entitles him to permanent occupation of a particular flat. Under the Housing Act 1955 power is given to the State Advances Corporation to hold shares in companies formed to erect or purchase flats, so that if immediate sale of a flat owned by a cooperative company is not possible, the Corporation can hold the rights to the flat meantime and let it in the ordinary way.

Already considerable interest has been shown, particularly in Auckland and Wellington, and the Government feels that this scheme when it is pioneered in New Zealand may well prove the solution to the housing problem of many people.

One of the biggest obstacles in the introduction of new policy features is the passing on of information quickly to those affected by the changes. This has been particularly true of the new housing policy which, for smooth operation, depends upon the help of many sections of the community, such as builders, lending institutions, and local authorities. Although direct contact has been maintained with organizations and individuals by means of an active information service, the dissemination of information, particularly where new ground has been broken, has been aided greatly by the Press. Several publications have been issued, including a manual for local authorities, Housing the Citizen, and two editions of Your Own Home—How?, which were produced to promote public interest in home ownership, as well as leaflets on Staff Housing, Plans for Flats, Building Flats for Sale, Land Development for Local Authorities, and sets of notes on the operation of the Group Building Scheme, on Homes Advisory Bureaux for local authorities, on the Build Your Own Home Scheme, and on the operation of the Rural Housing Act. Parades of Homes have been held in most of the cities.

Reference to the provisions made for the governmental financing of home building on behalf of private owners is contained in the section of this Year-Book dealing with State Advances (Section 33B).

Role of Local Authorities.—In addition to the activities briefly outlined earlier, the housing policy of the Government includes the provision of loans to local authorities at 3 1/2 per cent per annum to enable them to undertake the erection of accommodation for pensioners or persons in comparable circumstances. Since 1950 there has been a generous Government subsidy for pensioners' housing, and it now is half the net capital cost, with a maximum of £850 for a two-person unit and £700 for a one-person unit. At 30 September 1956 Government subsidies of £317,439 had been granted to local authorities, and also loans of £400,585. Local authorities were providing accommodation for 780 elderly persons.

The State Advances Corporation invests moneys from its General Reserve Fund in loans to local authorities for staff housing at the current ruling rate for local authority loans—i.e., 4 5/8 to 4 7/8 per cent—and many local authorities are building houses to attract and retain staff of good calibre.

The Rural Housing Act 1939, and subsequent amendments thereto, provide facilities for the granting of financial assistance to farmers requiring new houses for themselves or their employees, or desiring to improve their existing houses. The County Councils have been charged with the duty of investigating the loan applications, and provided they are satisfied with the security, etc., they have authority to approve a loan subject to the prior consent of the Board of Management of the State Advances Corporation. Loans are made to local authorities bearing interest at 4 per cent (rate charged by the county to the farmer borrowers is 4 1/2 per cent), and are repayable on the amortization system over terms of up to thirty-five years. The amount that may be advanced for the erection of a house under this scheme has been raised from £1,500 to £2,000, and the suspensory loan benefits described in Section 33B are available to applicants who comply with the conditions laid down. At 31 March 1956 £594,981 (in respect of 556 houses) had been uplifted by County Councils.

Borough Councils are authorized under the Municipal Corporations Act to provide loans for housing purposes up to a limit of £2,222; to subdivide for such purposes any land vested in a Council and not held by it in trust for any particular purpose other than housing; and to sell or lease allotments for housing purposes. Local authorities may also apply to the Local Government Loans Board for blanket authorities for the purchase of land for subdivision for housing purposes. Local authorities are being encouraged to play a more prominent part in the housing of their citizens. Every, local authority is being encouraged to establish a Homes Advisory Bureau to foster building and home ownership locally.

STATISTICS OF THE 1951 AND 1956 CENSUSES—Full details of dwelling statistics as recorded at the 1951 Census were published in Volume VII—Dwellings and Households. Certain summaries dealing with nature of dwelling, tenure, rooms, occupants, material of outer walls, etc., will be found in pages 595-598 of the 1954 Year-Book.

Figures for dwellings from the 1956 Census are given below with comparative figures from the 1951 Census. The 1956 figures are preliminary only and subject to possible amendment after final checking.

 Census 1951Census 1956
All occupied dwellings504,987572,976
  Average number of occupants per dwelling3.833.78
Uninhabited dwellings—
  Occupants temporarily away9,30710,745
  Untenanted dwellings7,74712,250
Baches (week-end or summer dwellings)15,61519,217
      Total, uninhabited32,66942,212
Dwellings in course of erection9,59710,125

STATE HOUSE CONSTRUCTION.—A programme of direct home building by the Government was commenced in March 1937. The purpose of this branch of the Government's activities was to provide homes of a modern standard of comfort to be let at reasonable rentals to people in the medium and lower income groups. The legislative provision for this programme is contained in the Housing Act 1919, the administration of which was transferred to the State Advances Corporation by the State Advances Corporation Act 1936. To give effect to the Government's policy a special Housing Construction Branch of the State Advances Corporation was set up in September 1936. Early in 1944 the control of the Housing Construction Branch was transferred to the Ministry of Works.

The State Advances Corporation Act 1936 made provision for a special Housing Account with the Reserve Bank, and the Statutes Amendment Act 1936 provided the necessary authority to acquire land under the Public Works Act 1928 for the purpose of housing. The actual construction work is mainly carried out by contractors, tenders being called for the various contracts. The Housing Division has also built a number of houses by trainees under the scheme for the rehabilitation of returned servicemen. Contracts had been arranged with the Rehabilitation Department for the labour involved in houses situated in forty-two localities. While most of these houses were situated in the larger towns, in a few instances the rehabilitation trainees were employed in isolated districts where the Housing Division had been unable to engage private contractors. The Rehabilitation training scheme came to an end in January 1954 with the completion of houses in Gisborne and Dunedin. Altogether 4,440 houses were built by the trainees. In past years shops were built in some State housing settlements for letting purposes, but the current policy is to sell sites (with a preferential allocation in favour of ex-servicemen) for the erection of shops under private ownership. On completion, houses are handed over to the State Advances Corporation for administration. It also administers the shops built in earlier years.

In addition to the general scheme, the organization of the Housing Construction Division is utilized for the purpose of erecting houses for other Government Departments, and houses have been built for twenty-five Departments of State. Units completed under this arrangement totalled 6,126 up to 31 March 1956 with a further 506 in the constructional stage. Included in this total are houses built for armed forces personnel. In the period 1 April 1939 to 31 March 1956 contracts were let for the construction of 1,559 houses for the Navy, Army, and Air Force. A subsidiary scheme within this general framework is of interest. It covers the erection of houses and other farm buildings for returned servicemen. The scheme was recommended by the Farm Sub-committee of the former Rehabilitation Department and approved by the Land Settlement Board. The land is purchased, subdivided, developed, and the houses and other buildings taken over by the Department of Lands and Survey. Each farm is valued on the basis of production, and the tenants, who are chosen by ballot, have the option of purchase or lease. At 31 March 1956, 1,046 houses and 3,462 ancillary farm buildings had been completed. A second scheme, for which applications were considered from 1946 to 1 September 1949, dealt with the construction of portable prefabricated houses to meet the special conditions found in the timber-milling industry. There have been 697 of these housing units completed.

The erection of houses in Kawerau, Murupara, and Kaingaroa, which were established for the operation of the new papermilling industry, have almost been completed so far as present requirements are concerned. To date contracts for the erection of 842 house units have been let. Further building in these towns will depend upon the demand for additional living accommodation.

Flats and Multi-unit Dwellings.—In the more densely populated areas the growing shortage of land suitable for single-unit dwellings, combined with the high expenditure and long delays associated with the development of land for this purpose, has stressed the need for making the fullest possible use of land already provided with water, sewerage, and other services. To this end the Housing Division has reverted to the erection of flats and double and multi-unit dwellings.

During the year 1955-56 contracts were let for 465 flat-units and multi-units, including two multi-storey blocks of 87 units, one at Auckland and one at Wellington, and a further 3 blocks of demonstration-type flats totalling 54 units at Christchurch.

Flats for Sale.—Recognizing the need to cater for that section of the community for whom flats are the most suitable accommodation, the Government has introduced a system under which individual flats can be offered for sale. Under the arrangement, a company is formed in which the share capital is divided into blocks of shares. A person may buy a block of shares, the ownership of which entitles him to permanently occupy a particular flat. To give a lead to private enterprise the Government is building several blocks of flats in which the individual flats are being offered to the public in this manner.

Summary of Progress.—The following table shows the cumulative progress, since the inception of the present housing scheme, at 31 March of each year given.

Units

Cumulative Totals to 31 MarchUnits in Contracts LetHouses Completed and Handed Over to—Net House-unit Sections Acquired
State Advances CorporationOther Government Departments and Miscellaneous
194625,33120,24847845,838
194728,42422,59073148,751
194832,12825,4651,06650,510
194936,35528,8791,84551,426
195040,58632,2672,46454,470
195142,51235,6333,13352,666
195245,04237,7503,79355,224
195349,23339,8744,44558,923
195451,67442,6535,02760,396
195554,94445,5475,49662,003
195657,91647,8056,12670,574

Included in the 2,888 houses completed and handed over during 1954-55 were 2,258 State rental units. Of these, 36 were pensioners' flats which were erected in 3 localities. Under the Rural Housing Scheme for casual farm labourers and employees of dairy companies and rabbit boards, 68 houses were built in 43 localities. Houses for the Armed Services totalled 156, and 474 units were erected for other Government Departments.

The total labour force employed directly by the Housing Division and contractors at 31 March 1956 was 3,964, as compared with 3,922 in 1945, and 3,614 in 1954.

The next table gives particulars of the cumulative expenditure, since its inception, of the Housing Division at 31 March of each year stated.

£

Cumulative Totals, 1938 to 31 MarchLand and ServicesDwelling ConstructionPlant and EquipmentInterest During ConstructionAdministrationTotal
Housing BranchOther Departments
19465,621,00025,840,8001,203,50088,500276,400985,80034,016,000
19476,518,50030,050,5001,864,000105,800353,1001,228,50040,120,400
19487,347,10034,629,3002,632,600148,100402,3001,600,00046,759,400
19498,522,40040,515,8004,000,500168,700472,2001,966,10055,645,700
19509,881,80047,686,9005,643,600190,200582,2002,369,60066,354,300
195111,115,70054,278,4007,210,300193,200687,3002,723,50076,208,400
195212,267,20058,663,2008,245,400194,900770,7003,078,50083,219,900
195313,906,50065,190,9009,371,100200,400863,2003,441,70092,973,800
195415,650,20072,764,80010,147,400209,200975,4003,834,800103,581,800
195517,601,50078,882,30010,893,500222,1001,090,7004,242,600112,932,700
195620,304,10084,989,70011,936,600228,9001,198,4004,674,100123,331,800

In addition to the cumulative net expenditure of £123,331,800 to 31 March 1956, liabilities and commitments at that date amounted to a further £7,860,120.

The total cost of administration (exclusive of interest charges) from the inception of the scheme to 31 March 1955 was £4,674,100, or 3.98 per cent of the net expenditure (excluding administrative costs and interest). This percentage for the year ended 31 March 1956 was 4.12.

In general, the size of dwelling units built by the Housing Division is determined by the size of the families seeking accommodation. The tendency in later years has been to build a higher proportion of larger-sized houses than formerly. The following table provides an analysis according to the number of bedrooms contained in units built during 1954-55 and 1955-56, together with the total to the end of March 1956.

Units Completed
1954-551955-56Total to Date
Number of UnitsPercentage of TotalNumber of UnitsPercentage of TotalNumber of UnitsPercentage of Total
One bedroom and bed-sitting rooms662.0421.43,3496.3
Two bedrooms82524.562621.719,49736.1
Three bedrooms2,28968.12,02670.227,73551.4
Four bedrooms and over1835.41946.73,3506.2
      Totals3,363100.02,888100.053,931100.0

MAORI HOUSING.—Financial assistance towards the purchase of building sites and erection of dwellings thereon, additions and repairs to existing houses, and purchase of houses is available under the Maori Housing Act 1935 to Maoris in need of houses. The lending authority is the Board of Maori Affairs. Section 18 of the Maori Housing Amendment Act 1938 established a fund called the Special Maori Housing Fund, and use of this fund enables the Board of Maori Affairs to meet, on repayment terms related to financial capacity rather than to the amount of money lent, the urgent housing needs of Maoris whose circumstances are such that they cannot be inspected to meet full normal payments.

In addition to providing finance, the Department through its building organization attends to construction where contracts from private building contractors cannot be obtained inside the loan limits plus the applicant's cash resources. In practice this means that a substantial proportion of the houses being erected for Maoris, especially in rural areas where it is not possible to obtain private building contractors, are built by the Department's building organization. The Department has established a comprehensive series of standard plans covering all the different bedroom types to meet the special needs of the Maori people. In determining its building programme the Department tries to ensure that the most needy cases are housed in order of urgency and merit. Where it is evident that the Maori applicant can afford to have the house built by a private contractor he is expected and encouraged to use that avenue when possible.

Maoris qualify for suspensory loans under the Suspensory Loan Scheme, with houses built since 1 December 1949 either by the Department or by private building contractors, on the same terms and conditions as apply to Europeans.

In some of the larger towns and cities special Maori State housing allocation committees are established, and they receive for allocation to suitable eligible Maori applicants a special quota of State rental houses based on the proportion of urgent Maori applications held in relation to Europeans.

The following summary shows the number of new houses bunt, the number of houses purchased, and the number of renovations and additions to houses, etc., from inception of the building organization of the Department to 31 March 1954, 1955, and 1956.

Total to 31 March
195419551956
Houses erected4,2594,6915,218
Houses purchased404421432
Other building work (renovations and additions to houses, cowsheds, and other buildings)3,4013,7023,897
      Totals8,0648,8149,547

In addition to the above, there were 216 houses in course of erection at 31 March 1956.

BUILDING PERMITS: Annual Statistics.—Statistics of building permits issued in cities, boroughs, and town districts during each March year have been collected for 1921-22 and subsequent years— for use, inter alia, as an aid in compiling inter-censal estimates of population. These statistics afford a conspectus of changes in building activity from year to year. There is, however, a factor which may affect to some extent the accuracy of the figures as a guide to short-period fluctuations in building activity. This applies more particularly to buildings other than houses and flats, and is found in the fact that the value shown represents, in the great majority of instances, the total contract price or estimated cost of the whole building. A permit for a large building may involve building activity spread over several years, whereas in the permit statistics the value is shown wholly for the year or month in which the permit is issued. This qualification applies with greater force to the monthly statistics than to the annual statistics.

Building Permits in Urban and Rural Districts Combined.—The following table gives a summary for New Zealand of building permits (including State building operations) for the years ended 31 March 1955 and 1956.

1954-551955-56
New Houses and Flats: NumberNew Houses and Flats: NumberTotal All Buildings: ValueNew Houses and Flats: NumberNew Houses and Flats: NumberTotal, All Buildings: Value
  ££ ££
Urban districts15,44340,241,57374,590,28614,16238,511,68770,156,978
Rural districts5,42012,525,26918,814,9515,34212,974,09520,016,266
      Totals, New Zealand20,86352,766,84293,405,23719,50451,485,78290,173,244

Although statistics of building activity have been collected since 1921-22 for urban districts, the collection of rural statistics was not commenced until 1937-38. In many cases for rural districts estimates only were supplied, while in some instances no data whatever could be obtained. Since 1947-48, however, the Building Controller's authorizations have been used where counties could not supply information. While possibly the inclusion of authorizations may overstate the position slightly, their use has given a complete coverage for counties.

The following table shows a summary of New Zealand building activity since 1937-38.

Year Ended 31 MarchPermits Issued for New Houses and FlatsTotal Value, All New Houses and FlatsTotal Value, All Buildings
PrivateGovernmentTotal££

* Value of new houses and flats in rural areas not available in these years, but figures are included in the total for all buildings.

19384,8772,1677,0445,933,90611,568,968
19395,6014,1109,7117,024,126*14,246,784
19405,2994,3879,6867,162,248*13,025,705
19414,8943,9838,8776,128,307*12,788,172
19424,2822,8907,1725,082,799*10,515,341
19431,0206141,634750,863*3,459,585
19442,7422,1944,9363,640,808*9,909,322
19455,3673,3348,7018,141,564*15,132,005
19467,3592,99710,35613,937,29420,731,634
19479,8083,06812,87618,121,18026,880,159
194810,5383,51014,04821,205,23229,315,141
194911,6064,53016,13625,583,36136,008,697
195012,2625,39517,65728,999,31242,477,415
195114,5513,29817,84932,727,97348,769,604
195214,2972,81417,11136,457,06359,243,259
195312,6073,61016,21737,278,23461,127,994
195414,0253,43217,45741,736,28169,499,865
195517,4203,44320,86352,766,84293,405,237
195616,2343,27019,50451,485,78290,173,244

The accompanying diagram, illustrating building-permit figures relating to New Zealand totals since 1937-38 shows clearly the effect of war conditions and the post-war impetus to building.

Building Permits in Urban Districts.—In the next table, figures are given under two headings, one showing the totals for all urban districts covered in the particular year, and the second showing the totals for only cities, boroughs, and town districts. Data in respect of rural building will be found later in this Section.

Year Ended 31 MarchAll Urban Districts CoveredCities, Boroughs, and Town Districts
Number of New Private Houses and FlatsValue of New Buildings: All ClassesTotal Value, All Buildings (Including Alterations and Additions)Number of New Private Houses and FlatsValue of New Buildings: All ClassesTotal Value, All Buildings (including Alterations and Additions)
  ££ ££
19386,0438,217,40010,291,6135,5687,876,3529,909,225
19398,09310,196,47612,126,4587,4259,555,74711,431,491
19408,0869,790,11811,418,4347,4299,156,67010,714,396
19417,1479,147,88511,060,1016,0998,024,5959,763,200
19425,5036,958,9978,984,1774,9896,436,1138,185,669
19438631,363,0912,661,9477671,269,3302,500,240
19443,6045,528,5838,309,8613,2204,975,3257,587,983
19456,69810,405,11512,756,9996,1709,583,53911,800,649
19467,73614,314,68616,944,3957,02713,230,58115,736,941
19479,51617,626,54321,159,5048,35615,450,53418,773,002
19489,85418,280,33421,426,6258,89016,618,95719,559,814
194911,10221,971,60226,430,4539,58518,835,61423,045,773
195011,53024,219,48730,365,5289,61320,720,77226,513,536
195111,37927,679,69435,030,6479,51023,789,84130,659,763
195212,44336,618,57146,279,3919,18829,421,22438,117,762'
195311,70037,082,03347,179,8708,83630,079,50639,340,882
195412,59642,505,46653,972,8459,59435,025,60745,476,297
195515,44360,726,64274,590,28612,06451,093,05963,870,249
195614,16254,893,28870,156,97810,76745,069,71959,165,963

The figures shown for "cities, boroughs, and town districts" cover the districts existing in the year to which the statistics refer. Since these statistics were inaugurated, however, several new boroughs and town districts have been created and are accordingly included, while a few town districts have been excluded consequent on their abolition as town districts and their merger into counties. The net result has, however, been a gradual accession which has tended to raise slightly the figures for later years.

Statistics relating to new private houses and fiats include units in transit camps run by State or local authorities where these are in effect of a semi-permanent nature. However, "workmen's huts," etc., as in railways or works camps, are not included.

Statistics of houses and fiats treat each flat as one unit. During the year ended 31 March 1956, 123 blocks of flats, totalling 573 individual units, were commenced in urban districts.

The following table shows details for the last ten years of blocks of flats included in the numbers of permits for houses and fiats issued for cities, boroughs, and town districts.

Year Ended 31 MarchCities, Boroughs, and Town DistrictsYear Ended 31 MarchCities, Boroughs, and Town Districts
BlocksNumber of FlatsBlocksNumber of Flats
194780238195264223
194874263195354207
194967236195473189
1950621741955141615
1951511411956118515

These figures cover only buildings erected as blocks of flats. Where conversion of existing buildings into flats has taken place, the value is included in alterations and additions.

The statistics quoted in the preceding paragraphs relate only to the main types of building activity. More detailed statistics are included in the annual statistical Report on Population, Migration, and Buildings, where, inter alia, permit statistics for individual towns, counties, etc., are given.

The total value of urban building operations in the year 1955-56 again remained high but showed a slight fall from the record figure of the previous year, the total being £70,156,978, a decrease of £4,433,308, or 5.9 per cent from 1954-55.

The number of permits issued in 1955-56 for the erection of new houses and flats was 14,062, a decrease of 1,281 compared with 1954-55, while the value of houses and flats decreased by £1,729,886. It is interesting to note that in 1954-55 the average value of a new house or flat was £2,606 as against £2,719 in 1955-56.

New "other buildings," together with alterations and additions, showed a decrease in value of £2,703,422, or 7.9 per cent, as compared with 1954-55.

BUILDING PERMITS ISSUED—URBAN DISTRICTS

Year Ended 31 MarchHouses and FlatsOther New Buildings and Alterations and Additions: ValueTotal Value All Buildings
NumberValue
  £££
195212,44327,762,90818,516,48346,279,391
195311,70028,045,24119,134,62947,179,870
195412,59631,524,23922,448,60653,972,845
195515,44340,241,57334,348,71374,590,286
195614,16238,511,68731,645,29170,156,978

The following table arranges districts with building values of over £300,000 in 1955-56 in descending order.

*Proclaimed a city as from 8 September 1956.

1955-56
 £ £
Auckland City5,521,753Whangarei Borough825,773
Christchurch City4,550,425Hastings Borough*814,467
Wellington City4,266,556Papatoetoe Borough658,620
Waitemata County2,758,027Timaru City651,307
Dunedin City2,531,640Rotorua Borough608,113
Lower Hutt City2,290,719Levin Borough561,313
Hamilton City2,124,009Te Awamutu Borough523,961
Waimairi County1,878,911Whakatane Borough519,038
Paparua County1,681,228New Lynn Borough503,984
Palmerston North City1,654,999Kawerau Borough490,293
Hutt County1,604,394Masterton Borough459,044
Manukau County1,600,520One Tree Hill Borough442,816
Takapuna Borough1,506,590East Coast Bays Borough440,921
Mount Wellington Borough1,387,914Nelson City428,024
Wanganui City1,355,571Papakura418,828
Upper Hutt Borough1,267,784Manurewa Borough381,579
New Plymouth City1,254,341Mount Maunganui Borough334,905
Invercargill City1,201,034Dannevirke Borough334,079
Mount Roskill Borough1,177,518Birkenhead Borough329,826
Napier City996,097Ashburton Borough325,304
Tauranga Borough923,946Green Island Borough312,223
Gisborne City901,032Oamaru Borough311,392
Makara County882,816Onehunga Borough302,344

Building Permits in Rural Districts.—The collection of data from counties was inaugurated in the year ended 31 March 1938. For some years building statistics had been obtained from the counties of Hutt, Makara, Waimairi, and Heathcote, and the road districts of Eden County, and these were included in urban building statistics. As from 1 April 1951 the counties of Waitemata, Manukau, Paparua, Peninsula, and Taieri, previously included in rural districts, were added to the urban building statistics. The great majority of the population in these counties is urban, and they were included in order to obtain more complete statistics of building activity for the urban areas of Auckland, Hutt, Wellington, Christchurch, and Dunedin.

The tabulation for rural districts was therefore confined to the remaining counties and Waiheke Island. Most rural districts were able to supply the information required. Previously this was limited in scope, but in 1955-56 it was returned in full the same as for urban districts. In the few instances where counties were unable to furnish reliable building data the Building Controller's authorizations have been incorporated in the statistics. The use of these figures will result in a slight overstatement if any authorizations are not proceeded with, but it provides complete coverage for rural districts.

Data are available for all Government building in rural districts and have been included in the total for rural building.

Excluding the nine counties and the road district (Panmure Township) which are included in urban districts, the total value of rural building in 1955-56 amounted to £20,016,266, an increase of £1,201,315 as compared with the 1954-55 figures for the same districts. The number of new dwellings, was 5,342, a decrease of 78 from the preceding year.

The following table arranges counties with building values of over £250,000 in 1955-56 in descending order.

1955-56
County£County£
Southland1,247,754Taranaki456,075
Matamata1,144,718Franklin441,084
Hawke's Bay1,043,261Wallace383,701
Rotorua1,007,610Marl borough359,109
Tauranga900,692Whakatane345,511
Waipa763,877Ashburton345,388
Taupo742,376Bay of Islands344,555
Waikato733,286Vincent300,110
Whangarei562,070Piako265,673
Waimea513,095Horowhenua256,505
Rangitikei470,152  

The total value of building for the nine counties and the road district included in the total for urban districts in 1955-56 was £10,991,015, and the number of new houses and flats 3,395. The comparable value for 1954-55 was £10,720,037, and the number of new houses and flats 3,379.

State Building Operations.—The erection of houses by the Housing Division of the Ministry of Works was commenced in March 1937 with 22 units in Wellington City. Details of houses and flats commenced for the last ten years are as follows.

Year Ended 31 MarchUrban DistrictsRural DistrictsYear Ended 31 MarchUrban DistrictsRural Districts
19472,60316619521,914386
19482,65640919532,880435
19493,64147019542,572615
19504,13068619552,871438
19512,02073419562,610438

Most of these are State rental units and departmental houses, but a few are houses and flats built for sale.

Houses are also erected by the Department of Maori Affairs, under its various development schemes, particulars of which will be found earlier in this Section.

In addition, houses and flats are erected by the Ministry of Works, and Lands and Survey, and Justice Departments.

In all, a total of 3,270 Government houses and flats (2,709 in urban and 561 in rural districts) were commenced in 1955-56 compared with 3,443 (2,883 in urban and 560 in rural districts) in 1954-55.

The following table shows urban districts in which twenty or more houses and flats were commenced during 1954-55 and 1955-56 by the various Government Departments concerned.

New Houses and FlatsNew Houses and Flats
1954-551955-561954-551955-56
Cities and Boroughs—
  Whangarei2032  Mosgiel7220
  Takapuna 134  Others366334
  Auckland City451408   
  Mount Roskill6754  Totals2,3602,103
  Hamilton City106122 
  Tauranga3126  Counties and one Road  
  Rotorua 23District—
  Kawerau225   Waitemata3122
  Gisborne City6365  Manukau 25
  Napier City5449  Makara313185
  Hastings Borough6154  Paparua7166
  Dannevirke 23  Waimairi69215
  New Plymouth City5154  Others2825
  Wanganui City4935 
  Palmerston North City8598  Totals512538
  Masterton 22 
  Upper Hutt60107Independent Town Districts—
  Lower Hutt City8775 
  Petone56   Murupara 56
  Wellington City6397  Others1111
  Blenheim24  
  Christchurch City231161  Totals1167
  Timaru City6527 
  Roxburgh 24  Dependent Town Districts 1
  Dunedin City7359    Totals. Urban Districts2,8832,709

Rural districts (counties) in which the number was twenty or more in 1954-55 were: Matamata 21, Rotorua 59, Taupo 29, Whakatane 158, Rangitikei 59; and in 1955-56, Rotorua 58, Taupo 186, Waimarino 22, Rangitikei 32, and Marlborough 33.

In 1954-55, in addition to the 3,443 houses and flats, value £9,545,135, 231 new buildings other than houses and flats, of value £3,674,747, were commenced. Alterations and additions amounted to £1,459,266, and the total value of all State building operations was £14,679,148.

In addition to the 3,270 houses and flats, value £9,451,502, commenced in 1955-56, 229 new buildings, other than houses and flats, of value £3,247,758, were commenced, while alterations and additions amounted to £1,828,855. The total value of building operations by the Government covered in these statistics was therefore £14,528,115 in 1955-56.

Monthly Permit Statistics.—While the annual statistics of building permits issued afford an indication of year-to-year changes in the value and volume of building activity, short-period movements in building activity are of considerable interest, particularly in times of rapid economic change. With the purpose of providing information as to current changes in building activity, monthly statistics of building permits are collected from the larger centres.

These returns cover 61 per cent of the total population, but represent a higher proportion of the total New Zealand building.

BUILDING PERMITS IN LARGER CENTRES

MonthNew BuildingsAlterations to Existing BuildingsTotal
Houses and FlatsTotalNo.ValueNo.Value
No.ValueNo.Value
 £ £ £ £
1955
January7752,081,5558533,698,3651,147737,2942,0004,435,659
February1,0542,829,4101,1984,225,8241,876754,1193,0744,979,943
March1,2203,262,0841,4155,103,1272,3482,317,3283,7637,420,455
April8122,182,5599543,054,5811,876933,5442,8303,988,125
May1,0902,923,1331,2404,044,6972,3041,273,1483,5445,317,845
June9702,602,2961,1154,140,8932,1121,094,0023,2275,234,895
July1,0653,003,9481,2283,853,9831,9481,125,0053,1764,978,988
August1,1413,135,9371,3214,023,3362,250981,6003,5715,004,936
September1,1603,231,3391,3244,748,3702,1671,065,5753,4915,813,945
October9642,694,6631,1144,180,6751,9841,152,1533,0985,332,828
November1,0732,907,3921,2443,884,3832,1861,568,9423,4305,453,325
December8212,158,9261,0023,551,7921,8781,105,7772,8804,657,569
1956
January8012,222,5798903,167,8571,231553,8702,1213,721,727
February1,0162,781,2871,1553,844,5661,895944,9593,0504,789,525
March1,1093,117,1561,2874,192,8163,3021,868,9754,5896,061,791
April9342,541,5461,1053,556,0901,916811,6523,0214,367,742
May1,1453,170,5571,2834,771,0572,362917,2243,6455,688,281
June9842,802,7021,1333,614,8041,9081,085,7903,0414,700,594
July9242,570,2681,0793,265,4041,9311,247,3843,0104,512,788
August1,0432,938,2251,2154,255,3482,077869,2103,2925,124,558
September9662,667,1991,1373,751,0591,918916,9633,0554,668,022
October9982,772,1911,1403,750,2132,051856,0013,1914,606,214
November1,0692,938,4731,2114,151,0221,9121,107,6703,1235,258,692
December7652,098,8718823,126,721.1,6761,173,2242,5584,299,945

HOUSES AND FLATS COMPLETED.— Local authorities which supply building-permit figures also give particulars of new houses and flats which were completed in their districts. In a few instances local authorities were unable to comply with the request, and in these cases estimates derived from authorities issued and other sources have been used. All houses and flats completed by the Government are included.

The results of this collection of statistics for the last five years are given in the following table.

District1951-521952-531953-541954-551955-56
Urban districts11,90011,90012,20013,90014,200
Rural districts4,4004,2004,4004,6005,000
      Totals16,30016,10016,60018,50019,200

While absolute accuracy cannot be claimed for these statistics—particularly as regards rural districts—it is believed that they will give reasonably approximate results and enable a comparison of year-to-year changes to be made.

BUILDING PRODUCTION.— The results of a collection of building statistics taken in 1952 were given on pages 609-613 of the 1954 issue of the Year-Book which showed, largely in tabular form, the operations of persons and establishments regularly engaged in the building trade. A statement summarizing the activities of owner-builders was given separately, details for this class of building construction being excluded from the tables relating to regular builders.

Chapter 26. SECTION 26—ELECTRIC POWER AND GAS: GENERATION AND SUPPLY

26 A—ELECTRIC POWER: GENERATION AND SUPPLY

ELECTRIC power distributed for public use in New Zealand is generated principally by water power, most of the fuel plants in operation being maintained for standby purposes and to meet peak loads. During the year ended 31 March 1956 a total of 4,734,169,000 kWh. was generated by public utilities, of which 4,530,461,000 kWh. (96 per cent) was generated by water power, 195,278,000 kWh. by steam engines, and 8,430,000 kWh. by diesel and petrol engines. By far the major portion of this generation is undertaken by Government-owned plants, which, in the period under review, generated 4,177,484,000 kWh. by the use of water power, 191,413,000 kWh. by use of steam engines, and 6,906,310 kWh. by use of diesel engines. A further 14,165,000 kWh. was purchased by public supply authorities from generating stations operated by industrial establishments and fed into the supply system, making a total of 4,748,334,000 kWh. available for distribution.

Construction work on new generating stations was delayed by shortages of labour and materials both during the Second World War and in the years following it, so that the quantity of power available was for a period of several years not sufficient to satisfy the growing demand. Various restrictions on the use of power were found necessary from 1941 onwards in the North Island, and from 1947 in the South Island. In April 1953 restrictions were lifted in the North Island after the Maraetai power station came into operation. By mid-1955 it was again necessary to impose controls as demand increased and the addition of Whakamaru station in 1956 was not sufficient to permit the lifting of restrictions. In the South Island restrictions continued until July 1956 when the commissioning of Roxburgh station assured an adequate supply for some years in the South Island. Although it has not been sufficient to meet the full demand throughout New Zealand, supply has, nevertheless, been more than trebled since 1939.

It should be noted that the table which follows does not purport to show total generation or consumption, but refers to the quantity of electricity fed into the retail distribution systems of those supply authorities which are connected to the transmission system of the State Hydro-electric Department, representing 98 per cent of the total distribution. As it is measured at the point of supply to these distributing authorities, it excludes transmission losses from the generating station to this point. Index numbers are on base 1939 (= 100).

Year Ended 31 MarchNorth IslandSouth IslandNew Zealand
Total QuantityDaily AverageIndex No.Total QuantityDaily AverageIndex No.Total QuantityDaily AverageIndex No.
 (000)kWh. (000)kWh. (000)kWh. 
19461,407,1803,852165631,4011,7311782,038,5815,585169
19471,458,9864,001172701,7101,9181982,160,6965,919179
19481,507,3334,118177702,9901,9211982,210,3236,040183
19491,664,4554,554195784,2662,1442212,448,7216,698203
19501,750,8754,796206859,2812,3522422,610,1567,147216
19511,765,1274,835207887,7472,4342512,652,8747,270220
19522,016,6085,512236952,7462,6042682,969,3548,116246
19532,085,9965,7192451,005,4722,7622843,091,4688,481257
19542,405,7666,5912831,084,1382,9703063,489,9049,561289
19552,691,0247,3733161,122,3483,0753163,813,37210,448316
19562,882,0757,8743381,222,7413,3413444,104,81611,215340

LEGISLATIVE BACKGROUND.—The earliest legislation concerning the supply of electricity for public use was contained in the Counties Act and Municipal Corporations Act of 1886, which authorized such local bodies to arrange for the supply of electric power in their areas. In 1896 the passing of the Electric Motive Power Act marked the beginning of the State's connection with hydro electricity, by authorizing inquiries into the feasibility of using waterways to supply motive power on the goldfields, but did not actually commit the Government to anything more than inquiries. The Water Power Act 1903 carried matters further and reserved to the Crown, with the exception of certain rights already acquired, the sole right to generate electricity by water power. Finally, in 1910, the Aid to Water Power Works Act authorized the Government to borrow £500,000 for the purpose of hydro-electric development, and the first project was commenced at Lake Coleridge in the following year.

The provisions of these earlier Acts were consolidated in 1928 in the Public Works Act, placing all hydro-electric development under the control of the Public Works Department, and authorizing that Department, in certain circumstances, to delegate the right to use water power for the generation of electricity. Amended regulations concerning delegation of this right were published in 1934, and in 1945 the Electricity Act was passed, creating the State Hydro-electric Department which under this Act took over the control of hydro-electric development previously exercised by the Public Works Department.

The Electric Power Boards Amendment Act 1952 was passed with the object of maintaining existing gas supplies as far as possible in order to reduce added demands for electric power. In 1955 the Electricity and Gas Co-ordination Committee was set up, by an Act of the same name, and, following its report, all but three of the thirty-four gas undertakings then operating were declared essential in the national interest. The report was tabled in Parliament, and as a result there was passed the Electricity and Gas Co-ordination Act 1956, which sets up a permanent board to advise the Minister on matters relating to the gas industry and empowers electrical supply authorities to acquire essential gas undertakings.

EARLY DEVELOPMENT.—In 1887 the first public electric supply plant to operate in New Zealand commenced supplying the gold-mining town of Reefton, in Westland (it is understood that a private plant had been installed by the Phoenix Quartz Mining Co., near Skippers, in 1885). The plant, which was driven by the waters of the Inangahua River, consisted of a 20 kW. dynamo, and supplied power to the residents, presumably for domestic lighting. This was followed in 1888 by the installation of a generating plant in Wellington for street lighting, this consisting at the time of five hundred 20-candlepower lights. This plant was extended in 1892, and supply was then given to private consumers. Stratford, in Taranaki, was next, with a hydro-electric plant set up in 1898, and in 1902 both Christchurch and Dunedin were preparing plans and specifications for hydro-electric schemes. Auckland's first power station, a steam plant, commenced supply in 1908.

DEVELOPMENT OF WATER POWER: North Island.—The Waihi Gold Mining Company, Limited, constructed the first large hydro-electric scheme at Horahora, which supplied power for the operation of a quartz battery at Waikino and the mine at Waihi, supply commencing in 1913. This station was purchased by the Government in 1919, and its capacity of 6,300 kW. was increased to 10,300 kW. in 1925, work being commenced on the Arapuni Station (also on the Waikato River) at about the same time. These two stations were linked when Arapuni came into operation (with one unit) in 1929, but Arapuni was closed down between 1930 and 1932 as a result of damage caused by an earth movement. By 1946 Arapuni had eight units operating, while construction work was in progress at Karapiro (commenced 1940) and Maraetai (commenced 1945). Karapiro station came into operation in 1947-48 with three units, each of 30,000 kW., the Horahora station ceasing generation prior to its site being submerged by the newly-formed Karapiro lake. This artificial lake is 14 miles long and extends up river to Arapuni. Late in 1952 the Maraetai station was brought into operation and by the end of June 1953 three machines were producing 108,000 kW. The fourth machine was commissioned in January 1954 and the fifth machine in May 1954, bringing Maraetai to its full rating of 180,000 kW. Construction on Whakamaru commenced in 1949, the station was commissioned with two machines in May 1956 and completed in December 1956 with four machines rated at 100,000 kW.

Arapuni, Karapiro, Maraetai, and Whakamaru power stations have been constructed on the Waikato River. Three other stations are in the course of construction—namely, Atiamuri (scheduled for completion in 1959) and Waipapa and Ohakuri (scheduled for first operation in 1961). A further site at Aratiatia is under consideration. These stations will make use of the greater part of the fall of the Waikato River from Lake Taupo to Cambridge. This river constitutes the principal power source in the North Island, having, in its course of 200 miles from Lake Taupo, a total fall of 1,170 ft. and a final discharge of over 10,000 cusecs. The rate of flow from Lake Taupo is controlled by works constructed in 1941 to conserve the water previously lost in the heavy spring and summer run-off.

The Mangahao station, of 19,200 kW. capacity, was actually the first station constructed in the North Island by the Government. It is situated in the Tararua Ranges, and commenced supply to the surrounding area at the end of 1924,

After the Mangahao station was completed a commencement was made in 1926 on the development of the Waikaremoana scheme, which consists of three stations, Kaitawa, Tuai, and Piripaua. The first station completed, Tuai, commenced supply in 1929 with a capacity of 32,000 kW., increased in 1939 to 52,000 kW.; Piripaua station (40,000 kW.) was completed in 1943; and Kaitawa station (32,000 kW.) in 1948. The three stations are within a distance of five miles, and the power generated by each is collected and transmitted from Tuai, the centre station.

The Waikato, Mangahao, and Waikaremoana stations are linked and operate as one system. Connections also exist with all the larger non-Government generating stations (steam and hydro) and steam plants maintained by the Government. To transmit power for distribution from the new stations on the Waikato a 220,000 volt system has been added to the existing network of 110,000 and 50,000 volt transmission lines and interconnected substations. From Whakamaru collecting station, electricity is now transmitted to the new major substations at Otahuhu in the north and Bunnythorpe and Haywards in the south.

South Island.—The Lake Coleridge station was commenced in the year following the passing of the Aid to Water Power Works Act 1910 and completed in 1915. This was the first station wholly designed and constructed by the Government. Its initial capacity was 4,500 kW., but by 1930 this was increased to 34,500 kW. The next station, Waitaki, commenced in 1928, came into use in 1935 and with the commissioning of its fifth machine in March 1949 was developed to its originally designed capacity of 75,000 kW. This was later increased by the addition of two further units which came into operation in May and June 1954. With a total capacity of 105,000 kW. Waitaki is the next largest station to Roxburgh operating in the South Island. Further use of the Waitaki River at Black Jack's Point is envisaged, where a station of 340,000 kW. capacity is planned, called the Benmore scheme. Control works were built at Lakes Pukaki and Tekapo, to ensure an adequate water supply to Waitaki station during the winter, and a single unit of 25,200 kW. incorporated in the control works at Lake Tekapo was commissioned in May 1951. Another single unit, also of 25,200 kW., was installed in 1945 at Highbank to make use of the surplus water available in winter from the Rangitata irrigation race.

In 1936 the Government took over the Southland Electric Power Board's system, including the generating station at Lake Monowai, and in 1938 acquired from the Grey Electric Power Board the Arnold station at Kaimata.

Construction of the Cobb River station, with a capacity of 12,000 kW., was commenced by a private company, but the project was taken over and completed by the Government. Supply from this station, which has now been expanded in capacity to 32,000 kW., commenced in 1944.

The Roxburgh station on the Clutha River will ultimately have a capacity of 320,000 kW. First operation of this station was in July 1956, and by December 1956 four machines with a capacity of 160,000 kW. were commissioned. Tenders have been called for the other four machines. Investigation and access roading work was carried on at Lake Rotoroa in connection with the proposed Braeburn scheme of about 60,000 kW. capacity. The Government, however, announced in 1955 that instead of building Braeburn in the meantime it would go ahead with 220 kV. transmission from Islington to provide further supply to the Nelson - Marlborough area.

A grid system similar to that in the North Island was established in 1939, when the Lake Monowai, Arnold, Lake Coleridge, and Waitaki stations were linked. Work is now in progress on a link to Kikiwa in the Nelson Provincial District to connect Nelson and Marlborough with this network, which will then cover the whole South Island. A 220,000 volt line was constructed from Roxburgh to a major substation at Islington to bring the power from Roxburgh.

Government Hydro-electric Stations.—The following table covers all Government hydro-electric plants in operation or for which contracts for machinery have been let, and shows the installed capacity at 31 March 1957 and ultimate installed capacity, together with the static head.

Name of StationInstalled Capacity at 31 March 1957Ultimate Installed CapacityStatic Head (Feet)
Number of UnitskW.kVA.Number of UnitskW.kVA.

* Under construction.

Arapuni8157,800180,0008157,800180,000175
Karapiro390,000100,000390,000100,000100
Maraetai5180,000200,0005180,000200,000200
Whakamaru4100,000111,1004100,000111,100124
Atiamuri*   363,00070,20082
Waipapa*   351,00056,66754
Ohakuri*   384,00093,333115
Mangahao519,20024,000519,20024,000896
Waikaremoana—       
  Kaitawa.232,00038,000232,00038,000443
  Tuai352,00062,200352,00062,200676
  Piripaua240,00044,400240,00044,400370
Cobb River632,00037,222632,00037,2221,876
Arnold23,0603,60023,0603,60042
Lake Coleridge934,50040,640934,50040,640490
Highbank125,20028,000125,20028,000330
Waitaki7105,000116,6667105,000116,66670
Lake Tekapo125,20028,000125,20028,00080-105
Roxburgh4160,000177,7788320,000355,555150
Monowai36,0007,05036,0007,050154

STEAM STATION.—In order to provide additional power for the North Island, a coal-fired steam station is being constructed at Mercer, on the Waikato River. Overseas consultants are engaged in the design and supervision of construction of this station, which will have a capacity of 180,000 kW. The station is being constructed by contractors.

COOK STRAIT SUBMARINE POWER CABLE.—The Government announced in March 1956 that it had been decided to proceed immediately with a detailed investigation into the practicability of linking the power systems of the North and South Islands by a submarine cable across Cook Strait.

GEOTHERMAL STEAM.—Preparations have been made at Wairakei, near Taupo, for the development of geothermal steam for the generation of electricity. At Wairakei some fifty bores which are 4, 6, or 8 inches in diameter have been drilled to depths varying between 570 ft. and 3,200 ft. With closed bores, well-head pressures vary between 430 and 100 lbs. per square inch. High pressure high-temperature valves are required to control the output from the bores. The quantity of steam discharged from the bores varies considerably, and a large quantity of water is ejected with the steam. The steam contains a trace of gas, mostly carbon dioxide; and in the water about three parts in a thousand are dissolved solids. From what is known there is nothing in the chemical content of the steam to prevent its use for power generation. Proposals have been prepared for initial development with the establishment of a generating station of approximately 68,000 kW. capacity, and the Government has engaged the services of a consulting engineer to assist with the proposals. A contract has been let for the supply of steam plant and steam supply pipelines, and ancilliary equipment. Construction of the power station is in progress. Steam production at the end of March 1956 was 623,000 lb. per hour at 200 lb. per square inch from the 8 inch diameter bores and 348,000 lb. per hour at 70 lb. per square inch from the 4 and 6 inch diameter bores, after separation of the water from the bore discharge.

A camp has been built at Waiotapu for investigations in that area and three well-head cellars have been built. Two investigation bores have been drilled to 1,500 ft.

ELECTRIC-POWER BOARDS.—The Counties Act and Municipal Corporations Act passed in 1886 empowered county authorities and municipal corporations to arrange for the supply of electricity in the areas under their control, and until 1918 no provision was made for the constitution of bodies to attend solely to electric supply matters. The authority given to counties was more limited than that given to municipalities, and as their districts were comparatively sparsely settled they were unable, for financial reasons, to provide the same electrical facilities as those enjoyed by the towns. It was estimated by the Public Works Department that in March 1919 about 90 per cent of the people using electricity lived in the cities and larger boroughs, while probably less than 1 per cent lived in country areas. To enable the country districts to be supplied with electricity it was evident that some other form of administration was necessary, and the Electric Power Boards Act 1918 was designed to cope with this problem. The Act permitted two or more districts to combine as an electric-power district, and to establish a Board for the purpose of dealing exclusively with electric supply matters within the new district. Electric Power Boards consist of members representing the constituent districts, and possess rating powers. Previous legislation was consolidated and amended in the Electric Power Boards Act 1925 and subsequent amendments.

While this development made power available to more people outside the towns, the supply to remote areas still presented difficulties because of the high cost of reticulation in comparison with the revenue from power sold. It was later agreed by the supply authorities that a council should be set up with power to make a levy of 1/4 per cent on the gross revenue of all supply authorities and Government owned electrical undertakings and to employ these funds in the form of subsidies to meet the cost of reticulation in remote areas. The Rural Reticulation Council was set up under the Electricity Act 1945, and up to 31 March 1956 had approved subsidies on 4,240 route-miles of line, to supply some 7,130 consumers. At this date 3,063 miles of line were completed and 5,470 consumers connected. The total capital expenditure is estimated to be £2,828,813 and the annual subsidy approved amounts to £132,418.

The average capital cost of reticulation by Power Boards prior to the passing of the Act was £60 per consumer, this reticulation excluding sparsely populated areas in which unreasonably large guarantees would be required. The extension of supply to these sparsely populated areas, as approved by the Rural Electrical Reticulation Council, is now being carried out at an average cost of £357 per consumer.

An Act of 1930 established an Association of Electric Power Boards and other electric supply authorities under the title of the Electric Power Boards and Supply Authorities Association of New Zealand, this title being changed by the Statutes Amendment Act 1951 to the Electrical Supply Authorities Association of New Zealand. The licensed areas under the control of the Boards and other authorities at the census of 17 April 1956 totalled approximately 84,700 square miles, with a population of 2,156,790 people or 99.2 per cent of the total population of New Zealand.

Of the forty-three Electric Power Boards actively functioning at 31 March 1956, fourteen operated generating stations as well as distributing power, and the remaining twenty-nine distributed power purchased in bulk, mainly from Government stations. Only two Boards generated sufficient power to meet fully their entire needs; the other twelve which operated generating stations purchased most of the power distributed by them.

REVIEW OF OPERATIONS: Government Establishments.— The following table gives details of the operations of Government establishments generating and distributing electricity during the years 1953-54, 1954-55, and 1955-56. It includes Southland electric power supply, operated by the State Hydro-electric Department, and Rotorua electric power supply, operated by Tourist and Publicity Department.

Year Ended 31 March
195419551956
EstablishmentsNo.171717
Persons engagedNo.1,8811,9122,019
Salaries and wages paid£1,288,7631,450,8901,552,208
ConsumersNo.24,58125,79126,865
Prime movers—
  Hydrob.h.p.1,008,9001,132,9001,140,900
  Thermob.h.p.81,67081,13981,139
      Totalsb.h.p.1,090,5701,214,0391,222,039
Generators (capacity)—
A.C.kW.773,070859,070859,070
kVA.885,660981,215981,215
Revenue—
  Sales of power—
    Retail£718,000780,391961,520
    Bulk and interchange£7,200,2017,879,0508,360,814
    Other£72,27676,61383,279
      Total revenue£7,990,4778,736,0549,405,613
Expenditure—
  Power purchased (including interchange)£347,053457,004498,039
  Generating costs£982,4201,800,2611,678,033
  Transmission and distribution costs£681,231833,7651,043,355
  Management and general£655,771730,316783,591
  Capital charges (including taxation)£4,230,2234,808,8625,253,185
      Total expenditure£6,896,6988,630,2089,256,203
Capital outlay—
  Total expenditure to date£100,001,254113,110,109126,544,017
  Expenditure during year£14,286,32313,108,85513,433,908
Generation—
  Hydro(000) kWh.3,686,5063,860,3484,177,484
  Steam engines(000) kWh.63,040223,206191,413
  Diesel engines(000) kWh.6,06115,1436,906
      Totals(000) kWh.3,755,6084,098,6974,375,803
Generation per head of mean populationkWh.1,8221,9462,035
Retail sales(000) kWh.148,237156,120203,696

Electric Power Boards.—This table gives similar information concerning generation and distribution by Electric Power Boards.

Year Ended 31 March
195419551956
EstablishmentsNo.434343
Persons engagedNo.2,3252,4692,525
Salaries and wages paid£1,572,2611,857,3611,987,043
ConsumersNo.407,399429,393445,768
Prime movers—
  Hydrob.h.p.25,05025,05024,780
  Thermob.h.p.5,1024,8024,890
      Totalsb.h.p.30,15229,85229,670
Generators (capacity)—
A.C.kW.20,74320,54320,341
kVA.24,81824,56824,380
Revenue—
  Sales of power—
    Retail£9,695,31710,933,24511,820,909
    Bulk and interchange£506,139547,728579,550
    Other (including rates)£285,158322,547347,549
      Total revenue£10,486,61411,803,52012,748,008
Expenditure—
  Power purchased (including interchange)£5,302,1215,852,4776,177,037
  Generating costs£60,07271,10351,733
  Transmission and distribution costs£1,307,4551,529,3811,613,020
  Management and general£935,6541,034,4971,136,486
  Capital charges£1,854,6982,063,5392,368,351
      Total expenditure£9,460,00010,550,99711,346,627
Capital outlay—
  Total expenditure to date£31,965,82735,799,89039,630,778
  Expenditure during year£3,053,8053,834,0633,830,888
Generation—
  Hydro(000) kWh.79,15878,51385,422
  Diesel engines(000) kWh.2,2682,752506
      Totals(000) kWh.81,42581,26585,928
Generation per head of mean populationkWh.403940
Retail sales(000) kWh.2,007,9342,245,6562,441,224

All Establishments.—The next table sets out the same information in respect of all establishments engaged in the generation and distribution of power. These consisted at 31 March 1956 of seventeen Government owned establishments, four limited liability companies, forty-three Electric Power Boards, ten City Councils, twenty Borough Councils, three County Councils, and two Town Boards.

Year Ended 31 March
195419551956
EstablishmentsNo.999999
Persons engagedNo.5,4005,6035,851
Salaries and wages paid£3,652,8074,176,8934,473,012
ConsumersNo.643,777671,314699,597
Prime movers—
  Hydrob.h.p.1,093,5261,236,0261,242,106
  Thermob.h.p.97,75097,07497,292
      Totalsb.h.p.1,191,2761,333,1001,339,398
Generators (capacity)—
  D.C.kW.196196150
A.C.kW.840,411939,921940,011
kVA.967,9801,081,4231,081,597
      TotalskW.840,607940,117940,161
Revenue—
  Sales of power—
    Retail£14,891,47816,645,24318,112,682
    Bulk and interchange£7,727,5638,485,1209,071,574
    Other (including rates)£543,329602,404604,541
      Total revenue£23,162,37025,732,76727,788,797
Expenditure—
  Power purchased (including interchange)£8,003,0368,827,0329,362,099
  Generating costs£1,203,2612,049,949?, 885,807
  Transmission and distribution costs£2,739,0833,124,0883,529,236
  Management and general£1,944,9652,139,9312,350,950
  Capital charges (including taxation)£6,757,8837,652,6308,339,643
      Total expenditure£20,648,22823,793,63025,467,735
Capital outlay—
  Total expenditure to date£143,132,792160,973,581180,950,392
  Expenditure during year£18,425,98017,840,78919,976,811
Generation—
  Hydro(000) kWh.3,940,6014,117,2404,530,461
  Steam engines(000) kWh.68,327230,032195,278
  Diesel or petrol engines(000) kWh.9,10118,7668,430
      Totals(000) kWh.4,018,0304,366,0384,734,169
Generation per head of mean populationkWh.1,9492,0732,202
Retail sales(000) kWh.3,227,8793,541,0503,876,311

Employment.—The foregoing table includes only those employees whose salaries and wages are paid directly out of revenue from the sale of electric power. Further details concerning the number of these employees and the salaries and wages paid to them are given in the following table covering the year ended 31 March 1956.

Persons EngagedSalaries and Wages Paid
MalesFemalesTotalTo MalesTo FemalesTotal
 No.No.No.£££
Secretaries, managers, engineers2331234304,372260304,632
Clerical staff9755621,537758,558235,585994,143
Wage-earning employees4,049314,0803,160,62413,6133,174,237
      Totals5,2575945,8514,223,554249,4584,473,012

Capital Outlay.—The following figures of capital expenditure during 1955-56, and of capital outlay to 31 March 1956, include capital invested in trading departments and in other activities.

£

Class of ExpenditureExpenditure During Year Ended 31 March 1956Total Capital Outlay to 31 March 1956
Land in connection with powerhouse112,7582,468,471
Headworks, pipe lines, etc.6,904,00952,979,476
Powerhouse buildings, cottages, etc.866,8958,618,956
Generating plant1,355,27712,886,435
Special standby plant733,9282,240,897
Main transmission line and main substations2,392,74042,124,650
Distribution system, substations, land, cottages, etc.3,731,46232,944,962
Public (street) lighting118,296849,463
Office and store buildings, workshops, garages, houses, and service buildings527,5054,637,131
Loose tools, meters, instruments, furniture, trucks, motor cars, equipment, and stocks2,266,4828,851,282
Interest during construction1,279,4648,868,509
Loan conversion premiumsCr.59954,471
Miscellaneous (work under construction, cost of raising loans, law costs, etc., and other capital expenditure)Cr.311,4063,425,689
      Total capital outlay19,976,811180,950,392
Capital cash on hand and investments of capital 1,087,078
Capital funds used to finance advances to consumers and trading departments 130,513
      Total capital assets 182,167,983

Additions to the capital value of all electrical systems during 1955-56 totalled £20,309,514, while deductions—i.e., sales and amounts written off—amounted to £332,703. The previous table shows for each item the net expenditure only during the year.

Of the total capital additions of £20,309,514 during 1955-56, £15,460,476 was contributed by the Government, £3,906,269 by Electric Power Boards, £907,846 by other local authorities, and £34,923 by companies. The chief items of Government expenditure were: additions to generation system, £9,978,844, transmission system, £2,696,223, distribution system, £53,296.

Local authority expenditure during 1955-56 included £1,039,072 on transmission systems and £3,678,166 on distribution systems.

Capital Receipts.—The various sources for the capital expenditure shown in the previous table are summarized in the following table.

Total loans raised—££
  Loan liability at 31 March 1956134,875,390 
  Reserve created by loan repayments to date24,019,987 
  158,895,377
Appropriations from revenue 21,373,159
Other capital reserves—i.e., capital profits and accretions 744,839
Temporary advances, capital creditors, etc. 1,154,608
    Total capital receipts £182,167,983

Where assets have been scrapped or written down, and the capital expenditure thereby reduced, corresponding amounts have been written off the appropriate capital reserves—i.e., reserves created by loan repayments and the capital expenditure out of revenue.

General Balance Sheet.—The following table summarizes the general assets and liabilities—i.e., capital items are excluded—as at 31 March 1956, in addition to setting out the reserves and invested funds.

Liabilities£Assets£
Sundry creditors4,844,794Trading department assets, stocks, etc.3,165,505
Advances from capital for trading departments, etc.327,011 
Reserves—Cash, debtors, and other current assets9,742,005
Sinking fund reserve1,577,674 Invested reserve funds— £
Depreciation reserve4,568, 250Sinking funds1,519,740
Renewal fund reserve1,110,990Depreciation funds1,898,965
General reserve1,054,957Renewal funds838,780
Other reserves963,068Other reserve funds855,164
 9,274,939 5,112,649
Credit balance, net revenue accounts3,573,415 
      Total£18,020,159      Total£18,020,159

Power Plant.—Particulars relating to the power plant in use during the year ended 31 March 1956 are set out hereunder.

Source of PowerNo.B.h.p.
Steam engines1476,094
Water turbines1321,242,106
Oil engines3021,198

Power.—The following table sets out the number of units generated and their disposal, the second and third columns comprising power sold in bulk by one authority (in most cases the State Hydroelectric Department) and purchased by another (e.g., an Electric Power Board). The excess of bulk purchases over bulk sales represents the surplus generation of certain freezing works, collieries, etc., which is bought in by supply authorities, usually through the State Hydro-electric Department. This supply, generated by other than public supply authorities, finds no place in either of the first two columns of the table.

Thousand kWh.

Year Ended 31 MarchKilowatt-hours
GeneratedSold in BulkPurchased in BulkNet TotalSold (Retail)Lost in Transmission, etc.*

* Includes power supplied free of charge amounting to 57,090 thousand kWh. in 1955-56.

19523,455,7593,020,8563,027,3993,462,3022,732,840729,462
19533,568,7493,128,5453,138,8223,579,0262,841,457737,569
19544,018,0303,533,9113,545,3724,029,4913,227,879801,611
19554,366,0383,887,6503,904,8354,383,2233,541,050842,173
19564,734,1694,219,2894,233,4544,748,3343,876,311872,023

Analysis of Units Retailed.—The following table gives a classification of power retailed according to the various purposes for which it was sold. In this table "Domestic" includes domestic water-heating units, and "Commercial" both commercial and dairy water-heating units.

Thousand kWh.

Year Ended 31 MarchSales (Kilowatt-hours)
DomesticCommercial and IndustrialStreet LightingTramwaysElectric RailwaysOther PurposesTotal
19521,611,8341,037,22915,29145,26616,4856,7352,732,840
19531,691,6661,065,46816,37944,34816,8336,7632,841,457
19541,946,2631,199,20420,45737,34817,1027,5043,227,879
19552,141,5991,317,45221,79232,96018,4088,8393,541,050
19562,314,6661,476,53123,79528,86521,88510,5693,876,311

The following diagram portrays the growth in the use of electric power since 1931-32, and shows also the principal purposes for which it was employed.

Revenue.—Revenue is derived chiefly from the sale of power, and in 1955-56 this source was responsible for 96.8 per cent of the total. The following table sets out the revenue of all stations for the years 1951-52 to 1955-56. £

Year Ended 31 MarchSale of Power (Retail)Profits, Sale of ApparatusMiscellaneousInterestRatesTotal*

* Excluding revenue from interchange of power.

19529,882,70776,996219,67215,5191,84610,196,740
195310,581,64299,685454,4428,16864711,144,584
195414,891,478114,147421,9927,19010615,434,913
195516,645,243124,417469,9927,995 17,247,647
195618,112,682109,207479,98015,354 18,717,223

Expenditure.—Of the total expenditure of £16,215,025 (excluding cost of interchange of power in bulk) recorded in the year ended 31 March 1956, 66.1 per cent represented overhead costs (comprising management expenses and capital charges), while operating expenses or prime costs stood at 33.9 per cent.

Power may be sold more than once in bulk before reaching the retailing authority, and in these tables the revenue from such interchange of power between authorities is set off against the cost, the net figure for cost of power purchased representing the cost to the industry of purchases from outside sources. In this connection mention may be made of certain contracts existing between the Government and some local authorities, whereby the latter are required to maintain their plants and to operate them, whenever called upon, to supplement the State hydro-electric supply. The units so generated, often by fuel plants, are purchased by the Government and resold, in most cases to the generating authority, for distribution.

The table following gives an analysis of expenditure. £

ItemYear Ended 31 March
1953195419551956

* Does not include the interchange of power between supply authorities.

Operating Expenditure
Cost of power purchased*92,58377,911135,896109,389
Cost of generation393,125406,173448,892827,026
Fuel1,147,350406,3351,165,219953,466
Stores2,3072,5522,3389,305
Repairs319,747117,716185,04657,245
Standby plant97,813270,485251,59738,765
Cost of transmission659,932767,956949,7771,087,905
Cost of distribution1,553,7361,899,4332,105,1102,370,780
Public (street) lighting50,92371,69369,20170,551
      Totals4,317,5164,020,2545,313,0765,524,432
Miscellaneous Expenditure
Cost of management1,407,2941,638,1031,809,5911,987,814
Insurance68,99675,32288,82594,763
Losses from trading5,7589,2799,53611,101
Other expenditure173,214222,261231,979257,272
      Totals1,655,2621,944,9652,139,9312,350,950
Capital Charges (Including Taxation)
Interest2,348,4062,906,9713,320,7643,624,166
Sinking fund828,304893,044956,501413,418
Renewals276,787370,142486,768496,052
Depreciation827,4261,264,4871,463,7161,508,759
Loan repayment655,857726,198825,5391,598,025
Exchange4328  
Taxation 597,013599,342699,223
      Totals4,936,8236,757,8837,652,6308,339,643
      Grand totals10,909,60112,723,10215,105,63716,215,025

The distribution of the expenditure per unit sold retail is given hereunder.

d.

Year Ended 31 March
1953195419551956
Operating expenses0.3640.2990.3600.340
Miscellaneous expenses0.1400.1450.1450.146
Capital charges0.4170.5020.5190.516
      Totals0.9210.9461.0241.002

26 B—GAS: GENERATION AND SUPPLY

HISTORY AND DEVELOPMENT.—The gas industry was amongst the first of industrial enterprises founded in New Zealand, and the earliest statistical records of industry showed that in 1867 there were already three gasworks in operation. These had been supplying gas for several years to the citizens of Auckland, Christchurch, and Dunedin, and in 1869 a further works commenced at Wellington. The first gasworks was erected in the year 1862 at Auckland when the European population of that town was about 25,000, and the total European population of New Zealand was only some 100,000 persons; the Christchurch and Dunedin works commenced supply in 1863; so that with the addition of the Wellington establishment there was in 1869 a gasworks in each of the four main centres. Subsequent growth of the industry was rapid, and the statistics for the year 1916 record that there were in that year 56 establishments engaged in generation and supply of gas to the public. This was the peak year so far as the number of establishments is concerned and growth to this point can be traced in the following table, which shows the approximate date on which each new works commenced operations.

NUMBER OF NEW GASWORKS ESTABLISHED

PeriodNumber
1860-695
1870-7915
1880-893
1890-995
1900-0917
1910-1611
    Total56

Since this date the number of works in use has declined steadily, although the output of gas actually increased for the next thirty years and a much larger number of consumers is supplied now than in the year 1916. Plants in the larger towns and cities have been able to carry on successfully, but the works serving smaller towns have found it increasingly hard to meet competition with electricity and rising costs, so much so that a number have either sold out or closed down, leaving thirty-four works still operating in 1956.

Electricity first came into general use for lighting; it gradually supplanted gas for this purpose from 1919 onwards, and, as new appliances were introduced, continued successfully to compete with gas in heating and cooking. This drift away from gas was arrested by the shortages of electricity caused by the disruption of hydro-electric construction during and after the Second World War, and the consequent restrictions on the installation of new electrical appliances or the use of power in appliances already installed. Unfortunately, conditions created by the war also rendered it impossible for the gas industry to supply enough gas to compensate for this shortage, or even to maintain the normal supply. Labour was short, coal supplies uncertain, and plant was losing efficiency because necessary equipment could not be imported for maintenance and renewal work, so that gas was also rationed at times, or completely shut off. A further set-back was experienced in 1951, when as a result of industrial disturbances coal supplies ceased, or only inferior coal, unsuitable for gas-making, was obtainable for a period of several months.

As a part of the general stabilization policy during the war, the Government instituted a system of subsidies to gasworks to enable them to meet rising costs without unduly increasing the price of gas to the consumer. These subsidies were paid from 1943 onwards to individual works as required, each case being considered separately. Subsidies paid between 1943 and 1950 amounted to £393,965, this total being spread over the years as shown below.

YearValue of Subsidy
 £
1943-447,000
1944-4537,151
1945-4670,517
1946-4777,417
1947-4890,081
1948-4987,114
1949-5024,685

Further amounts were paid indirectly by way of subsidies on gas-coal production and sea freights, but such amounts in relation to this industry cannot be ascertained.

All these subsidies were withdrawn in 1950, the price of gas to consumers being raised to meet the additional cost of gas-making consequent on this withdrawal. Further increases in operating costs, wages, and coal prices in 1951 led to a restoration of subsidies to the gas industry in the form of a subsidy to all gasworks of 2s. per thousand cubic feet of gas sold. Financial assistance in the form of loans was also offered to works for the purpose of carrying out work necessary to restore the efficiency of gas-making and storage plant, and it was considered that at the end of two years the industry would be in a strong enough position for the subsidy to be withdrawn. This has not proved to be the case, and the subsidy is still in force. Increases in the price of gas in the four main centres during the period 1910-11 to 1955-56 are shown in the following table. Included in the average prices recorded below for the years 1954-55 and 1955-56 is a Government subsidy of 2s. per thousand feet of gas sold. Thus the actual average price to consumers would be 2s. lower than that shown.

AVERAGE PRICE OF GAS PER THOUSAND CUBIC FEET

YearAucklandWellingtonChristchurchDunedin
 s.d.s.d.s.d.s.d.
1910-11445455410
1929-30706117063
1939-40726165.511
1954-5513811410691
1955-56131111510691

The decline of the gas industry is viewed with concern by the Government and the authorities which are required to supply the country with electric power, because of the additional demand for electricity which must follow any reduction of the gas supply. In order to conserve the contribution by the gasworks to the national sources of power, the Electricity and Gas Co-ordination Committee was set up by Act of Parliament in 1955 and commenced its work in January 1956, at which time 34 gas undertakings were in operation. In terms of the Act the Committee considered that all but three smaller undertakings were essential in the national interest. On 5 September 1956 the Committee reported to the Minister making recommendations concerning the future operation of essential undertakings and in respect of the acquisition of such undertakings by the local electrical supply authority. Following this report, which was tabled in Parliament, the Electricity and Gas Co-ordination Act 1956 was passed which repealed the 1955 Act and established an Electricity and Gas Co-ordination Board to advise the Minister on the co-ordination of the electricity and gas industries.

Prior to the year 1918-19 statistical information concerning gasworks was collected in conjunction with the population census at five-yearly intervals, but since that date information has been supplied annually. The very early returns naturally did not give much detailed information, but that which is available since 1867 is given in the following historical table which shows certain main items, generally at five-yearly intervals, up to the present time.

STATISTICAL SUMMARY, 1867-1956

YearWorks in OperationPersons Engaged*Value of Land and BuildingsValue of Machinery and PlantGas Produced

* Excludes administrative and distributing staff up to 1915-16. A comparable total for 1920-21 was 966 persons.

 No.No.£(000)£(000)ft.(000,000)
1,8673    
1,8748    
1,87812145   
1880-8117188178314247
1885-8620344208448403
1890-9127249111619427
1895-9627293121646532
1900-0130572154817787
1905-06389542681,1071,275
1910-11487573267532,075
1915-16565983511,0312,776
1920-21501,8565932,6963,401
1925-26482,0535543,7203,870
1930-31461,7786194,4124,230
1935-36461,7796543,7153,885
1940-41441,8736253,4894,480
1945-46441,8305123,4845,241
1950-51441,7115504,2645,446
1954-55371,6116304,5035,174
1955-56351,5836434,8595,222

LEGISLATIVE AUTHORITY.— Most of the gasworks which commenced operations in the early years of New Zealand's industrial history were granted individual charters, which defined their rights and obligations in relation to the general public. In 1882, however, an Act known as the Gas Companies' and Consumers' Liability Act was passed which superseded these charters and defined this legal relationship between all gas companies and their customers, or intending customers. Local bodies were authorized to acquire or set up gasworks and sell gas by various Acts which were consolidated in the Municipal Corporations Act 1933, while the actual conditions governing the sale of gas, first stated in the 1882 Act, were consolidated in 1908 in the Gas Supply Act. This latter Act requires, amongst other things, that a gas undertaking should give, and continue to give, if required, a supply of gas to any premises situated within one hundred yards of a gas main or connected to a gas main, the gas supplier to bear the cost of not more than fifty feet of any service-pipe laid for this purpose outside the property of the consumer; authorizes the supplier to require security and fixes the manner in which security should be given; fixes the liability of an incoming tenant for arrears of gas-rent; and empowers gas companies to erect gasometers and lay and service gas mains.

The Board of Trade (Gas) Regulations 1924 and amendments set standards of calorific value, purity, and pressure of gas which are required to be observed by scheduled gas undertakings.

The Electric Power Boards Act 1952 authorized an Electric Power Board to acquire a gasworks and either operate it in conjunction with the supply of electricity or close it down, according to circumstances, but these provisions were repealed in 1956. The Electricity and Gas Co-ordination Act 1956 requires each supply authority which controls an essential gas undertaking to carry on the undertaking in such manner as to ensure that, as far as practicable, the supply of gas is maintained and that available supplies of electricity are conserved by the encouragement of the use of gas for the generation of heat and power.

The Electricity and Gas Co-ordination Act 1956 makes provision for the appointment of a Board of five members to advise the Minister in Charge of the State Hydro-electric Department in matters affecting the co-ordination of the electricity and gas industries. If i supply authority does not enter into an agreement either to acquire or for the effective control of an essential gas undertaking within its district, the matter is to be reported to the Board, which shall then take necessary steps to arrange an agreement. The Act empowers a supply authority to acquire and carry on a gas undertaking and empowers the Minister of Finance to enter into arrangements enabling the financing of such acquisition. The Board has authority to require a supply authority to submit for approval the rates of charges for electricity and for gas.

RECENT STATISTICS.—Statistics for the years 1953-54 to 1955-56 are set out in the table which follows.

1953-541954-551955-56
WorksNo.403735
Value of land and buildings£615,458629,809642,661
Value of plant (generating and distributing)£4,502,0704,502,9464,859,183
Persons engagedNo.1,6361,611,583
Salaries and wages paid£1,069,3701,129,4111,84,575
Coal used—
QuantityTons278,523266,149267,827
Cost£1,588,9701,582,7901,608,065
Cost of purifying and other materials£55,72365,61182,266
Other expenses (other than salaries and wages and materials)£602,859664,449614,550
      Total expenditure£3,316,9223,442,2613,489,456
      Total revenue£3,386,6163,510,7443,532,746
ConsumersNo.194,758189,376183,900
Gas generatedCub. ft. (000)5,238,0415,174,3615,221,661
Gas sold—
  QuantityCub. ft. (000)4,296,7104,194,5154,152,364
  Value£2,526,2392,664,9562,663,475
Average price of gas per thousand cubic feet 11s. 9d.12s. 8d.12s. 10d.

A further analysis of the 1955-56 statistics is given below, these being dissected by locality of gasworks (North and South Island) and character of organization. It will be seen that 68.9 per cent of the total quantity of gas was generated in the North Island and 31.1 per cent in the South Island, while proportions generated by registered companies and municipal authorities were 69.4 per cent and 30.6 per cent respectively.

Registered CompaniesMunicipal AuthoritiesTotal

*Depreciated values.

†Undepreciated. Depreciation funds amounted to £36,826.

North Island
WorksNo.91120
Value of land and buildings£234,997*160,999395,996
Value of machinery and plant£1,945,575*1,157,1663,102,741
Capital additions during year—
  Land and buildings£10,5484,63915,187
  Machinery and plant£112,107133,666245,773
Persons engaged—
  MalesNo.8002241,024
  FemalesNo.611172
      TotalsNo.8612351,096
Salaries and wages paid—
  To males£595,741176,141771,882
  To females£30,0263,59733,623
      Totals£625,767179,738805,505
Motive power—
  Engines in useNo.169111280
  Total horse-powerH.p.3,1295863,715
Materials used—
  CoalTons132,55942,166174,725
 £815,570286,7101,102,280
  Other materials£30,2794,62934,908
      Totals£845,849291,3391,137,188
Products—
  Gas generatedCub. ft. (million)2,8407583,598
  Gas soldCub. ft. (million)2,2335662,799
 £1,464,903431,4021,896,305
  CokeTons26,84210,17837,020
 £219,14688,655307,801
  TarGal.1,350,833391,2371,742,070
 £133,49035,432168,922
  Other residuals£18,4636,22424,687
      Totals£1,836,002561,7132,397,715
Total expenditure£1,781,439597,2772,378,716
Total revenue£1,857,870571,2822,429,152
ConsumersNo.93,40428,507121,911
South Island
WorksNo.31215
Value of land and buildings£91,323*155,342†246,665
Value of machinery and plant£668,948*1,087,494†1,756,442
Capital additions during year—
  Land and buildings£ 3,7573,757
  Machinery and plant£264,85850,595315,453
Persons engaged—
  MalesNo.199253452
  FemalesNo.221335
      TotalsNo.221266487
Salaries and wages paid—
  To males£158,806206,455365,261
  To females£8,6885,12113,809
      Totals£167,494211,576379,070
Motive power—
  Engines in useNo.72127199
  Total horse-powerH.p.9158521,767
Materials used—
  CoalTons47,37345,72993,102
 £238,605267,180505,785
  Other materials£15,09732,26147,358
      Totals£253,702299,441553,143
Products—
  Gas generatedCub. ft. (million)7858391,624
  Gas soldCub. ft. (million)6676861,353
 £356,416410,754767,170
  CokeTons15,43414,10729,541
 £107,841105,224213,065
  TarGal.346,897449,349796,246
 £41,84739,90481,751
  Other residuals£11,9662,67614,642
      Totals£518,070558,5581,076,628
Total expenditure£511,300599,4401,110,740
Total revenue£530,809572,7851,103,594
ConsumersNo.22,85739,13261,989

Chapter 27. SECTION 27—CONSUMPTION OF COMMODITIES

Table of Contents

STATISTICS of consumption cannot be compiled with absolute accuracy, owing to the impossibility of obtaining exact comparability in component statistics of production, exports, and imports. There are several deficiencies in the statistical data at present available, the most serious being occasioned by the lack of statistics illustrating the distribution among individuals of the annual flow of commodities entering into consumption. Nevertheless, a sufficient degree of comparability can normally be attained to permit of the compilation of statistics of consumption with a reasonable approach to accuracy.

VALUE OF GOODS AVAILABLE FOR USE.—Statistics of the value of production, of exports, and of imports, have been compiled regularly for many years. From these statistics an estimate of the annual value of goods, including both capital and consumption goods, available for use in New Zealand can be made, the value of exports being deducted from that of production, and the value of imports added to the residuum. The result of this computation gives a close approach to the value of all goods available for use in the country. The estimates were recently revised as a result of the revision in the value of production estimates.

Various additional factors have had to be taken into account in preparing estimates covering the war period and quoted in the tables. In some cases rather arbitrary figures have had to be accepted for adjustment purposes. The following descriptive notes under the respective headings will serve to indicate the scope of these estimates.

Production.—The series of value and volume of production figures as quoted in Section 19 of this Year-Book form the basis of the tables which follow. The figures relate to the production year, which, in most cases, approximates closely to the year ended 30 June.

Exports.—The official export figures (f.o.b.) for the years ended 30 June have been adjusted to exclude charges incurred between the stages of production and export.

Goods (normally exported) supplied under the reverse lend-lease procedure, shipments by the Armed Services, and Red Cross and food parcels for war and post-war years have all been treated as additional exports in the tables which follow.

Adjustments have been made for changes in stocks awaiting shipment, so that the export figures quoted in this Section represent the segment of production in any year exported, or ultimately destined for export.

The volume indices have been adjusted to make allowance for the above-mentioned inclusions.

Imports.—Up to 1948-49 the official import figures (Customs values) for the years ended 30 June, excluding ordnance, have been adjusted to take into account additional freight and insurance charges above the nominal 10 per cent allowed in the official figures of imports. Some information available on c.i.f. values of imports enabled assessments to be made for the years 1949-50 to 1951-52, while for the years from 1952-53 onwards the official Customs c.i.f. (cost, including insurance and freight) values have been used.

Further adjustments have been made for the realization on certain war assets.

Unfortunately, detailed statistics of the volume of retail and wholesale merchandise stocks are not available, so that the figures illustrate goods available for use and not necessarily goods actually used during each of the years.

The following table gives the position in regard to value of goods, but care should be exercised in interpreting the table in view of the substantial upward trend in unit values that has taken place over the period covered by the table. Figures are given for the year 1938-39 and for each of the last nine years.

Year Ended 30 JuneProduced in New ZealandImportedAll Goods Available for Use in New Zealand
TotalExportedAvailable for Use in New ZealandTotalPer Head
TotalPer Head
VALUES
 £(m.)£(m.)£(m.)££(m.)£(m.)£
1939133.358.075.346.6591134.483.1
1947228.0101.4126.671.297.9224.5126.2
1948265.7120.7145.079.8154.8299.8165.0
1949290.1120.9169.291.3116.5285.7154.2
1950343.8137.2206.6109.3149.4356.0188.3
1951469.0233.3235.7122.3174.8410.5213.0
1952431.2194.9236.3119.9293.3529.6268.8
1953482.1231.0251.1124.1208.2459.3227.1
1954520.9229.7291.2140.5210.1501.3241.8
1955566.8241.9324.9153.5276.8601.7284.3
VALUE INDEX NUMBERS: BASE 1938.39 (= 100)
1939100100100100100100100
1947171175168153166167152
1948199208193171262223199
1949218208225196197213186
1950258237274235253265227
1951352402313262296305256
1952323336314257496394323
1953362398334266352342273
1954391396387302355373291
1955425.417431329468448342

AGGREGATE VOLUME OF GOODS AVAILABLE FOR USE.—Index numbers of volume of total production, based in most cases on figures of actual physical production, and index numbers of volume of exports and of imports, form the basis on which figures indicating the volume of goods available for New Zealand use are estimated. Attention is drawn to the notes on adjustments, etc., applied under the various headings and explained under the preceding title. Quantitative figures of exports are readily available from the official statistics and, as the great bulk of the export trade is confined to a relatively small number of items, it is a comparatively simple matter to compile an index number of volume for years ending with the month of June. Until recently a similar position did not hold in the case of imports, as they are far more diversified in nature, and import volume index numbers were available only for calendar years. Using quarterly import price index numbers obtained by interpolation from the annual series, quarterly figures of values of imports up to and including 1948 have been deflated to pounds of constant value and then expressed as index numbers and reconciled with the calendar year volume index numbers. These quarterly figures, together with the quarterly volume of imports index numbers compiled regularly since 1949, have been readily aggregated into years ending 30 June. By the use of quantitative figures of production, exports, and imports, reasonably accurate figures of movements in volume may be ascertained, and figures arrived at indicating the volume of goods available for New Zealand use. The aggregates used in the process are based on unit values ruling in 1938-39.

Index numbers of volume covering similar years and for similar headings to those given in the earlier table are given below. These incorporate some revisions of figures published in earlier issues of the Year-Book.

INDEX NUMBERS OF VOLUME OF GOODS: BASE 1938-39 (=100)

Year Ended 30 JuneProduced in New ZealandImportedAll Goods Available for Use in New Zealand
TotalExportedAvailable for Use in New ZealandTotalPer Head
TotalPer Head
1939100100100100100100100
19471181121231118210595
1948123113131117117125111
1949130121137119100121105
1950137118151129122138118
1951141114161135129147123
1952144125159130181169138
1953147134157125125143114
1954152126172135139158123
1955164129190145185188143

It should, perhaps, be emphasized that the table covers capital as well as consumer goods; consequently the headings "available for use in New Zealand" include not only commodities entering into current consumption, but also such items as additions to merchandise stocks, to factory plant and buildings, to farm capital stock, etc.

The low point, both in respect of total and per head volume of goods available for use, was recorded in 1931-32, the decreases from the 1928-29 levels amounting to 27 and 29 per cent respectively. The 1928-29 level of total volume of consumption was regained in 1935-36, while the per head level was regained in 1936-37. A second decline occurred during the war period, but since 1944-45 there has been a recovery, and decreases have been recorded in two years only.

In conjunction with the previous table, it is interesting to consider the proportions of New Zealand produced goods and of imported goods in the total quantum of goods entering into use. Over the period for which the break-up is available, locally produced goods supplied 62 per cent and imported goods 38 per cent of the total.

Comparisons in this respect for individual years are given hereunder.

YearLocally Produced Per CentImported Per CentYearLocally Produced Per CentImported Per Cent
1938-3956441947-485941
1939-4065351948-496337
1940-4171291949-506139
1941-4272281950-516139
1942-4371291951-525347
1943-4464361952-536139
1944-4566341953-546139
1945-4670301954-555743
1946-476634 

While strict accuracy cannot be claimed for these figures—particularly in respect of single years— a definitely higher proportion of New Zealand produced goods in the total was apparent in the depression years and again from 1939-40 onward. The falling-off in the volume of imports during the depression years was considerably greater than that for locally produced goods used in New Zealand. The policy of import restriction introduced in December 1938, and the dictates of a war economy, were responsible for the relatively low proportion of imported goods to total goods available evident from 1939-40 onwards. The particularly high volumes of imports in 1951-52 and 1954-55 resulted in high figures both for the total volume of goods available for use and for imports as a proportion of this total.

CONSUMPTION OF NEW ZEALAND PRODUCE.—While the statistical data discussed in the foregoing pages afford an indication of movements in the aggregate value and volume of consumption, considerable interest attaches to the statistics for individual commodities of importance. Estimates of the consumption of a selection of individual commodities are given in the following paragraphs. No indication of the distribution of consumption of these commodities among individual classes of consumers is available; but with the full employment and wide distribution of wealth that prevails in New Zealand it is beyond question that the per caput rates of consumption of various commodities shown later are truly representative of general living standards.

Figures showing, for some of the more important food products in which an export trade is maintained, the respective proportions of the total production for the three-year period 1953-54 to 1955-56 are as follows.

 Consumed in New Zealand Per CentExported Per Cent
Butter22.078.0
Cheese5.594.5
Beef and veal45.954.1
Mutton48.751.3
Lamb4.195.9
Pig-meat72.727.3

Local (New Zealand) consumption of all meats combined, during this same three-year period amounted to 34 per cent of total meat production.

PER CAPUT QUANTITIES OF PRINCIPAL FOODSTUFFS AVAILABLE FOR CONSUMPTION.—Estimates of annual consumption for the civilian population have been made for the principal items of foodstuffs for recent years and for a pre-war period, mostly the average of 1934-38. Basic statistical data are rather scanty in the case of some items, particularly fresh vegetables, and the estimates may be subject to correction as further information becomes available.

Dairy Produce.—Measured in terms of butterfat content, it is estimated that 25.1 per cent of total dairy production in 1955-56 was used for local human consumption. A further 3.8 per cent was accounted for by stock feeding, wastage, changes in stocks, etc., leaving 71.1 per cent for export in the form of butter, cheese and processed milk. Estimated figures of annual civilian consumption levels for individual items of dairy produce pre-war and for recent periods, are given below.

 Pre-war1953-541954-551955-56
Whole milk (pint)220.0327.3327.3331.0
Cream (pint)6.93.93.94.0
Ice-cream (pint)3.213.915.415.2
Cheese (lb.)4.55.86.05.9
Butter (lb.)41.245.045.144.9
Processed milk (lb.)4.711.312.212.8

In the following comparison of butter and cheese consumption in various countries the figures for countries other than New Zealand have been taken from the 1956 publication Dairy Produce, issued by the Intelligence Branch of the Commonwealth Economic Committee.

BUTTER AND CHEESE CONSUMPTION PER CAPUT lb.

ButterCheese
1938 or 1938-391955 or 1955-561938 or 1938-391955 or 1955-56

* 1954 figures.

United Kingdom24.114.68.99.0
Sweden24.123.612.819.2
Switzerland15.013.9*17.017.6*
Denmark18.318.714.114.6
Netherlands12.36.617.015.4
United States of America16.48.95.87.7
Canada31.920.63.66.6
Republic of Ireland32.244.40.82.1
Australia32.629.64.35.6
New Zealand42.844.94.55.9

In considering New Zealand's relatively high consumption of butter it should be noted that the use of margarine as a spread, common in some countries, is unknown in New Zealand.

Meats.—In estimating the average annual civilian consumption of meats an allowance has been made in the case of each item for killings on farms and for condemnations. The consumption levels for the various items are as follows, the weights in each case being on a bone-in dressed carcase basis.

 Pre-war1954-551955-56
Beef (lb.)112.0100.2105.0
Veal (lb.)7.56.16.0
Mutton (lb.)60.071.071.7
Lamb (lb.)6.59.28.7
Pork, including chopper meat (lb.)9.013.112.8
Ham and bacon (lb.)17.016.819.3
Edible offal (lb.)9.010.39.2

Fresh Vegetables and Fruits.—Estimates under this heading have been made, particularly in the case of vegetables, with considerable difficulty owing to a number of factors, not the least being the fact that domestic garden production must of necessity be taken into account. Where there is no evidence as to changes in consumption habits, the estimates for both pre-war and the later years shown have been treated as on an equality. Consumption levels for individual items are estimated as follows.

 Pre-war19541955
Potatoes (lb.)130.0130.0120.0
Kumaras (lb.)7.57.57.5
Cabbages and leaf greens (lb.)30.3530-3530-35
Carrots (lb.)10.1510-1510-15
Tomatoes (lb.)20.017.017.0
Apples (lb.)44.035.036.0
Pears and quinces (lb.)6.06.89.0
Stone fruits (lb.)10.010.514.0
Citrus fruits (lb.)23.022.021.0
Bananas (lb.)21.024.029.0
Pineapples (lb.)1.00.50.5

Canned Fruit and Vegetables.—Owing to the lack of satisfactory details for earlier years, the pre-war consumption of these items is shown as the average of 1938 and 1939.

 Pre-war19541955
Canned fruit (lb.)11.010.611.3
Canned vegetables (lb.)1.611.57.0

Before the war approximately 70 to 80 per cent of canned fruit requirements were imported and consisted mainly of pineapples, peaches, and apricots. The war considerably upset this trade, but there has been a marked recovery since 1947. There has been some progress in the local canning of fruit, but consumption per head is still only at about pre-war level.

The consumption of canned vegetables, on the other hand, owing in some measure to the striking wartime expansion of the industry, is now at a high level. Before the war there were some imports of peas and beans, but most requirements are now met from local production. The largest development has been in the production of canned green peas, of which about one-third are exported.

Other Foodstuffs.—Estimated annual civilian consumption levels for other items of foodstuffs are given hereunder.

 Pre-war1953-541954-55
Poultry (lb.)3.94.04.0
Fresh fish—edible portion (lb.)11.011.011.0
Shell fish—edible portion (lb.)0.91.11.5
Eggs (dozen)20.020.020.0
Honey (lb.)2.16.05.2
Refined sugar (lb.)104.094.095.0
Dried peas and beans (lb.)1.64.23.0
Flour, wheaten (lb.)185.0179.2177.0
Oatmeal, oaten products (lb.)10.56.15.6
Rice (lb.)5.32.32.5
Tea (lb.)6.87.37.2
Cocoa (lb.)1.81.71.7

Beer, Wine, Spirits, and Tobacco.—As the consumption of these items is particularly susceptible to economic conditions, the depression and immediate post-depression years have been avoided in ascertaining the pre-war consumption. The figures for wine are probably not as accurate as those relating to the other items, for the reason that production figures only are available for locally made wine which naturally (for maturity purposes) is not usually placed on the market until some years after production. Wine production has been steadily increasing during the last decade, the 1955 figure being more than double the immediate pre-war output, and now accounts for over two-thirds of total local consumption.

 Pre-war19541955
Beer (gallons)10.820.721.8
Grape wine (gallons)0.200.370.37
Spirits (proof gallons)0.260.470.49
Tobacco (lb.)3.95.35.2

In interpreting the big increase in beer consumption it should not be overlooked that as a war measure the alcoholic strength of beer was, on 11 May 1942, reduced by about one-quarter. Although this restriction was removed at the beginning of 1949 the additional duty on beer exceeding the reduced strength has had much the same effect.

Comparison With Other Countries.—In considering the question of supplies of foodstuffs in various countries the food balance sheets prepared at the instigation of the Food and Agriculture Organization present information on a comparable basis. The table which follows presents in summarized form statistics appearing in the Statistical Yearbook of the United Nations. The statistics in most cases relate to the year 1954-55, while pre-war figures are quoted in each case in parentheses. The data quoted are expressed in kilograms per person per year, except that for each country a total figure is given showing calories per person per day, and the percentage thereof derived from livestock products (meat, poultry, eggs, fish, milk, butter, cheese, slaughter fats, marine oils). The total calories figure includes also foodstuffs not specifically mentioned in the table.

A table of this nature necessarily includes data of an approximate nature, but is of value as an overall picture of food consumption and availability in the various countries.

CountryCerealsPotatoes, etc.SugarPulsesMeatMilkFats and OilsCalories
Number Per DayPercentage of Live-stock Origin

* Not available.

† Excludes potatoes.

NOTE.—Figures in parentheses refer to pre-war years.

Kilograms Per Person Per Year
Union of South Africa(156)
153
(16)
19
(23)
37
(2)
2
(38)
43
(76)
88
(3)
6
(2,300)
2,600
(18)
21
Canada(93)
76
(*)
60
(43)
44
(4)
2
(62)
81
(221)
243
(19)
20
(2,885) 3,120(39)
43
United States of America(90)
70
(64)
46
(44)
40
(4)
4
(64)
81
(204)
236
(20)
20
(3,150)
3,100
(36)
40
Argentina(106)
99
(66)
86
(27)
39
(2)
4
(107)
104
(163)
155
(9)
13
(2,730)
2,840
(36)
33
India(143)
127
(8)
12
(13)
14
(18)
22
(3)
1
(65)
44
(2)
4
(1,970)
1,850
(8)
6
Japan(162)
151
(63)
58
(14)
11
(7)
6
(4)
3
(4)
11
(2)
3
(2,180)
2,220
(5)
4
Denmark(94)
93
(120)
131
(50)
48
(..)
3
(75)
59
(195)
190
(27)
24
(3,420)
3,310
(35)
36
France(124)
115
(143)
136
(24)
24
(4)
3
(61)
75
(150)
167
(14)
13
(2,870)
2,860
(31)
31
Netherlands(107)
92
(118)
106
(29)
38
(3)
3
(38)
38
(200)
210
(21)
22
(2,840)
2,960
(32)
29
Sweden(96)
78
(122)
103
(44)
42
(2)
2
(49)
52
(302)
295
(18)
22
(3,110)
3,070
(39)
43
United Kingdom(95)
91
(82)
104
(42)
46
(3)
4
(68)
66
(152)
206
(21)
22
(3,110)
3,270
(38)
38
Australia(101)
84
(49)
56
(53)
51
(1)
2
(120)
108
(164)
180
(16)
17
(3,300)
3,160
(40)
42
New Zealand(87)
87
(50)
54
(48)
43
(2)
2
(109)
103
(166)
275
(17)
21
(3,260)
3,375
(48)
49

Chapter 28. SECTION 28—DISTRIBUTION

Table of Contents

INTRODUCTORY.—For many years there was a lack of statistics, other than of employment, relating to the distributive sector of the New Zealand economy. The distributive sector may in this case be defined as that activity relating to the distribution of goods from the source of production or supply to the ultimate consumer, together with the provision of personal and other services, excluding transport.

The possibility and desirability of remedying this deficiency by conducting a Census of Distribution had been considered as far back as 1938, and some attempts, mostly abortive, had been made over the years by the Department of Statistics to collect statistics of retail trading on a purely voluntary basis. The value of statistics of retail trading was exemplified in a sample survey successfully carried out by the Reserve Bank of New Zealand, but limited in coverage to Wellington and the Hutt Valley.

Recommendations and requests from the International Chamber of Commerce, in collaboration with the United Nations Organization, and interest manifested by trade associations and Government Departments within New Zealand, prompted the Government in early 1953 to authorize by regulation the New Zealand Census of Distribution, 1953.

CENSUS OF DISTRIBUTION.—Details of the results of New Zealand's first Census of Distribution (1953) covering retail and wholesale trading and services are given in the 1956 and 1955 issues of the Year-Book. Full details of the results of this census are given in a separate volume entitled Census of Distribution 1953.

QUARTERLY SURVEY OF RETAIL TRADING.—Following the Census of Distribution in 1953 a continuing quarterly sample survey of retail trade was inaugurated, the first inquiry relating to trade during the quarter ended 31 March 1954. These surveys are being made at three-monthly intervals.

The results of the census formed a framework from which a random sample of firms, stratified by broad geographical divisions and size of turnover, was drawn.

The actual sample inquiry is confined to just under 10 per cent of establishments, but these, on the basis of the census, represent approximately 28 per cent of total turnover.

To provide the estimates presented in the following tables the figures have been expanded by the use of suitable techniques to represent the activities of all retail stores with the exception of hotel and motor vehicle and motor accessory trading, which are excluded from the sample inquiry and also from the census figures quoted by way of comparison.

The statistics of retail trading in New Zealand since the census of 1953 are possibly understated to some extent through the operations of additional businesses, particularly in newly settled areas, not at present being specifically covered in the sampling procedure.

Turnover by Store-types.—The estimated turnover figures show that the total value of turnover for all stores decreased slightly, by just over 1 per cent, during the quarterly period ended 30 September 1956 as compared with the previous quarter. As compared with the corresponding quarter the previous year (the three months ended 30 September 1955) turnover increased slightly by less than 1 per cent.

The following table shows total sales or turnover for the years ended 31 March 1953, 1955, and 1956, and the quarters ended 30 September 1955 and 1956. Later figures, for December 1956 and March 1957 quarters, will be found in the Latest Statistical Information Section at the front of this Year-Book.

£(000)

Store TypeNorth IslandSouth IslandTotal, New Zealand
Auckland Urban AreaWellington and Hutt Urban AreasRemainder of North IslandTotal, North IslandChristchurch Urban AreaDunedin Urban AreaRemainder of South IslandTotal, South Island
Year Ended 31 March 1953
Butcher, etc.3,6852,5567,84514,0862,0121,3283,3006,64020,726
Grocer7,4746,12615,87229,4724,6282,3147,51714,45943,931
Other food and drink8,8884,56811,95825,4143,2432,0014,5649,80835,222
Footwear1,3619952,4284,7847114301,0212,1626,946
Other apparel9,5395,63716,77631,9524,4082,4026,96513,77545,727
Furniture and soft furnishings4,3232,2794,92911,5311,5379602,0844,58116,112
Household appliances, radios, etc.1,4411,0902,8655,3966955111,0902,2967,692
Hardware2,3633,5655,54611,4748394471,7963,08214,556
Chemist1,6499172,5655,1316954391,0122,1467,277
General, department, and variety11,9644,52030,08546,5696,8622,91512,37922,15668,725
Other11,3688,57320,68540,6269,9493,0738,16421,18661,812
      Totals64,05540,826121,554226,43535,57916,82049,892102,291328,726
Year Ended 31 March 1955
Butcher, etc.3,8672,8638,71315,4432,3411,5183,9457,80423,247
Grocer8,1686,53617,27831,9825,0362,5758,39416,00547,987
Other food and drink9,2715,39912,83627,5063,5322,3024,68010,51438,020
Footwear1,6221,1312,7565,5098294911,2552,5758,084
Other apparel10,0476,49118,87235,4104,4972,6877,55814,74250,152
Furniture and soft furnishings4,6842,3895,40812,4811,6571,0122,1284,79717,278
Household appliances, radios, etc.1,9771,3783,2796,6348626501,2622,7749,408
Hardware2,9673,8746,26513,1068624931,9923,34716,453
Chemist1,7841,0452,7875,6167644851,1822,4318,047
General, department, and variety13,5275,34333,99752,8678,1263,22813,93525,28978,156
Other11,7958,98323,22344,00111,4103,1859,27623,87167,872
      Totals69,70945,432135,414250,55539,91618,62655,607114,149364,704
Year Ended 31 March 1956
Butcher, etc.4,1302,8488,99215,9702,3701,4404,1697,97923,949
Grocer8,1256,88817,70132,7145,1872,5878,60916,38349,097
Other food and drink9,7144,93313,67028,3173,7362,3275,47811,54139,858
Footwear1,6451,1882,8455,6788574881,2662,6118,289
Other apparel10,6356,97519,10236,7124,5922,8217,73215,14551,857
Furniture and soft furnishings4,5112,4545,50012,4651,7039762,0104,68917,154
Household appliances, radios, etc.1,8401,5313,3246,6959316911,4193,0419,736
Hardware2,9944,0286,43113,4538785342,0593,47116,924
Chemist1,9921,1523,1656,3098635341,3102,7079,016
General, department, and variety12,8225,58634,68053,0888,8213,36514,51326,69979,787
Other11,7809,73823,89145,40911,6123,0479,39424,05369,462
      Totals70,18847,321139,301256,81041,55018,81057,959118,319375,129
Store TypeNorth IslandSouth IslandTotal, New Zealand
Auckland Urban AreaWellington and Hutt Urban AreasRemainder of North IslandTotal, North IslandChristchurch Urban AreaDunedin Urban AreaRemainder of South IslandTotal, South Island
Quarter Ended 30 September 1955
Butcher, etc.1,0537332,3484,1346093741,0662,0496,183
Grocer2,0221,7774,3568,1551,2836342,1524,06912,224
Other food and drink2,4171,1873,2986,9029555831,3542,8929,794
Footwear3842716121,2671951112865921,859
Other apparel2,5971,6614,3838,6411,0856651,8233,57312,214
Furniture and soft furnishings1,1326251,3643,1214352595191,2134,334
Household appliances, radios, etc.4723527581,5822371863177402,322
Hardware7541,0051,6083,3672311255459014,268
Chemist5102867751,5712131423186732,244
General, department, and variety3,0811,3558,49112,9272,2518183,4386,50719,434
Other2,7712,4525,70910,9322,6746972,1815,55216,484
      Totals17,19311,70433,70262,59910,1684,59413,99928,76191,360
Quarter Ended 30 September 1956
Butcher, etc.1,0617512,2414,0535993661,0261,9916,044
Grocer2,1261,8364,5238,4851,3866882,1034,17712,662
Other food and drink2,6171,2783,4357,3309796161,3472,94210,272
Footwear3792896451,3131861152855861,899
Other apparel2,4161,6244,2688,3081,0226431,7513,41611,724
Furniture and soft furnishings1,2676071,3733,2474682615391,2684,515
Household appliances, radios, etc.3633187841,4652541723087342,199
Hardware7039011,5583,1622511555019074,069
Chemist4672907961,5532191313426922,245
General, department, and variety3,1121,2418,28212,6352,0648033,2966,16318,798
Other3,2242,3695,92111,5142,7416962,2625,69917,213
      Totals17,73511,50433,82663,06510,1694,64613,76028,57591,640

Commodity Sales or Turnover of Retail Stores.—The following table covering retail trading throughout the whole of New Zealand shows sales by commodity groups for the years ended 31 March 1953, 1955 and 1956, and for the quarters ended 30 September 1955 and 1956.

£(000)

Commodity GroupYear Ended 31 March—Quarter Ended—
19531955195630 September 195530 September 1956

* Information obtained in the latest quarterly survey indicates that "Clothing, drapery, dress piece-goods" were divided in the September 1956 quarter in the following proportions:

Men's and boys' wear33 per cent
Women's, girls' and infants' wear55 per cent
Household drapery12 per cent
Groceries and small goods (including butter, bacon, etc.)59,70466,51267,28216,64117,467
Butchers' meat, fish, fruit, and vegetables31,00834,42235,2038,9699,110
Other foods (bread, cakes, pastry, etc.)12,06112,83413,8023,4513,539
Milk, ice-cream, confectionery, soft drinks, etc.10,15111,11911,6202,8312,696
Tobacco, cigarettes, and tobacconists sundries8,9909,0798,9722,2392,195
Chemists' goods, toiletries, cosmetics (including dispensing)8,7659,65810,8602,7172,699
Clothing, drapery, dress piece-goods*57,34863,53865,42115,40514,798
Footwear8,86210,26310,5002,3642,413
Furniture, bedding, floor coverings, soft furnishings, and household textiles21,76522,53022,2055,8005,824
Musical instruments, including radios4,6815,0765,2521,2961,421
Household appliances and electrical goods9,50112,65112,7243,0342,798
Hardware—
  Domestic hardware, china, and glassware10,55712,01712,4203,0072,890
  Builders' hardware and materials (excluding timber, bricks, and roofing tiles).13,10515,15915,7063,9663,432
Books, stationery, etc.9,1719,7969,6342,0902,247
Other commodities63,05770,05073,52817,55018,111
      Total sales or turnover328,726364,704375,12991,36091,640

Stocks.—The Census of Distribution, together with the present sample inquiry, provides stock figures as at 31 March of the five years 1952-56, and these are presented in value form in the table which follows. Figures for 30 September 1955 and 1956 are also given.

£(000)

Store TypeActual Value of Stocks
At 31 MarchAt 30 September
1952195319541955195619551956
Butcher, etc.378441363408338320331
Grocer4,5204,5854,7124,7584,8174,7484,945
Other food and drink1,6171,8811,8301,8621,8851,8361,851
Footwear2,3212,4682,6253,0313,0883,1923,199
Other apparel14,64015,11915,04217,62617,80618,33418,497
Furniture and soft furnishings4,3284,3914,3454,5654,8234,7294,916
Household appliances, radios, etc.1,2781,4141,3461,5801,7391,7151,796
Hardware2,7783,7433,4773,6174,0423,8403,822
Chemist1,4031,5411,6301,7261,8381,8351,904
General, department, and variety12,85114,25613,38114,75615,19516,08016,184
Other11,97414,52713,41812,65114,32214,56215,254
      Totals, all retail stores58,08864,36662,16966,58069,89371,19172,699

The figures for March 1956 show a rise of 5 per cent as compared with one year previous and a rise of 20 per cent as compared with March 1952. The increased unit value of retail goods over this period must be considered in comparing figures of values.

The greatest increases in value of stocks over the five yearly period were in the hardware and household appliances etc. store-type groups.

SURVEY OF CONSUMER CREDIT.—A restricted survey covering consumer credit transactions was commenced in October 1955 and the first results were published as a supplement to the April 1956 issue of the Monthly Abstract of Statistics.

The totals recorded in the survey are of course incomplete on account of the limited coverage, and care has been exercised to avoid duplication on account of the transfer or assignment of business to finance corporations. It is known that a considerable amount of consumer credit trading is carried on by small retail trading units, particularly in the household appliances field, but such business is not included in this survey.

Despite the limitations in coverage and the resultant considerable understatement, it is considered that the statistics record accurately, trends, etc., associated with trading over the period reviewed.

Turnover.—The following analysis of turnover is based on the statistics for 49 firms.

£(000)

Quarter EndedCashCash OrderCharge AccountsInstalment or LaybyHire PurchaseTotals
1953—
  31 March3,532202,8061932,0518,602
  30 June4,088203,1181912,4029,819
  30 September3,932143,3812192,58310,129
  31 December5,184233,8162283,10612,356
1954—
  31 March3,982123,2552482,55710,054
  30 June4,798173,6792682,93411,696
  30 September4,985123,6942803,14312,114
  31 December5,586194,3832713,99014,250
1955—
  31 March4,411113,9022472,82211,392
  30 June5,137154,0542553,10212,563
  30 September5,213104,2442732,80412,544
  31 December5,416184,5952683,42013,717
1956—
  31 March4,585104,1692662,67411,704
  30 June4,943134,0462852,86612,153

Statistics of turnover for 1937-38 based on those cases where the information was available indicate that turnover has increased by 333 per cent since that year. (To provide a basis for comparison, gross national expenditure increased by 337 per cent over the same period.) An analysis of turnover in 1937-38 gives the following proportionate distribution under the main headings - cash 38 per cent, charge accounts 29 per cent, and hire purchase 32 per cent. Similar proportions for the calendar year 1955 were 40 per cent, 33 per cent, and 24 per cent respectively.

The high proportion of hire purchase trading in relation to total turnover in the financial year 1937-38 was due to the predominance of motor vehicle sales financed in this way.

Hire-purchase Trading.—Not all firms were able to segregate their hire-purchase trading from their overall debtors' accounts, but a comparison based on the available figures is presented below.

Sales of plant and machinery under hire-purchase arrangements are very small in the aggregate and are confined to relatively few firms. Separate figures are not at present being published covering this type of business.

Regulations covering hire-purchase trading specifying, inter alia, minimum deposits, maximum loan values, and maximum periods of credit, were gazetted on 22 July 1955. These were replaced on 14 October 1955 by new regulations containing certain modifications. An amendment to these regulations, dated 11 April 1956, provided for a much smaller deposit and correspondingly increased loan value in respect to certain specific items of household goods.

The final column in the following table, showing the percentage of the cash payments to the total value of goods sold, is of special interest. For motor vehicles a peak was reached in September 1955, but for household and personal goods the figure for December 1955 was well above any previous percentage.

PeriodTotal Value of GoodsDetails of PurchasePercentage in Cash to Total Value of Goods Sold
Cash PaymentsAmount Financed Under Hire-purchase Agreements

NOTE.—The values quoted in the above table are exclusive of insurance and hiring charges.

 £(000)£(000)£(000) 
Motor Vehicles
Financial Year 1937-382,4659271,53837.6
Quarter ended—
  1953—31 March57121735438.0
  30 June56325131244.6
  30 September62527734844.3
  31 December57224532742.8
  1954—31 March53122330842.0
  30 June65328137243.0
  30 September73433639845.8
  31 December1,03344558843.1
  1955—31 March80736444345.1
  30 June93945148848.0
  30 September76740736053.1
  31 December1,05054850252.2
  1956—31 March76539037551.0
  30 June84443740751.8
Household and Personal Goods
Financial year 1937-388119271911.3
Quarter ended—
  1953—31 March6038052313.3
  30 June7269263412.5
  30 September79410868613.6
  31 December92513479114.5
  1954—31 March72210561714.5
  30 June88812776114.3
  30 September95213082213.7
  31 December1,12915097913.3
  1955—31 March81811570314.1
  30 June98613685013.8
  30 September86713673115.7
  31 December1,10221888419.8
  1956—31 March73814359519.4
  30 June91816775118.2

The number of motor vehicles sold under the hire-purchase arrangements is now relatively much smaller than in 1937-38, as is instanced by the following comparison. The 1937-38 figures represent the business of 7 firms, whereas the remaining figures cover the operations of 12 firms.

PeriodNumber of AgreementsAverage Amount Covered by Hire-purchase Agreement
 £
Financial year 1937-3818,771238
1953—March quarter992564
    June quarter1,085492
    September quarter1,125478
    December quarter1,078508
      Total for year4,280509
1954—March quarter870590
    June quarter1,112558
    September quarter1,394504
    December quarter1,780574
      Total for year5,156554
1955—March quarter1,462515
    June quarter1,918451
    September quarter1,786446
    December quarter1,886510
      Total for year7,052479
1956—March quarter1,461583
    June quarter1,657465

The amounts owing under hire-purchase agreements with firms covered by this survey, amounted to £8,871,000 at 30 June 1956. A comparison covering the operations of 49 firms shows the following amounts owing at the respective dates: the final column shows the percentage of payments overdue.

At End of—Amount Owing Under Hire-purchase AgreementsPercentage of Payments Overdue

* Estimated.

 £(000) 
Financial year 1937-384,560*5.08
1953—31 March6,7183.91
    30 June6,8513.76
    30 September7,0443.86
    31 December7,7964.14
1954—31 March7,7034.29
    30 June7,9294.00
    30 September8,5303.88
    31 December9,9643.80
1955—31 March9,4814.01
    30 June9,5733.71
    30 September9,2183.78
    31 December9,6633.70
1956—31 March9,1753.49
    30 June8,8713.63

Chapter 29. SECTION 29—SOCIAL ACCOUNTS

29 A—NATIONAL INCOME AND EXPENDITURE

INTRODUCTORY.—In recent years the emphasis in social accounting has shifted more and more from the mere ascertainment of the various income, expenditure, and outlay aggregates themselves to an analysis of economic inter-relationships between industrial sectors and their resulting money flows. The development of this statistical work is the subject of a separate subsection (see Section 29B following) which deals with a fully integrated system of sector accounts for the financial year 1952-53.

The estimates of National Income and Expenditure shown on the following pages follow the same pattern, both in method of estimation and presentation, as those published in previous issues of the Year-Book.

The principal of these aggregates is that of "National Income," which, in general terms, measures the total value of all incomes (before deduction of taxation) earned by the residents of New Zealand in producing the current output of goods and services.

Income can be earned in a variety of ways and accrues to individuals according to the manner in which they participate in current production. Salary and wage payments represent the return to labour for services rendered, and include in this concept supplementary income in "kind" such as board and keep provided by the employer. Of considerable importance during the war years, the item pay and allowances of Armed Forces, while analogous to salary and wage payments when considering the source of such income, does not necessarily fit in with this concept when the former civilian occupation of the serviceman is considered. This fact must be taken into account in comparing the distributive shares of the various groups in the national income over the war period. Clothing, food, accommodation, and other income in "kind" supplied to members of the Armed Forces are included under this heading, as are also deferred-pay, mufti-allowances, and war-gratuity payments.

Rental value of owner-occupied houses is a non-monetary item representing the imputed net rental value (before payment of rates, but after deductions for depreciation, mortgage interest, insurance, and repairs and maintenance) of all owner-occupied houses (except farm houses).

Other personal income (excluding company dividends) represents the aggregate income of professional men, farmers, and individual traders, as well as income other than salary and wages of salary and wage earners—e.g., rent, interest, etc. Included under this heading as current income are changes in balances of primary-produce stabilization accounts, and moneys retained under authority of the Wool Proceeds Retention Act 1950.

Company income represents the total income (distributed and undistributed) of companies. This means that dividends distributed to individuals are included under this heading, and to this extent the total of other personal income is understated.

Apart from these incomes which result from current productive activities on the part of individuals receiving them, there are other incomes of a "non-productive" nature in the form of social security benefits, pensions, and interest on public debt. These transfer incomes, as they are called, do not arise from the current production of goods and services and must therefore be excluded from the national income. They do, however, form part of the intermediate concept of private income, which represents the aggregate of earned incomes and unearned transfer incomes received by or accruing to persons. Capital receipts—e.g., from deceased persons' estates, repayment of debt, etc.—are, however, excluded both from private income and national income. It includes as income accruing, but not actually received, undistributed incomes of companies. The deduction of direct taxation gives the concept of private disposable income.

In general, only incomes arising from the production of goods and services destined for the market form part of the national income; it follows, therefore, that the services of housewives, for instance, or the produce of home gardens, are excluded. On the other hand, farm produce consumed on farms is part of the national income.

The addition to private income of Government and local-authority trading profits and lump-sum payments from the United Kingdom Government, and the deduction of transfer incomes as detailed above, gives the concept of net national income at factor cost or, more briefly, national income. This may be defined as the income (before tax) earned by or accruing to the factors of production, in or only temporarily absent from New Zealand, in producing the current output of goods and services of all kinds. The further addition of indirect taxes (net of subsidies) is necessary to bring the net national income to market price valuation.

Gross national product is obtained by adding depreciation allowances to net national income at market prices, and represents the value of current output before deduction of allowances for depreciation and obsolescence, and is equal on the expenditure side to gross national expenditure.

The following table shows the principal of the above aggregates and the manner in which they are derived one from the other for the years 1938-39 to 1955-56.

PRINCIPAL INCOME AGGREGATES      £(million)

Year Ending 31 MarchPrivate IncomePlusLess Transfer IncomesNet National Income at Factor CostPlus Indirect TaxationLess SubsidiesNet National Income at Market PricesPlus Depreciation AllowancesGross National Product
Government Trading IncomeLump Sum Payments from United Kingdom GovernmentSocial Security Benefits and PensionsInterest on Public Debt Paid in New Zealand
 (26)(6)(7)(22)(8)(9)(10)(11)(12)(13)(14)

* Provisional.

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725.

1938-39200.08.6 - 7.5- 7.0194.120.6- 0.6214.117.0231.1
1939-40215.510.43.0-11.2- 7.5210.221.0- 0.5230.718.0248.7
1940-41234.911.93.0-12.3- 7.8229.722.3- 1.6250.418.0268.4
1941-42256.413.43.0-12.7- 8.4251.723.2- 2.7272.218.0290.2
1942-43294.816.63.0-14.0- 9.4291.027.9- 3.3315.619.0334.6
1943-44331.617.83.0-15.5-11.3325.631.8- 3.1354.320.0374.3
1944-45339.414.55.0-17.2-12.9328.834.0- 4.6358.221.0379.2
1945-46360.315.35.0-20.6-13.8346.237.3- 6.6376.922.0398.9
1946-47397.114.75.0-34.4-15.1367.343.0-11.8398.526.0424.5
1947-48446.413.55.0-37.2-15.3412.453.0-13.6451.829.0480.8
1948-49464.212.5 -39.0-15.5422.246.1-11.5456.832.0488.8
1949-50526.314.0 -42.2-16.2481.949.8-14.6517.135.0552.1
1950-51659.116.1 -47.1-17.0611.155.6- 9.4657.339.0696.3
1951-52675.419.2 -53.0-17.4624.271.0-16.1679.143.0722.1
1952-53709.117.9 -53.7-17.1656.267.0-15.0708.246.0754.2
1953-54786.023.3 -57.7-18.3733.367.5-15.5785.352.0837.3
1954-55852.626.8 -61.3-20.2797.980.7-13.4865.258.0923.2
1955-56*902.629.0 -64.4-21.1846.185.4-12.4919.163.0982.1

The estimates are based primarily on details of receipts from the social security charge under the Social Security Act of 1938. This charge is levied at a flat rate on the incomes of all individuals over the age of sixteen years and on all companies trading in New Zealand. The charge is deductible at source in the case of salary and wage payments, but is payable during the year following that in which the income is earned in the case of income other than salaries and wages of individuals and company incomes.

No allowance has been made for possible evasion of taxation in the estimates, nor has it been possible to take into account "negative" income, or losses of previous years allowed as a set-off against current profits for taxation purposes.

The various aggregates are conventionally measured over a given period of time, and this in New Zealand is taken as the year ending 31 March. Values in all cases are in terms of New Zealand currency.

Full details of the methods used and a description of the items shown in the following tables are given in the Report on the Official Estimates of National Income and Sector Accounts for the Year 1955-56, published by the Government Printer, Wellington.

As mentioned previously, the main series (1938-39 to 1955-56) national income estimates are based on receipts of social security taxation which are then adjusted for national income purposes. This series is therefore entirely consistent both in regards to the primary material from which it derives and as to methods and concepts employed. It has now been found possible to carry estimates of gross national product back to 1932-33; these are based on former computations of aggregate private income as published in previous Year-Books, with suitable adjustments to bring them into line with present-day concepts.

 1932-331933-341934-351935-361936-371937-38
Gross national product £(million)113.7127.0135.6155.4192.3211.9

NATIONAL INCOME AND EXPENDITURE.—It is necessary to point out that the estimates of national expenditure should be used with some caution, owing to the fact that not all of the items of expenditure can be estimated directly. On the other hand it is well to realize that, whatever inherent error there may exist in the absolute values of individual expenditure items, year-to-year changes are likely to be much more accurate, simply because the method of estimation is based on the same pattern every year.

The method necessarily adopted does not allow a check to be made on the present national income aggregates, in which no allowances have been made for any possible understatement of incomes shown in the taxation returns on which the estimates are based. Neither do they take into account "negative" incomes nor losses of previous years allowed as a set-off against current profits for taxation purposes. Any understatement of the gross product total arising from these omissions will therefore be reflected in a similar understatement of personal consumption which is shown as a residual item in the break-up of national expenditure (refer table on page 721, item 15). Direct estimates are made of expenditure on Government-provided goods and services, gross capital formation in New Zealand by private and Government sectors, and the balance of overseas payments on current account (sometimes termed net overseas investment or net lending abroad).

After ascertaining personal consumption in the manner outlined above, it becomes possible to make an estimate of private savings. By deducting personal expenditure and direct taxation from aggregate private income, another residual is obtained—viz., private savings (refer table on page 723). Being a residual item it will, of course, contain certain minor errors of estimation inherent in the aggregates from which it is derived. It will be free, however, from the major apparent error which is caused by the understatement of incomes through tax evasion; this is due to the fact that the under-estimate is cancelled out by being included both in the minuend and subtrahend, and the residual is consequently not affected.

The various tables are given and their derivation and composition discussed later, but before presenting this detail it is of interest to examine the relationships existing between some of the more important aggregates. The following table gives the principal of these.

PRINCIPAL AGGREGATES AND THEIR RELATIONSHIPS

1938-391943-441951-521952-531953-541954-551955-56*

* Provisional.

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725.

National income (9)£m.194326624656733798846
Gross national product (14)£m.231374722754837923982
Personal expenditure on consumer goods and services (15)£m.161177476468533607632
  As percentage of gross national product 70476662646664
Gross capital formation in New Zealand (17)£m.4440181184162241257
  As percentage of gross national product 19112524192626
Cost of Government provided goods and services (16)£m.3216195107114114124
  As percentage of gross national product 14431314141213
Private income (26)£m.200332675709786853903
Private savings (29)£m.15795795997897
  As percentage of private income 82481313911

Between I April 1955 and 31 March 1956, national income (at factor cost) has increased from £798 million to £846 million, an increase of 6.0 per cent. Gross national product has increased by £59 million to £982 million, or an increase of 6.4 per cent.

During the last three years the gross national product valued at prices current in each period increased in the following manner as compared with the preceding year:

In 1953-54 by 11.0 per cent.

In 1954-55 by 10.3 per cent.

In 1955-56 by 6.4 per cent.

The various effects of price and volume changes on the overall change in gross national product have not so far been isolated. As there is no evidence from other sources of any significant slowing down in the increase of production, it must be assumed that steadier price levels during the period just ended were the main contributing factor to the lower percentage increase in gross national product in 1955-56.

Expenditure on personal consumption has increased from £607 million to £632 million, or by 4.1 per cent. In view of the fact that gross national product has increased by 6.4 per cent, it is obvious that the share of the gross national product absorbed by personal consumption has fallen. It fell from 65.8 per cent to 64.4 per cent. The cost of Government-provided goods and services, increasing from £114 million to £124 million in 1955-56, has increased from 12.4 per cent to 12.6 per cent of gross national product.

Gross capital formation by private business and Government combined has increased from £241 million (26.1 per cent of gross national product) in 1954-55 to £257 million (26.2 per cent of gross national product) in 1955-56. These figures include year-to-year changes in stocks. If physical capital investment only were taken into account a higher upwards (percentage) movement would have been recorded, because the addition to stocks were smaller in 1955-56 than in the preceding year. New capital investment by Government (central Government and local authorities) took a slightly larger share of gross national product than in 1954-55, increasing from 8.9 per cent to 9.4 per cent. Taking capital formation as a whole, irrespective of whether changes in stocks are taken into account or not, it is apparent that in 1955-56 capital formation has reached a record level both absolutely and relatively. The principal reason for this has been a further increase in private building construction.

The balance of payments has improved somewhat during the last year—from a deficit of £39 million to a smaller deficit of £31 million. Whereas in 1954-55 the total of domestic expenditure exceeded gross national product by 4.2 per cent, excess expenditure was reduced to 3.2 per cent in the latest year. In this connection it should be pointed out that a change has been made in the timing of exports of dairy produce and meat to the United Kingdom (but not other countries). Because customs figures of this category of exports are not sufficiently accurate for national accounting purposes—due to prevailing marketing procedures, unit export values can only be estimated at the time when shipments leave New Zealand—it was considered desirable to use actual realizations of meat and dairy produce in the United Kingdom instead of customs export figures. Beside giving a better valuation basis, this change also involved a shift in timing of exports. For this reason changes in stocks of dairy produce and meat—i.e., changes in stocks afloat and located in the United Kingdom pending sale—had to be brought into the picture. These stocks, the increase of which over the corresponding figure of last year is estimated at £7 million, have been added to the change in all stocks held in New Zealand. The result of this alteration is that on the previous basis of calculations the deficit in the balance of payments on current account would have been reduced by £7 million to £24 million and gross capital formation (including changes in stocks) also by £7 million to £178 million without, however, affecting any of the other items in the gross national expenditure table.

It can be said that the 1955-56 national accounts reveal a broad similarity with those of the year preceding. The consumption and capital investment pattern is very similar in both years and broadly based on a significant balance of payments deficit. The qualifications which have to be introduced are of lesser importance only. The reduction in the share of personal consumption went hand in hand with a reduction in the balance of payments deficit. Collective consumption in the form of Government-provided goods and services remained practically static as a proportion of total expenditure. A substantial increase in new investment in capital assets has been offset by a very slight increase in stocks, so that the two in combination—gross capital formation as shown in the accounts—give only a fractional rise in the percentage of the whole.

Compared with 1954-55 additional resources currently valued at £59 million were made available to the economy either by way of increased production or price increases. Of this amount 42 per cent was used for increased consumption, 17 per cent for increased collective consumption. Capital investment and stocks absorbed a further 27 per cent, and 14 per cent of the total was used to improve our balance of payments.

The counterpart of a proportionate reduction in resources absorbed by personal expenditure on consumer goods and services is a higher savings ratio. The relevant figures can be derived from the table on private outlay: in 1954-55, 9.1 per cent of private income was saved and the corresponding figure for 1955-56 is 10.7 per cent. But last year's figure of the private consumption ratio is still higher and that of the savings ratio still lower than the average for all the years for which information is available. On the other hand, private savings—mainly because of the reduction in the Government surplus—now find a bigger proportion of total capital outlays (approximately 42 per cent as against 38 per cent in the previous year). This is a larger change than the relatively small reduction in the consumption ratio would have indicated.

The increase in the national income at factor cost by £48 million in the aggregate was made up of unequal trends in its constituent parts. Of the £48 million increase just mentioned £39 million is accounted for by salaries and wages alone, which now constitute the largest portion of national income since 1938-39-55.4 per cent. The category of income termed "other personal"—comprising unincorporated business incomes, investment incomes, and, as its major portion, farming income—has shown a rise of only £4 million to £236 million. But farming income itself has registered a decline by £3 million from £132 million in 1954-55. It accounts now for 15.2 per cent of national income as against 16.5 per cent in the previous year, and is at its lowest relative level since 1947-48. The increase in company income (before dividend distribution) by £2 million to £99 million is also less (expressed in percentages) than the increase of national income as a whole, and resulted in a decline from 12.2 to 11.7 per cent of national income.

The four tables on pages 721-725 give the complete details of the various aggregates already mentioned and the manner in which they are derived from the accounts covering the different sectors of the economy.

National Income and Expenditure.—This table gives the composition of the gross national product and the manner in which it has been expended—i.e., gross national expenditure. As mentioned previously, personal expenditure on consumer goods and services is obtained as a residual item in this table, all other aggregates being obtained by direct assessment.

Private Income and Outlay.—This table gives in detail the break-up of private income into the various factor incomes and, on the expenditure side, the manner in which these incomes are spent on personal expenditure on consumer goods and services, paid in direct taxation, or saved. A breakup of other personal income is given for each of the years shown except 1943-44, when this detail was not available. The total of personal consumption derived from the preceding table is carried forward to this table, and this time private savings are obtained as a residual item. The limitations of these two residual items have already been mentioned, and for the reasons given care should be taken in their use.

It is not possible to analyse company income further, and for this reason other personal income excludes company dividends, and private savings necessarily include undistributed company profits.

General Government and Local Authority Revenue Account.—The Government sector is discussed in more detail later in this Section, but this table gives a consolidated statement of General Government and local authority revenue and expenditure, showing as a balance that portion of the revenue which was utilized for capital investment in the case of a surplus, or the call on private savings made necessary by a deficit.

Combined Capital Account—-This account indicates the manner in which finance for capital formation has been made available—(a) from private savings, (b) from revenue surpluses of Government, and (c) from amounts set aside as depreciation allowances from income. Gross capital formation represents the construction in New Zealand or purchase from overseas of durable capital assets by the private, General Government, and local authority sectors, plus net investment in stocks by trading concerns. The net change in overseas assets is the same as the item net overseas investment shown in the table on page 721, and is an estimate of the change in our overseas investment consequent on the movement in the balance of payments on current account.

These four tables, then, give a comprehensive picture in broad terms of the changing pattern of New Zealand's economy over a period of eighteen years which have seen the dislocating effects of a major war. One important point to consider when examining the tables, however, is that all the figures given represent "values" and consequently are inflated to a greater or less extent by price movements over the period. In the absence of any price index of a sufficiently wide coverage to deflate the various aggregates, it is necessary to recognize this fact and wherever possible make some allowance for it.

The following are the four tables mentioned.

NATIONAL INCOME AND EXPENDITURE

£(million)

March YearSalary and Wage paymentsPay and Allowances of Armed ForcesRental Value, Owner-occupied HousesOther Personal IncomeCompany IncomeGovernment and Local Authority Trading IncomeLump Sum Payments from United Kingdom GovernmentLess Public Debt Interest Paid in New ZealandNet National Income at Factor CostPlus Indirect TaxationLess SubsidiesNet National Income at Market PricesPlus Depreciation AllowancesGross National Product
 (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14)

* Provisional.

INCOME
1938-391111655209 -719421-121417231
1943-441405897236183-1132632-335420374
1946-4718681011048155-1536743-1239926425
1947-4821061112953145-1541253-1445229481
1948-492275121344813 -1642246-1245732489
1949-502505131595814 -1648250-1551735552
1950-512786142437116 -1761156-965739696
1951-523288151928019 -1762471-1667943722
1952-5334811162037818 -1765667-1570846754
1953-5438412192239023 -1873368-1678552837
1954-5543012202329727 -2079881-1386558923
1955-56*46912232369929 -2184685-1291963982
March YearPersonal Expenditure on Consumer Goods and ServicesCost of Government-provided Goods and ServicesGross Capital Formation in New Zealand (17)Net Overseas InvestmentGross National Expenditure
PrivateGovernment
 (15)(16)(a)(b)(18)(19)
EXPENDITURE
1938-39161322222-6231
1943-441771612614-4374
1946-4725754582729425
1947-482916310033-6481
1948-493526429395489
1949-503597171474552
1950-51415781235030696
1951-524769512853-30722
1952-5346810711173-5754
1953-54533114837928837
1954-5560711415982-39923
1955-56*63212416592-31982

The graph which follows demonstrates the use to which resources available in New Zealand were put during selected years. The numerical values for this graph are derived from the expenditure part of the preceding account, and total resources available in New Zealand are equivalent to gross national product plus deficit or minus surplus on current balance of payments accounts.

PRIVATE INCOME AND OUTLAY

£(million)

March YearSalary and Wage PaymentsPay and Allowances of Armed ForcesSocial Security Benefits and PensionsRental Value of Owner- occupied Houses(24) Other Personal IncomeCompany Income Before DistributionPrivate Income (Before Tax)
Professional OccupationsCommerce, Trade, or BusinessFarmingChange in Balances of Primary-produce Stabilization AccountsChange in Balances in Wool Retention MoneysInterest, Rent, etc.Other
 (20)(21)(22)(23)(a)(b)(c)(d)(e)(f)(g)(25)(26)

* Provisional.

INCOME
1938-391111865926-2 15220200
1943-44140581697236332
1946-47186834109214712 16548397
1947-482106371111246112 16553446
1948-492275391212256411 16648464
1949-502505421314278411 16758526
1950-51278647141633118173318871659
1951-523288531518381056-3181080675
1952-5334811541619411164-6191078709
1953-5438412581921461301-6201190786
1954-5543012612022511321-6201297853
1955-56*46912642323531293-6211399903

£(million)

March YearPersonal Expenditure on Consumer Goods and ServicesDirect TaxationPrivate Savings (29)Private Outlay
Undistributed Profits of CompaniesOther Private Savings
 (27)(28)(a)(b)(30)

* Provisional.

OUTLAY
1938-391612415200
1943-441777679332
1946-472577862397
1947-482917778446
1948-493529499464
1949-50359961853526
1950-5141511326105659
1951-524761422532675
1952-534681461976709
1953-545331542970786
1954-556071683246853
1955-56*63217497903

The following diagram presents the distribution of private outlay (shown in the second part of the preceding table) in graphical form.

GENERAL GOVERNMENT AND LOCAL AUTHORITIES—REVENUE ACCOUNT

£(million)

March YearTaxation (31)Trading IncomeLess Direct Taxes Paid by Government Trading UndertakingsLump Sum Payments From United Kingdom GovernmentTotal Revenue
DirectIndirect
 (a)(b)(32)(33)(34)(35)

* Provisional.

REVENUE
1938-3924219  54
1943-44773218-13128
1946-47794315-15141
1947-48795314-15149
1948-49954613-1 152
1949-50975014-2 160
1950-511155616-2 185
1951-521447119-2 232
1952-531486718-2 231
1953-541566823-2 245
1954-551718127-3 276
1955-56*1778529-3 288
Cost of Provision of Goods and ServicesTransfer IncomeSubsidiesBalance of Revenue Over ExpenditureTotal Expenditure Plus or Minus Revenue Balances
Social Security Benefits and PensionsInterest on Public Debt Paid in New Zealand
 (36)(37)(38)(39)(40)(41)
EXPENDITURE
1938-3932771754
1943-4416116113-63128
1946-475434151226141
1947-486337151420149
1948-496439161222152
1949-507142161516160
1950-51784717934185
1951-529553171651232
1952-5310754171538231
1953-5411458181639245
1954-5511461201368276
1955-56*12464211266288

COMBINED CAPITAL ACCOUNT

£(million)

March YearPrivate SavingsRevenue Balances: General Government and Local AuthoritiesDepreciation AllowancesTotal Savings
 (42)(43)(44)(45)

* Provisional.

SAVINGS
1938-391571738
1943-4479-632036
1946-47622626114
1947-48782029127
1948-4918223273
1949-50711635122
1950-511313439204
1951-52575143151
1952-53953846179
1953-54993952189
1954-55786858202
1955-56*976663226
Gross Capital Formation in New Zealand (46)Net Change in Overseas Assets (47)Total Investment (48)
Private (a)General Government (b)Local Authorities (c)
INVESTMENTS
1938-3922166- 638
1943-4426104- 436
1946-475821629114
1947-48100267- 6127
1948-4929318573
1949-50713894122
1950-51123411030204
1951-521284112-30151
1952-531115518- 5179
1953-5483572328189
1954-551595923-39202
1955-56*1656725-31226

THE GOVERNMENT SECTOR.—The part played by the Government in redirecting the expenditure of that portion of the national income transferred to it from the private sector by way of taxation and trading profits becomes of increasing importance with the increasing complexity of economic issues. The changes in these directions in New Zealand are quite apparent from an examination of the tables of General Government and local authority revenue and expenditure covering selected years from 1938-39 to 1955-56, which are given further on in this Section.

(a) General Government.—The revenue account of the General Government has been obtained by an analysis of the various accounts within the public account, and represents a consolidated statement of Government revenue and expenditure. In the case of trading department operations which are treated separately, profits only are brought into the main account as a revenue item. Expenditure has been taken net in all cases, sundry departmental receipts, etc., being set off against departmental expenditure. The account covers only revenue items and therefore excludes capital receipts and payments of all kinds, thus accounting in part for the differences between the details given here and those given in the published statement of the public accounts in parliamentary paper B-1 [Pt. I]. In order that the difference between these two sets of figures may be appreciated a reconciliation statement is given on page 729.

Measured in money expenditures, the cost of Government-provided goods and services increased from £23.2 million in 1938-39 to £91.9 million in 1954-55 and £100.7 million in 1955-56. In 1943-44 with war expenditures at their peak the figure stood as high as £154.4 million. Expenditures in money terms do not afford, however, a meaningful series unless related to a wider frame of reference; comparing current Government expenditure with gross national product in each year we find that the relationship is much more constant than would appear at first sight. In 1938-39, for instance, the cost of Government-provided goods and services was 100 per cent of gross national product. It increased to a record level of 41.2 per cent during the war year mentioned earlier, and was 11.6 per cent in 1952-53 (a record for post-war years). The figure for 1955-56 is 10.3 per cent.

As far as transfer incomes are concerned (social security benefits and pensions, interest payments) the situation is entirely different. These have increased from £12.1 million in 1938-39 to £82.1 million in 1955-56, and expressed in percentages of gross national product, from 5.2 per cent to 8.4 per cent. It is interesting to note, however, that transfer payments reached their relative peak in 1946-47 when they were equivalent to 11.1 per cent of the gross national product; since then transfer payments have absorbed a steadily declining portion of the national income.

Subsidies, which can be classed together with transfer payments—they also have a redistributive effect on the national income—exhibited a similar trend during the last eighteen years. Rising from £0.6 million in 1938-39 to £12.4 million in 1954-55 (from 0.3 to 1.3 per cent of gross national product respectively) they, too, reached a relative peak in 1946-47 (2.8 per cent), and have been declining gradually since in terms of gross national product.

These transfer payments and subsidies have undoubtedly been the principal cause of the substantial increase in taxation over the eighteen years, but when their overall purpose is realized that of redistributing the national income among different income groups, the large increases shown are seen in their correct perspective principally as pure "transfer" items.

The balance of revenue over expenditure represents the excess after net expenditure on normal current Government activities has been allowed for. This balance is utilized for the carrying out of necessary capital works and purchase of equipment, or for the repayment of debt. Where there is an excess of expenditure over revenue, as was the case in 1943-44, the deficit must be met by a call on private savings in New Zealand, or a decrease in net overseas investments. It is equally true, of course, that if total Government expenditure in any one year, including expenditure on capital works, exceeds revenue for that year, this overall deficit must be met in a similar way.

GENERAL GOVERNMENT—REVENUE ACCOUNT

£(million)

1938-391943-441951-521952-531953-541954-551955-56*

* Provisional.

† Includes £1m. contribution under Colombo Plan in each year.

1. Taxation
  (a) Direct—REVENUE 
      Income tax9.331.378.178.780.888.390.7
      Social security taxation5.513.443.645.549.756.259.9
      National security tax 19.2     
      Land tax1.11.01.11.31.61.01.2
      Death duties1.84.58.18.88.79.48.5
      Other0.10.2     
      Totals17.869.6131.0134.3140.8154.8160.3
  (b) Indirect—
      Sales tax3.612.721.822021.122.623.4
      Customs and excise duties11.713.937.932.732.234.236.6
      Motor vehicles taxation3.11.74.64.96.216.117.5
      Other1.62.95.25.96.57.07.0
      Totals20.031.269.665.566.079.984.5
2. Totals, all taxation37.8100.8200.6199.8206.8234.8244.8
3. Trading income5.413.216.414.819.422.623.7
4. Less direct taxation paid by trading Departments-0.2-1.0-1.9-2.4-2.0-2.6-3.0
      Totals5.212.214.512.417.420.020.7
5. Lump sum payments from United Kingdom Government 3.0     
6. TOTAL REVENUE43.0116.0215.1212.2224.2254.8265.5
7. Cost of Provision of Goods and ServicesEXPENDITURE 
    (a) General administration2.21.813.413.613.715.015.2
    (b) Interest on General Government debt paid overseas6.86.62.52.52.52.83.3
    (c) Law and order0.80.81.71.41.61.92.0
    (d) Development of primary and secondary industries0.71.35.36.46.66.57.1
    Social services—
    (e) Health0.81.44.34.44.74.95.4
    (f) Education4.24.814.615.717.319.221.2
    (g) Non-monetary social security benefits 4.59.410.410.612.615.5
    (h) Other social services3.30.40.91.01.31.31.4
    (i) Defence and war2.1131.217.725.728.123.625.0
    (j) Rehabilitation 0.41.51.20.81.01.0
    (k) Maintenance of public works and services2.31.25.05.14.33.13.6
      Totals23.2154.476.387.491.591.9100.7
8. Monetary social security benefits and pensions7.415.553.053.757.761.364.4
9. Interest on General Government debt paid in New Zealand4.79.015.214.815.617.217.7
      Totals12.124.568.268.573.378.582.1
10. Transfers to Local Authorities
  (a) Hospital Boards0.91.18.39.610.310.710.7
  (b) Other4.41.62.22.52.95.66.2
      Totals5.32.710.512.1.13.216.316.9
11. Subsidies
  (a) Shipping, transport, and incidental 0.22.00.50.2  
  (b) Coal production and distribution 0.5 0.1   
  (c) Primary production0.4080.60.20.10.1 
  (d) Essential clothing and foodstuffs0.21.612.212.613.711.910.9
  (e) Miscellaneous  0.70.90.20.50.5
  (f) Housing suspensory loans  0.70.71.30.91.0
      Totals0.63.116.115.015.513.412.4
12. TOTAL EXPENDITURE41.2184.7171.1183.0193.5200.1212.1
13. Balance of revenue over expenditure1.8.68.744.029.230.754.753.4
14. TOTAL EXPENDITURE PLUS OR MINUS REVENUE BALANCES43.0116.0215.1212.2224.2254.8265.5

Local Authorities.—The revenue account of local authorities is in all respects similar to that of the General Government and has been obtained by an analysis of the accounts of all local authorities, including Hospital Boards. The limitations in the scope of local-government activities as compared with those of the General Government do not call for a detailed analysis of expenditure items, and therefore current expenditure on the provision of goods and services by local authorities is shown as a single total.

LOCAL AUTHORITIES—REVENUE ACCOUNT

£(million)

1938-391943-441951-521952-531953-541954-551955-56*

* Provisional.

15. Taxation—REVENUE 
  (a) Direct Rates6.26.913013.814.816.216.6
  (b) Indirect. Licence fees0.60.61.41.51.50.80.8
      Totals6.87.514.415.316.317.017.4
16. Trading income3.34.62.83.2404.25.3
17. Grants from General Government5.32.710.512.113.216.316.9
18. TOTAL REVENUE15.414.827.730.633.537.539.6
EXPENDITURE
19. Cost of provision of goods and services8.46.618.819.822.521.723.5
20. Interest on local authority debt paid in New Zealand2.32.32.22.32.73.03.4
21. TOTAL EXPENDITURE10.78.921.022.125.224.726.9
22. Balance of revenue over expenditure4.75.96.78.58.312.812.7
23. TOTAL EXPENDITURE PLUS REVENUE BALANCES15.414.827.730.633.537.539.6

Reconciliation Statement.—The reconciliation given below indicates the fundamental differences between the analysis of the public accounts made for national-income purposes and that published in parliamentary paper B. 1 [Pt. I].

RECONCILIATION BETWEEN BALANCE OF REVENUE OVER EXPENDITURE PER NATIONAL INCOME ACCOUNTS, AND COMBINED SURPLUS CONSOLIDATED FUND, SOCIAL SECURITY FUND, AND NATIONAL ROADS FUND, 1955-56 (PROVISIONAL)

24. Balance of revenue over current expenditure, per National Income Accounts (table on page 728)£(m.) 53.4
Less
25. Amortization of debt charged to Consolidated Fund-12.7
26. Transfers to other accounts-14.2
27. Capital expenditure charged to Consolidated Fund and National Roads Fund-16.3
Plus—
28. Current expenditure from Public Works Account (transfers to local authorities)1.0
29. Current expenditure charged to Defence Fund1.5
Adjustment for Trading Income
30. Profits of Trading Departments-23.7
31. Plus transfers of profits to Consolidated Fund15.8
      Total4.8
32. Consolidated Fund surplus 1955-564.2
33. Social Security Fund surplus 1955-561.2
34. National Roads Fund deficit 1955-56- 0.6
      Total surplus of Consolidated Fund, Social Security Fund, and National Roads Fund as shown in the Public Accounts B. 1 [Pt. I] 1955-564.8

For the reconciliation for earlier years between the balances of revenue over expenditure and the Budget surpluses (or deficits), reference should be made to the previous issues of the Year-Book.

Firstly, it has been necessary to bring into account revenue and expenditure received and incurred by the Government other than that recorded within the limited confines of the Consolidated Fund. In 1955-56 the only other accounts involved were the Social Security Fund, the Public Works Account, and the National Roads Fund.

Secondly, adjustments have been made to Consolidated Fund revenue and expenditure. Capital receipts and payments (purchase or construction of capital assets and amortization of debt) have been eliminated. Actual profits of trading Departments earned in a given year are brought into account and transfers by them to the Consolidated Fund deducted. This ensures that only profits for the year in question are included. Transfers to the Consolidated Fund do not necessarily relate to profits earned in the year in which the transfer is made, nor do they cover total profits of all trading Departments.

The consolidated balance of total Government revenue and expenditure represents the balance, after payment for all current items, utilized for capital expenditure of all kinds both by Government administrative Departments and Government trading undertakings. Because of the strictly "cash" basis on which the public accounts are constructed, however, no allowance has been made for depreciation on the national assets, other than those administered by the trading Departments, before arriving at the revenue balance. To this extent, therefore, it represents an overstatement of the true balance on current account.

THE DISTRIBUTION OF PRIVATE INCOME.—A detailed survey of private income and outlay has already been given (refer table on pages 722-723) for the years 1938-39, 1943-44, and 1946-47 to 1955-56. An analysis of private income, in less comprehensive form, is given below for the years between 1938-39 and 1955-56. Group totals are shown in value form, as percentages of private income, and as index numbers on base 1938-39 (= 100).

PRIVATE INCOME

YearSalary and Wage Payments (1)Pay and Allowances of Armed Forces (2)Social Security Benefits and Pensions (22)Rental Value, Owner Occupied Houses (3)Other Personal Income (Excluding Company Dividends) (4)Company Income (Before Distribution) (5)Private Income (26)

* Provisional.

† Includes changes in Primary Produce Stabilization Accounts and wool retention moneys.

£(million)
1938-39111.10.97.56.454.519.6200.0
1939-40110.62.911.26.759.424.7215.5
1940-41117.715.612.37.458.323.6234.9
1941-42120.625.512.77.762.327.6256.4
1942-43126.746.014.08.167.232.8294.8
1943-44140.458.315.58.672.436.4331.6
1944-45147.048.517.28.979.937.9339.4
1945-46161.839.420.69.487.441.7360.3
1946-47186.38.234.410.1110.247.9397.1
1947-48210.16.437.210.9129.152.7446.4
1948-49226.94.539.011.6133.948.3464.2
1949-50249.94.642.212.7158.958.0526.3
1950-51278.25.947.113.6243.271.1659.1
1951-52327.68.453.014.8191.580 1675.4
1952-53347.510.653.716.4203.477.5709.1
1953-54384.011.957.718.6223.490.4786.0
1954-55429.812.161.320.2232.197.1852.6
1955-56*468.612064.422.6236.198.9902.6
AS PERCENTAGE OF PRIVATE INCOME
1938-3955.50.43.83.227.39.8100.0
1939-4051.31.35.23.127.611.5100.0
1940-4150.16.65.23.224.8101100.0
1941-4247.09.9503.024.3108100.0
1942-4343.015.64.82.722.811.1100.0
1943-4442.317.64.72.621.8110100.0
1944-4543.314.35.12.623.511.2100.0
1945-4644.910.95.72.624.311.6100.0
1946-4746.92.18.72.527.712.1100.0
1947-4847.11.48.32.528.911.8100.0
1948-4948.9108.42.528.810.4100.0
1949-5047.50.98.02.430.211.0100.0
1950-5142.20.97.12.136.910.8100.0
1951-5248.51.27.82.228.411.9100.0
1952-5349.01.57.62.328.710.9100.0
1953-5448.91.57.32.428.411.5100.0
1954-5550.41.47.22.427.211.4100.0
1955-56*51.91.37.12.526.211.0100.0
AS INDEX NUMBERS (1938-39 — 100)
1938-39100 100100100100100
1939-40100 149105109126108
1940-41106 164116107120117
1941-42109 169120114141128
1942-43114 187127123167147
1943-44126 207134133186166
1944-45132 229139147193170
1945-46146 275147160213180
1946-47168 459158202244199
1947-48189 496170237269223
1948-49204 520181246246232
1949-50225 563198292296263
1950-51250 628213446363330
1951-52295 707231351409338
1952-53313 716256373395355
1953-54346 769291410461393
1954-55387 817316426495426
1955-56*422 859353433505451

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725.

The distribution of private income, as indicated by this table, is affected to a considerable extent by the movement in the pay and allowances of the Armed Forces over the period. In 1943-44, the peak war year, 17.6 per cent of total private income was received in this form. Its effects on aggregate salary and wage payments of civilians which decreased as a percentage of private income from 55.5 per cent in 1938-39 to 42.3 per cent in 1943-44, and other personal income which decreased similarly from 27.3 per cent to 21.8 per cent over the same years, can be clearly seen. It is usual to regard pay and allowances of the Armed Forces as similar to salary and wage payments, but if this is done it has the effect of temporarily inflating salary and wage payments at the expense of other personal income, since many Armed Forces personnel are not salary and wage-earners as civilians. This can lead to misleading results where a series of years covering a war and post-war period is being considered, as in the present case, and consequently care must be used in interpreting the figures shown. Ignoring pay and allowances of the Armed Forces and considering only the postwar period, the percentage of salary and wages to private income was exceptionally low in 1950-51 (42.2 per cent) but rose again to 48.5 per cent in 1951-52 and 51.9 per cent in 1955-56. This latter figure was still below the only recorded pre-war percentage (55.5 per cent in 1938-39).

Another item which has played an important part in altering the distribution of private income is social security benefits and pensions which, as a percentage of private income, increased from 3.8 per cent in 1938-39 to a peak of 8.7 per cent in 1946-47. Since then they have shown a steadily decreasing tendency constituting 7.1 per cent of private income in 1955-56. If these payments are considered as supplements to normal earned incomes then they have the effect of reducing the difference between the pre-war and post-war proportions going to salary and wage earners, a major portion of social security benefits and pensions being received by this group. However, such adjustments go past the present analysis of private income, which is a study of the distribution of factor incomes rather than the distribution of incomes received by various income earning groups (i.e., "salary and wage payments" are being considered here not "income of salary and wage earners").

The Effects of Taxation on the Distribution of Private Income.—The redistributive effects of taxation on private income, especially by the use of steeply progressive taxation rates, can be very great. Before examining the effects on New Zealand private income, however, it is of value to compare total taxation with private income and obtain some idea of the extent to which private income is affected by this transfer to the State.

The following table shows total taxation expressed as a percentage of private income for selected years.

PRIVATE INCOME AND TOTAL TAXATION

£(million)

March YearPrivate Income (26)Direct Taxation (28)Indirect Taxation (10)Less Subsidies (11)Total Taxation Less SubsidiesTotal Taxation Less Subsidies as a Percentage of Private Income

* Provisional.

† Excluding direct taxes paid by Government trading departments.

1938-39200.023.820.6- 0.643.821.9
1939-40215.530.521.0-0.551.023.7
1940-41234.945.622.3- 1.666.328.2
1941-42256.451.423.2- 2.771.928.0
1942-43294.866.427.9- 3.391.030.9
1943-44331.675.531.8- 3.1104.231.4
1944-45339.481.234.0- 4.6110.632.6
1945-46360.385.037.3- 6.6115.732.1
1946-47397.178.243.0-11.8109.427.5
1947-48446.477.453.0-13.6116.826.2
1948-49464.293.646.1-11.5128.227.6
1949-50526.395.649.8-14.6130.824.9
1950-51659.1113.055.6- 9.4159.224.2
1951-52675.4142.071.0-16.1196.929.2
1952-53709.1145.767.0-15.0197.727.9
1953-54786.0153.767.5-15.5205.726.2
1954-55852.6168.480.7-13.4235.727.6
1955-56*902.6174.085.4-12.4247.027.4

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725.

Subsidies in this table are treated as negative indirect taxes and deducted from total taxation. Taxation less subsidies as a percentage of private income increased steadily throughout the war years from 21.9 per cent in 1938-39 to a peak of 32.6 per cent in 1944-45. Immediately following the war, with the reduction in the war loading on income tax from 33 1/3 per cent to 15 per cent, and the removal of the National Security charge, the percentage decreased steadily to 26.2 per cent of private income in 1947-48. Fluctuations at this time can largely be attributed to the fact that total taxation in any one year represents actual taxation receipts for that year. In the case of certain taxes (e.g., income tax), receipts for one year are in respect of income earned in the previous year. To this extent income earned is compared with tax paid from that income, and not with tax paid in respect of that income. Thus in 1948-49, although private income showed only a very small increase, taxation receipts increased considerably due to increased revenue from income tax assessed on 1947-48 incomes which were substantially higher than the 1946-47 level: the result was that the percentage of taxation less subsidies to private income rose by 1.4 per cent to 27.6 per cent.

In 1949-50, when private income showed a considerable increase as compared with 1948-49, the increase in taxation (mainly assessed on income in 1948-49, when company income, a major source of taxation, showed a fall) is compared with a proportionately greater increased private income total. The result is a drop in the percentage to the relatively low figure of 24.9 per cent.

In 1950-51 private income rose exceptionally rapidly owing to high wool prices. Taxation on the other hand was based mainly on incomes before the wool prices rose. This, combined with some concessions in tax rates, brought the percentage to its lowest post-war level of 24.2 per cent. On the other hand, in 1951-52 taxation receipts showed a substantial increase on account of the 1950-51 high wool prices, whereas some private incomes were reduced due to the lower prices in 1951-52. As a result the percentage of taxation to private income was higher than for any year since 1945-46. The following years have been affected to a lesser extent by abnormal income fluctuations and taxation as a percentage of private income stands now at 27.4 per cent.

Included in both income and taxation figures in the preceding table are certain transfer payments from the private sector to Government as taxation, and from the Government back to the private sector as social security benefits, pensions, and interest on the public debt. Taxation raised for such purposes is not a true indication of the contribution by the private sector as a whole to the cost of Government services. Therefore, in the next table such transfer items have been eliminated both from taxation and from incomes, the remainders then being compared to give the true picture of the real contribution made to the State from private income.

The accompanying diagram shows private income and its relation to taxation.

The payment of non-monetary social security benefits also has the effect of disturbing the comparison between taxation and private income in the years before and after their introduction. The aggregate of private income before taxation is not affected by the change, the only difference being that former direct payments for services rendered by doctors, etc., are now largely paid by the Government from the proceeds of taxation. For the purposes of the following table, payments of this nature by the Government are deducted from total taxation before obtaining a true comparison with total private income.

PRIVATE INCOME AND TOTAL TAXATION (EXCLUDING TRANSFER INCOMES AND PAYMENTS)

£(million)

March YearPrivate Income Before Tax (26)Less Transfer Payments (8 + 22)Private Income (Excluding Transfer Payments)Total Taxation (Less Subsidies)Less Transfer Payments'Non- monetary Social Security BenefitsTotal Taxation (Excluding Transfer Payments and Subsidies)Total Taxation as a Percentage of Private Income (Excluding Transfer Payments)

* Provisional.

† Excluding mental hospital benefits.

1938-39200.0-14.5185.543.8-14.5 29.315.8
1939-40215.5-18.7196.851.0-18.7- 0.931.416.0
1940-41234.9-20.1214.866.3-20.1- 1.644.620.8
1941-42256.4-21.1735.371.9-21.1- 2.348.520.6
1942-43294.8-23.4271.491.0-23.4- 3.564.123.6
1943-44331.6-26.8304.8104.2-26.8- 4.572.923.9
1944-45339.4-30.1309.3110.6-30.1- 5075.524.4
1945-46360.3-34.4325.9115.7-34.4- 5.675.723.2
1946-47397.1-49.5347.6109.4-49.5- 6.253.715.4
1947-48446.4-52.5393.9116.8-52.5- 7057.314.5
1948-49464.2-54.5409.7128.2-54.5- 7.965.816.1
1949-50526.3-58.4467.9130.8-58.4- 8.563.913.7
1950-51659.1-64.1595.0159.2-64.1- 8.786.414.5
1951-52675.4-70.4605.0196.9-70.4-9.4117.119.4
1952-53709.1-70.8638.3197.7-70.8-10.4116.518.3
1953-54786.0-76.0710.0205.7-76.0-10.6119.116.8
1954-55852.6-81.5771.1235.7-81.5-12.6141.618.4
1955-56*902.6-85.5817.1247.0-85.5-15.5146.017.9

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725.

The incidence of direct taxation on the various "factor income" groups comprising private income is shown in the next table. The balance in each case represents disposable income and the deduction of direct taxation from private income gives the concept of private disposable income.

PRIVATE INCOME AND INCIDENCE OF DIRECT TAXATION £(million)

March YearSalary and Wage PaymentsPay and Allowances of Armed ForcesSocial Security Benefits and PensionsOther Personal Income (Including Rental Value of Owner-occupied Houses)Company Income (Before Distribution)Total
 (1)(2)(22)(3 +4)(5) 

* Provisional.

† Excludes direct taxes on Government trading profits.

PRIVATE INCOME
1938-39111.10.97.560.919.6200.0
1939-40110.62.911.266.124.7215.5
1940-41117.715.612.365.723.6234.9
1941-42120.625.512.770.027.6256.4
1942-43126.746.014.075.332.8294.8
1943-44140.458.315.581.036.4331.6
1944-45147.048.517.288.837.9339.4
1945-46161.839.420.696.841.7360.3
1946-47186.38.234.4120.347.9397.1
1947-48210.16.437.2140.052.7446.4
1948-49226.94.539.0145.548.3464.2
1949-50249.94.642.2171.658.0526.3
1950-51278.25.947.1256.871.1659.1
1951-52327.68.453.0206.380.1675.4
1952-53347.510.653.7219.877.5709.1
1953-54384.011.957.7242.090.4786.0
1954-55429.812.161.3252.397.1852.6
1955-56*468.612.064.4258.798.9902.6
Less DIRECT TAXES
1938-394.9  11.87.123.8
1939-408.0  13.39.230.5
1940-4112.50.8 18.813.545.6
1941-4215.61.1 20.714 051.4
1942-4319.53.2 24.119.666.4
1943-4423.43.5 25.922.775.5
1944-4524.33.8 26.426.781.2
1945-4626.63.3 29.625.585.0
1946-4723.81.2 29.224.078.2
1947-4823.60.4 31.022.477.4
1948-4924.70.5 37.930.593.6
1949-5026.50.5 39.529.195.6
1950-5132.50.5 47.932.1113.0
1951-5236.00.6 65 939.5142.0
1952-5343.90.8 60.240.8145.7
1953-5446.40.8 65.640.9153.7
1954-5549.91.0 71.446.1168.4
1955-56*51.91.0 71.749.4174.0
DISPOSABLE INCOME
1938-39106.20.97.549.112.5176.2
1939-40102.62.911.252.815.5185.0
1940-41105.214.812.346.910.1189.3
1941-42105.024.412.749.313.6205.0
1942-43107.242.814.051.213.2228.4
1943-44117.054.815.555.113.7256.1
1944-45122.744.717.262.411.2258.2
1945-46135.236.120.667.216.2275.3
1946-47162.57.034.491.123.9318.9
1947-48186.56.037.2109.030.3369.0
1948-49202.24.039.0107.617.8370.6
1949-50223.44.142.2132.128.9430.7
1950-51245.75.447.1208.939.0546.1
1951-52291.67.853.0140.440.6533.4
1952-53303.69.853.7159.636.7563.4
1953-54337.611.157.7176.449.5632.3
1954-55379.911.161.3180.951.0684.2
1955-56*416.711.064.4187.049.5728.6

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 721-725

The effect of direct taxation in altering the distribution of the factor incomes is shown quite clearly by a comparison of the table given next with the table on page 730. Both show similar detail, the table presented earlier giving private income before tax and the table following after tax, expressed in value form, as percentages of total private disposable income, and as index numbers on base 1938-39 (=100). For the purposes of the latter table it is necessary to group rental value of owner-occupied houses with other personal income.

PRIVATE DISPOSABLE INCOME

March YearSalary and Wage PaymentsPay and Allowances of Armed ForcesSocial Security Benefits and PensionsOther Personal Income (Including Rental Value of Owner-occupied Houses)Company Income (Before Distribution)Private Disposable Income

*Provisional.

£(million)
1938-39106.20.97.549.112.5176.2
1939-40102.62.911.252.815.5185.0
1940-41105.214.812.346.910.1189.3
1941-42105.024.412.749.313.6205.0
1942-43107.242.814.051.213.2228.4
1943-44117.054.815.555.113.7256.1
1944-45122.744.717.262.411.2258.2
1945-46135.236.120.667.216.2275.3
1946-47162.57.034.491.123.9318.9
1947-48186.56.037.2109.030.3369.0
1948-49202.24.039.0107.617.8370.6
1949-50223.44.142.2132.128.9430.7
1950-51245.75.447.1208.939.0546.1
1951-52291.67.853.0140.440.6533.4
1952-53303.69.853.7159.636.7563.4
1953-54337.611.157.7176.449.5632.3
1954-55379.911.161.3180.951.0684.2
1955-56*416.711.064.4187.049.5728.6
AS PERCENTAGE OF PRIVATE DISPOSABLE INCOME
1938-3960.30.54.227.97.1100.0
1939-4055.51.66.128.58.4100.0
1940-4155.67.86.524.85.3100.0
1941-4251.211.96.224.06.6100.0
1942-4346.918.86.122.45.8100.0
1943-4445.721.46.021.55.3100.0
1944-4547.517.36.724.24.3100.0
1945-4649.113.17.524.45.9100.0
1946-4750.92.210.828.67.5100.0
1947-4850.51.610.129.58.2100.0
1948-4954.61.110.529.04.8100.0
1949-5051.90.99.830.76.7100.0
1950-5145.01.08.638.37.1100.0
1951-5254.71.59.926.37.6100.0
1952-5353.91.89.528.36.5100.0
1953-5453.41.89.127.97.8100.0
1954-5555.51.69.026.47.5100.0
1955-56*57.21.58.825.76.8100.0
AS INDEX NUMBERS (1938-39 = 100)
1938-39100 100100100100
1939-4097 149108124105
1940-4199 1649681107
1941-4299 169100109116
1942-43101 187104106130
1943-44110 207112110145
1944-45116 22912790147
1945-46127 275137130156
1946-47153 459186191181
1947-48176 496222242209
1948-49190 520219142210
1949-50210 563269231244
1950-51231 628425312310
1951-52275 707286325303
1952-53286 716325294320
1953-54318 769359396359
1954-55358 817368408388
1955-56*392 859381396414

NOTE.—The value totals given in this table are those derived in the table given on previous page.

Reviewing the period given in these tables, the percentage increases in incomes before deduction of taxation compared with those after deduction (shown in parentheses) are as follows: salary and wages, 322 (292) per cent; other personal incomes, 333 (281) per cent; and company incomes, 405 (296) per cent.

Whereas salary and wage payments (including pay and allowances of the Armed Forces) formed 53.2 per cent of private income before tax in 1955-56, other personal income (including rental value of owner-occupied houses) 28.7 per cent, and company income 11.0 per cent, these proportions changed to 58.7 per cent, 25.7 per cent, and 6.8 per cent respectively after deduction of direct taxes, and expressed as a percentage of private disposable income. A factor of some importance which affects the comparability of these figures is the introduction of non-monetary social security benefits over the period. Taxation taken to pay for these benefits reduces private disposable income, but at the same time this income is indirectly increased by a reduction in private expenditure on the items covered by the benefits. It is not feasible to make any allowance for this factor at this point, but it should be borne in mind.

GOODS AND SERVICES COMPARED WITH INCOMES.—The following table shows income generated in the production of all kinds of goods (consumer and capital goods) and services during 1955-56, and the total value of goods and services produced during the year. All goods and services (the total value of which is called gross national product) are valued at their respective market prices.

The table also follows up the reallocation of purchasing power originating in production consequent upon a number of transfers between the public and Government—taxation, social security payments, subsidies, etc., may be mentioned here—and the final amount of purchasing power left in the hands of each to purchase consumer goods, capital goods, and services produced during the year.

GOODS AND SERVICES1955-56 £(m.)
1. Gross national product at market prices982
2. Less imputed rental value of owner-occupied houses-23
3. Excess of imports over exports31
4. Total goods and services available at market prices990

INCOMES AND PURCHASING POWER

(NOTE.—The difference of £1 million is due to rounding of figures.)

Private Sector
5. Wages, salaries, interest, dividends, and profits on which social security tax is paid—
    (a) Earned in current production of goods and services795
    (b) Interest paid to holders of the public debt domiciled in New Zealand21
6. Depreciation which has been allowed for taxation purposes but is available to firms and individuals to purchase replacements of capital goods63
7. Total resources originating in current production available to business and public879
8. From which Government levied in direct taxation-174
9. But returned to the public in the form of social security benefits and pensions64
10. Leaving in the hands of the public to purchase goods and services769
Government Sector
11. Government (general and local authorities) has levied—
    (a) Direct taxation—deducted from private incomes (see 8 above)174
    (b) Indirect taxation included in the price of goods and services in item 4 above85
12. Profits of Government and local authority trading departments are another source of Government revenue29
13. Resulting in a gross revenue for Government of288
14. The Government has returned to the public tax-free social security benefits and pensions (see 9 above)-64
15. Interest on public debt domiciled in New Zealand is also returned to the public and so Government cannot spend it (see 5 (b) above)-21
16. Government has paid in subsidies on consumer goods reducing the market prices of such goods-12
17. Leaving a net income in the hands of Government from which it can purchase consumer and capital goods (e.g., pharmaceuticals or materials for public works) and services — (e.g., civil servants' services) all of which are included in item 4 above191
Summary
18. Net incomes in the hands of public (item 10 above)769
Net income in the hands of Government and local authorities (item 17 above)191
Additional purchasing power obtained by drawing on accumulated overseas reserves31
19. Total resources available to public and Government to purchase goods and services — at market prices991
Compared with—
20. Total goods and services available at market prices (item 4 above)990

The previous table purports to show no more than the essential equivalence of incomes derived from the current year's production process (production of material goods and services) and the market price of such goods and services; it is obvious, however, that this equivalence will be achieved at any level of production—that is to say, irrespective of whether all factors of production (the labour force, plant and equipment, buildings and land, etc.) are fully utilized, or partly idle.

The table also shows that the total purchasing power originating in production is not affected by any subsequent redistribution of incomes by way of direct and indirect taxation. The effect of taxation is merely to transfer command over goods and services from the private sector to the Government, which may either transfer it back to the public (as is the case with social security benefits) or exercise such purchasing power on behalf of the whole nation (e.g., defence, maintenance of roads) or provide a defined class of the public with consumer goods and services which they would otherwise have to purchase themselves (medical services, pharmaceuticals). The table does not purport to show what would happen if either the public or Government collectively chose to exercise only a portion of the purchasing power currently accruing to them (the process of saving) or if they chose to spend more than their incomes derived in the current production year (dissaving).

29 B—SECTOR ACCOUNTS

INTRODUCTION.—In November 1956 the first complete and fully integrated system of industrial sector accounts was published. Although these accounts related to a single financial year—namely, that ended 31 March 1953—they provided a static model of the whole economy wherein the various transactions were illustrated in much finer detail than is possible with the national income aggregates. They represented a considerable advance in the techniques of social accounting as practised in this country. Except for some minor modifications, which are in the nature of improvements, this system of sector accounts is reproduced in this section.

Since 1951 a successively increasing number of industrial accounts was being published, but being based on source material independent for each sector a reconcilation of inter-sector flows was not possible so long as the construction of all accounts was not completed. All accounts have, however, now been completed and revised, statistically and conceptually, for the year referred to and reconciled with each other.

It is important to bear in mind that the revision necessary for reconciliation, and the reconciliation process itself, severed all continuity between accounts published previously and the accounts as they stand at present. It is therefore suggested that no link-up should be attempted.

The principal results of research into industrial accounts and interindustry relationships are shown later in four tables headed as follows:

National Income and Output.

Domestic Income and Output.

Gross factor receipts and payments.

Input—Output.

Inter-sector Transactions.—By dividing the economy into industry sectors (irrespective of what basis of classification is used) the problem arises as to what types of transactions between sectors are to be included or, alternately, disregarded. It may be useful to define first of all what transactions are possible.

Broadly speaking, transactions may be regarded as real or financial. Real transactions are those where physical assets (goods) or services pass from one sector to another. The majority of real transactions are, of course, compensated by a financial transaction payment, but some are not. A real transaction may be compensated by another real transaction, which constitutes barter, or may not be compensated at all, i.e., a gift in kind which is a real transfer.

Financial transactions are money flows moving either in the opposite direction to real flows (e.g., purchases and sales) or independently of them; examples of the latter are gifts of money between individuals, cash social security benefits paid by the State to individuals, cash grants paid by the State and capital lending and borrowing.

Incomes, i.e., factor payments and incomes which in the aggregate make up national income at factor cost, occupy an intermediate position from the point of view of a flow classification. They can be regarded as payment for a service, the service of labour in the case of salaries and wages for instance, or payment for the "waiting" service of capital where profits, interest, and dividends are concerned. In this sense then, the services of labour and capital can be regarded as real transfers to or inputs of those sectors which reward production factors in the form of wage, profit, interest, and dividend payments.

While the concept of labour input as a real transfer can be easily grasped, the question of capital "input" as a real transfer is more ambiguous. In fact, in some systems of sector accounting, factor payments to capital are treated as financial transfers only.

Using the terms defined above, it is now possible to define broadly what categories of inter-sector flows have been shown in the system. The flows shown are all real transactions with the exception of real transfers, and all financial transactions with the exception of financial (capital) transactions. In qualification, it is also necessary to define the meaning of financial (capital) transactions. Lending and borrowing of cash or its equivalent and the provision of credit fall into this category; in such transactions the capital nature of the financial transaction is obvious both to the lender and borrower, to the credit giver and credit taker. Gifts in cash between individuals resident in New Zealand are another instance. These transactions are definitely excluded from sector flows. On the other hand there are a number of financial transactions the capital nature of which is not clear cut, or, where the transaction may appear to be of a capital nature to one party (or sector) but not to the other. Individuals, for instance, may support a private welfare organization by annual subscriptions as members. Such a payment is treated as payment for a service or a financial transaction compensating for a real flow. Other individuals may contribute to such an organization by donations which from the individual's point of view are gifts; but from the point of view of the organization both subscriptions and gifts, etc., are a regular source of income from which they carry on their activities. Cash gifts passing between New Zealand and overseas residents are capital receipts and payments for both parties concerned (the same as they are between New Zealand residents); but because the sector tables describe accounts for the whole economy and because gifts between individuals resident in different countries form a regular flow of receipts and payments which generally accepted concepts of balance of payments (i.e., rest of the world sector) treat as a current flow between countries, we again get a flow of a current-capital character according to which sector we consider. Various types of cash grants made by Government which recipients could regard as gifts (whether they be received regularly or on a once-for-all basis) are, from the point of view of Government, a regular form of expenditure even if the payment is made to different persons and institutions in successive years.

Thus even if the element of quid pro quo was absent through lack of a compensating real flow it was found convenient to include such financial flows in the accounts where; after the transaction had taken place, the claims-liability position of the parties vis-a-vis each other remained unaffected by virtue of such transaction, and where the transaction could be regarded as current from the point of view of the paying or receiving sector. All the transactions named above are shown in the Input-Output table as "transfers" or "transfer payments".

The division of the economy into industrial sectors also had some specific effects on the transactions of central and local government. The concept of Government is both legal and, from the point of view of national accounting, functional. If, however, the agglomeration of activities described as Government is analysed by industry, it is obvious that connecting links have to be imputed between those activities which are now described as industrial and the remainder of Government—now called Public Administration—in order to preserve the overall unity of Government accounts and various funds which are deemed to be administered by the industrial sector Public Administration.

An example is afforded by the following case. The Ministry of Works, its whole staff and material resources are classified in the Building and Construction industry; the Ministry of Work's annual current expenditure on the provision of public works and services (but not its capital expenditure) is shown in the Input-Output table as a transaction between the sector Public Administration (column—Charge on Public Revenue) and the sector Building and Construction. This transaction could be regarded in two ways. It could be taken as a transfer or financial transaction which has some analogy with a subsidy. Or, it could be regarded as a purchase of goods and services (in compensation for a real transaction flowing from Building and Construction to Public Administration) by the sector Public Administration and more particularly a form of final purchase, because Public Administration is, together with Households and the Capital account, one of the final purchasers of the gross product. The latter treatment is, however, the only possible one in view of accepted concepts in national accounting.

It is necessary in the explanation of sector transactions to point out what appears to be a contradiction in the statement that "The flows shown are … all financial transactions with the exception of financial (capital) transactions". The Input-Output table contains in the row designated Capital three sub-rows named Depreciation, Undistributed Company Profits and Savings. Each of the items has a connotation of a capital (financial) transaction being, of course, a type of saving; the counterpart to the three above-named rows is the column Capital and its two sub-columns Capital Formation and Stocks. The inclusion of capital rows and columns arises from the conceptual construction of the sector accounts themselves. Each sector account not only shows current input and output but capital formation in the sector as well. Capital formation appears on the same side of the account as current output (current sales of goods and services) and represents in fact a sale of the industry to its own capital account. In terms of value this is equal to various inputs (purchases) from other industries of capital goods, services, etc., which make up capital formation in the sector concerned. In an account so constructed it is necessary to show savings originating in the sector as part of the sector input. It now becomes obvious that the rows Depreciation, Undistributed Company Profits and Savings are purely pro forma transactions between the sector and its own Capital Account and cannot be considered as flows in the real sense or financial sense at all. Financial (capital) flows between sectors are not included in the Input-Output table, and the Capital account merely shows the origin of savings and their final utilization, not the flows themselves.

Sector Classification.—Industries are defined according to the International Classification of all Economic Activities prepared by the Statistical Commission of the United Nations. The I.C.E.A. divides industries into major groups of industries and major groups combine into divisions. The sector classification as adopted in the tables are either major groups, combinations of major groups, or divisions of the I.C.E.A.

Industrial units are classified as far as possible according to the establishment concept (factory, workshop, mine, farm, etc.) and the preponderant industrial activity carried on in the establishment. Ancillary activities (e.g., generation of electric power in a factory or the maintenance and upkeep of vehicles operated by a wholesale firm) go with the main economic activity. In some instances, however, the wider concept of the firm (or enterprise) had to be adopted. The firm or enterprise as a unit of classification may cut across several industrial classifications (e.g., a manufacturer with a chain of retail outlets, a carrier who is also a contractor or has his own quarry, etc.). Although the enterprise concept is not really suitable for the purpose in hand, its acceptance was unavoidable where the accounts of the firm could not be broken up.

It has already been pointed out that the entity Government (and local government) has been shorn of all its industrial activities. Entire departments, such as the Ministry of Works, State Hydroelectric and Mines Departments, have been entered into their respective sectors the same as public corporations, all of which perform industrial functions. Waterworks, municipal distributors of electric power, municipal abattoirs, etc., have been treated the same way. Certain local authorities— Harbour and Power Boards, Hospital Boards, etc.—are purely industrial and form part of their respective sectors. In other instances, only specific divisions of a department of state have been excluded from Public Administration—the residual function of Government. For instance the hostels and camps operated by the Department of Labour are part of the Services sector, the remainder of this Department being in the sector Public Administration.

Sector Boundaries.—The valuation boundary at which real transactions (or more particularly transactions in goods) are valued is f.o.b. selling sector. This point may be the farm gate, factory, warehouse, etc. This applies in every case where a distributive industry (Wholesale and Retail Trade, Transport and Communications) intervenes between seller and buyer. In other words the buyer buys at the seller's warehouse and pays for the cost of distribution directly to the distributive sectors. Where seller and buyer deal with each other without the intervention of the Wholesale and Retail Trade sector and where they transport their own goods, the valuation can be either f.o.b. or c.i.f. or anywhere between.

It is necessary to explain at this stage some peculiarities connected with the construction of the Wholesale and Retail Trade sector. The movement of physical goods from producing to consuming sector—whether it be intermediate or final consumption—is shown as a direct flow from producing to consuming sector by-passing the Wholesale and Retail Trade sector altogether. The Wholesale and Retail Trade sector does not therefore purchase goods from the producing sector at the full market price and then sell the goods to the consuming sector at the purchase price plus gross trade margin. It merely acts as an agent on behalf of the consuming sector, so to speak, for which it receives from the consuming sector a reward equivalent to the gross trade margin. Any other treatment would have made an analysis of the inter-industry flow of physical goods and materials impossible. There is only one exception when the Wholesale and Retail Trade sector is not treated as an agent for the buying sector: the exception refers to the case where the Wholesale and Retail Trade sector purchases goods and services to increase its own stocks.

The valuation boundaries as applied to the Rest of the World sector also deserve special comment. Goods purchased from the Rest of the World by domestic sectors are, in the aggregate, valued c.i.f., and goods sold to the Rest of the World are valued f.o.b. There are several important qualifications to this statement. Firstly, freight earnings of resident shipping companies, included in c.i.f. import figures are part of the cost of imported goods as far as the domestic sector is concerned, but such freight earnings are not transactions between the domestic sector and the Rest of the World. To preserve the identity of the balance of payments figure, it is therefore necessary to credit the Transport and Communications sector with a receipt from the Rest of the World which is equal to inward freight earnings. In addition, Transport renders services to the Rest of the World equivalent to receipts for export and international cross-trade freights. The second qualification refers to instances where a domestic sector purchases from the Rest of the World through distributive channels; in such cases the c.i.f. values shown in the Rest of the World row are not actual purchasing values since the distributive industries must be remunerated by gross margins and transport costs. The third point to remember is that—although the total of sales to the Rest of the World is equal to the total f.o.b. valuation of exports—individual sales by domestic industries may be less by the amount of gross margins and transport costs involved to bring the goods from point of sale to f.o.b. These distributive charges are shown as receipts by the Wholesale and Retail, Trade and Transport, and Communications sectors from the Rest of the World (in the Rest of the World column).

NATIONAL INCOME AND OUTPUT.—This table gives an analysis of factor flows which on the basis of concepts used in New Zealand constitute (net) national income. The columns give items and aggregates of factor payments by sectors and type of factor payment. The total for each industry is the industry's net output, and the totals of industry outputs are equal to net national output (at factor cost). The rows in the table are incomes, subdivided by types of income into three groups—Households, Public Administration, and Other Sectors. The last named provides for all the adjustments of interest, profits, and dividends between paying and receiving sectors.

It will be noted that the total for national income as shown amounts to £689.5 million, which is a figure which can be directly compared with the published figure—arrived at by the aggregative method—of £656.2 million for the year 1952-53. Both totals are, of course, estimates and subject to errors and omissions. But the most appropriate explanation for the difference (£33.3 million) in the totals will be apparent if it is realized that the lower figure—£656.2 million—arrived at by the aggregative method is wholly based on taxation returns and tax paid, whereas the higher figure of £689.5 million is to a greater extent based on source material independent of taxation returns. The following reconciliation states broadly the nature of the difference.

Income£(m.)Output£(m.)
Net national income as per aggregates656.2Net national output as per aggregates656.2
  Plus understatement of incomes and errors and omissions33.3  Plus understatement of output in—
  Primary industries      12.0
  Secondary industries      7.3
  Other industries  n  14.0
   33.3
 689.5 689.5

DOMESTIC INCOME AND OUTPUT.—Net national income (at factor cost) can be defined as the income earned by and accruing to the factors of production in or only temporarily absent from New Zealand in producing the current output of goods and services. This means that national income totals include factor incomes received from overseas or accruing to domestic factors of production from overseas but exclude factor incomes transferred to overseas or accruing to factors domiciled overseas. Inter-sector flows on the other hand are shown in terms of domestic flows; to be able to link intermediate and final consumption flows with net income figures it is necessary to convert national output to domestic output. The adjusting entry between these two output concepts consists in the addition of factor payments to other countries to national output, and in the deduction of factor incomes received from outside New Zealand from national output.

GROSS FACTOR RECEIPTS AND PAYMENTS.—This table shows the derivation of the connecting link-factor receipts and payments between the two tables showing net income and output and the gross factor transactions for the Input and Output table. While every receipt must also be a payment and the sum total of one must equal the sum total of the other, this is not true if we consider domestic factor receipts and payments. The totals of the two gross flows will differ by the net difference of factor flows between New Zealand and the Rest of the World. Therefore, an adjustment is made for factor payments to and receipts from the Rest of the World. These payments and receipts are deducted from their respective sector columns and an equal amount attributed to the Rest of the World. This adjustment has the result that the Rest of the World is attributed a negative "output" (in New Zealand's relationship with the Rest of the World factor payments to the Rest of the World normally exceed factor receipts from the Rest of the World) and the sum total of factor payments and receipts is made equal.

Theoretically, the Input-Output table is completely self-balancing without the introduction of factor flows (first row and first column in the table). In practice, however, not all entries could be ascertained by direct statistical measurement (one of the most important being savings of Households), and only after the introduction of factor flows could such entries be inserted as residuals. Conversely, certain items of income and output in the first two tables could only be estimated by going back from the Input-Output table.

INPUT-OUTPUT.—Technically speaking, the designation of this table as "Input-Output" is not quite correct. As the term is understood in literature, an input-output table records real flows only. But from the explanations given in the paragraph on inter-sector transactions it is evident that real and financial transactions can be readily separated from each other. Financial transactions can be eliminated because they are set out separately both in the rows and columns. The real flows which remain form the economic and technological pattern of inter-industry relationships.

Applications.—A number of applications of the tables on pages 746-748 suggest themselves. A variety of important facts regarding the structure of the economy can be obtained by inspection or by simple calculation. The tables can also be applied for the construction or revision of other statistical series.

For instance, inputs into the farming industry provide a weighting pattern for the construction of an index of farm expenditures. Similarly, it will be possible to revise the wholesale price index by using intermediate flows and their relationships as the weighting pattern for the index. The computation of gross national product at constant prices will also be greatly facilitated.

But one of the most interesting applications of the tables is the possibility of finding out the interdependence, in quantitative terms, of one industry on another. This application is essentially a mathematical one. It consists in the solution of n (for the number of sectors) simultaneous equations, obtaining thereby n2 coefficients. These coefficients are derived by an inversion of the original matrix consisting of input and output ratios in each row and column. Given sector outputs, the ratios enable the calculation of final demand, or if final demand is postulated, it is possible to calculate sector outputs and inputs by the use of derived coefficients. The mathematical results so obtained will give the picture of a static economic model as described in the tables; a dynamic model, based on a time series of input-output flows, would have to be solved by n2 differential simultaneous equations. It is hoped to proceed with the mathematical processing of the static model in the near future; the matrix inversion of the dynamic model will have to wait for the preparation of sector accounts for 1954-55, the work on which has recently commenced.

DESCRIPTION OF SECTORS.—A very brief description of some of the more important features of each sector follows in the next paragraphs.

Farming.—The industry includes, besides the usual farming pursuits, all forms of contract work on farms and more particularly the aerial top-dressing industry.

Forestry and Logging.—The New Zealand Forest Service is part of this industry. Where sawmills and logging operations form a single enterprise, the sawmilling activities are included under Manufacturing, Other.

Hunting, Fishing, etc.—Includes operations of Rabbit Boards and Government pest-control services.

Mining.—Operations of State coal depots are excluded (these are part of Wholesale and Retail Trade).

Manufacturing, Primary Produce Processing.—This industry includes only two main groups of manufacturing activities; meat works (exclusive of abattoirs) and dairy, cheese, and other milk-processing factories. This is a somewhat arbitrary definition, excluding such industries as flour mills, vegetable and fruit canning, wool scouring, etc. The intention was to include only the two principal manufacturing industries processing our major exports.

Manufacturing, Other.—Included are all other manufacturing units covered by the annual census of factory production plus the naval dockyard, railway workshops, abattoirs, and bakeries.

Building and Construction.—Includes all building and construction firms, contractors, the Ministry of Works, but does not include construction activities of the State Hydro-electric Department, New Zealand Railways, and other undertakings where construction is only ancillary to the main industry. Of local authorities, Catchment, River, and Land Drainage Boards form part of the sector, as well as construction work done by counties, boroughs, cities, and other local authorities.

Public Utilities.—The main undertakings in this sector are the State Hydro-electric Department, private and municipal gas works, Electric Power Boards, and municipal electricity departments. Waterworks, drainage, and sewerage services are part of the sector.

Transport and Communications.—Includes industries, private and Government, usually associated with this industry. The waterfront industry and local transport boards are included.

Wholesale and Retail Trade.—Covers the usual distributive industries (but not restaurants) and various statutory boards which distribute pastoral and agricultural produce—e.g., the New Zealand Meat Producers Board, the Dairy Products Marketing Commission, Wool Disposal Commission, Apple and Pear Board, and the Wheat Committee. The various surpluses obtained by these boards, arising from differentials between overseas realizations and local pay-outs to farmers, are therefore shown as a surplus in the Wholesale and Retail Trade sector.

Banking and Insurance.—The major Government undertakings included here are the State Advances Corporation and the Government Life and Fire Insurance offices, as well as all other private financial institutions. Holding companies and real estate companies are also included.

Public Administration.—The content of this sector has already been fully described in the paragraphs dealing with the principles of industrial classification and inter-sector transactions. The administrative aspect of local authorities is part of the sector, but the administration side of industrial local authorities (Power Boards, Harbour Boards, etc.) is not.

Defence.—Excludes administrative civilian staff of Defence Departments.

Services.—This sector includes a wide range of businesses, institutions, local bodies, and Departments of State. All the community and business services and professions are included— e.g., schools, private and public, university colleges, churches, charitable organizations, trade and political organizations, hospitals and mental institutions, the Departments of Scientific and Industrial Research, divisions of the Education and Health Departments, Education Boards, and many others. The major group of Recreation Services (including the National Broadcasting Service and National Film Unit) is also in this sector. Finally, the major group of Personal Services—hotels, restaurants, and a great variety of other industries—is included.

Households.—The industry Ownership of Houses and Flats—i.e., the business of letting land and real property undertaken by private persons other than in connection with some other business— and the rental value of owner-occupied houses (an imputed item), together with the expenditure on owner-occupied houses, is part of this, sector.

Rest of the World.—This sector is based on a reclassification of the balance of payments relationship between New Zealand and residents of other countries. The principles underlying the construction of balance of payments accounts is fully described in the annual "Report on the Official Estimates of Balance of Payments" published by the Department of Statistics. The difference between the balance of payments on current account for 1952-53 and the sector Rest of the World is that in the former international transactions are classified by type of transaction (exports and imports, transportation, travel, investment, income, etc.), whereas in the sector account they are classified by the domestic sector which provides or receives goods and services or factor incomes.

Capital Account.—This account merely brings together various items of savings and investment already appearing in the other accounts and the Input-Output table. As mentioned on page 744 it does not account for financial (capital) flows from sectors where they originate to the sectors which utilize them.

NATIONAL INCOME AND OUTPUT, 1952-53

£ (million)

Factor Payments/Factor ReceiptsOutput
FarmingForestry and LeggingHunting, Fishing, etc.MiningManufacturing, Primary Produce ProcessingManufacturing, OtherBuilding and ConstructionPublic UtilitiesTransport and CommunicationsWholesale and Retail TradeBanking and InsurancePublic AdministrationDefenceServicesHouseholdsRest of the WorldNet National Income

* Direct taxation exclusive of direct taxes on household incomes other than unincorporated business profits and rents.

† Trading profits and rates of industrial local authorities which are not departments of general local authorities.

IncomeHouseholds—
  Salaries and wages25.13.61.04.812.291.330.67.147.951.410.814.010.650.01.8 362.2
Unincorporated business profits9360.41.10.4 6.011.1 6.116.10.8  23.2  158.8
  Interest0.4    0.3   0.33.3  0.20.40.14.9
  Net rents1.11.7   1.30.2 0.11.9   1.418.9 26.6
  Dividends0.4  0.10.45.10.90.10.78.30.6  0.80.60.618.0
      Totals120.65.72.15.312.6104.042.87.254.878.015.514.010.675.621.7 570.5
Public Administration—
  Direct taxes*25.70.20.20.42.112.82.70.12.021.17.0  4.9  79.2
  Rates*4.2    0.6   1.60.50.1 0.54.3 11.8
  Profits of trading undertakings1.50.3 0.1 0.1 1.50.90.16.5  -0.2 0.210.8
  Interest from Rest of the World           0.7   0.70.7
  Dividends          0.4     0.4
      Totals31.40.50.20.52.113.52.71.62.922.814.40.8 5.24.3 102.9
Other Sectors—
  Undistributed company profits0.7  0.13.46.93.00.10.99.31.6  0.8  26.8
  Profits of local authorities       3.30.4       3.7
  Rates1.2    0.1   0.30.1  0.11.0 2.8
  Primary producers' stabilisation accounts-6.1        3.6      -2.5
  Interest, profits, and dividends paid6.10.10.1 0.84.50.80.10.66.013.1  1.26.03.739.4
  Less
    Interest, profits, and dividends received-0.2  -0.1-0.7-5.0-0.2-0.2-0.6-6.9-37.8  -2.4 -10.0-54.1
    Net national output153.76.32.45.818.2124.049.112.159.0113.16.914.810.680.533.0 689.5
Net national output153.76.32.45.818.2124.049.112.159.0113.16.914.810.680.533.0 689.5
DOMESTIC INCOME AND OUTPUT
Net Domestic Income
Rest of the World—
  Interest, profits, dividends received from Rest of the World     -0.1  -0.1-0.5-2.9-0.7 -0.3-0.7 -5.3
  Interest, profits, dividends paid to Rest of the World0.1  0.10.44.4  0.12.52.3  0.1  10.0
    Net domestic output153.86.32.45.918.6128.349.112.159.0115.16.314.110.680.332.3 694.2
GROSS FACTOR RECEIPTS AND PAYMENTS                 
Gross Factor Receipts—                 
  Households              570.5 570.5
  Public administration           102.9    102.9
  Undistributed company profits0.7  0.13.46.93.00.10.99.31.6  0.8  26.8
  Profits of local authorities       3.30.4       3.7
  Rates  0.4   0.40.5     1.5  2.8
  Primary producers' stabilisation accounts-6.1        3.6      -2.5
  Interest, profits, dividends0.2  0.10.75.00.20.20.66.937.8  2.4  54.1
  Adjustment for Rest of the World-0.1  -0.1-0.4-4.4  -0.1-2.5- 2.3  -0.1 + 10.0 
  Less                 
    Public debt interest       -0.1 -1.4-10.5  -0.3  -12.3
    Undistributed profits of overseas companies    -0.1-2.1  -0.1-0.1      -2.4
    Gross factor receipts-5.3 0.40.13.65.43.64.01.715.826.6102.9 4.3570.510.0743.6
Gross Factor Payments—                 
  Received by households120.65.72.15.312.6104.042.87.254.878.015.514.010.675.621.7 570.5
  Received by public administration31.40.50.20.52.113.52.71.62.922.814.40.8 5.24.3 102.9
  Undistributed company profits0.7  0.13.46.93.00.10.99.31.6  0.8  26.8
  Profits of local authorities       3.30.4       3.7
  Rates1.2    0.1   0.30.1  0.11.0 2.8
  Primary producers' stabilisation accounts-6.1        3.6      -2.5
  Interest, profits, dividends6.10.10.1 0.84.50.80.10.66.013.1  1.26.0 39.4
  Adjustment for Rest of the World     -0.1  -0.1-0.5-2.9-0.7 -0.3-0.7+5.3 
      Gross factor payments153.96.32.45.918.9128.949.312.359.5119.541.814.110.682.632.35.3743.6
INPUT-OUTPUT, 1952-53£ (million)
From/ToGross Factor ReceiptsFarmingForestry and LoggingHunting, Fishing, etc.MiningManufacturing—Primary Produce ProcessingManufacturing—OtherBuilding and ConstructionPublic UtilitiesTransport and CommunicationsWholesale and Retail TradeBanking and InsurancePublic AdministrationPublic AdministrationDefenceServicesHouseholdsRest of the WorldCapitalTotals 
Charge on Public RevenueSubsidiesTransfers and Public Debt InterestCapital FormationStocks

* Exclusive of rates on rented and owner-occupied houses which have been treated as factor payments.

† Stocks in transit.

Gross factor payments 153.96.32.45.918.9128.949.312.359.5119.541.814.1   10.682.632.35.3  743.6 
Farming-5.362.70.1  125.723.4   0.20.20.60.1  0.52.420.155.720.25.3311.9
Forestry and logging 0.8  0.1 5.8      0.3    0.4 2.0 9.4
Hunting, fishing, etc.0.4    0.10.1      0.9   0.10.81.10.1 3.6
Mining0.1    0.93.21.51.01.2 0.1 0.20.1  0.61.80.81.40.113.0
Manufacturing—Primary produce processing3.60.7   0.14.7    0.2     1.415.6139.44.11.9171.7
Manufacturing—Other5.434.50.50.61.64.577.330.73.623.322.83.32.30.50.6 3.311.6163.014.423.914.4442.1
Building and construction3.63.90.3 0.81.37.8 11.04.93.212.20.323.4 0.42.513.837.2 3.71.5131.8
Public utilities4.00.7   0.83.00.20.90.21.70.40.11.00.60.10.12.17.0 18.50.241.6
Transport and communications1.74.60.40.11.65.57.47.62.56.921.31.71.21.10.6 1.03.319.122.819.20.1129.7
Wholesale and retail trade15.820.60.30.20.43.010.010.71.17.51.12.10.4 12.51.40.52.5108.518.35.820.1242.8
Banking and insurance26.60.90.1 0.30.43.21.00.21.14.22.51.40.10.710.5 1.19.11.610.4 75.4
Public administration102.91.5 0.10.20.30.30.10.10.20.50.6 0.2 1.5 0.31.60.310.7 121.4243.8
Public AdministrationDirect taxes on households*                  55.1   55.1
Indirect taxes 0.70.1   32.90.3 0.526.70.4     4.21.5   67.3
Defence 0.2       0.1   24.8    1.70.1  26.9 
Services4.34.20.1 0.20.24.80.30.10.98.62.17.932.0 0.30.317.760.52.110.40.6157.6158.6
 Transfers               0.3  0.7   1.0
Households570.51.9    2.40.3 0.23.53.81.2  1.70.14.911.41.432.9 636.2697.3
 Transfers               54.2   6.9  61.1
Rest of the World10.013.80.70.10.64.9114.424.04.315.111.81.28.9   8.05.951.21.6-5.2-7.0264.3271.8
 Transfers               1.3  6.2   7.5
CapitalDepreciation 11.70.50.11.21.87.72.81.16.94.91.2     3.31.5   44.7195.3
Undistributed company profits 0.7  0.13.34.83.00.10.89.21.6     0.8    24.4
Savings -6.1      3.30.43.6 34.0     91.0   126.2
 Totals743.6311.99.43.613.0171.7442.1131.841.6129.7242.875.472.484.615.171.726.9158.6697.3271.8158.137.23,910.3 
              243.8    195.3 

FARMING ACCOUNT, 1952-53

£(million)

CreditsDebits
 Total Total
 Salaries and wages25.1
Direct taxes31.1
Surplus97.5
Net output153.7
Net factor payments to the rest of the world0.1
Net domestic output153.8
Sales of goods and services to sectors—Purchases of goods and services from sectors— 
Farming62.7Farming62.7
Forestry and logging0.1Forestry and logging0.8
Hunting, fishing, etc. Hunting, fishing, etc. 
Mining Mining 
Manufacturing, primary produce processing125.7Manufacturing, primary produce processing0.7
Manufacturing, other23.4Manufacturing, other34.5
Building and construction Building and construction3.9
Public utilities Public utilities0.7
Transport and communications Transport and communications4.6
Wholesale and retail trade0.2Wholesale and retail trade20.6
Banking and insurance0.2Banking and insurance0.9
Public administration0.6Public administration1.5
Defence0.5Defence0.2
Services2.4Services4.2
Households20.1Households1.9
Rest of the world55.7Rest of the world13.8
Other receipts from public administration—Indirect taxes0.7
Subsidies  
Charge on public revenue0.1Depreciation11.7
Transfers  
Rates 
Capital formation20.2
Stock change5.3
      Total credits317.2      Total debits317.2

FORESTRY AND LOGGING ACCOUNT, 1952-53

£(million)

CreditsDebits
 Total Total
 Salaries and wages3.6
Direct taxes0.2
Surplus2.5
Net output6.3
Net factor payments to the rest of the world 
Net domestic output6.3
Sales of goods and services to sectors—Purchases of goods and services from sectors—
Farming0.8Farming0.1
Forestry and logging Forestry and logging 
Hunting, fishing, etc. Hunting, fishing, etc. 
Mining0.1Mining 
Manufacturing, primary produce processing Manufacturing, primary produce processing 
Manufacturing, other5.8Manufacturing, other0.5
Building and construction Building and construction0.3
Public utilities Public utilities 
Transport and communications Transport and communications0.4
Wholesale and retail trade Wholesale and retail trade0.3
Banking and insurance Banking and insurance0.1
Public administration Public administration 
Defence Defence 
Services Services0.1
Households0.4Households 
Rest of the world Rest of the world0.7
Other receipts from public administration—Indirect taxes0.1
Subsidies  
Charge on public revenue0.3Depreciation0.5
Transfers  
Rates 
Capital formation2.0
Stock change 
      Total credits9.4      Total debits9.4

HUNTING, FISHING, ETC., ACCOUNT, 1952-53

£ (million)

CreditsDebits
 Total Total
 Salaries and wages1.0
Direct taxes0.2
Surplus1.2
Net output2.4
Net factor payments to the rest of the world 
Net domestic output2.4
Sales or goods and services to sectors—Purchases of goods and services from sectors—
Farming Farming 
Forestry and logging Forestry and logging 
Hunting, fishing, etc. Hunting, fishing, etc. 
Mining Mining 
Manufacturing, primary produce processing0.1Manufacturing, primary produce processing 
Manufacturing, other0.1Manufacturing, other0.6
Building and construction Building and construction 
Public utilities Public utilities 
Transport and communications Transport and communications0.1
Wholesale and retail trade Wholesale and retail trade0.2
Banking and insurance Banking and insurance 
Public administration Public administration0.1
Defence Defence 
Services0.1Services 
Households0.8Households 
Rest of the world1.1Rest of the world0.1
Other receipts from public administration—Indirect taxes 
Subsidies  
Charge on public revenue0.9Depreciation0.1
Transfers  
Rates0.4
Capital formation0.1
Stock change 
      Total credits3.6      Total debits3.6

MINING ACCOUNT, 1952-53

£(million)

CreditsDebits
 Total Total
 Salaries and wages4.8
Direct taxes0.4
Surplus0.6
Net output5.8
Net factor payments to the rest of the world0.1
Net domestic output5.9
Sales of goods and services to sectors—Purchases of goods and services from sectors—
Farming Farming 
Forestry and logging Forestry and logging0.1
Hunting, fishing, etc. Hunting, fishing, etc. 
Mining Mining 
Manufacturing, primary produce processing0.9Manufacturing, primary produce processing 
Manufacturing, other3.2Manufacturing other1.6
Building and construction1.5Building and construction0.8
Public utilities1.0Public utilities 
Transport and communications1.2Transport and communications1.6
Wholesale and retail trade Wholesale and retail trade0.4
Banking and insurance0.1Banking and insurance0.3
Public administration Public administration0.2
Defence Defence 
Services0.6Services0.2
Households1.8Households 
Rest of the world0.8Rest of the world0.6
Other receipts from public administration—Indirect taxes 
Subsidies0.1 
Charge on public revenue0.2Depreciation1.2
Transfers  
Rates 
Capital formation1.4
Stock change0.1
      Total credits12.9      Total debits12.9

MANUFACTURING, PRIMARY PRODUCE PROCESSING ACCOUNT, 1952-53

£(million)

Credits
 Total
Sales of goods and services to sectors—
  Farming0.7
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining 
  Manufacturing, primary produce processing0.1
  Manufacturing, other4.7
  Building and construction 
  Public utilities 
  Transport and communications 
  Wholesale and retail trade 
  Banking and insurance0.2
  Public administration 
  Defence 
  Services1.4
  Households15.6
  Rest of the world139.4
Other receipts from public administration—
  Subsidies 
  Charge on public revenue 
  Transfers 
Rates 
Capital formation4.1
Stock change1.9
      Total credits168.1
Debits
 Total
Salaries and wages12.2
Direct taxes2.1
Surplus3.9
Net output18.2
Net factor payments to the rest of the world0.4
Net domestic output18.6
Purchases of goods and services from sectors—
  Farming125.7
  Forestry and logging 
  Hunting, fishing, etc.0.1
  Mining0.9
  Manufacturing, primary produce processing0.1
  Manufacturing, other4.5
  Building and construction1.3
  Public utilities0.8
  Transport and communications5.5
  Wholesale and retail trade3.0
  Banking and insurance0.4
  Public administration0.3
  Defence 
  Services0.2
  Households 
  Rest of the world4.9
Indirect taxes 
Depreciation1.8
      Total debits168.1

OTHER MANUFACTURING ACCOUNT, 1952-53

£(million)

Credits
 Total
Sales of goods and services to sectors—
  Farming34.5
  Forestry and logging0.5
  Hunting, fishing, etc.0.6
  Mining1.6
  Manufacturing, primary produce processing4.5
  Manufacturing, other77.3
  Building and construction30.7
  Public utilities3.6
  Transport and communications23.3
  Wholesale and retail trade22.8
  Banking and insurance3.3
  Public administration2.3
  Defence3.3
  Services11.6
  Households163.0
  Rest of the world14.4
Other receipts from public administration—
  Subsidies0.6
  Charge on public revenue0.5
  Transfers 
Rates 
Capital formation23.9
Stock change14.4
      Total credits436.7
Debits
 Total
Salaries and wages91.3
Direct taxes13.5
Surplus19.2
Net output124.0
Net factor payments to the rest of the world4.3
Net domestic output128.3
Purchases of goods and services from sectors—
  Farming23.4
  Forestry and logging5.8
  Hunting, fishing, etc.0.1
  Mining3.2
  Manufacturing, primary produce processing4.7
  Manufacturing, other77.3
  Building and construction7.8
  Public utilities3.0
  Transport and communications7.4
  Wholesale and retail trade10.0
  Banking and insurance3.2
  Public administration0.3
  Defence 
  Services4.8
  Households2.4
  Rest of the world114.4
Indirect taxes32.9
Depreciation7.7
      Total debits436.7

BUILDING AND CONSTRUCTION ACCOUNT, 1952-53

Credits
 Total
Sales of goods and services to sectors—
  Farming3.9
  Forestry and logging0.3
  Hunting, fishing, etc. 
  Mining0.8
  Manufacturing, primary produce processing1.3
  Manufacturing, other7.8
  Building and construction 
  Public utilities11.0
  Transport and communications4.9
  Wholesale and retail trade3.2
  Banking and insurance12.2
  Public administration0.3
  Defence2.5
  Services13.8
  Households37.2
  Rest of the world 
Other receipts from public administration—
  Subsidies 
  Charge on public revenue23.4
  Transfers0.4
Rates0.4
Capital formation3.7
Stock change1.5
      Total credits128.6
Debits
 Total
Salaries and wages30.6
Direct taxes2.7
Surplus15.8
Net output49.1
Net factor payments to the rest of the world 
Net domestic output49.1
Purchases of goods and services from sectors—
  Farming 
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining1.5
  Manufacturing, primary produce processing 
  Manufacturing, other30.7
  Building and construction 
  Public utilities0.2
  Transport and communications7.6
  Wholesale and retail trade10.7
  Banking and insurance1.0
  Public administration0.1
  Defence 
  Services0.3
  Households0.3
  Rest of the world24.0
Indirect taxes0.3
Depreciation2.8
      Total debits128.6

PUBLIC UTILITIES ACCOUNT, 1952-53

£(million

Credits
 Total
Sales of goods and services to sectors—
  Farming0.7
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining 
  Manufacturing, primary produce processing0.8
  Manufacturing, other3.0
  Building and construction0.2
  Public utilities0.9
  Transport and communications0.2
  Wholesale and retail trade1.7
  Banking and insurance0.4
  Public administration0.1
  Defence0.1
  Services2.1
  Households7.0
  Rest of the world 
Other receipts from public administration—
  Subsidies0.6
  Charge on public revenue1.0
  Transfers 
Rates0.5
Capital formation18.5
Stock change0.2
      Total credits38.0
Debits
 Total
Salaries and wages7.1
Direct taxes0.1
Surplus4.9
Net output12.1
Net factor payments to the rest of the world 
Net domestic output12.1
Purchases of goods and services from sectors—
  Farming 
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining1.0
  Manufacturing, primary produce processing 
  Manufacturing, other3.6
  Building and construction11.0
  Public utilities0.9
  Transport and communications2.5
  Wholesale and retail trade1.1
  Banking and insurance0.2
  Public administration0.1
  Defence 
  Services0.1
  Households 
  Rest of the world4.3
Indirect taxes 
Depreciation1.1
      Total debits38.0

TRANSPORT AND COMMUNICATIONS ACCOUNT, 1952-53

£(million)

Credits
 Total
Sales of goods and services to sectors—
  Farming4.6
  Forestry and logging0.4
  Hunting, fishing, etc.0.1
  Mining1.6
  Manufacturing, primary produce processing5.5
  Manufacturing, other7.4
  Building and construction7.6
  Public utilities2.5
  Transport and communications6.9
  Wholesale and retail trade21.3
  Banking and insurance1.7
  Public administration1.2
  Defence1.0
  Services3.3
  Households19.1
  Rest of the world22.8
Other receipts from public administration—
  Subsidies0.6
  Charge on public revenue1.1
  Transfers 
Rates 
Capital formation19.2
Stock change0.1
      Total credits128.0
Debits
 Total
Salaries and wages47.9
Direct taxes2.0
Surplus9.1
Net output59.0
Net factor payments to the rest of the world 
Net domestic output59.0
Purchases of goods and services from sectors—
  Farming 
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining1.2
  Manufacturing, primary produce processing 
  Manufacturing, other23.3
  Building and construction4.9
  Public utilities0.2
  Transport and communications6.9
  Wholesale and retail trade7.5
  Banking and insurance1.1
  Public administration0.2
  Defence0.1
  Services0.9
  Households0.2
  Rest of the world15.1
Indirect taxes0.5
Depreciation6.9
      Total debits128.0

WHOLESALE AND RETAIL TRADE ACCOUNT, 1952-53

£(million)

Credits
 Total
Sales of goods and services to sectors—
  Farming20.6
  Forestry and logging0.3
  Hunting, fishing, etc.0.2
  Mining0.4
  Manufacturing, primary produce processing3.0
  Manufacturing, other10.0
  Building and construction10.7
  Public utilities1.1
  Transport and communications7.5
  Wholesale and retail trade1.1
  Banking and insurance2.1
  Public administration0.4
  Defence0.5
  Services2.5
  Households108.5
  Rest of the world18.3
Other receipts from public administration—
  Subsidies12.5
  Charge on public revenue 
  Transfers 
Rates 
Capital formation5.8
Stock change20.1
      Total credits225.6
Debits
 Total
Salaries and wages51.4
Direct taxes23.0
Surplus38.7
Net output113.1
Net factor payments to the rest of the world2.0
Net domestic output115.1
Purchases of goods and services from sectors—
  Farming0.2
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining 
  Manufacturing, primary produce processing 
  Manufacturing, other22.8
  Building and construction3.2
  Public utilities1.7
  Transport and communications21.3
  Wholesale and retail trade1.1
  Banking and insurance4.2
  Public administration0.5
  Defence 
  Services8.6
  Households3.5
  Rest of the world11-8
Indirect taxes26.7
Depreciation4.9
      Total debits225.6

BANKING AND INSURANCE ACCOUNT, 1952-53

£(million)

Credits
 Total
Sales of goods and services to sectors—
  Farming0.9
  Forestry and logging01
  Hunting, fishing, etc. 
  Mining0.3
  Manufacturing, primary produce processing0.4
  Manufacturing, other3.2
  Building and construction1.0
  Public utilities0.2
  Transport and communications1.1
  Wholesale and retail trade4.2
  Banking and insurance2.5
  Public administration1.4
  Defence 
  Services1.1
  Households9.1
  Rest of the world1.6
Other receipts from public administration—
  Subsidies0.7
  Charge on public revenue0.1
  Transfers 
Rates 
Capital formationl0.4
Stock change 
      Total credits38.3
Debits
 Total
Salaries and wages10.8
Direct taxes7.6
Surplus-11.5
Net output6.9
  Net factor payments from the rest of the world-0.6
Net domestic output6.3
Purchases of goods and services from sectors—
  Farming0.2
  Forestry and logging 
  Hunting, fishing, etc. 
  Mining0.1
  Manufacturing, primary produce processing0.2
  Manufacturing, other3.3
  Building and construction12.2
  Public utilities0.4
  Transport and communications1.7
  Wholesale and retail trade2.1
  Banking and insurance2.5
  Public administration0.6
  Defence 
  Services2.1
  Households3.8
  Rest of the world1.2
Indirect taxes 
 0.4
Depreciation1.2
      Total debits38.3
CreditsDebits
 
 
 
 
 
 
 
 Direct TaxationRatesIndirect TaxesTrading IncomePublic Debt InterestSales of Goods and ServicesTotal
Farming25.74.20.71.5 1.533.6
Forestry and logging0.2 0.10.3  0.6
Hunting, fishing, etc.0.2    0.10.3
Mining0.4  0.1 0.20.7
Manufacturing, primary produce processing21    0.32.4
Manufacturing, other12.80.632.90.1 0.346.7
Building and construction2.7 0.3  013.1
Public utilities0.1  1.5 0.11.7
Transport and communications2.0 6.50.7 0.23.4
Wholesale and retail trade21.11.626.70.1 0.550.0
Banking and insurance7.00.50.46.9 0.615.4
Public administration 0.1  1.5 1.6
Defence       
Services4.90.54.2- 0.2 0.39.7
Households55.14.31.5  1.662.5
Rest of the world   0.9 0.31.2
      Totals134.311.867.311.91.56.1232.9
Charge on public revenue      0.2
Capital formation      10.7
      Total credits      243.8
 Total
Salaries and wages14.0
Interest from the rest of the world0.7
Rates0.1
Net output14.8
Net factor payments from the rest of the world- 0.7
Net domestic output14.1
 Purchases of Goods and ServicesCharge on Public RevenueSubsidiesTransfers and Public Debt Interest 
Farming0.60.1  0.7
Forestry and logging 0.3  0.3
Hunting, fishing, etc. 0.9  0.9
Mining 0.20.1 0.3
Manufacturing, primary produce processing     
Manufacturing, other2.30.50.6 3.4
Building and construction0.323.4 0.424.1
Public utilities0.11.00.60.11.8
Transport and communications1.21.10.6 2.9
Wholesale and retail trade0.4 12.51.414.3
Banking and insurance1.40.10.710.512.7
Public administration 0.2 1.51.7
Defence 24.8  24.8
Services7.932.0 0.640.5
Households1.2  55.957.1
Rest of the world8.9  1.310.2
      Totals24.384.615.171.7195.7
Savings    34.0
      Total debits    243.8

DEFENCE ACCOUNT, 1952-53

Credits
 Total
Sales of goods and services to sectors—
Farming0.2
Forestry and logging 
Hunting, fishing, etc. 
Mining 
Manufacturing, primary produce processing 
Manufacturing, other 
Building and construction 
Public utilities 
Transport and communications0.1
Wholesale and retail trade 
Banking and insurance 
Public administration 
Defence 
Services 
Households1.7
Rest of the world0.1
Other receipts from public administration—
Subsidies 
Charge on public revenue24.8
Transfers 
Rates 
Capital formation 
Stock change 
      Total credits26.9
Debits
 Total
Pay and Allowances10.6
Direct taxes 
Surplus 
Net output10.6
Net factor payments to the rest of the world 
Net domestic output10.6
Purchases of goods and services from sectors—
Farming0.5
Forestry and logging 
Hunting, fishing, etc. 
Mining 
Manufacturing, primary produce processing 
Manufacturing, other3.3
Building and construction2.5
Public utilities01
Transport and communications1.0
Wholesale and retail trade0.5
Banking and insurance 
Public administration 
Defence 
Services0.3
Households0.1
Rest of the world8.0
Indirect taxes 
Depreciation 
      Total debits26.9

SERVICES ACCOUNT, 1952-53

Credits
 Total
Sales of goods and services to sectors—
Farming4.2
Forestry and logging0.1
Hunting, fishing, etc. 
Mining0.2
Manufacturing, primary produce processing0.2
Manufacturing, other4.8
Building and construction0.3
Public utilities0.1
Transport and communications0.9
Wholesale and retail trade8.6
Banking and insurance2.1
Public administration7.9
Defence0.3
Services17.7
Households60.5
Rest of the world2.1
Other receipts from public administration—
Subsidies 
Charge on public revenue32.0
Transfers0.3
Transfers from households0.7
Rates1.5
Capital formation10.4
Stock change0.6
      Total credits155.5
Debits
 Total
Salaries and wages50.0
Direct taxes5.5
Surplus25.0
Net output80.5
Net factor payments from the rest of the world- 0.2
Net domestic output80.3
Purchases of goods and services from sectors—
Farming2.4
Forestry and logging 
Hunting, fishing, etc.0.1
Mining0.6
Manufacturing, primary produce processing1.4
Manufacturing, other11.6
Building and construction13.8
Public utilities2.1
Transport and communications3.3
Wholesale and retail trade2.5
Banking and insurance1.1
Public administration0.3
Defence 
Services17.7
Households4.9
Rest of the world5.9
Indirect taxes4.2
Depreciation3.3
      Total debits153.5
CreditsDebits
 Salaries and WagesUnincorporated Business ProfitsInterestNet Rents ReceivedDividends ReceivedTotal
Factor receipts—      
Farming25.193.60.41.10.4120.6
Forestry and logging3.60.4 1.7 5.7
Hunting, fishing, etc.101.1   2.1
Mining4.80.4  0.15.3
Manufacturing, primary produce processing12.2   0.412.6
Manufacturing, other91.36.00.31.35.1104.0
Building and construction30.611.1 0.20.942.8
Public utilities71   0.17.2
Transport and communications47.96.1 0.10.754.8
Wholesale and retail trade51.416.10.31.98.378.0
Banking and insurance10.80.83.3 0.615.5
Public administration14.0    14.0
Defence10.6    10.6
Services50.023.20.21.40.875.6
Households1.8 0.318.9 21.0
Rest of the world  0.1 0.60.7
      Totals362.2158.84.926.618.0570.5
Transfers from public administration54.2
Public debt interest1.7
Sales of goods and services to sectors— 
Farming1.9
Forestry and logging 
Hunting, fishing, etc. 
Mining 
Manufacturing, primary produce processing 
Manufacturing, other2.4
Building and construction0.3
Public utilities 
Transport and communications0.2
Wholesale and retail trade3.5
Banking and insurance3.8
Public administration1.2
Defence0.1
Services4.9
Households11.4
Rest of the world1.4
Transfers from the rest of the world6.9
Capital formation32.9
      Total credits697.3
 Total
Salaries and wages1.8
Net rents18.9
Other factor payments12.3
Net output33.0
Net factor payments from the rest of the world- 0.7
Net domestic output32.3
Purchases of goods and services from sectors—
Farming20.1
Forestry and logging0.4
Hunting, fishing, etc.0.8
Mining1.8
Manufacturing, primary produce processing15-6
Manufacturing, other163.0
Building and construction37.2
Public utilities7.0
Transport and communications19.1
Wholesale and retail trade108.5
Banking and insurance9.1
Public administration1.6
Defence1.7
Services60.5
Households11-4
Rest of the world51.2
Transfers to— 
Services0.7
Rest of the world6.2
Indirect taxes1.5
Direct taxes55.1
Depreciation1.5
Savings91.0
      Total debits697.3
Credits (Exports and receipts for services)Debits (Imports and payments for services)
 Factor Receipts by SectorsSales of Goods and Services by SectorTotal
Farming 55.755.7
Forestry and logging   
Hunting, fishing, etc. 1.11.1
Mining 0.80.8
Manufacturing, primary produce processing 139.4139.4
Manufacturing, other0.114.414.5
Building and construction   
Public utilities   
Transport and communications0.122.822.9
Wholesale and retail trade0.518.318.8
Banking and insurance2.91.64.5
Public administration0.70.31.0
Defence 0.10.1
Services0.32.12.4
Households0.71.42.1
Rest of the world 1.61.6
      Totals5.3259.6264.9
Transfers to households  6.9
      Total credits  271.8
 Factor Payments from SectorsPurchases of Goods and Services by SectorsTransfers from SectorsTotal
Farming0.113.8 13.9
Forestry and logging 0.7 0.7
Hunting, fishing, etc. 0.1 0.1
Mining0.10.6 0.7
Manufacturing, primary produce processing0.44.9 5.3
Manufacturing, other4.4114.4 118-8
Building and construction 24.0 24.0
Public utilities 4.3 4.3
Transport and communications0.115.1 15.2
Wholesale and retail trade2.511.8 14.3
Banking and insurance2.31.2 3.5
Public administration 8.91.310.2
Defence 8.0 8.0
Services0.15.9 6.0
Households 51.26.257.4
Rest of the world 1.6 1.6
      Totals10.0266.57.5284.0
Stocks in transit- 7.0
Balance of payments on current account (net overseas investment)- 5.2
      Total debits271.8

CAPITAL ACCOUNT, 1952-53

SavingsInvestments
 Depreciation AllowancesUndistributed Company ProfitsSavingsTotal
Farming11.70.7- 6.16.3
Forestry and logging0.5  0.5
Hunting, fishing, etc.0.1  0.1
Mining1.20.1 1.3
Manufacturing, primary produce processing1.83.3 5.1
Manufacturing, other7.74.8 12.5
Building and construction2.83.0 5.8
Public utilities1.10.13.34.5
Transport and communications6.90.80.48.1
Wholesale and retail trade4.99.23.617.7
Banking and insurance1.21.6 2.8
Public administration  34.034.0
Defence    
Services3.30.8 4.1
Households1.5 91.092.5
      Totals44.724.4126.2195.3
      Total savings   195.3
 Capital FormationChanges in StocksTotal
Farming20.25.325.5
Forestry and logging2.0 2.0
Hunting, fishing, etc.0.1 0.1
Mining1.40.11.5
Manufacturing, primary produce processing4.11.96.0
Manufacturing, other23.914.438.3
Building and construction3.71.55.2
Public utilities18.50.218.7
Transport and communications19.20.119.3
Wholesale and retail trade5.820.125.9
Banking and insurance10.4 10.4
Public administration10.7 10.7
Defence   
Services10.40.611.0
Households32.9 32.9
      Totals163.344.2207.5
Rest of the world—
Balance of payments on current account (net overseas investment)  - 5.2
Adjustment for stocks in transit  - 7.0
      Total investments  195.3

29 C—BALANCE OF PAYMENTS

INTRODUCTORY.—The link between external economic transactions and the domestic economy is given by the net balance between all credits (exports and other current receipts) and all debits (imports and other current payments) and is called the balance of payments on current account. Irrespective of whether this balance is a surplus or a deficit, it evokes a corresponding movement in the country's claims or liabilities to residents of all other countries; a deficit on current account will increase this country's liabilities and decrease its claims on overseas residents, and a surplus will have the opposite effect. These capital movements can be summarized under the term of "net overseas disinvestment" and "net overseas investment" which are due to a deficit or surplus on current account respectively.

It is this net capital balance, net overseas investment (denoted with a minus sign in the case of a current deficit or capital disinvestment), which appears in the aggregative national income estimates (Section 29a, page 721). A current surplus or net overseas investment means in this context that a certain portion of the gross national product has been expended on or disposed of—in the same way as other portions of the gross national product are expended on private consumption, Government consumption, or the formation of new physical capital assets—to create a financial claim on nonresidents.

It should be noted that in this instance only the net balance is integrated into a system of national accounts. Another application of balance of payments accounts is to show gross figures—all credits and debits on current account—and allocate exports and other receipts from overseas together with imports and payments to overseas to the industry sectors concerned. The account which summarizes current sector transactions with other countries is the "Rest of the World" account (Section 29b, page 758), while the net balance—which is purely a change in financial claims or liabilities—finds its place in the capital account.

Finally, apart from its importance within the framework of social accounting, a balance of payments account, as a record of economic transactions with other countries, is an important set of economic statistics on its own merits. As an independent presentation it shows in detail various types of payments and receipts, it concerns itself with transactions by currency areas, presents its capital account on a gross basis in order that various classes of capital movements can be studied in isolation, and so forth.

The present series of balance of payments estimates is based on the principles adopted by successive manuals published by the International Monetary Fund, and is in conformity with the methods used in most overseas countries. The statement is divided into a current account and capital account, which are described below. It will be seen that the balances on both accounts are, by definition, of the same magnitude; the capital account shows how the surplus or deficit on current account was financed. For a more detailed description of statistical concepts and methods used in preparing balance of payments estimates, refer to the Report on the Official Estimates of Balance of Payments for the Year 1955-56, obtainable from the Government Printer, Wellington.

Current Account.—In very general terms, the current account shows the results of the year's trading with other countries when services as well as goods are included; and a credit balance in this account indicates that more has been sold to other countries than has been bought from them, thus increasing their indebtedness to New Zealand or reducing New Zealand indebtedness to them.

More strictly defined, the current account records all transactions other than those representing changes in the international creditor-debtor position. Every attempt is made to record transactions on a gross credit-debit basis rather than on the basis of net settlements. The current account includes both credits and debits in respect of merchandise, services (invisibles), as well as unilateral transfers (donations), and movements in monetary gold which, in essence, represent net additions to gold reserves. The difference between current credits and current debits is the balance of payments surplus (deficit) on current account; it is the measure of the extent to which a country does or does not live within its current income. It is the most significant datum emerging from a balance of payments compilation.

Capital Account.—The capital account records all known changes in claims on, or liabilities to, the rest of the world. Of the items comprising the capital account, the category of net overseas assets—the overseas exchange holdings of New Zealand's banking system—is most widely known and appreciated. Its importance lies in the fact that it records changes in overseas liquid resources which by their nature can be made immediately available for purposes of imports, public debt repayments, capital investments, etc. But within the confines of the balance of payments capital account the movement in net overseas assets is only one of several other capital movements with which it forms an integral part; it is the combination of all these capital changes which must be studied in order to understand the financing of the current surplus or deficit.

Attention is drawn to the item "Other short-term capital movements, including errors and omissions," which is a balancing residual in the capital account. Apart from certain inevitable errors of estimation and omissions due to incomplete information available, the above-mentioned item gives a valuable pointer to year to year changes in "leads and lags" of short-term commercial credit (time extensions or restrictions in credit facilities to New Zealand exporters or importers by overseas buyers or sellers) and other capital movements not explained elsewhere.

BALANCE OF PAYMENTS AND EXCHANGE RECORD.—There are several very important differences between a balance of payments statement and the statistics of overseas receipts and payments which are included in an exchange record, e.g.—

  1. The former attempts to show all economic transactions between residents of one country and residents of other countries, whereas the exchange record shows only transactions involving remittances:

  2. The import and export figures in the balance of payments are based on trade (Customs) statistics, which enable goods to be valued at a definite and uniform valuation boundary—viz., f.o.b. country of export or import; the exchange record, on the other hand, records remittances for imports and exports whenever these are made and without adhering to any valuation boundary (f.o.b. or c.i.f.). The result is a difference both in timing and valuation between the two statements:

  3. Whereas exchange statistics record net settlements resulting from a number of possible contra-entries or offsets, the balance of payments shows these transactions as far as possible on a gross basis.

Other differences arise from the fact that the balance of payments is constructed on a basis of country of origin for imports and country of destination for exports, country of residence of remittor or remittee, and nationality in the case of shipping companies, whereas the record of exchange transactions is based on the country of monetary settlement.

GENERAL.—The balance of payments is a record of economic transactions between residents and non-residents.

Residents are all persons living permanently in New Zealand (or for a period exceeding twelve months), subsidiaries and branches of overseas companies being treated as residents, while subsidiaries and branches of New Zealand companies operating overseas are regarded as residents of the country of their business.

In order to simplify the rather complex operations of overseas shipping companies, the shipping transactions of their branches in New Zealand (such as their receipts of freights, port disbursements, administrative expenses in New Zealand) are regarded as transactions of non-residents, by way of exception to the general rule stated above; on the other hand, their investment activity is included in the data on New Zealand Branches of Overseas Companies (page 781) and conforms to the general rule.

GEOGRAPHICAL DIVISION.—The regional break-up of the balance of payments is on a geographical (as distinct from a currency) basis. This means that it is not the currency in which any economic transaction is settled but the nationality of New Zealand's immediate partner in the transaction which determines in which regional column the transaction is recorded. Any exception to this rule is due to statistical necessity—insufficiency of basic data, etc.—rather than choice.

The New Zealand figures include transactions of New Zealand's dependent Island Territories and the Trust Territory of Western Samoa.

The following geographical division of other areas has been chosen in order to group together countries whose currencies are of particular economic interest.

Other Sterling Countries.—Other Commonwealth countries (excluding Canada and Newfoundland) and their trustee and dependent territories; the colonies, protectorates, and trustee territories, etc., of the United Kingdom; the Republic of Ireland, Burma, Iraq, and Iceland.

U.S.A. and Canada.—The United States of America, including its possessions, and Canada, including Newfoundland.

Other Dollar Countries.—All Central American Republics; Cuba, Haiti, Dominican Republic; Colombia, Venezuela, Ecuador, Bolivia; the Philippine Islands.

O.E.E.C. Countries.—These are the member countries of the Organization for European Economic Co-operation—France, Italy, Belgium, Luxemburg, Netherlands, Sweden, Norway, Denmark, Switzerland, Portugal, Austria, Greece, Turkey, West German Federal Republic, and Trieste, together with their dependent overseas territories.

Other Countries.—All countries not included in any other group.

ACCOUNTING PERIOD.—All estimates are for financial years ending 31 March.

SUMMARY TABLES, CURRENT AND CAPITAL ACCOUNTS—The following table summarizes current transactions with all countries. The figures shown in the credit, debit, and net balance columns are the same as those appearing in the "Total, All Countries" columns in the current account tables on pages 764-774.

£(N.Z.)000

Current Account1950-511951-521952-531953-541954-551955-56
Credits
Exports f.o.b.203,750251,800241,550247,100237,050261,100
Monetary gold900900200150  
Transportation5,9005,45011,35010,5509,15011,550
Travel1,3001,5501,8001,7501,9502,450
Insurance4501,100450400150150
International investment income—
  Income from direct investment1,8502,0001,6501,9502,1501,950
  Other private investment1,7501,9001,7002,1502,5501,750
  Government and official institutions5001,3001,9503,2502,7003,200
  Local authority interest      
      Totals4,1005,2005,3007,3507,4006,900
Government transactions—
  Government expenditure400600350600550600
  New Zealand Government receipts1,1003001,100600450800
      Totals1,5009001,4501,2001,0001,400
Miscellaneous receipts2,4503,0503,7002,5002,8004,000
Unilateral transfers—
  Personal remittances and other donations and transfers2,1503,0503,3502,9503,7003,650
  Migrants' funds2,0003,1002,4501,7001,5502,150
  Legacies9001,3001,1009001,2001,300
      Totals5,0507,4506,9005,5506,4507,100
      Total credits225,400277,400272,700276,550265,950294,650

£(N.Z.)000

Current Account1950-511951-521952-531953-541954-551955-56

Minus (-) sign denotes excess of imports over exports or payments over receipts.

Debits
Imports f.o.b.146,050237,450208,700181,500228,800249,050
Monetary gold      
Transportation16,10031,35028,10019,80027,40029,600
Travel5,3505,9504,8004,7005,9006,600
Insurance550500600750800800
International investment income—
  Income from direct investment7,6505,9507,40010,45011,4009,950
  Other private investment1,2003,2002,5505501,7501,500
  Government and official institutions2,5002,5002,5002,4503,0003,250
  Local authority interest250200200200200300
      Totals11,60011,850 12,650 13,65016,35015,000
Government transactions—
  New Zealand Government expenditure3,8006,6009,10012,3009,0006,750
      Totals3,8006,6009,10012,3009,0006,750
Miscellaneous payments3,2004,7505,2505,5505,9507,500
Films6006007508007501,000
Unilateral transfers—
Government contribution to Colombo Plan 1,0001,0001,0001,0001,000
Personal remittances and other donations and transfers2,9003,0503,4504,6504,3003,400
Migrants' funds3,4502,3001,9502,5003,1503,200
Legacies1,3501,1501,1001,3001,5001,350
      Totals7,7007,5007,5009,4509,9508,950
      Total debits194,950306,550277,450248,500304,900325,250
Net Balance
Merchandise transactions f.o.b.57,70014,35032,85065,6008,25012,050
Monetary gold900900200150  
Transportation- 10,200- 25,900- 16,750- 9,250- 18,250- 18,050
Travel- 4,050- 4,400- 3,000- 2,950- 3,950- 4,150
Insurance- 100600- 150- 350- 650- 650
International investment income- 7,500- 6,650- 7,350- 6,300- 8,950- 8,100
Government transactions- 2,300- 5,700- 7,650- 11,100- 8,000- 5,350
Miscellaneous receipts and payments- 750- 1,700- 1,550- 3,050- 3,150- 3,500
Films- 600- 600- 750- 800- 750- 1,000
Unilateral transfers- 2,650- 50- 600- 3,900- 3,500- 1,850
      Balance on current account30,450- 29,150- 4,75028,050- 38,950- 30,600

The next table repeats the balance of payments current account on a net basis (by offsetting credits against debits in respect of corresponding groups of items) and by countries or currency regions.

£(N.Z.)000

Current Account (Net)United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries

Minus (-) sign denotes excess of imports over exports or payments over receipts.

1950-51
Merchandise transactions43,700- 22,80011,400- 50022,0003,80057,700
Monetary gold      900
Transportation- 9,600200- 400 200- 200- 10,200
Travel- 2,700- 1,25050 50 - 4,050
Insurance- 250150    - 100
International investment income- 5,450- 450- 1,550 50- 50- 7,500
Government transactions- 1,250- 850300 100 - 2,300
Miscellaneous- 5050- 550 5050- 750
Films- 50100- 450   - 600
Unilateral transfers750- 3,00050 - 100- 350- 2,650
      Balance on current account25,100- 28,1508,150- 50021,7503,15030,450
1952-53
Merchandise transactions52,800- 29,6502,450508,900- 1,75032,850
Monetary gold      200
Transportation- 14,9502,300500 - 3,100- 1,500- 16,800
Travel- 2,600- 30050 50 - 3,000
Insurance- 200 50   - 150
International investment income- 6,000- 550- 800 150- 100- 7,350
Government transactions- 4,600- 2,100- 1,050 5050- 7,650
Miscellaneous250- 300- 1,000 400- 100- 1,550
Films- 100150500   - 750
Unilateral transfers1,750- 1,850150 400- 250- 600
      Balance on current account26,350- 32,600- 250505,150- 3,650- 4,750
1953-54
Merchandise transactions61,200- 28,5504.7005024,6003,60065,600
Monetary gold      150
Transportation- 7,150200- 250 - 1,650- 400- 9,250
Travel- 2,650- 250  50 - 2,950
Insurance- 350100- 150  50- 350
International investment income- 3,400- 250- 3,100 200250- 6,300
Government transactions- 7,500- 3.400- 350 10050- 11,100
Miscellaneous- 800- 750- 1,150 300- 50- 3,050
Films- 150100- 550   - 800
Unilateral transfers450- 2,100150 - 1,900- 500- 3,900
      Balance on current account39.650- 35,100- 7005021,0003,00028,050
1954-55
Merchandise transactions24,500- 32,850- 4,05035018,1002,2508,250
Monetary gold       
Transportation- 14.550- 150- 1,250 - 1,800- 550- 18,250
Travel- 3,050- 650100 - 50 - 3,950
Insurance- 450- 300100   - 650
International investment income- 7,150- 300- 1,700 100150- 8,950
Government transactions- 4,600- 3.200- 400 50150- 8,000
Miscellaneous- 400- 1,200- 1,200 - 300- 50- 3,150
Films- 150- 100- 500   - 750
Unilateral transfers450- 3,050200 - 500- 600- 3,500
      Balance on current account- 5,400- 41,800- 8,90035015,6001,350- 38,950
1955-56
Merchandise transactions29,400- 35,700- 6,40075022,3501,70012,050
Monetary gold       
Transportation- 14,65050- 650 - 1,750- 1,050- 18,050
Travel- 3,550- 400- 50 - 100- 50- 4,150
Insurance- 6005050  - 50- 650
International investment income- 5,050100- 3,200 50 - 8,100
Government transactions- 2,650- 2,400- 200 50- 150- 5,350
Miscellaneous- 1,050- 650- 1,200 - 550- 50- 3,500
Films- 150- 150- 700   - 1,000
Unilateral transfers1,250- 2.55050 - 250- 350- 1,850
      Balance on current account2.950- 41,650- 12,40075019,800 - 30,600

The consolidated capital account shown below summarizes capital transactions with all countries; it consists of the "Total, All Countries" column of the capital account tables on pages 770-775, but some of the items are presented in simplified form (by adding or off-setting capital movements where these have occurred in respect of equally defined items).

£(N.Z.)000

Capital Account1950-511951-521952-531953-541954-551955-56

Minus (-) sign denotes a decrease in assets or liabilities.

Increase in Assets
Long-term capital (private)—
New Zealand direct investment overseas1,5509001,0001,7501,650900
Other long-term capital movements- 3,950- 1,750- 4,900   
Long-term capital (Government)—
Government investments7,0005,600- 2,5004,5003,700200
Long-term capital (official and banking institutions)—
New Zealand Wool Commission  3,000150100100
Investments in United Kingdom-Dominion Wool Disposals Ltd.4,350- 800    
Wool credit to France100     
Wool credit to Czechoslovakia65050  - 1,000 
Short-term capital (Government)—      
Government cash balances- 100- 50350750- 350- 400
Short-term capital (official and banking institutions)—
Net overseas assets25,600- 21,00023,15027,100- 24,800- 9,450
Monetary gold900900200150  
Other short-term capital movements, including errors and omissions   8,3008,350 
      Total increase in assets36,100- 16,15020,30042,700- 12,350- 8,650
Increase In Liabilities
Long-term capital (private)—
Overseas direct investment in New Zealand6,70012,4009,6501,60012,50011,200
Other long-term capital movements    2,8002,900
Long-term capital (Government)—
Public debt- 1,000  12,45011,600850
Local authority debt- 450- 100- 50- 150- 450 
Short-term capital (Government)—
Other than cash balances 250500750150550
Other short-term capital movements, including errors and omissions40045014,950  6,450
      Total increase in liabilities5,65013,00025,05014,65026,60021,950
Net Balance
Balance on capital account30,450- 29,150- 4,75028,050- 38,950- 30,600

MERCHANDISE TRANSACTIONS: Exports.—The source of the export tables is Customs information on total exports (exclusive of ships' stores) at f.o.b. valuation; exports from New Zealand to Western Samoa have been excluded from Customs figures, but exports from Western Samoa and Cook Islands to other countries have been added to New Zealand totals. The remaining adjustments are for items which are either entirely omitted from Customs statistics (relief supplies, ships and aircraft sold and leaving under their own power), items where the valuation requires correction (parcel post, cheese export values, operation of United Kingdom - Dominion Wool Disposals Ltd.), and items which are accounted for elsewhere in the balance of payments (export of gold).

£(N.Z.)000

ExportsUnited KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries
1953-54
Exports f.o.b. (excluding ships' stores and exports to Western Samoa)164,20012,85019,80090036,8508,800243,400
  Plus adjustment for parcel post15020050   400
  Plus adjustment for relief supplies50100  250250650
  Plus exports from Cook Islands and Western Samoa1,050100400   1,550
  Plus exports of ships' stores and bunkers90050  50501,050
  Plus sale of vessels and aircraft 50    50
Exports (adjusted) f.o.b.166,35013,35020,25090037,1509,100247,100
1954-55
Exports f.o.b. (excluding ships' stores and exports to Western Samoa)154,95013,45017,30095038,0508,600233,300
  Plus adjustment for parcel post15020050   400
  Plus adjustment for relief supplies50200  150150550
  Plus exports from Cook Islands and Western Samoa1,350150150 50 1,700
  Plus exports of ships' stores and bunkers90050  100 1,050
  Plus sale of vessels and aircraft50     50
Exports (adjusted) f.o.b.157,45014,05017,50095038,3508,750237,050
1955-56
Exports f.o.b. (excluding ships' stores and exports to Western Samoa)166,05014,45022,05080042,50011,150257,000
  Plus adjustment for parcel post10015050   300
  Plus adjustment for relief supplies 200  150200550
  Plus exports from Cook Islands and Western Samoa1,400150450 50 2,000
  Plus exports of ships' stores and bunkers1,10050  50501,250
Exports (adjusted) f.o.b.168,65015,00022,55080042,75011,400261,100

Imports.—The basic figures in the import tables also originate in Customs statistics. New Zealand imports from Western Samoa have been excluded from the Customs figures, but imports into Cook Islands and Western Samoa from other countries have been added. Besides additions for aircraft and ships arriving in New Zealand under their own power, there is a deduction for notional import values of commercial films; remittances of film rentals which express more exactly the cost of films to this country are substituted for the latter.

It is necessary to comment here on the valuation method adopted for imports. Balance of payments accounts treat freight and marine insurance payments on imports—as far as they are made to non-residents—as invisible payments. As a result, merchandise transactions are shown on a f.o.b. valuation basis for imports and exports alike. This method of treatment has many advantages, and international comparability of merchandise movements is one of them.

There is, however, no provision in New Zealand statistics for a f.o.b. valuation of imports; all imports—as distinct from exports which have always been valued f.o.b.—are valued on the basis of "current domestic value," and only lately has a c.i.f. valuation been introduced. Evidence suggests that f.o.b. values are, on the average, higher than current domestic values as defined by the Customs Department. Packing and transport charges from warehouse to port in exporting countries and buying commissions would account for the greater portion of the difference. This difference has been estimated from all the data at present available and added to c.d.v. Customs figures.

£(N.Z.)000

ImportsUnited KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries
1953-54
Imports F.o.b. (excluding imports from Western Samoa)101,65041,70015,55085012,4005,450177,600
  Plus imports of vessels and aircraft3,250   100 3,350
  Plus imports into Cook Islands and Western Samoa350350150 5050950
  Less imports of cinematographic films- 100- 150- 150   400
Imports (adjusted) f.o.b.105,15041,90015,55085012,5505,500181,500
1954-55
Imports f.o.b. (excluding imports from Western Samoa)131,90046,60021,75060020,2506,400227,450
  Plus imports of vessels and aircraft800     800
  Plus imports into Cook Islands and Western Samoa400450150 501001,250
Less imports of cinematographic films- 150- 150- 350 - 50 700
Imports (adjusted) f.o.b.132,95046,90021,55060020,2506,500228,800
1955-56
Imports f.o.b. (excluding imports from Western Samoa)137,60050,35029,0505020,2009,600246,850
Plus imports of vessels and aircraft1,250   150 1,400
Plus imports into Cook Islands and Western Samoa500500200 501001,350
Less imports of cinematographic films- 100- 150- 300   - 550
Imports (adjusted) f.o.b.139,25050,70028,9505020,4009,700249,050

REGIONAL ACCOUNTS.—The tables on the following pages give detailed figures relating to the overall current and capital accounts in the balance of payments as well as particulars for each of the main countries and currency regions. The accounts are presented for the financial years 1952-53 to 1954-55, and each year's account is divided into current credits (gross), current debits (gross), and the capital account.

Current credits.—The item monetary gold represents the purchase by the Reserve Bank of gold produced in this country. Transportation represents mainly port disbursements (exclusive of bunkers and provedoring) of overseas shipping companies operating in New Zealand; their establishment expenses, however, are included in miscellaneous receipts. The regional break-up of travel receipts is subject to revision; at present it is still shown on the basis of currency received rather than residence (nationality) of traveller. The all countries total is, however, not affected. International investment income consists of net (after overseas taxes) earnings of New Zealand companies operating overseas, irrespective of whether these have been remitted to New Zealand or reinvested overseas.

Current Debits.—Transportation consists mainly of freight and marine insurance on imports paid to non-resident shipping companies and port disbursements by New Zealand companies overseas and charters. Travel is exclusive of fares paid in New Zealand which are included in the transportation account. International investment income is based on total earnings of overseas companies operating in New Zealand, irrespective of whether these are remitted or re-invested in New Zealand. (Refer also to table on page 776—Summary of Overseas Direct Investment in New Zealand.) The item films represents film rentals of commercial films exhibited in New Zealand. Unilateral transfers is the general term for donations or transactions where there is no quid pro quo, as would be the case with merchandise transactions or the rendering of services; the item in the tables consists both of monetary payments as shown in the exchange record and Government and private supplies in kind, such as the estimated value of gift parcels, relief supplies, etc. Migrants' funds and legacies are included in the same group because, from a country's point of view, there is no "consideration" in the ordinary meaning of the word.

Capital Account.—As mentioned in the introductory notes, it is the purpose of the Capital Account to explain how the current surplus or deficit has been financed or, in other words, what changes have occurred to various overseas assets and liabilities (long term, short term, gold reserves) to account for the balance on current account. The tables are largely self-explanatory, but one or two points require mention. The item net overseas assets (of official and banking institutions) is shown in the column of the United Kingdom, although this is not strictly correct. Gross overseas assets and gross overseas liabilities of the Reserve Bank and trading banks arising out of New Zealand business are to a small extent owned or due in currencies other than sterling. At present it has been found impossible to separate movements in other than net sterling assets, but the resulting error is believed to be not very significant. There is another point in connection with this item which should be explained: Net overseas assets are shown here under the description of "Short-term capital and monetary gold—official and banking institutions". It is well known, of course, that a portion of what is commonly known as sterling exchange is held in the form of investments in United Kingdom stock or short-dated United Kingdom Government paper; these are purchased or sold according to whether there is need for liquidity or not. It is largely a matter of interpretation whether these investments should be treated as short term or long term. The treatment accorded to the item in the table is largely one of convenience.

Attention is drawn to the items "Other short-term capital movements (including errors and omissions)" and "Multilateral transfers". At the present stage of the Department's investigation it is impossible to separate the two items on an area by area basis, and they are bracketed together. They are shown in one figure in the regional columns, and are merely the residual between the balance on capital account for each area and the capital items which are estimated and shown separately in the same area column.

In the way in which these are shown in the regional columns, they represent—(a) short-term capital movements between each respective area and New Zealand, (b) multilateral transfers—i.e., the differences between current account transactions between New Zealand residents and the residents of the respective areas and the movement of financial assets or liabilities in the same area. To give an example, a difference of this kind would arise in the following instance: New Zealand imports of oil from, say, Indonesia may be settled by a remittance to the United Kingdom. While the Current Account between New Zealand and Indonesia (included in the regional column "Other countries") would show a debit in that column, the decrease in our overseas assets (from which the payment is made) is shown in the column for the United Kingdom. The purpose of the multilateral transfer entry is to credit the Capital Account of the United Kingdom, and debit the Capital Account of the "Other countries" column, in order to compensate the divergent movement in the Current and Capital Accounts.

Because all multilateral transfers, as included in the area columns, necessarily cancel each other out, the entry for multilateral transfers in the "Total, All Countries" column is nil; the amount shown in this column represents other short-term capital movements (including errors and omissions) only. Although this entry is a residual balancing item, it is believed to be a fair indicator of movements in short-term commercial credit such as would be caused by timing changes in payments for exports and imports (a shift towards shorter-dated or longer-dated bills or any other change in credit facilities in respect of imports or exports). No great significance need be attached to this entry when it is small, but the marked increase which is shown for the year 1952-53 would point to a definite inflow of this type of short-term capital.

REGIONAL BALANCE OF PAYMENTS 1953-54

A. CURRENT ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries
Credits
Exports f.o.b.166,35013,35020,25090037,1509,100247,100
Monetary gold      150
Transportation8,9501,000250 20015010,550
Travel6001,000150   1,750
Insurance100250   50400
International investment income—
(a) Income from direct investment overseas5001,150100 1001001,950
(ft) Other private investment income1,400450150  1502,150
(c) Interest on investments of Government and official institutions.3,000100  150 3,250
Government transactions—
(a) Expenditure by foreign governments in New Zealand400 50 10050600
(b) New Zealand Government current receipts from overseas150350100   600
Miscellaneous receipts1,600450400 50 2,500
Unilateral transfers—
(a) Personal remittances and other donations and transfers1,650900350 50 2,950
(b) Immigrants' funds1,35025050 50 1,700
(c) Legacies65020050   900
      Total credits186,70019,45021,90090037,8509,600276,550
Debits
Imports f.o.b.105,15041,90015,55085012,5505,500181,500
Transportation16.100800500 1,85055019,800
Travel3,2501,250150 50 4,700
Insurance450150150   750
International investment income—
(a) Income from direct investment in New Zealand5,6501.9502,800 50 10,450
(b) Other private investment income  550   550
(c) Interest on Government debt2,450     2,450
(d) Interest on local authority debt200     200
Government transactions—
Current Government expenditure8,0503,750500   12,300
Miscellaneous payments2,4001,2001,550 350505,550
Films150100550   800
Unilateral transfers—
(a) Government contribution to Colombo Plan 1,000    1,000
(b) Personal remittances and other donations and transfers1,0001,100100 1,9505004,650
(c) Emigrants' funds1,400900150 50 2,500
(d) Legacies80045050   1,300
      Total debits147,05054,55022,60085016,8506,600248,500
Balance on current account (surplus +; deficit -)+ 39,650- 35,100- 700+ 50+ 21,000+ 3,000+ 28,050

B. CAPITAL ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar Countries
Increase inIncrease inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long-term capital (private)—
Overseas direct investment in New Zealand 1,650 - 500 500  
New Zealand direct investment overseas1,200 650 - 250   
Other long-term capital movements- 1,000- 50550- 350- 50- 100  
Long-term capital (Government)—
Government investments4,550 - 50     
Public debt 10,000 2,450    
Local authority debt - 150      
Long-term capital (official and banking institutions)—
New Zealand Wool Commission150       
Wool credit to France        
Wool credit to Czechoslovakia        
Short-term capital (Government)—
Government cash balances850 - 50 - 50   
Other   750    
Short-term capital and monetary gold (official and banking institutions)—
Net overseas assets27,100       
Monetary gold        
Other short-term capital movements (including errors and omissions)18,250  33,85050 50 
Multilateral transfers
      Balance on capital account+ 39,650- 35,100- 700+ 50
O.E.E.C. CountriesOther CountriesTotal, All Countries
Increase inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long term capital (private)—
Overseas direct investment in New Zealand - 100   1,600
New Zealand direct investment overseas50 100 1,750 
Other long-term capital movements    - 500- 500
Long-term capital (Government)—
Government investments    4,500 
Public debt     12,450
Local authority debt     - 150
Long-term capital (official and banking institutions—
New Zealand Wool Commission    150 
Wool credit to France      
Wool credit to Czechoslovakia      
Short-term capital (Government)—
Government cash balances    750 
Other     750
Short-term capital and monetary gold (official and banking institutions)—
Net overseas assets    27,100 
Monetary gold    150 
Other short-term capital movements (including errors and omissions)20,850 2,900 8,300 
Multilateral transfers  
      Balance on capital account+ 21,000+ 3,000+ 28,050

Regional Balance of Payments 1954-55

A. CURRENT ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries
Credits
Exports f.o.b.157,45014,05017,50095038,3508,750237,050
Monetary gold       
Transportation6,8501,800250 1501009,150
Travel7501,050200   1,950
Insurance 50100   150
International investment income—
(a) Income from direct investment overseas4501,300300 501002,150
(b) Other private investment income8501,300350 50 2,550
(c) Interest on investments of Government and official institutions2,500   150502,700
Government transactions—
(a) Expenditure by foreign governments in New Zealand15010050 100150550
(b) New Zealand Government current receipts from overseas50200200   450
Miscellaneous receipts1,900600200 100 2,800
Unilateral transfers—
(a) Personal remittances and other donations and transfers2,2001,050400 50 3,700
(b) Immigrants' funds1,100300100 50 1,550
(c) Legacies850200100 50 1,200
      Total credits175,10022,00019,75095039,1009,150265,950
Debits
Imports f.o.b.132,95046,90021,55060020,2506,500228,800
Transportation21,4001,9501,500 1,95065027,400
Travel3,8001,700300 50 5,900
Insurance450350    800
International investment income—
(a) Income from direct investment in New Zealand6,6502,6502,050 50 11,400
(b) Other private investment income1,100250300 100 1,750
(c) Interest on Government debt3,000     3,000
(d) Interest on local authority debt200     200
Government transactions—
Current Government expenditure4,8003,500650 50 9,000
Miscellaneous payments2,3001,8001,400 400505,950
Films150100500   750
Unilateral transfers—
(a) Government contribution to Colombo Plan 750   2501,000
(b) Personal remittances and other donations and transfers1,2002,000150 6003504,300
(c) Emigrants' funds1,7001,250150 50 3,150
(d) Legacies800600100   1,500
      Total debits180,50063,80028,65060023,5007,800304,900
Balance on current account (surplus +; deficit -)- 5,400- 41,800- 8,900+ 350+ 15,600+ 1,350- 38,950

The following diagram shows New Zealand's balance of payments by Monetary Areas for the five years 1951-52 to 1955-56.

NOTE: IN SOME INSTANCES BALANCES WITH CERTAIN AREAS ARE TOO SMALL TO REGISTER ON THE DIAGRAM

B. CAPITAL ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar Countries
Increase inIncrease inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long term capital (private)—
Overseas direct investment in New Zealand 8,750 1,400 1,750  
New Zealand direct investment overseas50 1,250 300   
Other long-term capital movements- 1,0502,000- 50- 40050100  
Long-term capital (Government)—
Government investments2.300 - 50 1,450   
Public debt 10,000 1,600    
Local authority debt - 450      
Long-term capital (official and banking institutions)—
Investment in United Kingdom-Dominion Wool Disposals Ltd.100       
Wool credit to France        
Wool credit to Czechoslovakia        
Short-term capital (Government)—
Government cash balances- 500 200 - 50   
Other   150    
Short term capital and monetary gold (official and banking institutions)—
Net overseas assets- 24,800       
Monetary gold        
Other short-term capital movements (including errors and omissions)38,800  40,400 8,700350 
Multilateral transfers
      Balance on capital account- 5,400- 41,800- 8,900+ 350
O.E.E.C. CountriesOther CountriesTotal, All Countries
Increase inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long-term capital (private)—
Overseas direct investment in New Zealand 600   12,500
New Zealand direct investment overseas50   1,650 
Other long-term capital movements - 50  - 1,1501,650
Long-term capital (Government)—
Government investments    3,700 
Public debt     11,600
Local authority debt     - 450
Long-term capital (official and banking institutions)—
Investment in United Kingdom - Dominion Wool Disposals Ltd.    100 
Wool credit to France      
Wool credit to Czechoslovakia  - 1,000 - 1,000 
Short-term capital (Government)—
Government cash balances    - 350 
Other     150
Short term capital and monetary gold (official and banking institutions)—
Net overseas assets    - 24,800 
Monetary gold      
Other short-term capital movements (including errors and omissions)16,100 2,250 8,350 
Multilateral transfers  
      Balance on capital accounts+ 15,600+ 1,250- 38,950

Regional Balance of Payments 1955-56

A. CURRENT ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar CountriesO.E.E.C. CountriesOther CountriesTotal, All Countries
Credits
Exports f.o.b.168,65015,00022,55080042,75011,400261,100
Monetary gold       
Transportation9,5001,450200 25015011,550
Travel8501,350250   2,450
Insurance 200- 50   150
International investment income—
(a) Income from direct investment overseas5501,200200   1,950
(b) Other private investment income6501,150- 50   1,750
(c) Interest on investments of Government and official institutions3,050   150 3,200
Government transactions—
(a) Expenditure by foreign governments in New Zealand150150100 15050600
(6) New Zealand Government current receipts from overseas450200150   800
Miscellaneous receipts2,70095030050  4,000
Unilateral transfers—
(a) Personal remittances and other donations and transfers2,2501,000350 50 3,650
(b) Immigrants' funds1,60045050 50 2,150
(c) Legacies95030050   1,300
      Total credits191,35023,40024,10080043,45011,600294,650
Debits
Imports f.o.b.139,25050,70028,9505020,4009,700249,050
Transportation24,1501,400850 2,0001,20029,600
Travel4,4001,750300 100506,600
Insurance600150   50800
International investment income—
(a) Income from direct investment in New Zealand5,0001,9002,950 100 9,950
(b) Other private investment income750350400   1,500
(c) Interest on Government debt3,250     3,250
(d) Interest on local authority debt300     300
Government transactions—
Current Government expenditure3,2502,750450 1002006,750
Miscellaneous payments3,7501,6001,500 600507,500
Films150150700   1,000
Unilateral transfers—
(a) Goverment contribution to Colombo Plan 1,000    1,000
(b) Personal remittances and other donations and transfers1,3001,400100 2503503,400
(c) Emigrants' funds1,4501,450200 100 3,200
(d) Legacies800450100   1,350
      Total debits188,40065,05036,5005023,65011,600325,250
Balance on current account (surplus +; deficit -)+ 2,950- 41,650- 12,400+ 750+ 19,800 - 30,600

B. CAPITAL ACCOUNT

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaOther Dollar Countries
Increase inIncrease inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long-term capital (private)—
(a) Overseas direct investment in New Zealand 8,350 1,300 1,700  
(b) New Zealand direct investment overseas50 400 400   
(c) Other long - term capital movements- 1,4501,800- 400- 1,250- 250200  
Long-term capital (Government)—
(a) Government investments200       
(b) Public debt 700 150    
(c) Local authority debt        
Long-term capital (official and banking institutions)—
New Zealand Wool Commission100       
Short-term capital (Government)—
(a) Government cash balances  - 400     
(b) Other   550    
Short-term capital and monetary gold (official and banking institutions)—
(a) Net overseas assets- 9,450       
(b) Monetary gold        
Other short - term capital movements (including errors and omissions)24,350  40,500 10,650750 
Multilateral transfers
Balance on capital account+ 2,950- 41,650- 12,400+ 750
O.E.E.C. CountriesOther CountriesTotal, All Countries
Increase inIncrease inIncrease in
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Long-term capital (private)—
(a) Overseas direct investment in New Zealand - 150   11,200
(b) New Zealand direct investment overseas50   900 
(c) Other long-term capital movements- 50   - 2,150750
Long-term capital (Government)—
(a) Government investments    200 
(b) Public debt     850
(c) Local authority debt      
Long-term capital (official and banking institutions)—
New Zealand Wool Commission    100 
Short-term capital (Government)—
(a) Government cash balances    - 400 
(b) Other     550
Short-term capital and monetary gold (official and banking institutions)—
(a) Net overseas assets    - 9,450 
(b) Monetary gold      
Other short-term capital movements (including errors and omissions)19,650    6,450
Multilateral transfers 
      Balance on capital account+ 19,800 - 30,600

SURVEY OF COMPANIES WITH OVERSEAS AFFILIATIONS.—The picture of international capital movements would be incomplete without the consideration of investment flows originating with private commercial firms. While such investment takes place in response to usual economic motivations, its effect on a country's balance of payments differs in no respect from other capital movements, such as Government lending or borrowing abroad, investment or repatriation of assets from abroad by private individuals, etc.

The type of investment referred to here is that defined as direct private investment. Subsidiaries under control of an overseas company, branches of overseas companies, companies where the majority of shareholders reside overseas, or any other companies where overseas shareholders exercise a controlling interest, fall under this category. The question of control is decided in some cases on the strength of the parent company's holdings (a 25 per cent holding of the subsidiary's ordinary share capital is deemed as the qualifying minimum), in others on the actual circumstances of the case. The same criteria apply for direct investment by New Zealand companies and residents overseas.

Direct investment flows assume various forms: they may be by remittances of cash, the provision of plant, machinery, or goods without corresponding payment, charging up services rendered by the parent company, the reinvestment in New Zealand of undistributed profits, or the partial remittance only of declared dividends and branch earnings. The inclusion of undistributed profits may require some explanation: the remittance abroad of the whole of the current year's earnings, or any portion of them, involves, where no statutory constraints exist on remittances of current profits, a decision to invest which is in every respect equal to a decision to bring additional investment capital into the country, or abstain from doing so. By treating, as already mentioned previously, total New Zealand earnings of subsidiaries and branches as a current account debit or payment to the rest of the world, the unremitted portions of such earnings are treated as an inflow of investment capital which, together with other forms of investment capital (cash, goods, services), make up the total of private direct investment item in the capital account (see tables on pages 770-775).

The information tabulated in the following tables is based on an annual survey of companies with overseas affiliations in which the companies report on the distribution of paid-up capital and its changes, dividends and dividend remittances, intercompany accounts with the parent company or affiliated company and head office accounts in the case of branches.

It should be noted that investment figures given in the following three tables are in terms of annual changes at current prices. The total worth of direct investment assets is extremely difficult to establish in view of the fact that book values may bear little relationship to what such investments would realize on sale; annual changes on the other hand are capable of precise expression, and define exactly their relationship to other capital movements.

Overseas Private Direct Investment in New Zealand.—Data on overall private direct investment in New Zealand are shown in the following table. The figures are totals reflecting investment changes in firms resident in New Zealand and controlled from overseas irrespective of their legal organization. They include therefore subsidiaries incorporated in New Zealand, companies incorporated in New Zealand which have a majority of shareholders resident overseas or are controlled by individuals resident overseas, and New Zealand branches of overseas companies.

The figures shown in the country or regional area columns refer to the country of incorporation of the New Zealand firm's parent company, head office, or associate company from which the investment flow originates, or the country of residence of individual shareholders who either individually or collectively hold a majority interest in the New Zealand company or who exercise de facto control.

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaO.E.E.C. CountriesTotal, All Countries

* Provisional estimates.

1951-52
Form of investment increase—
  Increase in paid-up capital52010310 840
  Increase in net branch assets and intercompany indebtedness7,4701,0301,25043010,180
  Increase in reserves910630- 150- 101,380
      Total increase in investment8,9001,6701,41042012,400
1952-53
Form of investment increase—
  Increase in paid-up capital5502201,560 2,330
  Increase in net branch assets and intercompany indebtedness2,9404101,540204,910
  Increase in reserves1,290420720 2,430
      Total increase in investment4,7801,0503,820209,670
1953-54
Form of investment increase—
  Increase in paid-up capital1,070360 401,470
  Increase in net branch assets and intercompany indebtedness- 1,210- 1,260- 980- 150- 3,600
  Increase in reserves1,8004201,500 3,720
      Total increase in investment1,660- 480520- 1101,590
1954-55
Form of investment increase—
  Increase in paid-up capital64027040 950
  Increase in net branch assets and intercompany indebtedness6,060- 609105407,450
  Increase in reserves2,0401,210820404,110
      Total increase in investment8,7401,4201,77058012,510
1955-56*
Form of investment increase—
  Increase in paid-up capital2,240350280 2,870
  Increase in net branch assets and intercompany indebtedness4,530240200- 1304,840
  Increase in reserves1,6007001,200 3,500
      Total increase in investment8,3701,2901,680- 13011,210

The graph now presented shows changes in the overseas direct investment in New Zealand for the five years 1951-52 to 1955-56.

Investment in New Zealand Subsidiaries of Overseas Companies.—The table below provides information on subsidiaries only; the figures shown here form part of the totals in the preceding table. The parent company's or associate company's country of Incorporation or residence determines the country or regional area column.

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaO.E.E.C. CountriesTotal, All Countries

* Provisional estimates.

1951-52
Form of investment increase—
  Increase in holdings of paid-up capital52010310 840
  Increase in intercompany indebtedness5,3606009501907,100
  Increase in reserves910630- 150- 101,380
      Total increase in investment6,7901,2401,1101809,320
1952-53
Form of investment increase—
  Increase in holdings of paid-up capital5502201,560 2,330
  Increase in intercompany indebtedness4404301,430402,340
  Increase in reserves1,290420720 2,430
      Total increase in investment2,2801,0703,710407,100
1953-54
Form of investment increase—
  Increase in holdings of paid-up capital1,070360 401,470
  Increase in intercompany indebtedness- 1,280- 100- 900- 150- 2,430
  Increase in reserves1,8004201,500 3,720
      Total increase in investment1,590680600- 1102,760
1954-55
Form of investment increase—
  Increase in holdings of paid-up capital64027040 950
  Increase in intercompany indebtedness1,61070870902,640
  Increase in reserves2,0401,210820404,110
      Total increase in investment4,2901,5501,7301307,700
1955-56*
Form of investment increase—
  Increase in holdings of paid-up capital2,240350280 2,870
  Increase in intercompany indebtedness1,570220401301,960
  Increase in reserves1,6007001,200 3,500
      Total increase in investment5,4101,2701,5201308,330

New Zealand Subsidiaries of Overseas Companies: Dividends.—The table gives an account of dividend appropriations (dividends declared) and remittances of dividends to overseas shareholders. Dividends declared are part of the item "Income from direct investment in New Zealand" on the debit side of each year's balance of payments account where, together with undistributed profits, they account for all subsidiary profits accruing to overseas shareholders. The difference between dividends declared and dividends remitted plus undistributed profits is entered into the capital account and forms part of the figures shown in the tables on pages 776-778, from which it is ultimately transferred into the capital account of the balance of payments.

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaO.E.E.C. CountriesTotal, All Countries
Dividends Declared
1951-52350270530301,180
1952-53370440720101,540
1953-547803901,170502,390
1954-555403701,240102,160
1955-568204401,880103,150
      Totals, 1951-52 to 1955-562,8601,9105,54011010,420
Dividends Remitted
1951-52250250540301,070
1952-53290370710 1,370
1953-54670330920401,960
1954-555302901,140101,970
1955-565502601,850 2,660
      Totals, 1951-52 to 1955-562,2901,5005,160809,030

New Zealand Branches of Overseas Companies.—Net (after tax) earnings and remittances of such earnings and annual increases in investments by overseas companies in their New Zealand branches are described in the table which follows. Net branch earnings, together with dividends declared and undistributed profits of subsidiaries, account for the whole of "Income from direct investment in New Zealand" as shown amongst the debit items of the current balance of payments. The difference between net (after tax) earnings and remittances of such earnings are part of the third item in the following table (increase in net branch assets and other investments) and is a capital item; it is again repeated in the table on pages 776-777 and finally transferred from there to the balance of payments capital account.

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaO.E.E.C. CountriesTotal, All Countries
1951-52
Net earnings of branches (after tax)1,8701,310200103,390
Net earnings remitted1,07061040201,740
Increase in net branch assets and other investments2,1104303002403,080
1952-53
Net earnings of branches (after tax)2,52081080103,420
Net earnings remitted2,14045040202,650
Increase in net branch assets and other investments2,500- 20110- 202,570
1953-54
Net earnings of branches (after tax)3,0701,150130104,360
Net earnings remitted7601,15040201,970
Increase in net branch assets and other investments- 440-1,160- 80 -1,680
1954-55
Net earnings of branches (after tax)4,0401,07030105,150
Net earnings remitted72071050101,490
Increase in net branch assets and other investments4,450- 130404504,810
1955-56
Net earnings of branches (after tax)2,47079070103,340
Net earnings remitted1,40078070102,260
Increase in net branch assets and other investments2,96020160- 2702,880

Investment by New Zealand Companies Overseas.—The following table presents the converse picture of those immediately preceding—viz., direct investment income and capital investment by New Zealand companies in their overseas subsidiaries and branches. The net earnings (after overseas taxation) series is again repeated in the item "Income from direct investment overseas" on the credit side of the current balance of payments account, and the combined figure for investment in subsidiaries and branches is transferred to each country (regional) area column in the capital account (item "New Zealand direct investment overseas").

£(N.Z.)000

United KingdomOther Sterling CountriesU.S.A. and CanadaO.E.E.C. CountriesOther CountriesTotal, All Countries

* Provisional estimates.

1951-52
Net earnings (after overseas taxation)4801,19034010- 202,000
Investment—
  Subsidiaries20 8080 180
  Branches- 440760360 30710
    Total increase in investment- 4207604408030890
1952-53
Net earnings (after overseas taxation)3001,01035010- 301,640
Investment—
  Subsidiaries- 90805080 120
Branches60660120 60900
    Total increase in investment- 3074017080601,020
1953-54
Net earnings (after overseas taxation)5001,1708080901,920
Investment—
  Subsidiaries74080- 6040 800
  Branches460570- 170 120980
    Total increase in investment1,200650- 230401201,780
1954-55
Net earnings (after overseas taxation)4401,29028050802,140
Investment—
  Subsidiaries1090- 5050 100
  Branches401,150370 101,570
    Total increase in investment501,24032050101,670
1955-56*
Net earnings (after overseas taxation)38096021030 1,550
Investment—
Subsidiaries- 2407030  - 140
Branches29033039030 1,040
      Total increase in investment5040042030 900

Chapter 30. SECTION 30—GENERAL GOVERNMENT FINANCE

30 A—REVENUE AND EXPENDITURE

GENERAL.—The legislation relating to the custody, administration, and audit of the public moneys and securities is contained in the Public Revenues Act 1953, which consolidated and amended the former 1926 Act and its amendments. All public moneys are paid into or are payable to either one account at the Reserve Bank called the "Public Account" or to certain other accounts which are outside the Public Account (refer to text following).

The statistical material presented in the ensuing pages relates solely to those accounts or funds included within the framework of the Public Account. However, a consolidated review of Government receipts and expenditure on current account has been prepared and made available in the Section on National Income and Sector Accounts. This review has accordingly taken into consideration the net surpluses or deficits of trading and other accounts not within the Public Account. Present data are insufficient to show the details of the capital account for the Government sector of the economy.

Financial Year.—The financial year commences on 1 April and ends on 31 March. The receipts of any financial year represent the money received into the Public Account at the bank at Wellington within the year, together with that received into the Public Account at London of which advice is received in time for inclusion in the accounts for the year. The payments represent the money paid (a) at the Treasury within the year, (6) by imprestees, of which accounts are received at the Treasury within the year, and (c) at London, of which advice is received in time for inclusion. The Public Account, formerly held at the Bank of New Zealand, was taken over by the Reserve Bank of New Zealand from 1 August 1934.

At the end of each financial year the Appropriation Act of that year lapses, but the Minister of Finance is authorized for a period of three months from the commencement of the next financial year to pay money in respect of any service, provided that the amount docs not exceed the unexpended balance voted for that purpose in the previous year, together with an amount equal to one-fourth of such vote.

The normal practice has been for Parliament to meet at the end of June in each year and to vote supplies from month to month until the estimated expenditure for the year has been approved and the annual Appropriation Act is passed. Where a later session of Parliament is foreseen, a temporary amendment to the provisions set out in the preceding paragraph is made. In the event of a mid-session adjournment, supplies in anticipation of the Appropriation Act may be voted for more than one month.

Where provision has been made for expenditure in the nature of a grant or for a purpose that does not normally recur, but the expenditure cannot be made during the financial year, the Minister of Finance may direct that the unexpended balance shall be transferred to a separate fund or account. In such a case the amount is held there until payment is required, when the amount may be expended without further appropriation.

Audit of Expenditure.—In the audit of expenditure both the pre-audit and post-audit systems are in operation. Pre-audit is applied to vouchers in respect of payments on account of salaries of new appointees; officers claiming more than one month's salary at any time; interest, loan transactions, and return of deposits; unauthorized expenditure; transfers between Government accounts; or expenditure chargeable against the accounts of local authorities. Post-audit is applied to all other payments.

Vouchers must be certified as correct by the proper officer, and forwarded by him to the head of his Department for approval. Vouchers subject to pre-audit are then forwarded to the Audit Office, and on being found correct are sent on to the Treasury to be entered on requisitions for payment. Vouchers subject to post-audit are transmitted by the head of the Department direct to the Treasury. Payment is made by the Treasury, and the claim is afterwards submitted for audit.

Section 10 of the Public Revenues Act 1952 enabled the Controller and Auditor-General to determine, within reasonable limits, the extent of the audit of the Public Accounts.

Income and Expenditure.—A number of departmental balance sheets and statements of accounts showing the true cost of the various Departments and services, as distinct from payments out of appropriations on the basis referred to at the beginning of this subsection, are published annually in parliamentary paper B. 1 [Part IV], to which the reader is referred for details of income, expenditure, etc., in respect of certain Departments and services.

ACCOUNTS AND FUNDS OUTSIDE THE PUBLIC ACCOUNT.—In addition to those moneys payable into the Public Account, money paid into the following accounts are also deemed to be public money—Broadcasting Account, Bureau of Industry Bank Account, Government Accident Insurance Account, Government Insurance Account, Government Superannuation Fund Account, Housing Account, Iron and Steel Industry Account, Maori Trustee's Account, Marketing Account, Meat Industry Account, Post Office Account, National Provident Fund Account, Public Trustee's Account, State Fire Insurance Account, and such other accounts as from time to time are declared to be such by Order in Council.

Transactions in connection with the majority of these accounts are given in the various Sections of the Year-Book dealing with the relevant activity.

ACCOUNTS AND FUNDS WITHIN THE PUBLIC ACCOUNT.—The records of the Public Account in the books of the Treasury consist of a number of ledger accounts for the special subsidiary funds or accounts, and a number of other accounts established by statute or kept by Treasury under authority of the Public Revenues Act. In these accounts are recorded for each separate fund or account the receipts, payments, and cash balance so that the bank balance in the Public Account is apportioned among the funds and accounts, and balanced itemized statements of the receipts and payments for each of the funds or accounts are prepared for publication.

The use of the terms "fund" and "account" implying some significant distinction is hardly justified. The use of the term "Social Security Fund," for example, does not imply any technical accounting distinction between the Social Security Fund and the Public Works Account or the other accounts within the Public Account.

The following accounts and funds were included in the Public Account at 1 April 1956: Consolidated Fund, Public Works Account, Social Security Fund, Defence Fund, Deposits Account, Earthquake and War Damage Fund, Electric Supply Account, Land Settlement Account, Loans Redemption Account, National Development Loans Account, Reserve Fund, State Coal Mines Account, Working Railways Account, and National Roads Fund.

Particulars of some of the more important accounts are contained in the following pages, while others are dealt with in the appropriate Sections of this volume. The Deposits Account represents only lodgements or withdrawals of (mainly) non-Government moneys. The Loans Redemption Account is dealt with in the subsection on indebtedness.

The figures shown under the various headings of this subsection are on the basis of receipts and payments. In some Sections devoted to the operations of various Departments and activities, the figures are given on an income and expenditure basis and accordingly differ to some extent from those appearing here.

SUMMARY OF PUBLIC ACCOUNT FOR 1954-55 AND 1955-56.—The following table gives a concise statement of the whole of the financial transactions comprised in the Public Account for the years 1954-55 and 1955-56, the source being parliamentary paper B. 6, 1956.

ReceiptsYear Ended 31 March
19551956
Taxation—
  Income-tax88.390.7
  Social security charge56.259.9
  Customs28.0§30.1
  Sales tax22.623.4
  Stamp and death duties16.215.2
  Other taxation7.37.9
      Totals, taxation218.6227.2
Interest8.49.2
Profits from trading3.12.9
Departmental receipts17.418.2
      Totals, Consolidated Fund and Social Security Fund receipts247.5257.5
National Roads Fund receipts18.2§18.9
 265.7276.4
Receipts from borrowing and sale of investments (less repayments)—
Borrowing in New Zealand—
National Savings2.72.0
Post Office Savings Bank11.56.0
Other borrowing9.96.6
 24.114.6
Overseas borrowing London and Australia11.6- 2.0
      Totals, borrowing35.712.6
Other capital receipts—
Transfers from Consolidated Fund for—Debt repayment12.312.7
Defence Fund, etc.3.8 
Public Works Account6.313.7
Sinking Fund contributions, etc.2.74.7
National Development Loans Account3.5 
Miscellaneous capital receipts9.54.5
 38.135.6
      Totals339.5324.6
Excess receipts of trading accounts, etc., within the Public Account4.21.7
      Grand totals343.7326.3
ExpenditureYear Ended 31 March
19551956

Note.—A number of transfer entries, such as the annual transfer from Consolidated Fund to Social Security Fund and the transfers of the surplus for previous years which do not affect the over-all cash surplus or deficit, have been excluded from both sides of the above statement.

* Expenditure from Public Works Account.

† Transfer from National Development Loans Account.

‡ Sale or purchase of investments by Public Account.

§ As from 1 April 1954 all highways taxation is credited direct to National Roads Fund. Previously it was credited partly to Customs revenue and partly to highways taxation.

|| As from 1 April 1954 all expenditure on roads is being met from National Roads Fund. Previously construction expenditure was met from Public Works Account and maintenance expenditure from Consolidated Fund.

¶ Included in maintenance of works, etc.

** Changes in cash balances only.

Social services114.0125.3
Defence24.124.4
Administration, etc.23.123.6
Stabilization12.911.8
Maintenance of works, etc.9.010.6
Development of industry13.614.5
Interest and management of the public debt21.021.8
Transfer for repayment of the public debt12.312.7
Transfer to Defence Fund, etc.1.0 
Transfer to Public Works Account2.07.5
Transfer to National Development Loans Account3.5 
Transfer to National Roads Fund1.0
      Totals, Consolidated Fund and Social Security Fund expenditure237.5252.2
Works and other capital expenditure—
  Housing construction*9.410.4
  School buildings*5.16.1
  Forest development*1.61.8
  Electric supply12.012.0
  Land Settlement1.01.0
  Railways*6.35.8
  State Coal0.2 
  Post Office6.04.7
  Murupara Pulp and Paper Scheme*9.22.7
  State Advances Corporation6.011.4
  Other*3.04.5
      Totals, works, etc.59.860.4
Other expenditure—
Defence Fund3.21.5
National Roads Fund14.8||19.5
 77.881.4
Purchase of miscellaneous investments not included above10.43.7
      Totals325.7337.3
Over-all cash surplus or deficit—
Fixed deposits with trading banks in New Zealand14.6- 14.6
Fixed deposits: London- 5.0 
Increase in cash (and imprest) balances3.4**8.6
 18.0- 11.0
      Grand totals343.7326.3

During 1955-56 receipts from taxation, interest, profits, departmental receipts, and National Roads Fund receipts amounted to £276.4 million, or about £11 million more than in 1954-55. The main increases were £2.4 million in income tax, £3.7 million in social security charge and £2.1 million in customs taxation. Borrowings after provision was made for debt repayments were £12.6 million, a decrease of £23.1 million. Sundry capital receipts and transfers amounted to £35.6 million, while trading accounts received £1.7 million more than was expended, compared with excess of receipts of £4.2 million in the previous year. Total receipts were therefore £326.3 million.

Payments and transfers from the Consolidated Fund and Social Security Fund were £252.2 million, £14.7 million higher than in 1954-55, an increase in social services expenditure of £11.3 million being mainly responsible for the increase. Defence Fund and National Roads Fund expenditure amounted to £21.0 million. Works and other capital expenditure cost £60.4 million, and miscellaneous purchases of investments amounted to £3.7 million; the total expenditure therefore was £337.3 million, or £11.0 million more than the receipts.

The cash deficit of £11.0 million in 1955-56 compares with an overall surplus of £18.0 million in 1954-55.

ESTIMATES OF RECEIPTS AND EXPENDITURE FOR 1956-57.—The following table supplies a composite account embracing the Consolidated Fund and the Social Security Fund, showing the estimated receipts and payments for 1956-57.

£(m.)

Estimated Receipts1956-57
Consolidated Fund
Taxation—
Customs27.6
Beer duty6.8
Sales tax21.5
Film-hire tax0.1
Stamp duties14.0
Land tax1.4
Income tax99.5
 170.9
Other receipts—
Interest11.3
Trading profits3.8
Departmental18.1
      Total204.1
Interest and debt repayment35.9
Permanent appropriations4.6
Annual appropriations—
Stabilization11.0
Defence26.7
Development of primary and secondary industries16.2
Social services (excluding transfer to Social Security Fund)57.6
Other votes46.4
Supplementary estimates2.0
      Total200.4
Social Security Fund
Social security charge62.3
Transfer from Consolidated Fund14.0
Miscellaneous0.2
      Total76.5
Administration and special assistance2.1
Medical and hospital benefits16.6
Monetary benefits56.8
      Total75.5

THE CONSOLIDATED FUND.—The Consolidated Fund, the principal account in the Public Account, covers the ordinary revenue and expenditure of the General Government—i.e., apart from capital items, commercial and special undertakings, advances, etc. In earlier years its operations afforded an excellent comparison of State revenue and expenditure from year to year, but successive changes in system have largely destroyed the comparability of the figures. All tax receipts are shown here with the exception of the social security tax and, from April 1954, National Roads Fund taxation, taxation receipts as a whole being the subject of the succeeding subsection. In addition the Consolidated Fund is the focal point of the earnings of a number of State-owned undertakings as it records the receipts of interest, profits, and dividends from them.

Figures of receipts and payments of the Consolidated Fund over a long period of years will be found in the Statistical Summary near the end of this volume. For the years prior to 1937-38 they are there presented on the old or net basis—i.e., certain interest and other payments, since treated as receipts, were treated as credits in reduction of expenditure. For later years the figures are on a gross basis.

A summary of receipts, payments, current surpluses, and net balance carried forward for the last eleven years is contained in the following table, together with the amounts utilized in each year from the surplus of the preceding year.

£

Year Ended 31 MarchReceiptsPaymentsSurplusNet Balance Carried Forward at End of YearTransfers of Previous Year's Surplus to Other Accounts During Year Quoted

* To War Expenses Account except in 1951-52, which was to the War Emergency Account.

† To Public Works Account.

‡ Utilized for payment of family bonus.

§ To National Development Loans Account.

194663,913,64962,659.4991,254,1504,509,940 
1947108,294,473103,683,4554,611,0189,120,958 
1948117,116,115115,330,4031,785,7126,295,6524,611,018*
1949141,523,915138,893,1542,630,7617.140,7011,785,712*
1950124,996,634120,688,8924,307,74211,448,443 
1951143,756,815135,503,5988,253,21715,393,9194,307,741
1952180,788,402168,152,68112,635,72119,776,4233,078,910
5,174,307*
1953177,822,098174,515.0553,307,04310,447,7454,000,000§
8,635,721
1954182,319,295180,516,3151,802,9808,943,6823,307,043
1955191,216,241184,376,3256,839,91613,980,6181,802,980
1956197,433,300193,282,1294,151,17111,291,8726,839,916

Receipts.—Details of receipts of the Consolidated Fund are given in the next table. Taxation receipts represent only those amounts paid into the Consolidated Fund, and there are substantial amounts of special taxation which are paid to the Social Security Fund and to the National Roads Fund. Full details of taxation receipts are contained in Section 30b.

£

Source1953-541954-551955-56

* Now included under National Roads Fund taxation.

Taxation—
  Customs26,343,30327,968,86530,065,571
  Beer duty5,833,8716,208,3596,567,302
  Sales tax21,133,74022,621,11923,443,498
  Film-hire tax131,190135,959142,021
  Highways5,328,922**
  Stamp duties6,327,0426,905,5856,791,172
  Death (including gift) duties8,682,3769,385,1458,483,810
  Land tax1,615,372966,6321,227,656
  Income tax80,799,71988,316,88090,697,965
Interest on capital liability—
  Electric supply2,811,8033,179,9723,592,001
  Housing account1,050,1911,156,6791,258,458
  Housing construction112,203115,250107,687
  Post and Telegraph1,183,7851,326,1031,524,307
  Land settlement1,400,0001,400,0001,400,000
  Maori land development, etc.178,210199,330225,556
  New Zealand National Airways Corporation42,00042,00042,000
  State coal mines98,086  
Interest on other public moneys869,604958,767996,645
Profits on trading undertakings1,780,2873,143,9462,906,362
Departmental receipts16,597,59117,185,65017,961,289
      Totals182,319,295191,216.241197,433,300

Compared with 1954-55, receipts for 1955-56 showed an increase of £6.2 million, or 3.3 per cent.

Principal changes were increases of £2-4 million in income tax, £2.1 million in Customs taxation, £0.8 million in sales tax, and £0.8 million in departmental receipts, and a decrease of £0.9 million in death (including gift) duties.

Payments.—Payments from the Consolidated Fund are divided into two main groups, according to whether they are made under permanent or under annual appropriation. The latter heading covers the payments under the various departmental votes, while the former covers interest on and amortization of the public debt, and payments under numerous special Acts.

Payments under the main heads of permanent appropriation and each head of annual appropriation during the last three years were as follows.

£

Head1953-541954-551955-56

* Expenditure met from vote "Maintenance of Public Works and Services"

* Now a payment of the National Roads Fund.

Permanent appropriations—
  Civil List143,739143,446162,395
  Debt services—
  Interest18,128,18220,014,41721,000,627
  Amortization6,883,89712,315,86512,702,810
  Administration and management1,004,7091,033,250830,309
  Superannuation (subsidy and contribution)3,068,0004,305,0003,602,000
  Contribution to National Roads Fund 1,000,000*
  Other items372,888430,808589,191
        Totals, permanent appropriations29,601,41539,242,78638,887,332
Annual appropriations—
  Legislative213,259216,237245,317
  Prime Minister's Office18,56419,99321,540
  External Affairs1,811,8602,070,4502,153,892
  Finance—
  Treasury289,651298,948330,351
  Stabilization14,451,66412,923,12611,824,954
  Customs412,579434,935476,403
  Inland Revenue1,222,3491,295,9641,372,498
  Audit182,472194,310203,637
        Totals, finance16,558,71515,147,28314,207,843
General administration—
  Public Service Commission95,904106,142119,492
  Internal Affairs3,788,7183,171,6383,554,309
  Island Territories1,193,5791,161,923992,907
  Printing and Stationery772,365936,0951,106,814
  Marine516,491519,445584,765
  Labour2,168,8841,792,3941,925,065
  Maori Affairs805,108797,625887,182
  Valuation399,937402,264396,302
  Statistics145,671145,621166,260
  Rehabilitation1,235,7261,145,9091,127,289
      Totals, general administration11,122,38310,179,05610,860,385
Law and order—
  Justice1,225,1851,560,2301,440,481
  Crown Law19,85121,85325,567
  Police1,758,8201,778,2842,032,584
      Totals, law and order3,003,8563,360,3673,498,632
Defence—
  Navy5,254,4006,019,7485,817,363
  Army11,840,8607,240,1887,611,567
  Air9,196,0458,947,0168,758,500
  Defence Construction and Maintenance2,721,1841,891,6142,205,706
        Totals, defence29,012,48924,098,56624,393,136
  Maintenance—
  Maintenance of Public Works and Services9,626,5509,043,32210,558,756
  Highways Maintenance5,507,898**
      Totals, maintenance15,134,4489,043,32210,558,756
  Development of primary and secondary industries—
  Lands and Survey1,739,3781,882,3191,944,902
  Forest Service1,790,6532,137,0082,202,030
  Agriculture2,980,9733,801,5554,001,585
  Milk Marketing652,334  
  Industries and Commerce378,070393,371400,711
  Tourist and Publicity1,337,0371,362,8841,509,641
  Scientific and Industrial Research1,089,8081,149,3781,212,658
  Mines122,110119,172121,860
  Transport789,985568,678567,277
  Civil Aviation and Meteorological Services2,323,1742,202,7562,552,727
        Totals, development of primary and secondary industries13,203,52213,617,12114,513,391
  Social services—
  Health5,010,2265,195,8535,797,315
  Subsidies to Hospital Boards10,270,07910,726,67610,704,314
  Education20,782,20822,886,08627,455,708
  War and other pensions7,241,6738,013,0508,444,521
  Payment to Social Security Fund14,000,00014,000,00014,000,000
        Totals, social services57,304,18660,821,66566,401,858
        Totals, annual appropriations147,383,282138,574,060146,854,750
Unauthorized expenditure31,61859,47940,047
Transfer to Public Works Account 2,000,0007,500,000
Transfer to Defence Fund3,500,0001,000,000 
Transfer to National Development Loans Account 3,500,000 
      Grand totals180,516,315184,376,325193,282,129

In a number of cases the expenditure incurred on various related services appears partly in each of two or more places in the accounts. Typical instances occur where capital expenditure out of the Public Works Account or money paid under permanent appropriations are not associated with departmental votes (refer parliamentary paper B. 1 [Pt. II], 1956).

Total expenditure in 1955-56 showed an increase of £8.9 million, or 4.8 per cent. Items of expenditure which contributed materially to the increase were education, £4.6 million, maintenance of public works and services, £1.5 million, and debt services, £1.2 million, and transfers to other accounts, £1 million, these being partly offset by a reduction in stabilization of £1.1 million.

PUBLIC WORKS.—For the prosecution of the policy of public works inaugurated in 1870 there was set up a Public Works Fund. For many years all expenditure on public works was borne by this Fund, but in course of time separate subsidiary accounts were established to deal with certain special activities. These subsidiary accounts became merged in the General Purposes Account of the Public Works Fund, or ceased to exist on the completion of the work for which they were called into existence. Under section 4 of the Finance Act (No. 2) 1943 the Public Works Fund was abolished and a Public Works Account substituted as from 1 April 1942. The Electric Supply Account and the Electric Supply Sinking Fund Account, which formerly ranked as part of the Public Works Fund, were then shown as separate accounts. The Electric Supply Sinking Fund Account was abolished as from 31 March 1944.

The Construction Fund of the Main Highways Account, which was established in 1923-24 to provide finance for the construction, reconstruction, etc., of main highways, was analogous to the Public Works Fund, and its operations were for some years included in the Year-Book statement of public-works receipts and payments. The Construction Fund of the Main Highways Account was later (1 April 1936) combined with the Revenue Fund. With the abolition of the Main Highways Account as from 1 April 1947, however, receipts and expenditure on highways construction were incorporated in the Public Works Account. From April 1954 these are recorded in the National Roads Fund.

The Public Works Account bears the cost of all major development works apart from State hydro-electric, land settlement, railway improvements, telegraph extension, and, from April 1954, roads. Finance is largely provided by transfers from the National Development Loans Account and from the Consolidated Fund.

Receipts.—A summary of receipts of the Public Works Account for the last three financial years is contained in the following table.

£

1953-541954-551955-56

* Includes amounts transferred from Consolidated Fund: Education (from vote "Education"), £2,400,000 in 1953-54, £2,400,000 in 1954-55, and £4,800,000 in 1955-56; Public buildings, £1,250,000 in 1953-54, £1,800,000 in 1954-55. and £1,250,000 in 1955-56 (from vote "Maintenance of Public Works and Services"); and Forest Development, £100,000 in 1954-55 and £100,000 in 1955-56 (from vote "Forest Service").

Department of Education2,425,051*2,418,550*4,830,650*
Forest development1,038,6011,372,483*1,453,107*
Highways construction108,553  
Housing construction1,239,4142,112,3242,086,204
Irrigation, water supply, and drainage16,09633,43843,249
Public buildings1,291,862*1,806,946*1,264,83 6*
Railway construction29,21737,32134,627
Roads, etc.204,902126,65596,507
Soil conservation and rivers control60,73350,40053,057
Transfers from National Development Loans Account17,600,00013,000,0001,000,000
Transfers from Consolidated Fund—
Surplus from previous year3,307,0431,802,9796,839,917
During year 2,000,0007,500,000
Repayment of loans of capital advances, and recoveries of capital moneys (various)27,59631,13326,852
Miscellaneous200,382222,760128,802
      Totals27,549,45025,014,98925,357,808

Payments.—Particulars of payments from the account for the three financial years 1953-54 to 1955-56 are now given.

£

1953-541954-551955-56
Forest development1,800,8061,575,1421,759,672
Housing construction10,608,0359,350,84210,399,079
Irrigation, water supply, and drainage586,653355,556386,540
Public buildings1,509,7341,225,9232,030,572
Educational buildings5,853,6075,089,9166,065,358
Railway construction2,024,7681,119,513780,139
Roads, etc.873,483812,598842,349
Soil conservation and rivers control443,539621,744653,257
Highways construction3,287,068  
Murupara development2,207,6323,137,3652,442,840
Other2940118,950
      Totals29,195,35423,289,00025,378,756

For the three years concerned, balances at the end of the year were: 1953-54, £2,526,950; 1954-55, £4,252,938; and 1955-56, £4,231,990.

In addition to expenditure on roads from the Public Works Account and the National Roads Fund, expenditure is incurred in roading Crown lands and lands purchased for settlement, which is a charge on the Land Settlement Account.

NATIONAL ROADS FUND.—The National Roads Act 1953 provided for a National Roads Fund to be established within the Public Account, the revenue of the Fund to be derived mainly from motor taxation together with an annual contribution from the Government. Expenditure from the Fund is for the purpose of developing State and main highways to modern standards and of subsidizing the roading programmes of local authorities.

Receipts and payments of the Fund for the years ended 31 March 1955 and 1956 were as follows.

£

1954-551955-56
Receipts
Transfer from Deposit Account889,406 
Highways revenue16,082,40317,499,065
Contribution from Consolidated Fund1,000,0001,000,000
Miscellaneous212,078398,799
Interest34,08441,750
      Totals18,217,97118,939,614
Payments
Highways maintenance3,905,4314,347,231
Highways construction6,268,3149,613,383
Payments to local authorities3,441,3593,995,552
Administration and general expenses1,151,0081,558,754
Unauthorized expenditure 2,000
      Totals14,766,11219,516,920

The balance of this account at the end of March 1955 was £3,451,859 and at the end of March 1956, £2,874,553.

ELECTRIC SUPPLY ACCOUNT.—As from 1 April 1942 the Electric Supply Account, which formerly ranked as part of the Public Works Fund, became a separate account. It reflects the cash transactions of the Government in respect of the State supply of electrical energy. The main items of receipts and payments of the Electric Supply Account for the last three years were as follows.

£

1953-541954-551955-56
Receipts
Transfer from National Development Loans Account13,250,00012,000,00012,000,000
Sales of electrical energy and miscellaneous receipts7,823,4279,259,5899,679,303
Other1,8183,1306,700
      Totals21,075,24521,262,71921,686,003
Payments
Development of water power, etc.16,568,55616,601,87416,776,080
Interest on capital liability2,811,8033,179,9723,592,000
Debt redemption 1,010,895653,567
Taxation—Income tax 508,929510,915
Social security charge 88,08488,428
Subsidy to Government Superannuation Fund37,11341,09740,077
Unauthorized expenditure  557
      Totals19,417,47221,430,85121,661,624

The balances in the account at the end of each of the three years were: 1953-54, £2,251,917; 1954-55, £2,083,786; and 1955-56, £2,108,164.

LAND SETTLEMENT ACCOUNT.—Through the closing of several accounts and the merging of these in other accounts or funds, there now remains only one account dealing primarily with land settlement—viz., the Land Settlement Account—which covers numerous and diverse activities in connection with land settlement, including advances for development of certain lands held by Europeans and Maoris.

The principal advances accounts, those relating to State Advances to settlers, workers, etc., are, as stated earlier in this subsection, outside the Public Account and are not included here (refer Section 33b).

A statement of receipts and payments of the Land Settlement Account for the years 1953-54 to 1955-56 is now given.

£

1953-541954-551955-56
Receipts
Transfer from National Development Loans Account1,700,0001,000,0001,000,000
Department of Lands and Survey—
Capital receipts1,213,2221,181,3651,027,989
Rents, interest, royalties, etc.1,050,8321,155,0731,184,220
Land development5,470,6664,623,9004,357,168
Miscellaneous receipts6,87716,22917,579
Transfer from Consolidated Fund450,000550,000450,000
Department of Maori Affairs—
Receipts from land-development schemes1,595,8541,653,3451,526,781
Repayment of advances under Maori Housing Act398,776429,009556,406
Receipts from rehabilitation of Maori ex-servicemen194,479197,052196,735
Receipts from other activities38,32347,54364,143
Transfer from Consolidated Fund155,904206,781203,796
Interest on investments13,39423,89920,351
      Totals12,288,32711,084,19610,605,168
Payments
Crown lands1,548,3115,137,5045,992,336
Settlement of ex-servicemen4,751,368
Maori-land settlement2,986,7623,041,5283,480,114
Interest on loans and capital liability1,578,2101,599,3301,625,556
Payment in respect of land and improvements acquired for disposal under Land Act 1948278,4021,208,595807,403
Other30,56766,915137,673
      Totals11,173,62011,053,87212,043,082

The balances in the account for each of the three years were: 1953-54, £3,805,471; 1954-55, £3,835,795; and 1955-56, £2,397,880.

TRADING ACCOUNTS.—Several important trading operations of the Government are outside the scope of the Public Account, while certain others are included in the Consolidated Fund. The Electric Supply Account also covers both construction and trading operations. The Working Railways Account records the revenue from, and operating costs of, the services under the control of the Railways Department.

Working Railways Account.—Receipts and payments of the Working Railways Account during the last three years were as follows.

£

1953-541954-551955-56
Receipts
Railway revenue27,024,22430,692,09331,657,973
Miscellaneous receipts559,745694,456782,186
Transfer from National Development Loans Account4,300,0005,200,0005,000,000
Interest8,11330,77596,161
      Totals31,892,08236,617,32437,536,320
Payments
Annual appropriations—
Working Railways30,576,71133,624,46434,069,347
Subsidy to Government Superannuation Fund353,076333,038346,141
      Totals30,929,78733,957,50234,415,488

At the end of each year the following balances remained in the account: 1953-54, £2,730,577; 1954-55, £5,390,399; and 1955-56, £8,511,231.

State Coal Mines Account.—The corresponding statement of receipts and payments of the State Coal Mines Account for the last three years is now presented.

£

1953-541954-551955-56
Receipts
Rents, royalties, sale of coal, etc.6,044,3196,798,7536,817,162
Transfer from National Development Loans Account1,100,000200,000 
Housing and other loans: repayment of principal and interest39,59340,64345,970
Sales of stores and equipment19,34144,45419,285
Miscellaneous receipts17,64834,76843,101
      Totals7,220,9017,118,6186,925,518
Payments
Annual appropriations—
State Coal Mines6,944,6206,746,0356,727,917
Interest on capital liability98,086  
Income tax7,410  
Social security charge1,251  
Transfer to Loans Redemption Account for redemption of securities163,156  
Subsidy to Government Superannuation Fund6,8867,4177,675
      Totals7,221,4096,753,4526,735,592

Balances at the end of March for years 1953-54 to 1955-56 amounted to £21,078, £386,244 and £576,170 respectively.

SOCIAL SECURITY FUND.—The Social Security Fund was established as from 1 April 1939 under the authority of the Social Security Act of 1938. Receipts and payments of the Fund during the last three years were as follows.

£

1953-541954-551955-56
Receipts
Social security charge49,717,37656,175,15159,910,717
Miscellaneous receipts21,92520,05625,826
Contribution from Consolidated Fund14,000,00014,000,00014,000,000
Interest15,63935,09377,432
Deserted wives' maintenance (recoveries)77,65380,59692,674
Recoveries on account reciprocity arrangements6,3793,2144,332
      Totals63,838,97270,314,11074,110,981
Payments
Administration expenses and emergency benefits3,130,9521,665,9971,874,217
Medical, hospital, etc., benefits10,607,04512,588,92415,547,154
Monetary benefits48,626,20552,901,48455,457,934
Balance of maintenance moneys6225267
Reciprocity benefits6,0497,2064,221
      Totals62,370,31367,163,63672,883,793

The balances remaining in this account for the three years were as follows: 1953-54, £12,428,167; 1954-55, £15,578,640; and 1955-56, £16,805,828.

More detailed information concerning payments under the various headings are given in Section 7a of this Year-Book.

NATIONAL DEVELOPMENT LOANS ACCOUNT.—Since the inauguration of the National Development Loans Account in April 1942 all loan moneys raised for public works and other capital purposes are first paid into this account and then transferred to the various accounts covering the activities for which the moneys are required. The Finance Act 1952 enables revenue moneys to be passed through this account, whereas previously the intention was to record the receipt and application of loan moneys only.

Particulars of receipts and payments of the National Development Loans Account during each of the last three financial years were as follows.

£

1953-541954-551955-56
Receipts
Stock issued46,834,49439,663,96719,743,245
Transfer from Consolidated Fund 3,500,000 
Repayment of advance to Tasman Pulp and Paper Co. Ltd. 1,000,0005,135,172
      Totals46,834,49444,163,96724,878,417
Expenditure
Public Works Account17,600,00013,000,0001,000,000
Electric Supply Account13,250,00012,000,00012,000,000
Land Settlement Account1,700,0001,000,0001,000,000
State Coal Mines Account1,100,000200,000 
Working Railways Account4,300,0005,200,0005,000,000
Post Office Account3,600,0006,000,0004,700,000
Calls on shares in Dominion Salt Ltd. 25,000 
Application moneys and calls in advance on shares in Tasman Pulp and Paper Co. Ltd.800,0001,000,000 
Loan to Tasman Pulp and Paper Co. Ltd.1,300,0006,100,0005,385,172
Fully paid shares in Geothermal Development Ltd. 20,000 
Transfer to Deposits Account on account Geothermal Development Ltd.  579,950
      Totals43,650,00044,545,00029,665,122

The balance in the account at the end of each year was as follows: 1953-54, £7,571,693; 1954-55, £7,190,659; and 1955-56, £2,403,955.

EARTHQUAKE AND WAR DAMAGE FUND.—The Earthquake and War Damage Fund, which replaced the War Damage Fund created by the War Damage Act 1941, was set up under the provisions of the Earthquake and War Damage Act 1944. Premiums paid into the Fund during the three years 1953-54 to 1955-56 amounted to £1,055,553, £1,161,907, and £1,280,563 respectively. Interest on investments amounted to £269,255, £327,630, and £382,376. Payments during the same years amounted to £79,584, £81,214, and £80,662 leaving balances of £11,038,149, £12,471,752, and £14,079,602 in the Fund at 31 March 1954, 1955, and 1956 respectively.

A description of the provisions of the Act and further details of the Fund will be found in Section 34d.

DEFENCE FUND.—In order to provide moneys for the purchase of modern equipment for the Royal New Zealand Air Force, an Air Defence Fund was created in June 1948. This Fund has since been extended to cover the three Services, and the title has been changed to the Defence Fund. With the abolition of the War Emergency Account in 1953-54, the Fund may now be expended for any purpose connected with the defence of New Zealand or directly or indirectly with any war or threat of war faced by New Zealand. If not required for its original purposes, money in the Fund may be transferred to the Reserve Fund or to the Loans Redemption Account. The amounts paid into the Defence Fund were £1,600,000 in 1948-49, £1,300,000 in 1949-50, £3,950,000 in 1950-51, £6,300,000 in 1951-52, £140,000 in 1952-53, £3,500,000 in 1953-54, and £3,770,000 in 1954-55, together with interest on investments totalling £2,367,380 over the period, and a transfer of £12,079,094, being the balance in the former War Expenses Account. After expenditure of £4,740,956, consisting of £3,733,837 on service expenditure in Korea, £1,000,000 in 1955-56 as an advance payment on a naval vessel, and £7,119 other expenditure, a balance of £30,265,518 was left in the Fund at 31 March 1956.

30 B—TAXATION

TOTAL TAXATION.—During the early nineteen-thirties heavier imposts were made in existing fields of taxation and, in addition, new classes of taxation were imposed, the latter including a sales tax and a scheme of special taxation for the relief of unemployment and the promotion of employment. This employment promotion tax was replaced in 1939-40 by social security taxation. Later the need of finance for New Zealand's war effort necessitated the imposition of new taxes and additional charges under many existing headings. These wartime taxes have either been abolished or the rates considerably reduced and later incorporated in the normal tax structure. The figures for the post-war years have been achieved despite the effect of certain reductions in taxation by way of rebates, smaller surcharges, etc., and reflect the higher levels of incomes, prices, etc.

All revenue collected by means of taxation was until the end of the financial year 1921-22 paid into the Consolidated Fund and applied to general purposes. During the period 1922-23 to 5 December 1927, however, certain items were paid directly into the Main Highways Account to help defray the cost of improving and maintaining roads. Receipts from social security taxation are paid direct into the Social Security Fund, while a similar position obtained in the case of war taxation, receipts from this source having been paid direct into the War Expenses Account up to 31 March 1946, since when all receipts previously included under the heading of war taxation have been treated as ordinary revenue and paid to the Consolidated Fund. Highways revenue from motor spirits taxation, etc., formerly payable to the Consolidated Fund, was, from 1 April 1954, paid into the National Roads Fund.

A summary of taxation revenue during the last eleven years is given in the following table. In addition to total taxation the amounts received from direct taxes on income are also shown.

YearDirect Taxes on Income (i.e., Income Tax and War and Social Security Charges on Income)Total Taxation
AmountPercentage of Total Taxation (All Sources)Amount
TotalPer Head of Mean PopulationTotalPer Head of Mean Population
 ££s.d. ££s.d.
1945-4671,582,87041161162.3114,954,8736740
1946-4763,873,162361756.5113,119,04663180
1947-4863,581,244353652.0122,275,911671211
1948-4978,386,0574210360.1130,440,249701411
1949-5080,186,0204212559.2135,556,3197211
1950-5195,208,07549121060.3157,946,9758271
1951-52121,714,371622960.7200,549,80710279
1952-53124,209,3146116362.2199,770,2839983
1953-54130,517,095636463.4206,802,31710065
1954-55144,492,0316812461.5234,766,09811199
1955-56150,608,6827001061.5244,828,777113172

Excluding the special taxation levied for social security purposes and for the National Roads Fund, taxation revenue in 1955-56 amounted to £167.4 million, an increase of £4.9 million on the 1954-55 figure. Of this amount £90.7 million, or 54 per cent, the same proportion as in the previous year, was received from direct taxes on income.

The following table shows receipts under the various heads of taxation during the last five years.

HeadRevenue for Year Ended 31 March
19521953195419551956
Consolidated Fund—£££££
Customs revenue32,599,59627,273,20626,343,30327,968,86530,065,571
Beer duty5,273,8045,466,7015,833,8716,208,3596,567,302
Highways taxation4,575,3474,908,4925,328,922**
Land tax1,137,9371,315,1361,615,372966,6321,227,656
Income tax78,101,50378,701,37680,799,71988,316,88090,697,965
Sales tax21,811,37521,991,70321,133,74022,621,11923,443,498
Death duties7,545,8448,255,3687,871,7868,475,6697,750,986
Gift duties571,415512,489810,590909,476732,824
Racing taxation2,628,3843,301,8253,752,9223,974,1724,065,155
Duty on instruments1.436.5881,309,3711,484,5341,754,3081,522,358
Amusement tax308,976396,306401,704416,797440,229
Adhesive stamps237,923226,416186,873166,60459,764
Impressed stamps422,132428,010452,310492,526519,842
Other stamps taxation173,57440,59848,699101,178183,825
Film-hire tax112,541135,348131,190135,959142,020
      Totals156,936,939154,262,345156,195,535162,508,544167,418,995
Social security taxation—
Social security charge43,612,86845,507,93849,717,37656,175,15159,910,717
      Totals43,612,86845,507,93849,717,37656,175,15159,910,717
National Roads Fund—
  Highways revenue (less rebates)  889,40616,082,40317,499,065
      Totals  889,40616,082,40317,499,065
      Total taxation receipts200,549,807199,770,283206,802,317234,766,098244,828,777

* Now included under National Roads Fund.

Taxation receipts per head of mean population—£s.d.£s.d.£s.d.£s.d.£s.d.
Ordinary (Consolidated Fund)80257615475155773677172
Social security225422121124252613627173
National Roads Fund      0877129829
      Totals1027999831006511199113172

Compared with 1954-55 revenue from taxation in 1955-56 showed a rise of £10 million, or 4.3 per cent. Receipts from the social security charge increased by £3.7 million, from income tax by £2.4 million, from Customs revenue by £2.1 million and highways revenue in the National Roads Fund by £1.4 million.

In 1955-56 taxation paid into the Consolidated Fund accounted for 68.4 per cent of the total taxation receipts, social security taxes for 24.5 per cent, and National Roads Fund taxation for 7.1 per cent. If to the total of social security tax is added the £14 million transfer from the Consolidated Fund, the 1955-56 taxation used for social security purposes amounted to 30.2 per cent of the total taxation receipts for the year.

The figures under the various headings in the preceding table are to a small extent swollen by the inclusion of penalties for late payment and of fines for offences under the various taxation Acts.

The Social Security Act 1938 provided that, in addition to the special taxation for the purposes of the Fund, payment may be made to the Fund of such other moneys as may be appropriated by Parliament from time to time, and a substantial amount has been transferred from the Consolidated Fund each year. Also, several substantial amounts were transferred from the latter Fund to the War Expenses Account. The total amount transferred to the Social Security Fund since its inception in 1939-40 to 31 March 1956 was £173 million, while during the same period £40.5 million was transferred to the former War Expenses Account. The following table shows for each of the last eleven years the taxation receipts of the Consolidated Fund, the amounts transferred to other accounts, and the taxation receipts of the Social Security Fund and War Expenses Account, plus the amounts of these transfers.

£

Year Ended 31 MarchConsolidated FundSocial Security Taxation Plus TransfersWar Expenses Taxation Plus Transfers
Taxation ReceiptsTransfers to—
Social Security FundWar Expenses AccountOther Accounts

* Includes £4,611,018 and £1,785,712 respectively from surplus of previous year.

† War Emergency Account, comprising transfer of £6,600,000 and £5,174,307 balance of surplus from previous year.

‡ Public Works Account, £14,635,721, consisting of £6,000,000 transfer and £8,635,721 balance of surplus from previous year; also National Development Loans Account. £4,000,000 from surplus of previous year.

§ Defence Fund, £3,500,000; also Public Works Account, £3,307,043 from surplus of previous year.

|| Defence Fund, £1,000,000; National Development Loans Account, £3,500,000; Public Works Account, £3,802,980, consisting of £2,000,000 transfer and £1,802,980 from surplus of previous year.

¶ Public Works Account, comprising transfer of £7,500,000 and £6,839,917 from surplus of previous year.

194648,370,7187,000,000  22,167,30851,416,847
194790,715,39318,000,0003,000,000 40,403,6533,000,000
194896,099,15316,000,0006,666,018* 42,176,7586,666,018
1949101,061,73915,000,0004,238,143* 44,378,5104,238,143
1950103,853,46412,000,000  43,702,855 
1951122,180,53814,000,000  49,766,437 
1952156,936,93914,000,000 11,794,30757,612,907 
1953154,262,34514,000,000 18,635,72159,507,938 
1954156,195,53514,000,000 6,807,043§63,717,376 
1955162,508,54414,000,000 8,302,980||70,175,151 
1956167,418,99514,000,000 14,339,91773,910,717 

A comparison of taxation revenue and total private income and national income is afforded by the following table, which also shows taxation as a percentage of private income and national income.

YearTotal Private IncomeNational Income at Factor CostTaxation Revenue
TotalAs a Percentage of—
Private IncomeNational Income

* Provisional.

 £m.£m.£m.Per CentPer Cent
1945-46360.3346.2115.031 933.2
1946-47397.1367.3113.128.530.8
1947-48446.4412.4122.327.429.7
1948-49464.2422.2130-428.130.9
1949-50526.3481.9135.625.828.1
1950-51659.1611.1157.924.025.8
1951-52675.4624.2200.529.732.1
1952-53709.1656.2199.828.230.4
1953-54786.0733.3206.826.328.2
1954-55852.6797.9234.827.529.4
1955-56902.6*846.1*244.827.128.9

The following diagram shows the extent to which taxation receipts have increased since the year 1925-26, and also the extent to which social security taxation has contributed towards this increase.

CUSTOMS AND EXCISE TAXATION.—Revenue included under the heading of Customs is exclusive of receipts from tire tax and from motor-spirits tax. Sales tax receipts are not counted as ordinary Customs revenue, although collected by the Customs Department. The following figures show Customs and excise revenue, for ordinary revenue purposes, for the last five years.

Year Ended 31 MarchCustoms Duties*Beer DutyTotal Customs and Excise DutiesProportion of Total Taxation

* Excise duties other than beer duty are here included with Customary duties.

† Exclusive of social security and, from 1955, national roads taxation.

 £££Per Cent
195232,599,5965,273,80437,873,40024.13
195327,273,2065,466,70132,739,90721.22
195426,343,3035,833,87132,177,17420.48
195527,968,8656,208,35934,177,22421.03
195630,065,5716,567,30236,632,87321.88

Increases in the rate of beer duty and in the tax on motor spirits, for general revenue purposes, were brought into operation on 2 August 1939. As from 27 September 1939 additional duties were imposed on certain items (including beer and tobacco, which two items were subject to still further increases in duty as from 11 May 1942); the additional revenue in these cases was appropriated for war purposes, and paid direct into the War Expenses Account until 1 April 1946, and thereafter into the Consolidated Fund. The duty on tea was reduced by 3d. a pound from 3 September 1951. The motor spirits tax was reduced by 2d. a gallon for the period 3 September 1951 to 25 November 1953, thereafter being increased by 3d. a gallon and all receipts paid into the National Roads Fund. Information in regard to these increases and Customs and excise duties generally is contained in Section 10d, Customs Tariff and Revenue.

ROADS TAXATION.—The National Roads Act 1953 provided for the establishment of the National Roads Board which became the successor to the former Main Highways Board. In contrast to the latter, which exercised responsibility for the State and main highways system only, the National Roads Board has power to administer a national roading system. The revenues received by the former Main Highways Board and a summary of the taxation provisions governing those revenues since 1922 may be found in previous issues of the Year-Book.

The National Roads Fund, also established by the 1953 Act, derives its revenues from a tax on motor spirits (at present 1s. 3d. per gallon), registration and licence fees of motor vehicles, heavy traffic licence fees, a milage tax on vehicles not using motor spirits, and a tax on imported tires (details of the origin of these are also given in earlier Year-Books); other revenues of the Fund, which are not classed as taxation, consist of a Government contribution, interest earned, and miscellaneous receipts—i.e., for the transfer of materials, etc.

Taxation receipts for roads purposes have been as follows during the last five years.

£

Year Ended 31 MarchRegistration and Licence Fees, etc., Under Transport Act 1949Tire TaxMotor-spirits TaxationMilage TaxHeavy Traffic FeesTotal
19521,000,49640,1633,459,66432,153 4,532,476
1953995,57725,2243,814,22736,745 4,871,773
19541,090,58317,5515,002,85953,685 6,164,678
19551,864,97228,57112,043,296170,8581,974,71016,082,404
19562,076,87727,53313,014,483206,7742,173,39817,499,065

Note.—Taxation receipts for 1954-55 and 1955-56 are not directly comparable with those for previous years, as the full amount of tax (less collection costs and refunds in certain cases) is now credited to the National Roads Fund; in earlier years, only a proportion of the tire, milage, and motor-spirits taxation was regarded as highways taxation, the remainder being ordinary Customs revenue in those years. Heavy traffic fees were also formerly retained by local authorities.

LAND AND INCOME TAX.—A brief history of the various changes in the rates of, and the law relating to, land tax and income tax between 1915 and 1939 is contained in the 1940 and previous issues of the Year-Book. The principal alterations which have taken place since 1939 are given in the following pages; these changes have now been incorporated in the Land and Income Tax Act 1954, which consolidated all previous legislation into one enactment, but made no substantial change in the law.

The Land and Income Tax Amendment Act of 1940 extended the special exemption in respect of children to include children brought to New Zealand under any Government scheme and being supported by any taxpayer; unpaid land tax, once registered, was constituted a first charge on land until all arrears were paid; and a new scale of basic rates of income tax was provided. This scale of basic rates remained unaltered until the 1954 amendment increased each rate by 6d. in the £1. The maximum rate was not changed. The basic rates were subject to a percentage increase or decrease according to the revenue requirements for the year. The 1941 amendment also brought the provisions for taxation of banking companies into line with those for other companies.

Under the Finance Act 1942 the Commissioner of Inland Revenue was empowered to require any person to deduct income tax from payments due to defaulting taxpayers and to pay every sum so deducted to the Commissioner.

The Land and Income Tax Amendment Act 1944 increased the personal exemption of absentees from £50 to £200, and also made provision for deductions from assessable income in respect of deferred maintenance of assets where reasonable and proper maintenance was prevented by conditions arising out of the war. It has since been provided that all deferred maintenance deposits existing at 31 March 1960 are to be refunded forthwith.

The Land and Income Tax Amendment Act 1945 increased, commencing with the tax year 1946-47, the special exemption in respect of a dependent wife or husband from £50 to £100. It also made provision for a special depreciation allowance, commencing with the tax year 1946-47, in respect of any premises, plant, or machinery acquired, erected, installed, or extended by a taxpayer on or after 1 April 1945 and not later than 31 March 1948. The period covered by this provision was extended annually, but it was withdrawn as from 9 August 1956, excepting for those assets where a binding contract for purchase, erection, etc., had been completed before that date. This allowance was in addition to the ordinary depreciation allowance provided for by the principal Act. It was not to exceed in the aggregate 30 per cent of the cost of the asset and was normally spread over a term of five years. The 1945 amendment further provided for the names of persons convicted of tax evasion, etc., to be published in the New Zealand Gazette.

The Land and Income Tax Amendment Act 1946 made provision for an agreement to be made with the Government of any territory outside New Zealand with a view to affording relief from double taxation. Agreements have since been concluded with several countries. This amendment also abolished the excess-profits tax imposed by the Excess Profits Tax Act 1940. The 1949 amendment provided that in computing taxable income for the purposes of an aggregate assessment, a husband and wife were allowed a total ordinary exemption of £400 in all cases, irrespective of whether the income was derived from assessable or non-assessable sources. Other provisions included the deduction from a farmer's assessable income of expenditure on trees planted for shelter or to prevent erosion, etc., the spreading of income derived from the sale of timber from farms over a period of up to five years in all, the spreading of excess income derived from sale of a substantial part of the livestock of a farming business where unduly low-standard values had been adopted, and that trading stock sold for an inadequate consideration should be deemed to have been sold at the market price current at the time of the sale, for the purposes of arriving at the assessable income of the person selling the stock.

The 1950 amendment abolished the 33 1/3 per cent additional charge in the case of unearned income imposed by the 1931 amendment. In effect, the former distinction for taxation purposes between earned and unearned income was removed. The same amendment also increased the special exemption from land tax from an unimproved value of £500 to an unimproved value of £1,000. The Land and Income Tax Amendment Act (No. 2) 1950 provided for a special income tax rebate of £15 (later reduced to £10 and in 1954 incorporated in a revised exemption figure) to persons who have attained the age of sixty-five years. It also exempted from income tax the income of societies formed for the purpose of advertising, beautifying, or developing any district with a view to attracting trade, tourists, or population, and not for private profit; enabled a husband who is separated from his wife to claim an exemption in respect of his wife to the same extent as if she were a dependent relative; authorized the Commissioner to grant an initial depreciation allowance of 30 per cent in respect of new farm equipment or new accommodation for farm workers acquired after 31 March 1950 and, as subsequently extended, prior to 1 April 1958, subject to provisos where the land is sold within five years; and provided for an allowance for land-development expenditure to farmers, such as on eradication of animal or vegetable pests, felling of bush, weed destruction, and the preparation of the land for farming or agriculture. In these classes, deductions are allowed of the full amount of expenditure incurred. The allowable deduction is not to exceed £200 (now £300) in the aggregate in any income year where the expenditure is on swamp drainage, irrigation channels, rabbit proofing of fences, etc., and, in the case of a partnership, applies to the whole business, not to each partner individually.

This 1950 Act as amended in 1951 also provided for testamentary annuities charged on property bequeathed by will, by Court order under the Family Protection Act 1908, or by deed of arrangement, and paid out of income, to be claimed as a deduction, and for income derived from Western Samoa and chargeable with income tax there, to be exempted from income tax in New Zealand. Certain transfers or settlements of income (not including those made prior to 24 November 1950) are to be disregarded for income-tax purposes and the transferor or settlor remains liable for tax as if these had not been made. Another section empowered the Commissioner to grant relief from payment of income tax of up to £100 without the necessity of obtaining the Minister's approval.

The 1951 amendment exempted from income tax the pay of servicemen in operational areas; provided for universal superannuation to be assessable for income tax; and that profits from dealing in property are to form part of assessable income. The 1952 amendment exempted from taxation the income of milk-treatment companies in which the shares are held wholly by persons or companies which are themselves exempt; extended the existing exemption so that any war pension or police disability pension granted by the Government of any country (including foreign) is exempt. Two sections amended the provisions in respect of standard values to be adopted for livestock. The first enabled the executor to elect that, instead of stock being valued at the date of death at market value for income-tax purposes, it may be valued either at the existing standard value or at a new standard value between the existing standard value and the market value. The second provided that where a farmer makes a gift of livestock to his child (the 1954 amendment includes grandchildren) for use in a farming business the livestock is, for income-tax purposes, to be deemed to be sold to the child at its market value or, if the taxpayer so elects, at the actual price (if any) charged to the child or at the existing standard value, whichever is the greater. This is subject to the power of the Commissioner to require the price so adopted to be increased to what he considers reasonable, having regard to standard values generally adopted. Part II of the amendment made provision as to the taxation of Maori authorities and Maoris.

By the Finance Act (No. 2) 1952 relief was given in respect of income tax payable by executors of the estates of sheep farmers who died during the year ended 31 August 1951, the period of abnormally high wool prices. Executors may apply to have the sheep owned by the deceased valued as at the date of death for taxation purposes at a "basic value," being the average of the values prevailing a year before and a year after the date of death.

The Land and Income Tax Amendment Act 1953 provided for increases in various exemptions—personal, to £230; each dependent child or other dependent relative, to £65; life insurance premiums and superannuation contributions, to £175 maximum; and the exemption for the wife or husband of a taxpayer to £100, diminished at the rate of £1 for every complete £1 of income over £100. The Act allows losses to be set off against income for the six following years instead of three as formerly. Included in the remaining provisions is one enabling a rebate of income tax on interest from the 1953 National Development Loans (since extended to any loans under the New Zealand Loans Act 1953 where the terms of the loan so provide) to ensure a minimum net return after payment of income tax and social security charge of not less than £2 per cent. The Land and Income Tax Amendment Act (No. 2) 1953 provides that a farmer may make deposits with the Commissioner of Inland Revenue to provide a reserve for making good any losses of livestock or income resulting from snow. Deposits (not to be less than £250) are to be deducted from assessable income for the year in which made, and added to income in the year in which refunded.

The amending Act of 1954 increased the personal exemption to £375 (£420 if over 65 years of age) and abolished the general tax rebate of £15, or £25 if over 65 years. The wife's exemption was increased to £125, reducible £1 for £1 where the wife's income exceeds £125. The exemption for each child or other dependent relative was raised to £75. The limitations under which the exemptions for wife or children could not result in tax reductions of more than £26 were abandoned. The aggregation of the incomes of husband and wife takes place only where the incomes of both were not less than £500. The first £500 of the wife's income is taxed at the rate applicable to that amount, after allowing any exemptions to which she is entitled. The balance of the wife's income is aggregated with the income of the husband, and he is allowed the balance of the wife's special exemptions (if any) with the exception of her personal exemption.

The basic rates of tax were amended by making the commencing rate 3s. in the £1 instead of 2s. 6d. It also changed the method of ascertaining the amount of tax when non-assessable income (e.g., company dividends) is included by reinstating the former method of assessing the tax on the taxable income at the rate applicable to the total income. Trustees are now allowed a special exemption of £200 as a deduction from income to which the beneficiaries are not entitled in possession during the same income year.

As stated earlier, the whole of previous legislation was consolidated in the Land and Income Tax Act 1954.

The 1955 amending Act extended the exemption from income tax of certain milk treatment corporations to other similar corporations. It also exempted veterinary clubs and herd improvement associations. Provision was made for the apportionment over three years on income derived by land dealers from the disposition of land to the Crown. The acceptance of further deferred maintenance deposits was discontinued and any deposits remaining after 31 March 1960 are to be refunded forthwith. The proprietary company provisions were limited to shareholders that were companies.

The Land and Income Tax (Annual) Act 1955 introduced a rebate of 20 per cent from the basic rates of tax with a maximum of £75. This was the first occasion since the introduction of the basic rates that a percentage decrease from basic rates was given; in all previous years there was either a percentage increase or the basic rates applied without either percentage increase or decrease. The rebate applies only to other taxpayers (individuals) and not to companies, etc.

The special exemption for dependent relatives may now be claimed where the relative is receiving a monetary benefit from the social security fund. The 1956 Land and Income Tax Amendment Act also provided that whore a farmer was obliged to sell livestock because his lease had expired or his farm had been acquired by the Crown, the excess income represented by the difference between standard and selling values of livestock may be carried forward for the next one or two income years and offset by the writing down of substituted livestock to a new standard value. The special depreciation allowance was withdrawn as from 8 August 1956 unless a binding contract had been completed before that date. The existing initial depreciation provisions were extended to 31 March 1958. The amending Act also provided for the transfer of the administration of income tax law from the Commissioner of Inland Revenue to the local Collector on the passing of an Ordinance providing for local income tax, in the Cook Islands or Niue. The penalty for tax remaining unpaid after due date was increased from 5 to 10 per cent, subject to a remission of a one-half of an additional tax if paid within three months after due date. (Penalties for late payment of land tax and social security charge were also amended to make the late payment penalty identical for all three forms of taxation.) The Commissioner is not now to issue a taxation clearance certificate to any person adjudged bankrupt within the last three years, unless he has been discharged from bankruptcy or certain other conditions have been satisfied.

The Land and Income Tax (Annual) Act 1956 reduced the rebate from the basic rates of tax from 20 per cent to 10 per cent, with a maximum rebate of £40.

Statistics relating to the incidence of income tax are given in Section 35 of this volume.

Land Tax.—Land tax is assessed on the unimproved value of land after deductions provided for by statute have been made by way of special exemption. The ordinary exemption, which was formerly £1,000, was increased by the Land and Income Tax Amendment Act 1954 to £3,000, reducible by £1 for each £2 in excess of the excess of the unimproved value over £3,000. The exemption thus disappears at £9,000.

Where the land is subject to a registered mortgage an alternative scale of exemption is provided—viz., £7,500 in cases where the unimproved value does not exceed £7,500, the exemption of £7,500 being diminished by £1 for every £1 above the margin of £7,500 of unimproved value, and disappearing altogether at £15,000. Where the capital value of the mortgage is less than the amount of deduction provided, such capital value is deducted instead.

The taxpayer receives whichever is the greater of the ordinary exemption or the mortgage exemption.

No special exemption is allowed in the case of land not situated in a borough when such land has been owned by a person for three years and not improved to the extent of £1 per acre or equal to one-third of the improved value if, in the opinion of the Commissioner, it should have been so improved. In the case of such land also, the rate of land tax is 50 per cent more than the ordinary rate.

In lieu of the special exemptions set out above, the Commissioner has discretionary powers to grant relief in certain specified cases of hardship. Subject to deductions provided, life tenants are liable to tax, and joint owners are assessed jointly as regards the land held in conjunction, and are liable severally in respect of each owner's interest in such land and any other land. This liability for joint assessment also applies to companies owning land if half of the paid-up capital or half (in nominal value) of the allotted shares of each company is held by or on behalf of shareholders in the other.

In case of default by a taxpayer in respect of land tax the amount of tax may be demanded from his successor in title, from a tenant of the taxpayer or his successor, or from a mortgagee of the estate or interest concerned. Land tax constitutes a charge on the land, and, notwithstanding any disposition of it, such land continues to be liable in the hands of a purchaser or other holder thereof for the payment of the tax so long as the charge remains in force. Registration of the charge is required, and no disposition of the land or of any interest in it may be registered while the charge remains in force. Provision is made for relief in cases of hardship.

Where the unimproved value on which land tax is payable does not exceed £10,000 the rate of land tax is 1d. in the pound. This rate is increased on a "step" system as follows:

Taxable Value £ £Tax Rate for Every £1
10,001-15,0002d.
15,001-20,0003d.
20,001 and over4d.

Income Tax.—Individuals pay tax on the amount of taxable income (i.e., the assessable income less any special exemptions to which the taxpayer is entitled).

These special exemptions are—

  1. A personal exemption of £375 (£420 if over 65 years of age).

  2. A wife's (or husband's) exemption of £125, diminished £1 for each £1 of the wife's (or husband's) income in excess of £125.

  3. An exemption, not exceeding £125, for payments to a housekeeper who is employed by a widowed, divorced, or unmarried person to have the care and control of children.

  4. An exemption, not exceeding £75, of the amount contributed to the support of any relative. The term relative includes children, grandchildren, and foster children. The exemption is normally allowed for children up to the age of eighteen years.

  5. An exemption, not exceeding 15 per cent of the assessable income with a maximum of £175, for life insurance premiums, contributions to superannuation funds, etc.

  6. Absentees are only entitled to the personal exemption.

Any expenditure or loss exclusively incurred in the production of the assessable income may be deducted from the total income derived. Depreciation is allowed. On premises, the allowable depreciation rates vary from 2 1/2 per cent on cost price for wooden walled and framed buildings to 1 per cent on cost price for buildings of reinforced concrete. Various rates of depreciation allowances have been fixed by the Commissioner of Inland Revenue for different classes of plant, machinery, and equipment. These are normally expressed as percentages of the diminishing value of the asset. Special depreciation of premises was discontinued from 9 August 1956, excepting for those assets where a binding contract for acquisition, erection, or extension had been completed before that date. A further type of depreciation allowance also exists. This is initial depreciation and is allowed to farmers for new equipment or new farm accommodation for farm workers, and in the case of other types of business for providing new accommodation for employees. The allowance is 30 per cent and it is not spread over a term of years.

Companies pay tax on their assessable incomes (i.e., there are no special exemptions to be deducted as in the case of individuals) before the distribution of dividends. Recipients of income from dividends do not pay income tax on such income, but the amount is taken into account in fixing the rate of tax payable on other income. The same principle applies to income derived from "tax-free" Government securities and "tax-free" company debentures.

Certain specified incomes and types of income are exempt from income tax. The incomes of local and public authorities (excepting for certain Government trading departments), building societies, co-operative dairy and milk treatment companies, trustees of superannuation funds, friendly societies, charitable societies, and others of similar character are exempt from income tax. The general principle is where any society or association carries on business exclusively for the purposes for which it was established and does not operate for the private pecuniary profit of any individual, the income is exempt from income tax. Monetary benefits from the Social Security Fund (excepting the Universal Superannuation Benefit), sick benefits from friendly societies, workers' compensation payments, war pensions, etc., are exempt income.

The rates of income tax for the year ended 31 March 1957 (income year ended 31 March 1956) are as follows.

Debentures Issued by Companies and Local and Public Authorities.—(i) Where the income has been derived from debentures issued by a company on terms providing for the payment of income tax by the company, the rate of tax is 8s. 8d. per £1; (ii) in other cases where the income has been derived by a company or a public authority, the rate of tax is 12s. per £1.

Maori Authorities.—On all undistributed income assessable to a Maori Authority, the basic rate of tax for every £1 of taxable income is 2s. 6d.

Companies and Public Authorities.—On income not already specified, the rate of income tax for every £1 of taxable income in the case of companies and public authorities is: (i) where the taxable income does not exceed £6,300, 2s. 6d., increased by 1/100d. for every £1 of taxable income; (ii) where the taxable income exceeds £6,300, 7s. 9d., increased by 1/150d. for every £1 of the taxable income in excess of £6,300, but so as not to exceed in any case the rate of 8s. 8d. per £1.

Other Taxpayers.—On all income not included above, the rate of income tax is as follows, subject to the concessions outlined below: On so much of the taxable income as does not exceed £100, the rate of tax per £1 is 3s. 0d.; for each succeeding £100 or part thereof the rate of tax increases by 3d. until it reaches a maximum of 12s. for every £1 in excess of £3,600. A rebate of 10 per cent of the amount of the tax, with a limit of £40, is allowed to "other taxpayers" only. Aggregated assessments are allowed the rebates which would apply if the husband and wife were separately assessed.

The following table shows the amount of income tax payable on various amounts of assessable income by individual taxpayers classified according to marital status (married or otherwise) and, in the case of married taxpayers, according to the number of dependent children under eighteen years of age. Limitation of space precludes the inclusion of cases where there are more than three children, but, as stated earlier, an exemption of £75 is allowed for each child. The amounts of tax shown are based on the rates in force for the tax year 1956-57, and thus relate to incomes received during the income year 1955-56. In all cases, it has been assumed that the wife's income did not exceed £125, that there was no non-assessable income, and that the taxpayer was not over 65 years of age. In addition to the personal and dependant's exemptions, which have been allowed for in calculating the amount of tax which is shown in the table, further deductions from the assessable income would be made in respect of life-assurance premiums, National Provident Fund, superannuation, and similar contributions.

The opportunity has also been taken to show the amount of the social security charge. This tax, which is payable in addition to income tax, is referred to under a later heading. The present rate is equivalent to 1s. 6d. per £1 of income, and it should be noted that, unlike income tax, there are no deductions (personal, dependent relatives, etc.), the charge being levied on the full amount of income.

Assessable IncomeSocial Security ChargeIncome Tax Payable by Persons—
UnmarriedMarried With Dependent WifeMarried With Dependent Wife and—
One ChildTwo ChildrenThree Children
££s.d.£s.d.£s.d.£s.d.£s.d.£s.d.
30022100               
4003000376            
500371001732            
6004500321313100376      
7005210048111282617326150   
80060006550431763213201631026
9006710083105601504811136002495
1,0007500102189781506550526339189
1,500112100216161118512616718215015013432
2,0001500035817632012629813927763256100
2,500187100547163497100468894400041239
3,0002250076826710006765064326610126
3,5002621001,0191399531509156387710084063
4,000300001,3021001,2281501,1851261,143261,10150
4,5003371001,6021001,5271001,4821001,4371001,392100
5,000375001,9021001,8271001,7821001,7371001,692100

In interpreting this table as an indication of the incidence of social security and income taxation in New Zealand, it should be noted that under the provisions of the Social Security Act a family benefit of £26 per annum is paid in respect of each child under sixteen years of age, irrespective of the income of the parents. This has operated from 1 April 1946. The family benefit is normally paid to the mother, but with her concurrence may be used as an offset against income tax due. As examples of the effect of this benefit it will be observed that a married man with an income of £800 per annum and one child would pay £60 social security charge and £32 1s. 3d. income tax. He would, however, receive £26 per annum in family benefit. A married man on an income of £800 per year with three children would pay £60 social security charge and £10 2s. 6d. income tax. The family benefit would amount to £78 per annum in this case, and thus exceed his social security charge and income tax by £7 17s. 6d.

ESTATE AND GIFT DUTIES.—The law dealing with death duty is now embodied in the Estate and Gift Duties Act 1955, replacing the law formerly contained in the Death Duties Act 1921 and its amendments. The main head of taxation is estate duty, the former succession duty having been abolished for the estates of all persons dying after 20 July 1955. In addition to this there are gift duties and Maori succession duties.

Estate duties are due and payable to the Deputy Commissioner of Inland Revenue (Stamp Duties) on assessment, an additional 5 per cent penalty being payable if duty is not paid within three months after notice. Interest is charged on all duty unpaid within four months after death, at the rate of 4 per cent on duty paid within fifteen months after death and at the rate of 5 per cent on all duty unpaid within fifteen months (though this period may be extended in certain cases). Gift duties are payable at the time the gift is made, and Maori succession duties before the registration of the succession order by the Maori Land Court. Generally the decision of the Deputy Commissioner in regard to matters of fact incidental to the assessment of duty is final, but there is an appeal on points of law or of fact by way of a case stated to the Supreme Court. An appeal on a question of law may be referred to the Court of appeal.

The net revenue received from death and gift duties during each of the last five years was as follows.

£

Year Ended 31 MarchEstate DutySuccession DutyGift DutyTotal Death and Gift Duties
19525,904,4661,641,378571,4158,117,259
19536,318,9691,936,399512,4898,767,857
19546,042,1011,829,685810,5908,682,376
19556,636,6931,838,976909,4769,385,145
19566,243,9311,507,054732,8248.483,809

Estate Duty.—When the final balance of the dutiable estate of a deceased person, estimated as at the date of his death, exceeds £1,000, an estate duty is levied on the amount thereof. In the case of any estate the final balance of which does not exceed £12,000, there shall, in respect of the succession acquired by the wife (or each infant child, including stepchild, etc.) of the deceased in his dutiable estate, be deducted from the estate duty, calculated in accordance with the scale of rates set out later, an amount bearing the same proportion to that duty as the value of that succession (or the amount of £500, whichever is the less, in the case of an infant child) bears to the amount of the final balance of the estate. This is subject to a maximum allowance of the proportion that the excess of £12,000 over the final balance bears to the final balance. Exemptions for successions in estates of servicemen are calculated as a proportion of the estate duty, as in the case of a wife.

The Act provides for relief in the case of quick successions, where estate duty is payable twice on the same property by reason of two deaths occurring within a short period. The duty is reduced in the second estate according to the interval between the two deaths as follows: Second death within one year, 50 per cent reduction; within two years, 40 per cent; within three years, 30 per cent; within four years, 20 per cent; and within five years, 10 per cent reduction. Where a child of the testator dies in the lifetime of the testator leaving issue living at the testator's death, such child is to be deemed to have died immediately after the testator, for the purposes of relief from successive estate duties.

All income tax and social security charges in respect of income of a deceased person up to the date of death are treated as a debt of the deceased in all cases.

The following table gives the scale of rates of estate duty applicable to estates of persons dying on or after 21 July 1955.

Final Balance of EstateRate
£ £Scale of Rates of Estate Duty
1,001- 2,0004 per cent of the excess of the final balance over £1,000
2,001- 3,000£40 plus 5 per cent of the excess of the final balance over £2,000
3,001- 4,000£90 " 7 " £3,000
4.001- 5,000£160 " 9 " £4,000
5,001- 6,000£250 " 11 " £5,000
6,001- 7,000£360 " 13 " £6,000
7,001- 8,000£490 " 15 " £7,000
8,001- 9,000£640 " 17 " £8,000
9,001- 10,000£810 " 19 " £9,000
10,001- 11,000£1,000 " 21 " £10,000
11,001- 12,000£1,210 " 23 " £11,000
12,001- 14,000£1,440 " 19 " £12,000
14,001- 16,000£1,820 " 21 " £14,000
16,001- 18,000£2,240 " 23 " £16,000
18,001- 20,000£2,700 " 25 " £18,000
20,001- 22,000£3,200 " 27 " £20,000
22,001- 24,000£3,740 " 29 " £22,000
24,001- 26,000£4,320 " 31 " £24,000
26,001- 28,000£4,940 " 33 " £26,000
28,001- 30,000£5,600 " 35 " £28,000
30,001- 33,000£6,300 " 32 " £30,000
33,001- 36,000£7,260 " 34 " £33,000
36,001- 39,000£8,280 " 36 " £36,000
39,001- 42,000£9,360 " 38 " £39,000
42,001- 45,000£10,500 " 40 " £42,000
45,001- 48,000£11,700 " 42 " £45,000
48,001- 51,000£12,960 " 44 " £48,000
51,001- 54,000£14,280 " 46 " £51,000
54,001- 57,000£15,660 " 48 " £54,000
57,001- 60,000£17,100 " 50 " £57,000
60,001- 64,000£18,600 " 47 " £60,000
64,001- 68,000£20,480 " 49 " £64,000
68,001- 72,000£22,440 " 51 " £68,000
72,001- 76,000£24,480 " 53 " £72,000
76,001- 80,000£26,600 " 55 " £76,000
80,001- 85,000£28,800 " 53 " £80,000
85,001- 90,000£31,450 " 55 " £85,000
90,001- 95,000£34,200 " 57 " £90,000
95,001- 100,000£37,050 " 59 " £95,000
100,001 and over40 per cent of the final balance "

Maori Succession Duty.—Where any succession order is made by the Maori Land Court on the death of a Maori no death duty in the ordinary way is payable on the property included in it, but a Maori succession duty of 2 per cent is payable on the value of the property, reduced where necessary so as not to exceed the amount by which that value exceeds £1,000. There is a general exemption from succession duty if the property is of less value than £1,000.

Gift Duty.—A gift means any disposition of property (situate in New Zealand at the time of the gift) which is made otherwise than by will, whether with or without an instrument in writing, without fully adequate consideration in money or its equivalent. There is provision for a deduction from the value of the gift of money payments adequately secured to the donor and which were fixed or ascertainable at the date of the gift. No duty is payable on a gift which, together with the value of all other gifts (not exempt from duty by reason of their nature) made at the same time or within twelve months previously or subsequently by the same donor to the same or any other beneficiary otherwise than by way of a charitable trust, does not exceed the value of £500. Gifts up to £50 in any year to the same person are not taken into account for gift duty or estate duty if made as part of the donor's normal expenditure. Various other exemptions, including gifts to any charitable trust, were contained in the 1955 Act.

The amount of the gift duty is payable by either the donor or the beneficiary, but the beneficiary is entitled to be indemnified by the donor unless the terms of the gift provide otherwise. Particulars of any gift made are required to be furnished for assessment of duty within one month of the date of the gift, and if not paid within one year of making of the gift a 10 per cent penalty is imposed. Where duty is payable, the rate is based on the following scale.

Value of Gift (Together with Value of All Aggregated Gifts)Rate
£ £Scale of Rates cf Gift Duty
501- 1,0005 per cent of the excess of the value over £500
1,001- 2,000£25 plus 7 per cent of the excess of the value over£1,000
2,001- 3,000£95 " 9 " £2,000
3,001- 4,000£185 " 11 " £3,000
4,001- 5,000£295 " 13 " £4,000
5,001- 6,000£425 " 15 " £5,000
6,001- 7,000£575 " 17 " £6,000
7,001- 8,000£745 " 19 " £7,000
8,001- 9,000£935 " 21 " £8,000
9,001- 10,000£1,145 " 23 " £9,000
10,001- 11,000£1,375 " 25 " £10,000
11,001- 12,000£1,625 " 27 " £11,000
12,001- 14,000£1,895 " 23 " £12,000
14,001- 16,000£2,355 " 25 " £14,000
16,001- 18,000£2,855 " 27 " £16,000
18,001- 20,000£3,395 " 29 " £18,000
20,001- 22,000£3,975 " 31 " £20,000
22,001- 24,000£4,595 " 33 " £22,000
24,001- 26,000£5,255 " 35 " £24,000
26,001- 28,000£5,955 " 37 " £26,000
28,001- 30,000£6,695 " 39 " £28,000
30,001 and over25 per cent of the value, less £25

STAMP DUTIES.—The term "stamp duties" covers a miscellany of items of taxation imposed by the Stamp Duties Act. The 1951 Finance Act exempted comprehensive motor vehicle insurance policies from stamp duty. The 1952 amendment to the 1923 Act abolished the duty of 2d. on receipts as from 8 August 1952, and exempted from stamp duty all agreements to which the Crown is a party.

The law is now contained in the Stamp Duties Act 1954. The 1956 amendment exempts from stamp duties agreements (other than hire-purchase agreements) for sale of goods.

The receipts for the last five years are shown under the various heads of stamp duties revenue.

£

Year Ended 31 March
19521953195419551956
Adhesive stamps237,923226,416186,873166,60459,764
Duty on instruments1,436,5881,309,3711,484,5341,754,3081,522,358
Fines and penalties2,9853,1022,8352,52512,035
Impressed stamps422,132428,010452,310492,526519,842
Licences to companies139,492    
Sharebrokers' licences1,699    
Racing taxation2,628,3843,301,8253,752,9223,974,1724,065,155
Amusement tax308,976396,306401,704416,797440,229
Lottery duty25,88937,49645,86443,62366,850
Miscellaneous3,509  55,030104,940
      Totals5,207,5775,702,5266,327,0426,905,5856,791,173

Some of the more important items included in the foregoing table are dealt with in more detail under subsequent headings.

RACING TAXATION.—The Government tax on totalizator (pari mutuel) turnover is 5 per cent of the gross amounts passed through the machines. This percentage was substituted in August 1930 (by Part I of the Finance Act 1930) for the former rate of 2 1/2 per cent, which had been in force since March 1910, prior to which the percentage was 1 1/2. A refund of 2 1/2 per cent, raised from 1 1/4 per cent by the Finance Act (No. 2) 1935, of gross totalizator takings (up to a limit of £500) could be made to a racing club, the Minister of Internal Affairs having the right to specify the purpose or purposes for which the amount refunded in any case is to be applied.

By the Finance Act 1951 the tax on totalizator turnover and the refund (up to £500 limit) provisions are combined, so that clubs pay a reduced rate of duty (at the rate of 2 1/2 per cent on the first £20,000 of gross totalizator turnover received by a club in any year and 5 per cent on the balance in excess of £20,000), but are not entitled to any refund. The Consolidated Fund and the clubs each receive the same amounts of revenue under the new system as they did under former arrangements.

For some years prior to 1939-40 special provision was made annually for the racing clubs to retain for their own use a proportion of the totalizator duty payable under the Stamp Duties Act. From 1 April 1932 to 31 March 1934 the proportion was one-fifth, for the next twelve months it was one-tenth, and from 1 April 1935 to 31 March 1939 the former proportion of one-fifth was in operation.

From 1 November 1915 a tax of 1 per cent was imposed on the total value of all stakes, and a tax of 2 1/2 per cent on totalizator dividends, in addition to the tax on totalizator turnover. The tax on dividends is computed on the gross amount paid into the totalizator for any horse race after deducting 12 1/2 per cent (raised from 10 per cent by the Finance Act 1930) to cover the tax on totalizator turnover and the club's commission. From 22 December 1921 the tax on stakes was increased to 10 per cent and that on dividends to 5 per cent. From 1 April 1924 the tax on stakes was reduced to 5 per cent, with a further reduction to 1 per cent from 1 August 1935.

The Gaming Amendment Act 1955 made provision for the Minister of Internal Affairs to grant totalizator licences for not more than eighteen days of racing in addition to the existing number of 362 days in any racing year. The Totalizator Agency Board, established by the Gaming Amendment Act 1949 to conduct off-course betting, receives 7 1/2 per cent of the turnover made through totalizator agencies, and a levy for five years from 1 November 1950 of an additional 1/2 per cent of all totalizator turnover prior to the payment of dividends was deducted by racing clubs and paid to the Board. The proceeds of this levy were used solely for capital expenditure, to meet operating losses, and to create reserve funds for these purposes, the proceeds being exempt from income and social security taxes. The Gaming Amendment Act 1953 provides for the continuation of the 1/2 per cent levy for a further period of five years from 1 November 1955 to 1 November 1960, but during that period the levy is to be paid, where the levy is deducted by a racing club or hunt club, to the New Zealand Racing Conference and, where it is deducted by a trotting club, to the New Zealand Trotting Conference. Each Conference is to pay the moneys received by it into a separate account, which is to be applied solely for the purpose of assisting clubs to provide, maintain, and replace amenities for the public and course improvements on their courses. The proceeds of the levy and the amounts paid by the Conferences to clubs are not to be subject to income tax or social security tax.

The following figures relate to the racing year, which ends on 31 July.

Year Ended 31 July
19521953195419551956

* The Totalizator Agency Board commenced operations in April 1951.

† Retained by the clubs.

‡ The Finance Act 1951, by amending the provisions relating to payment of totalizator duty, obviated the payment of refunds.

Number of racing days359359362361369
Number of races2,8722,8762,8962,8892,952
 £££££
Amount of stakes1,589,7631,530,1901,561,0081,604,0301,614,616
  Totalizator turnover—
On course27,401,28923,780,23324,076,24724,012,34422,910,690
With T.A.B.*3,546,79013,059,13818,291,95919,727,33921,145,667
      Totals30,948,07936,839,37142,368,20643,739,68344,056,357
Amount paid in dividends25,474,62030,348,18534,907,59236,031,85436,291,562
Government taxes—
On totalizator turnover1,547,4041,779,6382,054,5492,130,6962,147,852
On dividends1,345,8971,602,3631,842,8701,901,5201,916,296
On stakes15,89815,30215,61016,03916,146
      Totals2,909,1993,397,3033,913,0294,048,2554,080,294
Percentage of totalizator turnover retained by clubs2,317,3462,822,7753,236,1163,331,8653,359,193
Unpaid fractions108,067102,223115,239125,050121,178
Refunds of taxation granted to clubs153,361
Levy of 1/2 per cent for Totalizator Agency Board154,745184,196211,841218,698220,277

For the financial year ended 31 March 1956 Government receipts from racing taxation amounted to £4.07 million, as compared with £3.97 million in 1954-55.

The rising tendency in the volume of betting as measured by totalizator turnover continued during the racing year ended 31 July 1956. For this period a record amount of £44.1 million was handled by totalizators, as compared with the previous highest figure of £43.7 million in 1954-55. The volume of turnover handled by the Totalizator Agency Board accounted for the increase, the turnover with this organization amounting to £21.1 million in 1955-56, an increase of £1.4 million over the previous year. On the other hand there was a decrease of £1.1 million in on-course betting, the figures for 1954-55 and 1955-56 being £24.0 million and £22.9 million respectively.

Of (he amount placed on the totalizator in 1955-56, 82.5 per cent was returned by way of dividends, Government taxes absorbed 9.3 per cent, the Totalizator Agency Board levy amounted to 0.5 per cent, and 7.7 per cent was retained by the racing clubs.

Of the 369 racing days in the 1955-56 racing year, 254 were devoted to racing (galloping) meetings and 115 to trotting meetings. It should be mentioned, however, that a number of racing clubs include trotting events in their programmes, but there are no trotting clubs which cater in a similar manner for gallopers. Of the total turnover during the year, £33.9 million was placed at racing meetings and £10.1 million at trotting meetings, giving an average of £133,582 per day for racing clubs and £88,055 per day for trotting clubs. Stakes paid at racing meetings totalled £1,140,000, the average amount per race being £561, while at trotting meetings the total was £475,000, and the average amount per race £516.

Doubles totalizator turnover increased from £11.7 million in 1954-55 to £12.6 million in 1955-56. This is an increase of £0.9 million or 7.4 per cent. Of the total doubles turnover £10.6 million was placed at racing meetings and £2.0 million at trotting meetings.

AMUSEMENT TAX.—A form of tax first introduced in 1917 is the amusement tax, levied on payments for admission to entertainments. The present authority is the Amusement Tax Act 1955, consolidating previous legislation. Earlier legislation freed from amusement tax all entertainments not included in the new definition of entertainment; in particular, lectures and wholly amateur concerts, and all games and sports and field events except those specifically mentioned being exempt. Entertainments taxable are horse race or dog race meetings; professional boxing or wrestling; any circus or an animal rodeo where the performers, producers, or managers are paid, not being a rodeo promoted by an agricultural and pastoral society; speedway motor racing where performers, producers, or managers are paid; motion picture shows, but not lectures illustrated by motion pictures; and any stage performance (play, ballet, vocal or instrumental performance, variety show, or other exhibition, not being a lecture or talk or band contest) in a theatre or hall where the performers, producers, or managers are paid.

Exemptions re-enacted are—(a) where proceeds are devoted to charitable purposes in New Zealand or elsewhere, where the performers receive no part of the proceeds and expenses are reasonable, (b) those promoted by the National Council or a Regional Council of Adult Education, if net proceeds are devoted to cultural and educational purposes approved by the National Council, (c) plays, ballets, and musical entertainments promoted by certain New Zealand non-profit societies, if the proceeds are devoted to the objects of the society, and expenses are reasonable, and (d) primary or post-primary school entertainments performed by the school pupils (with or without staff), if the proceeds are devoted to objects of the school and the expenses are reasonable. Charitable purposes include relief of poverty, advancement of education or religion, or any other matter beneficial to the community.

The following net amounts have been collected during the last eleven years.

Year Ended 31 MarchAmount Collected
 £
1946178,450
1947226,569
1948221,209
1949243,766
1950256,716
1951236,373
1952308,976
1953396,306
1954401,704
1955416,797
1956440,229

FILM-HIRE TAX.—Part V of the Finance Act 1930 imposed, as from 1 July 1930, a film-hire tax, which is payable monthly by holders of renters' licences under Part IV of the Cinematograph Films Act 1928.

The film-hire tax payable is assessed on the net monthly receipts derived by the renter from renting sound-picture films. On British Commonwealth films the tax is 10 per cent and on foreign films 25 per cent of the net receipts. Films made wholly in New Zealand are exempt from the tax. The film-hire tax yielded a revenue of £112,541 in 1951-52, £135,348 in 1952-53, £131,190 in 1953-54, £135,959 in 1954-55, and £142,020 in 1955-56.

SOCIAL SECURITY TAXATION.—The Social Security Act 1938 provided for the establishment of a Social Security Fund with special taxation (as from 1 April 1939) superseding employment promotion taxation.

Under the original Act the contributions to the Social Security Fund consisted of a registration fee and a charge on salaries, wages, and other income for all persons over sixteen years of age. For males over twenty years of age the registration fee was 5s. per quarter, and for all other persons over sixteen years of age 5s. per year; while for all persons over sixteen years of age the charge on salaries, wages, and other income was 1d. in every 1s. 8d. or part thereof. The Finance Act (No. 2) 1945 abolished the registration fee, the effective date being 1 April 1946. The same Act increased the social security charge to 1 1/2d. for every 1s. 8d., the new rate applying to all salaries and wages in respect of any period after 12 May 1946, and in the case of income other than salaries and wages to all such income derived during the year ended 31 March 1946 and subsequent years. The income of companies was exempt from the former employment promotion taxation, but is liable for social security taxation.

Receipts from social security taxation during each of the last five financial years have been as follows.

£

Year Ended 31 MarchCharge on—Total
Salaries and WagesOther Income
195224,318,13819,294,73043,612,868
195326,650,92218,857,01645,507,938
195428,714,79021,002,58649,717,376
195532,423,83123,751,32056,175,151
195635,272,65424,638,06359,910,717

SALES TAX.—Sales tax was inaugurated in New Zealand on 9 February 1933. Numerous classes of goods were exempt from the tax, these being, in the main, commodities of primary production, articles used in the primary industries, machinery for use in manufacture, and the more important foodstuffs for household consumption. Goods exported from New Zealand were exempt, as were also certain commodities (e.g., motor spirits) which were subject to special taxation.

The tax was at the rate of 5 per cent of the sale value of the goods to which it applied, but in June 1940 and again in May 1942 increases of a further 5 per cent and 10 per cent respectively were made for war taxation, the extra revenue thus accruing being paid direct to the War Expenses Account. Certain items, such as apparel, footwear, woollen piece-goods and yarns, and certain additional foodstuffs, were exempt from the additional 10 per cent, but in the case of wine manufactured in New Zealand an additional charge of 20 per cent was added until its removal dating from 3 September 1951. As from 1 April 1946 the total receipts from this tax have been credited to the Consolidated Fund. As from 16 August 1946 a number of classes of goods previously subject to the tax have been exempted, the principal of these being building materials, furniture, clothing, and footwear. Further items exempted from sales tax, chiefly home labour-saving devices, were notified as from 10 March 1950. As from 25 August 1950 a wide range of articles commonly used in homes, together with some items more particularly used by farmers, were also exempted from sales tax, further exemptions being made as from 27 August 1953. Further exemptions, including soap, toothpaste, and toilet brushes and combs, much sporting and athletic equipment, aerated waters and cordials, torches, rope, lawn mowers, tableware and kitchen utensils, were made from 23 July 1954, while from 21 July 1955, a further list of exemptions was made, the most important items exempted being bicycles, clocks, and medicinal preparations and drugs. Discount ranging from 1 to 2 1/2 per cent (reduced from 5 per cent in June 1940) of the amount of tax otherwise payable is allowed for prompt payment. The tax is not a turnover tax, being payable once only and, as far as possible, at the point where the goods pass to the retailer. The Sales Tax Act is administered by the Customs Department. The net amount yielded by the sales tax during each of the last five years has been: 1951-52, £21,811,375; 1952-53, £21,991,703; 1953-54, £21,133,740; 1954-55, £22,621,119; and 1955-56, £23,443,498.

Monthly figures of sales tax collected during the four calendar years 1953-56 have been as follows.

£

MonthTotal Sales Tax Receipts
1953195419551956
January1,845,0741,819,6941,974,3332,141,145
February766,6631,062,6991,170,7431,556,915
March2,170,6022,397,8642,657,0531,756,432
April1,681,3261,926,7561,884,3881,577,628
May1,617,7181,687,4322,135,3072,060,691
June1,709,2692,003,2082,059,9651,717,368
July1,705,1811,983,1861,897,0711,861,377
August1,618,0471,867,3011,948,8401,824,052
September1,819,3631,816,2252,117,191785,016
October1,768,1541,731,0842,195,0892,946,508
November1,532,0042,034,5802,091,1361,980,545
December2,389,7981,986,3622,085,2791,817,561

The collections during a month relate in general to sales during the preceding month.

The foregoing statistics indicate, in a measure, the comparative distribution of merchandise trading operations throughout the year. The following table of receipts from the sales tax gives some indication of comparative trading operations in the principal centres. These figures and those in the preceding table are compiled from monthly departmental returns and in most cases differ slightly from the final Treasury figures shown earlier.

£

Year Ended 31 MarchAucklandWellingtonRest of North IslandChristchurchDunedinRest of South IslandTotal*

* Includes receipts through Post and Telegraph Department.

19526,502,8609,786,7041,116,6862,635,1271,470,075704,92322,331,170
19536,316,95910,096,8661,119,6582,445,6391,445,037720,68222,216,409
19546,319,5619,039,7811,127,2012,444,5671,380,850731,22221,121,117
19556,609,03410,652,4021,029,0352,526,1131,295,442659,35422,838,263
19566,598,16811,747,649986,1642,519,8241,235,469724,23523,868,758

LOCAL TAXATION.—Local-governing authorities have power under various Acts of the Legislature to impose taxes for general or special purposes, as set out in Section 31 of this Year-Book. The amount of revenue collected by local authorities during the five years ended 31 March 1955 was as follows.

Year Ended 31 MarchRatesLicences and Other TaxesTotalPer Head of Mean Population
 ££££s.d.
195112,577,0171,240,86913,817,886741
195214,513,7661,396,10415,909,870825
195315,354,0041,481,91316,835,917877
195416,421,1271,532,12017,953,2478142
195518,259,046762,51019,021,55681611

The figures are exclusive of wharfage dues, tolls, etc., received by Harbour Boards, such receipts being regarded as in respect of charges for services.

30 C—STATE INDEBTEDNESS

GENERAL.—The principal legislative measure which is concerned with public indebtedness is the New Zealand Loans Act 1953, which consolidated the 1932 Act and its amendments, including the National Development Loans Act 1941.

The latter Act provided for the establishment within the Public Account, as from 1 April 1942, of a National Development Loans Account into which all moneys, principally by way of loans for national development, are paid. The amounts raised by loans since the inception of this Account to 31 March 1956 totalled £332,658,730, of which £19,743,245 was raised in 1955-56, including £8,050,000 from national savings accounts. Moneys are transferred from this Account as required, the amounts transferred during the last three years being given in Section 30a. The balance in the Account at 31 March 1956 was £2,403,955.

The Minister of Finance may raise loans, when authorized by Parliament so to do, by the issue of debentures, or scrip, or stock, in New Zealand or elsewhere at his discretion. When raising a loan the Minister may prescribe the mode and conditions of repayment, the rates of interest (not exceeding the maximum rate fixed by the authorizing Act), and the times and places of payment of principal and interest respectively. Power is given to convert debentures or scrip into consolidated stock, and the Minister may specify the terms of conversion at the time when a loan is raised, or arrange that terms shall be subsequently agreed upon. For the purpose of paying off or renewing at maturity any debenture, scrip, or other security, new debentures or other securities may be issued and disposed of if necessary. Authority also exists for the conversion of loan money which has not yet matured, as well as for the redemption and cancellation of securities before maturity. The management of the public debt was transferred to the Reserve Bank of New Zealand as from 1 October 1936.

The money composing the public debt has been borrowed on the security of the public revenues of New Zealand. No portion of the public estate is pledged for payment of either principal or interest.

National Savings.—The National Savings Act 1940 made wider provision for the investment of savings than the former Post Office investment certificates (£1 and upwards) issued during the First World War. Although the Act provides that investments made in accordance therewith shall be applied in like manner to receipts from the sale of the Post Office investment certificates—i.e., available for the purposes of any loan authorized by Parliament—the immediate object was to assist in financing the Second World War. Two forms of investment were provided—(a) Deposits in national savings accounts with the Post Office and certain authorized trustee savings banks, and (b) Purchase of national savings bonds. These investments are approved trustee securities, the interest rate being 3 per cent per annum from the inception of the scheme to 30 June 1956, thereafter 3 1/2 per cent per annum.

Deposits in national savings accounts cannot be withdrawn at will, but are invested for a definite period. Moneys deposited up to 30 June 1943 were repayable on 30 June 1945, and each subsequent investment period is for a term of two years—i.e., deposits made during the year ended 30 June 1956 are repayable on 30 June 1958, and so on. National savings bonds were issued in three denominations—£1, £10, and £100—for a term of five years, but the sale of these was discontinued as from 1 May 1956.

Recording of Public Debt.—At the commencement of the financial year 1943-44 a change in practice was effected in regard to the treatment of exchange on overseas transactions. As from that date the cost of exchange has been treated as a part of the payment from which it arose, and not accounted for in the public accounts under the one heading of "Exchange," as was the previous practice.

It was further decided that Government funds and investments held in the United Kingdom as at 1 April 1943 and all subsequent overseas transactions were to be converted into pounds New Zealand at a fixed exchange rate of 25 per cent and brought into the public accounts at the increased figure. Previously pounds New Zealand and pounds sterling were treated as if they were of the same value, despite the fact that New Zealand currency for many years had been at a discount on sterling.

In keeping with the foregoing decisions, that portion of the public debt domiciled in the United Kingdom, which was previously shown only at the sterling figure, was converted to pounds New Zealand, and the whole of the debt was shown in the debt tables in New Zealand currency in addition to the nominal amounts. The nominal increase resulting from the adjustment at 1 April 1943 was £39,568,574.

With the adjustment of the exchange rate as from 20 August 1948 New Zealand currency again became on a par with sterling. To facilitate comparison over a period on a common basis the public debt tables in this Section have, in general, been so shown that either nominal amounts or the amounts in New Zealand currency can be readily ascertained during the period of divergence.

The Finance Act (No. 2) 1952 in redefining the term "public debt" excluded from the debt those loans funded by agreement with the United Kingdom Government under the authority of section 8 of the Finance Act 1922. The public debt figures throughout this Section have therefore been adjusted to be on a comparable basis and exclude the amount of £24,100,200 (£(N.Z.)30,125,250 for years 1932-48—i.e., the years in which the New Zealand pound was at a discount of 25 per cent on sterling) funded in terms of the 1922 Act, and in respect of which interest payments have been suspended by agreement with the United Kingdom Government since 1931. This amount originally formed part of the First World War debt.

An amount of £2,090,909 (£N.Z.2,613,639 for years 1932-48) raised for State Advances purposes but on which interest payments have also been suspended since 1931 is also excluded from the figures.

GROSS INDEBTEDNESS.—On only five* occasions in the history of New Zealand has a reduction in the gross public debt been effected during the financial year. The first occasion was in 1891-92, when the debt was reduced by £117,282; and the second in 1922-23, when another slight reduction (£101,061) was recorded. The third occasion was in 1934-35, when the floating debt of £22,856,981—comprising outstanding Treasury revenue bills amounting to £3,452,109 and Treasury bills for £19,404,872 in respect of the Banks Indemnity (Exchange) Act—was entirely paid off. The fourth occasion was in 1947-48, the debt being reduced by £3,137,446 in New Zealand currency (having regard to exchange rate relationships existing prior to 20 August 1948), or £302,043 if nominal amounts only are taken into account. The fifth occasion was in 1951-52, the debt being reduced by £13,571,145 by the sale of State Advances stock, held by Treasury, to the Post Office Savings Bank, and an equivalent amount of Government stock, held by the Savings Bank, being redeemed.

The gross indebtedness of the General Government and the rate of indebtedness per head of population (inclusive of Maoris) for each of the last twenty-one years are given in the following table.

The figures are given in two series, the first showing the debt at the nominal amount throughout the period 1936-56, and the second, covering the same period, with the debt shown in New Zealand currency. In the latter case the amount of overseas debt has been converted to New Zealand currency at the rate of exchange ruling during the period.

At 31 MarchAmountPer Head of Population
A—Nominal Amounts
 £(000)£s.
1936256,37016218
1937261,47916415
1938264,01016411
1939277,77917019
1940296,71618017
1941323,23619711
1942359,20721916
1943437,63426716
1944500,5263049
1945537,22731916
1946568,1403238
1947578,3803234
1948578,0783165
1949614,98632917
1950643,8803387
1951667,2333446
1952653,6623297
1953667,68832714
1954704,3713378
1955728,59334118
1956735,20133719
B—In New Zealand Currency
 £(000)£s.
1936288,7071839
1937293,33218416
1938295,8921848
1939310,4451912
1940329,63420018
1941356,28221715
1942391,0982396
1943470,6552880
1944533,75532414
1945570,50033912
1946591,77333617
1947602,0133368
1948598,87532712
1949614,98632917
1950643,8803387
1951667,2333446
1952653,6623297
1953667,68832714
1954704,3713378
1955728,59334118
1956735,20133719

* See, however, page 603 of 1940 Year-Book.

It should be noted that the figures in the foregoing table are exclusive of £(N.Z.)32,739,000 (£26,191,000 sterling) in respect of which interest payments have been suspended by agreement with the United Kingdom Government since 1931. This amount consists of £(N.Z.)30,125,000 advances from the United Kingdom Government funded in terms of the Finance Act 1922, and £(N.Z.)2,614,000 (£2,091,000 sterling) raised for State Advances purposes.

Outstanding advances of £732,947 by way of overdraft are not included in the public debt at 31 March 1956. This total consists of £72,350 to the Government Insurance Account for advances for investments, £430,732 to the Marketing Account for advances for residual marketing activities, with the remaining £229,865 comprising £22,111 to the National Provident Fund Account, £52,805 to the Public Trustees' Account, and £154,949 to the State Fire Insurance Account, all for purposes of loans to local authorities.

State guarantees cover such items as the guarantee to policyholders of the Government Insurance Department under the Government Life Insurance Act 1953; the guarantee to the Reserve Bank under the Finance Act 1934 in respect of sterling exchange (which was exercised in the case of the adjustment of the New Zealand currency exchange rate to parity with sterling as from 20 August 1948); the guarantee under the Finance Act (No. 2) 1946 to the Reserve Bank in respect of moneys advanced to Governments of other countries to finance the purchase of New Zealand produce; guarantees to certain undertakings under the State Advances Corporation Act and certain local authority loans. There are also certain contingent State liabilities in respect of the Government Superannuation Fund and in respect of £26,191,000 funded debt referred to earlier.

At 31 March 1956 the amount of contingent loans outstanding in respect of State Advances Corporation stock and debentures, the major portion of which is at present held by the State in consideration of the transfer of property securities from the State to the Corporation, was £125,122,590; and in addition there was a further amount of £1,493,062 in respect of loans to industries by the Corporation.

The Hutt Road Act 1939 made provision whereby the Wellington City Council was to be kept indemnified from all liability in respect of certain loans which at the time of the passing of the Act amounted to £276,020. The amount outstanding under this agreement at 31 March 1956 was £20,600, against which the Public Trustee held sinking funds totalling £18,202.

In respect of the guarantee to the Reserve Bank for the purpose of financing purchases of New Zealand produce, credits granted as at 31 March 1956 amounted to £5,018,750 to the Government of the French Republic.

CLASSIFICATION OF PUBLIC DEBT.—A broad classification of the public debt according to nature or purpose is contained in the following table, the distinction being made on the basis of whether raised for ordinary purposes, war purposes, or housing. It should be noted that the debt is expressed in terms of nominal amounts, these differing from figures in terms of New Zealand currency for the 1940 year only.

£(000)

ClassGross Debt at 31 March
192019301940195019551956

* Includes debt due to United Kingdom Government (see p. 816).

Ordinary121,082197,600245,217358,267450,945461,539
Housing  11,55957,33189,16396,444
War loans (1914-18)80,089*69,784*36,85426,757  
War expenses (1939-45)  3,086201,526188,485177,218
      Totals201,171267,383296,716643,880728,593735,201

The amount per head of population for each class as at 31 March 1956 was as follows: ordinary, £212 3s.; housing, £44 7s.; war expenses, 1939-45, £81 9s.

A more detailed allocation of the debt for the last two years is now given. At 31 March—

 19551956

* Excludes contingent liability in respect of debt due to United Kingdom Government (see page 816).

 £(000)
Railways110,468116,209
Hydro-electric schemes99,695111,641
Post and telegraph services42,67547,828
Public buildings3,189 
Education buildings19,60015,069
Roads and highways55,62056,366
Harbours and lighthouses400 
Forests (State)11,77012,151
Housing87,07296,444
Land settlement and improvement33,25234,167
Irrigation and drainage10,9188,658
Shares in Bank of New Zealand7,7097,679
New Zealand National Airways Corporation1,2001,200
British Petroleum Co. of New Zealand Ltd.1,275 
New Zealand Woolpack and Textiles Ltd.150150
Christmas Island Phosphates1,389 
Mining7,1367,136
Tasman Empire Airways Ltd.811811
Tasman Pulp and Paper Co. Ltd.8,4008,650
Murupara Development3,7795,196
Reserve Bank exchange adjustment20,00020,000
War expenses (1939-45)188,485177,218
National Development Loans (balance)7,1912,404
Miscellaneous assets and services2,1561,992
Cash and investments in hand4,2534,232
      Totals728,593*735,201*

MOVEMENT IN PUBLIC DEBT DURING 1955-56.—A summary of transactions in connection with the public debt during the year ended 31 March 1956 is as follows.

£(000)

Amount Outstanding at
31 March 195531 March 1956+ Increase - Decrease
External debt: London97,78995,804- 1,985
Internal debt—
  Long-term debt579,804588,397+ 8,594
  Floating debt51,00051,000 
      Totals728,593735,201+ 6,608

A more detailed statement which shows also the main purposes for which loan moneys were raised during the year 1955-56 is now given.

External debt—

London—£££
  Increases—New issues for repayments in London 10.000,000 
  Decreases—
    Repayments from—
      Loans Redemption Account1,984,340  
      New issues in London10,000,000  
      Transfer to New Zealand Register1,000  
  11,985,340 
      Decrease in external debt  1,985,340

Internal debt—

Increases—
  New issues for—
    National development purposes19,743,245  
    Repayments in New Zealand15,610,469  
    Transfer from London Register1,000  
  35.354,714 
Decreases—
  Repayments from—
    Loans Redemption Account11,173,155  
    New issues in New Zealand15,587,944  
  26,761,099 
    Increase in internal debt  8,593,615
      Total increase in public debt  £6,608,275

PUBLIC DEBT CONVERSION SCHEMES AND NEW LOANS.—A scheme of conversion of practically the whole of the locally domiciled debt bearing interest higher than 4 per cent was successfully carried out in the early part of 1933. Holders had the option of dissenting, but interest on the dissented portion was made subject to an interest tax of 33 1/3 per cent. Holders who signified neither assent nor dissent were regarded as having assented.

Details of this conversion and of other conversions during the period up to 31 March 1945, together with a schedule of war loans over the period 1940-45, are given on pages 503-504 of the 1950 issue of the Year-Book. Information covering conversions and new loans from 1 April 1945 to date are given in the following paragraphs.

A conversion offer was made in London to holders of £7,580,907 4 1/2-per-cent stock repayable on 1 March 1945 and £9,657,280 3-per-cent stock repayable on 1 April 1945. New stock was offered at 3 1/4 per cent maturing on 1 September 1962-65, with a cash payment of 10s. per cent to holders who converted. Applications for new stock totalled £14,904,247, and the balance of £2,333,940 was taken up by the Reserve Bank.

A conversion offer in respect of an internal 4-per-cent loan totalling £8,931,480 maturing on 15 April 1949, but in respect of which the Government had the option to repay on or after 15 April 1946, was made in December 1945. The new securities offered were 3-per-cent stock issued at par and maturing on 15 April 1960-63. Holders of the £2,426,365 of 4-per-cent stock who did not accept the conversion offer were repaid in cash on 15 April 1946.

A conversion offer was made in London in June 1948 to holders of £16,000,000 sterling 4 1/2-percent inscribed stock maturing on 1 March 1958, with the option of repayment at par on or after 1 March 1948. New stock at 3 per cent maturing 1 September 1966-68 was issued in exchange, while of a further amount of £3,225,465 4 1/2-per-cent stock, £225,465 was repaid and the balance of £3,000,000 transferred to New Zealand domicile.

A £7,322,579 3 1/2-per-cent loan domiciled in London and maturing on 1 February 1949-54 was dealt with in June 1949 by conversion of £7,000,000 into 3-per-cent stock maturing 1 June 1973-77 and by repayment of the remaining £322,579 in cash.

In October 1949 a conversion offer was made in London to holders of £6,000,000 of a total of £7,500,000 5-per-cent inscribed stock maturing on 15 December 1949. New stock at 3 1/4 per cent maturing 15 December 1963-66 was offered in exchange, while cash applications were used for the redemption of the remaining £1,500,000 of 5-per-cent stock.

A conversion offer in June 1949 in respect of three internal loans totalling £29,235,755 at par (2 1/2 per cent maturing 15 June 1947-49, 2 1/2 per cent maturing 15 February 1949-50, and 4 per cent maturing 15 May 1949-52) resulted in £15,111,380 being reinvested in either 3-per-cent stock maturing 15 June 1961-64, or 2 1/2-per-cent stock maturing 15 June 1954-55, and repayment in cash of £14,124,375.

A 5 1/2-per-cent loan of £1,250,000 domiciled in London matured on 1 February 1951. Of this amount £331,000 was repaid and the balance converted into 3 1/4-per-cent stock maturing on 15 December 1963-66. A 5 1/2-per-cent loan of £(N.Z.)628,226 domiciled in Australia was repaid at maturity date of 1 February 1951. On 15 April 1951 two internal 2 1/2-per-cent loans matured, totalling £10,048,000. Conversion was effected of £7,900,000 before the maturity date, the remaining £2,148,000 being repaid in cash on the maturity date.

A conversion offer in October 1954, dealing with two internal loans totalling £20,140,840 at par (2 1/2 per cent maturing 15 June 1954-55 and 4-per-cent stock and debentures maturing 15 June 1952-55) resulted in £15,966,405 being reinvested in either 3 3/4-per-cent stock at par maturing 15 June 1959-60 or 3 3/4-per-cent stock at £2 per cent premium maturing 15 June 1965-66; the new securities were available as ordinary or death-duty stock. Repayment was made of £4,174,435 in cash.

In June 1955 a conversion offer was made in London to holders of £10,000,000 of a total of £11,984,340 3-per-cent stock maturing 1952-55. New 4 1/2-per-cent stock issued at £97 10s. per cent and maturing 1970-73 was offered in exchange. Conversion and new stock issued to cash applicants totalled £10,000,000, while £1,984,340 was repaid in cash.

A conversion offer was made in August 1955, 3 3/4-per-cent stock at 10s. per cent premium and maturing 15 September 1959 being offered to holders of a £9,689,560 internal loan consisting of 3-per-cent stock maturing 15 September 1955. Conversions totalled £5,691,345, the remaining £3,998,215 being repaid in cash.

A conversion offer in March 1956 dealing with four internal loans totalling £49,703,950 (3 per cent maturing 15 May 1956, 2 1/2 per cent maturing 15 May 1956, 3 per cent maturing 15 December 1953-56, and 3 1/2-per-cent stock and debentures maturing 15 January 1953-57) resulted in £23,534,250 being reinvested in either 4 5/8-pcr-cent stock maturing 15 June 1966-67 or 4 1/2-per-cent stock maturing 15 June 1961. Repayment was made of £8,903,120 in cash, while for the balance of £17,266,580 other short-term reinvestment arrangements were made.

In addition to the above classes of conversion loans, during the period 1946-50 there were four "tap" issues at par as follows: In 1946, £18,319,590 of 3-per-cent stock maturing 15 July 1961-63 were issued; in 1947, £21,402,700 of 3-per-cent stock maturing 15 July 1962-64; in 1948, £24,918,600 of 3-per-cent stock maturing 15 July 1963-65; and in 1949-50, £19,288,825 of either 2 1/2-per-cent stock maturing 15 May 1955-56, or 3-per-cent stock maturing 15 May 1964-66.

The 1950 National Development Loan was initiated in May 1950, the amount of £20,000,000 being oversubscribed by £941,670. Stock was offered either at 3 per cent repayable 15 August 1959-61, issued at 99 1/2 per cent, or at 2 1/2 per cent repayable 15 August 1954 issued at par. The 1951 National Development Loan was opened in May 1951, and the amount of £10,000,000 was oversubscribed by £3,217,810, the loan being closed earlier than the scheduled date of 27 June 1951. The stock was offered at 3 per cent at par and repayable 15 April 1960-62.

There were two issues of development loans in 1952-53; the first, the 1953 National Development Loan, was opened in May 1953, being in the nature of a £20,000,000 cash and conversion loan. Stock was offered at 3 3/4 per cent repayable on 15 May 1962 and issued at £98 10s. per cent. Either ordinary stock or death-duty stock was issued at subscriber's option, the latter being available to meet income tax and social security charge in regard to deceased holders' estates as well as death duties. A minimum net return of 2 per cent on nominal value after payment of taxes was ensured by means of income tax rebates. The conversion offer concerned the 2 1/2-per-cent stock maturing October 1953 (First War Loan) on basis of £98 10s., maturing stock being equal to £100 nominal value of new stock. Conversions totalled £6,949,770 and cash subscriptions £15,311,460. The second issue of the 1953 National Development Loan of £10,000,000 was offered in September 1953 on the same terms as for the earlier issue. This loan was oversubscribed by £183,280.

A loan of £10,000,000 sterling was negotiated in London in December 1953. It consisted of New Zealand Government 4-per-cent stock issued at £98 10s. per cent and maturing 1976-78.

The New Zealand Government in early 1954 made arrangements for a 16,000,000 dollar loan from the United States Export-Import Bank to assist in the purchase of materials, equipment, and services for the development of the Murupara project. The interest rate payable to the bank is 4 3/4 per cent.

The 1954 National Development Loan was opened in June 1954 for an amount of £30,000,000. Stock was offered at 3 3/4 per cent for (a) 5 years issued at £100 per cent, (b) 11 years at £98 per cent, (c) 15 years at £97 10s. per cent, or (d) 20 years at £97 per cent, the net yield for the three longer maturing stocks being approximately £3 19s. 6d. Ordinary or death-duty stock alternatives and minimum net return conditions were similar to those for the 1953 loan. Holders of 3-per-cent and 2 1/2-per-cent stocks maturing August 1954 were offered in exchange stock in the new loan. Cash subscriptions totalled £21,755,491, while conversions amounted to £9,386,390.

A loan of £10,000,000 sterling was negotiated in London in October 1954. It consisted of New Zealand Government 3 1/2-per-cent stock at £98 per cent and maturing 1981-84.

The 1955 National Development Loan was opened in October 1955 for an amount of £10,000,000. Stock was offered at—(a) 3 3/4 per cent for three years issued at £99 10s. per cent repayable 15 August 1958, and (b) eleven years at 4 per cent issued at £99 per cent repayable 15 August 1965-66. Ordinary or death-duty stock alternatives and minimum net returns were similar to the corresponding 1953 loan. Stock issued totalled £9,846,645.

The 1956 Progress Loan for National Development was opened in June 1956 for an amount of £10,000,000. Stock was offered at (a) 4 3/8 per cent for three years, (b) 4 1/2 per cent for five years, and (c) 4 5/8 per cent for eleven years. The loan was issued with the usual option of ordinary or death-duty stock. It was oversubscribed, the total of applications being £13,058,415 from 10,641 subscribers.

To assist its development programme the Government on 6 September 1956 made a successful issue on the London market of £5,000,000 of 5 1/4-per-cent 1978-82 stock at £96 10s. per cent.

In October 1956 the Government offered a £5,000,000 cash loan which was issued at par on the same terms as the previous internal loan earlier in the year. A total of £5,368,870 had been subscribed by 3,875 applicants when the loan closed on 23 November 1956.

DOMICILE OF DEBT.—The table following shows, for each of the eleven years ending 31 March 1956, the amount of New Zealand's public debt domiciled in London, Australia, and New Zealand. All amounts shown are exclusive of the contingent liability due to the United Kingdom Government to which reference has been made elsewhere in this subsection.

At 31 MarchAmountPercentage of Total on New Zealand Currency Basis
LondonAustraliaNew ZealandLondonAustraliaNew Zealand
 £(Stg.)= £(N.Z.)£(N.Z.)£(N.Z.)Per CentPer CentPer Cent
194694,529,174118,161,468861,300472,749,93619.970.1479.89
194794,529,174118,161,468861,300482,990,10719.630.1480.23
194883,187,566103,984,457779,000494,111,97217.360.1382.51
194979,962,10179,962,101628,226534,395,30513.000.1086.90
195078,139,52278,139,522628,226565,112,48512.130.1087.77
195177,808,24477,808,244 589,425,32511.66 88.34
195277,807,84477,807,844 575,854,580 11.9088.10
195377,790,18477,790,184 589,898,350 11.6588.35
195487,789,72887,789,728 616,581,18512.46 87.54
195597,789,37497,789,374 630,803,59513.42 86.58
195695,804,03495,804,034 639,397,21013.03 86.97

During the period covered by the table the amount of the debt domiciled in London has decreased (on a New Zealand currency basis) by £22.4 million. The amount domiciled in New Zealand, on the other hand, has risen during the ten years by £166.6 million.

MATURITY YEARS OF DEBT.—The maturity years of the debt outstanding at 31 March 1956 are shown in the following statement, which distinguishes between the various countries of domicile. All amounts shown may be regarded as being either in New Zealand pounds or in nominal amounts.

£(000)

Loans Maturing in Year Ended 31 March*Debt Maturing in—Total
LondonNew Zealand
PublicDepartmental and Other

* In respect of many of the loans the Government has the option to redeem the securities at an earlier date on giving notice.

† Excludes United Kingdom Government advance of £26,191,000.

Treasury bills  51,00051,000
1957 30.24019,47149,711
1958 21,8345,56427,398
1959 12,6614,34317,004
1960 19,84730,73250,579
19616,31120,46221,49348,266
1962 13,64123,39737,038
1963 29,07519,92348,998
19647,33925,6566,15539,150
1965 16,51310,72827,241
196617,23714,77721,19353,207
19676,91912,19113,63332,743
196915,9981,275 17,273
1970 2,34492,353
19725,000  5,000
197410.000 40,40050,400
1975 2,90244,63047,532
1976  34,60834,608
1977  53,20053,200
19787.000 15,50022,500
197910,000  10,000
198510,000  10,000
      Totals95,804223,418415,979735,201

DEPARTMENTAL INVESTMENTS.—As shown in the preceding table, £415,979,000 of the public debt outstanding at 31 March 1956 was held by various Government Departments and quasi-Government organizations. A summary of these investments for the last two years is as follows.

 At 31 March—
19551956
 £(000)
Investments held by accounts within the Public Account47,84946,036
New Zealand Broadcasting Service1,1501,350
Marketing Department250250
Government Life Insurance7,5357,559
Government Superannuation Board15,73119,123
Maori Trustee2,0972,081
National Provident Fund5,3433,127
Post Office118,068122,068
Post Office: National Savings63,45065,450
Public Trustee4,5933,842
Reserve Bank60,35660,408
State Advances Corporation2,3032,304
State Fire Insurance Office—
  Accident Branch1,3821,382
  Fire Branch1,4101,410
Dairy Industry Account14,36014,360
Meat Industry Account38,60739,109
Wool Commission Account25,67726,120
      Totals410,161415,979

PRICES OF NEW ZEALAND STOCKS.—The following table gives the quotations in London for the principal new stocks (excluding accrued interest) in December of each of the years 1945-53 and at quarterly intervals from March 1954 to December 1956.

Date3 1/4 Per Cent, 1962-653 1/2 Per Cent, 1955-603 1/2 Per Cent, 1960-644 1/4 Per Cent, 1970-735 Per Cent, 1956-71
 £s.d.£s.d.£s.d.£s.d.£s.d.
1945—Dec. 6102100 103113 11750
1946—Dec. 9112176 113113 12313
1947—Dec. 510339 10613 11613
1948—Dec. 2104189 106139 11689
1949—Dec. 2998150 100189 110163
1950—Dec. 110000 10226 110126
1951—Dec. 69339 951610 1/2 10400
1952—Dec. 491157 1/2 941610 1/2 102163
1953—Dec. 394157 1/299144 1/297610 1/2 10313
1954—Mar. 1195639981 1/297157 1/2 102144 1/2
June 395131 1/210007 1/298194 1/2 10363
Sept. 29876100144 1/299176 10357 1/2
Dec. 39807 1/2100181 1/2991610 1/2 102189
1955—Mar. 49344 1/296131 1/295194 1/2 10063
June 390181 1/29581 1/293194 1/2 100113
Sept. 284009181 1/28815091107 1/297163
Dec. 987009278 1/2896392157 1/29878 1/2
1956—Mar. 28410092181 1/288008957 1/296110 1/2
June 18313921398617689144 1/296163
Sept. 78289915086139871110 1/295144 1/2
Dec. 78112691508516385639326

INTEREST.—Of the public debt outstanding at 31 March 1932, approximately 30 per cent only of the total bore interest at a rate of 4 per cent or lower. Following on conversion operations and of a general decline in interest rates for new money in the succeeding years until very recent times, the amount of debt bearing interest at a rate of 4 per cent or under at 31 March 1956 was £716.0 million, or 97 per cent of the total debt exclusive of that portion on which interest payments have been suspended since 1931 by agreement with the United Kingdom Government, while on £519.2 million, or approximately 71 per cent, the rate did not exceed 3 per cent. Of the debt domiciled in New Zealand at 31 March 1956, no less than 78 per cent was at rates of 3 per cent or under, the remainder (or 22 per cent) being at rates which did not exceed 4 1/2 per cent. A classification of the public debt as at 31 March 1956, according to the rates of interest payable and domicile, is contained in the following table, the values being in terms of New Zealand currency.

£(000)

Rate of Interest (Per Cent)Debt Maturing in—TotalGross Annual Interest Charge
LondonNew Zealand
1 85.00085,000850
2 1/2 129,514129,5143,088
322.998281,728304,7268,779
3 1/424,15521,73445,8901,491
 23,65113,80237,4531,074
31 91,46891,4683,430
410,00011,97621,976879
4 1/410,000 10,000425
4 1/2 4,1754,175188
55,000 5.000250
      Totals95,804639,397735,20120,454

The total amount of interest payable on the public debt—i.e., the whole of the public debt less that portion upon which interest payments have been suspended by agreement with the United Kingdom Government—as at 31 March 1956 was £20,454,309, which gives an average rate of £2 15s. 8d. per cent.

The amount of interest and the average rate per cent payable on the debt domiciled in the respective markets were—

 Amount of InterestAverage Rate
 ££s.d.
London3,377,7643106
New Zealand17,076,5452135

The total of interest payments from the Consolidated Fund during the year ended 31 March 1956 was £21,000,627. Of this amount £3,338,737 was paid in London and £93,808 in New Zealand on account of debt domiciled in London, while the remaining £17,568,082 was paid in New Zealand in respect of internal debt.

The total amount of interest credited to the Consolidated Fund on account of capital liability of various enterprises during 1955-56 was £8,150,008, the contributing accounts being Post and Telegraph, £1,524,307; Electric Supply, £3,592,001; Housing Account, £1,258,458; Housing Construction, £107,686; Land Settlement Account, £1,125,556; under section 31 (3) of Land Act 1948, £500,000; and New Zealand National Airways Corporation, £42,000. Interest is also received from the investment of other public moneys, the total under this heading being £996,645, including £96,880 from the State Advances Corporation, £424,261 from the Public Account Cash Balance Investment Account, £48,615 from the Christmas Island Phosphate Commission, £23,411 from the British Phosphate Commission, £9,468 from the Deposits Account, £61,479 from the National Development Loans Account, £51,427 from the Loans Redemption Account, and £207,880 from the Tasman Pulp and Paper Company Ltd. The total interest receipts of the Consolidated Fund were thus £9,146,653, leaving the net interest charges for the year £11,853,974, as compared with £11,636,316 in 1954-55.

The following table shows the gross payments of interest together with the net interest charges for the last eleven financial years.

£(N.Z.)

Year Ended 31 MarchGross PaymentsReceiptsGross Payments, Less Receipts
194618,584,4345,857,26412,727,170
194717,558,8764,714,10012,844,776
194817,825,0525,002,72812,822,324
194916,619,9605,215,78911,404,171
195016,736,8195,886,35410,850,465
195117.264,2006,566,29010,697,910
195217,712,6407,337,03510,375,605
195317,320,9826,893,59310,427,389
195418,128,1827,745,88210,382,300
195520,014,4178,378,10111,636,316
195621,000,6279,146,65311,853,974

Administration and management charges in respect of debt services amounted to £830,309 in 1955-56, as compared with £1,033,250 in 1954-55.

AMORTIZATION OF DEBT: Public Debt Repayment—With certain exceptions, the repayment of the public debt is now subject to the provisions of the New Zealand Loans Act 1953. For this purpose there is issued annually out of the Consolidated Fund—(a) a sum equal to 1/2 per cent of the total amount of the public debt outstanding at the end of the preceding financial year; (b) £2,865,000, being 4 per cent of the redemptions effected from 1 April 1925 up to 1 January 1954; (c) a sum equal to 4 per cent of the total amounts paid under section 59 of the Act between the commencement of the Act (1 January 1954) and the end of the preceding financial year: Provided that if the Minister of Finance so directs, any amount required to be paid under this section may be reduced by the amount paid into the Loans Redemption Account under paragraph (c) of section 57 of the Act, but the amount payable under paragraph (c) of this section in any subsequent year shall be computed as if no such reduction had been made. The bulk of the savings in interest on debt paid off is thus applied to further repayments of debt. In brief, provision is made to repay the debt in approximately sixty years from the date of the inception of the scheme (1925) or from the date of raising subsequent loans.

The annual contribution from the Consolidated Fund paid to the Loans Redemption Account is utilized to redeem such securities as the Public Debt Commission determines, which are a charge upon the public revenues of New Zealand. All other moneys raised or available for the purpose of repayment of any loan forming a charge on public revenues are similarly paid into the Loans Redemption Account and utilized for the redemption of such securities charged upon the public revenues as the Minister of Finance from time to time determines.

Transactions involving merely the exchange of one class of securities for another of the same rate of interest and term, or where the only variation is an extension of the term by not more than two years, are not recorded in the Loans Redemption Account.

The repayment scheme provided for under the New Zealand Loans Act 1953 does not apply to the whole of the public debt, moneys borrowed on the security of Treasury bills issued under section 41 of the Public Revenues Act 1953, funded debt and a contingent liability linked with it (refer page 826) being excluded.

Amounts devoted to the repayment or redemption of the public debt during each of the last five years are set out below, together with a brief statement of the class of debt affected by redemption operations.

£

Year Ended 31 MarchRepayments (Section 12 (a) of 1947 Act or 58 (a) of 1953 Act)Amounts Utilized for Redemption
Section 12 (b) of 1947 Act and 58 (b) of 1953 ActSection 12 (c) of 1947 Act and 58 (c) of 1953 ActTotal Amount Utilized
19522,725,4005,518,52638,776,49944,295,025
19537,432,6606,100,4555,381,55011,482,005
195416,911,9496,545,6753,769,95510,315,630
1955219,001,0366,373,3589,397,85715,771,215
195625,587,9444,451,5958,705,90013,157,495
Class of Debt Affected by Redemptions
ItemAmount
State Advances Corporation34,044,850
War loans, 1914-183,913,026
Public Works Account1,294,000
Linen Flax Corporation300,000
Other debt4,743,149
War loans, 1914-189,053,781
Other debt2,428,224
War loans, 1914-186,545,675
Other debt3,769,955
War expenses6,373,358
Other debt9,397,857
War expenses4,451,595
Other debt8,705,900

The following table shows the amounts available for redemption for each of the last five years under the repayment scheme provided for by the New Zealand Loans Amendment Acts of 1947 and 1953, the amounts utilized, and the nominal value of securities redeemed and cancelled to date.

£

Year Ended 31 MarchBalance of Amortization Contributions Unspent at Beginning of YearTransfers from Consolidated FundUtilized to Redeem and Cancel SecuritiesNominal Value of Securities Redeemed and Cancelled from 1 April 1925 to 31 March 1956
One-half Per Cent of Public Debt Outstanding at Beginning of YearFour Per Cent of Total Amount of Public Debt Redeemed or Repaid to Beginning of YearTotal
19523,635,3512,916,2902,274,4395,190,7295,518,52662,379,499
19533,307,5543,278,7672,625,0005,903,7676,100,45568,479,954
19543,110,8663,348,8972,865,0006,213,8976,545,67575,025,629
19552,779,0883,532,3093,113,5566,645,8656,373,35881,398,987
19563,051,5953,653,4193,379,3917,032,8104,451,59585,850,582

Amortization of Funded Debt.—At 31 March 1922, £27,532,164 of New Zealand's public debt was owing to the United Kingdom Government, all but £1,191,919 of this being on account of war expenditure. Arrangements were made with the United Kingdom Government in 1922 for the funding of this debt.

The funding was carried out on an annuity basis of 6 per cent, the total payment each year (payable half-yearly at 1 June and 1 December) being £1,651,930. Interest was at the rate of £4 19s. 5.88d. per cent, the balance of the 6 per cent going to reduction of the debt.

Under the agreement the original amount of £27,532,164 would have been automatically discharged from the public debt by the end of the financial year 1958-59. The United Kingdom Government, however, following the Hoover proposals regarding war debts, voluntarily suspended New Zealand's obligations in respect of the funded-debt payments due in and since December 1931. On the other hand, a provision that any part of the funded debt may be redeemed at any time was taken advantage of in 1924, when £200,000 was paid off the Naval Defence Loan.

At the date of suspension total payments amounted to £15,067,370, of which £11,635,406 represented interest payments and £3,431,964 (including the £200,000 additional paid off Naval Defence Loan) reduction of principal, leaving the outstanding balance of the funded debt at £24,100,200.

When the agreement for funding 1914-18 war debt was entered into with the United Kingdom Government in 1922 a loan of £2,090,909 was expressly excluded. The 1931 agreement for suspension of payments, however, covered both the funded debt and this loan. The United Kingdom Government was willing in 1922 to include the loan in the funding agreement and at the maturity date, 1 December 1955, a further agreement was made linking the loan with the funded debt. In view of this fact, and as the suspension agreement still operates, the amount of £2,090,909 has been omitted from the statement of public debt, and appears under the heading of contingent liabilities alongside the funded debt, which is excluded from the term public debt.

The provisions of the repayment of debt scheme do not apply to the funded debt nor is the funded debt included in the definition of the public debt. The debt figures given throughout this Section are exclusive of this amount.

NET INDEBTEDNESS.—While the sinking funds were annually increasing it was customary to regard the net-indebtedness figures as giving the best comparison of indebtedness between one year and another. The initiation of the present system of amortization, however, destroyed the comparison on this basis, and the gross figures (as shown at the beginning of this subsection) now afford a better and more comparable index. The net indebtedness figures for the last two years are: 1954-55. £721,701,682 (£338 14s. per head of population); 1 955-56, £722,022,176 (£331 18s. per head of population).

The net indebtedness quoted is merely the balance left after deducting from the amount of debentures and stock in circulation, the net balance of the Loans Redemption Account. No allowance is made for the fact that a portion of the debt is actually held by the Government itself. In the course of the year's financial transactions securities are bought and sold by Treasury accounts, and the investments held as at 31 March in each year, while forming part of the debt, do not represent amounts due directly or indirectly to the public. New Zealand Government investments held by Treasury accounts as at 31 March of the last five years have been: 1952, £65,635,633; 1953, £54,374,428; 1954, £55,756,323; 1955, £49,599,703; 1956, £47,784,435.

In addition to the above, Government investments in corporations, etc., held at 31 March 1956 (shown in the return required by the Finance Act 1947 and published in parliamentary paper B. 1 [Pt. I]) are given in the following table.

InvestmentAmount at 31 March 1956
 £(000)
Bank of New Zealand12,018
Bay of Plenty Fertiliser Works Ltd.55
British Phosphate Commissioners576
Christmas Island Phosphate Commission1,368
Dominion Salt Ltd.150
East Coast Farmers' Fertilizer Co. Ltd.45
Geothcrmal Development Ltd.20
Kaingaroa Logging Co. Ltd.100
Linen Flax Corporation300
New Zealand National Airways Corporation1,200
New Zealand Woolpack and Textiles Ltd.150
Reserve Bank of New Zealand1,500
State Advances Corporation3,753
Tasman Empire Airways Ltd.811
Tasman Pulp and Paper Co. Ltd.2,000
      Total£24,046

GENERAL AND LOCAL GOVERNMENT DEBT.—The statistics given throughout this subsection refer to the indebtedness of the General Government only, and do not include the debt of local-governing authorities, which is dealt with in the Section of this volume relating to local government.

Local-governing authorities had at 31 March 1956 a gross indebtedness equivalent to £(N.Z.) 100,863,664 and if this amount be added to the gross debt of the General Government at 31 March 1956—£735,201,244—the aggregate becomes £836,064,908. This latter total is exclusive of £(N.Z.)26,191,000 contingent liability due to the United Kingdom. Allowing for duplication on account of outstanding loans to local authorities from the State Advances Corporation, the Soil Conservation and Rivers Control Council, and the Fire Services Council, the total is reduced to approximately £(N.Z.)834,531,989.

The figures relating to local authorities' indebtedness in the foregoing paragraph are inclusive of Hospital Boards, and to this extent differ from those generally given in the Section on local government. Hospital Board gross indebtedness at 31 March 1956 totalled £12,898,629.

Chapter 31. SECTION 31—LOCAL GOVERNMENT

Table of Contents

Local government throughout New Zealand is exercised by a number of local authorities constituted under various Acts of Parliament. These Acts provide for the creation of districts over which the local authorities exercise jurisdiction. Different types of district are distinguishable, each type being identified with a specific function or group of functions. Geographically, New Zealand is divided into 126 counties, which comprise its total area, except for certain small islands which are not included within the boundaries of the adjacent counties. Administratively, boroughs and independent town districts, which are contained within the areas of the several counties, are regarded as separate entities. From an administrative point of view, therefore, the fundamental districts are counties, boroughs, and independent town districts. Upon this foundation a considerable superstructure of districts of other types has been erected. These overlapping districts may be divided into two broad classes, viz.: (1) Districts formed from parts of counties—e.g., road districts; and (2) those which are composed of a group of adjacent districts of other types united for a common purpose—e.g., electric-power districts. The number of local authorities actively functioning at 1 April 1956 was 973 made up as follows: County Councils, 123; Borough (including City) Councils, 145; Town Councils (independent), 20; Town Councils (dependent), 15; Road Boards, 3; River Boards (4 boards also have the powers of Land-drainage Boards), 13; Catchment Boards, 13; Land-drainage Boards, 42; Electric-power Boards, 43; Water-supply Board, 1; Urban Drainage Boards, 5; Transport Boards, 2; Local Railway Board, 1; Gas Board, 1; Milk Boards (including 33 where the Board is a Borough Council), 43; Nassella Tussock Boards, 2; Harbour Bridge Authority, 1; Plantation Board, 1; Rabbit Boards, 195; Fire Boards (including 161 where the Board is a Borough or County Council, etc.), 220; Harbour Boards (including 22 where the Board is a Borough or County Council, etc.), 47; and Hospital Boards, 37. In addition to the foregoing, there were 20 District Councils of the National Roads Board constituted under the National Roads Act 1954. These District Councils of the National Roads Board, although not local authorities in the strict sense of the term, are nevertheless intimately connected with certain aspects of local government, and have power to make recommendations of considerable importance.

The Christchurch-Lyttelton Road Tunnel Act 1956, which came into force on 1 November 1956, provides for the creation of an Authority for the purpose of constructing and maintaining a road tunnel through the Port Hills between Christchurch and Lyttelton.

The Rangitaiki Land Drainage Act 1956 provides that the district, which was first administered by a Board of Trustees constituted under the Land Drainage Act 1908, and subsequently since 1910 by the Minister of Lands, shall again be administered by a Board to be appointed.

The Waikato Valley Authority Act 1956 provides for the setting up of an Authority to undertake the co-ordination and general direction of measures for the control of the Waikato River and its tributaries.

The Electricity and Gas Co-ordination Act 1956 provides for the acquisition of essential gas undertakings by electric-power supply authorities.

Detailed statistics relating to each local authority, other than Hospital Boards, are contained in the Local Authorities Handbook, an annual publication of the Department of Statistics. Hospital Boards, which supply their returns in different form and to the Department of Health, are omitted from the statistics contained in this Section, but summarized data relating to them will be found in Section 5b.

The local authority year now uniformly ends on 31 March, except in the case of most Harbour Boards. In certain cases where the harbour is administered by a County or Borough Council the year ends on 31 March, but in all other cases on 30 September.

The history of local government in New Zealand may be conveniently divided into two periods associated with two distinct forms of administration—namely, (1) the provincial system, in which the local government of each province was a function of the provincial authorities; and (2) the present county system, which arose on the abolition of the provinces in 1876, and in which the general responsibility for the local government of the whole country was undertaken by the Central Government.

THE PROVINCES.—Although New Zealand was at first (1848) divided into the two provinces of New Ulster and New Munster, it was not until 1853 that the provincial system really commenced. In that year the two existing provinces were abolished and the colony was divided into the six provinces of Auckland, New Plymouth (altered to Taranaki in 1859), Wellington, Nelson, Canterbury, and Otago. The number was later increased to nine by the separation of Hawke's Bay from Wellington (1859), Marlborough from Nelson (1860), and Southland from Otago (1861). Subsequently it was reduced to eight by the merging of Southland with Otago (1870), and restored to nine again by the separation of Westland from Canterbury in 1874, Westland having been a county independent of Canterbury from 1867. Each province was presided over by a Superintendent and Council, with power to legislate for its own territory, subject, however, to disallowance by the Governor, and also to the exclusion of such matters as Customs duties, postal affairs, Crown lands, superior Courts of law, coinage, and paper currency, which were to be controlled by the General Assembly (Central Government). The provinces received from the Central Government a capitation allowance for the maintenance of harbours, hospitals, asylums, charitable aid, and police; while each province was expected to provide for the construction and maintenance of roads, bridges, and other public works out of its own revenues, which were derived chiefly from the sale of waste lands.

The Provincial Councils, therefore, were virtually left with the whole responsibility of providing for the details of local administration. The Councils in turn delegated certain of their powers and functions to lesser authorities, and a number of boroughs, towns, road and highway districts came into being. Owing, however, to the lack of uniformity between the Ordinances of the various Councils on the subject of local government, considerable confusion arose and rendered impossible any satisfactory co-ordination beyond provincial boundaries. Thus main roads were frequently planned without sufficient regard to the linking-up of the country as a whole. With the rapidly increasing population, and consequent extension of settlements, the need for the development of communications along national instead of provincial lines became apparent. That the provinces had definitely outlived the period of their usefulness became abundantly clear during the prosecution of the Vogel policy of immigration and public works initiated in 1870, and in 1875 the Abolition of Provinces Act was passed in the face of strong provincial opposition.

CONSTITUTION OF LOCAL DISTRICTS.—In 1876 local government entered upon an entirely new phase, the Central Government assuming the general responsibility for the local administration of the whole country. All existing legislation on the subject was repealed and new measures were introduced, notably the Counties Act 1876, which divided the country into sixty-three counties, with provision for administration by elective Councils having powers considerably less than those enjoyed by the Provincial Councils. Another important enactment of the same year was the Municipal Corporations Act, which provided for the incorporation of the thirty-six boroughs then in existence and for the creation of new boroughs. While these measures have long since been superseded it is upon them that the broad structure of the present system is based.

Since the inception of the county system there has been a great expansion of local government throughout New Zealand. With the growth of population there has been a steady increase in the number of counties, boroughs, and town districts, while entirely new types of districts have been created to cater for special services.

The 1940 and previous Year-Books contain a description of each type of local authority; changes in constitution and new types of local authorities have been recorded from time to time in subsequent Year-Books. A description of the development of counties, boroughs, and town districts follows.

Counties.—Although the county system proper dates from 1876, there is record of much earlier attempts to introduce this form of administration. Thus in 1842 Eden County, containing the then capital (Auckland), was proclaimed, while in 1867 Westland was separated from the Province of Canterbury and constituted a county. In general the county organization makes provision for the primary needs of a scattered population within a large area. Formerly, at least, the county council was mainly concerned with the construction and maintenance of main arterial roads, but with the development of transport and communication it has come in for a considerable measure of detailed work formerly done by the Road Boards.

With increasing settlement the original 63 counties were gradually subdivided until in 1920 the maximum of 129 was reached, although the number of councils formed never exceeded 126. Since 1955 the number of counties has steadily declined as amalgamations and mergers have been made under the policies brought into effect by the Local Government Commission Act 1953. At the present time (April 1957) there are 122 counties, in 120 of which the Counties Act is in force.

Counties are now constituted under the Counties Act 1956, which consolidates earlier legislation relating to counties and road districts, but the new Act makes no provision for the constitution of additional road districts.

The provision for the constitution of county towns, first made in the Counties Amendment Act 1949, enabled county councils to appoint county town committees for the purpose of advising the councils on any matter relating to the administration of the county town. The Counties Act 1956 prescribes a minimum population of two hundred, with an average density of not less than one person to the acre for a county town.

Boroughs.—Dealing with the needs of a concentrated population, the borough organization is concerned with a wide range of functions of a purely local nature. The first legislation appeared in 1842 in the form of the Municipal Corporations Ordinance, which provided that any area not exceeding seven square miles and having a population of not less than two thousand might be declared a borough. Only one borough—Wellington—was constituted under this Ordinance, which was subsequently disallowed by the Imperial Government on the ground that it encroached on the rights of the Crown in regard to certain lands. Several boroughs were created later in the most diverse manner under the various Ordinances of the different provinces, and in 1867 the General Assembly passed legislation under which the then existing twenty-one boroughs were entitled to incorporation on the petition of fifty householders. Provision was also made for the constitution of new boroughs on the petition of one hundred ratepayers of any district having at least two hundred and fifty inhabitants and comprising an area not greater than nine square miles, within which no two points were more than six miles distant. The 1867 legislation was repealed by the Municipal Corporations Act 1876, which provided for the incorporation of the thirty-six boroughs then in existence, and for the creation of new boroughs, as in the Act of 1867. The powers of municipalities were extended, permitting the construction of tramways, gasworks, and water-supply works; while the borrowing powers of boroughs were placed on a definite and uniform footing. With the growth and centralization of population the number of boroughs has, despite numerous amalgamations of adjacent boroughs, steadily increased to the April 1957 total of 143.

Prior to the Municipal Corporations Act 1954 boroughs were constituted under the Municipal Corporations Act 1933 with the stipulation of a minimum population of one thousand. Under the Municipal Corporations Act 1954 the geographical requirements are the same as in 1867 and 1933 with the minimum population stipulated at fifteen hundred and with an average density of population of at least one person per acre. The area restriction may afterwards be exceeded if necessary for merger or amalgamation purposes. A borough containing a population of twenty thousand or more may be proclaimed a city, although the corporation remains unaltered.

Town Districts.—Town districts were in existence in the days of the provinces, but the Town Board, as a distinct type of local-governing authority, did not appear until 1882. Provision was made by an enactment of 1881 for the proclamation of a town district on the petition of two-thirds of the resident householders of any settlement (of at least fifty householders) having an area not exceeding two square miles, and having no two points more than four miles distant from each other —requirements which remain in force at the present time. The town district represents a form of local government intermediate between the county and the borough. It implies a certain concentration of population and the presence of interests which, from their purely local nature, cannot be satisfactorily met by the county organization. In its early stages a town district usually remained subject to county control, although such control was practically confined to the main and county roads in the town district; in such circumstances it was known as a dependent town district. Experience showed that with the development of a town district there was a tendency for friction to arise with the county administration in the matter of finance, and it was further realized that after a certain stage of growth had been reached no useful purpose could be served by continuing the county control. This state of affairs was met by the Town Boards Amendment Act 1908, which provided that certain town districts should no longer form parts of the counties in which they were situated, and also enabled other town districts on reaching a population of more than five hundred to become independent. On attaining its independence a town district becomes in all respects a separate entity, and, apart from its smaller population, is not essentially different from a borough. The constitution and powers of town districts have been brought into closer relationship to boroughs over the years, and independent town districts are now constituted under the Municipal Corporations Act 1954. The Act requires that the area should not be more than two square miles, within which no two points are more than four miles distant and with a density of population of not less than one person to the acre.

No new dependent town districts are to be constituted. The number of town districts in April 1957 is thirty-one (sixteen independent and fifteen dependent).

FRANCHISE.—The franchise in local government is a variable one, differing materially in certain respects as between urban and country districts. Prior to the passing of the Local Elections and Polls Amendment Act 1941 the county franchise was based solely on property qualification, with a differential voting power according to the value of property possessed, whereas in boroughs and town districts every adult possessing the necessary residential qualifications was entitled to be enrolled as an elector for the election of the local-governing authority. On any proposal relating to loans or rates, however, a ratepaying qualification was, and still is, necessary.

An amendment passed in 1944 extended the franchise in counties and road districts to include a residential qualification on the same lines as for boroughs, but did not interfere with the multiple voting power conferred by a property qualification. One vote only is allowed in boroughs and town districts, but it is possible, by virtue of property qualification, to have a vote in more than one district. The 1944 amendment introduced compulsory registration of electors for boroughs and town districts, all adult persons not entitled to enrolment by virtue of a property qualification being required to make application for enrolment within a prescribed time. The Act also removed the disability which prevented persons in the employ of local authorities from becoming members thereof. The Local Elections and Polls Amendment Act 1946 provided that all general elections of local authorities were to be held on the third Wednesday in November of the year in which such elections were due, instead of in May as hitherto. The 1950 amendment altered this to the third Saturday in November. It also abolished the provisions of the 1946 amendment that any person could be entered on the local authority roll whose name appeared on the parliamentary roll with an address in that authority's district provided he or she had a residential qualification, and that, if not so entered, he or she could vote by declaration. The Local Elections and Polls Act 1953, which consolidated and amended previous Acts and amendments, provided that future elections are to be held on the third Saturday in November, commencing 1956, and every third year thereafter. The Act also extends the compulsory enrolment of residential electors to counties and road districts in addition to boroughs and town districts (for which provision had been made in 1944). Power is also given to make regulations to give full effect to the Act. Details of the franchise as it affects each type of local district are now given.

Counties.—Any person of twenty-one years of age and over who possesses either of the following qualifications is entitled to be enrolled on the county electors roll:

  1. Rating qualification, which may be held by any person whose name appears in the valuation roll as the occupier of any rateable property within a riding of the county. One vote is allowed where the rateable value does not exceed £1,000, two votes where the value is greater than £1,000 but not in excess of £2,000, and three votes where the value exceeds £2,000.

  2. Residential qualification, which may be held by a person who is or has the status of a British subject or is an Irish citizen, and who has resided for one year in New Zealand and has had permanent residence of not less than three months in the riding of the county to which the roll relates.

Boroughs.—Any person of twenty-one years of age and over who possesses any of the following qualifications is entitled to enrolment:

  1. Freehold qualification—meaning the beneficial and duly registered ownership of a freehold estate in land of a capital value of not less than £25 situated in the borough, notwithstanding that any other person is the occupier thereof.

  2. Rating qualification, which may be held by any person whose name appears in the valuation roll as the occupier of any rateable property within the borough.

  3. Residential qualification, which may be held by a person who is or has the status of a British subject or is an Irish citizen, and who has resided for one year in New Zealand and who has had permanent residence during the last three months in the borough to which the roll relates.

Town Districts.—The franchise is the same as for boroughs, except that for county electoral purposes in dependent town districts the county qualification is necessary.

Rabbit Districts.—Where the rates of the district are based on the acreage and rateable value of land occupied by the ratepayer, the franchise is the same as that exercised for County Council elections. Where the franchise is based on stock ownership, from one to five votes are allowed according to the number of stock units owned.

Other Districts.—Road districts, river districts, land-drainage districts, water-supply districts, and the local railway district all have a franchise similar to that of counties except that the residential qualification applies to road districts only.

Districts composed of a grouping of districts of other types united for a common purpose have a franchise as for the component districts. Such districts are urban drainage districts, electric-power districts, harbour districts, hospital districts, urban transport districts, catchment districts, and the gas district. In some cases—e.g., the Auckland Metropolitan and Hutt Valley Drainage Boards—the members are appointed or elected by the territorial local authorities included in the district.

In addition to elected members, the constitution of Harbour Boards provided in most cases for certain nominated or appointed members (representatives of the Government, the waterfront industry, and the payers of harbour dues), but the Harbours Act 1950, which consolidated and amended previous legislation, provides that every Harbour Board shall now consist of members elected by the electors of constituent local authorities only.

GENERAL POWERS.—Local authorities in New Zealand derive their powers from the Acts under which they are constituted, and also from special empowering Acts. In addition to legislation providing for particular types of local authority or for individual local authorities, there are several statutory measures which are more or less applicable to all local authorities, such as the Local Elections and Polls Act 1953 and the Local Authorities Loans Act 1956. In the case of Harbour Boards, there is in addition to a general Harbours Act a special Act for each Board, which is subordinate to the general Act. Certain types of local authority—Urban Drainage Boards, Transport Boards, Gas Boards, and the Auckland Harbour Bridge Authority—derive their principal powers from special constituting Acts.

Local authorities have general powers of entering into contracts for any of the purposes for which they are constituted; of selling and leasing land; and of taking or purchasing any land which may be necessary or convenient for any public work.

The Local Authorities' Emergency Powers Act 1953 confers on local authorities certain powers (e.g., in respect of rescue, first aid, provision of relief and welfare, distribution of foodstuffs, information and advice to public, etc.) in emergencies arising from earthquake, fire, or flood, or in time of war from enemy action or from the action of enemy sympathizers.

LOCAL GOVERNMENT COMMISSION.—The Local Government Commission Act 1953, which replaced the Local Government Commission Act 1946 and amendments, set up a Local Government Commission which is a permanent institution deemed to be a Commission of Inquiry under the Commissions of Inquiry Act 1908.

The Act provides that the Commission shall consist of a Chairman and two other members, one of whom shall have a special knowledge of urban local government, and the other a special knowledge of rural local government.

The functions of the Commission are to review the functions and districts of local authorities, and to inquire into proposals and prepare schemes for their reorganization. Reorganization schemes may provide for the union of adjoining districts, the merger, constitution, or abolition of districts, the alteration of boundaries, the conversion of a district into one of a different kind, the transfer of functions of one local authority to another, or the dissolution of a local authority.

The Act provides for the appointment of a Local Government Appeal Authority whose function is to sit as a judicial authority to determine appeals made from decisions of the Commission. Any decision finally approving a scheme of reorganization of districts may be appealed against only by the following parties:

  1. The local authority of any district to which the scheme relates;

  2. Any person or body having statutory authority to make decisions or recommendations in respect of the union, merger, constitution, alteration, or abolition of any district to which the scheme relates; and

  3. The Minister, in any case where the scheme affects only one local authority, or only one local authority and an adjoining area that does not form part of a district, or docs not affect any local authority.

BORROWING.—The Local Authorities Loans Act 1956 brings together in one Act the whole of local government borrowing legislation formerly provided for in the Local Bodies Finance Act 1921-22, the Local Bodies Loans Act 1926, and the Local Government Loans Board Act 1926. Under this Act all loan proposals of local authorities, except in regard to money borrowed in anticipation of revenue, require the sanction of the Local Authorities Loans Board. The Board consists of the Secretary to the Treasury, the Commissioner of Works, and five other members appointed by the Governor-General. In cases where a poll of ratepayers is necessary preparatory to raising a loan, the Board's consent must be obtained before the poll is held. In no case may the Board sanction any application unless provision is made to its satisfaction for repayment of the loan within such period as it deems reasonable, having regard to the probable duration and continuing utility of the works on which the loan moneys are to be expended.

A local authority is empowered to raise a special loan for the construction of any public work, for the purchase of land or buildings, or for the purpose of engaging in any undertaking into which it may lawfully enter. As a general rule local authorities may raise a loan by special order and without a poll of ratepayers, but, in the case of a local authority that is a rating body, a poll of ratepayers is to be taken if—

  1. The Local Authorities Loans Board requires a poll to be taken; or

  2. Before the date fixed for the meeting of the local authority to confirm the resolution to raise the loan not less than 5 per cent of the ratepayers demand a poll; or

  3. The local authority itself decides to take a poll.

A poll cannot be required in cases such as renewal loans, loans raised for emergency expenditure by reason of flood, storm, earthquake, etc., on loans for work of national and local importance and carried out by an agreement between the Government and a local authority.

Where a poll is required it shall be deemed to be carried if a bare majority of the valid votes recorded is in favour of the proposal. The properties and revenue of the local authority may be pledged as security for the repayment of any principal sum or interest thereon, or a special rate may be levied for the same purpose.

The borrowing activities of certain types of local authority are subject to special provisions. Under the Hospitals Act 1926 a Hospital Board must first obtain the approval of the Minister of Health before exercising its power to borrow; under the Fire Services Act 1949 the Boards of Urban Fire Authorities must obtain the prior consent of the Fire Service Council. Harbour Boards derive their authority to borrow for harbour works from special empowering legislation, and similar authority is given for the capital works of certain other local authorities.

RATING.—Local authorities are largely dependent on revenue from rates to carry out their activities, and even loans raised for special purposes are, except where the assets purchased provide revenue to meet the loan charges, ultimately liquidated by rate revenues—known then as special rates. Three broad classes of rates are distinguished:

  1. General, for general purposes.

  2. Separate rates levied for the construction of public works, for the acquisition of land or buildings, or for the benefit of the whole or part of a local district.

  3. Special rates imposed to secure the repayment of loan money, being sufficient to produce interest and sinking fund, or interest and instalment of principal; as the case may be. Special rates can be levied only by resolution gazetted, and, unlike general and separate rates, are not subject to any statutory limit.

There are three main systems of rating: (1) capital (land and improvements) value, (2) annual value, and (3) unimproved value. Rating on an acreage basis is applied mainly by Rabbit Boards which also, in three districts, rate according to the number of sheep and/or cattle owned.

The Rat :t 1925 provides that the local authority of any district (other than a district wherein the system &c. rating on the unimproved value is in force) may from time to time by resolution determine whether the system of rating on the annual value or on the capital value shall be in force in the district. In the case of rating on the capital value the rating roll is based on the district valuation roll prepared by the Valuation Department. Where the rating is on the annual value the local authority generally prepares its valuation roll on the basis of valuations made by its own valuers. There is, however, provision that annual values may be prepared on the basis of the annual value being equal to £6 per cent of the capital value, and also that a rate of Is. in the pound on the annual value is equivalent to 3/4d. in the pound on the capital value. The Rating Amendment Act 1954 further provides that the Valuer-General may act as a local authority's valuer where an annual value roll is to be prepared. (Sec also Section 18E on valuation of land.)

Rating on Unimproved Value of Land.—The Rating on Unimproved Value Act 1896 was passed to afford local authorities the opportunity of adopting the principle of rating expressed in the title of the measure. The Act is now incorporated in the Rating Act 1925. It is entirely at the option of the ratepayers of local districts to adopt the system, and provision is made for a return to the old system of rating, if desired, after three years' experience of the new one. The poll is taken in the same manner as in the case of a loan poll required under the Local Authorities Loans Act 1956. Under the original Act it was necessary for a minimum number of one-third of the ratepayers to vote, and a majority of their votes carried the proposal. Now the question of adoption or otherwise is decided by a bare majority of the valid votes recorded, irrespective of the number of ratepayers who have voted.

A rescinding proposal can be carried at a poll by the same means as one for adoption, but not until after three years have elapsed; and, vice versa, rejection of a proposal bars its being brought forward for a similar period.

Under the authority of the Counties Act 1956 the ratepayers within a county town may require the County Council to take a poll within the town on a proposal to adopt a system of rating which differs from that in force in the county.

It should be noted that some local authorities automatically adopt rating on unimproved value. For example, a town district, borough, or another county formed from part of a county automatically rates on the system in force in the county at the lime of the constitution of the new district; also two boroughs amalgamating adopt the system in force in the district with the greater population, unless their Councils agree to the contrary.

Distribution of Rating Systems in Force.—A table is given of rating systems in force during the financial year 1954-55 in those types of districts which have power to levy rates.

System of RatingTotal
Unimproved ValueCapital ValueAnnual ValueAcreage BasisOn Stock

* Includes Chatham Islands County, for which import and export dues are charged in lieu of rates on land.

† Includes one Board with the powers of a Drainage Board which also rates on acreage basis.

Counties6559   125*
Boroughs11216 18 146
Town districts15155  35
Road districts14   5
River districts46 3 13
Catchment districts 12   12
Land-drainage districts.2814 1 43
Electric-power districts1429   43
Water-supply district   1 1
Urban drainage districts12   3
Transport district 1   1
Rabbit districts 2 1753180
      Totals240160231803607*

The position in regard to the four major classes of local authorities at 1 April 1955 (i.e., the beginning of the 1955-56 financial year) is set out in the following table. The figure in parentheses are proportions per cent of the total.

Rating onTotal for New Zealand
Capital ValueAnnual ValueUnimproved Value
No.PopulationNo.PopulationNo.PopulationNo.Population*

* Exclusive of migratory, etc., population.

† Includes the three counties (Eden, Sounds, and Fiord) in which the Counties Act was not then wholly in force, and Chatham Islands County for which export and import dues are charged in lieu of rates on land.

Counties (excluding town districts)59 (45.7)320,370 (43.5)(..)(..)66 (51.2)413,370 (56.1)129736,980
Cities and boroughs15 (10.3)57,930 (4.2)17 (11.6)243,690 (17.9)114 (78.1)1,063,540 (77.9)1461,365,160
Independent town districts6 (31.6)3,910 (29.0)4 (21 0)2,700 (20.0)9 (47.4)6,890 (51.0)1913,500
Dependent town districts8 (50 0)3,230 (43.6)1 (6.2)520 (7 0)7 (43.8)3,660 (49.4)167,410
      Totals88 (28.4)385,440 (18.2)22 (7.1)246,910 (11.6)196 (63.2)1,487,460 (70.1)3102,123,050

For the purposes of the foregoing tables a district is deemed to rate on the unimproved value where the general rate is levied on an unimproved-value basis. In a number of instances, in particular of boroughs, certain of the subsidiary rates are levied on other systems.

The following table shows the amounts levied under the various systems of rating and by annual fees or charges by counties, boroughs, and town districts for the year ended 31 March 1955. Amounts levied for other local authorities are included.

£

System of RatingUniform Fees and ChargesTotal
Unimproved ValueCapital ValueAnnual Value

* Includes fire rates levied on improvements value, viz.—Counties, £1,546; Boroughs, £25,091.

Counties3,549,9372,238,8327,21532,311*5,828,295
Boroughs6,942,854818,5902,719,6501,194,226*11,675,320
Town districts38,20330,08712,6009,29290,182
      Totals10,530,9943,087,5092,739,4651,235,82917,593,797

TOWN AND COUNTRY PLANNING.—The Town and Country Planning Act 1953 consolidated and amended the Town Planning Act 1926 and its amendments. The new Act provides for the making and enforcement of regional and district planning schemes.

Regional planning schemes must be preceded by a comprehensive survey of the natural resources of the areas concerned, and of the present and potential uses and values of all lands in relation to public activities or amenities. Regional schemes envisage the conservation and economic development of natural resources by classification of lands according to their best uses and by the co. ordination of all such public improvements, utilities, services, and amenities as are not limited to the territory of any one local authority.

For the purpose of every regional planning scheme proposed to be prepared there is a Regional Planning Authority consisting of representatives of the several Councils whose districts are wholly or partly within the region.

Every district scheme is required to have for its general purpose the development of the area to which it relates (including the reconstruction of an area already built on) in such a way as will most effectively tend to promote and safeguard the health, safety and convenience, the economic and general welfare of its inhabitants, and the amenities of every part of the area. Every Council must provide and maintain a district scheme whether or not a regional planning scheme including its district has been prepared or become operative.

The Act provides that the Government will administer the Act through the Minister of Works, who may delegate his authority to the Commissioner of Works. The Town Planning Board no longer exists, and its function in connection with appeals is exercised by a special Town and Country Planning Appeal Board. Other functions previously carried out by the Town Planning Board are now apportioned between the Minister and the local authority.

While a district scheme is being prepared a Council may refuse its consent to the carrying cut of any development that would be in contravention of the scheme and falls within the definition of a "detrimental work"; but the person injuriously affected may appeal against such a decision to the Appeal Board.

When completed and recommended by the Council a district scheme is publicly notified for inspection, and any member of the public, other local authorities, and the Minister may object to any provision of the scheme. In the event of the objection not being sustained by the Council the objector may appeal to the Appeal Board whose decision is final.

The Minister of Works may prepare and obtain approval for a district scheme in any case where a local authority under an obligation to prepare such a scheme fails to do so after being notified in writing, and also a local authority may by agreement authorize the Minister to prepare and obtain approval for a scheme. In the former case the costs and expenses incurred by the Minister are recoverable from the local authority, or they may be deducted from any moneys payable from public funds to the local authority.

When a district scheme has been approved it is the duty of the local authorities having jurisdiction to enforce the requirements of the scheme in respect of all new works of any description. The provisions of a regional planning scheme are obligatory, but give the local authority a right of appeal to the Town and Country Planning Appeal Board against any scheme which conflicts with any operative district scheme or proposed district scheme that has been publicly notified.

Where a district scheme has been approved the local authority may, with the prior approval of the Minister of Works, take, under the Public Works Act 1928, any land in its district which under the scheme it considers necessary or expedient for the proper development or use of the land or for the provision or preservation of amenities. In such a case the local authority may raise a special loan for the purpose under the Local Authorities Loans Act without the usual requirement of a poll of ratepayers on the proposal.

HOUSING.—Under section 28 of the State Advances Corporation Act 1936, the Corporation is empowered to make loans to local authorities for the acquisition of land for the erection of workers' dwellings, or for any other purpose in relation to workers' dwellings. As part of the Government's housing plans, finance is made available to local authorities at an interest rate of 4 per cent for the purpose of erecting municipally-owned workers' dwellings for letting at low rentals. Applications by local authorities for loans under this arrangement must be approved by the Local Authorities Loans Board and by the Minister of Finance.

By the Rural Housing Act 1939 local authorities are empowered to advance moneys to a farmer for the purpose of enabling him to provide a dwelling for his own use or for the use of any farm worker who is principally employed by him, the money in the first place being supplied by the State Advances Corporation (refer to Section 33B of this volume).

The Local Authorities (Temporary Housing) Emergency Regulations 1944 empower local authorities to establish and maintain transit housing centres for the purpose of providing temporary accommodation for persons who are awaiting the allocation of State rental houses or the provision of other housing accommodation.

Borough Councils are authorized under the Municipal Corporations Act 1954 to provide loans for housing purposes up to a limit of £2,222; to subdivide for such purposes any land vested in a Council and not held by it in trust for any particular purpose other than housing; to sell or lease allotments for housing purposes; and to borrow money to meet the cost of acquiring, subdividing, and developing the land and constructing streets.

RECEIPTS.—The sources from which the various classes of local authorities secure the moneys necessary to exercise their functions vary greatly, according to the nature of the statutory duties of the local authority concerned. Generally, however, receipts fall under one of four main classes—viz., rates; revenue from public utilities, licences, rents, etc.; revenue receipts from the General Government; and receipts such as loan money and special grants and subsidies from the Government which cannot properly be regarded as revenue.

The receipts of local authorities, divided into the various groups mentioned, are given for each of the last eleven years. As stated earlier, the figures quoted here and elsewhere in this Section (unless specifically stated to this effect) do not cover the operations of Hospital Boards.

£

Year Ended 31 MarchRevenue FromTotal RevenueReceipts Not RevenueTotal Receipts
RatesPublic Utilities, Licences, Rents, etc.Government
19457,895,87115,057,508415,01923,368,3982,086,27525,454,673
19468,633,32915,393,510450,29124,477,1302,743,83727,220,967
19479,541,13316,506,818512,02926,559,9803,737,37130,297,351
19489,806,85917,212,851611,21327,630,9234,408,01432,038,937
194910,797,08419,076,812679,98430,553,8805,458,23236,012,112
195011,644,74820,327,342751,83932,723,9297,366,69340,090,622
195112,577,01721,715,543910,47235,203,0327,461,07142,664,103
195214,513,76624,050,6701,104,22339,668,6599,543,03549,211,694
195315,354,00427,588,2971,128,38044,070,68114,614,67058,685,351
195416,421,12732,322,1351,200,11449,943,37619,306,55569,249,931
195518,259,12835,313,7313,765,56757,338,42617,279,85674,618,282

Local authorities received by way of rates in the financial year 1954-55 a total amount of £18,259,128, and the sum of £762,510 was raised by licences, making £19,021,633 altogether from taxation, which is equivalent to £9 0s. 8d. per head of the total mean population.

During 1954-55 rates formed 31.8 per cent of the revenue proper; public utilities, licences, rents, and other sources yielded 61.6 per cent; and 6.6 per cent came from the General Government.

Of the revenue proper of counties, which amounted to £8,868,301 in 1954-55, no less a sum than £5,327,329, or 60.1 per cent, was raised by way of rates. Town districts, road districts, river districts, catchment districts, land-drainage districts, urban drainage districts, and the water-supply district also rely on taxation for the greater part of their income. In the case of boroughs, urban transport districts, and Harbour Boards, on the other hand, rates supply a considerably smaller proportion of the total revenue. During 1954-55 this source of income accounted for 42.4 per cent of the total revenue of boroughs, the corresponding proportions for urban transport districts and Harbour Boards being 4.5 per cent and 9.6 per cent respectively. Electric-power districts did not rate during 1954-55.

The next table shows the receipts for 1954-55 (classified as in the preceding table) for each type of local authority.

£

Revenue FromReceipts not RevenueTotal Receipts
RatesPublic Utilities Licences, Rents, etc.Government

* Levy on milk.

† Harbour improvement rate, £238,197, and rates on land in harbour rating area, £236,999.

Counties5,327,3291,818,1611,722,8114,161,61413,029,915
Boroughs10,741,19013,062,2981,521,4456,706,92332,031,856
Town districts87,73263,93516,21959,804227,690
Road districts23,0254,5915,10826,84559,569
River districts63,50928,166 17,696109,371
Catchment districts403,772335,350 719,7571,458,879
Land-drainage districts97,81623,505 32,256153,577
Electric-power districts 11,803,520 2,221,48814,025,008
Water-supply district5,455126  5,581
Urban drainage districts493,233160,790 516,9311,170,954
Urban transport districts111,8762,391,304 548,6543,051,834
Railway district 47,293  47,293
Gas district 133,654 25,152158,806
Milk districts15,197*55,336 2,04072,573
Nassella tussock districts 23,177 11,45734,634
Joint Transit Mousing Committee 9,364  9,364
Harbour Bridge Authority 453 346,705347,158
Plantation board 14,702 3,38418,086
Rabbit districts413,79865,986416,598327,9421,224,324
Fire districts 807,08183,386292,3601,182,827
Harbour boards475,1964,464,939 1,258,8486,198,983
      Totals18,259,12835,313,7313,765,56717,279,85674,618,282

Revenue proper in 1954-55 was £7,395,050 greater than in 1953-54, but receipts other than revenue decreased by £2,026,699. Rates accounted for £1,838,001 of the revenue increase, and public utilities, licences, rents, etc., for £2,991,596. Revenue from the General Government increased by £2,565,453, or 214 per cent, which indicates the magnitude of the assistance that administrative local districts have received through the operations of the National Roads Board.

Of the total rates (£18,259,128) collected during 1954-55 general rates levied brought in £11,188,525 and other rates (including penalty on overdue rates) £7,070,603. Of the latter, £5,509,473 was received by boroughs and £1,120,152 by counties. The whole of the rates collected by Harbour Boards (£475,196) were classed as general rates.

It is of interest to note that for the year 1954-55 the total of all rates collected by counties was equal to £8.15 per £1,000 of rateable capital value (land and improvements) at the beginning of the year. The corresponding figure for boroughs was £12.19, for independent town districts£8.47, and for dependent town districts £6.29 (excluding rates levied by County Councils).

Sections in successive Finance Acts from 1930 to 1936 authorized the remission or postponement in whole or in part of the 10-per-cent penalty on unpaid rates. This authority then lapsed, but was reinstated on a permanent basis and made retrospective by the Statutes Amendment Act 1938.

Public Utilities, Licences, Rents, etc.—As indicated earlier, rates are not the only form of local taxation. Local authorities derive a certain amount of revenue from publicans' licences, motor-drivers' licences, drivers' (other vehicles) licences, auctioneers' and hawkers' licences, building permits, dog taxes, pound taxes, etc. Sources of revenue not classed as taxation are rents, fines and penalties, sales of material, sales of light and power from gasworks and electric-supply works, transport receipts, interest on deposits, wharf dues, etc.

Of the total revenue of £13,062,298 accruing to boroughs under this head in 1954-55, £1,575,388 represented transport receipts, £5,229,344 sales of electric light and power, and £947,309 sales of gas. Comparable figures for 1953-54 were £12,445,731, £1,485,381, £4,679,808, and £886,805 respectively.

Receipts from General Government.—A statement of revenue receipts by local authorities from the General Government during the five financial years ended 31 March 1955 is given in the next table.

£

Year Ended 31 March
19511952195319541955

† Main Highways Board prior to 1954-55.

* Amount carried over from 1953-54.

Rates on Crown lands38,12231,85021,20721,46119,875
Fire Service Council54,71963,08964,08872,45583,386
Timber and flax royalties46,33444,39547,96049,17654,300
Goldfields revenue and gold duty10,56714,35211,4419,5369,763
Fees and fines24,73627,53737,76937,94839,972
Subsidies—
  National Roads Board
    On rates236,581265,958268,688284,0821,636,509
    On population1,403,530
  Rabbit Destruction Council251,688370,601376,565392,090416,598
Motor-spirits tax240,509280,944294,452325,81894,615*
Other revenue receipts7,2165,4976,2107,5487,019
      Totals, Revenue Account910,4721,104,2231,128,3801,200,1143,765,567
Loans from State Advances Corporation (Housing Account only)48,07148,21281,60290,018155,051
Loans from Treasury10,40715,66193,33648,05525,036
Loans from Ministry of Works11,6116,92013,703143 
Advances from National Roads Board11,08021,63518,3242,4242,800
Advances from Soil Conservation and Rivers Control Council46,32648,17966,47616,39823,600
Advances from Fire Service Council4,0703,675 1,1953,829
Grants for special works, etc.—
  From Department of Labour43,19838,21832,68632,68932,501
  From National Roads Board1,149,8491,409,8491,664,1901,774,6562,309,265
Soil Conservation and Rivers Control Council989,4711,394,0611,552,7711,832,977{614,423
Ministry of Works757,586
Other1,036,606
      Total receipts from Government3,224,5554,090,6334,651,4684,998,6698,726,264

EXPENDITURE.—The expenditure of local authorities during each of the last eleven years has been as follows.

£

Year Ended 31 MarchWorks and Utilities (Construction and Maintenance)Hospital Board LeviesAdministrationInterest on Loans and OverdraftOtherTotal Expenditure
194515,428,5901,313,8441,560,7912,620,4064,300,01225,223,643
1946.17,516,4361,534,8191,676,5632,541,9294,084,88627,354,633
194720,319,3651,857,2731,844,1172,475,4573,982,96230,479,174
194822,550,6661,350,7112,066,0232,356,7954,133,13132,457,326
194925,622,7411,415,1352,314,5462,332,0334,128,01835,812,473
195029,099,2701,505,5762,411,5682,284,3454.363,49539,664,254
195132,130,3241,669,4742,897,4732,220,6244,324,53443,242,429
195236,988,8661,855,4443,221,9022,218,6564,561,37848,846,246
195345,060,5291,748,4923,437,0452,328,7325,762,54458,337,342
195453,663,6321,660,0514,056,2592,594,9436,314,20668,289,091
195558,094,0121,455,1314,583,3572,873,7596,974,28573,980,544

Included in the total of other payments for 1954-55 is an amount of £4,268,379 in respect of amortization of debt, which compares with the figure of £4,008,783 for the same purpose in 1953-54.

The main items of expenditure of the various classes of local authorities during 1954-55 are shown below.

£

Works and Utilities (Construction and Maintenance)Hospital Board LeviesAdministrationInterest on Loans and OverdraftAmortization of DebtTotal Expenditure*

* Including other items totalling £2,705,906.

Counties10,115,446603,1441,057,440198,917365,87212,572,246
Boroughs24,537,837843,4431,497,4171,329,5342,007,81731,364,468
Town districts200,5165,98622,2564,63910,598250,415
Road districts46,0942,5586,5778361,94159,075
River districts83,358 13,2886,3556,142109,415
Catchment districts1,052,019 183,11524,01867,0491,350,463
Land-drainage districts117,641 13,3246,80215,533155,712
Electric-power districts11,392,566 1,034,497608,9611,006,36814,490,602
Water-supply district3,626 894461484,725
Urban drainage districts907,382 98,408126,867134,8911,307,555
Urban transport districts2,841,518 166,244115,575149,5573,310,249
Railway district25,161 4,604426 30,191
Gas district119,052 8,9629,2837,377145,162
Milk districts47,081 16,5861821,02469,953
Nassella tussock districts34,744 2,01818 36,790
Joint Transit Housing Committee3,698 1,218412,7497,716
Harbour Bridge Authority120,144 5,653  125,200
Plantation board13,601 3,619  17,568
Rabbit districts1,040,050 81,6534,9536,1541,139,716
Fire districts932,742 27,66233,35963,3801,114,340
Harbour Boards4,459,736 338,822402,947421,7796,318,983
      Totals58,094,0121,455,1314,583,3572,873,7594,268,37973,980,544

The next table shows for some of the more important classes of local authorities the proportions per cent that the main items of expenditure bear to the totals. These percentages are based on the figures shown in the preceding table. Per Cent

Works and Utilities (Construction and Maintenance)Hospital Board LeviesAdministrationInterest on Loans and OverdraftAmortization of DebtTotal Expenditure*

* Includes other items.

† Includes districts not listed.

Counties80.464.808.411.582.91100.00
Boroughs78.232.694.774.246.40100.00
Town districts80.072.398.891.854.23100.00
Catchment districts77.90 13.561.794.96100.00
Electric-power districts78.62 7.144.206.94100.00
Urban drainage districts69.40 7.539.7010.32100.00
Urban transport districts85.84 5.023.494.52100.00
Rabbit districts91.26 7.160.430.54100.00
Fire districts83.70 2.482.995.69100.00
Harbour Boards70.58 5.366.386.67100.00
      Totals, all districts78.531.976.203.885.77100.00

The table following gives, in respect of boroughs only, the expenditure on new works out of loan money during the last eleven years, classified under various heads.

£

Year Ended 31 MarchRoads, Streets, and BridgesDrainage and SewerageWater-supplyHouses, Workers' Dwellings, etc.Parks, Gardens, Town Halls, Libraries, Art Galleries, and Places of Public RecreationGasworks and Electrical WorksOther Public WorksTotal
194526,32435,816235,06421,03726,92154,75721,012420,931
194633,81017,744267,971126,65322,85282,32537,268588,623
194751,87231,905295,702317,80822,319115,11826,956861,680
194880,87476,713280,928205,50545,387110,763100,134900,304
1949191,602101,227349,66796,66197,078153,732116,0821,106,049
1950262,071158,406443,37876,12078,031322,126180,7791,520,911
1951280,540200,968501,62582,99757,309479,640245,9501,849,029
1952369,580254,909683,34376,52791,620385,515438,2072,299,701
1953790,786381,5091,145,755136,140162,626462,552437,0963,516,464
19541,004,644427,6531,310,207252,235243,739905,696610,8274,755,001
19551,300,461587,2991,637,042246,448441,824450,956571,7285,235,758

ASSETS AND LIABILITIES.—The assets and liabilities of local authorities at the end of the financial year 1954-55 were as shown in the table following.

£

AssetsLiabilities
Cash AssetsOther Assets (as Estimated in Published Balance-sheets)Debentures and Other Securities: Net IndebtednessBank Overdraft and Temporary LoansOther LiabilitiesTotal Net Liabilities
Counties3,419,74812,506,0754,235,879141,3381,097,5305,474,747
Boroughs12,904,37684,239,53333,065,787436,1693,008,22236,510,178
Town districts114,863655,221109,29724048,943158,480
Road districts9,27563,50117,964 6,14924,113
River districts105,766220,375131,6451,4755,671138,791
Catchment districts489,8152,108,132609,451 125,410734,861
Land-drainage districts68,545128,905102,388444,398106,830
Electric-power districts5,276,07243,300,63516,229,518706,9102,087,13119,023,559
Water-supply district1,0093,729697  697
Urban drainage districts701,0723,538,6043,070,629 76,1313,146,760
Urban transport districts516,2235,103,3372,855,4058,000208,3253,071,730
Railway district2,021230,251 4,6098,37212,981
Gas district17,746368,706143,58172,84913,589230,019
Milk districts56,67466,0904,5221174,2238,862
Nassella tussock districts4,37929,491  338338
Joint Transit Housing Committee5,73316,444  3434
Harbour Bridge Authority235,857608,997597,271 11,726608,997
Plantation board67,372183,449  1,0331,033
Rabbit districts495,5081,250,66294,33821,89641,758157,992
Fire districts461,6172,953,1261,006,7032,32295,6881,104,713
Harbour Boards4,482,00827,337,9869,799,68272,526350,43710,222,645
      Totals29,435,679184,913,24972,074,7571,468,4957,195,10880,738,360

The figures shown in the column " Other assets " are taken from the respective balance sheets, but are far from complete, inasmuch as no valuations are made for certain items. This applies particularly to roads, which, although representing considerable wealth to the community, do not figure at all in the assets. The greater part of the expenditure of counties and road districts is made in this direction. For boroughs, although the proportion is very much less, 19.29 per cent of the loan money expenditure during the last ten years was on roads, streets, and bridges. Assets of local authorities as returned for the last eleven years are as under.

£

As at 31 MarchCash AssetsOther Assets (Estimated)As at 31 MarchCash AssetsOther Assets (Estimated)
194517,202,78179,738,843195120,339,438104,740,956
194617.936,37581,773,700195221,403,376112,494,572
194718,183,14884,807,766195322,812,064126,782,287
194817,481,78788,246,883195427,295,230140,310,389
194919,153,95398,730,180195529,435,679184,913,249
195019,970,14999,712,946   

Cash assets are made up chiefly of loan balances, reserve investments, and cash in hand. Sinking funds, which amounted to †7,245,297 at 31 March 1955, do not appear in the foregoing table, but are shown as a deduction from the gross loan indebtedness of local authorities. Other assets are comprised mainly of fixed assets and of stocks of stores and materials.

Boroughs are responsible for 46 per cent of the total assets, electric-power districts for 23 per cent, and Harbour Boards for 15 per cent. Counties show the comparatively low percentage of 7, but this is due to the fact that practically the whole of county expenditure is made on roads, bridges, etc., for which no valuation is available.

Hospital Boards, which are not included in the foregoing figures, had assets (excluding outstanding fees and subsidies) amounting to £25,799,784 at 31 March 1955, bringing the total (excluding sinking funds) for all local authorities to approximately £240,148,712.

INDEBTEDNESS.—The total gross debt of local authorities at 31 March 1955 was £79,320,054 made up of: debentures and other securities, £78,754,785; loans from Highways votes, £46,338; advances from Soil Conservation and Rivers Control Council, £213,434; advances from Fire Service Council, £9,137; and interest-free Treasury advances, £296,360. The net indebtedness (i.e., after deducting accumulated sinking funds from debentures and other securities) was £72,074,757.

It is necessary to observe that figures of local authority debt given herein are not quoted in uniform currency terms. Debt held in New Zealand (the great majority of the total) is expressed in New Zealand currency; that held in Australia is expressed in Australian currency; and that held in the United Kingdom is expressed in sterling. The total is ascertained by adding the three currencies together without conversion to a common basis. If the amount domiciled overseas is converted to New Zealand currency, the total gross debt at 31 March 1955, at the then rates of exchange, was £79,259,407.

The total gross debt of local authorities at 31 March 1955, including Hospital Boards, was £90,915,885. From 1939-40 to 1947-48 there was a progressive decline in the debt aggregating £9,494,504. Between 1947-48 and 1949-50 there was a decrease of £244,299, while in 1950-51 the debt increased by the comparatively small sum of £126,648, which showed a fairly stable position for those four years. The substantial increases of £2,292,970, £7,616,021, £11,843,159, and £7,292,729 which took place over the years 1951-52 to 1954-55 show the effect of the large loan amounts sanctioned during the previous years.

Included in the gross indebtedness figure in the previous paragraph are amounts owing by local authorities to Government Departments, and the amounts of the securities held at 31 March for the last five years are shown in the following table. The percentages to the total gross debt are given at the foot of the table.

£

DepartmentAs at 31 March
19511952195319541955
New Zealand Government Insurance Office3,931,1394,603,6665,027,7315,696,3305,743,837
National Provident Fund Board2,217,2965,247,5037,617,2648,651,6799,508,115
Public Trustee4,518,1644,222,2753,891,6913,514,0093,161,765
State Advances Corporation— Trading4,391,0684,384,6305,296,0495,101,4945,179,685
  Housing Account953,107933,373927,575861,392948,673
  Rural Housing Act 1939121,008120,990154,412194,479261,601
  Other2,042,6001,896,3921,984,9762,089,8422,082,749
    Totals18,174,38221,408,82924,899,69826,109,22526,886,425
Ratio per cent to total gross indebtedness29.433.434.731.229.6

The outstanding loans of local authorities (other than Hospital Boards) at the end of each of the last eleven years are shown in the following table.

£

At 31 MarchDebentures and Other SecuritiesInscribed DebtTotal Debt
Gross DebtNet Debt (i.e., Less Accumulated Sinking Funds)Gross DebtPresent Indebtedness (Actuarially Computed)Gross DebtNet Debt
1945b60,414,63851,354,680823,299112,38261,237,93751,467,062
194659,342,33250,029,520683,53285,62360,025,86450,115,143
194757,171,83248,954,703596,42763,42557,768,25949,018,128
194856,612,84548,295,879504,63043,38757,117,47548,339,266
194956,181,51648,171,038423,50826,83756,605,02448,197,875
195056,042,76248,395,137259,30412,22656,302,06648,407,363
195155,998,08848,799,47688,5083,66956,086,59648,803,145
195257,853,21850,384,00515,95166157,869,16950,384,666
195364,422,35556,703,9194,83020164,427,18556,704,120
195473,444,54465,807,6401,0263573,445,57065,807,675
195579,320,05472,074,757  79,320,05472,074,757

Of the total net indebtedness of £72,074,757 at 31 March 1955 boroughs were responsible for £33,065,787, which represents 3 0 per cent of their rateable capital value at 31 March 1955. For counties, which have a much less per caput expenditure on works, etc., the aggregate net indebtedness was £4,235,879, and the percentage of rateable capital value at 31 March 1955 only 0.6.

The following table shows, per head of the population, the gross debt of local authorities and the annual charge thereon for the last eleven years.

At 31 MarchPopulationGross DebtAnnual Loan Charge
AmountRate per HeadAmountRate per Head
 ££s.d.££s.d.
19451,679,97261,237,93736904,869,7492180
19461,756,75660,025,86434354,994,79221610
19471,789,47657,768,25932584,925,0342150
19481,828,02557,117,475314115,079,9942157
19491,864,56056,605,02430725,133,7222151
19501,902,88356,302,066291195,287,5892157
19511,938,03256,086,5962818105,498,8662169
19521,984,73057,869,16929325,805,1382186
19532,037,55364,427,185311256,293,612319
19542,087,74073,445,57035376,996,154370
19552,130,92779,320,05437467,719,9863126

It should be noted that the debt of electric-power districts shown in the following table does not represent the complete local authority debt on account of electric-power activities, since a considerable portion of the borough debt, and a small part of the county and town district debt also, was incurred for that purpose.

£

At 31 MarchCounties and Road DistrictsBoroughs and Town DistrictsUrban Drainage DistrictsUrban Transport DistrictsElectric-power DistrictsHarbour BoardsOther DistrictsTotal
19456,050,09928,334,8812,641,5851,757,78611,535,5229,496,7631,421,30161,237,937
19465,810,59227,896,9732,624,4581,720,62811,190,5869,365,1491,417,47860,025,864
19475,513,45027,270,5132,616,8831,659,28110,841,8138,406,3781,459,94157,768,250
19485,104,42726,985,3052,595,8521,593,23011,093,7228,234,1631,510,77657,117,475
19494,914,28326,405,0362,611,7311,534,12611,579,5138,046,4611,513,87456,605,024
19504,659,88826,482,2652,590,2741,199,64511,996,8327,785,2981,587,86456,302,066
19514,419,26226,578,9742,579,1271,032,52812,461,5127,381,7221,633,47156,086,596
19524,352,44027,517,2262,703,6231,150,69513,003,5047,496,2311,645,45057,869,169
19534,347,09230,136,5283,151,5111,644,69014,421,8568,886,3611,839,14764,427,185
19544,333,24034,208,4133,571,1322,819,58015,969,82910,362,1202,181,25673,445,570
19554,596,49236,815,5473,960,7433,081,53017,213,36310,811,6642,840,71579,320,054

The debt of road districts at 31 March 1955, which is included with that of counties, was £17,964; the town district debt at the same date was £119,339. The debt of "other districts" at 31 March 1955 was mainly that of river districts (£138,054), catchment districts (£638,236), land-drainage districts (£148,267), gas district (£144,826), and fire districts (£1,074,504).

The following table shows the amount of indebtedness, at 31 March 1955, classified according to the purpose for which the loans were raised.

£

Local DistrictsRoads, Streets, Footways, and BridgesDrainage, Sewerage and Water-supplyTramways and OmnibusesElectric Supply and LightingHarbour WorksOther and UnspecifiedTotal
Counties2,785,580425,137 29,9496,5821,331,2804,578,528
Boroughs9,031,22714,126,2011,647,2234,349,54276,1227,465,89336,696,208
Electric-power districts   16,808,955 404,40817,213.363
Urban drainage districts 3,935,990   24,7533,960,743
Urban transport districts  3,081,530   3,081,530
Harbour Boards    10,758,79552,86910,811,664
Other605,66958,683 4,7342,5702,306,3622,978,018
  Totals12,422,47618,546,0114,728,75321,193,18010,844,06911,585,56579,320,054

The debt owing on electric supply and lighting is 26.7 per cent of the total, showing that heavy borrowing has been necessary to finance this utility, while the percentage for drainage, sewerage, and water systems is 23.4.

Domicile of Debt.—A five-year summary of the domicile of loans outstanding, other than inscribed debt, is given hereunder.

At 31 MarchAmountPercentage of Total
New ZealandUnited KingdomAustraliaNew ZealandUnited KingdomAustralia
 £££Per CentPer CentPer Cent
195151,275,9454,359,200362,94391.577.780.65
195253,233,5814,259,200360,43792.027.360.62
195359,885,0664,185,500351,78992.966.500.54
195469,108,0534,032,000304,49194.105.490.41
195575,404,8193,612,000303,23595.074.550.38

During 1954-55 the amount domiciled in New Zealand increased by £6,296,766, while the amounts domiciled in the United Kingdom and Australia decreased by £420,000 and £1,256 respectively.

Debt Charges.—Particulars of the annual loan charge of local authorities during each of the last eleven years are as follows.

£

At 31 MarchOn Debentures and Other SecuritiesOn Inscribed DebtTotalAt 31 MarchOn Debentures and Other SecuritiesOn Inscribed DebtTotal
19454,841,27928,4704,869,74919515,495,7683,0985,498,866
19464,970,90623,8864,994,79219525,804,5785605,805,138
19474,904,19120,8434,925,03419536,293,4421706,293,612
19485,062,36017,6345,079,99419546,996,118366,996,154
19495,118,96914,7535,133,72219557,721,730 7,721,730
19505,278,3829,2075,287,589 

Amortization charges are included in the above, the amount payable during 1955-56 on debt other than inscribed debt at 31 March 1955 being £4,674,453. Interest charges payable during 1955-56 on the debt outstanding at 31 March 1955 aggregated £3,047,277, payable according to countries of domicile, as follows: New Zealand, £2,848,140; Australia, £16,273 (on face value); United Kingdom, £182,864.

The loans outstanding, at 31 March 1955 are classified below according to domicile, and also according to rate of interest. Reference should be made to observations on page 845 in regard to the currencies in which local authority debts are expressed.

£

Rate of Interest Per CentDomiciled in New ZealandDomiciled in United KingdomDomiciled in AustraliaTotal
Free of interest202,803  202,803
31,646,752 9,9001,656,652
3 1/86,785,228 .6,785,228
3 1/419,730,478  19,730,478
3 5/169,575  9,575
3 3/8643,794  643,794
3 1/22,991,122  2,991,122
3 5/876,836  76,836
3 7/1024,421  24,421
3 3/4539,008  539,008
3 7/8141,431  141,431
427,264,011  27,264,011
4 1/8206,340  206,340
4 1/414,672,033  14,672,033
4 2/540,368  40,368
4 1/2113,162767,000 880,162
4 3/5.141,181 15,000156,181
4 3/4100  100
4 4/5165,299  165,299
53,8771,150,000 1,153,877
5 1/51,000  1,000
5 1/4 949,700 949,700
5 1/2 745,30026,731772,031
5 3/46,000 251,604257,604
    Totals75,404,8193,612,000303,23579,320,054

The average rates of interest work out as follows: New Zealand, 3.72 per cent; United Kingdom, 5.06 per cent; Australia, 5.58 per cent: total, 3.79 per cent.

The interest rates quoted are those applicable to the amount of debt outstanding. They have not been adjusted to the prices at which the respective loans were raised—e.g., where a loan was issued below par the rate of interest on the sum actually received (omitting the question of flotation expenses) would be higher than the rates quoted above.

Loan Maturities.—The following table classifies loans outstanding at 31 March 1955 according to years of maturity and countries of domicile.

£

Years of Maturity (Ended 31 December)New ZealandUnited KingdomAustraliaTotal
Overdue3,200  3,200
1954-552,526,161 1322,526,293
1956-6018,854,1792,910,00044,60021,808,779
1961-6526,990,894702,00024,50327,717,397
1966-7011,849,592  11,849,592
1971-757,422,878 234,0007,656,878
1976-806,635,406  6,635,406
1981-20051,122,509  1,122,509
    Totals75,404,8193,612,000303,23579,320,054

Table loans, including advances from Government, account for £26,742,205 of the above total, loans in which a number of debentures are redeemed each year or half-year for £37,865,368, and loans with one fixed maturity date for £14,712,481. In the case of table loans the year of maturity is taken as that in which the final instalment is payable. Practically the whole of the debt domiciled abroad is composed of loans with one fixed date of maturity.

Loans Sanctioned, Authorized, Raised, and Uplifted.—Consents to borrowing by local authorities have been much higher during the last ten years than for any earlier period, while there were particularly large increases for the last five years. The low figures of the amounts sanctioned for new works during the period up to 1945-46 may be ascribed to factors arising out of the war, while the larger amounts shown for later years are due to the commencement of deferred works and to exceptional development in most forms of local activity. The reduction in the most recent year was caused by the restriction of loan sanctions to essential works as an anti-inflationary measure.

The following summary of the operations of the Local Authorities Loans Board during the last eleven years shows concisely the trend of local authority borrowing during that period. Hospital Boards are included in this instance.

£

YearTotal ApplicationsSanctioned
New WorksRedemption Loans
1945-463,497,8202,643,935243,235
1946-479,843,5437,289,4361,106,430
1947-488,324,5796,022,0341,459,880
1948-498,934,7056,977,2891,542,177
1949-508,062,7586,602,220761,957
1950-5110,825,1929,242,938485,550
1951-5215,092,76113,891,2971,029,246
1952-5329,129,99617,853,560196,330
1953-5424,908,48523,982,810300,204
1954-5528,586,66625,818,955448,971
1955-5622,503,90615,462,255437,400

From statistics of borrowing which local authorities are required to furnish quarterly, it is possible to ascertain the amount of loan authorizations granted and exercised since 1 April 1954. The tables below show summaries of borrowing at 31 March 1956 by each class of local authority.

LOANS AUTHORIZED DURING YEAR ENDED 31 MARCH 1955—AMOUNTS RAISED AND UPLIFTED TO 31 MARCH 1956

£

Local AuthorityAmounts AuthorizedYear Ended 31 March 1955Year Ended 31 March 1956Balance Unexercised at 31 March 1956
Amounts RaisedAmounts Uplifted*Amounts RaisedAmounts Uplifted*

* For the authorizations listed.

† Original amount £23,912,355.

County Councils1,101,635396,140219,850349,205473,515356,290
Borough Councils7,456,4203,529,7753,141,7002,239,9652,438,7401,686,680
Town Councils24,1005,0005,00014,00014,0005,100
Road Boards2,0002,0002,000   
River Boards8,0008,0008,000   
Catchment Boards96,70076,70057,20020,00039,500 
Land-drainage Boards2,3002,3002,300   
Electric-power Boards3,132,9001,575,8701,381,4701,159,7301,238,805397,300
Urban Drainage Boards1,405,000417,300292,300490,900599,400496,800
Urban Transport Boards402,0002,000 165,500167,500234,500
Harbour Bridge Authority5,198,710346,030277,930659,680329,4084,193,000
Rabbit Boards20,90011,5006,5009,40014,400 
Fire Boards277,990176,690141,00097,000103,9904,300
Harbour Boards2,080,000727,400543,6211,034,500988,919318,100
Hospital Boards2,618,2001,164,8001,058,4001,051,4601,077,860401,940
Totals23,826,8558,441,5057,137,2717,291,3407,486,0378,094,010

LOANS AUTHORIZED DURING YEAR ENDED 31 MARCH 1956, WITH AMOUNTS RAISED AND UPLIFTED

£

Local AuthorityAmount Authorized During YearAmount Raised During yearBalance Unexercised at End of YearAmount Uplifted During Year*

* For the authorizations listed.

† Original amount £18,341,300.

County Councils1,481,700628,000853,700483,000
Borough Councils6,742,2002,304,4654,437,7352,090,165
Town Councils25,65025,40025023,400
Road Boards7,000 7,000 
River Boards47,85025,45022,40017,450
Catchment Boards57,50047,50010,00022,500
Land-drainage Boards4,5003,0001,5003,000
Electric-power Boards3,360,2001,537,9101,822,2901,506,790
Urban Drainage Boards1,815,400169,8751,645,525169,875
Urban Transport Boards740,00075,450664,55075,450
Gas Board30,000 30,000 
Rabbit Boards27,50025,9501,55023,950
Fire Boards322,610115,250207,360115,250
Harbour Boards1,572,940774,650798,290343,521
Hospital Boards2,091,069466,9501,624,119378,200
Totals18,326,1196,199,85012,126,2695,253,151

Statistics of the amounts authorized are available from the 1952-53 financial year, and the following table shows comparative debt figures.

£

Year Ended 31 MarchAmounts Sanctioned by Loans BoardAmounts Authorized by Orders in CouncilGross Indebtedness at Beginning of YearAmount UpliftedPrincipal RepaidGross Indebtedness at End of Year

† Adjusted for amounts revoked or lapsed.

* Estimated.

195318,049,89010,843,85364,181,98111,641,0444,043,02471,780,001
195424,283,01412,121,81771,780,00116,621,9324,778,77783,623,156
195526,267,92623,551,46583,623,15612,804,2695,493,26690,934,159
195615,899,65517,608,80990,934,15915,139,7375,210,232100,863,664
195717,262,79019,636,730100,863,66420,000,000*5,500,000*115,363,664*

Interest Reduction and Loans Conversion.—As part of a general policy of a reduction in interest rates the National Expenditure Adjustment Act 1932 imposed, amongst other things, a stamp duty of 10 per cent on interest derived from local authority securities. The proceeds, less 5 per cent as administrative charges, were paid to the respective local authorities. This duty was abolished by the Local Authorities Interest Reduction and Loans Conversion Act 1932-33, which followed somewhat similar legislation dealing with the public debt. Interest rates on local-authority securities in excess of 41 per cent per annum were reduced by 20 per cent, or to a minimum of 4½ per cent. Local authorities were also empowered to draw up individual conversion schemes at a lower and more. uniform rate of interest rest, Dissentients to any such scheme were penalized by a reduction of 331 per cent below the original rate.

The provisions of the Local Authorities Interest Reduction and Loans Conversion Act 1932-33 ceased to operate on 31 December 1935, at which date 90 per cent of the debt convertible at 31 March 1933 had been converted; but provision was contained in section 20 of the Finance Act (No.2) 1935 for voluntary conversion to be carried out under the provisions of the principal Act.

The Local Authorities Interest Red Reduction and Loans Conversion Amendment Act 1934 limited future. borrowings to an interest rate not exceeding 3t per cent, with provision, however, for varying the rate by Order in Council under the Local Government Loans Board Act 1926. In May 1939 the maximum was raised to 4¼ per cent, but during the period 1941 to 1947 market conditions were responsible for a reduction to 3¼ per cent. In 1952 the rate was raised again to a maximum of 4 per cent. The Local Government Loans Board Amendment Act 1954 placed the determining of rates of interest in the hands of the Board, subject to the approval of the Minister of Finance. In October 1955 the maximum rate was raised to 4¼ per cent, and a further increase to 4¾ per cent was made in March 1956. In June 1956 a scheme of graduated rates was introduced providing for the terms of five, eight, and twelve years the maxima of 4⅝, 4¾, and 4⅞ per cent respectively.

EMPLOYMENT BY LOCAL AUTHORITIES.—Employment by local authorities comprises principally the construction and maintenance of roads and streets, and the operation and maintenance of public-utility industries (gas, electric supply, and tramways), and social services .

Particulars relating to wage-earning employees employed by the various classes of local authorities during the five-year period 1950-51 to 1954-55 are presented in the next table. The figures shown are averages of the numbers employed at the fifteenth (or nearest representative day) of each month. The statistics do not cover Hospital Boards and Electric Power Boards. Employees of Electric Power Boards are included in the figures in Section 26A (Electric Power) (their average number during 1954-55 was 2,352), while employees of Hospital Boards are shown in a subsequent table.

Class of Local DistrictNumber of Wage Earners (Average of Twelve Months Ended March)
19511952195319541955
Counties3,3253,3663,3653,4443,605
Boroughs8,8268,5478,9159,2019,295
Town districts1211281178367
Road districts2033191214
River districts5248404238
Catchment districts215278287341343
Land-drainage districts5954514646
Water-supply district55564
Urban drainage districts187200215234251
Urban transport districts2,1362,1532,0691,9731,845
Local railway district2218181815
Gas district3940363535
Milk districts11114
Nassella tussock districts910111918
Joint Transit Housing Committee33322
Plantation Board    11
Rabbit districts1,2271,2211,1581,003907
Fire districts498481472479467
Harbour Boards2,5782,4273,0052,9993,001
All districts19,32319,01319,78719,938 

The institutional staff of public hospitals and charitable institutions under the control of Hospital Boards was as follows for each of the five years ended 31 March 1955.

Nature of Staff19511952195319541955
Stipendiary medical9179731,0141,0651,122
Other professional and technical9029641,0631,1541,143
Nursing7,3927,6188,1018,2168,307
Maintenance and ground785842860872764
Other institutional5,8136,0086,3246,2776,838
  Totals15,80916,40517,36217,58418,174

The numbers of visiting medical staff of Hospital Boards for the last five years ended 31 March are as follows: 1951, 563; 1952, 542; 1953, 576; 1954, 598; and 1955, 597.

Chapter 32. SECTION 32—BANKING AND CURRENCY

Table of Contents

BANKING institutions operating in New Zealand may be enumerated as follows:

  1. The Reserve Bank of New Zealand.

  2. Five trading banks.

  3. The Post Office Savings Bank.

  4. Five trustee savings banks.

In addition, a number of trading companies, investment societies, etc., perform quasi-banking functions, accepting deposits and granting credits (short-term and long-term) to clients. In some instances deposits are repayable to the client's order at call—virtually a system of cheque issuing.

Until the establishment of the Reserve Bank, which commenced to function on 1 August 1934, each of the six trading banks then functioning held the right of note issue, but this right is now vested solely in the Reserve Bank.

A full description of banking practice in New Zealand is beyond the scope of a Year-Book Section, but those desiring information on this subject may usefully refer to the report of the Parliamentary Monetary Committee, parliamentary paper B.3 (1934), and to its minutes of evidence, published as an appendix; also to the report of the Royal Commission on Monetary, Banking, and Credit Systems, published as parliamentary paper B.3 (1956). For details of legislation governing banking a publication entitled "Banking Legislation in New Zealand," published in 1948, may be obtained from the Reserve Bank of New Zealand, Wellington.

The Government in March 1955 announced the membership and order of reference of the Royal Commission on Monetary, Banking, and Credit Systems. The order of reference was as follows: "With a view to fostering a greater degree of stability in prices, maintaining full employment of labour, ensuring the healthy development of natural resources, and promoting generally the economic, financial and social welfare of the people of New Zealand, the Commission shall receive, inquire into, and report upon representations regarding any monetary, banking, and credit proposals that may be suggested as suitable for application in New Zealand; the present monetary, banking, and credit system of New Zealand and the advisability or otherwise of any changes in the system; and any associated matters which should be deemed by the Commission to be relevant to the general objects of the inquiry".

The report of the Royal Commission was released in April 1956, and is available as parliamentary paper B. 3 (1956) from the Government Printer. A summary of the report (reprinted from the April 1956 Reserve Bank of New Zealand Bulletin) was given as Appendix (d) of the 1956 Year-Book.

THE RESERVE BANK.—The Reserve Bank was constituted by the Reserve Bank of New Zealand Act 1933 (amended in minor respects by the Finance Act 1934) with the primary object of exercising control, within defined limits, over monetary circulation and credit in New Zealand. As originally constituted, the Bank had a share capital of £500,000, composed of 100,000 publicly subscribed shares of £5, bearing a cumulative dividend of 5 per cent. Very important changes in the constitution of the Bank were made by the Reserve Bank Amendment Act 1936, which, inter alia, abolished the subscribed share capital of the Bank, with provision for the repayment to shareholders (either in cash or in Government stock, at the option of the shareholder) of the value of shares held and accrued dividends. The General Reserve Fund of the Bank is maintained at £1,500,000, made up of a contribution of £1,000,000 by the Government at the passing of the original Act, and £500,000 to replace share capital after the passing of the 1936 Amendment Act. It will be seen that the whole of the reserve fund is contributed by the State—the Bank thus being State-owned. Additional powers were conferred on the Reserve Bank by the Finance Act (No. 2) 1936, and further important changes were made by the Reserve Bank of New Zealand Amendment Acts of 1939 and 1950.

The general function of the Bank, as defined in section 10 (1) of the Reserve Bank of New Zealand Amendment Act 1936 and as amended in 1950, is as follows: " It shall be the general function of the Reserve Bank, within the limits of its powers, to give effect as far as may be to the monetary policy of the Government as communicated to it from time to time by the Minister of Finance. For this purpose, and to the end that the economic and social welfare of New Zealand may be promoted and maintained, the Bank shall regulate and control credit and currency in New Zealand, the transfer of moneys to or from New Zealand, and the disposal of moneys that are derived from the sale of any New Zealand products and for the time being are held overseas, and shall do all such things within the limits of its powers as it deems necessary or desirable to promote and safeguard a stable internal price-level and the highest degree of production, trade, and employment that can be achieved by monetary action."

The provisions of section 10 (1) of the principal Act were amplified by section 2 of the amending Act of 1939, which read as follows: "In the exercise of their functions and powers under the principal Act, the Governor and Board of Directors shall have regard to any representations that may be made by the Minister of Finance in respect of any functions or business of the Reserve Bank, and shall give effect to any decision of the Government in relation thereto conveyed to the Governor in writing by the Minister of Finance." This section was, however, repealed by the 1950 amendment, and the following section substituted: " In the exercise of their functions and powers under the principal Act, the Governor and the Board of Directors shall give effect to any resolution of the House of Representatives in respect of any functions or business of the Reserve Bank." This section is subordinate to section 10 (1) as amended and its practical effect is that, if the Reserve Bank is not in agreement with the policy as communicated by the Minister of Finance, the matter may be referred to Parliament, which, by resolution in the House of Representatives, may direct a certain course of action.

The principal powers and functions of the Bank under the existing legislation are as follows:

  1. Make and issue bank notes (see heading in "Coinage and Currency," post).

  2. Buy and sell gold and silver coin and bullion.

  3. Accept money on deposit or on current account.

  4. Discount, rediscount, buy, and sell: (a) bills, notes, etc., whether commercial or agricultural, maturing within one hundred and twenty days from date of document or ninety days after sight; (b) agricultural bills, notes, etc., maturing within six months of acquisition; (c) Treasury bills of any Government, or bills of any local authority in any British Commonwealth country, all such bills to be maturing within three months of acquisition.

  5. Grant advances, up to three months, against: (a) gold coin or bullion or relative shipping documents thereof; (b) Government, local authority, or other approved securities readily marketable in New Zealand; (c) bills, etc., as referred to above; (d) promissory notes of banks in New Zealand.

  6. Grant accommodation by way of overdraft (a) to the Government of New Zealand; (b) to any Department of State or statutory authority having power to carry on any business or to borrow moneys on overdraft; (c) to any Board or other authority having statutory powers in relation to the marketing of any New Zealand produce, for the purpose of financing and marketing of any such produce.

  7. Advance moneys to the Government of any other country in respect of the purchase of any New Zealand produce for export to that country, or guarantee any such advance that may be made by another bank. The amount outstanding in respect of any advances or guarantees in this respect shall not at any time exceed in the aggregate the sum of £10,000,000, and any loss suffered in respect of any such transaction is to be borne by the Consolidated Fund.

  8. Buy and sell securities of the New Zealand or United Kingdom Governments, or securities guaranteed by the Government of New Zealand or by the Government of the United Kingdom.

  9. Buy and sell currencies of other countries.

  10. By authority of the Governor-General in Council, underwrite any loan proposed to be raised by the New Zealand Government, or by the State Advances Corporation of New Zealand.

  11. Issue and manage loans for the Government or any local authority or public body in New Zealand.

  12. Borrow moneys outside New Zealand for any purpose connected with the issue, repayment, or conversion of any New Zealand Government securities.

  13. Keep a register of inscribed stock on behalf of a local authority or public body.

  14. Organize a clearing system.

  15. Act as a correspondent for overseas banks or as agent of other reserve banks.

  16. Do any other banking business not prohibited by the Act.

It is the duty of the Government to entrust to the Bank, and of the Bank to undertake, all the money, remittance, exchange, and banking transactions of the Government. The duty of the Bank in respect of reserves is set out later.

The Bank administers the Exchange Control Regulations on behalf of the Government.

The following gives a summary of those restrictions upon the conduct of business by the Bank as slated in the Reserve Bank of New Zealand Act 1933 and in later amendments. It may not issue bank notes of a denomination less than ten shillings; engage in trade or otherwise have a direct interest in any commercial, industrial, or similar undertaking; purchase the shares of any other bank in New Zealand or elsewhere (except shares of the Bank of International Settlements) or grant loans on the security of any shares that the Bank is prohibited from purchasing; make unsecured loans or advances; purchase or make advances on the security of real property, except so far as may be required to enable the Bank to conduct its business; pay interest on any moneys deposited with the Reserve Bank by any other bank or pay interest on any other moneys placed on deposit or on current account with the Bank, except that it may pay interest to the New Zealand Government on Government funds held by the Bank outside New Zealand; allow the renewal of maturing bills of exchange, promissory notes, or other similar documents purchased or discounted by or pledged to the Bank; draw or accept bills payable otherwise than on demand; and it may not grant accommodation to any state Department, local authority, or public body in excess of certain limits.

On the commencement of business on 1 August 1934 the Public Account was transferred to the Reserve Bank, and the management of the public debt was taken over from the Treasury by the Reserve Bank as from 1 October 1936.

The net profits of the Bank are paid to the Consolidated Fund, provided that the Bank's General Reserve Fund is not less than £1,000,000. If the Reserve Fund falls below that level, part of the profits must be credited to the Reserve Fund. The net profits for the year ended 31 March 1956, which were subsequently paid to the Consolidated Fund, amounted to £2.674,432, as compared with £2,058,902 for the previous year.

Any appreciation or depreciation of assets due to alteration in the exchange rate are to be credited to or borne by the Consolidated Fund. In accordance with this provision, the Reserve Bank was credited with the sum of £20,576,207 from the Consolidated Fund in early 1949 by the Government as a result of the alteration of the exchange rate to parity with sterling as from 20 August 1948.

Details of the liabilities and assets of the Bank at the end of June for the years 1952-56, and weekly averages for the calendar years 1946-56, are shown in the following tables.

LIABILITIES OF RESERVE BANK

£(000)

YearBank NotesDemand LiabilitiesOther Liabilities*Total Liabilities
StateMarketingBanksOther

* Includes General Reserve Fund of £1,500,000 throughout the period.

† On and after 20 August 1948 overseas assets and liabilities were converted into New Zealand currency at rate £(stg.)100=£(N.Z.)100.

‡Included in these figures are the weekly averages in Wool Retention Accounts: 1950, £117,000; 1951, £4,204,400; and 1952, £6,000.

Weekly Average for Calendar Year
194645,16917,30259,7315244,919127,646
194747,68213,26557,1024834,911123,443
194848,93013,22857,7063805,115125,359
194951,31211,38473,8373555,368142,255
195055,12615,44674,2391,2326,290152,333
195160,36118,84469,3264,9296,765160,224
195262,25214,96248,5574907,387133,648
195364,0356,1543,62190,7411,3688,249174,167
195469,2339,2941, 76978,3281,9158,917169,456
195570,08714,1802,09355,7511,0709,095152,277
195670,90412,5571,96360,0321,6469,886156,989
At End of June
195261,22511,53044,4264298,017125,628
195362,6054,741 102,2492,5948,921181,111
195467,4798,16723386,4802,0897,896172,344
195568,5811,5212,20045,4491,3688,154137,272
195669,43110,1152,08172,3264,1208,585166,657

ASSETS OF RESERVE BANK

£(000)

YearReserveSubsidiary CoinAdvancesInvestmentsOther Assets*
GoldSterling ExchangeOther Exchange*StateMarketing OrganizationsOther Advances and DiscountsOverseasIn New Zealand

* Prior to 1950 the figures for "Other Exchange" were included under "Other Assets".

† On and after 20 August 1948 overseas assets and liabilities were converted into New Zealand currency at rate £(stg.)100 = £(N.Z.) 100.

Weekly Average for Calendar Year
19462,80281,332 3635,127961 4,1241,8671,396
19472,80285,300 4728,5101,15753,8267491,046
19482,80265,090 10435,1821,6982,4375,7044,7927,549
19493,22348,995 19337,6283,4824,9077,12134,7341,973
19504,26951,31925618052,2455,0965,3784,46326,8502,277
19515,13962,55738347351,1343,3796,8299,98817,1193,224
19525,85623,4161,23560150,7952,2906,12530,24411,3251,761
19536,02358,48758862653,2254,7616,02022,97520,511952
19546,15074,48142859938,4186,6928,93823,5579,279913
19556,16346,71042457135,58117,38810,93922,95410,666882
19566,16239,75153558641,23115,81812,36426,95912,503 
At End of June
19525,91320,7411,70357450,0004,8126,01932,140423,683
19536,02165,89866562752,63111,1446,01923,84013,1661,100
19546,17093,51943860730,05611,4315,36923,716234805
19556,16154,34037457912,49721,8416,93422,89110,3661,289
19566,16251,71541359736,61217,25214,85927,78610,387875

NOTE.—Total assets are equal to total liabilities.

The fall in the Reserve Bank's holding of sterling exchange in 1952 was due partly to the abnormally large volume of imports and partly to the conversion of liquid funds into sterling investments. Normally the Reserve Bank's sterling exchange is held in the form of British Treasury bills (short-term rate of interest), but as a matter of policy it was decided to invest a part of these funds in short- and medium-term British Government securities, which are included in the Reserve Bank's investments.

TRADING BANKS.—The Banking Act 1908, which consolidated the law of New Zealand relating to the general business of banking in this country, provides that the incorporation of banks by Royal Charter shall be as effectual within New Zealand as Acts of the General Assembly. The number of directors is prescribed by the Act, and authority is given to any bank to increase its capital on a resolution of the shareholders. Transfers of shares on which there is any liability must be approved by the directors or their duly appointed attorney or attorneys. A sworn copy of an entry in the books of a bank shall in all legal proceedings be evidence of such entry, and a bank is not required in any legal proceedings to which it is not a party to produce its books before a Court, unless ordered by a Judge for special cause. Provision is made for the destruction of cheques, drafts, bills of exchange, or promissory notes after the expiration of ten years from the date thereof in the case of documents payable on demand, or from the due date in the case of other documents.

Part II of the Bills of Exchange Act 1908 consolidated the law relating to cheques on a bank.

The provisions of sections 127 and 128 of the Companies Act 1955 (relating to branch registers) apply to banks incorporated in New Zealand; and those of sections 407 to 412 (imposing restrictions on the sale of shares and debentures) apply to companies incorporated outside New Zealand for the purpose of carrying on banking in New Zealand or elsewhere; the provisions of Part XV of the Act (which relate to annual licences) shall as far as they are applicable apply to banks; and also the provisions of section 464 (2) (which relates to the production and inspection of books where an offence is suspected); otherwise the Companies Act does not apply to banks.

With the establishment of the Reserve Bank of New Zealand, which commenced to function on 1 August 1934, there was inaugurated an entirely new era in banking practice in New Zealand. The function of note issue was transferred from the trading banks to the Reserve Bank; while all gold coin or bullion held by trading banks for their own account was required by the Reserve Bank of New Zealand Act 1933 to be transferred to the Reserve Bank in exchange for equivalent notes of the Reserve Bank or for credit with that Bank. The basis of payment was £3 17s. 10 1/2d. per ounce of standard—i.e., eleven-twelfths fine—gold content, which was the price at which such gold (in actual fact, coin only) had originally been acquired by the trading banks. Any profit derived from the sale of this gold overseas by the Reserve Bank accrues to the State and not to the Reserve Bank.

While the regulation of currency exchange is now a function of the Reserve Bank, commercial exchange transactions are still carried out through the medium of the trading banks.

Each trading bank is required to maintain with the Reserve Bank a balance comprising a proportion of its demand liabilities in New Zealand, and of its time liabilities in New Zealand. These requirements may be varied by the Governor of the Reserve Bank, acting with the authority of the Minister of Finance, but not so as to be less than 7 and 3 per cent respectively. For a summary of the changes in these proportions refer to page 863.

There are five banks trading in New Zealand, two of these institutions—the Bank of New Zealand and the National Bank of New Zealand—being incorporated by special Acts of the General Assembly of New Zealand. The other three banks, which are predominantly Australian institutions, have in the aggregate much greater capital resources, etc., than the two New Zealand banks. The close Australian affiliations of the Australian banks operating in New Zealand resulted in the past in an interlocking between the Australian and New Zealand financial structures, the separation of New Zealand business being one of the major motives leading up to the founding of the Reserve Bank.

Bank of New Zealand.—On the passing of the Bank of New Zealand Act 1945, which came into operation on 1 November 1945, the Bank of New Zealand became a State trading bank. Prior to the passing of the Act the Bank was partly State-owned, the New Zealand Government holding preference and certain long-term mortgage shares to the aggregate value of £2,109,375 out of a total paid-up capital of £6,328,125. The Act provided for the acquisition by the Crown of the whole of the remaining shares registered in New Zealand, and also made provision for the purchase by the Crown of shares registered in the United Kingdom or Australia.

The gross profit of the Bank for the year ended 31 March 1956 was £4,783,221, while expenses amounted to £4,272,725, leaving a net profit of £510,496. Comparable figures for the previous year were £4,144,777, £3,583,1 11, and £561,666 respectively. The total assets at 31 March 1956 amounted to £141,785,164, the principal items comprising this total being: coin, Reserve Bank notes, and deposits with bankers, £18,713,928, money at call and short notice, Government securities and other securities in London, £8,692,760, securities of, or guaranteed by, New Zealand Government, £11,371,271, and advances, etc., £76,653,960. The principal item of liabilities was deposits (£120,227,374), while bills payable, etc., amounted to £8,660,043. The reserve fund, which is invested in United Kingdom Government securities, amounted to £3,575,000, and provision for taxation to £1,050,000. The paid-up capital of the Bank remained unaltered at £6,328,125.

Liabilities and Assets of Trading Banks.—Statements of liabilities and assets of the trading banks were gazetted quarterly up to 1934. Since the Reserve Bank commenced operations the trading banks have been required to submit at monthly intervals a return of certain liabilities and assets in respect of New Zealand business. Monthly averages for calendar years 1946-56, and figures as at the last Wednesday in June for the years 1952-56, are given in the next table.

LIABILITIES OF TRADING BANKS

£(000)

YearDemand LiabilitiesTime LiabilitiesTotal Liabilities
In New ZealandOutside* New ZealandIn New ZealandOutside* New Zealand

* On and after 20 August 1948 overseas liabilities were converted into New Zealand currency at rate £(stg.)100= £(N.Z.) 100.

Monthly Average for Calendar Year
1946117,0711,33434,414100152,919
1947128,1154,87637,870317171,178
1948138,2116,94740,403295185,856
1949150,6997,05639,016439197,210
1950167,5267,03939,787428214,781
1951196,6637,67659,4052,378266,122
1952187,4788,55267,9851,034265,048
1953210,2364,52358,147816273,722
1954233,6095,31655,040963294,928
1955236,8765,91152,1161,041295,943
1956236,4855,86042,269857285,471
At End of June
1952192,18610,48167,244732270,643
1953219,3783,94157,804848281,971
1954240,9445,73150,7801,100298,554
1955238,6234,67846,093740290,133
1956240,7595,10043,937815290,611

ASSETS OF TRADING BANKS

£(000)

YearCoin and BullionReserve Bank NotesBalances Held in Reserve BankOverseas Assets*Securities HeldAdvances and DiscountsLand, Buildings, etc.Total Assets

* On and after 20 August 1948 overseas assets were converted into New Zealand currency at rate £(stg.)100= £(N.Z.) 100.

Monthly Average for Calendar Year
19467276,88060,18613,97628,46258,3421,957170,530
19479097,50057,63118,48823,03776,2472,118185,930
19481,4107,87259,53120,70618,89686,4702,180197,065
19491,5158,69775,90822,02114,67081,9812,278207,069
19501,6819,81375,18024,83013,40794,0652,557221,533
19511,52811,47670,27437,33013,243133,0793,085270,016
19521,47311,10851,14926,57113,036166,5603,583273,481
19531,53310,62593,09325,58414,037134,4554,059283,385
19541,44711,08979,36125,99125,153154,7874,510302,338
19551,37110,22856,94725,64725,171180,0475,315304,728
19561,33810,91760,26619,12023,783167,3856,157288,966
At End of June
19521,41911,08344,25030,74013,090173,0563,469277,108
19531,5099,858102,12631,69013,848128,2954,044291,371
19541,46210,34386,35928,16126,100149,4584,437306,320
19551,3549,57745,47731,24625,941184,3025,276303,174
19561.3159,93672,21625,59123,793164,6816,104303,636

Deposits and Advances.—The weekly averages of total deposits (together with the amount per head of mean population), and of total advances, and the ratio of advances to deposits for each of the last eleven calendar years, are given in the following table.

YearDepositsAdvances
Not Bearing Interest (Free)Bearing Interest (Fixed)Ratio of Free to Fixed Total* Per Head of Mean PopulationTotal AmountRatio to Deposits

†Exclusive of transfers bye the bank of New Zealand to its Long Term Mortgage Department.

*Including Government deposits.

 ££Per Cent££s.d.£Per Cent
1946111,289,14737,019,091300.63149,777,364852658,270,84338.90
1947122,068,10440,459,866301.70164,169,5209151076,475,73446.58
1948130,940,69242,690,257306.72175,668,6709515088,159,76450.19
1949142,597,89441,292,234345.34186,092,099998583,357,04244.79
1950157,571,26542,201,491373.38202,200,42310518394,715,11746.84
1951205,335,65342,500,225483.14250,722,652128149132,916,94553.01
1952207,043,71842,436,002487.90252,967,759126147169,841,48667.14
1953222,077,41539,831,913557.54265,269,41112996136,827,10851.58
1954236,546,09240,721,325580.89281,750,319134910156,972,82355.71
1955233,363,20739,413,672592.09279,855,391130169182,928,54165.37
1956229,365,49735,245,449650.08268,734,43912326170,648,39663.50

It will be observed that free deposits have shown a phenomenal increase over the period covered by the table, the difference in the average for 1956 as compared with 1946 being £118 . 1 million or 106 per cent. Fixed deposits moved slowly upward s from 1944 to 1948, remained stable until 1952, fell in 1953, rose slightly in 1954, and decreased in 1955 and 1956. Advances rose steadily until 1955 (apart from a check in 1949 and fluctuations associated with the import boom in 1952). During 1956 the policy of credit restraint induced a substantial decline.

The following diagram illustrates the movements that have occurred in deposits and advances from 1930 onwards, the figures used, as in the foregoing table, being the weekly averages for calendar years.

The average amount on deposit during each of the quarter months since March 1952 is shown in the next table.

£

Month19521953195419551956
March260,171,824257,892,154282,892,916291,819,045277,912,252
June256,333,329276,430,522293,024,729286,481,921274,723,697
September242,416,672264,394,682274,288,535267,710,042258,594,954
December248,160,573271,305,214282,769,380270,405,358269,267,648

The average amount of advances outstanding (exclusive of transfers by the Bank of New Zealand to its Long Term Mortgage Department) during each of the quarter months since March 1952 is next shown.

£

Month19521953195419551956
March189,257,482142,133,063148,588,065184,771,089182,100,590
June179,166,440132,163,069150,763,920187,807,105169,402,547
September164,488,852135,394,669166,035,989181,730,116166,337,549
December147,770,534140,651,034173,355,431181,163,521161,442,348

The following table shows the movement in advances, Government and other securities held, and deposits during the years 1946-56, the amounts being the averages of the figures for the last Monday of each month for 1946, and the last Wednesday of each month from 1947 onwards.

YearAdvances (Including Discounts)Securities HeldTotal Advances and SecuritiesTotal DepositsRatio of Advances (Plus Securities) to Total Deposits
GovernmentOther
 £££££Per Cent
194658,341,77226,168,2282,293,47686,803,476150,682,01457.61
194776,246,65820,913,0532,123,54999,283,260164,894,84060.21
194886,469,96016,953,4751,942,263105,365,698177,636,66059.32
194981,980,87412,856,2261,813,36396,650,463188,385,16151.30
195094,065,05711,730,3021,676,714107,472,073205,295,05852.35
1951133,079,45911,716,0601,527,155146,322,674253,918,28057.63
1952166,559,74811,700,8511,335,422179,596,021253,527,52870.84
1953134,455,45511,688,2312,348,383148,492,069266,988,72555.62
1954154,787,15812,002,15413,150,673179,939,985283,906,62963.38
1955180,047,35611,618,44513,552,372205,218,173282,096,47772.75
1956167,384,59911,376,47312,406,080191,167,152269,847,09970.84

The fall in the value of Government securities held by the trading banks in the post-war years reflected the policy of the Government, which was to repay the trading banks' holdings of stocks as they matured and not to permit reinvestment of the proceeds in Government stocks. The increase in other securities from 1954 reflects the sales of State Advances Corporation securities totalling £12 million to the trading banks in December 1953 and March 1954.

An analysis of advances of the New Zealand trading banks at quarterly intervals is published by the Reserve Bank of New Zealand, and the classification for four quarters to March 1957 is given in the following table.

£(000)

27 June 195626 September 195612 December 195613 March 1957
BUSINESS AND FARMING ADVANCES
1. Farming, forestry, hunting, and fishing—
  (a) Mainly dairy farming11,95411,60611,95110,579
  (b) Mainly sheep farming9,45710,75511,3369,066
  (c) Other farming4,6114,4904,5813,955
  (d) Farm services424529544532
  (e) Forestry, hunting, and fishing613530558551
    Sub-totals27,05827,91028,97024,684
2. Mining and Quarrying382351345401
Manufacturing—
  (a) Dairy companies, factories, etc.2,2279.5666,9323,175
  (b) Freezing works, meat companies, etc.15,6446,9505,54118,550
  (c) Other food, beverages, and tobacco5,2765,1035,5054,682
  (d) Textiles, footwear, and clothing5,2845,6934,7025,863
  (e) Pulp and paper and paper products2,1611,9402,3292,596
  (f) Metal products, machinery, and engineering7,2556,7936,3846,736
  (g) Transport equipment2,5182,4242,7082,801
  (h) Other manufacturing10,64010,78810,71911,314
    Sub-totals51,00649,25644,81855,717
4. Construction7,0037,0977,1437,399
5. Electricity, gas, water, and sanitary services1,0061,1051,2761,342
6. Transport, storage, and communication3,1483,0253,1543,151
7. Commerce, trade, and finance—
  (a) Wholesalers, mainly importers12,13312,95413,03313,236
  (b) Wholesalers, other4,4644,0944,1814,601
  (c) Retailers14,53113,92814,95413,793
  (d) Woolbuyers5,4252,2755,53510,288
  (e) Stock and station agents1,6473,9984,5863,383
  (g) Finance companies (mainly hire-purchase)1,7401,6791,7581,803
  (g) Other financial institutions2,3752,3372,0841,758
    Sub-totals42,31441,26446,13048,862
8. Local bodies1,1369051,767857
9. Services7,6127,1366,8117,082
    Personal Advances    
10. (a) For housing purposes8,2117,6147,5567,552
(b) Other personal advances9,5129,2768,8579,433
    Sub-totals17,72316,89016,41316,985
    Total Advances158,390154,938156,827166,480

A table drawn from Reserve Bank published sources, showing a regional analysis of trading bank advances as at 25 June 1952, was given on page 678 of the 1953 issue of the Year-Book.

Advances Control Policy.Qualitative: As part of the Government policy designed to combat inflationary tendencies during wartime, from 1943 onwards the trading banks were precluded from increasing their holdings of securities, and existing holdings of Government stock were repaid as they matured. An earlier measure, from January 1942, was the selective control of trading-bank advances by the Reserve Bank in co-operation with the trading banks. The general aim was to prevent the expansion of bank credit for speculative and other purposes considered inimical to the war effort. The necessity for such controls was also a feature of the immediate post-war years. The Reserve Bank issued statements in 1947 and 1948 outlining the existing policy in this respect, and indicating the inclusion in the restricted categories of advances for purely investment purposes, capital expenditure for business, industrial and commercial purposes, building, purchasing or refinance of dwellings, in addition to those speculative and other classes previously covered.

Marginal cases and others involving special circumstances were referred to the Reserve Bank, the trading banks from time to time being given more discretion in dealing with such cases.

In March 1950 this discretion was extended so that marginal applications need only be referred to the Reserve Bank in cases where the term of the proposed advance exceeded two years and where the amount was also in excess of £2,000.

A major relaxation in the policy became effective from 24 May 1950. Advances for amounts up to £2,000 from each applicant were exempted from control, while the discretionary limit was raised to an amount not greater than £4,000, the latter being in order to allow for the new situation in which the first £2,000 was freed from control.

The number of restricted classes was reduced. In 1947 temporary finance for one year for the building of dwellings, and again in August 1949, advances to enable primary producers to purchase essential farm equipment and machinery up to the limit of £1,500, provided repayment was made within two years, were taken out of the restricted categories. As from 24 May 1950 advances for the following classes of purchase were excluded from control, irrespective of the amount concerned: (a) livestock needed for primary production; (b) farm machinery, farm vehicles, and farm implements; and (c) tools of trade (exclusive of industrial machinery).

The Reserve Bank issued a statement on advances control policy on 17 December 1951, the measures listed therein being designed to modify certain trends shown in aggregate bank advances with some undesirable consequences—namely, (a) a high level of demand supported by bank credit was accentuating the tendency of prices to rise, (b) an abnormal volume of imports was being financed to a large extent by bank credit, and (c) many business concerns were relying too much on their banks to provide working capital.

The measures contained in the statement included firstly, a request to trading banks: (a) to examine all accounts where trading limits exceeded £10,000, and where clients were relying too greatly on bank accommodation in proportion to their capital structure the necessary particulars were to be supplied to the Reserve Bank, which would take action, if required, after consideration of all relevant factors, including the practicability of obtaining from non-banking sources finance on reasonable terms without undesirable economic or financial consequences; (b) applications for increased limits in the over £10,000 category were to be referred to the Reserve Bank where the trading banks considered the client was relying too greatly on bank accommodation; temporary increases where the excess was justified and which would be repaid within six months were left to the discretion of the trading banks. Secondly, except with the approval of the Reserve Bank in each case, increases would not be granted in any importer's current limit to enable the importer to buy overseas funds (discretion to grant temporary assistance limited to a maximum period of three months to cope with existing abnormal conditions was given to the trading banks). The third measure was the examination of all existing advances to hire-purchase concerns (also advances to concerns which undertook hire purchase as a part of their main business) with a view to securing, wherever practicable, reductions in such advances or improvements to existing programmes of reduction. Finally, while limits exceeding £10,000 were under specific review, all trading-bank limits below this figure were to be watched closely, taking into consideration the relationship between overdraft and proprietors' funds; increases were to be avoided wherever possible and adherence was to be made to programmes of reduction.

The Reserve Bank has maintained the selective control of bank advances from 1953-54 to 1956-57 without change in the rules relating thereto, except that the period for which advances could be granted for housing purposes was extended to five years from May 1953, provided the advance did not exceed £3,500.

Quantitative.— Although the advance control policy as outlined above was continued, it was supplemented in 1952 by the quantitative control of advances provided for in section 45 of the Reserve Bank of New Zealand Act. This section authorized the Bank with the consent of the Minister of Finance to vary the statutory reserve ratios of the trading banks, but not so as to be less than 7 per cent of their demand liabilities and 3 per cent of their time liabilities. Since August 1952 these ratios have been varied on a number of occasions as listed below. The Reserve Bank stated, in announcing the May 1953 increase, that the actual balances held by the trading banks at the Reserve Bank had been considerably in excess of the statutory minimum, and that this excess was a potential basis for an expansion of bank credit which would be inflationary in its effect and add to the difficulty of maintaining the external balance of payments.

On 31 May 1956 the Reserve Bank announced important changes in the method of calculating the minimum balances which the trading banks must hold at the Reserve Bank. The main changes made are: (a) the banks' holdings of notes will be counted as part of the minimum cash required to be held by them, and (b) the extent to which the banks will need to borrow from the Reserve Bank will be related to the amount by which their actual advances and discounts exceed what is regarded by the Reserve Bank as an appropriate level.

In this way pressure on the banks will be related more directly to the level of their advances, with an assurance that to the extent that they eliminate those excess advances the pressure of the reserve ratios on their cash will be eased.

The figure of excess advances is revised from time to time in the light of changes in actual advances, economic conditions, seasonal requirements, and factors outside the control of the banks themselves.

Period OperativePercentage of New Zealand Liabilities Required to be Maintained by Trading Banks as Minimum Deposits With Reserve Bank
DemandTime

* Informal agreement to raise ratios.

† From 1 June 1956 figures are not comparable with earlier percentages because the banks' holdings of Reserve Bank notes (normally about £10 million) are included in their minimum cash, which will be the total of balances at the Reserve Bank and notes held.

1934 to 31 July 195273
1 August 1952-7 December 1952105
8 December 1952-10 May 1953*157 1/2
11 May 1953-30 May 19542010
31 May 1954-31 August 19542512 1/2
1 September 1954-30 November 19542010
1 December 1954-27 February 19552512 1/2
28 February 1955-1 June 1955157 1/2
2 June 1955-30 June 195516 1/27 1/2
1 July 1955-31 July 1955207 1/2
1 August 1955-6 October 195521 1/27 1/2
7 October 1955-23 January 1956247 1/2
24 January 1956-28 February 1956267 1/2
29 February 1956-22 April 195673
23 April 1956-2 May 1956203
3 May 1956-31 May 1956243
1 June 1956-12 July 19563210
13 July 1956-26 July 19563010
27 July 1956-13 September 19562710
14 September 1956-30 September 19563010
1 October 1956-8 November 19563412 1/2
9 November 1956-20 December 19562910
21 December 1956-28 February 19573110
1 March 1957-1 1 April 19571510
12 April 1957-2 May 195722 1/210
3 May 195726 1/210

Capital Issues Control.—During the war period fairly intensive control was maintained over the issue of new capital, but in the post-war period such control was progressively cased. However, the heavy demand for capital moneys and the tendency for interest yields to increase in late 1951 and early 1952 caused the Government to decide to apply the existing powers of control over capital issues given by the Finance Emergency Regulations (No. 2) 1940 (see later) more fully. A Capital Issues Committee was therefore set up in 1952 to deal with applications for capital issues, including shares, debentures, mortgages, and deposits, and affecting mainly companies—not private individuals or partnerships. Consent is required if the total raised exceeds £10,000 in any period of twelve months. Approval is more likely to be given to cases (a) where no recourse to new finance is involved—e.g., bonus issues, amalgamations, etc.; (b) where a substantial increase of exports or saving of imports may be expected to result, whether directly or indirectly; and (c) where substantial shortages of essential goods will be met.

The following table shows the total approvals made during the period 1952-56.

YearShare IssuesMortgages and DebenturesTotal*
New CompaniesExisting Companies
No.ValueNo.ValueNo.ValueNo.Value

* IN some cases a company is granted a share issue and mortgage, resulting in the individual items not adding to the total.

† Includes approvals for issues by Tasman Pulp and Paper Co. Ltd. to overseas concerns—viz., £4.5 million (shares £2 million and debentures £2.5 million), and to the public £4.35 million.

  £(000) £(000) £(000) £(000)
19521735,47321510,6632598,59864724,734
19531665,2561818,6032028,21446522,073
19542428,36126916,62627811,41169836,398
19552076,52126524,9303019,05667940,507
19562566,79920020,2223509,45867936,479

Debits and Clearings.—The following table shows weekly averages of bank debits and clearings for each of the years 1946 to 1956.

£(000)

YearDebits Other Than GovernmentGovernment DebitsClearingsYearDebits Other Than GovernmentGovernment DebitsClearings
194631,9124,76419,388195270,5549,95140,503
194740,5474,92723,646195373,99610,06343,062
194843,0625,86225,254195484,62510,79249,066
194945,1616,32926,228195590,31710,80952,129
195056,2427,12033,829195691,97611,17251,067
195170,2348,49642,755 

Debits represent the total amount debited to customers' accounts at all branches, and clearings show the total outward exchanges delivered at all branches. These figures, which have been compiled from the weekly returns furnished by the trading banks to the Government Statistician, give a reasonable indication of changes in the volume of business. The upward movement evident in 1939 has generally continued since, the 1950, 1951, and 1954 increases being sharp ones. Government debits with trading banks fell to comparatively small proportions as a consequence of the opening of the Reserve Bank, but the upward movement in evidence since 1936 has been more marked over the last six years.

Averages of debits (other than Government) and of clearings for the four or five weeks ending on the last Wednesday of each of the quarter months from March 1952 onwards are now given.

£

Month19521953195419551956
Debits, Other Than Government
March93,155,86990,859,613102,145,501115,182,741119,408,413
June64,175,97168,695,90788,102,90990,599,45186,510,360
September58,800,42668,097,11881,983,60080,180,59982,134,349
December76,614,07587,072,00098,148,64094,919,221101,499,686
Clearings
March54,094,68359,757,73664,849,35372,964,91272,309,017
June37,210,96041,257,05850,782,00752,465,78947,659,993
September33,944,30737,203,95945,401,18044,813,47144,882,947
December43,926,44649,418,95956,343,71853,149,68954,898,851

Unexercised Overdraft Authorities.—Particulars of aggregate unexercised overdraft authorities of trading banks are available from April 1936. Following are the averages for calendar years and the amount at the end of June for each of the years 1946-56.

£

YearAverage for Calendar YearAt End of JuneYearAverage for Calendar YearAt End of June
194645,040,51446,490,947195269,887,61968,825,103
194746,669,29648,261,554195393,464,10593,094,517
194850,649,89150,215,8371954110,298,049111,652,709
194957,686,12058,730,3381955100,819,000100,087,310
195064,177,79163,116,374195694,567,46095,035,206
195172,229,73976,425,329 

NOTES IN CIRCULATION.—As indicated elsewhere, the Reserve Bank assumed the note- issuing function on 1 August 1934. As from 10 January 1935 the notes of the trading banks ceased to be legal tender, while on 1 August 1936 the liability for the remaining outstanding trading-bank notes was taken over by the Reserve Bank, thus completing the process of the transfer of the note issue to the Reserve Bank. The following table shows the weekly average note circulation for the calendar years 1946-56, and the position as at the last. Wednesday in June for the years 1952-56.

£

YearTotal Note IssueNotes Held by Trading BanksNet Note Circulation
Average for Calendar Year
194645,169,0506,970,70738,198,343
194747,682,4387,555,35640,127,082
194848,930,0978,133,75340,796,344
194951,311,5318,776,50142,535,030
195055,126,2909,898,34345,227,947
195160,361,14511,390,95048,970,195
195262,251,85811,273,45050,978,408
195364,034,74610,647,60153,387,145
195469,213,66211,540,81457,672,848
195570,088,23110,630,72159,457.510
195670,904,37210,917,06859,987,304
At End of June
195261,225,01111,083,47950,141,532
195362,605,0679,858,28152,746,786
195467,478,94510,342,85957,136.086
195568,581,3819,577,31259,004,069
195669,430,7859,935,75059,495,035

The following diagram of notes in circulation based on weekly averages illustrates the expansion in the note issue since the year 1910.

The year 1935 witnessed the commencement of an almost continuous upward movement in the note circulation, owing to more favourable economic conditions in association with such factors as the restoration of wage and salary cuts, higher wage rates, greater activity on public works and housing, increased pensions, etc. Following the outbreak of war, the increase in the note circulation quickened, the expansion in 1942 and 1943 being particularly marked. The upward movement has since continued, but at a considerably lesser rate.

The following reasons have been given by the Reserve Bank for the increase in the net note circulation noted over recent years. The basic fact is the increase in incomes and in the total volume of money (coin, notes, bank demand deposits), the proportion of notes to the total volume of money remaining at a level of approximately 20 per cent. Other reasons include a rise in the number of cash transactions and in price levels.

An analysis of the net bank-note circulation, as at the last Monday in June 1946 and the last Wednesday in the same month for later years, is compiled by the Reserve Bank of New Zealand, and the figures for the years 1946-56 are contained in the following table.

£(000)

Last Balance Day in JuneReserve Bank Note Issue (Excluding Trading Bank Holdings)Total Reserve Bank Issue in CirculationTrading Banks' Notes OutstandingTotal Net Note Circulation
10s.£1£5£10£50
19461,1149,44321,6523,5101,75137,47036637,836
19471,1449,37322,5824,3452,03539,47936339,842
19481,1769,23623,0554,7491,96340,17936140,540
19491,2089,35324,1025,1372,10641,90635842,264
19501,2859,32825,8685,7732,40644,66035745,017
19511,2819,41227,8336,8652,69748,08835648,443
19521,3349,28428,7877,5712,81049,78735550,142
19531,3789,31230,1858,4593,05952,39435352,747
19541,4939,48732,7799,7663,25956,78435257,136
19551,5379,54634,00410,2493,31658,65335159,004
19561,5869,42334,32510,6593,15259,14535059,495

OVERSEAS ASSETS OF BANKS.—Under section 46 of the Reserve Bank of New Zealand Act 1933 the trading banks are required to supply returns to the Reserve Bank at monthly intervals, showing, inter alia, overseas assets held and liabilities incurred on account of New Zealand business. From these statements, published in the New Zealand Gazette and the weekly gazetted statements of assets and liabilities of the Reserve Bank, the following table has been compiled. The figures for net overseas assets include, in addition to sterling exchange, the Reserve Bank holdings of foreign exchange and overseas investments, less its liabilities in other currencies.

£N.Z. (000)

YearTrading Banks' Overseas AssetsReserve Bank's Overseas AssetsGross Overseas AssetsOverseas Liabilities ofNet Overseas Assets
In LondonElsewhereSterling ExchangeOther Overseas AssetsTrading BanksReserve Bank

* On and after 20 August 1948 overseas assets and liabilities were converted into New Zealand currency at rate £(stg.)100 = £(N.Z.)100.

† Included in the item "Other Overseas Assets" after 1951 are sterling investments. These amounted to £22,891,000 at the end of June 1955, and averaged £22,954,000 for the calendar year 1955. Prior to 15 August 1951 the corresponding amounts were shown under the " Sterling Exchange " heading.

Monthly Average for Calendar Year
194611,6392,33783,2654,966102,2071,43552100,720
194713,9734,51685,0564,532108,0765,194248102,634
1948*17,6063,09964,1026,57891,3867,2426584,079
194918,0214,00048,7417,39778,1597.4954870,617
195020,5254,30451,2066,61382,6487,4684175,139
195132,0645,26661,53715,259114,12610.05450104,022
195219,9046,66723,74431,95482,2689,5865072,633
195321,7113,87259,41423,948108,9465,33943103,564
195421,3384,64674,11324,236124,3326,24186118,005
195520,2105,43746,03623,61395,2966,9524288,302
195620,1435,87039,04327,60292,6576,7027085,886
At End of June
194612,0411,57685,5205,584104,7211,46653103,203
194712,9225,03293,9334,316116,2035,5301,289109,384
194819,5932,76279,5224,340106,2176,18615100,017
1949*17,3124,66158,9637,44188,3778,3494179,987
195023,0144,42658,6529,79395,8858,8353387,016
195141,7745,19278,1205,820130,9057,473116123,316
195223,9776,76220,74134,41185,89211,2139074,588
195328,1103,58065,89824,856122,4444,789100117,555
195423,6834,47893,51924,363146,0436,83139139,173
195525,4715,77554,34023,594109,1795,418120103,642
195619,5576,03451,71528,318105,6245,9154299,667

The overseas assets of the banking system rose during the war years to reach a peak of £102.6 million in 1947. Figures from 1948 to 1950 showed successive declines to an average of £75.1 million. The fall in these years was principally due to the financing of a greater volume of imports at higher prices, the repayment of debt domiciled overseas, and to the alteration in the exchange rate in 1948 mentioned elsewhere in this Section. The 1951 totals showed a marked improvement and reflect the high prices ruling for primary produce, notably wool, during the earlier part of the year, while 1952 figures reflect the heavy payments made to finance the excess of import payments over export receipts during that year. The effects of the exchange allocation scheme resulting in smaller payments on account of imports, together with the higher export receipts, were largely instrumental in increasing net overseas assets in 1953 and 1954. There was a marked fall in overseas assets in 1955, largely on account of the greater volume of imports in that year, the exchange allocation scheme having been terminated in December 1954.

The following diagram shows the movement in the net amount of overseas assets from 1938 onwards, the first portion showing the figures as at the end of December and the second portion as at the end of June, in each year quoted.

OVERSEAS RECEIPTS AND PAYMENTS.—Since the institution of exchange control in New Zealand the Reserve Bank has been able to make a comprehensive statement of the foreign exchange transactions of the banking system for the period during which the control has been operating. A full classification of overseas receipts and payments for the calendar years 1955 and 1956, showing details for the sterling area, dollar area, and other countries separately, in addition to the over-all figures, is given below; figures for 1950 to 1954 are given in preceding issues of the Year-Book.

£(N.Z.)000

Item19551956
Sterling AreaDollar AreaOther CountriesTotalSterling AreaDollar AreaOther CountriesTotal

* Includes £(N.Z.)201,000 net contra export prepayments.

* Includes £(N.Z.)4,736,000 net contra export prepayments.

Current items—Receipts
  Exports—
  Butter43,9424593,20647,60740,9654456,42547,834
  Cheese16,43169024317,36320,6881911420,892
  Meat52,9581,5044,46958,93162,5121,1536,86870,533
  Wool46,71711,01635,93293,66544,10315,07739,32898,509
  Other21,9438,2185,26835,42926,73910,1847,27044,193
    Totals, export receipts181,99021,88749,117252,995195,00727,04959,904281,961
  Transport2,218228642,5103,512292633,866
  Insurance1,2281781,2521,2346861,308
  Travel (excluding fares)1,980218112,2082,529303282,861
  International investment income—
  Interest and dividends4,118251274,2704,684231294,835
  Other investment income1,29224991,5494972152570
  New Zealand Government receipts, and expenditure by other Governments in New Zealand1,0953071391,5419082712471,426
  Miscellaneous—
  Commissions, royalties, and rebates1,280179391,4961,255198411,494
  Expenses of business firms41720344044114729618
  Personal receipts, legacies, and immigrants' transfers6,2255441486,9167,0475011877,735
  Other current transactions4728223578397559461
    Totals, current202,31323,75749,688275,757217,51228,92860,695307,134
  Capital transfers—
  Private9,086*475669,628*5,9336161436,692
  Government8,549  8,5495,6194,662110,282
    Totals, capital17,6344756618,17611,5545,27814416,975
  Cook Islands exports29362186685230151
  Unidentified7116-2865415373
Grand totals, receipts220,04724,28549,773294,105229,18834,27360,872324,333
Current items—Payments
  Imports—
  Licensed28,47515,8573,11447,44620,4409,1142,22631,779
  Decontrolled167,99714,47811,974194,449167,20316,05511,479194,737
  Government17,7692,8635020,68225,6061,4583327,098
  Other4,0511752414,4672,866672323,164
    Totals, import payments218,29233,37315,379267,044216,11526,69313,970256,778
  Transport4,996369615,4275,7414591376,337
Insurance—
  Premiums1528316336783378
  Claims5062595323 76
  Other transfers1,30725431,3761,19227"21,222
  Travel (excluding fares)6,0003211186,4406,3483311296,809
International investment income—
  Interest and dividends2,0591,551173,6262,4231,738174,179
  Other investment income1,977623992,6992,410460192,889
  Government interest3,180  3,1803,087112 3,198
  Local authority interest181  181337  337
  Government expenditure over        
  seas6,1653922196,7755,2525533486,154
Miscellaneous—
  Commissions, royalties, and rebates1,1094204291,9582,0125654943,071
  Expenses of business firms2,4006381293,1673,424969974,490
  Film hire and entertainment2856872099229263113937
  Religious and charitable630111137531,459102101,678
  Personal remittances, legacies, and emigrants' transfers4,1692742334,6754,0452652414,550
  Other current transactions7958028903874174321,080
    Totals, current255,30538,87716,965311,148256,96033,13715,803305,899
Capital transfers—
  Private2,49263412,5957,737*108237,869*
  Government6,793  6,7931,381209 1,590
  Local authority    6  6
    Totals, capital9,28563419,3899,124318249,466
  Cook Islands imports762551057018896
  Grand totals, payments264,66638,96517,011320,642266,15433,47315,834315,462
  Surplus of receipts over payments44,620-14,68032,763-26,537-36,96680045,0378,871

NOTE.—Minus sign (—) denotes a deficit.

From 1 November 1954 the annual allowance to New Zealand citizens visiting the Continent of Europe and certain other countries, but excluding Scandinavia, is £200 for adults and £100 for children under twelve years of age. Adult visitors to Scandinavia are allowed up to £250 per annum, and children under twelve years of age £175 per annum. Dollar allowance on non-business travel in North America is at the rate of £(N.Z.)5 per day with a maximum of £(N.Z.)100.

Exchange Allocation Scheme — In order to assist in measures for strengthening the sterling area reserves and the balance of payments generally, the Government of New Zealand in March 1952 made certain decisions designed to ensure an increased surplus in New Zealand's overall balance of payments with non-sterling countries from an estimated £5 million for 1952 to £25 million on an annual basis (June year 1952-53). Measures listed covered the cancellation of licences issued for imports from all " scheduled " countries (the United States of America, Canada, and Japan are the countries with which New Zealand is principally concerned); new licences were required for all subsequent imports from these countries; the importation of motor vehicles from all countries was brought under import-licensing control; there was no general imposition of import licensing in respect of sterling area countries; endeavours were made to expand primary production for export by providing alternative sources of supplies of agricultural fertilizer on a larger scale; and the Murupara pulp and paper project for the production of newsprint and pulp for export was pressed forward.

Except with the approval of the Reserve Bank, trading banks were advised not to sell to any importer during 1952 more than 80 per cent of the 1950 amount sold to him. This amount was the importer's basic allocation, and where foreign exchange in excess of this basic allocation was required application was to be made to the Reserve Bank.

This was followed in August 1952 by a decision to retain the existing exchange allocation scheme, with modifications, in 1953. With the high level of demand for exchange still continuing and the need to maintain reserves to provide a reasonable margin for contingencies in view of the 1953 deficit in overseas receipts over payments, the Reserve Bank was not prepared to draw further on reserves. Accordingly, except with the approval of the Reserve Bank, trading banks were advised not to sell to any importer during the whole of 1953 more than 40 per cent of the amount of exchange sold in 1950 to that importer for non-Government imports other than motor vehicles, and goods paid for under Third Party Certificates received from other licensed imports. This procedure provided, as formerly, for the basic allocations of exchange, and where importers required more than this quota they could make application to the Reserve Bank.

In July 1953 the Reserve Bank announced that, because of the high level of demand for overseas exchange to pay for imports, the exchange allocation scheme inaugurated in April 1952 would be continued in 1954. An important modification of the scheme was the announcement of a list of goods, payment for which would not require the authority of an exchange allocation. The trading banks were advised that, without the approval of the Reserve Bank and excepting payment for goods classed as " Released Items", they were not to sell to any importer in 1954 more than 50 per cent (increased in November 1953 to 75 per cent) of the exchange sold in 1950 to that importer for non-Government imports other than motor vehicles, goods paid for under Third Party Certificates received, and goods which in 1954 would be classed as "Released Items". This procedure provided, as formerly, for basic allocations of exchange, and where importers required more than this quota they could make application to the Reserve Bank.

The Prime Minister announced on 22 July 1954 that the exchange allocation system introduced in August 1952 was to be terminated as from 1 January 1955. Following this statement, the Reserve Bank made certain relaxations for the remainder of the 1954 year (e.g., additional allocations already granted could be used to pay for any items mentioned in the application instead of only those items specifically detailed in the approval, and could be used at any time during the rest of 1954), while allocations made up to termination date would not be linked to tariff items.

POST OFFICE SAVINGS BANK.—The establishment of the Post Office Savings Bank was authorized by the Post Office Savings Bank Act 1865, but actual business did not commence until 1 February 1867, when branches were established at Auckland, Wellington, Christchurch, Dunedin, and Hokitika. The present authority is contained in the Post and Telegraph Act 1928.

Deposits may be made in any multiple of 1s., and there is no limit to the amount which may be deposited. Interest is allowed on each complete £1, but no interest is payable on any amount in excess of £5,000. From 1 May 1956 interest rates per annum on deposits are—

AmountInterest Rate
Up to £1,0003 per cent
From £1,001 to £5,0002 1/2 per cent

There are now 980 branches of the Bank throughout the country. Of these, 174 are ledger offices providing demand withdrawal facilities, and about 95 per cent of the total withdrawals are made in this manner. The remaining 5 per cent are made by free savings-bank telegram or savings- bank money order, this system providing for country depositors who are unable to personally attend at their ledger office.

The Postmaster-General may pay deposits to a maximum of £200 to the legal representatives of a deceased depositor without requiring him to take out letters of administration or to prove the will. This provision, together with another whereby a depositor may nominate one or more persons to receive part or all of the amount at credit of an account after the depositor's death, enables the next-of-kin to obtain possession of perhaps much-needed funds without delay or cost.

During the year ended 31 March 1956 the Bank's cash turnover passed the £200 million mark. Deposits for the year were £118,311,757, and withdrawals £118,656,799, which represents an increase in the value of deposits of £430,856, and in the value of withdrawals of £5,814,313, over the previous year. The number of deposits made was 4,650,070 and the number of withdrawals 2,753,553. The figures for the previous year were 4,545,273 and 2,659,939 respectively. The total number of accounts open increased by 30,873 to reach 1,585,422, and the total amount at credit of depositors' accounts at £220,180,401 was £4,509,255 greater than the previous year. The increase represents interest credited to depositors for the year of £4,854,297 reduced by the excess of withdrawals over deposits of £345,042. The average amount at credit of each account was £139.

The following table covering the activities of the Post Office Savings Bank since 1946 includes family benefit deposits, but does not include either school savings bank accounts or national savings investment accounts, which are referred to later.

Year Ended 31 MarchNumber of Depositors at End of YearTotal Amount of Deposits During YearTotal Amount of Withdrawals During YearExcess of Deposits Over WithdrawalsInterest CreditedTotal Amount to Credit of Depositors at End of Year

* Excludes balances to credit of war gratuity savings-bank accounts in the years quoted of: 1947, £13,616,000; 1948, £12,439,000; 1949, £11,448,000.

† Refer to note below.

‡ Excess of withdrawals over deposits.

  £££££
19461,203,18167,861,04255,626,41912,234,6232,787,413128,514,326
19471,239,94872,380,54362,747,0939,633,4503,094,491141,242,267*
19481,277,26572,553,41468,660,4583,892,9563,307,081148,442,304*
19491,311,29270,690,64067,722,7242,967,9163,438,790154,849,010*
1950 11,447,7543,792,8467,654,908 170,982,452
 1,372,67277,963,43073,306,1814,657,2493,821,285 
19511,407,24186,395,33185,190,0071,205,3243,915,006176,102,782
19521,450,30998,205,64393,748,8184,456,8254,079,606184,639,213
19531,485,85299,125,77496,699,5592,426,2154,208,308191, 273,736
19541,520,988109,340,23999,134,78310,205,4564,442,620205,921,812
19551,554,549117,880,901112,842,4865,038,4154,710,920215,671,147
19561,585,422118,311,757118,656,799345,0424,854,297220,180,401

NOTE.—Under the War Service Gratuity Regulations 1945 war gratuity savings bank accounts which matured on 31 March 1949 were deemed to be Post Office Savings Bank accounts on that date, and the total balance of the war gratuity accounts was amalgamated with the ordinary savings bank figures as at 31 March 1949. The amount so transferred was £11,447,754, of which £7,654,908, at the option of the holders, was left in the savings bank and £3,792,846 withdrawn. A total of £1,843,071 of the amount withdrawn was deposited in national savings investment accounts. These transactions are shown separately in the above table in italicized form.

The securities standing in the name of the Postmaster-General on account of the Post Office Savings Bank Fund on 31 March 1956 represented a nominal value of £221,379,906. A summary of the investments is as follows:

 £
New Zealand Government securities218,938,210
Local authority securities181,201
Securities held in London2,260,495
    Total£221,379,906

Post Office Savings Bank Accounts Classified by Amount Groups.—The following is a classification of the balances in Post Office Savings Bank Accounts at 31 March 1940, 1955, and 1956, shown by amount groups and percentage of accounts within each group.

Amount GroupAt 31 March 1940Percentage of TotalAt 31 March 1955Percentage of TotalAt 31 March 1956Percentage of Total

* Apia and Rarotonga accounts not included.

£ 
Under 1  354,53523.06342,88621.88
1 and under 10769,31280.09368,07023.95384,66424.54
10 and under 50  289,71418.85301,44319.24
50 and under 1060.8226.33123,7868.05126,3118.06
100 and under 20050,2865.24125.9558.19131,6838.40
200 and under 30025,9482.7070,7344.6071,2074.54
300 and under 40015,5521.6245,7772.9847,1743.01
400 and under 50010,1851.0636,9522.4036,7602.34
500 and under 6008,1630.8527,3471.7829,2141.86
600 and under 7004,4950.4716,4861.0716,5931.06
700 and under 8003,2140 3312,3670.8012,9320.83
800 and under 9002,3370.2410,0590.6610,0340.64
900 and under 1,0001,7880.198,2990.548,5900.55
1,000 and under 1,5006,4310.6723,8971.5624,5281.57
1,500 and under 2,000  11,0220.7210,7630.69
2,000 and under 3.0001,9730 219,2170.609,2290.59
3,000 and under 4.00046 1,8280.121,9120.12
4,000 and under 5.0007 6740.047320.05
5,000 and over6 4870.034890.03
  Total number of accounts960,565100 001,537,206* 1,567,144*100.00

It will be noted that the actual number of accounts with balances of under £50 have increased from 769,312 in March 1940 to 1,028,993 in March 1956, but expressed as a percentage of the total accounts these groups showed a decline from 801 percent in 1940 to 65.6 per cent in 1956. For the £50 and under £200 groups there were both absolute and relative increases over the period—i.e., from 111,108, or 11.6 per cent, to 257,994, or 16.4 per cent. In the next groups £200 and under £500, the increases were more marked still, the numbers being almost trebled, and the percentage nearly twice as high, the figures being 51,685 or 5.4 per cent in the earlier year, and 155,141 or 9.8 per cent for the later year.

The groups comprising balances within the range £501 to under £2,000 likewise exhibited a high percentage increase, from 2.7 to 7.2 per cent of the total, the numbers also showing a substantial increase from 26,428 to 112,654 during the period. Accounts consisting of £2,000 and over increased from 2,032 to 12,362, although prior to September 1952 interest was not paid on sums between £2,000 and £5,000.

Letters of Credit.—The letter of credit avoids the necessity of carrying large amounts in cash and is therefore popular with people travelling, particularly at holiday times. The depositor completes an application for a withdrawal from his account and instead of cash receives a letter of credit, the maximum amount being £50. The letter of credit may be drawn against at any of the 980 branches of the Post Office Savings Bank. The fee payable is 7d. for the first £10 and 3d. for each additional £5 or part thereof.

During the year ended 31 March 1956, 6,446 letters of credit were issued, the value of these being £210,226.

SCHOOL SAVINGS BANK.—The school savings bank scheme was introduced in 1934 with the object of encouraging thrift amongst young people. The aim of the scheme is to promote the habit of regular banking every week, so that upon commencing work the depositor will transfer his account to the Post Office Savings Bank and continue his weekly bankings out of his wages or salary.

Each depositor has a pass book, and the lodgment of deposits is made to teachers at the school, the cash and deposits slips being handed in later at the Post Office. Separate accounts for each depositor are held at the savings bank ledger office nearest to the school, and depositors may make withdrawals on demand. Interest is payable at ordinary Post Office Savings Bank rates.

Over the twenty-three years of operation depositors have banked over £2,351,975 and received £1.35,043 in interest. During the calendar year 1956 there were 1,482,049 deposits totalling £284,555. Since the inception of the scheme more than 118,000 children have transferred their School Savings Bank Accounts to the Post Office Savings Bank to form the nucleus of adult savings accounts.

A table showing the transactions in school savings bank accounts during the last eleven years is appended.

Year Ended 31 DecemberNumber of Schools Operating at End of YearTotal Number of Deposit Transactions During YearTotal Amount of Deposits During YearTotal Number of Withdrawal Transactions During YearTotal Amount of Withdrawals During Year*Excess of Deposits Over WithdrawalsInterest CreditedTotal Amount to Credit of Depositors at End of Year

* Includes amounts transferred to Post Office Savings Bank.

 £ ££££
19461,133465,15079,20810,60156,33022,8784,769226,920
19471,170490,14182,05711,07265,50616,5515,396248,867
19481,193485,80684,32511,87671,78512,5405,804267,211
19491,402672,489122,17810,62094,10928,0696,682301,962
19501,300793,494142,31420,765100,12542,1897,594351,745
19511,395881,768168,24718,341107,99660,2518,862420,858
19521,5101,026,433187,22418,850123,67163,55310,529494,940
19531,6251,210,671218,55121,906135,37583,17612,593590,709
3,9541,6901,356,836254,84026,220180,54674,29414,749679,752
19551,7491,423,153264,87427,448201,89062,98416,490759,226
19561,8321,482,049284,55530,265212,94571,61020,763851,600

On 31 December 1956 there were 170,484 School Savings Bank accounts open.

TRUSTEE SAVINGS BANKS.—The legislation dealing with trustee savings banks is contained in the Trustee Savings Bank Act 1948, a consolidation of previous enactments. There are five such institutions—viz., Auckland, established in 1847; New Plymouth, 1850; Dunedin, 1864; Invercargill, 1864; and Hokitika, 1866. At 31 March 1956 these five banks had 389,000 customers, and their activities have become an important factor in New Zealand's economic structure.

The Act of 1948 prohibited the formation of new trustee savings banks and also laid down that no branch office or agency is to be established more than twenty-five miles from the head office. Not less than 40 (now 50) per cent of investments must be held in the form of Government stock. Repayment of deposits is guaranteed by the State.

The total amount to the credit of depositors at 31 March 1956 was £44,785,024.

Year Ended 31 MarchNumber of Depositors at End of YearTotal Amount of Deposits During YearTotal Amount of Withdrawals During YearExcess of Deposits Over WithdrawalsInterest CreditedTotal Amount to Credit of Depositors at End of Year

* Excess of withdrawals over deposits.

 £££££
1946329,34815,954,29612,054,0443,900,252580,10627,254,068
1947335,82117,306,05114,698,4462,607,605678,05130,539,724
1948343,14916,136,82215,622,395514,427723,79531,777,946
1949350,35315,994,13015,748,223245,907746,82432,770,677
1950354,87917,615,74616,234,2801,381,466790,83434,942,977
1951359,78020,720,02119,609,8421,110,179839,48536,892,641
1952365,70122,937,10622,372,933564,173877,23538,334,049
1953371,40422,645,06323,011,838-366,775*886,39138,853,665
1954376,42724,320,57422,958,1391,362,435915,42141,131,521
1955382,35726,924,40326,187,607736,796957,82442,826,141
1956389,25729,207,61728,264,611943,0061,015,87744,785,024

NOTE.—This statement does not include national savings investment accounts.

The following table shows the results of the transactions, exclusive of national savings investment accounts, of each of the trustee savings banks during the twelve months ended 31 March 1956.

BankNumber of Depositors at End of YearTotal Amount of Deposits During YearTotal Amount of Withdrawals During YearExcess of Deposits Over WithdrawalsInterest CreditedTotal Amount to Credit of Depositors at End of Year

* Excess of withdrawals over deposits.

 £££££
Auckland259,08716,348,72615,863,149485,577635,25227,641,934
New Plymouth29,4872,211,6622,017,662194,00087,0323,786,622
Hokitika3,040162,197164,717-2,520*11,161468,083
Dunedin58,4333,520,2863,402,764117,522150,6246,407,734
Invercargill39,2106,964,7476,816,320148,427131,8096,480,651
Totals389,25729,207,61728,264,611943,0061,015,87744,785,024

Following is a summary of trustee savings banks' assets at 31 March 1956. The total assets include an amount of £7,435,652 securing National Savings deposits, of which £7,405,168 is invested in New Zealand Government securities and £30,484 held in cash.

£

BankMortgagesNew Zealand Government SecuritiesLocal Authority DebenturesCash in Hand and at BanksTotal (Including Other Assets)
Auckland9,441,74218,672,4563,820,7441,679,75434,102,765
New Plymouth1, 638,9642,958,985156,825299,8605,123,952
Hokitika236,765246,09812,93831,880532,704
Dunedin2,480,1434,800,270500,824475,8918,394,487
Invercargill1,447,9233,562,4751,318,123669,1647,120,035
Totals15,245,53730,240,2845,809,4543,156,54955,273,943

NATIONAL SAVINGS.—The National Savings Act 1940 made provision for the issue of savings bonds and the opening of special savings accounts with the Post Office and the Auckland, New Plymouth, Dunedin, and Invercargill trustee savings banks. These investments bear interest at the rate of 3 1/2 per cent per annum (increased from 3 per cent after I July 1956). The sale of national savings bonds was discontinued as from 1 May 1956.

The following table gives particulars of deposits, withdrawals, etc., in regard to national savings accounts for the last eleven years and the cumulative totals from the inception of the scheme.

£

Year Ended 31 MarchDepositsWithdrawalsInterest to 30 June, Previous YearAmount to Credit of Depositors
19476,175,3682,306,164773,26031,559,845
19487,285,4233,680,450905,43936,070,257
19497,032,1193,943,0791,037,92140,197,218
195010,576,7074,281,5881,178,81047,671,147
19519,468,6025,311,3711,385,69953,214,077
195210,973,7606,511,4001,541,63259,218,069
195310,419,3438,426,5491,719,57562,930,438
195410,328,8379,629,5951,839,43765,469,117
195511,128,28910,281,5121,911,67268,227,566
195610,239,51711,013,7091,997,75369,451,126
19578,836,05713,005,4152,040,23067,321,998
Totals. 1940-57130,215,85980,375,00917,481,149 

The next table gives particulars of national savings bonds sold and redeemed during the same period.

£

Year Ended 31 MarchValue of Bonds Sold*Value of Bonds RedeemedYear Ended 31 MarchValue of Bonds Sold*Value of Bonds Redeemed

* Sale discontinued from 1 May 1956.

1947457,0412,089,3961953219,005711,785
1948492,6972,936,2651954359,668555,376
1949434,6873,169,8701955339,392549,901
1950457,7672,420,8001956201,218595,304
1951499,2221,643,899195741,724646,135
1952536,582618,900Totals, 1940-5715,837,99916,458,227

COMPANY, ETC., DEPOSITS.—Statistics of deposits with building and investment societies and trading companies were compiled from returns furnished to the Treasury up to 31 March 1947. The requirement to furnish returns was abolished by the Finance Act 1951.

SUMMARY OF BANK DEPOSITS.—In the preceding paragraphs statistics of deposits with various classes of banking institutions are shown. It is of interest to show the position in summary form in respect of all classes of deposits (other than Government deposits and trading bank deposits with the Reserve Bank).

 As at End or March 1956 £

* Includes £6,185,000 wool retention moneys and approximately £3,000,000 of ordinary deposits from Trustee Savings Banks.

Deposits with Reserve Bank (excluding Government and trading banks' deposits)1,133,087
Deposits with trading banks (excluding Government)269,651,565*
Deposits with Post Office Savings Bank220,180,401
Deposits with school savings bank accounts735,105
Deposits with trustee savings banks44,785,024
Deposits in national savings accounts69,451,125
    Total£605,936,307
    Per head of population£279 3s. 0d.

The above deposits are bank deposits only. It should be noted also that other classes of deposits exist—e.g., the Common Fund of the Public Trust Office, deposits with building and investment societies, and with trading companies.

VOLUME OF MONEY IN CIRCULATION.—The following information, which has been published by the Reserve Bank of New Zealand, sets out in detail the changes that have occurred in the amount of money in circulation in the form of coin, notes, and demand deposits of the Reserve Bank and of the trading banks. The first table shows the volume of such money as at the last balance day in January of each of the years 1949-57, the figures quoted being in £(N.Z.) millions.

£(m.)

194919501951195219531954195519561957

* Government and other demand deposits Reserve at Bank, excluding trading banks' balances at Reserve Bank.

† Trading banks' total demand liabilities in New Zealand.

Coin (estimated)3.13.33.53.63.74.04.24.34.5
Notes held by public40.944.547.450.352.856.458.059.560.6
Demand deposits at-
  Reserve Bank*9.69.218.312.68.911.712.412.012.8
  Trading banks147.4163.1194.7195.1195.2229.2242.3242.3252.0
    Totals Change during year201.0220.0263.9261.6260.7301.3316.9318.1329.8
Change during year+ 8.9+ 19.0+43.8-2.3-0.9+40.7+15.6+1.2+11.7

The cumulative effect of the changes in the volume of money during the last eighteen years is contained in the following summary.

£(m.)

1939-47 (Eight Years)1947-57 (Ten Years)

* Government and other demand deposits at Reserve Bank, excluding trading banks' balances at Reserve Bank.

† Trading banks' total demand liabilities in New Zealand.

Coin (estimated)+1.7+1.4
Notes held by public+28.7+20.9
Demand deposits at—Reserve Bank*+12.9-3.0
Trading Banks +89.9+125.9
Totals+133.2+145.2

The next table shows the causes of the changes in the volume of money that occurred during the period.

£(m.)

Cumulative Movement, 1939-47 (Eight Years)Cumulative Movement, 1947-57 (Ten Years)Movement During Each of Last Three Years
1954-551955-561956-57

* As shown by changes in the Reserve Bank's sterling exchange plus overseas investments and trading banks' assets overseas in respect of New Zealand business less overseas liabilities.

† Minus sign indicates shift from demand to time liabilities.

Overseas transactions*+105.1-35.9-20.7-19.4+ 10.2
Bank credit—
  Reserve Bank—
  Advances to State for general purposes+12.2+49.8-23.9+11.7+4.8
  Marketing and other advances-5.3+30.1+ 19.3-3.6+4.2
  Trading banks—
  Advances and discounts+10.5+89.1+ 31.7+3.1-14.9
  Investments in New Zealand+17.5-3.6+5.6-2.1-0.2
Shift from time to demand liabilities of trading banks-5.6+1.6-3.0+7.3-3.5
Shift from wool retention accounts  +5.8+6.3+7.8
Other items-1.2+14.1+0.8-2.1+3.3
Change during period+133.2+145.2+15.6+1.2+11.7

OVERDRAFT AND DISCOUNT RATES.—The trading banks' minimum overdraft rates and rates of discount, which had for many years been at 6 1/2 or 7 per cent, were reduced to 6 per cent as from 1 September 1932. This was followed by further reductions to 5 per cent from 1 May 1933, to per cent from 30 November 1934, and to 4 per cent from 1 August 1941.

The Minister of Finance announced on 8 February 1956 that more flexibility was to be introduced into the control on interest charged by trading banks for loans on overdraft.

The former system, operative since 1941, was the adherence by the trading banks to a minimum rate of 4 per cent and a maximum rate of 5 per cent. Recently it had also been arranged that the average rate over all overdrafts would not exceed 43/4 per cent. The new system achieves flexibility by the abolition of the minimum and maximum rates but retains the feature of an average rate, which now must not exceed 5 per cent.

The object is to discourage and deter excessive use of bank overdrafts for relatively non-essential purposes and to provide an additional incentive to borrowers with such overdrafts to reduce these as quickly as they can reasonably do so.

The Reserve Bank's minimum discount or rediscount rate for New Zealand bills was originally 4 per cent, but was reduced to 3 1/2 per cent from 29 July 1935, to 2 1/2 per cent from 2 March 1936, and to 2 per cent from 29 June 1936. The rate was restored to the original 4 per cent on 19 November 1938, but was reduced to 3 per cent from 6 September 1939, to 2 per cent from 27 May 1940, and to 1/2 per cent from 26 July 1941. The rate was increased, however, to 3 1/2 per cent from 13 April 1954, to 4 per cent on 26 November 1954, to 5 per cent from 1 July 1955, to 6 per cent from 5 September 1955, and to 7 per cent from 19 October 1955.

The increase in the discount rate supports the reserve ratio system as applied to the trading banks, and is in keeping with the Reserve Bank's general policy of credit restraint under present conditions.

In effect, the discount rate is the minimum rate at which trading banks may borrow from the Reserve Bank if they need to do so in order to maintain the statutory minimum balances which they are required to deposit with the Reserve Bank.

The statutory minimum balances are calculated as a certain percentage of the trading banks' demand liabilities, plus a percentage of their time liabilities. These percentages are called the reserve ratios. For further details see page 863.

Discount rate policy is as follows: the Reserve Bank is required by law to publish a rate at which it will discount approved bills of exchange. It does this in its capacity as a "lender of last resort," so that potential borrowers will know the minimum rate which will be charged for Reserve Bank credit. The bank has three kinds of lending operations to which the "bank rate" applies:

  1. It may discount, rediscount, buy and sell bills of exchange arising out of commercial transactions, bearing two good signatures and maturing within specified short periods.

  2. It may grant advances for fixed periods not exceeding three months against specified collateral security.

  3. It may discount, rediscount, buy and sell Treasury bills.

No restrictions are imposed on the Bank as to who may borrow from it, but in practice no transactions of the above types have taken place with the public, for the following reasons:

  1. Bills of exchange are not used to any great extent to finance internal transactions, nor are Treasury bills held by the public.

  2. It is not the Reserve Bank's function to compete with the trading banks for ordinary banking business. The trading banks would normally discount bills of exchange offered them which may be eligible for rediscount with the Reserve Bank.

So far the Reserve Bank's discount rate has applied only to transactions with the trading banks. The discount rate therefore is a supplement to the reserve ratio system as an aid to regulating bank credit. For when a trading bank is short of cash—that is, when its balance at the Reserve Bank is approaching or below the statutory minimum—it may borrow from another bank either in New Zealand or London, or it may sell sterling to the Reserve Bank. The most likely and normal procedure, however, is to borrow from the Reserve Bank. For this money it pays a rate of interest related to the bank's discount rate (3 per cent or a minimum based on bank rate, whichever is the higher). If the trading banks have a safe margin of free cash there would be no need for them to borrow from the Reserve Bank and the discount rate would then be a formality (though it has some psychological impact); but when this margin is small the discount rate acquires a much greater significance.

Advances to the State—to marketing organizations and for general purposes (Treasury hills or overdrafts)—have been at 1 per cent from 22 February 1946.

DEPOSIT AND INTEREST RATES: Trading Banks.—The following is a schedule (since June 1912) of the rates paid by the Associated Banks in New Zealand for moneys lodged on fixed deposit.

Per Cent

Date Operative FromThree Months and Under Six MonthsSix Months and Under Twelve MonthsTwelve Months and Under Twenty-four MonthsTwenty-four Months and Upwards
1 June 1912 23 1/24
20 January 192133 1/244 1/2
20 June 19213 1/23 3/444 1/2
11 December 19263 3/43 3/444 1/2
9 May 19273 3/444 1/25
9 July 19283 3/43 3/444 1/2
1 February 19303 3/43 3/44 1/45
22 April 19303 3/444 1/45
1 August 19313 1/23 3/444 1/2
1 June 193233 1/43 1/24
2 December 19322 1/22 3/433 1/4
11 July 193322 1/22 3/43
5 July 19341 1/222 1/22 3/4
2 November 19341 1/41 3/42 1/42 1/2
18 September 19403/41 1/42 1/42 1/2
17 July 19413/41 1/41 3/42
16 February 19561 1/21 3/42 1/42 1/2
14 June 195622 1/42 3/43

Post Office Savings Bank.—Following is a statement of the interest rates payable in respect of Post Office Savings Bank deposits since 1914.

Per Cent

Date Operative FromAmount of Deposit

* Rate in existence on 1 January 1914.

† See paragraph following.

 £1—£300£301-£500£501-£1,000£1,001-£2,000£2,001-£5,000
1 January 1914*544Nil.Nil.
1 January 1921443 1/43 1/43 1/4
1 April 1928443 1/43 1/4
1 August 19313 3/43 3/43 1/43 1/4
1 April 19333333
1 August 19333332 3/4
1 August 1934332 1/22 1/2
1 March 1935332 1/22 1/2Nil.
1 August 19413322Nil.
1 June 19422 1/22 1/222Nil.
1 September 19522 1/22 1/2221 1/2
1 May 19563332 1/22 1/2

Prior to 1 January 1914 the maximum deposit in the Post Office Savings Bank on which interest was payable was £600; but on that date the maximum was raised to £1,000. Between 1 January 1921 and 1 April 1928 interest was allowed on deposits up to a maximum of £5,000, but from the latter date the maximum deposit on which any interest was payable was £2,000. In respect of deposits lodged prior to 1 April 1928, however, interest at 3 1/4 per cent on the excess over £500 was still allowed up to a maximum deposit of £5,000. The rate on the amount between £500 and £5,000 was reduced to 3 per cent from 1 April 1933, on the amount exceeding £1,000 to 2 3/4 per cent from 1 August 1933, and on the excess over £500 to 2 1/2 per cent from 1 August 1934, and to 2 per cent from 1 August 1941. From 1 March 1935 to 31 August 1952 interest was not payable in respect of the excess above £2,000 in any account, but from 1 September 1952 interest at the rate of 1 1/2 per cent was made payable on amounts over £2,000 to £5,000; this was raised in May 1956 to 2 1/2 per cent on amounts £1,001 to £5,000, the rate for amounts £1 to £1,000 becoming 3 per cent.

Trustee Savings Banks.—Under the provisions of the Savings Banks Act 1908, which applied to trustee savings banks only, these banks were required to pay interest at the rate of 5 per cent on deposits of £1 and upwards, but not on fractions of £1 or on amounts of under £1. The maximum amount of deposits on which interest was to be paid was fixed at £100 for each depositor; but by the Finance Act 1921-22 the maximum was raised to £200. It remained at this figure until 1 July 1945, when it was raised to £500; from 1 April 1955 the maximum was raised to £750; and from 26 October 1956 the maximum is £1,000. The banks were empowered to reduce the rate of interest, with the consent of the Governor-General, after three months' notice given by an advertisement published in the Gazette. These provisions were continued by the Trustee Savings Banks Act 1948, which repealed the Savings Banks Act 1908.

In the National Expenditure Adjustment Act 1932 provision was made for the fixation by the Governor-General in Council of the maximum rates of interest payable by trustees of savings banks. Ruling rates immediately prior to July 1932 varied between 4 per cent and 4 1/2 per cent; but, by Order in Council, the maximum interest payable was reduced to 3 3/4 per cent as from 1 July 1932, and to 3 per cent as from 1 April 1933. A further reduction to 2 1/2 per cent was made as from 1 June 1942. The 1948 legislation, which replaced the above authority, gave power to the Governor- General to fix from tin to time the rates of interest to be paid on deposits, and also provided that different rates may be fixed with respect to different classes of deposits. From 1 April 1955 maximum rates were 2 1/2 per cent up to £500 and 2 per cent for over £500 and up to £750, while from 1 May 1956 the allowable maximum rate on all deposits was increased to 3 per cent on amounts up to £750, this limit being raised to £1,000 from 26 October 1956.

Company, etc., Deposits.—Authority was taken in the National Expenditure Adjustment Act 1932 to fix by Order in Council the maximum rates of interest payable on deposits with stock and station agents, trading companies, and building and investment societies. Changes made in the maximum rates of interest since 1932 are given on page 529 of the 1947-49 Year-Book. The maximum rates from 18 December 1952 for stock and station agencies and trading companies range from 1 1/2 per cent at call and under three months to 3 1/2 per cent for four years and over, and for building and investment societies from 20 November 1952 from 1 1/2 per cent at call and under three months to 3 1/2 per cent for four years and over; the latter range was extended from 29 April 1954 to 3 3/4 per cent for deposits for not less than five years, and 4 per cent for not less than seven years. Increased rates were provided for deposits with trading companies and building and investment societies as from 1 May 1956, the rates being as follows: short call, 1 1/2 per cent; three and under six months, 2 per cent; six months and under one year, 2 1/4 per cent; one and under two years, 2 3/4 per cent; two and under three years, 3 per cent; three and under four years, 3 1/2 per cent; 4 years and over, 3 3/4 per cent—this latter group was expanded as from 1 June 1956 to become four years and less than five, 3 3/4 per cent; five years and less than six years, 4 per cent; six years and less than seven years, 4 1/4 per cent; and seven years or more, 4 1/2 per cent. For the savings department of the latter class the rate was increased from 2 1/2 per cent to 3 per cent as from 1 June 1956.

Other Deposit and Interest Rates.—It is of service at this stage to mention briefly the interest rates payable in respect of certain other classes of deposits. The highest rate of interest payable on moneys in the Common Fund of the Public Trust Office (see Section 44) was fixed at 3 3/4 per cent from 1 April 1956. Reductions were made from 5 1/4 per cent in 1928 to 4 3/4 per cent in 1931, to 4 per cent in 1932, to 3 1/2 per cent in 1933. to 3 1/4 per cent in 1945, and to 3 per cent in 1949. There was an increase to 3 1/4 per cent in 1953, to 3 1/2 per cent on 1 January 1955, and to 3 3/4 per cent on 1 April 1956.

Local authorities may also accept deposits (in practice, only for short periods). The present maximum rates of interest (as from 1 May 1956, being the first change since 17 July 1941) on such deposits, as fixed by Order in Council, are: call and under three months, 1 1/2 per cent; three and under six months, 2 per cent; six months and over, 2 1/4 per cent.

References to rates of interest on mortgages will be found in Section 33A (Mortgages), while interest on Government debt is referred to in Section 30c (State Indebtedness), and interest on local- authority debt in Section 31 (Local Government).

COINAGE AND CURRENCY: New Zealand Coin.— Section 8 of the Finance Act (No. 2) 1932-33 authorized the Minister of Finance to arrange with the Master of the Royal Mint (in England) for a special issue of silver and bronze coinage of distinctive design for use in New Zealand. Any coins minted in accordance with this arrangement would conform to the standard Mint requirements of weight, fineness, etc., and were given status as legal tender in New Zealand.

The Coinage Act 1933, which came into operation on 1 December 1933, repealed section 8 of the Finance Act (No. 2) 1932-33 and made necessary provisions in respect of silver and of bronze or cupro-nickel coins. The Act contains no provision for the issue of New Zealand gold coins. Section 5 (4) of the Act authorized Proclamations declaring that British coins (other than gold coins) should not be legal tender in New Zealand, and a Proclamation was issued declaring British silver coins not legal tender in New Zealand on and after 1 February 1935.

Arrangements were made under which the Royal Mint agreed to remint free of charge the Imperial and Australian silver coin circulating in New Zealand, replacing it with the New Zealand coin referred to above, and to allow the New Zealand Government the bullion value of the coin not used in making such replacement.

The profit accruing to the New Zealand Government from the recoinage on this basis arises from the fact that the Australian coinage and a proportion of the British coinage then in circulation in New Zealand contained a larger proportion of silver than the new coin under the standard set out in the Schedule to the Coinage Act 1933, which was also the standard governing the production of Imperial silver coin. In addition, the Commonwealth Government agreed to the repatriation at face value of a proportion of Australian coin circulating in New Zealand.

Up to 31 December 1956 New Zealand coins of a total face value of £8,124,106 have been minted by the Royal Mint in London. Statistics of the face values of the various denominations of coin minted to 31 December 1956, and the value of New Zealand coin in circulation at 31 December 1956, are as follows.

 Total Minted to 31 December 1956 £In Circulation £

* Not available.

Crown112,696110,959
Half-crown2,465,1001,178,182
Florin2,427,0001,175,998
Shilling997,000678,898
Sixpence883,500662,840
Threepence1,037,500834,352
Penny314,550*
Halfpenny54,260*

In 1947 cupro-nickel coins were issued in place of silver coins, which were withdrawn from circulation as they were received by the banks.

Withdrawals of silver coinage to 31 December 1956 totalled £1,674,257.

New Zealand silver coinage first came into circulation in 1933, and New Zealand bronze coins were first released for circulation in December 1939.

Restrictions on Import and Export of Currency.—The Customs Import Prohibition Order now prohibits the importation of all coin (other than silver coin which is over one hundred years old) of whatever metal and wherever and whenever minted, and whether or not it is legal currency in New Zealand or elsewhere. Persons arriving in New Zealand are permitted to have with them on arrival silver coin not exceeding £2 in value. The importation of bank notes of the Bank of England, and of bank notes issued by banks in Scotland and Northern Ireland, is prohibited beyond a limit of £10 in denominations of £1 and 10s. or in the new issue of £5 notes.

The Customs Export Prohibition Order prohibits the exportation of all coin (other than silver coin which is more than one hundred years old) of whatever metal and wherever and whenever minted and whether or not it is legal currency in New Zealand or elsewhere. Persons leaving New Zealand are permitted to take silver coin not exceeding £2; or, if the journey is by direct route (without transhipment) to Great Britain or Ireland, silver coin to the value of £5 may be taken. In addition to the above, the Finance Emergency Regulations 1940 prohibited the taking or sending of any money out of New Zealand except with the consent of the Minister, or except in the case of certain transactions especially exempted.

In the cases of both the Export and the Import Prohibition Orders power is vested in the Minister to authorize in writing the variation of the provisions mentioned. Prohibitions mentioned in both Orders have effect in addition to, and not in substitution for, any other prohibition in force relating or applicable to the importation or exportation of any of the items enumerated in the Orders or in any other enactment.

Legal Tender and Issue of Notes.—The Coinage Act 1933 provides that a tender or payment of money, if made in New Zealand coins of current weight, shall be a legal tender to the following extent:

  1. Gold, to any amount.

  2. Silver and cupro-nickel for amounts not exceeding £2.

  3. Bronze for amounts not exceeding 1s.

The position in respect of the bank-note issue in New Zealand was radically altered by the Reserve Bank of New Zealand Act 1933. Section 15 enacted that on and after a date fixed by Proclamation—the Proclamation was signed on 26 January 1934 and fixed the date as 1 August 1934—the Reserve Bank had the sole right to issue bank notes in New Zealand; and thereupon the authority of every other bank to issue or re-issue bank notes was terminated, and such banks were required to redeem their outstanding notes in Reserve Bank notes or subsidiary coin to the extent to which the latter was legal tender. On 1 August 1936 every other bank carrying on business in New Zealand was required to pay over to the Reserve Bank an amount equal to the value of its then outstanding notes issued or payable in New Zealand, and its liability in respect of such notes to the holders (approximately £350,196 in 1956) was assumed by the Reserve Bank. Bank notes not presented for payment within forty years, commencing 1 April after date of issue in the case of Reserve Bank notes, or after assumption of liability (as above) in other cases, are deemed not to be in circulation, and an amount equal to the value thereof must be paid into the Consolidated Fund as if unclaimed moneys. The Unclaimed Moneys Act 1908 provides for the payment to the rightful owner of any moneys paid into the Consolidated Fund under the provisions of the Act.

Reserve Bank notes are constituted legal tender up to any amount. There is a provision in the existing legislation which requires the Bank, on presentation at its head office in Wellington of notes to any amount not less than £1,000, to give in exchange sterling for immediate delivery in London. This requirement may be suspended at the discretion of the Minister of Finance, and actually has been suspended since December 1938. On similar presentation of gold or of sterling for immediate delivery in London, in either case to an amount of £1,000 or more, the Bank must give its notes in exchange therefor. The rate of exchange for the above transactions is fixed by the Bank.

The principal Act required the Bank to maintain a minimum reserve of not less than 25 per cent of the aggregate amount of its notes in circulation and other demand liabilities; but the Reserve Bank of New Zealand Amendment Act 1939 empowered the Minister of Finance to vary or suspend this requirement. Both of these provisions were repealed by the Reserve Bank Amendment Act 1950, and the following provision substituted: "It shall be the duty of the Bank to maintain reserves which, in the opinion of the Board of Directors, will provide a reasonable margin for contingencies, after taking into account prospective receipts and disbursements of overseas funds, and having regard to the economic position within New Zealand." The definition of the term "reserve" has been amended and now includes—

  1. Gold coin and bullion in the unrestricted ownership of the Bank:

  2. Sterling exchange, comprising (1) deposits at the Bank of England, (2) British Treasury bills of not more than three months unexpired currency, (3) bills of exchange bearing at least two good signatures and of not more than three months unexpired currency:

  3. Net gold exchange, as defined in section 17 (c) of the Act of 1933:

  4. Other exchange—i.e., balances standing to the credit of the Bank at the central bank of any country the currency of which is freely convertible into sterling.

For the purpose of ascertaining the net reserve the amount of the Bank's liabilities in currencies other than New Zealand is deducted from the total of the "reserve."

The gold coin and bullion holdings of the Reserve Bank are shown in the Bank's books at cost value to the bank. The amending legislation of 1939 permits the Minister of Finance to make a revaluation up to the market value of the fine gold contained in the reserve, the premium resulting from such revaluation to be credited to a special reserve to be held on behalf of the Crown. This special reserve is to be used in such manner as the Minister of Finance may from time to time determine; but up to the present no such revaluation has been made.

The Reserve Bank may not issue bank notes of a less denomination than 10s., except with the authority of the Governor-General in Council. The present issue of notes consists of the following denominations: 10s., £1, £5, £10, and £50.

Notes are issued solely in response to the demands of the public. In assessing likely requirements there are seasonal factors to be considered, as well as basic economic conditions, such as national income, the levels of salaries and wages, changes in price levels generally, and in the total volume of money. In addition, methods and frequency of payments affect the amount to be issued.

Currency Other than Legal Tender.—Neither Australian nor other overseas paper money circulates in New Zealand, presumably on account of the exchange fee charged by the banks on receiving it.

No consideration of the amount of credit currency in use at any moment can overlook the very large proportion of payments made by cheque, mainly upon the trading banks, but also upon trustee savings banks and upon various stock and station agencies which act in this respect for their customers in the capacity of banker. Such cheques usually go direct from the payee to the collecting bank, but occasionally they pass from hand to hand.

Government postal notes (issued in thirty-nine denominations of from 1s. to £1) sometimes enjoy a certain length of life in the form of currency.

EXCHANGE RATES.—Although the movement of gold, whether internally or externally, was unrestricted in years prior to the First World War, certain of the conditions usually considered essential in the full operation of the gold standard were never effective in New Zealand. More correctly, New Zealand was, and still is, upon a sterling-exchange standard. The explanation is that the New Zealand banking system is not self-contained, in that the banks normally hold a large amount of funds in London. In fact, these London balances are the real regulative factor and the key to the whole New Zealand banking system. The inter-relation between these balances and import control and exchange control is of interest in this respect.

While New Zealand currency was at parity with sterling, except for minor fluctuations above or below parity, no necessity existed for distinction between sterling and New Zealand currency. The latter is entitled to be considered as one of the sterling currencies; but, adopting the convenience of a growing usage, sterling is used herein to refer solely to the currency of Great Britain.

The unusual significance of the exchange rate in the case of New Zealand depends chiefly upon the country's position in regard to overseas trade and to overseas borrowings. The course of development of New Zealand has not reached a stage where the country is fully self-contained, and the external trade per caput is greater than that of almost all, if not all, other countries. Most of this external trade is with the United Kingdom, while the function of London as an international clearing house is also of importance in this connection. New Zealand's borrowings from the London financial market have also been, until the last two decades, upon a high scale, requiring, as noted elsewhere (see State and also Local Authority Indebtedness), considerable annual payments in London.

The regulation of currency exchange is a function of the Reserve Bank, as noted previously. The Finance Act 1934 provides that any appreciation or depreciation of the assets of the Reserve Bank (expressed in the currency of New Zealand) owing to any alteration that may subsequently be made in the exchange rate, while the value of the local currency is not fixed by statute in terms of sterling, shall be credited to or be borne by the Consolidated Fund. In this respect, as already noted, the Consolidated Fund bore those losses incurred as a result of the 1948 adjustment of the exchange rate.

New Zealand and Sterling Exchange.—The relationship of New Zealand currency to sterling gained added significance from December 1929. Prior to that date the New Zealand currency was at virtual parity with British currency, only slight deviations occurring from time to time, but then commenced to depreciate gradually, reaching, in January of 1931, a level of approximately £110 New Zealand = £100 London for telegraphic transfers. At that level it remained fairly stationary until January 1933, when as a result of Government intervention it was abruptly depreciated to a further degree. The relationship existing from 20 January 1933 until the establishment of they Reserve Bank of New Zealand on 1 August 1934, was £125 (selling) and £124 10s. (buying) New Zealand = £100 London for telegraphic transfers.

From 1 August 1934 Reserve Bank quotations for £100 sterling for immediate delivery in London were: buying rate, £124; selling rate, £125. It was intimated that the policy of the Bank would aim at retaining these rates unchanged for a long period unless there occurred marked changes in existing conditions. While prepared to fulfil its statutory obligations, the Reserve Bank did not desire to compete for exchange business, provided adequate facilities were available elsewhere.

Following the statement of the Reserve Bank's policy, the trading banks adopted as from 1 August 1934 a scale of rates representing a reduction of 10s. per £100 on the rates ruling from 20 January 1933 to 31 July 1934. The rates were slightly changed on 21 October 1938, and further changes were made in the selling rate as from 1 December and in the buying rate as from 6 November 1940. During the year 1945-46 the Reserve Bank agreed to certain alterations in the trading banks' on-demand and usance rates.

The position was very materially altered as from 20 August 1948, following on the announcement by the Government on the previous night of the appreciation of New Zealand currency to parity with sterling. The Reserve Bank quotations from 20 August 1948 for £100 sterling for immediate delivery in London were: buying rate, £100; selling rate, £101. Consequential adjustments to the scale of rates of trading banks in New Zealand were also made. The quotations current for New Zealand on London at beginning of March 1957 are given in the following table. On demand and usance buying rates change with changes in the Bank of England discount rate. Since being recorded in the 1956 issue of the Year-Book, these rates have altered on 8 February 1957.

CategoryBuying (on Basis of £(Stg.)100)Selling (on Basis of £(Stg.)100)
Telegraphic transfers (cable)£(N.Z.)1007s. 6d.£(N.Z.)101 0s. 0d.
Sterling notes£(N.Z.) 9713s. 3d.£(N.Z.)101 0s. 0d.
Bills, cheques, and drafts payableAir MailSea MailAir and Sea Mail
on demand£(N.Z.)99 18s. 3d.£(N.Z.)99 8s. 0d.£(N.Z.)101 0s. 0d.
Bills or drafts 3 days sight£(N.Z.)99 16s. 9d.£(N.Z.)99 6s. 3d.No quotation
" 30 "£(N.Z.)99 8s. 3d.£(N.Z.)98 18s. 0d.£(N.Z.)100 19s. 3d.
" 60 "£(N.Z.)99 0s. Od.£(N.Z.)98 9s. 9d.£(N.Z.)100 18s. 6d.
" 90 "£(N.Z.)98 11s. 9d.£(N.Z.)98 1s. 6d.£(N.Z.)100 17s. 6d.
" 120 "£(N.Z.)98 3s. 6d.£(N.Z.)97 13s. 3d.No quotation

On the occasion of the devaluation of sterling in terms of gold and the United States of America dollar in September 1949 it was decided that New Zealand should maintain the value of its currency at parity with sterling.

As most of the export credits in normal times are utilized for financing imports it is advisable to note that the full exchange rate is not operative in respect of dutiable goods. This arises from the fact that, although Customs duties are assessed in sterling, payment of Customs duties is accepted in New Zealand currency without addition of exchange.

New Zealand and Exchange Rates with Other Currencies.—The change in the sterling-dollar parity was followed by a change in the dollar value of a large number of currencies. Some countries maintained the sterling value of their currencies, others maintained the dollar value, and others again altered the exchange value of their currencies in relation to both sterling and the United States of America dollar. In the latter cases there was a consequent alteration in the rate at which New Zealand currency was exchangeable for the currency of the country concerned.

The following table shows exchange rates (since 17 December 1951 the exchange rates have been free to fluctuate within certain limits) for telegraphic transfers quoted by the New Zealand trading banks for various currencies.

New Zealand onAt 28 February 1956At 28 February 1957
 BuyingSellingBuyingSelling
United States of America (dollars per £(N.Z.))2.80382.77212.79322.7616
Canada (dollars per £(N.Z.))2.79952.76342.67662.6419
France (francs per £(N.Z.))990962994966
Belgium (francs per £(N.Z.))141.37136.90141.99138.10
Switzerland (francs per £(N.Z.))12.2612.0112.2912.05
Pakistan (N.Z. pence per rupee)17.89918.34117.90618.344

The rates applicable for telegraphic transfer to Australia in February 1956 were £(A)124 10s. 9d. buying and £(A)124 selling per £(N.Z.)100.

FINANCE EMERGENCY REGULATIONS AFFECTING BANKING AND CURRENCY.—The Finance Emergency Regulations (No. 2) 1940 of 18 June 1940 took the place of earlier regulations gazetted on 10 April 1940, but they were also more comprehensive. Amendments to the regulations were issued in 1940, 1945, 1946, 1947, 1948, and 1950. The regulations, reprinted in 1953, closely resembled similar legislation passed in the United Kingdom shortly before the New Zealand measures came into force. The regulations prohibited the export of money and securities from New Zealand except with the consent of the Minister of Finance, and required that foreign currency belonging to any New Zealand resident be offered for sale to the Reserve Bank of New Zealand. From August 1948, by the Gold Acquisition Notice issued under the regulations, gold coin and bullion belonging to a New Zealand resident were to be offered for sale to the Reserve Bank. From 16 August 1952 New Zealand gold producers or their agents holding gold-dealers' licences were permitted to sell gold overseas on the open market, provided the full proceeds were received by the New Zealand banking system in United States of America dollars, at not less than $35 per fine ounce, and that export formalities had been complied with. Such gold dealers could purchase gold from producers for sale either in New Zealand or overseas on their own account, the Reserve Bank no longer selling gold for local use. On 28 October 1954 regulation 5 was revoked by Gazette notice, and persons acquiring gold are no longer required to offer it to the Reserve Bank.

Under the regulations owners of foreign securities were prohibited from dealing with their securities in any way and were obliged to register them with the Reserve Bank within a specified period. A Reserve Bank statement of 30 July 1940 somewhat eased these restrictions by permitting New Zealand residents to deal in overseas securities on the New Zealand register without the prior consent of the Reserve Bank, subject to the companies concerned agreeing to fulfil certain requirements as to returns, etc. As regards overseas securities held by New Zealand residents but registered outside New Zealand, the selling broker was required to obtain the prior consent of the Reserve Bank. Permission to deal in both these classes of overseas securities was subject to the further condition that a form recording the transaction was to be completed by both the selling broker and the buying broker and supplied to the Reserve Bank. Sales of overseas securities to other than New Zealand residents required the special permission of the Reserve Bank, and in all such cases the proceeds received overseas were to be remitted to New Zealand. The change from one form of overseas investment to another in an Australian market was not permitted without the consent of the Reserve Bank.

The regulations empowered the Minister to take over any overseas securities for the purpose of strengthening the financial position of New Zealand, at a price not less than the market value at the time of the transfer. The price payable for securities or currency acquired could be in cash, in New Zealand Government stock, or in a combination of both, according to the discretion of the Minister. For gold coin or bullion taken over the vendor had the option of any of these methods of payment.

The regulations were considerably amended as from 9 March 1950, and the present position may be summarized as follows. Every person ordinarily resident in New Zealand who holds or acquires any non-sterling currency or a right to receive non-sterling currency is required to offer it for sale to the Reserve Bank of New Zealand. This rule applies to bank notes or other currency, postal notes, promissory notes, and free bank deposits. Fixed deposits have to be reported to the Reserve Bank but not offered for sale. Any non-sterling currency or fixed deposit to which the regulations apply must not be disposed of (other than by way of repatriation through a New Zealand Bank) except with the permission of the Reserve Bank. Prior to 9 March 1950 this provision applied also to sterling-area currencies. Now "invisible" receipts and private holdings of sterling area currency are free from control.

The regulations also provide that non-sterling securities owned by persons ordinarily resident in New Zealand are to be declared to the Reserve Bank by their owners, and are not to be sold or transferred without the prior consent of the Reserve Bank. Prior to 9 March 1950 this applied also to sterling-area securities, but these are now free from control.

It should be noted that the proceeds from the sale of exports under licence must still be sold to a bank in New Zealand. Information concerning import and export control is contained in Section 10A. It is also an offence to engage in transactions involving the conversion of New Zealand currency into the currency of any other country at other than the official rate of exchange.

Further sections of the original regulations, although some do not directly affect banking and currency, empowered the Minister to require contributions to war loans; prohibited, without his consent, the formation of companies, building societies, etc., or the increase of capital or issues of securities by existing companies; regulated the issue of capital other than by a local authority; and empowered the Minister, as he deemed necessary in the public interest, to control advances for industrial purposes.

Amending regulations issued on 22 May 1946 provided that the consent of the Minister is not required for the formation of a company where the nominal capital does not exceed £10,000, or for an increase of capital of an existing company where the amount of the increase, together with the amounts of all other increases or issues of securities made within one year before that increase, does not exceed £10,000.

Chapter 33. SECTION 33—INVESTMENT AND FINANCE

33 A—MORTGAGES

MORTGAGE LAW.—Under the Property Law Act a "mortgage" is defined as including a charge on any property for securing money or money's worth; and "mortgage money" means money or money's worth secured by a mortgage. Under the Land Transfer Act "mortgage" means and includes any charge on land created under the provisions of that Act for securing—

  • The repayment of a loan or satisfaction of an existing debt;

  • The repayment of future advances, or payment or satisfaction of any future or unascertained debt or liability, contingent or otherwise;

  • The payment to the holders for the time being of any bonds, debentures, promissory notes, or other securities, negotiable or otherwise, made or issued by the mortgagor before or after the creation of such charge;

  • The payment to any person or persons by yearly or periodical payments or otherwise of an annuity, rent-charge, or sum of money other than a debt.

Where the ownership of land is registered under the Land Transfer Act (as, sec Section 18A, the great majority of land titles now are) mortgages on that land are granted by virtue of the provisions of that Act: they take effect as securities and do not operate as transfers of the estate or interest charged. In the case of other land or property a mortgage is granted under what is known as the deeds or deeds-registration system; the mortgage in this instance operating as a conveyance or assignment of the land or property mortgaged, for the mortgagee becomes the registered proprietor of the land, subject to the right of the mortgagor to have the property re-registered in his name on the discharge of his obligations under the mortgage. Although in form a mortgage under the deeds system is a conveyance, in equity it is treated as merely a charge on the land.

Property That May be Mortgaged.—Any land covered by the definitions of "land" in the Property Law Act 1952 and the Land Transfer Act 1952 may be mortgaged. Where, however, property is subject to restrictions upon alienation, these restrictions usually apply to prevent such property being mortgaged. The following are the main instances in which mortgage of property is forbidden by law:

  • Family homes registered under the Family Protection Act 1908.

  • Maintenance moneys under the Family Protection Act 1908.

  • Inalienable life annuities (Inalienable Life Annuities Act 1910).

  • Pensions under the War Pensions Act 1954.

  • Monetary benefits under the Social Security Act 1938.

  • Property subject to restraint upon anticipation, unless by consent of the Supreme Court.

  • Property subject to restraint upon alienation in accordance with section 33 of the Property Law Act 1952.

  • An infant's property, by the infant (Infants Act 1908, sections 12 and 13), unless the approval of the Magistrates' Court under the Statutes Amendment Act 1951 is obtained.

Redemption.—A memorandum of discharge vacates the mortgage debt and operates as a deed of reconveyance of the estate and interest of the mortgagee in the mortgaged property " to the person for the time being entitled to the equity of redemption"; but the mortgagee may execute a deed of reconveyance "if he thinks fit and the mortgagor requires it." The Public Trustee is empowered to receive mortgage moneys on account of absentee mortgagees, and in the case of a deed of mortgage to execute the necessary memorandum of discharge. Alternatively, application may be made to the Supreme Court, and the production of a certificate from the Registrar of the Supreme Court shall operate, upon registration, as a discharge of the land from the mortgage debt. A mortgagor may redeem in the following cases:

  • Before the due date, on payment of interest for the unexpired term of the mortgage. A special provision in the Mortgagors and Lessees Rehabilitation Act extends the powers of a mortgagor to redeem in certain cases before the due date.

  • At the due date, in accordance with the provisions of the mortgage.

  • After the due date, upon giving three months' notice in writing or paying three months' interest in lieu of notice, except where the mortgagee is or has been in possession or has taken steps to enforce his security, in which case the mortgagor may redeem at any time upon payment of all moneys due.

  • After default and before sale by the mortgagee. If the mortgagee has entered into possession of mortgaged land or part of it not held under the provisions of the Land Transfer Act 1952, the mortgagor loses his right of redemption after twelve years from the date of the mortgagee's entering into possession, or after twelve years from the last written acknowledgment of the mortgagor's title or of his right to redeem.

Earlier legislation abolished what was formerly known as the doctrine of consolidation of mortgages. Where a mortgagor is liable under more than one mortgage he may now pay off one mortgage without being called on to pay off any mortgage or mortgages on property not comprised in the mortgage he is paying off.

Rights of Mortgagee.—Under New Zealand law a mortgagee has no power of foreclosure in respect of realty. The following represent his principal rights:

  • He is entitled to the custody of the title deeds of the property mortgaged.

  • He may sue on the personal covenant contained in the mortgage deed.

  • He may enter and take possession. This right is exercisable either by actually entering upon the land or a part of it or by bringing an action for possession. At least one month's notice of the intention to exercise the right must be served on the owner for the time being of the land subject to the mortgage. If there is a tenant whose rights are binding on the mortgagee, the latter can give notice to the tenant to pay the rent to him, and this will be equivalent to taking possession.

  • He may assign his interest, either absolutely or by way of submortgage.

  • He may sell, either under the express powers (if any) in the mortgage deed, or under powers implied by statute, if these have not been negatived in the deed.

  • Instead of selling, as above, a mortgagee entitled to exercise his power of sale may apply to the Registrar of the Supreme Court to conduct the sale. The mortgagee must state in his application the estimated value of the land, and the date of the sale must be not less than one month and not more than three months from the date of the application. He may bid at the sale and become the purchaser of the land, but in such case the amount paid for the land shall not be less than the value of the land as estimated. If it is, the mortgagor must be allowed in account the full amount of the estimate. As in the case of the right to enter and take possession, no power of sale shall become exercisable unless at least one month's notice of the contemplated action has been served on the owner of the land.

SUMMARY OF MORTGAGES REGISTERED AND DISCHARGED.—A table is given showing the net amount represented by mortgages registered and discharged during each of the last twenty-one years.

Year Ended 31 MarchMortgages RegisteredMortgages Discharged
NumberAmountNumberAmount
  £ £
193619,11816,227,05818,57817,553,233
193722,31819,697,06421,82219,799,186
193824,04319,008,18423,62919,344,030
193925,18420,041,44622,94316,594,825
194022,63217,621,11220,69414,101,049
194121,66016,267,27422,89715,933,724
194220,66714,549,55522,57715,098,801
194317,07512.140,51323,70816,679,795
194419,92815,596,79027,16120,029,988
194521,21218,099,86127,41421,012,079
194624,51622,519,12229,17423,313,916
194729,88231,088,75032,23425,947,489
194829.89332,041,08529,00225,396,004
194929,57835,298,60026,64223,375,257
195030,35236,005,52226,09323,101,350
195143,87545,819,69135,50332,266,362
195249,84067,961,35537,92637,264,157
195350,63373,713,01134,16031,400,871
195452,80770,377,86036,72836,012,215
195557,99284,598,68037,93141,155,063
195655,54496,257,84234,07935,367,483

The figures given in the preceding table have been adjusted to exclude duplicate registrations— i.e., cases in which a mortgage has been registered in more than one district. It should also be noted that the figures include collateral mortgages and guarantee mortgages not representing money indebtedness. On the other hand, no amount is shown as secured in a proportion of cases where a mortgage is given in anticipation of advances, etc. In addition there are numbers of privately arranged advances which are not registered: and stock and crop liens, bills of sale, and instruments under the Chattels Transfer Act are not included in the statistics.

Many discharges are not registered, particularly in the case of leaseholds and also of second or other further mortgages when the power of sale has been exercised by the first mortgagee. The figures for discharges are further affected by the high proportion of table mortgages. This is particularly so in cases where the mortgage is approaching maturity, since the whole amount remains on the register until finally discharged, despite the fact that the original amount of indebtedness has been considerably reduced.

MORTGAGES REGISTERED.—The total amount for which mortgages were registered, both under the deeds-registration system and under the Land Transfer Act, in each registration district during the last five financial years is given in the next table.

£

District1951-521952-531953-541954-551955-56
North Auckland26,319,76929,399,410{16,642,58221,245,32824,358,510
South Auckland  10,154,89512,297,10214,661,808
Gisborne1,649,6521,265,5961,509,3291,500,7881,533,628
Hawke's Bay3,989,8903,410,5173,872,3924,445,9075,874,626
Taranaki3,701,1812,895,0063,430,3433,314,0153,666,537
Wellington13,803,33114,594,91113,160,17016,051,35718,533,383
Marlborough718,815871,6411,047,542937,5731,100,768
Nelson2,049,5882,036,7941,691,0671,726,0002,111,044
Westland395,683553,133425,625434,187395,808
Canterbury10,948,4009,763,1109,970,16011,818,78313,404,538
Otago5,924,1996,292,3975,154,1756,847,9107,504,536
Southland3,678,6123,649,9663,852,6444,638,6514,998,817
  Gross totals73,179,12074,732,48170,910,92485,257,60198,144,003
  Duplications5,217,7651,019,470533,064658,9211,886,161
  Net totals67,961,35573,713,01170,377,86084,598,68096,257,842

In 1951-52, the first full year following upon the lifting of controls on the sale of land, the number and amount of mortgage registrations reached the high level of 49,840 and £67,961,000 respectively, and there was a further small increase in 1952-53. Although the number increased in 1953-54, the value fell slightly to £70,378,000. In 1954-55 an increase occurred in both number and value, and although the value increased to the record total of £96,258,000 for 1955-56 the number dropped by 2,448 to 55,544.

Of the net total of £84,599,000 registered in 1954-55, only £8,310 was in respect of mortgages under the deeds system. In recent years this amount has fallen to negligible proportions as a result of the passing of the Land Transfer (Compulsory Registration of Titles) Act 1924, which provided for the bringing of all land titles under the provisions of the Land Transfer Act. This work has been practically completed, although there are a few titles that it has been considered unwise to deal with at the present owing to grave doubts as to ownership or for some other reason. For 1955-56 transactions under the deed system have not been separated from those under the Land Transfer Act.

Classification by Amount.—Of the gross total of £98,144,000 represented by mortgages registered during the financial year 1955-56, mortgages under £500 in value represented 2.7 per cent of the total; from £500 to £999, 4.7 per cent; £1,000 to £1,999, 20.5 per cent; £2,000 to £2,999, 27.8 per cent; £3,000 to £3,999, 7.7 per cent; £4,000 to £4,999, 4.5 per cent; £5,000 to £7,499, 8.9 per cent; and from £7,500 and over 23.3 per cent. The following table gives the number and amount for town and suburban and country properties according to sum secured.

Amount GroupTown and SuburbanCountryAll Properties
NumberAmountNumberAmountNumberAmount
£ £ £ £ £
Under 50010,3992,428,752837240,67911,2362,669,431
500-9995,8623,962,446891604,8706,7534,567,316
1,000-1,99912,01217,670,2071,6862,339,99113,69820,010,198
2,000-2,99911,02224,211,0181,3213,031,79412,34327,242,812
3,000-3,9991,4244,599,5528942,952,7062,3187,552,258
4,000-4,9994641,954,4155732,456,8611,0374,411,276
5,000-7,4994192,384,4511,0666,397,2341,4858,781,685
7,500 and over4157,175,4461,20515,676,2931,62022,851,739
Unspecified3,50934,7501,58722,5385,09657,288
  Gross totals45,52664,421,03710,06033,722,96655,58698,144,003
  Duplications271,569,16215316,999421,886,161
  Net totals45,49962,851,87510,04533,405,96755,54496,257,842

Excluding mortgages for which no amounts were shown, the average amount for each mortgage registered in 1955-56 was £1,907 as compared with £1,885 in 1954-55.

Mortgages on Urban and Rural Securities.—Figures are available in the case of land-transfer mortgage registrations showing for each registration district the amounts advanced on urban and on rural properties. The distinction is between "town and suburban" and "country" holdings, but sufficient information to permit of a strictly accurate classification on that basis is not always available. Generally, however, mortgages are regarded as town and suburban if secured on properties situated within cities or boroughs or on small holdings in the nature of building allotments which are not definitely distinguishable as country properties. Mortgages classified as town and suburban in 1955-56 were secured on areas averaging just under one-quarter of an acre in extent, as compared with an average area of some 313 acres in the case of "country" securities.

Town and suburban securities accounted for 82 per cent of the number and 66 per cent of the aggregate value of land-transfer mortgages in 1955-56, as compared with 18 per cent and 34 per cent respectively in the case of country properties.

The following table gives mortgages registered in the various districts during the year 1955-56.

DistrictTown and SuburbanCountry
NumberAreaAmount SecuredNumberAreaAmount Secured
  Acres£ Acres£
North Auckland13,1983,42319,356,5022,052264,8205,002,008
South Auckland4,7561,3326,962,9902,053414,6107,698,818
Gisborne682227823,500194191,230710,128
Hawke's Bay1,9525092,952,117635229,8462,922,509
Taranaki1,2743391,807,772594108,1591,858,765
Wellington9,4082,17013,809,9991,255346,9044,723,384
Marlborough427128563,107164239,028537,661
Nelson1,0002561,520,59636687,209590,448
Westland27868277,1416817,979118,667
Canterbury6,7601,5658,869,9591,219508,2304,534,579
Otago4,4038905,153,527803441,5552,351,009
Southland1,3883532,323,827657299,4082,674,990
    Totals45,52611,26164,421,03710,0603,148,97833,722,966

An eleven-year summary upon similar lines is also given. The years 1945-46 and 1946-47 saw the same substantial increases in values, of both urban and rural properties that had occurred in each year since 1943-44. The 1947-48 registrations showed little difference from those of the preceding year, though there were considerable increases in both categories for the 1948-49 year. The increase in urban mortgages continued in 1949-50, but with the lifting of the restrictions on the sale of all lands, other than farm lands, in February 1950 the upward movement was accelerated, the increase in 1950-51 amounting to £9,399,000, or 42 per cent, over the previous year, followed by a further sustantial increase of £14,721,000, or 46 per cent, in 1951-52 as compared with 1950-51. However, in 1952-53 and 1953-54, although the numbers registered increased slightly, there were declines in the value of urban mortgages. The year 1954-55 witnessed large increases in both number and value. Although there was a decline of 412 from the record number of the previous year, the money secured in 1955-56 increased by £11,547,000 to an all-time record of £64,421,000. Following the decrease in mortgages on country properties in 1949-50 there was an increase in 1950-51 of £611,000, or 5 per cent, over the 1949-50 year. The restrictions on the sale of farm lands were, however, not lifted until November 1950, and consequently the effect of the lifting of such controls is reflected more in the 1951-52 increase of £12,402,000, or 88 per cent, as compared with the previous year, in the amount secured on country properties. This increase continued in 1952-53, when the amount secured was £3,149,000 greater than the 1951-52 total. Increases of £3,730,000 in 1954-55 and £1,348,000 in 1955-56 created new records in successive years.

Year Ended 31 MarchNumberAreaAmount Secured
Town and SuburbanCountryTotalTown and SuburbanCountryTotal
  AcresAcresAcres£££
194624,4836,2971,640,7291,647,02613,987,9678,508,46222,496,429
194729,8607,4672,321,0852,328,55218,399,11613,260,06431,659,180
194829,8768,0142,267,8272,275,84119,103,41813,183,63432,287,052
194929,5707,5602,293,5452,301,10521,503,75213,876,16435,379,916
195030,3537,6072,397,5452,405,15222,630,79213,412,59236,043,384
195143,8849,3732,429,8442,439,21732,029,98214,023,26946,053,251
195249,88210,0212,563,2402,573,26146,750,65926,424,83673,175,495
195350,6589,9662,808,6052,818,57145,158,70729,573,52474,732,231
195452,83310,3963,258,7713,269,16742,265,78828,644,60670,910,394
195558,02811,6543,560,9153,572,56952,874,45532,374,83685,249,291
195655,58611,2613,148,9783,160,23964,421,03733,722,96698,144,003

NOTE.—These figures exclude certain miscellaneous registrations, but have not been adjusted to exclude duplications.

Rates of Interest.—The following table gives a classification of mortgages registered according to the various rates of interest, and includes duplicate registrations (to the extent of £658,921 in 1954-55 and £1,886,000 in 1955-56).

£

Rate Per Cent1954-551955-56Rate Per Cent1954-551955-56
1/21,8104,4005 1/51,250 
3/41,000 5 1/4121,622181,962
140,389137,1955 1/3 2,800
1 1/4 5505 1/22,763,4424,322,355
1 1/225,5756,3955 3/4169,825291,650
1 4/5 1,0005 7/81,5301,580
2216,737172,17165,285,7484,815,555
2 1/33,8801656 1/10 300
2 1/41,95020,1356 1/82,340 
2 1/2212,752192,1226 1/415,31573,515
2 3/45,6007,0006 1/2498,598583,804
37,921,1467,595,8696 2/3 15,987
3 1/8 1,1356 3/444,50036,500
3 1/47,3566,7006 7/8 770
3 3/89,000 71,330,3121,145,565
3 1/2349,367267,1997 1/42,350 
3 2/34,970 7 1/2146,257230,630
3 3/435,39223,7057 3/4 2,300
3 4/5 1,3008228,838492,351
3 7/8 5508 1/10 600
43,140,7562,407,4188 1/42,0007,864
4 1/103257,6008 1/3 200
4 1/89,538,71513,087,2738 1/210,8852,794
4 1/5 900922,67329,942
4 1/4940,200759,053911,150 
4 3/10 2009 2/51,127 
4 1/31,2009459 1/22,6141,850
4 3/839,31521,17510130,115215,001
4 1/210,987,5327,610,63011 2,000
4 5/834,82547,00612 500
4 3/4827,7742,052,96012 1/4 250
4 4/5 1,73012 1/2 8,925
4 7/82,570,6034,964,62513 2,000
4 9/10 250152,0186,504
529,773,42838,715,96720 205
5 1/20 3,00036 300
5 1/101,400 48 347
5 1/89,545150Unspecified7,762,2407,548,624
     Totals85,249,29198,144,003

A further classification of the 1955-56 figures in the preceding table is now given, showing the various rates of interest for town and suburban and country properties.

£

1955-561955-56
Rate Per CentTown and SuburbanCountryRate Per CentTown and SuburbanCountry
1/24,0004005 1/8150 
138,87298,3235 1/4135,51246,450
1 1/4550 5 1/32,800 
1 1/2 6,3955 1/23,383,230939,125
1 4/5 1,0005 3/498,350193,300
286,11986,0525 7/81,580 
2 1/8 16563,329,4931,486,062
2 1/42,20517,9306 1/10300 
2 1/291,882100,2406 3/464,5159,000
2 3/47,000 6 1/2429,820153,984
34,544,0083,051,8616 2/330015,687
3 1/81,135 6 3/436,500 
3 1/46,700 6 7/8770 
3 1/278,037189,1627782,083363,482
3 3/412,15011,5557 1/2152,18078,450
3 4/51,300 7 3/42,300 
3 7/8550 8396,17396,178
4869,6001,537,8188 1/10600 
4 1/105,4002,2008 1/4 7,864
4 1/810,820,5812,266,6928 1/3200 
4 1/5900 8 1/22,794 
4 1/4584,347174,706921,4428,500
4 3/10200 9 1/21001,750
4 1/3945 10136,91078,091
4 3/88,13013,045111,500500
4 1/25,335,0692,275,56112500 
4 5/87,78039,22612 1/4250 
4 3/41,044,4821,008,47812 1/28,325600
4 4/51,730 132,000 
4 7/82,297,3392,667,286151,1795,325
4 9/10250 20205 
524,249,48914,466,47836300 
5 1/201,6001,40048347 
 Unspecified5,325,9792,222,645
  Totals64,421,03733,722,966

The average rate of interest on new mortgages was maintained at over 6 per cent per annum from 1922 to 1932, but with the advent of the depression period and the effect of the mortgage relief legislation, subsequent years showed decreases. The inclusion of State Advances mortgages from the year 1935-36 onwards has no doubt also had the effect of reducing the average rate, and in addition the advent of rehabilitation mortgages to ex-servicemen in the earlier post-war years and their gradual diminution in more recent years affected the rate. The average rate has shown a rising trend since 1947. The average rate of interest for town and suburban properties for 1955-56 was 4.78 per cent, as compared with 4.72 per cent for country properties. The comparative figures for 1954-55 were 4.71 and 4.66 respectively. Averages for recent years for all properties have been as follows.

Year Ended 31 MarchAverage Rate Per CentYear Ended 31 MarchAverage Rate Per Cent
19454.5119514.09
19464.1019524.15
19473.8519534.29
19483.9019544.49
19493.9819554.69
19503.9919564.76

The following table shows interest rates of first mortgages on town and rural properties for the years ended 31 March 1952-56. It should be noted that mortgages registered with no specified rate of interest are excluded from the calculations of average rates.

Per Cent

Year Ended 31 MarchClass of MortgageTotal, Town and Rural
TownRural
First FlatFirst TableTotal (Including Other)First FlatFirst TableTotal (Including Other)
19524.414.044.204.353.894.094.15
19534.704.104.334.544.024.244.29
19544.914.334.534.764.214.424.49
19555.074.524.714.864.554.664.69
19565.144.564.784.904.584.724.76

The table clearly illustrates the rising trend in interest rates in all classes of mortgages during the period covered.

The next table gives the amount of mortgage money and interest rate of each class of mortgage for the three years ended 31 March 1954-56.

Class of MortgageAmount £(000) Year Ended 31 MarchAverage Rate of Interest (Per Cent) Year Ended 31 March
195419551956195419551956
First Flat Town10,67912,93217,2134.915.075.14
First Table Town24,31731,08436,8904.334.524.56
  Totals, Town (including other)37,64447,57459,0954.534.714.78
First Flat Rural8,51510,00011,5154.764.864.90
First Table Rural13,94515,63314,5794.214.554.58
  Totals, Rural (including other)25,69329,91331,5004.424.664.72
    Totals, Town and Rural63,33777,48790,5954.494.694.76

Rates of interest since 1932 have been considerably affected by legislative action. In 193 1-32 the financial year immediately preceding the operation of the National Expenditure Adjustment Act, the average rate of interest on mortgages registered was 6.28 per cent, as compared with 4.51 per cent in 1944-45. The sharp fall to 4.10 per cent in 1945-46, and the further fall to 3.85 per cent in the following year, were mainly due to rehabilitation loans granted to ex-servicemen by the State Advances Corporation. The rate of interest charged on rehabilitation loans for residential and farm properties is 3 per cent, and of the gross amount of mortgages registered during the years 1946-47 to 1955-56 no less than 38.4, 36.7, 30.2, 28.0, 22.4, 16.8, 16.2, 12.9, 9.3 and 4.6 per cent respectively were at this rate, as compared with only 2.0 per cent in 1944-45. The rise in the average rate in later years probably reflected the gradually decreasing proportion of the gross amount which was due to rehabilitation loans. Also the general trend of increased rates of interest on new mortgages is shown by the analysis of the 1955-56 figures. It is of interest to note that in 1931-32 only 10.2 per cent of the specified amount was at rates not exceeding 5 per cent, while no less than 43.3 per cent was at rates exceeding 6 per cent. The corresponding figures for 1955-56 were 86.2 and 3.2 respectively.

A further analysis showing amounts specified by interest rate groups is given below. This table shows that the proportion of new mortgages registered in the higher range of interest rates rose appreciably in the last three years, especially in the group of over 4 1/2 per cent to 5 per cent, while the proportion in the lower rates of interest markedly declined.

Year Ended 31 MarchNot Exceeding 3 Per CentOver 3 Per Cent to 4 Per CentOver 4 Per Cent to 4 1/2 Per CentOver 4 1/2 Per Cent to 5 Per CentOver 5 Per Cent to 6 Per CentExceeding 6 Per Cent
Amount (£)
19465,883,0121,838,4477,970,5553,077,333475,215366,029
194712,317,2704,456,5888,043,1712,955,989515,680417,148
194811,999,1684,725,0538,550,2552,584,167942,998606,446
194910,796,4985,057,07911,386,2382,861,779992,820499,543
195010,302,3015,524,79512,748,0672,697,301656,134569,230
195110,558,3456,903,78418,983,5113,780,242798,598880,315
195212,635,3059,838,32834,620,5135,108,7471,642,1041,112,514
195312,533,9834,709,17534,807,18512,957,1632,317,8821,515,900
19549,511,6213,606,79021,983,96422,716,0563,867,9211,650,872
19558,430,8393,546,84121,507,28733,206,6308,354,3622,441,092
19568,137,0022,708,00721,487,77645,782,5389,619,0522,861,004
Percentage of Total
194630.09.440.615.72.41.9
194742.915.528.010.31.81.5
194840.816.029.18.83.22.1
194934.216.036.09.13.11.6
195031.717.039.28.32.01.8
195125.216.545.39.01.92.1
195219.515.153.37.92.51.7
195318.26.850.618.83.42.2
195415.05.734.735.96.12.6
195510.94.627.842.810.83.1
19569.03.023.750.510.63.2

The trend in interest rates is further illustrated in the following diagram, which shows also the movement in mortgage registrations. The total amounts indicated in the diagram and in the two immediately preceding tables do not represent the total registrations in the respective years, as mortgages on which the rate of interest was not specified have been excluded.

MORTGAGES DISCHARGED.—After a very long period during which the value of mortgages registered substantially exceeded the amount represented by mortgages released, discharges exceeded registrations for a period of five years commencing with the year 1933-34. In the subsequent three years the reverse position obtained, but, commencing with 1941-42, discharges again commenced to exceed registrations, and continued to do so up to 1945-46, although the margin in that year was not very great. In each of the succeeding nine years registrations exceeded discharges, the difference for each of the last three years being £34,366,000 in 1953-54, £43,444,000 in 1954-55 and £60,890,000 in 1955-56.

The total amount released in 1954-55 was £41,155,000, the highest total yet recorded. The amount released during 1955-56, at £35,367,000, was the lowest since 1952-53.

The total amount of mortgages discharged, including mortgages under the deeds-registration system, for the last four years is as follows.

District1952-531953-541954-551955-56
NumberAmountNumberAmountNumberAmountNumberAmount
  £ £ £ £
North Auckland12,0439,807,4568,8906,698,7609,3768,485,7978,2437,508,960
South Auckland  3,8263,566,1344,0174,481,6813,5623,872,507
Gisborne547637,669634729,942665752,760603965,577
Hawke's Bay1,5911,885,7291,6932,235,2291,6222,224,4711,5871,960,049
Taranaki1,3551,362,9641,5611,827,7741,4421,785,8081,1941,540,406
Wellington6,9677,094,6357,3528,285,8217,3788,508,7096,7897,295,611
Marlborough390306,456431377,707438548,886392445,978
Nelson915733,696934805,8491,033935,786944825,379
Westland265195,616273201,146272254,489257195,594
Canterbury4,8394,743,7035,4466,046,0205,6556,613,9825,2795,885,210
Otago3,6913,003,1963,7473,108,7964,2014,101,9203,6913,081,773
Southland1,5571,629,7511,9442,198,3371,8352,501,5441,5451,830,389
  Gross totals34,16031,400,87136,73136,081,51537,93441,195,83334,08635,407,433
  Duplications  369,300340,770739,950
  Net totals34,16031,400,87136,72836,012,21537,93141,155,06334,07935,367,483

Details of town and suburban and country discharges for 1955-56 are given in the following table.

DistrictYear Ended 31 March 1956
Town and SuburbanCountry
NumberAreaAmount DischargedNumberAreaAmount Discharged
  Acres£ Acres£
North Auckland6,6931,6955,438,3921,550208,8692,070,568
South Auckland2,1406341,537,9131,422323,2312,334,594
Gisborne414150309,701189150,440655,876
Hawke's Bay1,130288919,121457149,1881,040,928
Taranaki679189536,860515110,7811,003,546
Wellington5,6481,2415,212,4301,141288,0072,083,181
Marlborough25374192,063139105,677253,915
Nelson664162555,37128058,390270,008
Westland21959149,897388,84745,697
Canterbury4,1339933,469,0221,146383,1682,416,188
Otago3,0326042,193,720659230,296888,053
Southland969246907,516576201,923922,873
  Gross totals25,9746,33521,422,0068,1122,218,81713,985,427
  Duplications3 6,5504 33,400
  Net totals25,9716,33521,415,4568,1082,218,81713,952,027

33 B—STATE ADVANCES

As early as 1892 the Government commenced the purchase of lands for cutting up for sale or lease to private individuals, and two years later the passing of the Government Advances to Settlers Act 1894 marked the inauguration of a series of schemes for lending money to settlers, workers, etc., for the purchase of homes, the improvement of farms, and the development of resources and of industries. The schemes varied considerably in detail, but all lay in one of two main classes—those in which the money was advanced on security, and those in which the expenditure was incurred by the Government itself in the first place and recouped from sales or leases. Advances to settlers, workers, and ex-servicemen are the principal examples of the former class, and the purchase of land for settlement (including the settlement of ex-servicemen) is the principal example of the latter.

STATE ADVANCES CORPORATION.—The Mortgage Corporation of New Zealand Act 1934-35 authorized the creation of a Corporation under a Board composed of directors appointed partly by the State and partly by the shareholders of the Corporation.

By the State Advances Corporation Act 1936 the private capital invested in the Mortgage Corporation was cancelled, provision being made for buying out shareholders in respect of shares held in the Corporation. The capital of the Corporation was maintained at £1,000,000, however, by an investment from the Consolidated Fund, while all securities issued by the Corporation carry a State guarantee. The management of the Corporation is vested in a Board of Directors consisting of a managing director and deputy managing director appointed by the Governor-General in Council, one or more other directors similarly appointed, and an ex officio director, being such officer of the Treasury as the Minister of Finance may approve from time to time. In the exercise of its powers, the Board is enjoined to have regard to any representations that may be made by the Minister of Finance. Every direction in writing given by the Minister is binding on the Board.

The change in administration and the institution of a State guarantee on securities issued by the Corporation represented the major alterations to the pre-existing law. All the functions of the Mortgage Corporation were transferred to the new body, while certain extensions of function were made— e.g., the administration of the Housing Act 1919. The following is a resume of the principal functions of the State Advances Corporation.

The Corporation administers the State Advances, etc., loans previously transferred to the pre-existing Mortgage Corporation, viz.—

  1. Mortgages in respect of advances to settlers or workers under the State Advances Act 1913:

  2. Mortgages in respect of advances under the Rural Advances Act 1926:

  3. Debentures or other securities vested in the State Advances Superintendent in respect of advances to local authorities under Part 111 of the Local Bodies' Loans Act 1926, or corresponding provisions of former Acts:

  4. Crown mortgages in respect of advances to ex-servicemen of the First World War under the former Discharged Soldiers Settlement Act 1915 or any amendments thereof (including advances under section 11 of the Finance Act 1933), and now under the Land Act 1948.

In order to provide loan finance the Corporation may issue bonds, stock, or other securities which are State guaranteed.

The Corporation may advance on the security of a first mortgage on land, and normally such advances do not exceed two-thirds of the value of the security, but there is provision for the extension of that margin in certain cases, including the rehabilitation loans referred to later, and for such purposes as the erection of new houses. No loan limit is laid down for cases where the amount of the advance does not exceed two-thirds of the value of the security, but loans over £2,250 are not usually granted on the security of dwellings to be erected and £2,000 on dwellings to be purchased. In cases where the normal margin is exceeded with the approval of the Government, the Minister of Finance guarantees the Corporation against any loss attributable to the granting of advances in excess of two-thirds of the value of the security. For the purpose of erecting new homes up to 90 per cent of the value of the security may be advanced, and the loan limit for such cases was increased in 1950 to £2,000, including any suspensory loan that may be granted.

A suspensory loan is, in effect, a conditional subsidy towards the cost of building a home for personal occupation. These loans are repayable should the house be sold or otherwise disposed of within seven years; otherwise they are free of interest and will be converted into grants when the seven years have expired. They are limited to 10 per cent of the cost, with a maximum of £200. If the cost is greater than £2,300 the amount of the suspensory loan is reduced by £1 for every £2 by which the cost exceeds £2,300 with no suspensory loan if the amount should fall below £50. Extended cost limits are allowed in the case of families where there are more than two children. As with the increased loan limit, the suspensory loan scheme applied to houses commenced on or after 1 December 1949. The number of suspensory loans of this type approved for the year ended 31 March 1956 was 3,193 involving £489,835, and the total to 31 March 1956 was £2,887,641 in respect of 17,606 loans.

In addition to the above suspensory loan scheme there is a further class of suspensory loan granted to rehabilitation farm applicants, the object of which is to settle the men on a basis comparable with that under the conditions which existed while the Servicemen's Settlement and Land Sales Act 1943 remained in force. During the past year 324 suspensory loans of this type were granted involving advances of £403,360. Since the scheme was put into operation a total of 2,428 such suspensory loans have been authorized, the aggregate amount involved being £2,736,480. The funds required to meet urban and rural suspensory loans are provided by the Treasury out of the Consolidated Fund, and lump-sum payments are made by the Treasury to the Corporation to meet requirements from time to time.

The large majority of the loans granted by the Board are secured by table mortgages for terms varying from ten to thirty years, but the Board also has power to make advances on flat mortgage on certain conditions.

When loans are granted in excess of normal lending margins, mortgagors may be required to offer some form of collateral security (e.g., mortgage of life policy). A mortgagor may not give any subsequent mortgage or any other charge over land subject to any mortgage to the Corporation except with the written authority of the Board, unless the further mortgage or other charge is in favour of the Corporation.

Each mortgagor is required to pay an amount equal to 2 per cent of any mortgage granted by the Corporation as a contribution to the General Reserve Fund. These amounts, which may be borrowed as an addition to the principal sum if so desired, together with the surplus profits referred to below, and certain payments on account of mortgages transferred to the Corporation, form the General Reserve Fund.

The Board is required from time to time to fix the rates of interest to be paid under mortgages to the Corporation, so as to make adequate provision to cover the costs of administration and for all other matters incidental to the proper functioning of the Corporation. After such provision as the Minister of Finance thinks proper has been made for the depreciation of securities or other assets, and for such other matters as in his opinion are necessary for the efficient conduct of the business of the Corporation, the surplus for each financial year is to be paid into the Public Account unless the Minister, in his discretion, authorizes the Board to credit it, in whole or in part, to the General Reserve Fund of the Corporation.

In addition to its primary function of providing cheap long-term finance in the form of first mortgage on property, the Corporation has been authorized to make loans to local authorities out of the Housing Account for the purpose of erecting workers' dwellings or farm dwellings, and also advances to individuals for the development of existing industries or the establishment of new industries.

The Corporation is also authorized to act as agent for other Departments of State, more particularly in respect of the inspection and supervision of properties and the collection of moneys payable to such Departments.

The Corporation acts as the agent of the Rehabilitation Board in obtaining valuations and preparing reports in respect of farm and residential property for submission to the Rehabilitation Loans Committee (or to District Loans Committees acting under delegated authority from the Rehabilitation Loans Committee), which has been appointed to consider and approve of loan applications lodged by ex-servicemen who are eligible for assistance under the Rehabilitation Act 1941. The administration of such loans, when granted, is the subsequent responsibility of the Corporation. The classes of loans granted and the terms and conditions applicable thereto are set out in Section 9B (Rehabilitation). The securities taken in respect of rehabilitation loans for farms or houses are similar to mortgages taken for the purpose of securing advances made under the Corporation's ordinary lending activities, except that the Reserve Fund contribution on advances within the respective loan limits is paid by the Consolidated Fund, which also meets the difference between the Corporation's normal interest rate and the reduced interest rate charged to ex-servicemen. These payments to the Corporation were formerly met from the War Expenses Account which was abolished as from 1 April 1950. In respect of other types of rehabilitation loans, such as for businesses and the purchase of furniture and tools of trade, the necessary loan finance was also provided from the War Expenses Account. When this Account was closed a sum of £500,000 was transferred to the State Advances Corporation for the purpose of granting future loans of this nature. These loans are administered by the Corporation on an agency basis. The form of security taken and the terms as to repayment vary according to the type of loan and the circumstances of the borrower.

A mortgage guarantee scheme was provided for by the State Advances Corporation Amendment Act 1953. This amendment enables the Corporation to guarantee financial institutions repayment by the borrower of the difference between their normal housing loan and 90 per cent of the valuation.

Reference to the Housing Act 1955 and the Government's housing scheme, together with particulars of the numbers of houses erected, financial operations, etc., are contained in Section 25 (Building, Construction, and Housing).

Summary of Activities.—As already indicated, the Corporation, in addition to its normal lending functions, administers a number of other State activities, and a general summary of the business under administration as at 31 March 1956 is as follows.

ClassificationNumber of AccountsPrincipal Investment £
State Advances Corporation—
  Mortgage investments—
    Urban64,05576,326,039
    Rural, including current account24,48652,437,240
  Government and local authority securities9849,379,959
  Loans to industries under section 29881,493,238
Housing Account-
  Dwellings let37,851}73,841,698
  Shops, halls, and communal garages188 
  Dwellings sold12,69324,341,774
  Loans to local authorities97980,578
  Loans to employers29131,623
Rural Housing Act: loans to local authorities60338,770
Advances under Rehabilitation Act 1941 —
  Furniture, tools of trade, business, and miscellaneous10,585732,856
  Interest-free supplementary loans 1,687,633
Other agencies—
  Health Department23141,022
  Agriculture Emergency Powers Act 193434,976
  Farmers' Loans Emergency Regulations 19402420,446
  Works Department hutments rented to farmers92,684
  Suspensory loans (rural and urban)15,7464,950,899
  Timber workers' housing—
    Levies accounts675}406,825
    Rental accounts110 
  Miscellaneous rentals503 
    Totals168,209£247,218,260

Farm loans and residential loans to ex-servicemen under the Rehabilitation Act 1941 are included with " Mortgage investments" above. Particulars of all rehabilitation loan authorizations will be found in Section 9B (Rehabilitation).

Financial— Balance-sheet figures show that at 31 March 1956 the authorized capital was £1,000,000, while stock and debentures outstanding were £125,122,590, an increase of £11,400,000 in the case of the latter compared with 31 March 1955.

The General Reserve Fund at 31 March 1956 amounted to £8,279,686, and, in addition, there were specific reserves amounting to £3,074,084, making a total of £11,353,770, as compared with £10,616,793 at 31 March 1955.

Mortgages and accrued interest at 31 March 1956 totalled £128,808,095, an increase of £12,918,715 as compared with 31 March 1955, while Government and local authority securities and accrued interest at £9,468.574 were greater by £1,940.872.

The disposition and appropriation of profits in respect of operations during each of the last three financial years are given in the following table.

£

1953-541954-551955-56
Gross income4,672,0934,991,9005,542,620
  Less interest on General Reserve Fund investments234,016256,329301,195
Gross income (mortgage and temporary investments)4,438,0774,735,5715,241,425
Interest on stock and debentures3,195,5933,488,6363,833,669
    Gross profit1,242,4841,246,9351,407,756
Management expenses489,056508,905574,718
Administration of rehabilitation advances80,30562,48046,235
Earthquake insurance26,94330,78534,952
    Net profit646,180644,765751,851
Less reserve for taxes445,000445,000540,000
Less reserve for losses100,503104,864106,096
    Surplus payable to Crown100,67794,901105,755

The gross income of £5,542,620 in 1955-56 included £4,386,772 interest on mortgages and current accounts, £326,940 interest on Government and local authority securities and temporary investments, and £828,908 recovery from the Rehabilitation Division on account of interest concessions to ex-servicemen on rehabilitation advances. Corresponding figures for 1954-55 were £3,885,653, £264,219 and £841,989 respectively.

New Business.—A summary of loan operations (new business) for the last two financial years is given in the following table.

Loans Authorized1954-551955-56
NumberValueNumberValue

* Excludes the number of supplementary and suspensory loans.

Urban securities— £ £
  Erection of dwellings5,46210,900,6586,70713,671,833
  Purchase, refinance, and other purposes3,2514,213,3503,4334,558,186
  Supplementary(570)41,775(443)30,970
  Suspensory(3,103)500,969(3,087)471,130
    Totals, urban8,713*15,656,75210,140*18,732,119
Rural securities—
  Purchase, refinance, and other purposes1.4245,958,1261,5466,505,969
  Suspensory(403)412,635(432)424,260
    Totals, rural1,424*6,370,7611,546*6,930,229
Loans to industry397,85013234,060
Local authorities76814,1801402,478,335
    Grand totals10,216*22,939,54311,839*28,374,743

The preceding figures include rehabilitation loans in respect of farms and houses. Other rehabilitation loans granted by the Rehabilitation Loans Committee and administered by the Corporation were as follows.

Loans AuthorizedYear Ended 31 March 1955Year Ended 31 March 1956Total to 31 March 1956
No.ValueNo.ValueNo.Value
  £ £ £
Business211168,323151112,87011,3257,329,470
Furniture1,617155,49186682,54262,0405,789,296
Tools of trade313751451,47748,786
Miscellaneous65852400666131,707
Additional advances964,683311,54959950,327
    Totals1,933329,2191,055197,50676,10713,349,586

A statement is given below of the aggregate number and amount of loans approved by the Board of Management since the Corporation commenced business in 1935.

 Number£
Farm (including supplementary and suspensory)20,98778,779,369
Residential (including supplementary and suspensory)99,332134,198,825
Local authorities96713,772,893
Industries572,261,806
Totals121,343£229,012,893

The lending rate of the Corporation was maintained until the end of 1953 at 4 1/8 per cent. Where first establishment is involved, rehabilitation loans to ex-servicemen for houses and farms are, however, at 3 per cent, reducible to 2 per cent for the first year and for business loans at 4 per cent, reducible to 2 per cent for the first year. The amount involved in interest concessions of this kind is now recouped from the Consolidated Fund. Loans granted under the Corporation's normal lending business are in general secured by table mortgages for varying periods.

The State Advances Corporation increased interest rates from 1 January 1954 on loans for the purchase of approved urban and rural properties from 4 1/8 per cent to 4 7/8 per cent and, from 1 April 1956, to 5 per cent. The interest ate applicable to loans for the building of new houses was increased from 4 1/8 per cent to 4 3/4 per cent as from 1 April 1956.

The following summary shows the annual cost—i.e., interest and principal payments—per £100 borrowed on table mortgage at 4 3/4 per cent and 5 per cent for the various periods.

TermAnnual Amount Payable Per £100 Borrowed
4 3/4 Per Cent5 Per Cent
 £s.d.£s.d.
10 years1213812168
15 "9809112
20 "71607194
25 "6176710
30 "6510694

Special plans prepared by leading architects are available in book form, and assistance in calling tenders and in the erection of the houses is available from the Corporation's technical officers.

RURAL INTERMEDIATE CREDIT.—The Rural Intermediate Credit Board, appointed in terms of the Rural Intermediate Credit Act 1927, provided a source from which farmers could obtain loan finance on favourable terms for such purposes as the purchase of stock and plant and farm improvements.

Pursuant to the provisions of Part VI of the State Advances Corporation Act 1936, the former Rural Intermediate Credit Board went out of office on 1 July 1937, and was replaced by the Board of Management of the State Advances Corporation, whose members became the Rural Intermediate Credit Board.

In terms of the Rural Intermediate Credit Amendment Act 1946 the business of the Rural Intermediate Credit Board was, as from 1 October 1946, absorbed by the State Advances Corporation, the Board being abolished as from that date.

Under the Act farmers may obtain assistance in the following manner:

  1. By borrowing through co-operative rural intermediate credit associations whose formation (with not less than twenty members and with certain defined objects) is provided for by the Act. The application for the loan is received and considered by the association concerned, which, on approving it, applies to the Corporation for its confirmation and for an advance to cover the loan. These loans are repayable on demand, but it has been the policy to arrange for the borrower to repay the amounts advanced over a period of up to five years. Extensions beyond that period may be approved in suitable cases. An association may, with the approval of the Corporation, arrange with a bank or other approved financial institution for a loan in cases where the term is not more than six months.

  2. Persons engaged in farming on their own account, trustees, executors, or administrators carrying on farming operations, may obtain loans direct from the Corporation, the conditions being similar to (a) above.

During the twenty-five years from the inception of the Rural Intermediate Credit system up to 31 March 1956 advances exceeding £2,800,000 have been made.

At 28 February (956 there were eight co-operative rural intermediate credit associations in operation. The loans authorized through this channel during the year 1955-56 amounted to £130,997, and there were 213 loans current at the end of the year for an aggregate amount of £151,198.

The interest fixed for advances other than to co-operative rural intermediate credit associations is 5 per cent per annum, except in the case of ex-servicemen eligible for rehabilitation assistance, where the interest rate is 4 per cent per annum (rebated to 2 per cent for the first year provided the loan conditions are fulfilled). In the case of loans to co-operative rural intermediate credit associations the rate charged is 4 per cent, so that associations may be in a position to make advances to their members at 5 per cent.

SALE OF STATE HOUSES.—In conformity with the Government's policy of encouraging private home ownership, State house tenants are given an opportunity to buy the houses they occupy.

In the case of tenants occupying State rental houses on or before 31 July 1950 the main sale terms are—

  1. A minimum deposit of 5 per cent of the sale price.

  2. A suspensory amount assessed at 10 per cent of the sale price, with a maximum of £200.

  3. A repayment period up to forty years for the balance of the purchase money, together with interest, on an instalment-table basis.

  4. An interest charge of 5 per cent, reduced to 3 per cent while the conditions of sale are complied with.

  5. Discount of 5 per cent for payments of purchase money in excess of the required principal instalments, or in excess of the minimum deposit.

  6. Repayment insurance benefits applicable to all cases where the wage-earner in the purchaser's family is under sixty years at the time of purchase.

  7. If the purchaser wishes to resell the State house within seven years it must first be offered for sale back to the Crown.4631

The purchase terms available to tenants first occupying State rental houses after 31 July 1950 are more related to the loan terms for persons erecting new houses (see pp. 898-899). They include—

  1. amounts where purchasing tenant is first occupier.

  2. minimum deposit of 10 per cent of the gross purchase price or the amount of the purchase money in excess of £2,000, whichever is the greater. Where, however, the financial position of the purchaser warrants, the Board of Management of the Corporation may accept a reduced deposit in such a case.

  3. The balance of the purchase money, together with interest, payable over a period of years on an instalment-table basis.

  4. Interest at 5 per cent reducible to 4 1/8 per cent while conditions of sale are complied with.

  5. Provision for the property to be offered for sale to the Crown in the event of the purchaser wishing to resell within seven years.

From the inception of the sale of State rental houses up to 31 March 1956 the number sold to the tenants was 12,252, for a total sale price of £27,315,410.

33 C—BUILDING SOCIETIES

THE law relating to building societies incorporated in New Zealand is in the main contained in the Building Societies Act 1908, which is a consolidation of earlier legislation, most of which had been operative since 1880. Miscellaneous amendments were made by the Building Societies Amendment Act 1955, which provided for the appointment (from 1 January 1957) of a Registrar and Deputy Registrar of Building Societies, and of District Registrars and Assistant Registrars, and prescribe the matters to be recorded in each register. Under previous legislation there was no provision for a central registry, the Assistant Registrar of Companies in each district acting as Registrar of Building Societies. Rules, as well as subsequent alterations thereof, must be certified before registration as conforming to legal requirements—by a revising barrister appointed by the Governor-General for the purpose. No stamp duties are payable on documents made under the Act, or generally in respect of building society transactions.

Building societies are afforded all the powers and rights of an ordinary mortgagee, a description of which is contained in Section 33A—Mortgages. No reconveyance is needed to discharge a mortgage made under the Act, a receipt endorsed being a sufficient discharge for this purpose.

Authority was taken in the National Expenditure Adjustment Act 1932 to fix by Order in Council the maximum rate of interest payable on deposits with building societies. Maximum rates payable on these and other deposits fixed by subsequent Orders in Council are given on page 880.

Returns of each society's operations are furnished annually to the Department of Statistics.

A distinction is made between permanent and terminating societies. A permanent society is statutorily defined as one which has not by its rules any fixed date or specified result at which it shall terminate, and a terminating society as one which by its rules is to terminate at a fixed date, or when a result specified in its rules is attained. In practice a terminating society, or a group thereof, closes when every member so desiring has obtained a loan. There is a considerable difference between the two types of societies, the terminating society being a purely co-operative institution belonging to and managed by the members, proprietary interests being discouraged by placing a limit to the number of shares (usually ten) that any member may hold in any one group. There is, however, nothing to prevent a member from holding the maximum number of shares in more than one group. In a typical terminating society contributions are at the rate of 1s. per week per share, each share entitling a member in due course to £200 of loan, with a maximum, until recent years, of £1,200. As £1,200 is not sufficient to meet the needs of the average prospective houseowner on present-day costs, there is a tendency for the limit to be raised. In some groups of the terminating societies the loan maximum is now £3,000. It is these contributions, together with premiums on loans mentioned later, which make up the funds from which loans are made. Loans are made to members both by ballot and by auction, the latter going for the highest premium offered. Security is required for the loans, which are repaid, free of interest, in periods varying from ten to twenty years. The weekly payment of 1s. per share is continued, usually till the end of the group, but sometimes only until the total contributions paid in, plus profits, credited to the shareholder, equal the amount owing on the loan. The shareholder's credit balance is then transferred to extinguish the loan. The profit of the society is derived from premiums on loans sold by auction.

Permanent societies are more in the nature of finance companies, and, while both investors and borrowers must be members, the borrower is frequently merely a nominal member. Investments in a permanent society may be made in either large or small amounts. Capital may be raised by shares with a fixed rate of interest, or subject to dividends varying according to profits. As will be observed from the statistics which follow, terminating societies do not issue capital shares. Bonds, debentures, deposits, and overdraft are other methods of financing. The principal object of a permanent society is to lend money at a profit on land and buildings, either freehold or leasehold. Table mortgages are normally adopted, the usual term of repayment being up to twenty years. The statistics refer generally to years ending on 31 March.

NUMBER OF SOCIETIES AND SHARES.—The number of societies in existence in 1955-56 was 72, of which 55 were permanent and 17 terminating. The number of permanent societies has shown little variation during the last ten years, but terminating societies have decreased markedly.

Permanent Societies.—The following table shows for each of the years 1951-52 to 1955-56 particulars of permanent societies, including data on number and value of investing and capital shares.

1951-521952-531953-541954-551955-56
Number of societies5655555555
    Investing Shares     
Number of shares541,625564,495603,463650,457678,553
Members holding26,86626,97427,09027,06026,751
Aggregate value£5,891,834£6,306,917£6,651,211£7,127,400£7,381,598
    Capital Shares     
Number of shares Members holding717,753 5,581803,829 5,702787,324 5,739809,855 5,702795,382 5,644
Aggregate value£1,768,028£1,878,759£1,937,957£1,999,192£2,136,231

At March 1956 the average value of each investing share was £10 18s., and the average value of such shares held by each member was £276. The comparative figures for capital shares were £2 14s. and £378.

Terminating Societies.—Although the number of terminating societies has declined, the total membership and value of shares continue to grow. Measured by these criteria, the size of the average existing society has therefore increased greatly in recent years. As stated earlier, one person may hold shares in several groups of a terminating society. The next table shows the progress of terminating societies during the years 1951-52 to 1955-56. It should be noted that the information pertaining to shares relates to investing or contributory shares, there being no capital shares in a terminating society.

SocietiesGroupsMembers Holding SharesInvesting Shares
NumberValue
 £
1951-5223296116,832602,4346,666,897
1952-5321308125,077677,9707,816,800
1953-5418317133,421768,4719,150,346
1954-5518341143,698897,63910,765,148
1955-5617366158.7321,071,56012,623,470

The average value per share in 1955-56 was £11 16s., and the average value of shares held per member was £79 11s. The figures for 1951-52 were, respectively, £11 1s. and £57 1s.

RECEIPTS AND PAYMENTS.—Following is a summary of receipts and payments for all societies during each of the five years 1951-52 to 1955-56.

£

1951-521952-531953-541954-551955-56
Receipts
Investors' subscriptions and capital shares2,592,2552,576,5542,829,9463,326,0443,749,539
Advances repaid2,992,1792,727,9183,081,2643,513,0923,546,006
Deposits1,930,1891,693,6582,069,8822,736,2512,695,824
Interest533,379568,737627,159686,539740,230
Other receipts404,720437,751465,562698,036602,718
    Total receipts8,452,7228,004,6189,073,81310,959,96211,334,317
Payments
Withdrawals622,391668,359685,971748,610947,770
Advances4,883,8404,497,5025,099,2436,417,6806,187,205
Expenses of management226,856216,803240,343269,815273,213
Dividends paid102,782105,030108,835111,178126,541
Deposits repaid1,964,4751,920,3222,029,1532,506,0052,636,042
Interest paid177,029185,536196,244230,563251,603
Other payments428,937363,811747,470785,293822,484
    Total payments8,406,3107,957,3639,107,25911,069,14411,244,858

In November 1952 the statutory limitation on maximum interest rates payable on deposits with building societies was raised, and in April 1954 a further increase was allowed in the rate for deposits of five years and upwards. These measures probably played an important part in the marked increase in deposits and advances during 1953-54 and 1954-55, but recently there has been a reduction in funds available for investment, with a consequent fall in the volume of advances to borrowers. From 1 June 1956 a new schedule of interest rates on deposits has been authorized. The ratio of loan repayments to advances was 60.5 in 1953-54, 54.7 in 1954-55, and 57.3 in 1955-56.

LOANS.—The number of borrowers and amount of loans outstanding at the end of each of the five years quoted were as follows. Advances on shares are excluded.

YearPermanent SocietiesTerminating SocietiesTotals
NumberAmountNumberAmount*NumberAmount

* Includes balance owing on premiums on loans.

  £ £ £
1951-5215,63612,555,35812,0867,318,47127,72219,873,829
1952-5315,21212,926,30512,7368,606,40027,94821,532,705
1953-5415,23813.536,97114,40910,143,43929,64723,680,410
1954-5515,39614,960,79816,77711,664,01332,17326,624,811
1955-5614,97315,759,27818,00614,125,26132,97929,884,539

The average amount owing by each borrower at the end of each of the five years is given below.

£

Class1951-521952-531953-541954-551955-56
Permanent societies8038508889721,053
Terminating societies606676704695784
All societies717770799828906

Particulars of loans granted during each of the last five years follow.

YearPermanent SocietiesTerminating Societies
By BallotBy AuctionPremiums
NumberAmountNumberAmountNumberAmount
 £ £ ££
1951-523,0702,830,6001,023940,1201,7651,138,262394,243
1952-532,3032,087,025803869,7641,2721,377,623433,947
1953-542,7932,753,753824862,7511,2601,386,504496,729
1954-553,0343,463,8401,0221,190,5461,4501,781,495679,500
1955-562,4162,745,4031,0491,229,9021,4382,025,900842,526

The totals for loans in the above table represent loans granted and differ slightly from the figures shown as advances in the table relating to receipts and payments, where the amounts refer to payments actually made in respect of loans. The average loan granted by permanent societies amounted to £1,136 and by terminating societies (ballot) £1,172 and (auction) £1,409. The average premium on auctioned loans, representing total interest payments over the period of the loan, was £586.

The tendency in recent years has been for premium rates to rise in sympathy with the longer average term for loan repayments. In 1952-53 the upward trend was checked, probably because of the discouraging effect of increased building costs, but during the last three years a pronounced rise seems to reflect the hardening of interest rates generally. The average premium rates during the last three years were: 1953-54, £35.8 per cent, 1954-55, £38.2 per cent, and 1955-56, £41.6 per cent.

Commencing with the year 1937-38, statistics of building societies were extended to include a classification of loans into (1) loans granted to finance the erection of new dwellings, and (2) loans granted to finance the purchase of dwellings already built. For the purposes of the statistics new dwellings are deemed to include those which have been built by the borrower during the twelve months preceding the granting of the loan. Particulars for 1955-56, with totals for earlier years, are given in the following table.

To Finance the Erection of New DwellingsTo Finance the Purchase of Dwellings Already BuiltFor Other and Unspecified PurposesTotals
No.AmountNo.AmountNo.AmountNo.Amount
  £ £ £ £
Permanent societies520870,9521,0891,371,003807503,4482,4162,745,403
Terminating societies—
  By ballot231346,231591688,460227195,2111,0491,229,902
  By auction313508,5299741,353,093151164,2781,4382,025,900
  Totals, all societies—
    1955-561,0641,725,7122,6543,412,5561,185862,9374,9036,001,205
    1954-551,2221,784,2022,9053,711,8531,379939,8265,5066,435,881
    1953-549501,169,4132,6312,972,2171,296861,3784,8775,003,008
    1952-539541,071,7562,2772,578,7621,147683,8944,3784,334,412
    1951-521,0541,123,6293,1002,891,5701,704893,7835,8584,908,982

The fall in loan authorizations for the latest year may be attributed, as mentioned earlier in this section, to a reduction in investment funds following a decrease in deposit receipts together with increased withdrawals.

It should be noted that loans advanced in 1951-52 for the purchase of dwellings were stimulated by the removal in 1950 of controls on the purchase price of property.

The considerable number of loans shown for other and unspecified purposes is partly due to the fact that some societies are unable to give the necessary classification, so that it may be taken that the foregoing table understates the number of loans actually granted for the erection or purchase of dwellings.

LIABILITIES AND ASSETS.—The liabilities and assets of building societies for each of the years 1951-52 to 1955-56 are given in the next table.

LIABILITIES £

YearTo Shareholders (Including Reserve Funds and Undivided Profits)DepositsAppropriations Not Taken Up, or in TrustTo Bankers and Other CreditorsTotal Liabilities
1951-5216,965,7993,805,0791,092,6681,192,98323,056,529
1952-5318,942,0313,675,750925,4861,145,87524,689,142
1953-5421,153,3413,891,2131,373,3491,283,83427,701,737
1954-5523,736,4454,357,9981,495,6481,449,58931,039,680
1955-5625,270,9684,755,4641,464,3741,233,05932,723,865

ASSETS £

YearAdvances on Mortgage*Advances on SharesOther Investments and AssetsCash in Hand and at BankTotal Assets

* Includes balance owing on premiums on loans.

1951-5221,119,623120,8521,619,212196,84223,056,529
1952-5322,735,885181,7481,585,668185,84124,689,142
1953-5425,344,661212,7801,906,124238,17227,701,737
1954-5528,499,228264,3192,061,542214,59131,039,680
1955-5630.035,351318,5212,133,083236,91032,723,865

The ratio of advances on mortgage to total assets has been at a uniformly high level during the last few years, the average figure over the last five years being 91.7 per cent.

33 D—JOINT-STOCK COMPANIES

EARLY New Zealand enactments relating to joint-stock companies were those of 1860. 1868, 1882, and 1903. For thirty years following the Act of 1903 no comprehensive revision of statute law relating to companies was made in New Zealand, and the essential provisions of company law remained substantially unaltered. In 1930 the Attorney-General appointed an advisory committee, including representatives of the business community and of the professions of law and accountancy, to act with the Law Draftsman in framing a new measure, which, in the form of the Companies Act 1933. came into force on 1 April 1934. In great part the measure was an adaptation of the Imperial Act of 1929 to suit the special conditions of New Zealand.

A noteworthy step in the history of company legislation was taken by the Companies (Bondholders Incorporation) Act 1934-35, which provided machinery for the incorporation of the holders of bonds issued by certain afforestation and other companies.

The position of certain investment companies in 1934 led to the appointment of a Commission of Inquiry and the passing of a novel series of legislative enactments designed to investigate their affairs and to protect the investors. The Acts passed comprised the Companies (Special Investigations) Act 1934; the Companies (Special Liquidations) Act 1934-35; and the Companies (Temporary Receivership) Act 1935.

The Government set up a committee in 1950 which considered the question of revising the 1933 Act. A draft Bill was introduced during the 1952 session of Parliament, and subsequently amended, being finally passed in 1955. The new Companies Act 1955 came into force on 1 January 1957.

A company to acquire legal entity must be incorporated, and under existing law incorporation is granted after the registration of the memorandum of association with the Registrar of Companies. A company incorporated overseas is not required to re-register in New Zealand, but must deliver to the Registrar of Companies for registration a certified copy of its instrument of constitution, as well as a list of its directors and the name of its authorized representative in New Zealand.

The Act of 1955 is substantially modelled on the United Kingdom Companies Act 1948 as far as that may properly be done having regard to New Zealand requirements and conditions. The new requirements are primarily designed to ensure that the annual financial statements exhibit a true and complete account of a company's affairs and transactions, and to this end additional items of information are called for in the accounts. A prescribed form of presentation is provided and comparative figures for the previous year are to be shown. Some of the new or altered provisions of the 1955 legislation are referred to below.

Certain incidental and ancillary objects and powers are implied in the memorandum of every company registered after the commencement of the Act. These objects and powers are set out in the Second Schedule to the Act.

The powers of dairy companies to engage in associated industries are extended.

Restrictions on the names of companies are extended, and the Registrar of Companies may refuse registration where a name contains or resembles a trade mark or which is otherwise undesirable.

A body corporate or its nominee is prohibited from being a member of its holding company.

Legal penalties are prescribed where a company prospectus contains false or misleading statements. This provision, among others, is modelled on a similar clause of the United Kingdom Act.

Provision is made for the establishment of a share premium account, which may be applied towards certain specified purposes. Power is given to both public and private companies (previously restricted to the former) to issue redeemable preference shares, and a new subclause provides that redemption shall not be taken as reducing the amount of the company's authorized share capital.

A proviso, which does not appear in the United Kingdom Act, enables shareholders, even after previous consent, to object to a variation of their rights if the company has failed to disclose material facts. The proportion of shareholders which may object has been reduced from 15 to 5 per cent.

Persons other than debenture holders and members of the company are to be permitted to inspect and obtain copies of registers of debenture holders.

An extraordinary general meeting may be requisitioned by one hundred members although they may hold less than one-tenth of the shares or voting power. In certain circumstances power is given to the Court to authorize one member to hold a meeting.

Public companies are to have at least two directors, and private companies at least one. A director of a public company may be removed by ordinary resolution before the expiration of his term of office. Every company is required to have a secretary, who may not act both as secretary and director. A register of directors' holdings of shares and debentures is to be kept (including its holding company and subsidiaries), and a statement of the aggregate remuneration of directors is to be furnished on demand. Private companies may dispense with the appointment of auditors, and are permitted to have employee members in addition to twenty-five other members.

Any overseas insurance company, whether limited by guarantee or by shares, may carry on insurance business (other than life insurance) if it keeps deposited with the Public Trustee a sum which, together with any deposit made in respect of that business under the Insurance Companies Deposits Act 1953, amounts to £50,000. This authorization was restricted by the previous legislation to overseas companies limited by guarantee and which were engaged in insurance business at 31 March 1934.

The general provisions as to the balance sheet and profit and loss account are set out in the Eighth Schedule to the Act, under which many new requirements are imposed. Fixed assets are to be distinguished from current assets and current liabilities from other liabilities. Separate headings are required for capital reserves, revenue reserves, and provisions (other than provisions for depreciation, renewals, or fall in value of assets). Material changes in these totals from one year to another are to be the subject of explanatory notes. Some of the items required to be stated separately are: share premium account, reissuable redeemed debentures, cumulative dividend arrears, contingent liabilities, investments by type, bank loans and overdraft, preliminary issue expenses, discount and commission on shares and debentures, and intangible assets.

If the directors consider that any of the current assets have a lower realisable value than the amount stated, a note must be made to that effect. Any overprovision created before 1 September 1955 is to be shown as a reserve.

In the profit and loss account the following items must be distinguished: investment income according to source, interest on debentures and other fixed loans, asset and tax provisions, total dividend payments, significant changes in reserves and provisions, amounts provided for loan and share capital redemption, and auditors' fees and expenses. Any material changes in the items shown in the profit and loss account as a result of unusual transactions or circumstances or to new methods of accounting are to be the subject of an explanatory note. In the case of holding companies, group accounts are required.

Certain provisions of the Act may be modified by Order in Council where a company or class of companies has an unusually large number of shareholders, and exemption from specified requirements of the Eighth Schedule (presentation of accounts) may be granted to any class of companies where deemed necessary in the public interest, subject to such conditions as may be prescribed.

The Finance Emergency Regulations 1940 (No. 2), which replaced similar regulations issued in the same year, prohibited the registration of companies, building societies, etc., or the increase of capital of existing companies, without the prior consent of the Minister of Finance. Amending regulations issued on 22 May 1946 removed this restriction in so far as it related to the formation of a company where the nominal capital did not exceed £10,000, or to an increase of capital of an existing company where the amount of the increase together with the amounts of other increases made within one year before that increase did not exceed £10,000. To give more effective control over new finance, a Capital Issues Committee was set up in April 1952. Further reference to this Committee will be found on page 864.

The table following gives a classification of new companies registered in 1955 according to the amount of nominal capital.

Amount of Nominal CapitalPrivate CompaniesPublic CompaniesOverseas Companies
NumberNominal CapitalNumberNominal CapitalNumberNominal Capital
  £ £ £
Under £1,000402156,665    
£1,000 and under £2,00057973,762    
£2.000 " £3,000401871,63012,000  
£3,000 " £4.000271846,480    
£4,000 " £5,000173714,115    
£5,000 " £6,0001991,004,580  210,000
£6.000 " £7,000113687,390    
£7,000 " £8,00057414,595    
£8,000 " £9,00056454,698    
£9.000 " £10,00030277,79919,000  
£10,000 " £15,0001681,741,300440,000  
£15,000 " £20,00037583,971  230,000
£20,000 " £50,000651,707,336141,575385,000
£50,000 and over132,066,004114,450,00051,480,000
Limited by guarantee  1   
    Totals2,56412,200,325194,542,575121,605,000

Eight private and eleven public companies were registered with authorized capitals of £100,000 or over. There is no information as to the amount of capital employed by overseas companies in New Zealand, which obviously must be only a small proportion of the total capital.

New registrations of private companies during 1955 fell by 83 compared with 1954, while the amount of authorized capital declined by £3,631,000. The decrease in number was the first since 1952, while a fall in capital had not occurred since 1949. A small decrease was not unexpected in view of recent economic trends.

In contrast to private companies the authorized capital of the 19 public companies registered during 1955 exceeded that for the previous year by over £3,000,000, of which a large proportion is to be employed in large-scale enterprises such as cement and fertilizer works.

The extent of changes in registrations and nominal capital of private companies between 1945 and 1955, expressed as percentages of the totals, is shown in the following table.

Per Cent

Amount of Nominal CapitalNumberAmount of Capital
1945195519451955
Under £1,00019.015.72.01.3
£1,000 and under £5,00062.455.529.325.4
£5,000 and under £10,00012.817.817.523.3
£10,000 and over5.811.051.250.0
    Totals100.0100.0100.0100.0

Compiled from published sources, the following summary gives the stated objects of new companies registered during 1953-1955. Because of possible inaccuracies in the source data, and the difficulty of precise classification by industrial group from the information available, the figures should be regarded as approximate only.

Industry Group195319541955
Agriculture and livestock production179228232
Forestry, hunting, and fishing91113
Mining and quarrying252735
Manufacturing—
  Food, beverages, and tobacco355135
Textiles, footwear, and apparel81136108
  Woodwork and furniture837155
  Machinery88127127
  Transport equipment87101122
  Other200299237
Construction215292316
Commerce—
  Wholesale and retail516720651
  Banks and other financial institutions87133200
  Real estate122174142
  Other 5 
Transport, storage, and communication110121131
Services—
  Community and business241351
  Personal109116108
  Other102214
Miscellaneous613818
    Totals2,0412,6852,595

In the following table a notable feature is the increase in both the number and aggregate nominal capital of new private companies registered since 1945. For 1955 the average authorized capital per new registration was: private companies, £4,758; public companies, £239,030.

YearPrivate CompaniesPublic CompaniesOverseas Companies
NumberNominal CapitalNumberNominal CapitalNumberNominal Capital

* Of this number one company was limited (as to capital) by guarantee.

  £ £ £
19457203,196,54118114,000372,100
19461,4148,102,471132,846,2508116,000
19471,7816,203,885233,257,0009428,650
19481,7297,319,98231924,1508950,000
19492,1236,626,32924832,30010523,600
19502,0478,225,87915365,900121,586,100
19511,9789,205,507282,824,60014777,360
19521,7049,307,087288,392,9501215,708,194
19532,01010,719,68012477,00019*31,837,328
19542,64715,831,35321*1,513,3001710,402,100
19552,56412,200,32519*4,541,575121,605,000

In comparing one year with another, as in the previous table, it should not be overlooked that re-registrations, on account of reconstruction of companies or for other reasons, are included. Such re-registrations of large companies may have a considerable effect on the year's total, so far as capital is concerned.

Companies Carrying on Business.—Statistics of companies carrying on business have been compiled on four occasions, for the years 1926, 1932, 1938, and 1947. For the two earlier years all companies appearing on the register at 31 December were included. In the 1938 and 1947 tabulations endeavours were made to eliminate those companies which were in liquidation or in a more or less moribund state. As there was often no positive evidence available to show whether or not a company was in active operation, the statistics probably include a small proportion of companies which were only nominally carrying on business.

A summary of the principal information available in respect of public and private companies at 31 December of the years shown is given below.

At 31 DecemberNumberNominal CapitalSubscribed CapitalPaid-up CapitalAmount Owing Under ChargesShareholders' Funds

* Not available.

  £££££
Private Companies
19263,43936,060,343****
19326,08348,363,106****
19387,39955,793,621*49,270,54420,460,066*
194711,35887,044,475*77,814,58525,909,668*
Public Companies
19261,63089,544,85858,807,51949,982,59316,181,126*
19321,73297,553,57871,021,73659,106,90215,453,164*
19381,626100,172,97873,170,41164,932,44617,477,939*
19471,381106,358,59081,543,53973,203,33716,426,440113,065,633

The main feature disclosed by the figures is the tendency in later years to obtain registration as a private company rather than as a public company. In 1926 there were twice as many private companies as public companies, but in 1947 there were nine private companies for each public company. From 1939 to 1947 inclusive 6,080 private and 136 public companies were registered.

The increases in capital do not necessarily measure the amount of new capital invested, since many registrations of new companies represent the conversion of previously existing individual or partnership concerns into companies, or the re-forming of a company by the liquidation of the existing company and the registration of a new one.

In addition to the public and private companies covered above, there were 250 overseas companies operating in New Zealand at 31 December 1947, compared with 212 in 1938. These had a total nominal capital of £224,807,042 (the corresponding 1938 figure was £195,934,469), but there is no information showing the amount of capital employed in New Zealand, which obviously must be only a very small proportion of the amount shown.

For detailed tables in connection with the 1947 inquiry into registered companies the 1950 Year-Book should be consulted.

Companies on Register, March 1956 and 1957.—The number of public companies on the register at 31 March 1956 was 1,493 and the number of private companies 26,032. At 31 March 1957 the corresponding figures were: public companies 1,502, private companies 28,929. These figures were supplied by the Registrar of Companies; no further particulars are available.

COMPANY FINANCIAL STATEMENTS.—In recent years the Reserve Bank has undertaken an analysis of the annual financial statements of a sample of public companies in New Zealand and publishes the results in issues of its Bulletin.

Chapter 34. SECTION 34—INSURANCE

34 A—LIFE ASSURANCE

THE statutory provisions affecting life assurance in New Zealand are in the main contained in the Life Insurance Act 1908 and its amendments of 1920, 1921-22, 1925, 1932, 1934, 1938, and 1950; the Inalienable Life Annuities Act 1910; and the Government Life Insurance Act 1953. Any association other than a friendly society which issues policies or grants annuities on human life in New Zealand comes within the scope of the enactments. Every life company must deposit with the Public Trustee cash or approved securities to a value related to the total amount assured by its New Zealand policies, the maximum deposit being £50,000. The aggregate value of such deposits at 31 March 1956 was £789,080.

In the case of composite offices, provision is made for the receipts of life and annuity business to be treated as a separate fund, and the Act safeguards the interest of the policyholder by making these funds available only for liabilities arising from such business.

Annual returns of life assurance are required to be deposited with the Minister of Finance, and it is from these returns that the statistical matter contained in this subsection has been compiled.

Fifteen life-assurance offices conduct business in New Zealand, and of these, four only are purely New Zealand institutions—namely, the Government Life Insurance Office, the Provident Life Assurance Co., the Dominion Life Assurance Office of New Zealand, Ltd., and the F.A.M.E. Insurance Co. Ltd.

The statistics here given relate exclusively to business transacted in New Zealand.

LIFE ASSURANCE: Ordinary and Industrial.—The progress of life assurance in New Zealand is illustrated by the following diagram, which shows the amount of new business transacted at intervals over a period of fifty-five years.

Eleven years' figures for new business, discontinuances, and amount in force for the combined departments (ordinary and industrial) are given in the table following.

£

YearPolicies IssuedPolicies DiscontinuedPolicies Existing at End of Year
194527,870,4688,298,596238,595,576
194637,085,4959,828,464265,852,607
194741,368,21810,897,884296,322,941
194842,022,87213,405,210324,940,603
194943,242,85614,730,369353,453,090
195049,342,77315,573,344387,216,172
195162,320,24016,530,514433,012,365
195265,213,79519,149,533479,083,831
195373,160,53723,136,940529,107,427
195488,155,49625,472,534591,790,390
1955100,041,69029,679,232662,152,847

During a period of monetary depreciation it is permissible to discount the significance of nominal increases in currency figures and, conversely, to attach more weight to decreases in such figures. The normal growth of population may also be expected to influence in an upward direction trends expressed both monetarily and otherwise. But, even after due allowance has been made for these factors, the progress of life insurance business over the past decade has been extraordinarily rapid. From 1945 to 1955 the face value of new business written has almost quadrupled, and the amount of cover in force has risen by 160 per cent. This expansion has doubtless been aided by the return of Service personnel to civilian life and the growth in public favour of such types of policies as group insurance and mortgage repayment. A further point is the concession, for income-tax purposes, allowed by the deduction from assessable income of premiums to a certain maximum value.

As the total discontinuances include surrenders and lapses, the general tendency is for discontinuances to follow the same trend as new business, although there is naturally a time lag of, normally, about two years. This trend is plainly apparent, although the increase in discontinuances is normally much smaller than the growth of new business.

ORDINARY LIFE ASSURANCE: Progress of Business.—A table showing the progress of business over a period of eleven years is given below. Annuities are excluded from these figures.

YearPolicies IssuedPolicies DiscontinuedPolicies Existing at End of Year
NumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual Premiums 
  ££ ££ ££
194544,21524,877,652823,51215,6756,671,405244,020492,447210,071,8736,546,205
194657,72433,383,5781,088,16816,9278,006,535287,942533,244235,448,9167,346,430
194760,81037,517,1151,237,24718,3938,978,114326,449575,661263,987,9178,257,228
194860,51638,472,0561,230,16821,03711,111,245395,311615,140291,348,7289,092,085
194958,68739,935,8551,290,33322,75512,337,166441,251651,072318,947,4179,941,343
195060,74246,093,2481,464,37923,35913,362,093469,780688,444351,672,22610,935,757
195167,54459,073,8201,929,43924,07814,332,947497,600731,914396,419,56512,367,888
195270,66361,470,1001,882,37825,50416,679,264577,563777,180441,210,40113,674,396
195375,82369,197,6452,146,07228,87820,398,532686,656824,125490,009,51515,133,813
195483,92083,699,1922,579,89029,25122,556,045772,546878,794551,152,66216,941,156
195583,39195,623,5292,771,06234,25126,404,3641,005,691927,934620,371,82718,706,528

In addition to the figure of £2,771,062 representing annual premiums payable for policies issued during 1955, an amount of £731,324 was paid during that year in the form of single premiums.

The average annual premium for each £100 of new business effected during 1955 was £2 17s. 11d., as compared with £3 1s. 7d. in 1954. There has been evident for some years past a tendency toward lower premium rates, which may indicate a growing preference for whole life policies or longer term endowment assurance. Group assurance as a substitute for, or supplementation of, private or national superannuation schemes, has also assumed relative popularity, but owing to lack of data it is unfortunately not possible to give an analysis of policies by types.

Annuity policies issued during 1955 (excluded from these tables) numbered 475, as against 278 in 1954. The corresponding annual amounts were £425,589 and £371,734. There were 3,462 annuities in force at the end of 1955, assuring an annual amount of £1,780,556.

A prominent feature of new insurances of recent years has been, with the exception of 1952, the increase in the average amount of the sum assured per policy. Average amounts per new policy and the increases over the preceding year were as follows.

£

YearAverage AmountIncrease

* Decrease.

194556318
194657815
194761739
194863619
194968044
195075979
1951875116
1952869-6*
195391344
195499784
19551,147150

The average face value of discontinued policies during 1955 was £771, while the average of policies in force at the end of the year was £669.

The total amount written off during each year represents about 4 per cent of the amount in force at the end of the year immediately preceding.

Particulars of Policies Discontinued.—The causes of discontinuances during the last five years are contained in the next table.

YearDeathMaturitySurrenderLapseOther CausesTotal
Number of Policies
19513,4847,1518,1814,80345924,078
19523,7017,1938,8185,08370925,504
19533,8668,03510,2726,12358228,878
19544,2448,28510,1015,93868329,251
19554,0489,06111,2357,0272,88034,251
Sum Assured (£)
19511,839,6461,804,6476,090,4762,967,4761,630,70214,332,947
19521,966,9971,912,0387,305,1233,626,0211,869,08516,679,264
19532,160,7902,464,1028,552,9534,617,9372,602,75020,398,532
19542,371,8692,427,3519,812,0405,187,0252,757,76022,556,045
19552,491,8032,660,87711,880,9046,498,4282,872,35126,404,363

During 1955 two large group policies were changed from an individual to a collective basis, resulting in the cancellation of over two thousand small single policies. This explains the marked rise in the number of discontinuances from other causes, the sum assured under this head not being affected to any great extent.

Reducing the sums assured in the previous table to a percentage basis, the results are as follows.

Per Cent

YearDeathMaturitySurrenderLapseOther CausesTotal
195112.812.642.520.711.4100.0
195211.811.543.821.711.2100.0
195310.612.141.922.612.8100.0
195410.510.843.523.012.2100.0
19559.410.145.024.610.9100.0

Revenue and Expenditure.—A statement of revenue and expenditure under the various heads illustrates the course of ordinary life insurance business in New Zealand during the past five years. Transfers between head offices and branches are excluded. The ratios of management expenses to premium income and to total revenue are also given.

19511952195319541955
£££££
Revenue
New and renewal premiums12,543,67613,749,57815,290,93917,079,27818,968,220
Consideration for annuities112,15281,08887,63392,737119,613
Interest, rents, etc.3,647,7143,923,2514,411,3555,136,9255,988,229
Other revenue3,1761,272491,07954,941
    Totals, revenue16,306,71817,755,18919,789,97622,310,01925,131,003
Expenditure
Claims by death and maturity4,633,8424,879,4615,782,7455,958,0766,302,898
Annuities122,390124,168126,921133,682138,384
Surrenders662,668823,692948,7041,026,1121,355,230
Cash bonuses28,26231,98732,19929,01126,245
Commissions1,016,1061,069,4551,186,0641,415,8271,510,026
Other management926,8841,026,2581,140,7081,296,2771,458,994
Taxes480,339534,533483,923613,894671,927
Other expenditure123,413113,18448,08381,73796,106
  Totals, expenditure7,993,9048,602,7389,749,34710,554,61611,559,810
Ratios
 Per CentPer CentPer CentPer CentPer Cent
Management expenses to premium income15.4915.2415.2215.8815.65
Management expenses to total revenue11.9211.8011.7612.1611.81

INDUSTRIAL ASSURANCE: Progress of Business.—In this class of insurance the premiums are payable at shorter intervals than three months, and provision is made for its control by regulation. Companies are required to deposit with the Minister of Finance forms of policy tables, rates of premiums, and other documents, and policies must contain only such conditions as have been approved by the Governor-General in Council. Restrictions are placed on the forfeiture of policies in default of payments or other requirements. There has been a long-term decline in the demand for industrial issues relative to ordinary policies, as the following figures exemplify. During the last decade particularly, the growing popularity of life assurance has not been shared to any extent by the industrial department, the number of policies issued in 1955 being 13,468 fewer than in 1945. Of the fifteen life offices, five also engage in industrial business.

A summary of the course of industrial assurance business from 1945 to 1955 is given in the following table.

YearPolicies IssuedPolicies DiscontinuedPolicies Existing at End of Year
NumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual Premiums
  ££ ££ ££
194543,3532,992,816170,21428,0571,627,191101,659543,36528,523,7031,625,010
194649,3693,701,917201,80430,3951,821,929109,271562,33930,403,6911,717,542
194743,7893,851,103184,13830,7901,919,770112,080575,33832,335,0241,789,600
194835,4063,550,816155,55233,7702,293,965126,523576,97433,591,8751,818,629
194933,8153,307,001152,85136,1532,393,204132,427574,63634,505,6731,839,055
195031,7143,249,525150,46833,7402,211,251124,142572,61035,543,9461,865,381
195129,8793,246,420150,02133,0582,197,567123,783569,43136,592,8001,891,619
195231,4973,743,695173,35936,5862,470,269138,033564,41837,873,4301,927,282
195331,9533,962,892184,22139,9832,738,408150,876556,38839,097,9121,960,627
195433,0134,456,304205,79841,6632,916,489159,815547,73840,637,7282,006,610
195529,8854,418,161204,56042,4353,274,868176,160535,18841,781,0202,035,009

The average sum assured under each policy of new business effected in 1955 amounted to £148 with an average annual premium of £6 16s. 11d. Corresponding averages for 1945 were £69 and £3 18s. 6d.

Particulars of Policies Discontinued.—A summary of the number of industrial policies and the corresponding assurances discontinued according to the several causes is now given in the form of a five-year table.

YearDeathMaturitySurrenderLapseOther CausesTotal
Number of Policies
19512,55119,0803,9347,35613733,058
19522,59121,7354,3177,83710636,586
19532,24625,0095,0147,6298539,983
19542,22826,4074,5548,3938141,663
19552,38227,2704,6807,99111242,435
Sum Assured (£)
1951115,844805,510368,333883,36924,5112,197,567
1952124,116915,376460,902962,0787,7972,470,269
1953112,6521,064,894592,036958,81910,0072,738,408
1954111,6551,166,888547,9401,081,3828,6242,916,489
1955127,7801,255,676618,4011,263,7739,2383,274,868

The amount written off in each year is proportionately greater in the industrial than in the ordinary branch. Of the insurance in force at the end of the previous year, 4.8 per cent of the ordinary became void in 1955, as compared with 8.1 of the industrial.

In the following table the sums assured for the various classes of discontinuances are expressed as percentages of the total discontinuances.

Per Cent

YearDeathMaturitySurrenderLapseOther CausesTotal
19515.336.716.840.21.0100.0
19525.037.118.738.90.3100.0
19534.138.921.635.00.4100.0
19543.840.018.837.10.3100.0
19553.938.318.938.60.3100.0

Revenue and Expenditure.—The several items of revenue and expenditure in industrial business are shown in the following five-yearly table, together with the ratios of management expenses to premium income and to total revenue. Transfers between head offices and branches are again excluded.

19511952195319541955
£££££
Revenue
Premiums1,880,8621,906,2001,938,2931,973,4742,002,025
Interest, rents, etc.499,967531,360570,074603,983639,395
Other revenue6791,605674554656
    Totals, revenue2,381,5082,439,1652,509,0412,578,0112,642,076
Expenditure
Claims by death and maturity1,045,3411,170,8471,322,5041,440,9101,540,988
Surrenders73,96883,207103,86597,836106,022
Commissions256,910263,332272,867280,406280,782
Other management272,415292,337316,819340,827357,812
Taxes46,13351,13443,88148,67251,985
Other expenditure16,74627,8611,0522,93530,767
    Totals, expenditure1,711,5131,888,7182,060,9882,211,5862,368,356
Ratios
 Per CentPer CentPer CentPer CentPer Cent
Management expenses to premium income28.1429.1530.4231.4931.90
Management expenses to total revenue22.2322.7823.5024.0924.17

The higher ratio of management expenses to premium income in the industrial branch is largely accounted for by the cost of renewal commissions on collection of premiums and the greater amount of office work involved. In the ordinary branch, commission (new and renewal) in 1955 was equivalent to 8.0 per cent of the premium income, and in the industrial branch to 14.0 per cent. Excluding commission, the ratio of management expenses to premium income was 17.9 per cent in the industrial branch, as against 7.7 per cent in the ordinary.

LIFE ASSURANCE DEATH RATES.—The following table shows for the period 1945-55 the death rate per thousand policies exposed to risk in each year. In computing these rates all policies which were in force for any portion of the year have been taken into account. The higher rates for the years 1945 and 1946 are mainly due to deaths from war causes.

YearDeath Rate Per 1,000 Policies
Ordinary Life AssuranceIndustrial Life AssuranceOrdinary and Industrial Combined
19457.436.026.69
19466.055.295.66
19475.044.624.83
19484.944.624.78
19494.704.404.56
19504.444.244.35
19514.614.234.44
19524.614.314.48
19534.533.774.22
19544.663.784.31
19554.214.124.18

LIABILITIES AND ASSETS.—The principal items in the balance sheets of life assurance companies are summarized below for the three latest years. Both classes of insurance are represented in the figures, which, as in the previous tables, relate to New Zealand business only. In the case of some companies other branches of insurance business are included.

Aggregate liabilities are first shown.

 195319541955
 £££
Paid-up share capital235,470236,487235,587
Life assurance and annuity funds135,645,067150,309,409164,763,423
Depreciation, reserve, and other special funds1,634,6711,722,5981,948,799
Claims admitted but not paid945,128952,3331,038,760
Other liabilities1,256,9021,917,9461,849,840
Totals139,717,238155,138,773169,836,409

The assets of the New Zealand branches at the end of each of the three years 1953-55 were as follows.

AssetsAmountProportion to Totals
195319541955195319541955
 £££Per CentPer CentPer Cent
Mortgages on property47,311,93556,854,20370,206,35233.8636.6541.33
Loans on policies4,103,4594,195,2534,820,0712.942.702.84
New Zealand Government securities42,101,21646,205,47744,560,62530.1429.7826.24
Securities of other Governments1,797,3691,658,959319,6401.291.070.19
Local authority securities30,929,18730,927,60232,332,20922.1419.9419.04
Landed and house property3,426,9413,756,9014,529,7912.452.422.67
Other investments5,469,7057,525,2688,919,9963.914.855.25
Outstanding premiums943,4401,066,5101,215,9630.680.690.71
Interest accrued, etc.1,149,4141,283,8591,254,3170.820.830.74
Cash1,082,475602,916759,7110.770.390.45
Other assets1,402,0971,061,825917,7341.000.680.54
    Totals139,717,238155,138,773169,836,409100.00100.00100.00

Mortgage securities were again the most favoured form of investment, holdings of Government and local authority securities showing a relative decline during the past few years. Other investments (chiefly company shares and debentures), although small in relation to the total, are also steadily gaining in popularity. These changes are possibly a result of the comparatively low yields obtained in recent years from the usual gilt-edged forms of investment.

For 1955 the average rate of interest earned on the life funds of both departments was £4 5s. 11d. per cent, compared with £4 1s. 11d. during 1954. This rate was calculated by taking the arithmetic mean of funds at the beginning and end of the year less half the amount of interest, etc., earned.

The following diagram illustrates the expansion that has taken place since 1925 in the assets of the New Zealand branches of life insurance companies. This, of course, is a natural consequence of the huge increase in the amount of business. As stated previously, receipts of life assurance and annuity business must be treated as a separate fund, and the interests of the policy-holders are safeguarded by the fact that these funds are available only for liabilities arising from such business.

The diagram also shows the trend in the class of security in which the funds have been invested. The most significant change since 1948, referred to above, has been the preference for mortgage investment, the proportion rising from 16.8 to 41.3 per cent during the seven-year period.

34 B—ACCIDENT INSURANCE

IN terms of the Accident Insurance Companies Act 1908, accident insurance policies may be issued by any association, whether incorporated or not, provided such association is not established under any Act relating to friendly societies. The principal classes of accident insurance transacted in New Zealand are as follows:

  1. Personal accident, covering accident, sickness, etc.:

  2. Employers' liability under statutory or common law:

  3. Motor-vehicle insurance, comprehensive and compulsory third-party risks cover.

Other important classes of accident insurance policies are in respect of plate glass insurance and fidelity guarantee insurance.

The Workers' Compensation Amendment Act 1947 provided for the compulsory insurance with the Government Accident Insurance Branch of the State Fire Insurance Office of all employers' liability insurances as from 1 April 1949. However, insurances with certain specified mutual insurance companies were exempted from the operation of the Act. Further reference to this transfer will be found in Sections 34D and 42. An amending Act of 1950, however, restored the right of insurance companies to undertake employers' liability insurance as from 1 April 1951.

In these statistics the data relate to the financial years of the companies which most closely approximate the calendar year. As the balance dates of some companies fall after 31 March, the 1948 and 1950 figures were affected to a small extent by the operation of the Act referred to in the preceding paragraph. The net effect was a reduction in the employers' liability insurance figures for 1948 by the amounts normally returned by such companies (with balance dates from April to June 1949), and an increase for the year 1950, when these returns (covering the years ended April to June 1951) again included figures for this class of insurance.

Information relating to deposits required from companies transacting accident insurance business is contained in the next subsection, which deals with the cognate subject of fire insurance.

REVENUE AND EXPENDITURE.—The number of accident insurance offices represented in the statistics for 1955 is 67, the head offices of the companies concerned being domiciled as follows: Great Britain, 25; Australia, 12; United States of America, 2; Hong Kong, 2; and New Zealand, 26.

Of the New Zealand offices only 11, including the State Accident Insurance Office, may be stated to be competitive in the ordinary sense of the term, the remainder having been formed by trade associations, etc., on a more or less co-operative basis. In the main an office of this latter type conducts one class of accident insurance business only according to the nature of the association with which it is connected.

The following table shows, for the years quoted, the principal items of revenue and expenditure. Premiums and claims are net—i.e., reinsurance transactions, whether effected locally or overseas, are taken into account.

YearNumber of OfficesRevenueExpenditure
PremiumsOther RevenueTotal*ClaimsCommissionSalariesOther ExpensesTotal*

* Excluding unexpired risks reserves.

 ££££££££
1945602,851,503109,8972,961,4001,545,468311,405315,110480,4802,652,463
1946603,270,9891107,6343,378,6231,666,256349,778359,236466,2942,841,564
1947613,916,468120,8204,037,2882,131,992420,013402,918505,9263,460,849
1948604,324,436146,8864,471,3222,509,5631471,459432,264571,4443,984,730
1949614,902,454151,9475,054,4012,972,171325,600530,221667,1884,495,180
1950625,816,553170,7465,987,2993,466,073369,181593,632781,6325,210,518
1951626,624,869205,6136,830,4823,956,106499,640745,270859,2856,060,301
1952617,965,339221,1658,186,5044,886,000617,067814,951884,5947,202,612
1953648,954,499228,9629,183,4615,313,175689,232969,9181,058,6118,030,936
1954679,918,054304,14710,222,2016,071,724778,7131,115,5941,090,6439,056,674
19556711,021,538356,07611,377,6147,070,602882,9151,235,7701,197,77910,387,066

Premium receipts in 1955 were 11.1 per cent above the 1954 figure, a large part of the increase being in the class of motor vehicle comprehensive insurance. Claims, however, were 16.5 per cent greater than in 1954. Expenses other than claims totalled £3,316,464, of which taxation amounted to £348,947. The unexpired risks reserves at the end of 1955 totalled £4,680,586.

A review of the expenses incurred in transacting accident insurance is contained in the table following. The fluctuations over a period of five years are shown in the form of percentages of revenue to expenditure under various heads. The claims experience during 1955 was slightly less favourable than the average of recent years.

Per Cent

YearClaims to PremiumsCommission to PremiumsSalaries to PremiumsOther Expenses to PremiumsTotal Expenses (Other Than Claims) to PremiumsTotal Expenditure to PremiumsTotal Expenditure to Total Revenue
195159.727.5411.2512.9731.7691.4888.72
195261.347.7510.2311.1129.0890.4287.98
195359.347.7010.8311.8230.3589.6987.45
195461.227.8511.2511.0030.1091.3288.60
195564.158.0111.2110.8730.0994.2491.29

Working expenses (excluding taxation) amounted to £2,275,386 in 1953, £2,594,892 in 1954, and £2,967,517 in 1955. The ratio of working expenses to premium income for each of the three years was respectively 25.41, 26.16, and 26.92 per cent.

ANALYSIS OF PREMIUMS AND CLAIMS.—In the next table particulars of premiums and claims for the three main classes of accident insurance are given for the last five years. Reinsurances effected outside New Zealand are not taken into account in the figures presented below.

£

YearEmployers' LiabilityPersonal AccidentMotor Vehicle ComprehensiveMotor Vehicle Third Party RisksOther FormsTotal
Premiums
19512,210,700507,9542,494,284810,504691,8316,715,273
19522,469,139581,0293,340,9271,023,759773,1098,187,963
19532,594,538659,7364,129,9121,163,106885,7009,432,992
19542,594,371739,5134,655,2861,339,7141,007,31110,336,195
19552,761,516868,2565,209,5151,428,8471,185,23911,453,373
Claims
19511,160,540185,6261,812,627523,997208,8413,891,631
19521,381,906215,8402,304,873622,327237,3594,762,305
19531,532,935228,1872,580,372817,272259,5825,418,348
19541,861,589283,3043,014,704795,867439,9926,395,456
19551,968,986301,4573,650,922824,321476,7197,222,405

Premiums and claims for motor vehicle third-party risks insurance relate to the years ended 30 June following those given.

Reducing the figures of each class for the years 1953-55 to a percentage basis, the following results are obtained.

Per Cent

Class of InsuranceClaims to PremiumsPremiums to Total PremiumsClaims to Total Claims
195319541955195319541955195319541955
Employers' liability59.0871.7571.3027.5025.1024.1128.2929.1127.26
Personal accident and sickness34.5938.3134.726.997.157.584.214.434.17
Motor vehicle comprehensive62.4864.7670.0843.7945.0445.4847.6347.1450.56
Motor vehicle third-party risks70.2759.4157.6912.3312.9612.4815.0812.4411.41
Other29.3143.6840.229.399.7510.354.796.886.60
All classes57.4461.8763.06100.00100.00100.00100.00100.00100.00

MOTOR VEHICLES INSURANCE (THIRD-PARTY RISKS).—The Transport Act 1949, which repealed the former legislative authority—i.e., the Motor Vehicles Insurance (Third-party Risks) Act 1928—requires, as previously, owners of motor vehicles to insure against their liability to pay damages on account of the death of or bodily injury to another person. The payment of the insurance premiums is made annually to Deputy Registrars of Motor Vehicles at the same time as the annual licence fee is paid. Owners of motor vehicles are required to nominate each year the insurance company with which the contract of insurance is to be made, and the contract is deemed to be complete on the payment of the premium.

Premium receipts and claims actually paid have been shown in the earlier tables, but the claims figures given later also show amounts on account of the estimated liability for claims still outstanding at 30 June 1956, which are necessarily subject to revision.

Premium rates were reduced during the war as a result of the decrease in claims brought about by the restricted use of motor vehicles. With the relaxation of controls and the subsequent spectacular increase in road usage, the claims figures have steadily mounted, resulting in progressively higher premium rates for the various classes of motor vehicles. The 1957-58 schedule includes the following: motor cycles, £2 2s.; power cycles, 15s.; motorcars and station wagons used exclusively for private purposes, £2 2s.; goods service vehicles, £3 10s.; public and private taxicabs, £20 and £10 respectively; omnibuses, from £29 to £31 (according to seating capacity); service cars, from £15 to £35 (according to seating capacity); trailers, 4s.; hearses and ambulances, £2 15s.; rental cars, £4; tractors, 8s.; dealers' motor vehicles, £2 16s.

A sum of 2s. 6d. for every contract of insurance is deducted for administration expenses, and the balance paid to the insurance company concerned.

The liability of the company does not extend to indemnify the owner against any claim made in respect of the death of (or injury to) (a) a passenger (other than a fare-paying passenger in a vehicle plying for hire); (b) any relative of the owner within the third degree of relationship (except in certain cases of school children travelling to or from school); (c) any employee, except where the accident occurs otherwise than in the course of employment.

The liability of any insurance company under any contract under the Act is limited to £5,000 (increased from £2,000 from 1 July 1951) in respect of any passenger in the motor vehicle concerned, and to £50,000 (£20,000 prior to 1 July 1951) for all claims made by or in respect of passengers carried for hire. Otherwise there is no limit as to amount.

The following particulars give the experience of the last five years, with a summary covering the ten years to 30 June 1956. It should be noted that the liability for outstanding claims is usually overestimated, and that the total claims for any particular year when finally settled may be expected to be somewhat smaller than the amounts now given. For instance, taking a period of five years, 1945-46 to 1949-50 inclusive, for which all claims have been settled, it is found that total premiums received were £2,180,744 and total claims paid were £1,839,721, a ratio of claims to premiums of 84.4 per cent. This latter figure refers to claims arising during the period under review, final disposal of some cases being delayed until 1954-55. The actual claims payments during the five years totalled £1,514,900, of which a proportion was on account of accidents occurring prior to 1945-46. From this explanation it follows that the ratios given below are also likely to be reduced in course of time particularly those for the most recent years.

£

Registration Year Ended 30 June—Total for Ten Years to 30 June 1956
19521953195419551956
Premiums received810,5041,023,7591,163,1061,339,7141,428,8478,311,575
Claims actually paid to 30 June 1956711,604848,522630,527518,662106,8745,023,730
Estimated liability for claims still outstanding at 30 June 195615,15041,650171,534554,0961,201,1281,989,108
Ratio per cent of claims paid and outstanding to premiums89.787.069.080.191.584.4

34 C—FIRE INSURANCE

IN the legislation dealing with insurance, four separate classes of fire insurance offices are distinguished—namely: (1) local insurance companies established within the limits of New Zealand; (2) foreign insurance companies established beyond New Zealand; (3) United Kingdom offices similarly established; and (4) mutual insurance associations. To these may be added the State Fire Insurance Office, established under a separate Act of Parliament.

Part XIV of the Companies Act 1933 required a minimum paid-up capital of £50,000 intact in the case of limited companies undertaking insurance business (other than life insurance) in New Zealand. A later provision, contained in the Finance Act (No. 3) 1934, allowed overseas companies limited by guarantee which were carrying on insurance business in New Zealand at 31 March 1934 to continue in such business if a sum of not less than £50,000 (including deposits required by law in respect of such business) was kept deposited with the Public Trustee. Part XIII of the Companies Act 1955, which came into force on 1 January 1957, re-enacts the provisions concerning local companies, but the authorization to engage in insurance business is extended to overseas companies limited by shares and regardless of date of commencement. Part II of the Insurance Companies Act 1940 provides that, in the case of an insurance company of doubtful solvency, inspectors may be appointed to investigate and report on the affairs of the company. Mutual associations are referred to specifically at a later stage in this subsection.

DEPOSITS.—Until the passing of the Insurance Companies Act 1940 no deposit was required from an insurance company incorporated in New Zealand in respect of fire and accident insurance business, unless the company acted merely as an agent for overseas underwriters, or had, since 1933, commenced motor vehicles third-party risks insurance business. Part I of this Act, as amended by the Insurance Companies' Deposits Amendment Act 1950, provided that any New Zealand company which, after the passing of the Act, commences in New Zealand any of the specified classes of business, must deposit with the Public Trustee in money the following amounts: in respect of fire insurance, £22,500; employers' liability insurance, £22,500 (by deposit of approved securities and not in money); and all other classes (except motor vehicles third-party risks insurance), £5,000. A New Zealand company which at the commencement of the Act was carrying on any of the classes of business referred to above was required to deposit approved securities to the value of £1,000, together with a further £1,000 for each complete £2,500 of premium income derived from each class of business during its last financial year. The amount of deposit may be adjusted according to increases or decreases in business. These provisions were continued by the 1950 amendment, referred to earlier, in the case of companies that were carrying on employers' liability insurance on 11 October 1940 and which have recommenced that class of business before 1 April 1952. The maximum deposit is that which would be paid by a newly established company.

The Insurance Companies' Deposits Act 1953 consolidated and amended the law relating to deposits. The foregoing provisions were continued, while mutual fire insurance associations conducting employers' liability insurance business, previously exempted, were required to deposit securities to the same value, as shown above, as other New Zealand companies engaged in this class of business prior to the 1940 Act. All future deposits were to be in the form of approved securities.

The maximum deposits of New Zealand companies are the same as those required from British companies commencing business in New Zealand. Agents operating in New Zealand on behalf of British underwriters are required to make deposits similar in amount to those specified for British companies with the exception of fire and employers' liability insurance, where agents of British underwriters are required to deposit £15,000. A foreign company, or an agent of foreign underwriters, before commencing business in New Zealand, must deposit in securities the sum of £50,000, which covers all classes of business other than life, marine, and third-party risks insurance. If such companies were carrying on business prior to 28 September 1922 the deposit required is £35,000.

The Finance Act (No. 2) 1933 required any company thereafter undertaking business in terms of the Motor Vehicles Insurance (Third-party Risks) Act 1928 to deposit the sum of £10,000. This requirement was in effect extended by the subsequent legislation, under which every company undertaking this class of business must, unless it has made the deposit required by the Finance Act, deposit £1,000, together with £1,000 for each complete £2,500 of premium income from such business. The maximum deposit is £10,000.

Life and marine businesses are not affected by the provisions mentioned in the preceding paragraphs. Deposits required from life insurance companies are dealt with under Section 34A.

The capital amount of deposits held by the Public Trustee at 31 March 1956, under the Insurance Companies' Deposits Act and amendments, on behalf of 72 companies and three associations, was £2,484,802, as compared with £2,441,956 at 31 March 1955.

Statistics of fire insurance are collected annually by the Department of Statistics. For 1955, statistics were collected from 51 offices carrying on business in New Zealand. The head offices of these were distributed as follows: Great Britain, 26; New Zealand, 15; Australia, 6; Hong Kong, 2; United States of America, 2.

LIABILITIES AND ASSETS.—The following table indicates generally the extent to which fire insurance offices have funds available to meet losses and liabilities. The figures refer to all departments of business underwritten. Funds of life departments are added for completeness, but by the Life Insurance Act 1908 (which follows the provisions of the United Kingdom statute on the subject) life funds must be accounted for separately, and form a security for life-policy holders which is not available for other classes of insurance transacted. Of the 51 fire offices, 19 also engage in life insurance business, but only 4 of these conduct such business in New Zealand. The amount of funds (other than life) in New Zealand and elsewhere is, it will be seen, approximately £1,333 million.

£

19551954 (Total)1953 (Total)
Overseas CompaniesLocal CompaniesTotal
Paid-up capital69,112,0976,186,01975,298,11670,893,79956,945,636
Reserves747,790,21622,076,196769,866,412708,635,475689,911,653
Other liabilities476,859,65411,018,043487,877,697467,186,084346,642,542
Totals1,293,761,96739,280,2581,333,042,2251,246,715,3581,093,499,831
Life funds1,750,924,31760,7261,750,985,0431,623,326,2681,245,548,893
Total liabilities (and assets)3,044,686,28439,340,9843,084,027,2682,870,041,6262,339,048,724

The following table gives the amount of assets in New Zealand as at the end of each of the last three years classified under various heads. The figures given include all investments in New Zealand securities and do not relate merely to the assets held by the New Zealand branches of the companies concerned. The assets of other departments—accident, life, marine, etc.—are also included.

£

Assets in New Zealand195319541955

* Not available.

House and landed property1,961,5342,258,8532,723,129
New Zealand Government securities10,284,40311,049,01911,260,252
New Zealand local-authority securities1,055,3101,171,7191,424,083
Company stocks and shares*2,314,9842,541,447
Mortgages, etc.773,3751,065,1061,530,761
Outstanding premiums1,768,8971,900,2312,225,246
Cash and other assets in New Zealand8,145,7266,428,0286,575,746
Total New Zealand assets23,989,24526,187,94028,280,664

SUMMARY OF BUSINESS.—The amount of business underwritten (new and renewal) has increased very substantially during the last few years. This figure for 1955 shows an increase of £263 million (10.76 per cent) over 1954, while compared with five years earlier the increase amounts to £1,183 million, or 77.6 per cent.

The average premium rate per £100 of insurance cover fell from 11s. 11d. in 1920 to 9s. 2d. in 1930 and 7s. in 1940. The present rate of 5s. 2d. is the lowest recorded, and points to the highly competitive nature of fire insurance business. This average is influenced not only by movements in premium rates, but also by the varying proportions of insurance risks which are rated at higher or lower premiums than the average. It should be explained that the figures in the table which follows relate to the business conducted with the insuring public. Reinsurance transactions are not taken into account.

195319541955
Amounts Underwritten
Gross amount of insurance cover in force in New Zealand on 31 December£1,913,910,248£2,137,024,396£2,368,360,954
Number of policies representing the foregoing1,198,5941,238,9151,288,103
Gross amount of new and renewal business underwritten during year£2,227,034,773£2,445,048,401£2,707,810,927
Number of policies representing the foregoing1,313,8551,363,5521,409,284
Premiums
Total gross premiums charged on business (new and renewal) underwritten during year£6,229,855£6,635,677£7,015,030
Percentage of gross premiums to total amount of business underwritten5s. 7d.5s. 5d.5s. 2d.
Total premiums (as shown above), less premiums refunded to insured other than to other offices£5,561,964£5,878,463£6,241,319
Losses
Total number of separate fire losses with which offices were concerned16,11318,77521,354
Gross losses£1,996,302£1,745,961£2,077,756
Percentage of gross loss to amount underwritten (new and renewal) during year (as shown above)0.090.070.08
Percentage of gross loss to total premiums less refunds to insured (as shown above)35.8929.7033.29
Average loss£124£93£97

The next table shows the position of premium income and fire claims during the period 1945-55. The figures shown correspond to those given in the previous table and refer to direct insurances only. The mounting costs of replacements are evident in the general upward trend in both premium income and claims paid. In addition, exceptionally severe losses were experienced in certain years, notably in wool store fires. In February 1955 one such loss approximated £300,000.

YearPremium IncomeFire ClaimsPercentage of Claims to Premium Income
 ££Per Cent
19452,300,348560,32924.4
19462,519,396881,50435.0
19472,851,2001,705,30759.8
19483,368,7351,011,42930.0
19493,603,568981,69727.2
19504,018,7601,114,53427.7
19514,672,9141,244,46726.6
19525,200,2312,058,54939.6
19535,561,9641,996,30235.9
19545,878,4631,745,96129.7
19556,241,3192,077,75633.3

REVENUE AND EXPENDITURE.—A statement of the total revenue and expenditure, both gross and net, of all offices is now given in respect of New Zealand business. The gross figures include reinsurance business accepted, while the net figures comprise insurances with the public, plus reinsurances accepted, and less amounts reinsured with other offices. The gross reserve for unexpired risks, it should be noted, is calculated on the assumption that it bears the same proportion to gross premium income as does the actual net reserve to the net premium income.

£

195319541955
GrossNetGrossNetGrossNet

* Not available.

Revenue
Reserve to meet unexpired risks as at beginning of year2,576,0001,333,0412,773,0001,46,9832,946,0001,555,851
Amount of fire premiums receivable during year6,756,1203,566,3007,151,8833,910,3167,351,6344,005,861
Interest and dividends on stock, mortgages, etc.126,439126,439143,602143,602148,738148,738
Rents43,86643,86650,29650,29641,48041,480
Other revenue18,24018,24021,60721,60728,31128,311
    Totals9,520,6655,087,88610,140,3885,587,80410,516,1635,780,241
Expenditure
Amount of fire claims incurred during year, including adjustment and other expenses of settlement, but less salvage2,474,808977,9041,810,778976,1332,800,8421,232,988
Fire Board levies336,370240,848406,953282,915412,551289,443
New Zealand Government taxes510,702470,330519,094471,429487,522393,545
Rents39,67438,06448,52247,10351,62749,629
Depreciation**19,68822,37748,33949,874
Allowances and commissions on premiums to agents, sub-agents, and others678,542252,101751,264277,889838,005268,965
Salaries and wages, including commissions on profits or bonuses765,332706,236854,567796,174893,951830,974
Other expenses of management458,016398,483421,274373,593461,451439,571
Reserve to meet unexpired risks as at the end of the year2,773,0001,461,8772,949,0001,612,5342,989,0001,627,598
Totals8,036,4444,545,8437,781,1404,860,1478,983,2885,182,587

The principal items of net revenue and expenditure for 1955 of the two classes of offices operating in New Zealand are contained in the next table.

£

Net RevenueNet Expenditure
PremiumsTotal*ClaimsSalaries and CommissionsTotal*

* Excluding reserves to meet unexpired risks.

Overseas companies2,371,0782,415,813793,556575,1392,093,461
Local companies1,634,7831,808,577439,432524,8001,461,528
Totals4,005,8614,224,3901,232,9881,099,9393,554,989

Excluding unexpired risks reserves, the excess of net revenue over net expenditure for 1955 of £669,401 compares with surpluses of £878,208 and £670,879 for 1954 and 1953 respectively.

The following table shows the percentage ratio of working expenses to premium income for the years 1951-55. It is sometimes contended that contributions to the fire-prevention authority are not a working expense, but should be added to the total of fire losses. While this view is not subscribed to in the compilation of the statistics, there is a definite relationship between the items, and this table shows the ratio both inclusive and exclusive of such levies.

Per Cent

Item19511952195319541955
Net working expenses (excluding taxes) to net premium income41.9643.4245.8746.0348.14
Net working expenses (excluding taxes and fire-service levies) to net premium income34.9536.4339.1138.8040.92
Gross working expenses (excluding taxes) to gross premium income (including reinsurances from other offices)31.1332.4533.7234.9936.81
Gross working expenses (excluding taxes and fire-service levies) to gross premium income (including reinsurances from other offices)26.2727.5728.7429.3031.20

The higher costs (mainly salaries and commissions) experienced in the period under review are reflected in the ratios for each year.

FIRES AND LOSSES.—In the following tables particulars are given of fire losses according to the causes of fires, extent of loss, etc., for the year 1955, the figures for earlier years being generally given for purposes of comparison. The data, which cover insured losses only, refer to fires which occurred during the respective calendar years, and in respect of which payments were made by the insurance company concerned not later than 31 March of the following year. These figures are therefore not comparable with the fire claims data given previously, which relate to the accounting years of the various offices.

For 1955, the number of separate fires given in previous years has been replaced by the number of fire loss payments, which includes an unknown number of multiple payments by insurance companies relating to the same outbreak. Experience has shown that the latter figure is greater by some 10 to 15 per cent than the actual number of fires.

A summary of fires and losses over the eleven-year period 1945-55 is given below. The relatively high loss figure for 1947 is attributable to a disastrous wool-store fire at Rongotai, the damage approximating £500,000. Another such loss occurred in February 1951 at Parnell, Auckland, while during 1952 losses approximating £600,000 were experienced in four large fires involving commercial premises, of which three occurred in Dunedin. The claims experience improved during 1953, although a severe loss (in the vicinity of £200,000) occurred in commercial premises at Invercargill. Serious losses during 1954 included that experienced at a meat freezing works at Petone in February and the destruction of the Franz Josef Glacier hotel in August. A further heavy loss of wool stocks occurred in February 1955 at a fire in a Wellington Harbour Board shed, the damage amounting to about £300,000. Higher property values are also reflected in the gradual upward trend in cover and losses during the period.

YearSeparate FiresBuildings, etc., AffectedGross Cover*Gross Loss

* On buildings, etc., affected.

† Fire loss payments.

‡ Not available.

 ££
19456,5196,55914,838,243639,372
19466,9397,00612,730,169764,392
19477,9037,96117,103,4361,599,822
19488,9278,95821,468,138948,660
19499,2689,30521,346,440856,177
195010,17810,21222,195,8691,029,945
195111,66311,69727,415,0241,517,992
195212,60212,63837,033,9381,716,450
195314,24614,28639,936,0361,650,390
195416,56816,59749,175,5801,525,866
195520,60050,048,6482,058,067

The average insurance claim paid for material fire damage per head of population (including Maoris) was 16s. 1d. in 1953, 14s. 7d. in 1954 and 19s. 3d. in 1955.

The total fire wastage is, of course, greater than the foregoing figures reveal, to the extent of the uninsured loss. This unknown figure is assessed by the fire authorities at 15 per cent of the insured loss, and on this assumption the 1955 property loss in New Zealand through fire would have amounted to £2,367,000.

The classification by fire districts which follows is based on the schedules to the Fire Services Act 1949 which set out in full the districts (and their status) originally constituted under the Act. Additions, deletions, and alterations in status are periodically gazetted. The administrative authority appointed by the Act is the Fire Service Council, responsible to the Minister of Internal Affairs.

Type of Fire DistrictNumber of Fire Loss PaymentsGross Amount of Insurance Cover on Risks AffectedGross Amount of Loss Paid on Risks AffectedPercentage of Loss Paid to Amount at Risk
 ££Per Cent
United urban fire districts7,22923,869,636970,9614.07
Urban fire districts9,53219,312,192640,7953.32
Secondary urban fire districts1,2031,734,378127,7397.37
Remainder of New Zealand2,2874,454,509308,3936.92
Floating risks34677,93310,1791.50
Totals20,60050,048,6482,058,0674.11

The relationship between the number of payments and loss incurred is fairly closely sustained for the main types of district; 81.4 per cent of payments relating to fires which occurred in urban (including united urban) fire districts, the loss amounting to 78.3 per cent of the total.

Causes of Fires.—Particulars regarding causes of fires are contained in the following table which covers the years 1953 to 1955.

Cause of Fire195319541955
Number of FiresAmount of LossNumber of FiresAmount of LossNumber of Fire Loss PaymentsAmount of Loss
  £ £ £
Electricity3,219150,2323,77888,0114,838186,589
Gas2335,0802764,78937814,805
Chimneys and flues65734,19155322,52568534,391
Fireplaces and stoves5,10382,2795,76571,2127,162125,622
Smoking and matches2,210109,2432,56236,5353,34167,568
Inflammable spirits and materials347150,08919423,11540149,492
Outside causes25121,69144619,19452755,125
Arson and incendiarism3458,3013714,0074261,724
Other specified causes56839,49851927,379669132,067
Unknown causes1,624999,7862,4381,219,0992,5571,330,684
    Totals14,2461,650,39016,5681,525,86620,6002,058,067

The actual cause of many fires is not easily ascertainable, especially in cases of total, or near-total loss, where evidence as to origin is obliterated. This accounts for the high proportion of loss due to unknown causes and for the fact that the average loss payment is much greater in these instances. During 1955 the average payment for specified causes was £40, while the average for the unspecified group amounted to £520.

The Fire Services Amendment Act 1952 provides that the Minister of Internal Affairs may appoint any person to hold an inquiry into any fire and the steps taken to deal with it, whether the fire occurred before or after the commencement of the empowering section. Statutory authority had previously existed for coronial inquiries into fires of suspicious origin until the passing of the Coroners Act 1951.

Extent of Loss.—The next table gives particulars of fire losses during the years 1953 to 1955, classified according to the amount of loss. The vast majority of fires cause only minor damage. During 1955 payments of less than £10 accounted for 63.7 per cent of the total number, but only 2.6 per cent of the total loss sustained. The corresponding ratios for losses of under £100 were 92.4 and 10.0 per cent. At the other end of the scale the relatively small number of fires of £5,000 and over is responsible for the bulk of the insured losses.

Loss Category195319541955
Number of FiresAmount of LossNumber of FiresAmount of LossNumber of Fire Loss PaymentsAmount of Loss
£ £ £ £ £
Under 109,48237,69910,98144,07813,11853,794
10 and under 252,53238,2823,00744,9323,83356,932
25 and under 1001,28359,5581,52369,8562,08895,371
100 and under 1,000702243,431801269,6811,205407,421
1,000 and under 2,000111152,317145206,424191259,915
2,000 and under 5,00080226,01976229,169114332,119
5,000 and under 20,00046395,53728250,57943423,043
20,000 and over10497,5477411,1478429,472
    Totals14,2461,650,39016,5681,525,86620,6002,058,067

Class Groups.—Losses have been classified in broad groups according to the nature of the risk, the figures for the years 1953-55 being presented in the next table. Fires in private dwellings accounted for 82.8 per cent of the total payments during 1955, but the proportion of loss sustained was only 29.2 per cent. It should be noted that the “contents,” where insured, are included in the various class groups. Consequently the total for the houses and flats group is swollen by the numerous small claims on account of damage to personal effects, etc., the actual building not being affected by the fire in many instances. The miscellaneous risks group also includes those cases where a fire has affected two or more buildings, which individually are classifiable into more than one of the other groups shown in the table, or, in some instances, single buildings housing occupiers of differing occupational groupings.

Class Group195319541955
Number of FiresAmount of LossNumber of FiresAmount of LossNumber of Fire Loss PaymentsAmount of Loss
 £ £ £
Private houses and flats, boarding-houses, etc.12,327562,96714,046505,20817,056600,684
Hotels and restaurants39157,43748569,90659678,896
Offices and public buildings  29118,13536946,923
Theatres and entertainment places4418,7135552,51917753,353
Bulk stores and warehouses8570,54867216,063117199,461
Shops404124,58342292,972614183,904
Factories and industrial risks440341,602542482,344839587,828
Farm risks (other than dwellings)11531,54116638,48224247,758
Miscellaneous (including unclassified)190426,0928128,92510433,639
Floating and travelling risks25016,90741321,312486225,621
    Totals14,2461,650,39016,5681,525,86620,6002,058,067

MUTUAL INSURANCE ASSOCIATIONS.—Mutual associations are governed by the Mutual Insurance Act 1955, which allows two hundred or more owners or occupiers of isolated or farm properties to subscribe to a declaration, and form themselves into a mutual association to insure against loss to an amount in the aggregate of not less than £200,000. The Act permits these associations to conduct accident business in addition to fire insurance. Such associations effect insurance on the premium note principle, and accept premium notes to be assessed for losses in the proportion of the total amount of such notes. The amount of a member's premium notes limits his liability. As stated in the section relating to deposits, mutual insurance associations carrying on employers' liability insurance business are now required to deposit approved securities to a specified value with the Public Trustee.

The Mutual Insurance Regulations, gazetted in 1956, permit these associations to carry on additional types of insurance (other than life insurance).

Summarized figures for the three associations formed under the Act appear below.

£

Year Ended 31 MarchNet Premium IncomeTotal Net IncomeNet ClaimsReserves and FundsAssets*
FireAccidentFireAccident

* Including premium notes.

195257,73371,094137,76010,14432,032166,5801,165,647
195369,96175,915154,64011,93438,339181,0481,375,721
195473,53876,163160,02111,64634,192197,0821,541,644
195581,40687,634180,88218,77040,943213,7331,753,106
195690,44299,517201,74726,12952,231218,0621,790,941

The mutual fire-insurance associations were included in the list of mutual companies which were exempted from the operation of the Workers' Compensation Amendment Act 1947, which provided for the placing of all employers' liability insurance with the State Accident Insurance Office.

FIRE BRIGADES.—At 31 March 1957 there were 232 fire brigades under the administrative authority of the Fire Service Council, of which 23 were staffed with full-time personnel numbering 120 officers and 343 men, as well as 135 auxiliaries.

The remaining 209 brigades were manned by 3,520 volunteers.

34 D—STATE INSURANCE ACTIVITIES

STATE LIFE ASSURANCE.—The Life Insurance Department of the New Zealand Government was founded in 1869 at a time when New Zealanders had comparatively poor facilities in regard to life assurance. Payment of all policies with the State Office is guaranteed by the Government. Industrial assurance is not transacted. The administration of the Department's affairs is regulated by the Government Life Insurance Act 1953, a consolidation of the Act of 1908 and its amendments.

The total income of the Department for 1955 was £4,692,546, of which premium income amounted to £3,566,554, annuity purchase money £32,439, and interest, rents, etc. (net) £1,093,553.

During the year 1955 payments were made under the following heads: matured policies (including bonus additions), £617,901; claims by death (including bonuses), £389,838; annuities, £66,685, surrendered policies and bonuses cashed, £324,880; commission, £296,888; other management expenses, £220,066; rates and taxes, £85,052; and other expenditure, £31,759.

Income and expenditure figures of the Government Life Insurance Office are now given for each of the five years 1951-55.

YearPremium Income (Including Purchase of Annuities)Total IncomeManagement ExpensesTotal ExpenditureRatio of Management Expenses to Total IncomeRatio of Management Expenses to Premium Income
 ££££Per CentPer Cent
19512,207,1232,900,388334,0251,497,99511.5215.13
19522,425,8653,174,719378,9811,536,88011.9415.62
19532,807,1293,640,500417,3151,750,27911.4614.87
19543,171,9284,114,760478,9911,890,28111.6415.10
19553,598,9934,692,546516,9542,033,06911.0214.36

Figures showing the progress of the Department are contained in the next table. Annuities are excluded.

YearNew BusinessPolicies DiscontinuedPolicies in Force at End of Year
Number of PoliciesSum AssuredAnnual PremiumsNumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual Premiums
  ££ ££ Per CentPer Cent
195115,80412,276,040297,9384,8492,779,51866,622159,41680,166,9001,892,067
195219,19715,326,325348,1985,2903,187,08879,209173,32392,306,1372,161,056
195319,54417,186,512384,3235,7133,662,83386,514187,154105,829,8162,458,866
195421,79320,146,054453,4766,2394,359,936105,724202,708121,615,9342,806,617
195522,49422,160,670469,1656,7044,937,385121,110218,514138,839,2193,154,671

Continued progress was made during 1955, new policies written showing an increase of 3.2 per cent over the previous year. The average sum assured per policy was £879 in 1953, £924 in 1954, and £985 in 1955. In addition to the total sum assured at the end of the year, accrued reversionary bonuses amounted to £6,627,600. Immediate, deferred, and contingent annuities totalled £958,629, representing 624 policies.

The Department's balance sheet as at 31 December 1955 showed that the total assets amounted to £28,546,057, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the two preceding years for purposes of comparison.

Class of InvestmentAmountProportion to Totals
195319541955195319541955

* Mainly due and overdue premiums and interest, and interest accrued.

 £££Per CentPer CentPer Cent
Mortgages on freehold property7,919,0519,790,88711,922,95633.7337.9741.77
Loans on policies869,796888,256991,3843.713.443.47
Government securities8,044,9808,100,6808,186,75434.2631.4128.68
Local authority securities5,549,6415,724,1415,694,21223.6322.1919.95
Landed and house property587,800643,187857,5202.502.493.00
Miscellaneous assets*483,161640,431884,4622.062.503.10
Cash in hand on current account, and on deposit26,893 8,7690.11 0.03
    Totals23,481,32225,787,58228,546,057100.00100.00100.00

Assurance, annuity, and endowment funds, apart from special reserves of £565,000, amounted to £27,572,824, an increase (the largest ever recorded) of £2,659,477 over the corresponding figure at the end of the previous year.

STATE ACCIDENT INSURANCE.—In the year 1901 the Government Life Insurance Office opened an Accident Branch. On 1 January 1925 the accident business was transferred to the control of the State Fire Insurance Office. General accident business was undertaken, but the branch was opened more especially to conduct insurance under the Workers' Compensation Act. In recent years other forms of accident insurance have contributed on an increasing scale to the premium income of the Office. The main classes transacted are employers' liability, personal accident, public risk, motor comprehensive, third-party risks, plate glass, and fidelity guarantee.

General Business.—A summary of revenue and expenditure during the last five years is contained in the following table.

YearRevenue*Expenditure2Ratio of Claims to Earned PremiumsTotal Assets
PremiumsTotalClaimsWorking ExpensesTotal

* Excluding reserves for unearned premiums.

 £££££Per Cent£
1951867,911900,677515,564146,442716,04472.61,591,481
19521,025,5781,066,108681,059190,906930,22873.71,722,029
19531,128,3601,154,077739,811242,5461,044,41868.72,015,217
19541,234,0231,264,989804,899270,8711,140,00868.22,325,876
19551,344,1001,417,207971,419278,5021,356,90475.32,330,383

The ratio of working expenses to earned premiums in 1955 was 20.8 per cent, compared with 22.0 per cent in the previous year. However, the claims experience during 1955 increased by 7.1 per cent, several large common law claims under employers' and public liability contributing to the increase.

The total assets at 31 December 1955 included £1,348,832 invested in Government securities. Reserves and Funds totalled £1,383,156.

Employers' Liability Insurance Account.—The Workers' Compensation Amendment Act 1943 made it obligatory for an employer to insure against his liability to pay compensation under the principal Act.

From 1 April 1949 all employers' liability insurances were required to be placed with the Government Accident Insurance Office. This provision was contained in the Workers' Compensation Amendment Act 1947, which at the same time exempted, subject to certain conditions, the employers' liability insurance business of certain specified mutual insurance companies from the operation of the Act. Approximately 95,000 employers were insured under the fund in 1950. This position obtained until 1 April 1951, the Workers' Compensation Amendment Act 1950 having restored the right of insurance companies to participate in this class of insurance.

The requirements of the Act and a statement of the experiences of the Account during the period of operation have been given in some detail in previous issues of the Year-Book. The Fund has been terminated, and the assets, which at 31 December 1952 amounted to £490,147, transferred to the Industrial Welfare Deposit Account, controlled by the Treasury, to be held for the purposes of rehabilitation of injured workers and accident prevention in industry. Outstanding claims at the above date totalled £93,163, and provision for taxation amounted to £90,738. The State Office continues to handle the remaining claims, now few in number, the cost being recovered from Treasury.

The 1950 amending Act established the Workers' Compensation Board for the general administration of the Act. Particulars of the functions of the Board and other related matters are contained in Section 38F of this volume, which reviews generally the subject of workers' compensation.

STATE FIRE INSURANCE.—The New Zealand State Fire Office was the first competitive State fire insurance office in the world, and opened for business on 4 January 1905 with a borrowed capital (long since repaid) of £2,000. The income of the Office in its first year was £13,135.

Marine insurance has been undertaken since 1947.

At the end of 1936 the bonus rebates then in existence were converted into permanent premium-rate reductions, a new series of bonus rebates being instituted at the same time. On 1 March 1944 premium rates on wooden buildings were further reduced and, in addition, bonus rebates were once more converted into permanent premium-rate reductions, a further series of 10 per cent on wooden risks and 15 per cent on brick risks being granted at the same time. This series was increased on 1 November 1947 to 20 per cent on renewals on both wooden and brick risks. As from 1 October 1949 a rebate of 10 per cent was granted on new business, while the rebate on renewal business was increased to 25 per cent on 1 January 1950, with a further increase to 33 1/3 per cent as from 1 January 1951. On 1 January 1954 the bonus rebate on the majority of dwelling risks was increased for the first year from 10 per cent to 33 1/3 per cent, and for the jubilee year of 1955 an additional 10 per cent rebate was allowed on all renewal policies.

Premium income advanced by £61,011 during 1955, while losses also showed a substantial increase of £46,224.

The apportionment for taxes was £33,578, while the net surplus fell from £67,700 in 1954 to £29,545 in 1955.

£

YearNet Premium IncomeTotal Net Income*Net Losses1 Total Net Expenditure*Accumulated FundsTotal Assets

* Excluding reserve for unearned premiums.

1951312,099415,97281,768348,3231,659,7101,999,143
1952375,801457,248114,046389,0701,727,8881,971,491
1953438,650528,79986,074433,8281,822,8602,051,114
1954510,091599,475126,473496,0551,926,2802,194,153
1955571,102661,950172,697601,8991,986,3302,330,383

The percentages of various classes of expenditure to earned premiums and total income are given below.

Item195319541955

* For comparative purposes the Jubilee Year rebate is not included.

Ratio of claims to earned premiums21.126.731.9
Ratio of working expenses to earned premiums52.751.3 47.9*
Ratio of Fire Service Council levies to earned premiums8.89.29.0
Ratio of Government taxes to total income14.311.65.7

EARTHQUAKE AND WAR DAMAGE INSURANCE.—The Earthquake and War Damage Act 1944, which came into force on 1 January 1945 (repealing the War Damage Act 1941), provided for both compulsory and voluntary insurance against these two classes of risks. By the Act an account—the Earthquake and War Damage Fund—was established, into which all moneys received are paid, the Fund being administered by a Commission. All property insured against fire is deemed to be insured to the extent of the indemnity value against earthquake and war damage. Premiums at the rate of 1s. for each £100 of insurance cover are collected by the insurance companies and paid into the Fund (less commission of 2 1/2 per cent). During the war premiums levied under the original Act were collected by the companies without recompense.

The Act provides for both compulsory and voluntary insurance against earthquake and war damage. Under the compulsory provisions of the original Act all property insured to any amount under any contract of fire insurance with an insurance company is deemed to be insured to the same amount against earthquake damage and war damage. An amending Act passed in 1951, however, provides that where the contract of fire insurance provides for the settlement of the claim upon the basis of the replacement value, the compulsory earthquake and war damage insurance will be for the amount of the indemnity or present value only. If the present value is certified by a registered architect or a registered valuer, the earthquake and war damage premium will be charged on the amount so certified. Under the voluntary provisions of the Act any person having an insurable interest in any property may make application to the Commission for earthquake or war damage insurance, and a contract may be made for the insurance of any property that is not insured under the compulsory section of the Act, or for the insurance to an additional amount of any property that is so insured.

Advances may be made from the Consolidated Fund if at any time the amount in the Earthquake and War Damage Fund is not sufficient to meet the claims thereon.

“Earthquake damage” is defined as damage occurring as the direct result of earthquake or of fire occasioned by or in consequence of earthquake. It also includes damage occurring as the direct result of measures taken under proper authority to avoid the spreading of, or otherwise to mitigate the consequence of, any such damage. In addition to damage occurring as a direct result of action by the enemy, “war damage” included damage occurring as the direct result of measures taken in combating the enemy or precautionary or preparatory measures taken under proper authority with a view to preventing or hindering any enemy or anticipated enemy action. It also includes accidental damage occurring as the direct result of any explosion or fire which involves any explosives or munitions, etc., required for war purposes.

In the last three financial years the number of claims on the Fund was 457 in 1953-54, 86 in 1954-55, and 125 in 1955-5.

During the financial year 1949-50 an extension of the scheme was instituted to provide some measure of protection to the insured against storm and flood of an abnormal or widespread nature. Finance is provided by crediting 10 per cent of the premiums compulsorily collected under the Act to a special Disaster Fund, without further liability on the Earthquake and War Damage Fund. During the year ended 31 March 1956, 284 storm and flood claims were received, compared with 414 in 1954-55, and 381 in 1953-54.

On 1 November 1954 the definition of disaster damage was extended to include volcanic eruption, and authority was given to the Commission to accept insurance against landslip. This latter type of cover does not apply automatically.

The Earthquake and War Damage Regulations 1956, which came into force on 1 June 1956 consolidated and amended the Earthquake and War Damage Regulations of 1944 and subsequent amendments. The amount of the franchise (proportion of loss to be borne by the insured) was fixed for all cases as one per cent of the loss but not less than £10 where the loss is less than £5,000, and £50 where the loss exceeds £5,000. The franchise may be fixed at a higher rate where the property is more than normally susceptible to damage.

The following is a comparative statement for the last six years of the operations of the Earthquake and War Damage Act, together with a statement showing the position from the inception of the Fund to 31 March 1950.

£

19 Dec. 1941 to 31 Mar. 19501950-511951-521952-531953-541954-551955-56

* From commencement in November 1949.

Income—
  Premiums—
  Earthquake and war damage6,606,743631,982754,127860,215939,1091,064,5691,172,894
  Storm and flood24,15870,62883,55395,426104,288118,323129,302
  Interest812,502192,871220,585258,090309,497359,723417,169
    Totals7,443,403895,4811,058,2651,213,7311,352,8941,542,6151,719,365
Outgo—
  Claims—
  Earthquake and war damage26,33319,3414,04489312,1962,0934,554
  Storm and flood6,6061,9869,87522,36427,95328,40921,496
  Salaries and expenses of management33,9303,9424,6984,6615,5856,1055,893
  Discount to insurance offices67,89517,65220,89223,83126,02629,53832,174
  Exchange adjustment339,525      
    Totals474,28942,92139,50951,74971,76066,14564,117
Surplus6,969,114852,5601,018,7561,161,9821,281,1341,476,4701,655,248
Earthquake and War Damage Fund6,969,1147,738,3698,686,0069,773,26810,974,13812,354,39413,892,456
Disaster Fund16,822*83,305154,424229,144309,408405,623522,809

The item "exchange adjustment" of £339,525 was the depreciation in the New Zealand value of the Commission's overseas funds as the result of the alteration in the exchange rate to parity with sterling which came into operation during 1948.

Chapter 35. SECTION 35—INCOMES AND INCOME TAX

Table of Contents

INCOMES AND TAX ASSESSMENT.—A system of annual statistics from the particulars on the income-tax returns was inaugurated in 1923 and was continued up to and including the income year 1930-31, but was then discontinued for reasons of economy. The compilation was later resumed, commencing with the income year 1933-34, but following the 1940-41 tabulation it was found necessary to suspend activities in this connection owing to shortages of staff, etc., arising from war conditions. The compilation of these statistics was again resumed commencing with the income year 1945-46.

These statistics are based on a system of estimating from a sample consisting of approximately 10 per cent of the total number of assessments. There is, in addition, a complete coverage of all incomes over a certain limit. The selection of the sample was governed principally by considerations of administrative convenience. All assessments issued to persons whose surnames commenced with one of the three chosen letters of the alphabet were included in the sample. Three letters of medium size in regard to numbers of assessments were adopted in order to spread as evenly as practicable the work of preparing the assessments for the statistical compilation.

Other than the provision for a full enumeration of all incomes over a certain limit (£4,000 for the 1953-54 income year), no direct attempt was made to stratify the sample by size of income, or any other factor. While it would have been desirable from some angles to have increased the proportional representation of the sample as the income groups ascended the frequency distribution scale, this would have impaired the administrative simplicity of the scheme of sampling adopted. The use of an overall 10 per cent sample ensures adequate coverage of all income groups sampled, but the numbers yielded are, in the lower income groups, more than are actually necessary to give reliable results.

The use of the sampling method explains the “rounded-off” figures which are shown for the statistics in the tables which follow. In some cases this process of rounding-off results in the total figure given disagreeing slightly with the aggregate of the component items.

The figures are given to the nearest ten for numbers of assessments, etc., and to the nearest ten thousand for the amounts columns. These units were adopted to lessen the difficulties associated with the rounding-off of the figures. It is not intended to imply that the estimates are regarded as having a degree of accuracy as high as the units in which the results are expressed.

Information concerning the system of income tax in New Zealand is given earlier under the heading of “Taxation” (see pp. 801-807).

The returns from which these statistics are compiled are required from all taxpayers. In addition, whether taxpayers or not, all taxable companies, and taxable public or local authorities and all individuals engaged in any profession, trade, manufacture, or undertaking carried on for pecuniary profit, were required to furnish returns. All individuals with incomes of £300 and over were under the same obligation. As far as individuals are concerned, the statistical compilation is, with the exception of the table which gives estimates of the numbers of farming and business incomes under £300, limited to taxpayers and to persons whose returnable incomes exceeded that amount.

The reference to individuals whose returnable incomes are £300 or over should not be interpreted as meaning that there is a complete coverage of incomes over that amount. Certain types of non-assessable income, including war pensions and social security monetary benefits, other than the universal superannuation benefit, are excluded from the returns, and are therefore completely omitted from these statistics.

It is estimated that in the 1953-54 income year, 9,500 individuals who were engaged in farming, private trading, etc., had returnable incomes of less than £300. Their incomes were distributed as follows.

Amount of IncomeNumberAmount of Income
£ £ £
Loss1,270 
0-991,67090,000
100-1992,650400,000
200-2993,910990,000
  Totals9,5001,480,000

The industrial distribution of these “under £300” incomes is given in the next table.

Industry GroupNumberAmount of Income
£(000)
Agriculture and livestock production—
  Sheep farming960120
  Dairy farming2,970460
  Other farming1,870280
    Totals5,800860
Forestry, hunting, and fishing5010
Mining and quarrying3010
Manufacturing—
  Food, drink, and tobacco7010
  Apparel, textiles, and footwear28050
  Metals, and metal products8010
  Other15030
Construction40070
Commerce—
  Wholesale and retail trade1,270210
  Other6010
Transport, storage, and communication27040
Services—community—
  Professional17030
  Other870150
    Totals9,5001,480

The above figures do not include salary or wage earners, or those individuals receiving “investment” income. As returns are not furnished in such cases, there is not sufficient data available from income-tax sources to make a reasonably accurate estimate possible.

It should be explained that the incomes earned during an income year are returned and assessed for income tax in the next succeeding year. Therefore the statistics for the income year 1953-54, which are, in general, the incomes earned during the twelve months ended 31 March 1954, are also substantially the statistics of the assessment or taxation year 1954-55.

The ideal of including in the statistics all incomes (over the minimum limit) for the income year in question and excluding all other income years is approached as closely as practicable. Taking the 1953-54 income year as an example, all assessments made up to approximately the end of May 1955 were included in the statistics. Late assessments for previous income years which were made after the end of May 1954 were also included, on the assumption that they would reasonably represent assessments of 1953-54 incomes not made by the closing date. Incomes of £4,000 and over were treated in a slightly different manner; if the assessment for the current year had not been made by the closing date, then the previous year's income data for that taxpayer was included. For practical purposes the statistics are regarded as being on an income-year basis.

SUMMARY OF INCOMES, EXEMPTIONS, AND TAX.—The following table briefly summarizes the main items of information for each of the last five income years available. Both individuals and companies are included in this table.

Item1949-501950-511951-521952-531953-54
Number of assessments619,179646,809633,385661,883682,557
Number of taxpayers484,604451,386565,013556,136540,876
 £(000)£(000)£(000)£(000)£(000)
Assessable income405,828491,074526,381568,591637,684
Returnable income422,876511,247550,031591,183656,381
Exemptions—
  Personal120,490125,680122,760147,280246,810
  Other59,74062,96066,76077,92092,120
Taxable income225,598302,434336,861343,391298,754
Income tax assessed56,92577,97676,75376,00685,480

A strict comparison of the figures for one year with those of another is not possible, as changes in compilation practice and numerous amendments in income-tax law have affected the comparability of the figures. It should be noted the numbers of assessments and of taxpayers have been revised. Combined assessments on husband and wife, which up to 1953-54 were counted as one assessment, are now counted as two assessments. The figures in the above table have been amended accordingly for all the income years shown.

CLASSES OF TAXPAYERS.—“Individuals” comprise all assessments for individual persons. Partnership returns are ignored in the compilation, as the individual shares of partnership income are included in the individual tax assessments. The incomes of deceased persons' estates are not included as the greater part of these are transferred to the assessments of the beneficiaries, which are, of course, included in these statistics if they have incomes of £300 and over.

The term “companies” not only covers companies incorporated under the Companies Act 1933 and other Acts relating to the formation of companies, but also includes local and public authorities, associations (incorporated or unincorporated), and aggregations of individuals (other than partnerships) which form separate and distinct entities for income-tax purposes. Government Departments which are liable to pay income tax are included, but local and public authorities are generally not taxable even in respect of their trading operations, and consequently are not included in these statistics.

A classification on the basis of class is given in the following table for each of the last three available tax years.

ClassNumber of AssessmentsNumber of TaxpayersAssessable Income
1951-521952-531953-541951-521952-531953-541951-521952-531953-54
 £(000)£(000)£(000)
Individuals613,950641,270660,550548,660539,250522,960441,120486,910540,760
Companies19,43520,61322,00716,35316,88617,91685,26181,68196,924
Totals633,385661,883682,557565,013556,136540,876526,381568,591637,684

The numbers of assessments for individuals in the 1953-54 income year covered 556,510 males and 104,040 females. Comparable figures for 1952-53 were: males 535,650, and females 105,620.

PROVISIONAL ESTIMATES.—It has been previously mentioned that the statistical compilation is not commenced until approximately fifteen months after the end of the income year. This, coupled with the necessary time taken by the statistical processing, means an unduly long time lag before the first results of the compilation are available.

In an endeavour to have the most important data available at an earlier date, a small sample of returns is selected from those which are furnished within a short period after the close of the income year. Each case included in the sample shows the assessable income for the recently completed income year and the two previous income years. The income trends disclosed by this sample are applied to the statistical data of the normal sample collection which are then available for the first of the three income years in question.

The income distributions for the first income year shown in returns for the provisional estimates are compared with the income distributions for the final estimates for the same year, and allowances are made for over and under representation in the sample for provisional estimates. Industrial and occupational representations are similarly compared and corrected. Despite these representation corrections and allowances, the trends shown by the sample may be incorrect. For example, the early closing date means that business returns with balance dates later than March cannot be included in the sample. But for otherwise identical business units one with a December balance date may have a very different net income to one with a June balance date.

Past experience has shown that provisional estimates similar to those given in the following tables have normally been sufficiently accurate for most practical uses. However, it is emphasized that the data in the provisional estimates are definitely provisional and are liable to be revised substantially at a later date.

The remark on the previous page concerning the revision of figures because combined assessments of husband and wife are now counted as two assessments applies also to the above table and to those of the following tables which come under the heading of “provisional estimates” .

Although figures for three income years are given to afford a convenient comparison of the results for each year, only the two later years have been estimated from the restricted sample. The 1953-54 figures are based on the normal 10-per-cent sample collection.

The first table gives data for the principal sources of income of individuals.

Source of Assessable IncomeIncome Year
1953-541954-551955-56
Number of AssessmentsAssessable IncomeNumber of AssessmentsAssessable IncomeNumber of AssessmentsAssessable Income
 £(m.) £(m.) £(m.)
Sheep farming23,26052.623,40054.323,10050.0
Dairy farming33,25037.833,30036.834,00038.3
Other farming16,82022.117,20023.417,40023.1
    Totals73,330112.573,900114.574,500111.4
Manufacturing5,6106.25,8006.85,8007.1
Construction11,42012.211,90014.712,40015.8
Commerce13,90014.814,10015.814,30016.6
Transport4,7504.84,9005.45,1006.1
Services—
  Professional6,64013.26,70014.06,80015.0
  Other7,2006.77,5007.87,8008.4
Miscellaneous (forestry, mining, etc.)2,1002.82,2003.02,3003.2
    Totals124,960173.2127,000182.0129,000183.6
Salary or wages523,360358.1545,800403.5569,400445.3
Investment income12,2409.512,70010.013,30010.5
    Totals660,550540.8685,500595.5711,700639.4

It will be noticed that these estimates provide for only comparatively small increases in the numbers for some of the sources of income in the above table. The principal reason is that in recent years the numbers of companies have risen substantially, with corresponding reductions in the numbers of individuals operating as sole traders or as partnerships.

The following table provides an analysis of the assessable incomes for salary and wage earners over the same period.

Amount of Assessable IncomeIncome Year
1953-541954-551955-56
Number of AssessmentsAssessable IncomeNumber of AssessmentsAssessable IncomeNumber of AssessmentsAssessable Income
£ £ £(m.) £(m.) £(m.)
300- 39953,27018.842,40014.836,00012.7
400- 49966,37029.855,30024.950,90022.9
500- 59991,31050.377,80042.774,40040.8
600- 699105,34068.291,70059.784,50055.2
700- 79982,90061.899,70074.895,90071.7
800- 89952,97044.771,80061.080,60068.5
900- 99929,67028.045,10042.857,50055.6
1,000- 1,19923,24025.037,50041.253,80059.0
1,200- 1,3997,7309.911,10014.416,70021.7
1,400- 1,5993,7205.54,8007.28,40012.7
1,600- 1,7992,0203.42,7004.53,6006.1
1,800- 1,9991,2402.41,5002.92,0003.8
2,000- 2,9992,6006.13,2007.73,8009.2
3,000- 3,9996602.28002.89003.1
4,000- 4,9991680.72100.92401.0
5,000 and over1451.11701.21901.3
Totals523,360358.1545,800403.5569,400445.3

A similar table to that immediately preceding but in respect of business incomes (farming, private traders, professional, etc.) is now given.

Amount of Assessable IncomeIncome Year
1953-541954-551955-56
Number of AssessmentsAssessable IncomeNumber of AssessmentsAssessable IncomeNumber of AssessmentsAssessable Income
£ £ £(m.) £(m.) £(m.)
300- 3996,2002.25,3001.95,2001.8
400- 4997,9303.66,7003.06,9003.1
500- 5999,1104.98,4004.68,1004.4
600- 6999,6506.28,9005.88,7005.6
700- 7999,9907.59,5007.19,7007.3
800- 8998,9607.59,3007.99,4008.0
900- 9997,8507.48,1007.68,4008.0
1,000-1,19913,81015.014,90016.414,80016.3
1,200-1,39910,57013.711,10014.511,10014.5
1,400-1,5998,51012.79,00013.29,50014.3
1,600-1,7995,7909.86,30010.87,00011.9
1,800-1,9994,4708.54,9009.35,30010.0
2,000-2,99912,64030.514,10033.715,20036.3
3,000-3,9995,10017.45,80019.75,40018.4
4,000-4,9992,0569.12,2009.52,2009.2
5,000 and over2,32917.22,50017.02,10014.5
    Totals124,960173.2127,000182.0129,000183.6

The remarks previously made concerning the provisional nature of these estimates apply with particular force to this analysis. The numbers in the sample are only barely adequate for this purpose and, at the present time, it is also extremely difficult to assess the probable increase in the numbers of incomes of £300 and over in each of these occupational groups. However, it is considered that the estimates are of interest in indicating how the increase in the incomes of salary and wage earners as a whole have been shared by the different occupational groups.

The previous table completes the data coming under the heading of provisional estimates. The further data which are given in the following pages are based, in the case of individuals, on the normal 10 per cent sample collection and the results are not provisional.

The next table shows assessable income from all sources combined (including investment income).

Amount of Assessable IncomeIncome Year
1953-541954-551955-56
Number of AssessmentsAssessable IncomeNumber of AssessmentsAssessable IncomeNumber of AssessmentsAssessable Income
££ £(m.) £(m.) £(m.)
300- 39963,33022.151,60018.045,20015.8
400- 49976,11034.264,00028.859,90027.0
500- 599102,12056.287,90048.284,30046.2
600- 699115,95075.1101,60066.194,30061.5
700- 79993,49069.7109,80082.4106,20079.5
800- 89962,39052.681,60069.390,50076.9
900- 99937,95035.853,60050.866,40064.0
1,000- 1,19937,68040.653,10058.369,30076.1
1,200- 1,39918,74024.122,70029.528,30036.8
1,400- 1,59912,54018.714,10020.918,20027.5
1,600- 1,7997,94013.49,20015.610,80018.4
1,800- 1,9995,91011.26,60012.57,50014.1
2,000- 2,99915,64037.617,70042.419,40046.5
3,000- 3,9995,90020.16,70023.06,50022.0
4,000- 4,9992,28810.22,50010.72,50010.5
5,000 and over2,57519.12,80019.02,40016.6
    Totals660,550540.8685,500595.5711,700639.4

The provisional estimates for the salary or wage earners shown in the preceding tables have also been analysed into occupation groups.

Occupation GroupIncome Year
1953-541954-551955-56
NumberAssessable IncomeNumberAssessable IncomeNumberAssessable Income
  £(m.) £(m.) £(m.)
Professional, technical, etc.34,81025.336,80028.738,90033.2
Managers, administrators, etc.24,94031.925,70035.426,70039.8
Clerical and related workers84,88053.888,40061.192,90067.9
Salesmen, etc.36,28023.638,30026.940,10029.7
Farmworkers, fishermen, etc.36,10022.537,80025.039,80027.0
Mine, quarry, etc., occupations5,5404.15,6004.25,6004.2
Operating transport workers29,72021.231,20023.832,90027.1
Craftsmen, production process workers, etc.147,95098.1154,100112.8159,700123.5
Manual workers and related occupations81,15052.084,20057.687,10062.3
Service and related workers23,54013.824,40015.225,40016.6
Armed forces10,5607.610,7008.211,2008.9
Unknown occupations5400.37000.37000.4
Not actively engaged7,3503.97,9004.38,4004.7
    Totals523,360358.1545,800403.5569,400445.3

From this point onwards, in the remainder of the statistical tables relating to individuals, combined assessments on husband and wife are counted as two assessments in the 1953-54 figures and as one assessment, classified according to the combined income, in the 1951-52 and 1952-53 figures. The comparability of the figures has consequently been affected, since the inclusion in 1953-54 of the separate incomes of the husband and wife has increased numbers in the lower income groups at the expense of the middle and higher income groups. There were approximately 28,000 such combined assessments in both of the income years 1951-52 and 1952-53.

AMOUNT OF INCOME.—The broad principle adopted in calculating the assessable income is that any expenditure or loss exclusively incurred in the production of assessable income for any year may be deducted from the total income from any assessable source for that year. Depreciation is allowed, varying rates for different classes of assets being fixed. The assessable income is approximately equivalent to the net profit as determined by the normal commercial accounting systems. It is, on the whole, rather higher than the commercial net profit, since certain types of expenditure which are regarded as a revenue charge in commercial accounts are not permissible deductions from income for income-tax purposes.

Where the operations of a source of income which would be assessable for income tax have resulted in a loss for the year, the loss may be set off against assessable profits from other sources (if any) or, in default thereof, may be set off against assessable profits in the six following years. Capital profits are not assessable and capital losses are not deductible.

INCOMES OF INDIVIDUALS: Assessable Income.—Summarized figures according to amount of assessable income of individuals are now given for the last three income years available.

Amount of Assessable IncomeNumber of AssessmentsAssessable Income
1951–521952–531953–541951–521952–531953–54
£ £ £(000)£(000)£(000)
Under 40072,53064,99063,32025,27022,76022,100
400– 49988,29079,73076,11039,80035,94034,200
500– 599112,780110,290102,12061,74060,62056,210
600– 69995,930102,580115,95061,86066,28075,060
700– 79963,34072,37093,49047,19053,92069,720
800– 89941,04048,80062,39034,66041,22052,640
900– 99926,51031,06037,95025,06029,34035,820
1,000– 1,19929,97036,30037,69032,42039,27040,630
1,200– 1,39915,78018,97018,74020,30024,44024,130
1,400– 1,5999,75012,16012,54014,54018,10018,690
1,600– 1,7996,1507,5407,94010,43012,73013,420
1,800– 1,9994,3605,1505,9108,2409,73011,200
2,000– 2,99911,85014,20015,64028,46033,95037,610
3,000– 3,9993,6584,8025,90012,54716,43520,120
4,000– 4,9991,5151,9052,2886,6948,42310,153
5,000– 5,9996897871,0953,7544,2785,965
6,000– 6,9993284065832,1082,6173,764
7,000– 7,9991722172851,2781,6152,117
8,000– 8,9991101391889321,1761,596
9,000– 9,99979951217489031,139
10,000– 19,9991891992652,4182,5693,390
20,000– 29,999201727481400641
30,000– 39,999565191201167
40,000 and over6281
      Totals585,040612,720660,550441,120486,910540,760

The changes in the distribution of assessable incomes are perhaps more clearly illustrated by the percentages which appear in the table below.

Per Cent

Amount of Assessable IncomeNumber of AssessmentsAssessable Income
1951–521952–531953–541951–521952–531953–54
£ £ 
Under 50027.4923.6221.1114.7512.0610.41
500– 99958.0559.5962.3552.2851.6353.53
1,000– 1,99911.2813.0712.5419.4821.4119.99
2,000 and over3.183.724.0013.4914.9016.07
      Totals100.00100.00100.00100.00100.00100.00

Taking into account only those individuals who received £300 or over, the 10 per cent who received the highest incomes had an average assessable income of £2,228 in 1953–54, compared with £2,145 in 1952–53 and £1,954 in 1951–52.

Unearned Income.—The Land and Income Tax Amendment Act 1950 abolished the additional income tax payable on unearned incomes. Income-tax assessments no longer distinguish between earned and unearned income, but as the question of the proportion of unearned income has statistical significance from the incomes aspect, the distinction has been preserved for statistical purposes. The statistical table which follows gives the amount of unearned income. The figures relate to assessable unearned incomes and do not include company dividends, company “proprietary” income, etc.

Earned income was defined as all income derived from any source by a taxpayer (not being a company or a public or local authority) by reason of his personal exertions. Pensions and superannuation were classed as earned incomes. Unearned income was all income that was not regarded as earned income. It should be noted that workers' compensation payments, war pensions, and social security benefits (except for the universal superannuation benefit) are not taxable and are not included in these statistics.

Amount of Assessable IncomeUnearned IncomeProportion of Assessable Income
1951–521952–531953–541951–521952–531953–54
£ ££(000)£(000)£(000)Per CentPer CentPer Cent
Under 4009909101,1603.94.05.2
400– 4991,0501,0801,1202.63.03.3
500– 5991,0601,1801,3201.72.02.3
600– 6998601,0801,1501.41.61.5
700– 7998309501,0201.81.81.5
800– 8997008308402.02.01.6
900– 9996007308102.42.52.3
1,000– 1,1998501,1901,2102.63.03.0
1,200– 1,3995908608802.93.53.6
1,400– 1,5996407207404.44.04.0
1,600– 1,7992905805202.84.63.9
1,800– 1,9993303705504.03.84.9
2,000– 2,9991,2401,3701,7004.44.04.5
3,000– 3,9995046908604.04.24.3
4,000– 4,9992983924974.54.74.9
5,000– 5,9992372143376.35.05.6
6,000– 6,9991361922246.57.36.0
7,000– 7,999961331307.58.26.1
8,000– 8,9996371716.86.04.4
9,000– 9,99957581017.66.48.9
10,000– 19,9992231862649.27.27.8
20,000 and over1131321.65.22.9
      Totals11,66013,81015,5402.62.82.9

Generally the proportion of unearned to assessable income increases as the amount of assessable income grows, although exceptions to this rule will be observed. The higher ratios for the lowest income groups are mainly attributable to the inclusion of larger than normal numbers of retired persons, whose incomes are principally drawn from unearned sources.

Proprietary Income.—There are two factors which must be present before the income of a company can be proprietary income in the hands of the shareholder. The first is that the control must be in the hands of not more than four persons. If this is the case, then the company is a proprietary company. The second factor is that a shareholder of a proprietary company is not a proprietary shareholder unless he is entitled to receive not less than one-fifth of the company's income. Only in the case of a proprietary shareholder in a proprietary company is the shareholder's proportion of the company's residual taxable and non-assessable income transferred to the shareholder's assessment. A proprietary shareholder may be an estate or another company.

Where proprietary income is transferred to the shareholder's assessment that income becomes assessable income in the hands of the shareholder. Any dividends received from the proprietary company are then ignored. The tax is assessed on the taxable balance (including proprietary income), provision being made for a credit in respect of tax already paid on that income by the company. In the statistics for 1951–52 and 1953–53, such proprietary income was included only in the returnable income. It was excluded from the unearned, the assessable, and the taxable incomes.

For the 1953–54 statistics, proprietary income was entirely ignored in the statistical compilation, with the exception of its effect on the amount of tax assessed, and dividends received from proprietary companies were included in the returnable income.

Proprietary income was abolished as far as individuals are concerned from the income year 1954–55.

Other things being equal, the exclusion of proprietary income from the statistics should have resulted in a sharp fall in the difference between the assessable and returnable incomes for 1953–54. This, however, did not happen. The explanation is that there was an unusually large increase in the amount of company dividends paid during 1953–54.

Returnable Income.—In addition to the proprietary income, certain classes of non-assessable income are taken into account in determining the amount of tax payable on the balance of the assessable income. The classes concerned mainly comprise dividends from companies trading in New Zealand, interest on New Zealand Government securities issued free of tax, and interest on company debentures issued free of tax or with a floating rate of interest and certain classes of income received from overseas. Company dividends are actually by far the largest source of non-assessable income.

The following table gives particulars of the number of assessments and total returnable income of individuals according to size of income for the three latest income years available.

Amount of Returnable IncomeNumber of AssessmentsReturnable Income*
1951–521952–531953–541951–521952–531953–54

* Including proprietary income for 1951–52 and 1952–53, and proprietary dividends for 1953–54.

£ £ £(000)£(000)£(000)
Under 40070,85063,42060,68024,87022,36021,490
400– 49987,81079,08075,98039,59035,64034,140
500– 599112,070109,740101,62061,33060,32055,970
600– 69995,370102,090115,69061,50065,96074,910
700– 79962,95071,76093,29046,89053,46069,570
800– 89940,93048,70062,22034,57041,14052,500
900– 99926,49031,00037,97025,04029,28035,830
1,000– 1,19929,93036,40037,79032,41039,42040,800
1,200– 1,39915,81019,09019,03020,35024,61024,530
1,400– 1,59910,08012,70012,77015,04018,92019,060
1,600– 1,7996,5307,6208,25011,08012,87013,940
1,800– 1,9994,7805,5606,0609,03010,50011,490
2,000– 2,99912,58014,85016,61030,37035,67040,070
3,000– 3,9994,4465,4826,63015,28918,83622,840
4,000– 4,9991,9852,4762,6298,79410,96411,679
5,000– 5,9999881,0711,2975,3855,8317,076
6,000– 6,9994935797353,1683,7304,745
7,000– 7,9992723123752,0292,3222,785
8,000– 8,9991551972421,3151,6692,052
9,000– 9,9991351561681,2761,4751,584
10,000– 19,9993353824104,3274,9445,262
20,000– 29,9994038659398861,548
30,000– 39,999141014488336467
40,000– 49,9994510289218453
50,000 and over 37 267378
      Totals585,040612,720660,550455,370501,620555,170

From a comparison of the foregoing table with that based on the amount of assessable income it will be observed that the larger income categories are most affected by the inclusion of non-assessable income. For the income year 1953–54 the aggregate of non-assessable, etc., income was £14,410,000. With the exception of £1,370,000 received by those having returnable incomes of less than £1,000, this amount was shared by the medium and higher income groups. The general tendency is for the proportion of non-assessable, etc., income to rise as the total income rises.

Aggregation of Incomes: Husband and Wife.—The incomes of husband and wife are aggregated if (a) they are living together, and (b) the returnable income in each case exceeds £500. The excess of the wife's income over £500 is deemed to be the income of the husband, and an aggregate assessment, which also includes the assessment on that part of the wife's income which is under £500, is made in the name of the husband. In such cases a personal exemption of £375 is allowable for the wife, in addition to that allowable to the husband, and also all other special exemptions to which both husband and wife would have been separately entitled. Provision is made for separate assessments if written application is made by either the husband or wife before an aggregate assessment has been made. The total tax payable under the separate aggregated assessments is that payable under the combined assessment, but apportioned between husband and wife according to their respective incomes. The 1954 amending Act considerably altered the aggregation provisions, which formerly provided for aggregation if the incomes of both husband and wife exceeded £200.

The following table shows the numbers of “aggregate” assessments for the three latest income years, according to the amount of the combined returnable incomes. In this table an “aggregate” assessment is counted as one assessment only. Each assessment, however, includes two returns of income.

Amount of Combined Returnable IncomeNumber of Assessments
1951–521952–531953–54
£ £ 
Under 6991,060200 
700– 7992,9401,390 
800– 8995,0903,680 
900– 9995,5905,400 
1,000– 1,1996,7208,6501,090
1,200– 1,3992,6903,6001,880
1,400– 1,5991,0301,5801,120
1,600– 1,799840880600
1,800– 1,999480480400
2,000– 2,9991,1401,250680
3,000– 3,999545591470
4,000– 4,999302357190
5,000 and over476494575
      Totals28,91028,5507,010

The substantial character of the amendment to the law is obvious from these figures.

It should be noted that the above table includes only those cases where there is no election by the husband or wife to receive separate assessments at the rate of tax appropriate to the aggregated taxable incomes. This right of election is frequently exercised, but the actual number of cases is not available from these statistics.

Sources of Income.—The following table shows the distribution of incomes of individuals classified by the principal source groups, and also the average assessable and returnable incomes for the income year 1953–54.

Source of Assessable IncomeNumber of AssessmentsAssessable IncomeReturnable IncomeIncome Tax AssessedAverage Assessable IncomeAverage Returnable Income
£(000)£(000)£(000)££
Agricultural and livestock production—
  Sheep farming23,26052,55053,21013,3602,2592,288
  Dairy farming33,25037,85037,9904,1101,1381,143
  Other16,82022,12022,3103,3301,3151,326
      Totals73,330112,520113,51020,8001,5341,548
Forestry, hunting, and fishing9109709801101,0661,077
Mining and quarrying430560570701,3021,326
Manufacturing—
  Food, drink, and tobacco890900920901,0111,034
  Apparel, textiles, and footwear1,0201,0001,0201209801,000
  Metals and metal products1,6001,9401,9702501,2121,231
  Other2,1002,4002,5002901,1431,190
Construction11,42012,22012,3401,3101,0701,081
Commerce—
  Wholesale and retail trade13,90014,76015,1101,7901,0621,087
  Other7701,2601,3102201,6361,701
Transport, storage, and communication4,7504,7504,8004501,0001,010
Services, community—
  Professional6,64013,24013,6802,6501,9942,060
  Other7,2006,6706,750710926937
      Totals124,960173,200175,45028,8601,3861,404
Salary or wages523,360358,070367,49017,860684702
Investment income12,2409,49012,2301,370775991
      Grand totals660,550540,760555,17048,090819840

Individuals in the above table whose incomes are derived from sources other than salary or wages, or investment income, are classified according to the United Nations industries classification. The United Nations “enterprise” concept forms the basis of the classification. Under this concept, if an individual receives income from two or more of the separately classified industries, the whole of the income is classed as if derived from the industry which provides the largest amount of income, and no attempt is made to allocate the component portions of the income to the different industries from which derived. These statistics are therefore not exactly comparable with most other types of statistics where the “establishment” concept is generally used. This provides for the division of the enterprise into establishments, where more than one separately classifiable industry is carried on, and the establishments are then appropriately classified.

As some indication of the extent to which the figures are affected by the principle of classifying the whole income according to the source of the largest amount of assessable income, source salary or wages includes £4,290,000 unearned income, and source investment income includes £1,390,000 earned income.

The same principles are followed in the occupational classification of salary or wage earners—i.e., if more than one occupation is involved, the occupation which has produced the largest income is the one which is used for classification purposes.

It will be noticed that the greatest part of non-assessable income—i.e., the difference between the assessable and returnable incomes shown in the above table—is included in the salary or wages group. This is mainly due to the fact that the principal shareholders of companies usually receive salaries as managing directors or managers of their companies. As such salaries constitute the principal source of their assessable income, these individuals are included in the salary or wages group.

The salary or wage earners in the previous table are analysed in the next table according to the personal occupation followed. The data for the income year 1953–54 are shown for the principal occupational groups.

Occupational GroupNumber of AssessmentsAssessable IncomeReturnable IncomeIncome Tax AssessedAverage Assessable IncomeAverage Returnable Income
 £(000)£(000)£(000)££
Professional, technical, and related workers34,81025,27025,5101,400726733
Managers, administrators, and officials24,94031,87039,6204,5301,2781,589
Clerical, office, and related workers84,88053,77053,9802,130633636
Salesmen and related workers36,28023,62023,800970651656
Farmers, fishermen, hunters, lumbermen, and related workers36,10022,50022,710940623629
Workers, in mine, quarry, and related occupations5,5404,1304,140200745749
Workers in operating transport occupations29,72021,19021,240860713715
Craftsmen, production process workers, and workers in related occupations147,95098,15098,4103,880663665
Manual workers and labourers, n.e.i.81,15051,99052,0602,000641642
Service and related workers23,54013,76013,780480584585
Unknown and unreported occupations54026033010481611
Armed forces10,5607,6507,660320724725
Not actively engaged19,59013,39016,4901,500683842
      Totals535,600367,560379,72019,230686709

The “not actively engaged” group in this table include those whose principal source of income is interest, rents, etc. The remainder of this group consists of superannuitants whose assessments are included in the salary or wage group of the source classification.

Exemptions.—In the case of individuals certain statutory deductions are made from the assessable income, and income tax is paid on the balance. Absentees are not usually entitled to the benefit of exemptions other than the personal exemption. The exemptions in force for assessments of the income received during the income year 1953–54 were—

  1. A personal exemption of £375.

  2. An exemption of £125 in respect of a dependent wife (or husband) whose personal income did not exceed £125. The exemption was diminished by £1 for every £1 of the wife's income in excess of £125.

  3. An exemption not exceeding £125 in respect of a housekeeper employed by a widow, widower, or divorced person to have the care and control of any child or children.

  4. An exemption for contributions not exceeding £75 towards the support of a relative by blood, marriage, or adoption who was dependent on the taxpayer. Children of the taxpayer were included in this definition. The exemption was not allowed if the relative was in receipt of a monetary benefit (other than a family benefit for children) from the Social Security Fund.

  5. Life-assurance premiums, National Provident Fund, superannuation, and similar contributions. An exemption was allowed up to a maximum of 15 per cent of assessable income or £175, whichever amount was the lesser.

In the statistics the exemptions were applied in the order in which they appear in the foregoing list. For example, a married man with three children was entitled to the following exemptions: personal, £375; wife, £125; relatives, £225; and £25 life-assurance premiums, etc. The total exemption was thus £750. Assuming that his assessable income was £700, the exemptions were reduced to a total sufficient to make the taxable balance “nil,” and were recorded as personal, £375; wife, £125; and relatives, £200.

The next table shows the aggregate amounts of exemptions allowed for the income year 1953–54.

£(000)

Amount of Assessable IncomePersonalWife, HousekeeperChildren and RelativesLife Assurance Premiums, etc.Total
£ £ 
Under 40021,86030104021,940
400- 49928,6601,08015041030,310
500- 59938,4204,7301,86080045,810
600- 69943,6407,9106,2001,23058,980
700- 79935,1607,5808,0001,62052,350
800- 89923,4905,4706,2601,58036,800
900- 99914,2903,5704,1501,20023,210
1,000- 1,19914,2103,5504,1201,50023,370
1,200- 1,3997,0801,7902,03089011,790
1,400- 1,5994,7401,1901,3906107,940
1,600- 1,7993,0007809504705,200
1,800- 1,9992,2405506303703,790
2,000- 2,9995,9201,4501,6601,15010,180
3,000- 3,9992,2405306705403,980
4,000- 4,9998722082512281,559
5,000- 5,99941997108112737
6,000- 6,999222516363398
7,000- 7,999109212831190
8,000- 8,99973151521124
9,000- 9,999461191379
10,000- 19,999103181929169
20,000 and over1623526
      Totals246,81040,63038,58012,910338,930

The operation of the previously mentioned rule regarding reduction of potential exemptions has the result that the actual exemptions for children are considerably less than the potential exemptions in the income groups up to and including the £600–£699 income group. There is also a smaller omission of potential exemptions in the higher income groups.

The relation between the number of children and the amount of income is a matter of some interest. In the next table the number of dependent children in the household who were under the age of sixteen years are given for each assessable income group.

Amount of Assessable IncomeNumber of Children (Under Sixteen Years)
0123456789 and overTotal
£ £ 
Under 40058,6601,7201,31075048017012030404063,320
400- 49966,0504,0202,8301,480680520290100806076,110
500- 59975,1509,5507,9304,5902,3901,050810360160130102,120
600- 69968,21016,70014,9508,8204,0101,68097037015080115,950
700- 79944,85015,22016,7809,3004,1901,6708503701808093,490
800- 89926,86010,25012,6707,4903,0301,0606502201006062,390
900- 99915,7705,9108,0904,6902,04084040090705037,950
1,000–1,19916,1605,8707,1604,8902,360680360110803037,690
1,200–1,3998,2902,7203,6002,2101,22044017060201018,740
1,400- 1,5995,7101,6502,0701,7408403601003040 12,540
1,600- 1,7993,4109301,5201,1205901801601020 7,940
1,800- 1,9992,6608201,0408702801507010  5,910
2,000- 2,9997,3501,9902,8601,94083043014090 1015,640
3,000- 3,9992,6208101,050850340130701020 5,900
4,000- 4,9991,08629238928616048164522,288
5,000 and over1,43627535227516949134 22,575
      Totals404,27078,72084,60051,30023,6109,4605,1901,870970560660,550

The amount of assessable income does not, of course, include the social security benefit of £26 per annum for each child under sixteen years. There are 601,150 children represented in the above figures, which therefore fail to account for all the children in New Zealand who are less than sixteen years. One obvious factor accounting for the omission of children from these statistics is that assessable incomes of less than £300 are not covered. There is, however, evidence which suggests that a considerable number of non-taxpayers claim exemptions for only a number of children sufficient to bring them into the non-taxpaying category, with the result that the numbers of children recorded for the lower income groups understate the true position.

Taxable Income and Tax Assessed.—After all exemptions have been deducted from the assessable income the balance of income (if any) is taxed in accordance with the basic rates.

The next table gives in respect of individual incomes particulars of taxable income and of tax assessed for the various assessable income categories in 1953–54 and the two preceding income years.

£(000)

Amount of Assessable IncomeTaxable IncomeTax Assessed
1951–521952–531953–541951–521952–531953–54
£ £ 
Under 4008,8306,41016029013060
400- 49916,30013,1703,8901,130780590
500- 59927,34023,70010,4002,3301,8501,630
600- 69928,90027,33016,0802,8302,4602,560
700- 79923,62023,90017,3702,6202,4302,820
800- 89918,71020,04015,8402,2702,2702,630
900- 99914,48015,23012,6101,9001,8602,150
1,000- 1,19920,28022,42017,2603,0103,0803,120
1,200- 1,39913,94015,64012,3402,3702,5002,390
1,400- 1,59911,06012,75010,7602,0502,2502,230
1,600- 1,7998,2609,5508,2201,6601,8201,800
1,800- 1,9996,7107,6107,4101,4501,5601,740
2,000- 2,99924,28028,36027,4306,4207,0807,370
3,000- 3,99911,29014,76916,1303,7744,6685,300
4,000- 4,9996,2157,7478,5942,4732,9443,348
5,000- 5,9993,5353,9945,2271,5581,7202,268
6,000- 6,9991,9992,4713,3669461,1401,554
7,000- 7,9991,2211,5331,927609745930
8,000- 8,9998951,1241,473460570731
9,000- 9,9997228661,060376458539
10,000- 19,9992,3542,4933,2221,3361,3601,728
20,000- 29,999474393621280227348
30,000- 39,99919019916411510094
40,000 and over278161
      Totals251,600261,710201,83042,26044,01048,090

As the result of the increases in the various exemptions, and also rising incomes, the amount of taxable income has fallen for all assessable income groups below £2,000. The table also shows the effects of the graduated rates of income tax.

Rates of Tax: Individuals.—For 1951–52 and 1952–53 the rate of tax was 2s. 6d. in the £1 on so much of the taxable income as did not exceed £100. For each succeeding £100 or part thereof the rate of tax on that income was increased by 3d. up to a maximum rate of 12s., which was reached at incomes of £3,800. In 1953–54, the starting point was increased to 3s. in the £1, with the maximum rate retained at 12s. These rates are known as basic rates, and are subject to a percentage increase or decrease each year in accordance with the provisions of the Land and Income Tax (Annual) Act fixing rates for that year. The above rates were increased by 5 per cent for 1951–52, and 2 1/2 per cent for 1952–53. The new basic rates applied in 1953–54 without either increase or decrease. Tax is payable on the amount of the taxable balance, but non-assessable income is included for purposes of determining the actual rate of tax. The method of including non-assessable income is perhaps more clearly explained by means of an example. Assume that an individual had a taxable income of £300 and also non-assessable income of £100. The principle of the application of the basic rates to the assessment is as follows:

 £s.d.
£100 at 3s. 0d. in the £1= 1500
plus £100 at 3s. 3d. in the £1= 1650
plus £100 at 3s. 6d. in the £1= 17100
plus £100 at 3s. 9d. in the £1= 18150
£400£67100

The effective rate for each £1 of income is found by dividing the tax as computed above by the number of pounds included in the income. In this instance, £67 10s. 400 = £.168750. Therefore the tax, which is payable on the taxable income only, at the effective rates is £300 x £.168750 which equals £50 12s. 6d. The inclusion of the £100 non-assessable income in determining the effective rate of tax has increased the amount of tax payable by £1 17s. 6d.

The total tax as calculated is then increased or decreased by the percentage ruling for the particular year.

Geographical Distribution.—The decentralization of the Department of Inland Revenue afforded the opportunity of obtaining data on a geographical basis. The following table shows for the last three available income years the number of assessments and average assessable income for each of the fifteen districts, which are indicated by the name of the town in which the district office is situated.

Income-tax DistrictNumber of AssessmentsAverage Assessable Income
1951–521952–531953–541951–521952–531953–54
 £££
Whangarei17,28019,22019,880732775793
Auckland116,770124,900133,490724755762
Hamilton70,56076,66057,630775832871
Tauranga26,080786
Napier33,98036,30038,940846871938
New Plymouth21,86022,52024,030805842876
Wanganui18,56019,02020,250803870886
Palmerston North27,88028,78030,350808865897
Wellington94,63096,050105,030731772776
Nelson16,23016,53018,200687748782
Christchurch65,94067,94073,950717738766
Greymouth11,25012,11012,400670715738
Timaru19,22019,49020,980855850952
Dunedin46,35047,24050,800732780817
Invercargill24,53025,96028,540817894939
      Totals585,040612,720660,550754795819

The proportions of salary or wage earners to total population largely determine the district average income. In 1953–54, three of the districts which contain major urban centres—Auckland, Wellington and Christchurch—had average incomes which generally were considerably lower than those of other districts, if Greymouth is excepted. Timaru became in 1953–54 the district with the highest-average assessable income. Invercargill and Napier also exceeded £900. These are districts with heavy representations of sheepfarmers who, as a class, enjoy the highest average assessable incomes.

COMPANY INCOMES.—It is perhaps desirable to draw attention to the fact that the term “companies” as it is used in connection with these statistics has been given a wider meaning than that which is commonly assigned to it. A definition of the term will be found on page 939.

The various statutory exemptions which are granted to individuals do not apply in the case of companies. The amounts of assessable income and taxable income are identical in the case of companies.

These statistics for companies have been compiled from returns for all companies, and are not estimates based on a sample survey.

The following table gives particulars of the number of companies and their aggregate assessable incomes for 1953–54 and the two preceding income years.

Amount of Assessable IncomeNumber of AssessmentsAssessable Income
1951–521952–531953–541951–521952–531953–54
£ £ £(000)£(000)£(000)
0- 992,1382,1932,343737579
100- 1991,0741,1641,131155168164
200- 2999101,0061,011223247247
300- 399805828854280289297
400- 499809843817360375364
500- 599636687808348374440
600- 699575633591373409383
700- 799515527543387395406
800- 899454480542384408459
900- 999411439446390416423
1,000- 1,9992,7742,9183,1613,9554,1474,544
2,000- 2,9991,3911,3771,5453,4183,3663,772
3,000- 3,9998498379212,9302,8843,202
4,000- 4,9995755655772,5682,5242,574
5,000- 5,9993844094372,0902,2302,391
6,000- 6,9992882853001,8641,8261,943
7,000- 7,9991951902101,4541,4131,566
8,000- 8,9991711421831,4491,2011,548
9,000- 9,9991471271401,3961,2001,333
10,000- 19,9996026186458,4378,5138,992
20,000- 29,9992061972365,0674,8035,693
30,000- 39,9991241121224,2243,8394,206
40,000- 49,9996764682,9782,8443,043
50,000- 99,9991351281409,1378,7669,656
100,000- 199,9996373778,87410,15710,375
200,000 and over53416422,34518,81228,824
Current net loss2,4323,0433,182   
Assessable income before losses652687913   
      Totals19,43520,61322,00785,16181,68196,924

The item “assessable income before losses,” which appears in the preceding and also in subsequent tables, requires a little further explanation. Companies, and also individuals, are permitted to offset losses from one particular source of assessable income against the profits from any other source of assessable income during the same income year. The remainder of the loss, if any, can be carried forward and offset against the assessable profits of the next six income years. This item represents the number of companies whose assessable incomes for the current year have been reduced to “nil” by the offsetting of losses incurred in previous income years.

In the following table, which is also classified by the amount of assessable income, more complete data for the 1953–54 income year only are presented.

Amount of Assessable IncomeNumber of AssessmentsAssessable Income Before Losses*Assessable IncomeReturnable IncomeCurrent Net LossIncome Tax AssessedSocial Security Charge

*This column represents assessable income plus losses which have been carried forward from previous years.

£ £ £(000)£(000)£(000)£(000)£(000)£(000)
0    992,34313779979 217
100- 1991,131201164194 2212
200- 2991,011268247262 3418
300- 399854323297474 4322
400- 499817396364572 5327
500- 599808455440472 6532
600- 699591397383387285828
700- 799543416406461116730
800- 89954246845947167434
900- 999446437423455 7031
1,000- 1,9993,1614,5894,5444,709 863340
2,000- 2,9991,5453,8123,7723,811 871280
3,000- 3,9999213,2193,2023,224 878240
4,000- 4,9995772,5782,5742,702 817192
5,000- 5,9994372,3942,3912,452 855180
6,000- 6,9993001,9511,9432,069 769145
7,000- 7,9992101,5671,5661,592 661117
8,000- 8,9991831,5491,5481,577 673116
9,000- 9,9991401,3331,3331,352 58799
10,000- 19,9996459,0448,9929,27123,902671
20,000- 29,9992365,6935,6935,895 2,480424
30,000- 39,9991224,2064,2064,425 1,837312
40,000- 49,999683,0503,0433,300 1,323228
50,000- 99,9991409,7589,6569,823 4,188724
100,000- 199,9997710,37610,37510,571 4,320733
200,000 and over6429,78528,82429,528 11,8592,045
Net loss3,182  1483,544  
Assessable before income losses9131,129 35   
      Totals22,00799,53296,924101,2113,59137,3907,086

Before 1953–54, proprietary income received from proprietary companies was included in the returnable income of these statistics. Dividends received from proprietary companies were omitted. For 1953–54, this position was reversed, proprietary income was omitted and proprietary dividends were included. It should be noted that although proprietary income has been dropped from the statistics, the amount of tax assessed is determined by the amount of proprietary income, if any. This may result in some apparent anomalies in these statistics—cases where the amount of tax assessed is greater than the amount which would normally be appropriate to the amount of income concerned.

Companies are classified by industry, the classification being identical with that used for individuals with the minor exception that community services—professional—do not form a separate group. Attention is drawn to the remarks on page 949 regarding the difference between the enterprise and the establishment concepts. These statistics are based on the enterprise concept—i.e., the whole of the company's activities are classified according to the predominant activity. The figures in the next table give the results of this classification for the income year 1953–54.

Industry GroupNumber of AssessmentsAssessable Income Before Losses*Assessable IncomeReturnable IncomeCurrent Net LossIncome Tax AssessedSocial Security Charge

* This column represents assessable income plus losses which have been carried forward from previous years.

 £(000)£(000)£(000)£(000)£(000)£(000)
Agriculture and livestock production7202,0542,0242,047170734152
Forestry, hunting, and fishing93139133134374410
Mining and quarrying16747246546750217232
Manufacturing—
Food, drink, tobacco90210,95710,76410,9771134,546811
Apparel, textiles, and footwear8413,9173,8283,8683291,527286
Metals and metal products1,5806,0195,9236,0092472,257444
Other2,22012,99312,78012,9964275,100957
Construction1,4314,3904,3434,3642221,564325
Electricity, gas, water, and sanitary services212,4101,4511,45811627109
Commerce—
Wholesale and retail trade7,96637,25636,65537,44187314,3972,746
Other2,86113,00912,93615,4611884,458749
Transport, storage, and communication1,2233,2072,9763,0822231,061270
Community services1,9692,7062,6432,905242902196
Other1344481 
      Totals22,00799,53296,924101,2113,59137,3907,086

Rates of Tax: Companies.—For incomes received during the income year 1953–54 the standard rate of tax payable by a company was 2s. 6d., increased by 1/100 d. for every £1 of taxable income up to £6,300. Above £6,300 the rate was 7s. 9d., increased by 1/100d. for every £1 of taxable income in excess of £6,300, with a maximum of 8s. 8d. in the £1. Social security charge is levied at the normal rate of 1s. 6d. per £1 of income. Not all companies are liable to pay this charge. Further information concerning rates of taxation will be found on pages 805–806.

The next table shows some additional data concerning companies which relate to the income year 1953–54.

£(000)

Industry GroupStocks at End of PeriodIncome FromSalaries and WagesInterest PaidRent PaidDepreciationGross Profit
Sales and ServicesInterestGross Rents

* Gross profit not normally available.

Agriculture and livestock production3,1729,62029422,1321501304945,198
Forestry, hunting, and fishing551,222653384131983358
Mining and quarrying3948,18318374,10113667475*
Manufacturing—
  Food, drink, and tobacco28,755268,54415029324,0195465283,07239,124
  Apparel, textiles, and footwear14,97060,4774315814,7663775821,07411,289
  Metals and metal products15,75673,9535326916,7313544571,24815,556
  Other26,865134,4909441329,8679189894,90931,650
Construction9,29957,5116218515,6112872221,22210,488
Electricity, gas, water, and sanitary services80111,4996572,8992,26381,1866,213
Commerce—
  Wholesale and retail trade118,153720,4791,2771,11357,8042,0193,4064,917114,137
  Other29941,02020,6482,54312,6835,805355910*
Transport, storage, and communication59835,8347515412,6281912302,759*
Community services1,48632,9921864839,7062271,5788976,505
Other or undefined11100  19121311
      Totals220,6131,455,92522,6465,800203,35013,2898,59323,249240,529

It may be not out of place to mention a few of the background factors which have some relevance in the interpretation of these statistics. Except for the farming industry, professional services, etc., where the company form of ownership is the occasional exception rather than the rule, the larger enterprises in the business sector are almost invariably companies. Companies with operations on a smaller scale are, however, well represented.

The stocks at the end of the period are trading stocks, and in the farming industry the value of livestock, mostly based on a standard value from year to year, is included.

Sales include sales of goods and sales of services. The income from sales and services is the net price to the customer, whether wholesaler, retailer, or ultimate consumer, for the goods and services. The total of this column is therefore merely an aggregate of transactions measured at various wholesale and retail prices. It should also be remembered that a substantial proportion of the food-manufacturing group consists of butter, cheese, meat, etc., which are sold overseas.

There is a tendency in company accounting to show merely the difference between interest received and interest paid as either a debit or a credit balance in an interest account. This remark also applies to rents received and paid. The figures shown under these headings will undoubtedly understate the true position to some extent. Incidentally rents include ground rents and royalties.

Salaries and wages paid represent the amounts charged against those accounts. A small proportion of salaries and wages is charged directly to other expenditure accounts, and consequently the figures shown above understate to some extent the amounts of salaries and wages actually paid by companies.

The amount of gross profit shown in the accounts is used in these statistics, despite the wide variations in the conception of gross profit. No attempt has been made to secure uniformity of calculation for individual companies, but of course the total gross profit for each industry should correspond with that industry's average conception of gross profit. In some industries, such as the transport industry, it is not normal practice to calculate gross profit, and in such cases the gross profit is recorded in these statistics as nil. Estimates of the amount of gross profit were, however, made when any company did not calculate the gross profit, and it was the custom of the industry concerned to show this figure.

The abridged version of the full industry classification for which data are given in this Section does not reveal the invididual industries where the gross profit is nil. Apart from “Mining and Quarrying”, “Commerce, other” and “Transport, etc.”, there are a number of industries included in “Services, community” which do not show gross profit.

The paid-up capital and shareholders' funds for 1953–54 are given in the two following tables.

Number of AssessmentsAssessable Income*Dividends PaidShareholders' Funds
TotalPaid-up Capital

* Excluding proprietary income.

 £(000)£(000)£(000)£(000)
Agriculture and livestock production7202,02456211,8246,653
Forestry, hunting, and fishing93133482,8232,377
Mining and quarrying1674651413,7322,678
Manufacturing—
  Food, drink, and tobacco90210,7641,71655,83729,400
  Apparel, textiles, and footwear8413,8281,05821,31410,941
  Metals and metal products1,5805,9231,71526,88113,903
  Other2,22012,7803,43370,79142,049
Construction1,4314,3431,27513,3985,627
Electricity, gas, water, and sanitary services211,451838,4922,116
Commerce—
  Wholesale and retail trade7,96636,65511,983162,52779,715
  Other2,86112,9363,313109,08855,417
Transport, storage, and communication1,2232,97677918,74310,515
Community services1,9692,6431,23718,2367,033
Other or undefined134 4547
      Totals22,00796,92427,343523,733268,471

For the purposes of these statistics, the shareholders' funds of a company are defined, briefly, as the amount which would be available to shareholders if the assets were realized and the liabilities discharged at the net values shown in the balance sheet. In the case of New Zealand branches of overseas companies, either the paid-up capital and the shareholders' funds are apportioned on some equitable basis, or the balance of the branch's head office account is taken. The capital loan liabilities of those Government Departments which are included in these statistics have been omitted from both paid-up capital and shareholders' funds. Advances from shareholders have been added to shareholders' funds and advances to shareholders deducted.

An analysis of companies by amount of paid-up capital for 1953–54 discloses the position shown in the next table. Those with no paid-up capital are mostly industrial and provident societies, clubs, associations, and similar incorporated bodies.

Amount of Paid-up CapitalNumber of ReturnsPaid-up CapitalShareholders' FundsDividends Paid
£ £ £(000)£(000)£(000)
Nil1,462 21,472206
0- 4991,2812894,947408
500- 9991,9061,226,136514
1,000- 1,9994,0905,14517,8881,991
2,000- 2,9992,9006,45717,1231,457
3,000- 3,9992,0066,40814,3761,125
4,000- 4,9991,2705,34511,057807
5,000- 5,9991,3456,85414,990933
6,000- 6,9998245,06410,081590
7,000- 7,9995073,6857,172498
8,000- 8,9993993,2686,008493
9,000- 9,9992822,6114,626247
10,000- 19,9991,87223,51145,2152,455
20,000- 29,99969415,72028,8361,559
30,000- 39,9992859,24915,368844
40,000- 49,9991657,05612,935575
50,000- 59,9991357,04013,729734
60,000- 69,999784,8818,407440
70,000- 79,999614,4718,368476
80,000- 89,999322,6423,879214
90,000- 99,999242,2554,011219
100,000- 199,99918122,72843,8902,362
200,000- 299,9997416,97025,6371,108
300,000- 399,9994013,36723,9071,097
400,000- 499,999187,80212,185949
500,000- 599,9992110,97419,906976
600,000- 699,99995,6097,803544
700,000- 799,99996,70810,940357
800,000- 899,99932,4503,616103
900,000- 999,9996,6289,837400
1,000,000 and over285,06189,3872,663
      Totals22,007268,471523,73327,343

An increasing number of companies are now raising the paid-up capital to a sum more in keeping with the amount of capital required to finance transactions at present price levels. This is being done partly by the introduction of further capital and partly by the capitalization of some of the reserves created by the retention of profits.

ASSETS OF COMPANIES.—A feature introduced for the [1953–54 income year was the collection of information on assets for a sample group of companies. The sample comprised a random selection of ten per cent of the number of companies, plus a complete coverage of those which were deemed to fall into a “large company” category.

The estimates for the various classes of assets are given in the table which appears hereunder. At present these estimates should be regarded as being only approximately correct. The figures show the position at the close of the income year. Estimates of the assets of clubs, associations, etc., which form part of the “community services” group, and the assets of the “other or undefined” group have not been included.

£(million)

Industry GroupLand and BuildingsOther Fixed AssetsInvestmentsClosing StocksOther Current AssetsTotal
Agriculture and livestock production7.982.021.463.172.6917.32
Forestry, hunting, and fishing0.200.51 0.060.150.92
Mining and quarrying1.016.600.250.393.6611.91
Manufacturing—
Food, drink, and tobacco22.4420.356.8628.7625.92104.33
Apparel, textiles, and footwear5.015.881.1214.9710.3437.32
Metals and metal products6.446.681.3715.7612.8943.14
Other20.8033.857.8226.8625.24114.57
Construction3.126.191.809.307.7628.17
Electricity, gas, water, and sanitary services0.3896.390.380.806.74104.69
Commerce—
Wholesale and retail trade40.8725.7321.44118.15116.96323.15
Other35.552.13371.940.30308.08718.00
Transport, storage, and communication4.8612.552.370.6011.1531.53
Community services10.747.107.641.448.1335.05
      Totals159.40225.98424.45220.55539.711,570.10

Several points about the classification adopted should be noted. “Other current assets” was used to some extent as a residual class. It includes assets such as goodwill, establishment accounts, etc. Other nominal assets, such as accumulated losses and similar accounts, were excluded from the assets and deducted from shareholders' funds.

Where the balance sheet did not distinguish between land and buildings and other fixed assets, the whole amount was included in the class deemed the greatest part in value of the assets.

Loans secured by mortgages of property were treated a investments. Loans and advances by banks on overdraft, by finance companies for hire purchase credit, etc., and others of a like nature were classed as “other current assets”. This is particularly important in the “commerce-other” industry group which includes banks, insurance companies, holding companies, government lending institutions, etc.

It has been previously mentioned that the term “companies” includes Government departments which are liable to pay income tax, and that the capital loan liabilities of these departments are not included in either paid-up capital or shareholders' funds. These capital loan liabilities are, however, represented by investments which appear in the assets. This should be remembered if the ratios of shareholders' funds to total assets are being examined.

NON-RESIDENT TRADERS.—A non-resident trader is defined as any person who, being in New Zealand, carries on business there without having any fixed and permanent place of business or abode in New Zealand. Returns made by agents for non-resident traders, and returns by the consignees of overseas goods sold on consignment account, are included in this class. Non-resident traders are now included in the statistics either as individuals or companies, as the case may be.

CENSUS STATISTICS OF INCOMES.—A table showing for the 1951 census the income classification of the total population was given on page 864 of the 1954 issue of the Year-Book. Data are not yet available for the 1956 Census.

Chapter 36. SECTION 36—PRICES

Table of Contents

PRICE FIXATION.—In New Zealand, as in other countries, regulation of prices by governmental control has been a feature of economic policy over a considerable period of years. Nation-wide control of prices of essential commodities was resorted to during the First World War, the motives behind legislation and regulations towards that end being the necessity of purchasing at reasonable prices commodities required for war purposes, and the protection of the consumer from the full force of the abnormal rises in prices, caused by the scarcity of many necessary commodities.

The administration of these price-fixing measures was in the hands of the Board of Trade set up under the provisions of the Cost of Living Act 1915, regulations being issued from time to time fixing maximum prices for various commodities—e.g., sugar, timber, wheat, etc. The Board of Trade Act 1919 (a consolidation and amendment of the pre-existing legislation) contained provisions for the establishment of the Department of Industries and Commerce and for a Board of Trade, the Board to consist of the Minister of Industries and Commerce (President) and not more than four other members. By an amendment in 1923 the Board was abolished, its functions being taken over by the Minister. Authority was also taken under the Act “for the establishment of fixed minimum or maximum prices or rates for any classes of goods or services or otherwise for the regulation or control of such prices or rates.” The Act also included provisions especially aimed at the prevention of profiteering.

The control of prices initiated during the war years continued in some instances well into the post-war period, the dates of cessation of control in certain important individual cases being: bacon and ham, February 1920; butter, August 1921; sugar, August 1923. Control of prices of building materials was resorted to in 1920 and 1921, during a period of acute shortage of these materials.

Wheat, flour, and bread prices have been controlled almost without intermission since 1914–15, superphosphates since October 1931, and motor spirits from 1933. Road services have been subject to regulation in regard to fares and freight rates since 1931; aircraft fares are also regulated. [For fuller details see pp. 785–786 of the 1940 Year-Book.]

A Prevention of Profiteering Act was passed in 1936, prohibiting the making of unreasonable increases in the prices charged for goods and services.

In June 1939 a Price Investigation Tribunal was constituted under the Board of Trade Amendment Act 1923, and regulations were made under this Act placing restrictions on increasing prices of goods and services without prior application to the Tribunal; prices were also to be fixed by the Tribunal for goods that had not previously been on the market.

Price Regulation During Second World War.—Pursuant to a Proclamation of Emergency under the Public Safety Conservation Act, regulations were made on 1 September 1939 with the object of stabilizing prices. These regulations provided that prices of goods and services should not be raised above the prices ruling on 1 September 1939, except as might be specifically authorized by the Minister of Industries and Commerce. A clause in the regulations also prohibited the hoarding of goods. These regulations were superseded by the Control of Prices Emergency Regulations of 20 December 1939, which constituted the Price Tribunal.

Foodstuffs generally, and sugar, wheat, and flour specifically, were brought under the control of the Government by emergency regulations made on 4 September 1939.

In October 1940 the Economic Stabilization Conference (which the Government had convened) put forward recommendations designed to stabilize prices, wages, and costs. In furtherance of these recommendations the retail prices of thirty-eight commodities, comprising the more important foodstuffs, clothing, fares, fuel, and lighting, were stabilized as from 1 September 1941 and an Economic Stabilization Committee was set up.

In December 1942, as a result of the deliberations of this Committee, price stabilization measures were widely extended. A varied range of essential items of household consumption was selected, and their prices stabilized; food, clothing, hardware, furniture, stationery, etc., were all represented in this list of approximately 110 items. In the same month the Economic Stabilization Emergency Regulations 1942 were issued, under which the Committee was reconstituted as the Economic Stabilization Commission, and provision made for the stabilization of weekly rentals, wage rates, etc.

The principal new feature of price control in 1943 was the fixation of maximum retail prices for many kinds of vegetables, apples, pears, and certain other fruits; these maxima made full allowance for seasonal variations.

No new element of control was introduced in 1944, 1945, or 1946, as the price orders of those years either revised earlier orders or covered additional items.

POST-WAR PRICE REGULATIONS.—The Control of Prices Act 1947 consolidated the powers and functions formerly exercised mainly under Emergency Regulations. It defined the general duties and functions of the Price Tribunal as the fixing of prices for goods and services, the investigation of complaints with respect to prices, maintenance of a survey of the prices of goods or services, the institution of legal proceedings for offences in relation to prices, and the taking of such other steps as in its opinion might be necessary to prevent profiteering or the exploitation of the public. It provided that, except in special circumstances, the sittings of the Tribunal should be open to the public.

The Price Tribunal has power to—

  1. Make Price Orders fixing, in such manner as it thinks fit, the actual or the maximum or the minimum price for any goods sold in a specified market and under specified conditions. Price Orders are published in the New Zealand Gazette, and must generally be displayed in any shop where the goods to which they relate are sold.

  2. Authorize selling prices, which may be of general or special application.

Since the passing of the Act the Tribunal has, in the case of many commodities, issued Price Orders which prescribe that maximum prices are to be calculated by adding specified percentages to costs. In other cases, where there has been a general cost increase resulting from the reduction or removal of subsidies, the raising of freight charges, or a wage increase prescribed by a general order of the Court of Arbitration, the position has sometimes been met by the issue of General Price Adjustment Orders under which most manufacturers have been permitted to recover by means of price increases the whole or a specified part of such increased costs.

Since 1948 a policy of progressive decontrol has been followed: lists of items freed from direct price fixation (although remaining subject to profiteering and other provisions of the Act) were published from time to time, but all goods and services not specifically exempted in this manner remained subject to control. However, in accordance with powers provided under an amendment to the Act, a noteworthy change in the system of control became effective on the gazetting of the Control of Prices (Positive List) Notice 1955 on 14 March 1955. The system of general control with specified exemptions was thereby replaced by the control of specified items only—all goods or services not on the Positive List being decontrolled. Many additional items have been decontrolled since the Positive List was first issued.

The amendment also made provision for the delegation of pricing powers to the Secretary of Industries and Commerce, subject to a right of appeal to the Tribunal.

A further amendment to the Act in October 1956 transferred from the Price Tribunal to the Minister the function of exempting goods or services from price fixation.

Control of tea prices, which had been lifted in 1950, was reimposed in January 1955 following considerable increases in the overseas price.

Towards the end of 1951 an Advisory Committee, consisting of representatives of the business community meeting under the chairmanship of the Director of Price Control, was set up to advise on matters of procedure and administration, and to promote mutual confidence and understanding. Other Advisory Committees have since been established to deal with the pricing problems of particular industries, and representatives of the business groups concerned meet under the chairmanship of a senior officer of the Department of Industries and Commerce.

It should be observed that certain prices controlled under other legislation do not come within the scope of the Control of Prices Act 1947. For example, the maximum price of motor spirits is fixed by Order in Council (on the recommendation of the Minister of Industries and Commerce) under the Motor Spirits (Regulation of Prices) Act 1933; while, in certain circumstances, the Tenancy Act 1955 provides for the fixation, on application, of rents by a Magistrate's Court or by a Rents Officer of the Department of Labour. As a further illustration the Transport Amendment Act 1950 provides for the fixation of passenger fares and freight charges on services, other than those operated by local authorities, by the Commissioner of Transport, subject to a right of appeal to a Transport Charges Appeal Authority.

Although the earlier legislation providing for an Economic Stabilization Commission was repeated in the Economic Stabilization Act of 1948, there are at present (March 1957) no appointed members of the Commission, its functions being discharged by the Minister in Charge of Stabilization.

Marketing of Major Primary Commodities.—Certain fields of price fixation are intimately connected with the functions of the marketing authorities (and with the functions of the former Marketing Department), although the relevant price orders are generally issued by the Price Tribunal. This topic is treated at length in Section 19 of this issue.

PRICE STATISTICS.—Actual prices of many goods and services at various levels are collected periodically by the Department of Statistics. The fields covered are retail prices, wholesale prices, export prices, import prices, and share prices. In the case of retail and wholesale prices, direct inquiry is made (generally from sellers), export and import prices (or, strictly, unit values) being mainly derived from trade statistics and share prices from records of the stock exchanges, while, in addition, average prices of many materials and products of manufacture are available from the statistics of industrial production. Some retail prices are given in the following table, and a wider selection of both retail and wholesale prices is published in the annual Report on Prices, Wages, and Labour Statistics; the chief use made of the prices collected, however, is in the compilation of price index numbers. These are, fundamentally, weighted averages of price ratios, the weighting being so arranged that the index numbers give a general indication of price movements in the field covered. The usual technique employs fixed weights with, however, provision for revision of the weighting pattern at suitable intervals.

Retail Prices.—Wellington retail prices at 15 November 1956 of a number of the commodities which enter into the Consumers' Price Index are shown hereunder.

ItemUnitPrice
 s.d.
Milk, fresh, deliveredPint04 3/4
Butterlb.20
Cheese, mildlb.111 3/4
Bread28 oz. loaf07 1/2
Flour25 lb. bag67 3/4
Oatmeal5 lb. bag50
Ricelb.010 1/2
Sugar6 lb.45 1/4
Honeylb. carton21
Eggs (in carton)Dozen40
Tealb. packet74
Cocoa1/2 lb. packet29 1/2
Coffee, pure ground, looselb.80 3/4
Jam, raspberry28 oz. tin42 1/2
Salt5 lb. bag20 1/4
Baked beans16 oz. tin18 1/2
Tomato sauce10 oz. bottle22 1/2
Tomato soup11 oz. tin12 1/4
Milk powder, full cream2 1/2 lb. tin70 1/2
Aerated water10 oz. bottle06
Chocolate3 oz. tablet13
Ice-creamPint block19
Applelb.14 1/4
Orangeslb.12
Cabbagelb.010
Carrotslb.13/4
Peaches, canned30 oz. tin41/4
Peas, fresh, frozen12 oz. packet29
Onionslb.12 1/4
Potatoes, main croplb.16
Beef—
Sirloinlb.27 1/4
Prime ribslb.24 1/2
Rump steaklb.30
Mutton—
Leglb.25 1/4
Forequarterlb.15 1/2
Chopslb.24 1/4
Pork—
Leglb.211 1/2
Chopslb.211 1/2
Sausages, beeflb.14 3/4
Ham, cooked, slicedlb.611 3/4
Bacon, sidelb.310 3/4
Fish—
Tarakihi, filletslb.29
Groper (hapuku), pieceslb.23
Sole or flounder, guttedlb.29
Smoked fishlb.26
Herrings, canned14 oz. tin111 3/4
Coal, domestic1/4 ton400
Firewood1/28 cord63 1/2
Coke1 cwt.104 3/4
Gas (cooking)1,600 cu. ft.170
Electric current, excluding water heating140 kWh112 1/4
Electric current, including water heating380 kWh247 1/2
Men's—
Suit, ready madeEach3517
Sports coat, ready madeEach2192
Raincoat, woollen gabardineEach2774
Overcoat, oilskinEach1797
Trousers—
WorkingPair255
SportsPair946
Shirt—
NegligeEach351
WorkingEach1811
Singlet—
All woolEach287
Cotton, athleticEach810
Pullover, all woolEach341
Pyjamas, flannelettePair2510
Socks, wool and nylonPair910
Hat, fur feltEach478
Bathing costume, all woolEach331
HandkerchiefEach39
Boys'—
Sports coat, ready madeEach820
Trousers, shorts, tweedPair228
Raincoat, proofed cottonEach10211
Shirt, grey flannelEach263
Pullover, all woolEach382
Three-quarter hose, schoolPair92
School capEach146
Women's—
Costume, coat and skirt, ready madeEach3626
Raincoat, woollen gabardineEach3262
Skirt, worstedEach1304
Cardigan, all woolEach664
Smock, cotton printEach2910
Stockings—
Fully fashioned, nylonPair119
Pure silk and rayonPair108
Underslip, nylonEach587
Vest, silk and woolEach122
Panties, interlockPair83
Nightdress, locknitEach331
Nightdress, winceyetteEach341
CorsetsEach743
BrassiereEach180
Girls'—
Gym frock, sergeEach746
Blazer, all woolEach604
Blouse, cotton, long sleevesEach215
Pyjamas, winceyettePair249
Bloomers, interlockPair62 1/4
Stockings, lislePair106
Ankle sox, cotton and rayonPair37
Beret, schoolEach91 1/4
Infants'—
Nursery squaresDoz.4611
Baby wool1 oz.29
Piece goods—
Clydella, plainYard86
Velour coatingYard287
Figure printYard61 3/4
Opaque nylonYard134
RayonYard79
Wool, hand knitting1 oz.26
Drapery—
Blankets, singlePair1580
Sheets, singlePair451
Towel, turkishEach81 3/4
Tea towel, linenEach44
Men's—
Boots, heavyPair677
Shoes—
HeavyPair560
LightPair823
SandshoesPair1011
Slippers, leatherPair3311
Shoe repairsPair154
Boys'—
Football bootsPair428
Shoes, heavyPair440
SandalsPair271
Gum bootsPair291
Shoe repairsPair115
Women's—
Shoes—
HeavyPair660
LightPair717
Slippers, feltPair1810
Shoe repairsPair109
Girls'—
Shoes—
SchoolPair3611
LightPair409
Shoe repairsPair68
Infants'—
Shoes, glace kidPair226
Tallboy, four-drawerEach2565
Bedstead and rails 4 ft. 6in.Each1965
Mattress—
4 ft. 6 in. wireEach11410
4 ft. 6 in. kapokEach3080
4 ft. 6 in. foam rubberEach5320
Pillow, 2 lb. kapokEach191
Child's cotEach1472
Dining—
Table, drawleafEach3202
ChairEach1250
Sideboard, leadlightEach6116
Kitchen—
TableEach826
ChairEach262
Suite, upholsteredEach1,2690
Linoleum, inlaidYard278
Carpet, Axminster, 27 in.Yard470
Feltex, marbled, 5 ft.Yard488
Hammer, carpenter'sEach204
Spade, garden,Each333
Fork, gardenEach267
Axe, 4 lb.Each2811
Broom, hair and fibreEach145
Mop, white cottonEach82
Scrubbing brushEach30
Bucket, galvanized, 12 in.Each911 1/2
Electric light bulb, 60 wattEach19
Pressure cooker, 10 1/4 pintEach1506
Saucepan, aluminium, 8 in.Each205
Pie dish, enamel, 11 in.Each80
Cup and saucer, tea size1/2 doz.188
Plate, 10 in.1/2 doz.186
Preserving jars, glass, quart sizeDoz.130
Knives, table, stainless1/2 doz.4210
Forks, table, E.P.N.S. A11/2 doz.364
Doormat, coir, 24 in. x 18 in.Each127
Soap—
Laundry2.8 lb. bar33
PowderStandard pkt110
DetergentPacket18
Starch1 lb. packet21
Kerosene26 oz. bottle14
Boot polishMedium tin010 1/2
Toilet paperRoll011 1/2
Household cleaning pasteTin20
Lunch wrapRoll24
Torch battery, dry cellEach011
RefrigeratorEach1,9900
Washing machineEach1,2426
Vacuum cleanerEach4876
Radio receiving setEach3783
Electric—
RadiatorEach1050
JugEach526
ToasterEach726
IronEach676
RazorEach1576
Lawnmower, hand typeEach1286
Sewing machineEach1,0276
Bicycle—
Men's, sports roadsterEach4466
TyreEach170
TubeEach711
PerambulatorEach2876
Paint, lead, final coat1 gallon tin536
Wallpaper, EnglishRoll80
Tennis—
RacquetEach550
BallsPair63
Meccano setEach350
Teddy bearEach4711
Attache case, fibreEach156
Watch—
Wristlet, men'sEach1850
Repair feeEach250
Alarm clockEach316
Cinema admissionSeat30 1/2
Football—
AdmissionSeat16
SubscriptionEach106
Golf green feesEach30
Library subscriptionBook08
Radio licenceEach300
Dry cleaning, men's suitSuit86
Laundering, sheetEach09
Hair cut—
MenEach26
WomenEach30
Hair set, womenEach66
Permanent waveEach350
SpectaclesPair950
Dental—
ExtractionEach176
FillingEach126
DenturesSet4800
Medical (excess over social security)—
Consultation feeEach50
Specialist feeEach136
Private, general hospitalDay256
Union dues (annual subscription)—
EngineersMale400
WorkersMale520
Railway servantsMale350
Shop assistantsMale280
Shop assistantsFemale180
Clerical workersMale300
Clerical workersFemale216
Face powder, block typeEach36
Vanishing creamJar36
LipstickEach411
Baby talcum powderTin23
Bobby pinsCard of 1003
ToothbrushEach111
ToothpasteLarge tube25
Toilet soapMedium cake07
Hair creamJar39
Razor bladesPacket of 1032
AspirinPacket of 2715
Antiseptic healing creamTin26
DisinfectantBottle26
Popular bookEach33
DictionaryEach66
Writing padEach16
EnvelopesPacket of 20010
Camera filmEach26
Developing and printing filmPer film310
Tobacco2 oz.38
CigarettesPacket of 1010
PetrolGallon33

International Comparisons.—The two tables next following provide comparisons of retail and wholesale prices respectively between New Zealand and certain other countries. All the prices, which relate generally to the month of September 1956, have been converted into New Zealand currency. In the first table prices shown for the United States of America are exclusive of sales tax.

COMPARISON OF RETAIL PRICES OF BASIC FOODSTUFFS

ItemUnitNew Zealand (Wellington) September 1956Australia (Sydney) September 1956South Africa (Cape Town) September 1956Great Britain (London) September 1956Canada (Dominion Average) September 1956United States of America (Average Fifty-six Large Cities) July 1956

* 1 3/4 lb.

† Not available.

‡ At price for 3 lb. lots.

§ September Quarter, 1956.

|| Cooking quality.

¶ Sirloin.

** Loose.

Source:

Australia: Commonwealth Statistician.

South Africa: Bureau of Census and Statistics.

Great Britain: N.Z. High Commissioner.

Canada: Dominion Bureau of Statistics.

U.S.A.: Monthly Labor Review.

  s.d.s.d.s.d.s.d.s.d.s.d.
Bread2 lb.07 1/2011 3/401008 1/2*111 3/426 3/4
Flour25 lb.67 3/4121 1/29 812101311 3/4191 
Tealb.7454 1/27116692 
Coffeelb.81 1/2** 55 3/471186 3/476
Sugarlb.0908050808 1/409
Milk (fresh)Quart09 1/215 1/2111316 1/220 3/4
Butterlb.2037 3/4343147 1/251 3/4
Cheeselb.111 1/227293042 1/441
Baconlb.310 1/2510 1/4310 3/440 1/26242 1/4
Pruneslb.210 3/4 22 1/227 27
Canned peaches30 oz. tin41 3/428 3/4 31 1/231 3/426 1/4
Beef—rib roastlb.21 1/224 3/4§242858411
Mutton—Leglb.25 1/219 1/2§21036510 1/251
Pork—leglb.31 1/441 1/4§27 1/2310  
chopslb.211 1/241 3/4§211 1/24452 1/261 1/2
Margarinelb.17 1/2||21 1/4 192721

COMPARISON OF WHOLESALE PRICES OF CERTAIN COMMODITIES

ItemUnitNew Zealand, September 1956South Africa, August 1956Great Britain, September 1956Canada, September 1956United States of America, September 1956

* Not available.

† Sheet.

‡ December 1956 price 5s. 2d. gal.

Source:

South Africa: Monthly Bulletin of Statistics.

Great Britain: The Economist—Intelligence Unit.

Canada: Prices and Price Indexes—Dominion Bureau of Statistics.

U.S.A.: Survey of Current Business.

  £s.d.£s.d.£s.d.£s.d.£s.d.
WheatBush.0129015110121101280171
OatsBush.0106*082 1/4076 1/4064 1/2
FlourTon15523361035724212114343
SugarCwt.313222936221353810
Butterlb.0110 1/2030 1/20210 1/2043 1/4044 1/2
Cheeselb.017 1/4025027 1/4*029
Motor spiritsGal.0210 3/402100310018010 3/4
Copper (electrolytic)Cwt.29903016015301487151610
LeadCwt.8821011651755140680

RETAIL PRICES INDEX NUMBERS.—A historical survey of retail prices in New Zealand will be found on pages 1007–1016 of the 1947–49 Year-Book, including an account of the various series of official index numbers of retail prices in New Zealand which had been current up to 1949, while pages 998–1003 of the same volume provide a brief description of the original Consumers' Price Index initiated in that year. For fuller details, however, reference should be made to the Special Supplement to the October–November 1949 issue of the Monthly Abstract of Statistics entitled “Retail Prices in New Zealand with special reference to the Consumers' Price Index”. This index has now been completely revised, a full description of the revision being published as a special supplement to the November 1956 issue of the Monthly Abstract of Statistics under the title “Consumers' Price Index, 1955 Revision”. Extracts from that publication are now reprinted as an Appendix to this Year-Book (see pages 1214–37). For the complete regimen (i.e., the schedule of items comprised with comparative weights) as well as for a continuation up to 1955 of the historical survey of retail prices, direct reference should be made to the 1956 special supplement, lack of space precluding a repetition of these details in the present volume.

Consumers' Price Index Numbers.—The tables which now follow relate to the revised Consumers' Price Index; this is indicated by the comparison base which is no longer the first quarter of 1949 but the calendar year 1955. The title “Consumers' Price Index” is, however, retained unamended despite the revision.

The first table supplies all-groups index numbers and index numbers of individual groups and sub-groups for twenty-one towns combined in respect of the calendar years 1955 and 1956 and of each of the four quarters of 1956. The revised group and sub-group weights are also shown as percentages of the base expenditure.

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS (ALL GROUPS), TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, 1955 (= 1000)

FoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Groups—
  Percentages of base expenditure32.2615.4010.6015.438.7617.55100.00
Calendar Year—
  19551,0001,0001,0001,0001,0001,0001,000
  19561,0571,0551,0139991,0161,0301,035
Quarter ended—
  1956–31 March1,0151,0321,0071,0011,0091,0091,013
  30 June1,0431,0481,0119981,0151,0231,027
  30 September1,0921,0611,0161,0001,0151,0421,049
  31 December1,0781,0791,0189981,0261,0461,049
Meat and FishFruits, Vegetables, and EggsOther FoodsRentHome OwnershipFuel and LightHome FurnishingDomestic Supplies and ServicesClothingFootwearPublic TransportPrivate TransportTobacco and AlcoholOther SuppliesOther ServicesAll Groups
Sub-groups—
  Percentages of base expenditure8.248.0315.994.6610.743.204.702.7013.062.372.486.288.534.904.12100.00
Calendar Year—
  19551,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
  19569951,2311,0021,0481,0581,0151,0101,0169921,0391,0071,0201,0101,0351,0661,035
Quarter Ended—
  1956—
  31 March1,0081,0451,0041,0241,0361,0101,0031,0129961,0309991,0131,0001,0181,0161,013
  30 June9861,1919971,0451,0501,0121,0081,0149911,0391,0081,0171,0131,0311,0341,027
  30 September9891,3751,0021,0511,0651,0171,0141,0179931,0391,0081,0181,0131,0391,1041,049
  31 December9951,3121,0031,0731,0821,0221,0151,0209891,0481,0131,0311,0131,0511,1081,049

In the table which follows, monthly figures where available are shown for all index towns combined.

CONSUMERS' PRICE INDEX.—MONTHLY INDEX NUMBERS (FOOD), TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, 1955 (= 1000)

Meat and FishFruits, Vegetables, and EggsOther FoodsAll Food
Calendar Year—    
  19551,0001,0001,0001,000
  19569951,2311,0021,057
Month—    
  1956—January1,0121,0261,0021,011
  February1,0101,0431,0041,015
  March1,0011,0671,0051,019
  April9931,1389951,030
  May9851,2079961,046
  June9821,2271,0001,052
  July9831,2751,0031,066
  August9851,4271,0031,104
  September9991,4231,0011,106
  October9991,3601,0021,090
  November9931,3771,0031,093
  December9921,1981,0061,050

The following tables distinguish individual towns and groupings of towns, but the sub-group indices are omitted; the periods covered are the same as in the preceding table. Attention is called however to the two-fold method of presentation: in the first place current prices in each town are compared with prices in the same town during the base period; in the second current prices in each town are compared with average prices over all the twenty-one towns in the base period.

CONSUMERS' PRICE INDEX.—ANNUAL INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS Base: Weighted average each town, and grouping, separately, 1955 (= 1000)

Calendar Year 1955Calendar Year 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland1,0001,0001,0001,0001,0001,0001,0001,0591,0581,0189881,0151,0311,035
Wellington-Hutt1,0001,0001,0001,0001,0001,0001,0001,0551,0601,0171,0001,0221,0311,036
Christchurch1,0001,0001,0001,0001,0001,0001,0001,0601,0441,0061,0101,0121,0281,034
Dunedin1,0001,0001,0001,0001,0001,0001,0001,0631,0471,0131,0131,0101,0291,037
  Four chief centres1,0001,0001,0001,0001,0001,0001,0001,0591,0541,0159981,0151,0301,035
Hamilton1,0001,0001,0001,0001,0001,0001,0001,0541,0511,0119941,0171,0311,033
Gisborne1,0001,0001,0001,0001,0001,0001,0001,0621,0711,0131,0061,0161,0311,039
Napier-Hastings1,0001,0001,0001,0001,0001,0001,0001,0621,0541,0081,0081,0181,0311,037
New Plymouth1,0001,0001,0001,0001,0001,0001,0001,0491,0671,0211,0051,0171,0311,036
Wanganui1,0001,0001,0001,0001,0001,0001,0001,0451,0551,0141,0121,0161,0311,033
Palmerston North1,0001,0001,0001,0001,0001,0001,0001,0541,0621,0159981,0181,0311,035
Nelson1,0001,0001,0001,0001,0001,0001,0001,0541,0541,0081,0111,0161,0281,034
Timaru1,0001,0001,0001,0001,0001,0001,0001,0571,0711,0119971,0201,0281,036
Invercargill1,0001,0001,0001,0001,0001,0001,0001,0421,0371,0101,0041,0181,0291,028
  Nine provincial towns1,0001,0001,0001,0001,0001,0001,0001,0531,0571,0121,0031,0171,0301,034
Whangarei1,0001,0001,0001,0001,0001,0001,0001,0581,0629909881,0211,0311,032
Tauranga1,0001,0001,0001,0001,0001,0001,0001,0541,0471,0039941,0211,0311,032
Rotorua1,0001,0001,0001,0001,0001,0001,0001,0601,0639979941,0161,0311,035
Masterton1,0001,0001,0001,0001,0001,0001,0001,0431,0581,0211,0001,0201,0311,032
Blenheim1,0001,0001,0001,0001,0001,0001,0001,0501,0619911,0111,0171,0281,032
Greymouth1,0001,0001,0001,0001,0001,0001,0001,0461,0451,0091,0101,0161,0281,031
Ashburton1,0001,0001,0001,0001,0001,0001,0001,0611,0531,0069971,0201,0281,034
Oamaru1,0001,0001,0001,0001,0001,0001,0001,0711,0641,0111,0131,0201,0291,042
  Eight other towns1,0001,0001,0001,0001,0001,0001,0001,0551,0561,0031,0001,0191,0301,033
  Twenty-one towns combined1,0001,0001,0001,0001,0001,0001,0001,0571,0551,0139991,0161,0301,035

CONSUMERS' PRICE INDEX.—ANNUAL INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS

Base: Weighted average twenty-one towns, 1955 (= 1000)

Calendar Year 1955Calendar Year 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland9991,0181,0051,0311,0001,0021,0081,0591,0771,0231,0191,0151,0331,043
Wellington-Hutt1,0131,0479939851,0009981,0081,0691,1091,0109851,0221,0291,045
Christchurch9911,0009889711,0001,0069921,0511,0449949811,0121,0341,027
Dunedin9789849369991,0009889821,0401,0309491,0121,0101,0171,018
  Four chief centres9991,0189911,0041,0001,0001,0021,0571,0731,0061,0021,0151,0301,037
Hamilton1,0249589759751,0001,0029951,0791,0079859691,0171,0331,028
Gisborne9989521,1149981,0009981,0031,0591,0191,1281,0041,0161,0291,043
Napier-Hastings9599401,0499961,0009989821,0189901,0571,0051,0181,0291,018
New Plymouth9889721,0049891,0009999901,0371,0371,0259941,0171,0201,026
Wanganui1,0159321,0229931,0009989951,0619831,0361,0051,0161,0291,028
Palmerston North1,0209841,0219971,0009981,0051,0741,0451,0369951,0181,0291,041
Nelson9859971,0069841,0001,0069941,0381,0511,0149951,0161,0341,028
Timaru9889709731,0161,0001,0049921,0441,0399841,0131,0201,0321,028
Invercargill1,0141,0061,0281,0111,0009881,0081,0571,0441,0381,0151,0181,0161,036
  Nine provincial towns1,0009661,0179941,0009999951,0531,0211,0299971,0171,0291,030
Whangarei1,0299811,0211,0311,0001,0021,0141,0881,0411,0111,0191,0211,0331,047
Tauranga1,0131,0149339751,0001,0029961,0681,0629359691,0211,0331,027
Rotorua1,0219821,0399751,0001,0021,0041,0821,0431,0379691,0161,0331,039
Masterton1,0139811,0439851,0009981,0031,0571,0381,0649851,0201,0291,035
Blenheim9819661,0299841,0001,0069901,0301,0241,0209951,0171,0341,022
Greymouth9979759769751,0001,0069901,0431,0189859851,0161,0341,020
Ashburton1,0029441,0811,0161,0001,0061,0041,0649941,0881,0131,0201,0341,039
Oamaru9819401,0369991,0009889861,0511,0001,0471,0121,0201,0161,028
  Eight other towns1,0089771,0149911,0001,0029991,0631,0311,0189911,0191,0321,033
  Twenty-one towns combined1,0001,0001,0001,0001,0001,0001,0001,0571,0551,0139991,0161,0301,035

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS

Base: Weighted average each town, and grouping, separately, 1955 (= 1000)

Quarter Ended 31 March 1956Quarter Ended 30 June 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland1,0141,0311,0099921,0081,0071,0111,0451,0501,0139881,0141,0221,027
Wellington-Hutt1,0021,0371,0111,0011,0091,0111,0101,0381,0521,0169971,0211,0261,028
Christchurch1,0281,0241,0031,0121,0071,0091,0171,0511,0391,0061,0101,0111,0221,029
Dunedin1,0411,0291,0101,0121,0051,0081,0221,0511,0381,0121,0111,0081,0211,030
  Four chief centres1,0171,0311,0081,0001,0081,0091,0131,0451,0471,0129971,0141,0231,028
Hamilton1,0161,0331,0029891,0111,0071,0111,0321,0471,0109871,0151,0221,022
Gisborne1,0031,0281,0121,0041,0101,0111,0101,0441,0761,0131,0031,0131,0261,033
Napier-Hastings1,0091,0341,0051,0061,0131,0111,0121,0431,0471,0071,0071,0161,0261,028
New Plymouth1,0061,0411,0141,0121,0111,0111,0141,0361,0611,0181,0081,0141,0251,030
Wanganui1,0031,0361,0141,0091,0111,0111,0121,0381,0471,0141,0111,0141,0261,028
Palmerston North1,0101,0391,0139951,0121,0111,0131,0361,0491,0149971,0151,0261,026
Nelson1,0001,0301,0051,0171,0101,0091,0101,0441,0511,0071,0161,0141,0221,030
Timaru1,0241,0501,0069981,0141,0091,0181,0461,0731,0109931,0181,0221,031
Invercargill1,0311,0231,0031,0041,0121,0081,0171,0251,0291,0051,0001,0161,0221,018
  Nine provincial towns1,0121,0351,0081,0021,0121,0101,0131,0371,0511,0111,0011,0151,0241,026
Whangarei1,0121,0459829921,0121,0071,0101,0431,0559869881,0211,0221,025
Tauranga1,0071,0279949891,0151,0071,0071,0411,0421,0029871,0191,0221,024
Rotorua1,0201,0529909891,0111,0071,0141,0481,0629969871,0141,0231,028
Masterton1,0041,0301,0181,0011,0151,0111,0111,0291,0611,0219971,0181,0261,027
Blenheim1,0001,0281,0021,0171,0111,0091,0101,0371,0399871,0161,0151,0221,024
Greymouth1,0141,0241,0061,0131,0101,0091,0131,0381,0401,0091,0121,0131,0221,026
Ashburton1,0241,0321,0069981,0141,0091,0161,0491,0481,0089931,0181,0221,028
Oamaru1,0381,0401,0081,0121,0141,0081,0231,0621,0551,0101,0111,0171,0221,036
  Eight other towns1,0141,0351,0001,0001,0121,0081,0121,0431,0511,0029981,0171,0231,027
  Twenty-one towns combined1,0151,0321,0071,0011,0091,0091,0131,0431,0481,0119981,0151,0231,027
Quarter Ended 30 September 1956Quarter Ended 31 December 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland1,1001,0631,0239871,0141,0431,0511,0791,0871,0289831,0231,0521,050
Wellington-Hutt1,1021,0651,0191,0041,0211,0421,0551,0771,0851,0229981,0361,0441,051
Christchurch1,0841,0531,0091,0111,0101,0391,0461,0781,0601,0061,0081,0211,0401,045
Dunedin1,0831,0471,0131,0141,0091,0421,0461,0771,0731,0171,0131,0181,0441,049
  Four chief centres1,0961,0601,0189991,0141,0421,0511,0781,0801,0219951,0251,0471,049
Hamilton1,0821,0541,0139921,0151,0431,0451,0851,0721,0181,0071,0261,0521,053
Gisborne1,0951,0851,0141,0061,0141,0421,0541,1051,0951,0141,0101,0251,0441,061
Napier-Hastings1,1011,0611,0091,0131,0161,0421,0531,0951,0751,0121,0071,0281,0441,054
New Plymouth1,0791,0741,0239951,0151,0421,0471,0761,0911,0281,0051,0261,0451,052
Wanganui1,0841,0551,0151,0151,0151,0421,0481,0571,0811,0141,0121,0261,0441,044
Palmerston North1,0991,0711,0181,0031,0161,0421,0541,0691,0901,0159961,0271,0441,047
Nelson1,0881,0611,0091,0051,0141,0391,0471,0831,0741,0101,0041,0251,0401,049
Timaru1,0771,0851,0129951,0181,0401,0461,0821,0771,0161,0021,0301,0411,050
Invercargill1,0511,0351,0141,0071,0171,0421,0331,0621,0621,0181,0051,0271,0441,042
  Nine provincial towns1,0851,0631,0141,0031,0161,0421,0481,0791,0791,0161,0051,0271,0451,050
Whangarei1,0961,0629939871,0211,0431,0471,0811,0869999831,0321,0521,048
Tauranga1,0831,0491,0049921,0191,0431,0441,0851,0711,0111,0071,0301,0521,053
Rotorua1,0871,0669989921,0141,0431,0461,0841,0721,0051,0071,0241,0521,051
Masterton1,0811,0711,0221,0041,0191,0421,0491,0601,0721,0219981,0301,0441,043
Blenheim1,0821,0709881,0051,0151,0391,0451,0801,1049891,0041,0271,0401,050
Greymouth1,0701,0471,0111,0091,0131,0391,0411,0641,0671,0111,0071,0271,0401,043
Ashburton1,0861,0581,0049951,0181,0391,0441,0861,0731,0081,0021,0311,0401,049
Oamaru1,0981,0711,0121,0141,0181,0421,0541,0861,0891,0151,0131,0301,0441,055
  Eight other towns1,0851,0611,0049991,0171,0421,0461,0771,0771,0081,0021,0291,0461,048
  Twenty-one towns combined1,0921,0611,0161,0001,0151,0421,0491,0781,0791,0189981,0261,0461,049

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS

Base: Weighted average twenty-one towns, 1955 (= 1000)

Quarter Ended 31 March 1956Quarter Ended 30 June 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland1,0131,0501,0141,0231,0081,0091,0191,0441,0691,0181,0191,0141,0241,035
Wellington-Hutt1,0151,0851,0049851,0091,0091,0191,0521,1011,0109821,0211,0241,037
Christchurch1,0191,0249929821,0071,0151,0091,0411,0399949811,0111,0281,022
Dunedin1,0181,0139461,0111,0059961,0041,0281,0229471,0101,0081,0091,011
  Four chief centres1,0151,0499991,0041,0081,0091,0151,0441,0651,0031,0011,0141,0231,030
Hamilton1,0409909779651,0111,0091,0061,0571,0039849631,0151,0241,017
Gisborne1,0019781,1271,0021,0101,0091,0131,0421,0241,1281,0011,0131,0241,036
Napier-Hastings9679711,0541,0021,0131,0099941,0009831,0561,0031,0161,0241,009
New Plymouth9941,0121,0181,0001,0111,0091,0051,0241,0311,0229961,0141,0241,020
Wanganui1,0189661,0361,0031,0111,0091,0071,0539761,0361,0041,0141,0241,023
Palmerston North1,0301,0221,0349921,0121,0091,0181,0561,0321,0369951,0151,0241,031
Nelson9851,0281,0121,0021,0101,0151,0041,0291,0481,0131,0011,0141,0281,024
Timaru1,0111,0189791,0141,0141,0131,0101,0331,0409821,0091,0181,0261,022
Invercargill1,0451,0301,0311,0161,0129961,0251,0391,0361,0331,0111,0161,0091,026
  Nine provincial towns1,0121,0001,0259961,0121,0091,0081,0371,0161,0289951,0151,0231,022
Whangarei1,0411,0241,0031,0231,0121,0091,0231,0731,0341,0071,0191,0211,0251,039
Tauranga1,0201,0419279651,0151,0091,0031,0541,0569359631,0191,0251,019
Rotorua1,0411,0321,0299651,0101,0091,0181,0691,0421,0369631,0141,0251,032
Masterton1,0171,0101,0629851,0151,0091,0141,0431,0401,0649821,0181,0241,030
Blenheim9819931,0311,0021,0111,0151,0001,0181,0031,0151,0011,0151,0281,014
Greymouth1,0119989829881,0101,0161,0031,0351,0149859861,0131,0281,016
Ashburton1,0269741,0871,0141,0141,0151,0201,0519891,0901,0091,0181,0281,032
Oamaru1,0199771,0431,0111,0149961,0091,0429911,0451,0101,0171,0091,022
  Eight other towns1,0221,0111,0149911,0121,0101,0121,0511,0261,0169891,0171,0241,026
  Twenty-one towns combined1,0151,0321,0071,0011,0091,0091,0131,0431,0481,0119981,0151,0231,027
Quarter Ended 30 September 1956Quarter Ended 31 December 1956
FoodHousingHousehold OperationApparelTransportationMiscellaneousAll GroupsFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Auckland1,1001,0831,0281,0191,0141,0451,0601,0781,1061,0331,0141,0231,0541,059
Wellington-Hutt1,1171,1481,0129891,0211,0401,0641,0911,1361,0159831,0361,0421,060
Christchurch1,0741,0539979811,0101,0461,0381,0681,0609949781,0211,0471,037
Dunedin1,0601,0309491,0131,0091,0291,0261,0531,0569521,0121,0181,0321,030
  Four chief centres1,0941,0791,0091,0031,0141,0421,0531,0761,0991,0129991,0251,0471,051
Hamilton1,1081,0109889681,0151,0451,0391,1111,0279929821,0261,0541,048
Gisborne1,0921,0321,1291,0041,0141,0401,0571,1031,0421,1291,0081,0251,0421,064
Napier-Hastings1,0559971,0581,0101,0161,0401,0341,0491,0101,0611,0041,0281,0421,034
New Plymouth1,0661,0441,0289841,0151,0411,0371,0631,0611,0339941,0261,0431,042
Wanganui1,1009831,0371,0081,0151,0401,0431,0731,0071,0361,0051,0261,0421,039
Palmerston North1,1211,0541,0391,0001,0161,0401,0601,0901,0721,0369931,0271,0421,053
Nelson1,0721,0581,0159891,0141,0461,0411,0671,0701,0169891,0251,0471,043
Timaru1,0631,0529841,0111,0181,0441,0381,0691,0449881,0181,0301,0451,041
Invercargill1,0661,0411,0421,0191,0171,0291,0421,0771,0691,0471,0161,0271,0321,051
  Nine provincial towns1,0851,0271,0319971,0161,0411,0431,0791,0431,0339991,0271,0441,045
Whangarei1,1281,0411,0141,0191,0211,0461,0621,1121,0641,0191,0141,0321,0541,063
Tauranga1,0971,0649379681,0191,0451,0391,0991,0869439821,0301,0541,049
Rotorua1,1101,0461,0379681,0141,0451,0511,1071,0531,0459821,0241,0541,056
Masterton1,0961,0511,0669891,0191,0401,0531,0741,0511,0649831,0301,0421,046
Blenheim1,0621,0331,0169891,0151,0461,0351,0601,0661,0179891,0271,0471,040
Greymouth1,0661,0219879841,0131,0461,0301,0611,0409879811,0271,0471,032
Ashburton1,0899991,0851,0111,0181,0461,0491,0891,0131,0891,0181,0311,0471,054
Oamaru1,0771,0071,0481,0131,0181,0291,0401,0651,0231,0511,0121,0301,0321,040
  Eight other towns1,0941,0361,0199901,0171,0441,0451,0861,0521,0229931,0291,0481,048
  Twenty-one towns combined1,0921,0611,0161,0001,0151,0421,0491,0781,0791,0189981,0261,0461,049

WHOLESALE PRICES.—In most countries index numbers of wholesale prices are compiled from the price data available in trade journals or from the published reports of wholesale markets. In New Zealand wholesale markets scarcely exist, and consequently price data for the wholesale-prices investigation have been collected from wholesale merchants and traders who, from the volume of the business they transact, are able to supply representative information.

Since 1917 such wholesale-price quotations have been collected monthly, the inquiry being for the most part confined to the four chief centres. A considerable volume of data as to wholesale prices was secured from merchants and traders (and in a few cases from import figures) by means of retrospective investigations covering the years 1891 to 1917, and sufficient information was secured to permit of the compilation for each year from 1891 onwards of a “general” wholesale prices index number based on the prices of 106 commodities.

Revisions of the Wholesale Prices Index were effected in 1926 and 1937, each involving a review of the list of commodities included and a reconstruction of the weighting pattern. A detailed account of the currently-published index is given in the Statistical Report on Prices, etc., for 1937. The base period is still 1926–30 (= 1000).

Indices in the present series have been prepared, annually from 1913 onwards, and monthly commencing with 1936.

WHOLESALE PRICES.—GENERAL INDEX NUMBERS—Base: 1926–30 (= 1000)

YearIndex Number
1913724
1914748
1915805
1916882
19171,024
19181,225
19191,282
19201,536
19211,428
19221,194
19231,115
19241,120
19251,114
19261,053
19271,001
1928994
1929988
1930963
1931901
1932878
1933902
1934907
1935936
1936945
19371,022
19381,036
19391,071
19401,195
19411,311
19421,416
19431,513
19441,558
19451,584
19461,589
19471,649
19481,837
19491,825
19501987
19512,315
19522,572
19532,546
19542,523
19552,551
19562,647

The Wholesale Prices Index is purely a commodity index, no attempt having been made to cover the wholesale prices of services such as the supply of electric power, transportation, etc. The index relates only to commodities consumed in New Zealand, each item included in the make-up of the index being weighted by a factor representing production, plus imports, less exports (i.e., local consumption). The wholesale prices index numbers are compiled by the aggregate expenditure method, and where applicable sales tax is included in the prices used in the index.

The following table shows annual wholesale prices index numbers by commodity groups (i.e., by origin).

WHOLESALE PRICES.—INDEX NUMBERS BY GROUPS—Base: 1926–30 (= 1000)

Group1914193919521953195419551956
1. Foodstuffs, etc., of vegetable origin—
    A. Agricultural produce6421,3282,9473,1133,0393,1505,042
    B. Fresh fruits and vegetables7641,0552,2102,3342,2792,4152,485
    C. Milled agricultural products6447761,0851,0291,0891,0871,212
    D. Other foods and groceries of vegetable origin6131,1892,4912,5842,6402,6512,641
    A–D. Four subgroups combined6341,1242,2772,3552,3822,4162,768
2. Textile manufactures5358152,9972,5912,3792,3512,324
3. Wood and wood products5821,1842,3932,6092,6882,7752,837
4. Animal products—
    A. Meats9411,0112,3842,6942,8432,7942,483
    B. Semi-manufactured animal products (not foods)8386912,3622,5482,6312,3992,315
    C. Leather6761,1292,5542,5482,5382,5182,503
    D. Other foods and groceries of animal origin7859651,5341,5421,7131,7131,719
    A–D. Four subgroups combined8439922,0522,1972,3362,3032,164
5. Metals and their products9191,2773,3723,2463,0693,2133,408
6. Non-metallic minerals and their products—
    A. Mineral oils1,1641,23519892,075198919892,056
    B. Coal5391,0852,6062,7353,0073,0203,068
    C. Other non-metallic minerals and their products6001,0232,5552,4992,5052,4912,628
    A–C. Three subgroups combined8211,1402,3292,4102,4832,4862,556
7. Chemicals and manures9548612,4472,2562,1482,1332,147
    All groups combined7481,0712,5722,5462,5232,5512,647

The respective group weights (i.e., percentages of the base aggregate expenditure) are as follows: 1 A, 3.61 per cent; 1 B, 1.43 per cent; 1 C, 4.06 per cent; 1 D, 11.70 per cent; 2, 16.43 per cent; 3, 6.18 per cent; 4 A, 7.98 per cent; 4 B, 0.72 per cent; 4 C, 1.99 per cent; 4 D, 7.48 per cent; 5, 18.18 per cent; 6 A, 6.79 per cent; 6 B, 6.29 per cent; 6 C, 2.50 per cent; and 7, 4.66 per cent.

In the next table index numbers are given by classes (i.e., by use). These index numbers should be taken for no more than they purport to represent—viz., the movement in wholesale prices of those commodities, covered by the wholesale prices inquiry, which belong to the respective classes. The figure for Class III, for instance, does not purport to show the movement in building costs, nor should that for imported items be confused with the index number of import prices. The table shows the separate index numbers for imported items and locally produced items included in the wholesale prices series.

Since 1939 the index for imported commodities had increased by 163 per cent up to 1952, and that for locally produced commodities by 109 per cent. By 1956, however, these respective percentage increases over 1939 had become 149 and 145.

WHOLESALE PRICES.—INDEX NUMBERS BY CLASSES—Base: 1926–30 (= 1000)

YearConsumers' GoodsProducers' Materials, etc.Classes I and II CombinedClasses III and IV CombinedLocally Produced CommoditiesImported CommoditiesAll Classes Combined
Class I: FoodstuffsClass II: Non-foodsClass III: Materials for Building and ConstructionClass IV: Materials for Other Industries
1914766605792791699791716772748
19391,0881,0001,2061,0571,0511,0901,0531,0841,071
19461,4221,7791,9081,5221,5661,6081,2781,8211,589
19471,5571,7741,8231,6051,6451,6531,3681,8591,649
19481,6511,9521,9681,8701,7731,8921,5012,0891,837
19491,6121,9451,9921,8641,7461,8921,5322,0441,825
19501,7442,0932,1582,0491,8842,0731,7442,1681,987
19512,0222,4572,4482,4052,1972,4142,0302,5282,315
19522,2102,6142,8072,7212,3732,7402,2002,8502,572
19532,3732,4422,7882,6352,4012,6692,3282,7092,546
19542,4252,4582,7572,5482,4392,5942,4372,5872,523
19552,3992,4402,8342,6192,4162,6672,4432,6332,551
19562,6052,4702,9432,6682,5512,7292,5752,7012,647

Of the total base aggregate expenditure, Class I represents 27.1 per cent, Class II 19.2 per cent, Class III 11.9 per cent, and Class IV 41.8 per cent, while the imported items aggregate 57.7 per cent of the total.

EXPORT PRICES.—Quarterly and annual index numbers of export prices are compiled, based chiefly on the declared export values of the principal commodities of New Zealand produce exported.

The first indices of export prices compiled in New Zealand were all of the Paasche type, being calculated from comparisons of current export values with values obtained as the products of current quantities at prices ruling in some earlier base period. At different times and for different purposes the base periods with which the comparisons were made were—

  • The decade 1890–99.

  • The year 1900.

  • The year 1901.

  • The year immediately preceding that reviewed.

The prices so-called were in fact unit-values obtained from the export trade statistics.

Comparisons between any two years, other than a pair including the base period, were to some extent vitiated since such a comparison was between different, although generally similar, selections of commodities. Due to the seasonal cycle of exports this weakness was more marked in the monthly series which was introduced to supplement a new annual series in 1925. This series used prices of the quinquennium 1909–13 as base. The weakness became still more serious when, with the collapse of prices in the depression of the nineteen-thirties, different commodities showed quite disparate price movements.

Accordingly, the method was revised in 1934 when the series which has now been superseded was introduced. The device of five-yearly moving average weights was adopted for all years subsequent to 1933, since this would ensure that the weighting pattern was influenced by long-term trends but violent fluctuations in the weights would be eliminated. The 1909–13 base was retained but new commodities and groups were introduced. The group indices were built up from the commodity prices by the use of quantity weights; in turn the group indices were combined to give the major group (all Pastoral and Dairy Produce) and all-groups series by weights representative of the values of the different groups. This method resulted in an upward bias in the major group and all-groups series since—

  1. A group with a higher than average index in any period would also have (as a result of the price movement, assuming quantities remained unchanged) a higher weight in that period;

  2. A group with a lower than average index in any period would also have (as a result of the price movement, assuming quantities remained unchanged) a lower weight in that period.

However, as long as the three important groups showed broadly comparable movements, and this was generally the case up to 1949, the resulting bias was very small. With the phenomenal rise in wool prices in the 1950–51 season the bias assumed appreciable proportions, and the method was therefore again modified, the group weights being obtained as five-yearly moving averages of the group values after these had first been “deflated” by the group price indices. While this eliminated the bias, it meant that the relative importance of the principal exports had still to be measured by the price ratios of the 1909–13 period, not those of the present or recent past.

While the old index was generally satisfactory as an indicator of changes in the level of prices which New Zealand receives for her exports, the provision of a new index had been under consideration for some time. The principal desiderata were—

  1. A currently representative weighting pattern;

  2. A method so constructed that any change in the index could be the result only of a price change;

  3. The substitution where possible of actual price quotations for unit-values obtained from the trade statistics;

  4. The provision of a unified system of commodity weights so that commodity aggregates could be readily assembled to give different types of group indices (e.g., end-use groups (foods, non-foods); primary source groups (agriculture, dairying));

  5. Separate indices for exports to the United Kingdom, the country's principal export market, as well as for exports to all countries.

The first two of these could be met only by the adoption of fixed weights based on actual exports in some recent period. The year 1952 was the latest for which complete figures were available when the work was finally put in hand and was adopted as the weighting base period. However, the figures were carefully examined, and modifications made where it was considered that they showed some departure from normal as a result of special circumstances. An example was the shipment of beef to the United States of America as a result of the “switch” agreement with the United Kingdom and Canada. The use of fixed weights necessitates that they be revised at fairly frequent intervals, and it is proposed to do this at five-yearly intervals.

The year 1952 was adopted also as the “expression base” for the index (i.e., the aggregates for that period were equated to 100).

Since it is obviously impracticable, as well as being completely unnecessary, to price every type and grade of every commodity exported, a selection had to be made of representative items to be priced. Each of these was then assigned a weight to cover not only the value of the item itself in the base period, but also the value of related items which it was assumed to represent. The apportioning of these additional weights was facilitated by first classifying the exports into the various sections, divisions, groups, and items of the Standard International Trade Classification. This classification (S.I.T.C.) has been adopted for the presentation of trade statistics for New Zealand as from the beginning of 1955. In all, the number of items of the classification priced was 60, being 95.4 per cent of the total value of exports of New Zealand produce in the base period, other than wool, which is discussed later. When the values are added of the unpriced items which these priced items are assumed to represent, this percentage is raised to 98.8. Although this additional 3.4 per cent is a very small proportion, it represented a very large number of commodities totalling in value over £5 million in the base period. The remaining 1.2 per cent (£2 million) comprises a still larger number of assorted items, mainly manufactured goods, to which it would be quite impracticable to attempt to give direct representation in the index.

By thus giving every commodity a weight, expressed as a percentage, showing its importance in the total all-groups index, indices can be assembled for any agreed grouping of commodities. Series have been prepared for—

  1. The three most important groups distinguished in the old series—namely, Dairy Produce, Meat, Wool;

  2. The major group, All Pastoral and Dairy Produce;

  3. Meat, Wool, and By-products combined, being the major group with Dairy Produce omitted;

  4. The Butter and Cheese components of the Dairy Produce group;

  5. Foods and Non-foods; these represent major classifications according to the S.I.T.C., and anticipate a request from the United Nations for the uniform publication by all countries of group indices based on broad subdivisions of this classification.

A supplementary set of weights had to be prepared also for exports to the United Kingdom, and a weighting pattern was also established for exports to all other destinations giving an integrated set of commodity and destination weights. The use of these weights applied to prices (or unit-values) for the two destinations can result in an index different from that which would be obtain, were a single set of all-destinations weights applied to prices (or unit-values) of all exports of each commodity. Tests have shown that such differences are kept to negligible proportions by the general uniformity of price movements in different markets and the relative stability of the proportion of our major exports going to the United Kingdom.

Requirement (iii) quoted was the most difficult to meet. Of our important exports, wool is the only one for which a major international market has been established within New Zealand. An index for wool prices on the basis of f.o.b. values had already been constructed from the Wool Price Index based on auction prices, and had been engrafted into the old index; it has been used with slight modifications in the new index. Our other major exports are generally (excepting the periods of inter-Governmental bulk-purchase contracts) shipped overseas to be sold in overseas markets. Comparison of the dairy produce bulk-contract prices with the corresponding trade unit-values showed excellent agreement between the two, and it was decided to retain the trade unit-values as the prices. A comparison of the meat bulk-contract prices with the trade unit-values gave less satisfactory results, and it was decided to use the bulk-contract prices (with suitable weights for combining quality and weight grades) for the period the contracts subsisted. To obtain actual price quotations for commodities other than wool and those sold under the bulk contracts would have required the setting up of a fairly elaborate price reporting organization. The reporting agencies would generally have to be the exporting firms or organizations who are responsible for filing with the Customs Department the export entries from which the external trade statistics are compiled. Under the existing law they are required to show on the entries a value based on the ruling price at the time of shipment in the overseas market to which the goods are consigned, and it is doubtful if there would be any great improvement by requiring them to report prices directly to the Department of Statistics.

In calculating the index, the price (or unit-value) for each commodity for each of the two destinations is first converted into a price-relative on base, year 1952 (= 1000), and then multiplied by its weight to produce an aggregate for addition to other aggregates, similarly obtained, for other commodities in the group. Division of this total aggregate by the sum of the commodity weights included gives the group index. The two base prices for the same commodity exported to the different destinations generally differ. Since both are equated to 1000, comparison of the two price-relatives (or indices) for a commodity will not show their relative levels but only their relative movements from the base period. In comparing the three all-groups indices (exports to All Countries, to the United Kingdom, and to Other Countries) it will be borne in mind that each represents a differently weighted selection of commodities.

The inclusion of the wool export price index based on auction prices has had the effect of severely reducing the proportion which the priced commodities included in the all-groups index represent of total exports in the base period to only 77 per cent. This is because the great number of types and grades of wool offered at auction (over 900) necessitates a limited selection being made of the more important types in order to measure the price changes. In the year 1952 these selected types comprised 52 per cent of the total sales at auction. In turn the wool sold at auction is only four-fifths of New Zealand's total wool exports, so that the selected types priced comprise only 40 per cent of these exports. Nevertheless, it is considered that the index based on auction prices is a better measure of true price movements than would be one calculated from unit-values obtained from the export statistics. Since this index is taken to represent the price of all wool exported, the proportion of total exports of New Zealand produce represented directly or indirectly in the all-groups index is correspondingly much higher, at 99 per cent.

The new series of export prices index numbers have been calculated for all periods from the first quarter of 1950, including the year ended June 1950. In order to obtain long-term comparisons, the new and the old series have been linked for the various groups, the links being made through the calendar year 1950 and the year ended June 1950. The linked series are being calculated back to the year 1914. As mentioned earlier the method of combining the group indices in the old index was revised from 1950 on; in the linked series now published this revision has been carried back to earlier years.

Gold, which was included as a commodity in the old series, has not been included in the new, gold exports being regarded as a monetary movement.

In the following tables are given export price index numbers for the calendar years 1946–56 and for years ending 30 June from 1946 to 1956.

EXPORT PRICES—INDEX NUMBERS

Base: Export Prices During 1952 (= 100)

PeriodButterCheeseAll Dairy ProduceMeatWoolMeat, Wool, and By-productsAll Pastoral and Dairy Produce
Calendar Year—
  194665666663405255
  194775797777526870
  194883878576667677
  194980798071707575
  195086868677147119107
  195194929386178144125
  1952100100100100100100100
  1953106108106109120115112
  1954108105106117126120115
  1955111111108130121120116
  195691143102130120121114
Year ended 30 June—
  194662656359374752
  194771767372466164
  194882888477647577
  194979818071657274
  195083848374958886
  195192899180218160134
  195297959794103103100
  1953104105104104116110108
  1954108109107112124118114
  195510596100128122121113
  1956108134111132115119115
PeriodAll FoodsAll Non-foodsAll Groups
To United KingdomTo Other CountriesTo All Countries

NOTE.—For purposes of comparison, old and new series described in the preceding pages have been linked in this table; the bar indicates the commencement of the new series.

* Not available.

Calendar Year—
  1946****55.5
  1947****69.8
  1948****77.5
  1949****75.0
  19508214097125105.9
  195190173112149124.3
  1952100100100100100.0
  1953106118110113111.2
  1954109123115114114.7
  1955115117119108115.6
  1956112116116109113.5
Year ended 30 June—
  1946****52.2
  1947****64.3
  1948****77.4
  1949****74.3
  19507995839185.8
  195186200118165133.1
  19529510898106100.5
  1953104113107109107.6
  1954108122113115113.8
  1955110118115109113.1
  1956118121120106115.4

The fact that the calendar year does not coincide with the farm production year is especially significant in New Zealand, since the great bulk of export goods is farm produce. For a number of purposes the portion of the foregoing tables relative to years ended 30 June is the more important, in that the figures relate to the farming year.

The next table shows export prices index numbers for all pastoral and dairy produce groups and for all groups combined in respect of each year from 1914 to 1956.

Base: 1952 (= 100)

YearIndex Numbers
All Pastoral and Dairy ProduceAll Groups Combined
19143030
19153434
19164140
19174645
19184646
19194949
19205050
19214847
19223737
19234444
19244949
19255251
19264242
19274242
19284646
19294444
19303535
19312627
19322424
19332324
19342930
19352829
19363333
19373939
19383636
19393535
19404041
19414142
19424243
19434445
19444747
19455051
19465556
19477070
19487778
19497575
1950107106
1951125124
1952100100
1953112111
1954115115
1955116116
1956114114

During the post-war period the index rose rapidly until 1951, partly by reason of advances in prices under long-term contracts with the United Kingdom Government, but more particularly as a result of the brisk demand for New Zealand wool displayed since the resumption of auction sales in September 1946, and greatly heightened during 1950 and the early part of 1951, when the whole index was dominated by spectacular advances in wool prices. In spite of continued increases in export prices of dairy produce and meat, a recession in the latter part of 1951 from the inflated wool values of the previous season, combined with some other less significant price decreases (mainly in skins), brought about a fall in the all-groups export prices index number for 1952 of almost 20 per cent as compared with 1951. The 1952 figure still, however, substantially exceeded that for every year prior to 1950, while the 1955 index was the second highest on record. It should be noted that the general upward trend in export prices was masked in 1949 by the appreciation in August 1948 of the New Zealand pound to parity with sterling.

IMPORT PRICES.—A series of import prices index numbers based on the year 1926 (= 100), and weighted in accordance with average quantities imported during the years 1926–30, was instituted in 1933. While the basic data were deficient in many respects, nevertheless the index served a very useful purpose. With the passage of time, however, certain inherent weaknesses in this series became apparent, while information previously lacking in some cases became available.

Accordingly, a revised series of index numbers was computed, based in the case of individual items on average quantities imported during the three years 1936–38. Group weights were instituted in the new series, to accord to the various groups their relative importance, and these were based on the average total value for the respective groups during the three years 1936–38. The difficulty, inherent in an index number of imports, of obtaining sufficient coverage to provide a reliable indication of changes in prices for any one group, was overcome in the revised series by the utilization of figures of exports to New Zealand, obtained in detail from the published trade figures of certain overseas countries.

A new and much more detailed statistical classification of imports was adopted by the Customs Department from 1 January 1949. The index of import prices for 1950 was constructed using the items of the more detailed classification and based on a composite weighting pattern of the two years 1949 and 1950, utilizing group weights, and linked to the old index. The index for 1951 was similarly based on the composite 1950–51 weighting pattern and linked on. The index for each subsequent year has been similarly calculated on the base of the previous year in each case, using a composite weighting pattern of the two years, the resultant index number being linked on to the old series.

In order to avoid any possible confusion between the import prices index number and the wholesale prices index number for imported commodities, it seems desirable to draw attention to the fact that the price quotations on which the Import Prices Index is based are declared values of commodities for import—i.e., current domestic prices in the exporting country plus 10 per cent to cover freight, etc., expressed in terms of New Zealand currency.

Owing to different proportional changes over the years between domestic commodity prices in exporting countries, the costs of these same commodities delivered f.o.b. for export, and marine insurance and freight rates, the Import Prices Index can only be regarded as the best available approximate indication of changes in the cost of imports delivered c.i.f. New Zealand ports. For instance, the large increase in marine transport costs during the war years, to the extent that it exceeded the rise in commodity prices, was not reflected in the index. There is reason to believe that, for recent periods compared with pre-war, the rises in f.o.b. costs of commodities and in marine freight and insurance rates may have exceeded the rises in domestic prices in exporting countries recorded in the index.

The Import Prices Index covers some seven hundred items, as compared with approximately one hundred items included in the Wholesale Prices Index for imported commodities.

IMPORT PRICES—INDEX NUMBERS

Base: 1936–38 (= 100)

YearIndex Numbers
1926125
1927119
1928113
1929111
1930110
1931102
193297
193399
193498
193596
193696
1937102
1938102
1939102
1940118
1941131
1942144
1943159
1944167
1945170
1946190
1947226
1948230
1949210
1950230
1951269
1952293
1953277
1954274
1955276
1956282

TERMS OF TRADE.—The table below shows, for the years 1946 to 1955, index numbers of import prices and of export prices and terms of trade for major commodity groups and total exports. The terms of trade indices relate the movements in export prices from the base period in relation to the movements in import prices over the same periods. For some years the terms of trade series was expressed on the base 1936–38 (= 100). A change was made in the method of expressing this series in 1955, and the last available complete calendar year is now used as the base, so that in the following table the base is 1955 (= 100). Following the completion of the calculations for 1956 the base will be changed to 1956 (= 100), and so on. If export prices rise by a greater percentage, or fall by a lesser percentage, than import prices, either of these relative movements is favourable to New Zealand, enabling more imports to be purchased for the same quantity of exports.

INDEX NUMBERS OF PRICES AND TERMS OF TRADE OF EXPORT COMMODITIES—BASE: 1955 (= 100)

YearImport PricesButterCheeseMeatWoolAll'Exports
Export PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of TradeExport PriceTerms of Trade
19466958845986497133484870
19478267827187597243526073
19488374897995587055666781
19497672957295557258766586
19508377937793607212114692111
195197848783866668147152108111
195210690859085777383788782
195310096969797848499999696
19549997989596909110410599100
1955100100100100100100100100100100100

SHARE PRICES.—Changes in the market value of shares listed on the Stock Exchange give a very sensitive indication of changes in business conditions generally. A series of index numbers of share prices on base: 1926 (= 1000), and instituted in 1932, was published by the Department of Statistics for some considerable time, but the present revised series of index numbers is based on the year 1938. The market prices—as on the last trading day in each month—of shares of forty-three representative companies, with shares listed on the New Zealand Stock Exchanges, form the basis on which the indices have been computed. The selection of the shares for inclusion in the index number was made with the object of reflecting New Zealand economic conditions; and, consequently, with one or two exceptions, only companies whose business is conducted largely or wholly in New Zealand are included. The index numbers are for ordinary shares, the prices of which vary directly with the profits of the company.

The market prices on which the index numbers are based have been extracted from Stock Exchange lists of individual exchanges prior to September 1929, and from the list of share prices included in the Stock Exchange Gazette and its successor, the Official Record of the Stock Exchanges of New Zealand, since that date. The prices quoted relate to the last trading day in each month; so that the “monthly” index numbers compiled from these data relate to that day only, while the annual averages represent the averages of the monthly index numbers. Each individual share price, and each group, is weighted in accordance with the number and value of shares held in New Zealand. The index numbers of New Zealand share prices give an indication of changes in share values as compared with the base year. In particular, they are intended to indicate the changes in value of a parcel of representative ordinary shares as compared with their 1938 value. The base adopted in this revised series is the average price ruling during the year 1938 (= 1000).

Shares in industrial companies and in finance, etc., companies have been computed separately and the annual index numbers from 1926 to 1956 on base: 1938 (= 1000) are as follows.

YearIndustrial GroupsFinance, etc., GroupsAll GroupsYearIndustrial GroupsFinance, etc., GroupsAll Groups
19269091,2711,1081,9421,0051,0141,010
19278511,2541,0731,9431,1561,1881,174
19288791,3011,1111,9441,2491,3041,279
19299601,3301,1631,9451,2851,4001,346
19308351,1471,0071,9461,3721,6011,486
19316749218101,9471,4441,6971,570
19326678527691,9481,4301,6091,520
19338049728971,9491,3681,5661,467
19349961,0971,0511,9501,4991,7951,647
19351,1021,1201,1121,9511,5662,0271,796
19361,0751,0431,0571,9521,2731,6971,485
19371,0731,0671,0691,9531,2161,7471,482
19381,0001,0001,0001,9541,3582,0491,703
19399599459521,9551,4492,1661,807
19401,0249789991,9561,4702,2611,865
19411,0219841,001 

The fluctuations in share prices since 1926 are clearly shown in the accompanying diagram, which is based on the foregoing index numbers.

An indication of movements in the index numbers for individual groups may be gauged from the following tables, the first of which is confined to the industrial groups.

SHARE-PRICES.—INDEX NUMBERS BY GROUPS

Base: Average for each group, 1938 (= 1000)

Calendar YearFrozen MeatWoollensGasTimberMineralsMiscellaneous (Industrial)All Industrial Groups
19461,8741,9419091,5551,0861,3991,372
19472,0672,0058941,6501,2621,4321,444
19482,0921,9558751,5421,3211,4041,430
19492,0091,8908691,4781,3251,3091,368
19502,1251,9339341,7921,4001,4631,499
19512,3111,9738182,2101,4761,5041,566
19521,7261,6656661,6941,2541,2481,273
19531,8641,6346241,3871,1351,1961,216
19542,2271,9435981,4881,2861,3191,358
19552,5002,0356931,8101,2871,4621,449
19562,8091,6719641,6481,1821,4311,470
Calendar YearAll Industrial GroupsBanksInsuranceLoan and AgencyMiscellaneous (Other)All Finance, etc., GroupsAll Groups Combined

NOTE.—Index numbers in these tables are comparable vertically but not horizontally.

19461,3721,1521,8611,4461,8301,6011,486
19471,4441,2841,8761,7291,9401,6971,570
19481,4301,1711,7701,7151,8931,6091,520
19491,3681,0791,7451,7091,8681,5661,467
19501,4991,2202,0122,1742,0321,7951,647
19511,5661,2512,3502,5872,2632,0271,796
19521,2731,0291,9722,0581,9671,6971,485
19531,2161,0392,0802,0911,9711,7471,482
19541,3581,2522,3832,6822,2582,0491,703
19551,4491,2232,5692,9642,3732,1661,807
19561,4701,1852,9942,8432,1162,2611,865

Monthly index numbers of share prices for a series of years (including the latest four years) are given in the following table, the base being 1938 (= 1000).

Month193219351939194519491953195419551956

* Interpolated.

Industrial Groups
January6681,0869561,2401,3951,1781,2591,4021,438
February6321,0759541,2471,3771,1621,2801,4101,451
March6211,0719381,2521,3631,1621,2981,4041,444
April6181,1039411,2671,3551,1651,3041,4241,438
May6301,0979681,2701,3581,1851,3211,4421,451
June6461,1129481,2761,3421,1951,3661,4591,459
July6691,1329581,3051,3461,2261,4221,4781,483
August7011,1069391,3211,3511,2481,4281,5081,482
September7381,0909271,3211,3641,2631,4191,4781,495
October7181,1119591,3151,3721,2821,4011,4721,501
November6991,1231,0041,3001,3811,2681,3941,4591,486
December*6621,1171,0221,3051,4101,2641,3981,4471,511
Finance, etc., Groups
January8651,1369471,3151,5801,6391,8952,1352,235
February8241,1019421,3251,5621,6461,9172,1392,268
March8231,1079331,3341,5351,6511,9422,1162,246
April8151,1369211,3551,5291,6751,9532,1332,263
May8091,1259461,3761,5751,6962,0232,1362,312
June8121,1269341,4011,5481,7072,0842,1672,322
July8691,1399501,4251,5481,7602,1022,2152,324
August9011,1559411,4321,5661,7812,1202,2292,246
September9201,1179271,4141,5671,8062,1222,1652,223
October8971,0999491,4041,5741,8322,1562,1712,233
November8751,0979741,5021,5841,8842,1362,1762,222
December*8181,0929781,5111,6251,8902,1362,2052,250
All Groups
January7771,1149511,2811,4871,4081,5771,7681,836
February7381,0949471,2901,4701,4041,5981,7751,859
March7321,0919351,2971,4491,4071,6201,7601,845
April7261,1219301,3151,4421,4201,6281,7781,851
May7281,1139561,3281,4661,4411,6721,7891,882
June7381,1209401,3451,4451,4511,7251,8131,891
July7791,1369541,3711,4471,4931,7621,8461,904
August8111,1339401,3821,4591,5151,7741,8691,864
September8381,1059271,3721,4661,5351,7701,8221,859
October8171,1059531,3641,4731,5571,7791,8221,867
November7961,1099871,4011,4831,5761,7651,8181,854
December*7481,1039981,4081,5181,5771,7671,8261,871

Yields on Market Prices of Shares.—A series of index numbers of yields on market prices of New Zealand domiciled ordinary shares has been compiled covering the same companies and using the same group weights as for the share-prices series.

The yield figures forming the basis of the index numbers have in most cases been based on those published in the Official Record of the Stock Exchanges of New Zealand, and the monthly figures relate to the market price ruling at the end of the month and the rate of dividend last paid by the particular company.

Average annual index numbers of yields have been compiled back to the year 1929 on base: average for each group, 1938 (= 1000), and are given here for the years 1929 to 1956.

YearIndustrial GroupsFinance, etc., GroupsAll Groups

* The respective base percentage yields were: Industrial groups, 4.918; finance, etc., groups, 4.215; and all groups, 4.540.

19291,1041,0911,097
19301,2741,2771,276
19311,3471,4341,395
19321,2341,2781,258
1933881890886
1934806777790
1935749813784
1936823860843
1937886884885
19381000*1000*1000*
19391,0421,0671,055
19409971,0321,016
19419911,0161,005
1942943991969
1943735819781
1944698754729
1945676714697
1946632697664
1947657698677
1948680725703
1949698753726
1950663693678
1951678676677
1952778890834
1953878925901
1954840850845
1955828894861
1956868960914

Monthly index numbers of yields on base: average for each group, 1938 (= 1000), are given hereunder for each month of the years 1954 to 1956.

MonthIndustrial GroupsFinance, etc., GroupsAll Groups
195419551956195419551956195419551956

* Interpolated.

January887830846880874908884852877
February874830862860878913867854887
March865847864844895925855871894
April863843867840889945852866906
May859841857828888943843864900
June847829879819874979833852929
July809824866831857978820841922
August800797875837871991818834933
September809813873859911993834862933
October819816875857919982838867929
November824827883873939995849883939
December*827841873874923939850882928

SUMMARY OF PRICE MOVEMENTS.—A comparative table of index numbers of the various related prices series from the year 1926 onward is as follows. All index numbers are quoted on a New Zealand currency basis, and on the base: 1955 (= 1000), with the exception of those of import and export prices which are on the base: 1955 (= 100).

YearBase: 1955 (= 100)Base: 1955 (= 1000)
Import PricesExport PricesWholesale PricesRetail PricesShare Prices (All Groups)
Pastoral and Dairy ProduceAll GroupsLocally Produced CommoditiesImported CommoditiesAll GroupsAll Groups
1926453636421407413534613
1927433636406383392529594
1928414040412374390532615
1929403938412370387531644
1930403030396364377519557
1931372323349356353479448
1932352121328354344443426
1933362021323374354420496
1934352526332371356427582
1935352525359372367442615
1936352829368372370457585
1937373334396403401488592
1938373131404407406503553
1939373031431412420523527
1940433535441487468547553
1941473636466547514567554
1942523737488600555586559
1943583839493662593599650
1944604041505684611610708
1945624444515694621618745
1946694848523692623624822
1947826060560706646643869
1948836767614793720695841
1949766565627776715706812
1950839292714823779746911
195197108108831960907828994
195210686879011,0821,008892822
195310097969531,029998933820
1954999999998983989976942
19551001001001,0001,0001,0001,0001,000
195610298981,0541,0261,0381,0351,032

Chapter 37. SECTION 37—WAGE RATES AND HOURS OF LABOUR

Table of Contents

WAGE RATES.—The material used in the compilation of statistics of wage rates in New Zealand is taken from the awards made by, and the industrial agreements filed in, the Court of Arbitration, and decisions of other wage-fixing tribunals. The rates specified in these awards and orders are minimum rates; they take into account neither overtime nor ruling rates which may be above the prescribed minima. Nevertheless, for the purpose of tracing the movement in wage rates over any considerable space of time the award rates form a more reliable basis than any other information at present available.

The award rates for the four principal districts—Northern, Wellington, Canterbury, and Otago and Southland—are in general taken as being representative of minimum wages throughout New Zealand. For such industries as are carried on in the towns these rates are quite satisfactory; in cases where the important centre of an industry is situated outside the geographical boundaries of the four principal districts, the award rates for that centre are used. For instance, the rates used for sawmilling in the Canterbury District are those prescribed by the awards for the Westland Industrial District.

Revision of Index Numbers.—A revision of the index numbers of wage rates was completed in 1955. For the new indices the calendar year 1954 has been adopted as the expression base and the average wage rates for this period have been equated to 1000. The series superseded were based on the quinquennium 1926–30.

The purpose of this revision was threefold:

  1. To establish a currently representative weighting pattern.

  2. To provide a homogeneous system of occupation, industry, and industrial group weights for ease of calculating the index numbers. Assembly into any desired grouping of occupations is also facilitated.

  3. To reclassify the designations of occupations to bring them into line with descriptions currently used in awards and in orders of wage-fixing tribunals.

As far as possible the weighting pattern has been based on information obtained from the Census of 1951, but supplementary data were obtained from the statistics of Industrial Production, the half-yearly surveys of employment published by the Department of Labour in the Labour and Employment Gazette, figures of union membership published in the Parliamentary Paper (H. 11) the Census of Distribution 1953, and other special material and surveys.

The fourteen industrial groups of the series superseded have been maintained; new industries have been incorporated into the appropriate existing group. The series are still predominantly indices of wage rates of manual workers, such occupations as clerical and office workers, professional, technical and related workers, managers, officials, and administrators, and most service workers being excluded. Besides all primary and secondary industries the following distributive trades and services are however still included:

  1. Retailing of meat, groceries, softgoods, and coal and firewood.

  2. Provision of accommodation, meals, and personal services.

  3. Transport industries.

As previously, four series of wage-rates index numbers have been compiled; these comprise indices for adult males, adult females, juvenile males, and juvenile females. The adult male index alone covers the fourteen industrial groups and the revised weights for these industrial groups are as follows.

Industrial GroupGroup Weight
Provision of—
  Food, drink, etc.1,244
  Clothing, footwear, and textiles439
  Building and construction1,629
  Power, heat, and light241
  Transport by water and air611
  Transport by land927
  Accommodation, meals, and personal service354
Working in or on—
  Wood, wicker, seagrass, etc.818
  Metal1,255
  Stone, clay, glass, chemicals, etc.358
  Paper, printing, etc.220
  Skins, leather, etc.63
  Mines and quarries274
  The land1,567
      All groups10,000

These group weights represent the sum of the weights assigned to the occupations within each industry which form the industrial group as listed.

A full exposition of the revision, together with details of the weighting, can be found in the appendix to the Report on Prices, Wages, and Labour Statistics for the year 1954.

Wage Rates of Adult Male Workers.—Index numbers of annual averages of nominal weekly wage rates of adult males over the period 1914–56 are given in the following table. This “long-term linked series” has been obtained by combining the successive series and converting the whole to the base of the new index, which is the weighted average of weekly wage rates for adult males in 1954 (= 1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES), ALL INDUSTRIAL GROUPS

Base: 1954 (= 1000)

YearIndex Number
1914253
1915263
1916273
1917289
1918303
1919329
1920371
1921402
1922389
1923375
1924378
1925387
1926393
1927401
1928413
1929414
1930414
1931383
1932351
1933339
1934341
1935349
1936386
1937421
1938440
1939447
1940460
1941476
1942497
1943513
1944518
1945562
1946583
1947606
1948646
1949682
1950729
1951829
1952871
1953929
19541,000
19551,035
19561,055

The wage rates on which the foregoing index numbers are based are gross rates, no account having been taken of the fact that from August 1931 wages have been subject to certain forms of taxation not previously in operation. A summary of these taxes on wages since their introduction is as follows.

Date From Which EffectiveRate Per PoundClass of Tax
s.d.
1 August 193103Emergency unemployment charge.
1 May 193210Emergency unemployment charge.
1 October 1934010Employment promotion tax.
1 October 193508Employment promotion tax.
1 April 193910Social security tax.
21 July 194020Social security tax (1s. in pound)
National security tax (1s. in pound).
11 May 194226Social security tax (1s. in pound).
National security tax (1s. 6d. in pound).
13 May 194620Social security tax (1s. 6d. in pound).
National security tax (6d. in pound).
21 April 194716Social security tax.

In explanation of the movements recorded in the preceding table of index numbers the more important changes in rates of wages during the last fifteen years are briefly surveyed, the changes over the period 1919–36 being quoted on pages 636–637 of the 1947–49 Year-Book.

It should first be noted, however, that the powers of the Court of Arbitration as regards wage fixation have been amended repeatedly in recent years. In this connection reference should be made to the distinctions between the “basic wage,” the “minimum wage,” “standard rates of wages,” and “general orders” which are elaborated in Section 38C. The index numbers of rates of wages, being based predominantly on award rates, have not been influenced by either “basic wage” rates or the “minimum wage” rates which have, in effect, superseded the basic wage; “minimum wage” rates in themselves have no practical application where awards exist. The effects of standard rates pronouncements and of general orders are, on the other hand, clearly visible.

As from 15 December 1942 rates of remuneration, already brought under control by the Rates of Wages Emergency Regulations 1940, were stabilized by the Economic Stabilization Emergency Regulations 1942. General orders and, later, pronouncements of standard rates, could be made under these regulations and their amendments. Nevertheless, in practice, stabilization of wage rates, even apart from general increases granted by the Court of Arbitration in either of these ways, was not absolute. The Court, in making or amending any award, was, from 1945 to 1950, required to have regard to the restoration or preservation of a proper relationship with other rates of remuneration, not excluding actual rates over which the Court had no jurisdiction. The result was that although the index ignored the margin—a margin subject to continual fluctuation—between actual rates and minimum award rates, it did during the period of stabilization continue to show a certain gradual upward movement as awards were amended from time to time. Regulations made in 1950 under the Economic Stabilization Act 1948 omitted the above-mentioned requirement as to relationship with other rates as well as the provision for pronouncements of standard rates, and at the same time abolished control of maximum rates. Pronouncements of standard rates might still be made by the Court of its inherent power, but such rates could not be written into awards or industrial agreements until the current term of either had expired.

In February 1952, however, new regulations were issued restoring the Court's specific powers not only to pronounce standard rates, but also to amend current awards and industrial agreements accordingly. These specific powers had previously been held by the Court, as regards pronouncements from 1945 to 1950, and as regards their implementation by amending awards and agreements from 1947 to 1950. More frequent wage adjustments were also allowed by these 1952 regulations, which provided that either a general order may take effect or a standard rates pronouncement may be made not sooner than six (instead of twelve) months after a previous general order has taken effect or a pronouncement has been made. The Court was also given discretionary power to make a general order on an application for a standard wage pronouncement, and to make a standard wage pronouncement on an application for a general order.

An amendment to these 1952 regulations was issued in May of the same year enabling representatives of the parties bound by orders of the Government Serve Tribunal, the Government Railways Industrial Tribunal, and the Waterfront Industry Tribunal to appear and make submissions on the hearing by the Court of Arbitration of applications for general orders or for standard wage pronouncements.

The 1952 regulations were revoked in May 1953 by the Economic Stabilization Regulations 1953, the principal changes made being as follows: The provision requiring the Court to take into account the general purpose of the Economic Stabilization Act 1948 is omitted, but the Court is required to take into account any increase or decrease in the volume and value of production in primary and secondary industries in New Zealand; the regulations no longer empower the Court to make standard wage pronouncements, but the power is continued to amend awards and industrial agreements to give effect to the pronouncement of 12 July 1952 (such amendments may be made retrospective to 1 September 1952). Subject to these alterations existing provisions are repeated enabling the Court to make general orders, to exclude special classes of workers from general orders (with the time for application extended from 21 days to 28 days), to apply general orders to apprentices, and to adjust rates which automatically fix the scope of awards so as to conform with general orders.

Later in 1953 amending regulations were issued providing, firstly, that on making a general order under the principal regulations the Court, in taking into account the prescribed matters, may consider events that occurred before the date of the last standard wage pronouncement or general order and events likely to occur in the future; and, secondly, that whereas the hearing of an application for a general order set down for 8 September 1953 could not commence on that date, the Court was given discretionary power to fix a date for the commencement of the general order before the date on which it was made, but not earlier than 15 September 1953.

In the exercise of its powers the Court has during the war and post-war years issued the following judgments:

From 12 August 1940 an increase of 5 per cent was granted by general order in all rates of remuneration prescribed by awards, industrial agreements, and apprenticeship orders.

A further general order awarded, as from 7 April 1942, a second increase of 5 per cent—on the already increased rates—but with certain maxima (i.e., 5s. weekly for adult males, 2s. 6d. weekly for adult females, and 1s. 6d. weekly for juveniles).

The standard rates pronounced in 1945, 1947, 1949, and 1952 are quoted in Section 38C, together with those already current when the general orders of 1940 and 1942 took effect. As regards the inclusion of these general orders in standard rates, the 1945 standard rates were net rates and those of later years gross rates. Amendments to awards consequential upon these alterations in standard rates took effect from 1 April 1945, 1 October 1947, 1 June 1949, and 1 September 1952 respectively.

From 8 May 1950 all rates of remuneration provided for in awards and industrial agreements were, by interim general order dated 10 June 1950, again increased by 5 per cent, but with maximum increases of 7s. weekly for adult males and 4s. 9d. weekly for other workers. This interim order was s.....d by a further general order made on 30 January 1951 and taking effect from 15 February . The new order embraced the revocation of the interim order and the substitution of an increase of 15 per cent—without any prescribed maximum—in all rates of remuneration provided for in awards and industrial agreements (except in certain specified awards which had been made since the date of the interim order). The effect of this increase on wage index numbers is apparent in the 1951 figures.

Following on the hearing of an application for a general order increasing rates of remuneration, at which—in accordance with the provisions of the May 1952 amending regulations—representatives of the Public Service Association, the Public Service Commission, and the Railways Department attended, the Court, on 12 July 1952, took advantage of its powers under the February 1952 regulations by pronouncing new standard rates in preference to making a general order. These rates (see page 1028) were incorporated into amended awards which came into effect on 1 September 1952, the provisions of the general order of January 1951 thereupon ceasing to apply. The 1952 wage-rates index numbers were, of course, influenced by this pronouncement, but its full effect on the annual series was not manifest until 1953.

The 1953 indices in their turn partially reflect the general wage order dated 19 November of that year and made, in the exercise of the Court's powers under the regulations of September 1953, retrospective to 15 September 1953. The increase granted was 10 per cent of all award rates with maxima of 24s. weekly in the case of adult males. 18s. weekly in the case of adult females, and 14s. weekly in the case of junior workers.

On 28 October 1954 another general order was made, having effect from 18 November 1954 and therefore bearing upon the 1954 annual index. Its tenor was to revoke the 1953 order and to substitute a restricted increase of 13 per cent instead of 10 per cent in award rates of wages, the resultant maximum increases being: for adult males, £1 11s. 2 1/2d. per week; for adult females, £1 3s. 5d. per week; and for juveniles, 18s. 2 1/2d. per week approximately.

The annual index for 1956 partially reflects the further general order made on 26 October 1956 having effect from 19 November 1956. Like the two preceding orders of 1953 and 1954 it originated in an application sponsored by the New Zealand Federation of Labour and supported by the New Zealand Public Service Association. This new order revoked the 1954 order and substituted a restricted increase of 18 per cent in all awards and industrial agreements (except those specifically excluded in the order) in force as at 26 October 1956. In respect of the workers affected by the order the remuneration in each week exceeding the amount of £13 in the case of adult male workers, £9 15s. in the case of adult female workers, and £7 10s. in the case of junior workers, was excluded from the scope of the order. The resultant maximum increases are: for adult males, £2 6s. 10d. per week; for adult females, £1 15s. 1d. per week; and for juveniles, £1 7s. per week approximately.

The next table shows the index numbers of nominal weekly wage rates of adult males for each industrial group and for all groups combined for the first three years of the currency of the new index. The base in this instance is the New Zealand weighted average wage rate for all groups combined, 1954 (= 1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: All groups combined, 1954 (= 1000)

Industrial GroupCalendar Year1956: At—
19541955195631 March30 June30 Sept.31 Dec.

NOTE–.-The index numbers in this table are comparable both vertically and horizontally.

Provision of–
  Food, drink, etc.1,0371,0911,1181,1101,1101,1131,163
  Clothing, footwear, and textiles9891,0231,0461,0301,0401,0401,086
  Building and construction9629911,0059979991,0011,055
  Power, heat, and light9279589869849849871,029
  Transport by water and air1,1651,2121,2431,2331,2331,2391,299
  Transport by land9911,0321,0591,0411,0591,0591,103
  Accommodation, meals, and personal service9629991,0071,0001,0021,0021,049
Working in or on—
  Wood, wicker, seagrass, etc.1,0151,0451,0661,0531,0581,0731,121
  Metal1,0581,0931,1191,1101,1101,1171,165
  Stone, clay, glass, chemicals, etc.9449811,0039949949981,044
  Paper, printing, etc.1,0641,1081,1301,1091,1301,1301,180
  Skins, leather, etc.9689981,0141,0091,0091,0091,054
  Mines and quarries9771,0111051,0111,0741,0741,119
  The land (farming pursuits)929950952950951946982
All groups combined1,0001,0351,0551,0451,0501,0531,100

In the groups “accommodation, meals, and personal service,” and “transport by water and air,” the estimated value of board and lodging, and in the “working on the land” group, the value of rations as well as the estimated value of board and lodging are, where applicable, added to the money wage rate in order to make a legitimate comparison with other industries. Also included in the wages for workers in the “transport by water and air” group is a sea-going allowance of £6 18s. per calendar month where applicable. In the case of waterside workers (an important subgroup of the “water and air transport” group) these allowances are not, of course, applicable.

Movement in Individual Groups.—The index numbers in the preceding table being on a national all-groups base, comparisons between movements in individual groups cannot be readily made; an increase in a group in which the index numbers are consistently low being considerably smaller numerically than would be an increase of the same percentage in one where the index numbers are higher. The following table brings out the movements in the various groups more clearly. The respective bases are the New Zealand average weekly wage rates for each industrial group, 1954 (= 1000), the heavy ruled vertical line indicating the commencement of the new series.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: Each group separately, 1954 (= 1000)

Industrial Group1914193919521953195419551956
Provision of—
  Food, drink, etc.2574888749321,0001,0521,078
  Clothing, footwear, and textiles2464548679351,0001,0341,057
  Building and construction2744728679341,0001,0301,045
  Power, heat, and light2664838669301,0001,0331,063
  Transport by water and air2374408559081,0001,0401,067
  Transport by land2564638639291,0001,0421,069
  Accommodation, meals, and personal service2824608189221,0001,0381,047
Working in or on—
  Wood, wicker, seagrass, etc.2534708699311,0001,0301,051
  Metal2744758559271,0001,0331,058
  Stone, clay, glass, chemicals, etc.2524868589291,0001,0401,063
  Paper, printing, etc.2874728639291,0001,0411,062
  Skins, leather, etc.2624878619301,0001,0301,048
  Mines and quarries2684508589201,0001,0341,080
  The land (farming pursuits)2263739089351,0001,0231,024
All groups combined2534478719291,0001,0351,055

Care must be exercised in drawing inferences from this table, for, while horizontal comparisons are quite valid, the vertical comparison between the various groups is valid only in so far as it shows in which groups the greater or the smaller movements have occurred.

Indices of Hourly Wage Rates.—Legislative reductions in weekly hours of labour have rendered it desirable that indices of hourly wage rates should be made available. These shorter working hours were prescribed mainly by the 1936 legislation, the Shops and Offices Amendment Acts of 1945 and 1946, and the Factories Amendment Act 1945. Further details of these changes will be found on pages 1012–16. It will be noticed that the indices given hereunder (as is also the case in respect of the indices of weekly hours of labour) cover thirteen only out of the fourteen industrial groups commonly adopted, since working hours on farms (which would be essential to the fourteenth group) cannot for this purpose be satisfactorily treated statistically. The base of the first table is the New Zealand average hourly wage rate (computed as described after the following tables) for all groups combined, 1954 (= 1000).

HOURLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: All groups combined, 1954 (= 1000)

Industrial Group195419551956
Provision of—
  Food, drink, etc.1,0241,0771,104
  Clothing, footwear, and textiles9771,0101,033
  Building and construction950979992
  Power, heat, and light916946974
  Transport by water and air1,1081,1521,182
  Transport by land9791,0191,046
  Accommodation, meals, and personal service950986995
Working in or on—
  Wood, wicker, seagrass, etc.1,0021,0321,053
  Metal1,0451,0791,105
  Stone, clay, glass, chemicals, etc.932969990
  Paper, printing, etc.1,0511,0941,116
  Skins, leather, etc.9569851,002
Mines and quarries1,0381,0731,121
All groups combined1,0001,0371,060

The next table shows the movement in individual groups. The base is the New Zealand average hourly wage rate for each group individually, 1954 (= 1000), the heavy ruled vertical line indicating the commencement of the new series.

HOURLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: Each group separately, 1954 (= 1000)

Industrial Group1914193919521953195419551956
Provision of—
  Food, drink, etc.1964488749321,0001,0521,078
  Clothing, footwear, and textiles2134438679351,0001,0341,057
  Building and construction2414738679341,0001,0301,045
  Power, heat, and light2214818669301,0001,0331,063
  Transport by water and air1884188428941,0001,0401,067
  Transport by land2134438639281,0001,0421,069
  Accommodation, meals, and personal service1854478189221,0001,0381,067
Working in or on—
  Wood, wicker, seagrass, etc.2204718699311,0001,0301,051
  Metal2364758559271,0001,0331,058
  Stone, clay, glass, chemicals, etc.2124838589291,0001,0401,063
  Paper, printing, etc.2614738639291,0001,0411,062
  Skins, leather, etc.2184688619301,0001,0301,047
  Mines and quarries2184158589201,0001,0341,080
All groups combined2174558619271,0001,0371,060

The figures shown in the last two tables are derived from average hourly rates calculated in every case by dividing the corresponding average weekly rate by the average number of hours worked in the week.

WAGE RATES OF ADULT FEMALE WORKERS.—Index numbers showing movements in wage rates of women workers are compiled, using the award rates of the Court of Arbitration; a much smaller list of occupations is used than is the case in computing index numbers of wage movements for male workers. Although only twenty-one occupations are taken into consideration in the case of women workers, these occupations normally cover a large proportion of the total women in industry—more than sufficient to constitute a representative sample for measuring movements in wages.

The following table shows index numbers of women's wage rates on base: New Zealand all-groups weighted average, 1954 (= 1000), divided into the principal industries in which women workers are normally engaged. In the compilation of these indices, the value of such perquisites as board and lodging in the case of hotel workers has been added to the money wage rates.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT FEMALES)

Base: All groups combined, 1954 (= 1000)

Industrial Group195419551956
Provision of—
  Food, drink, etc.909938960
  Clothing, footwear, and textiles9811,0191,037
  Accommodation, meals, and personal service1,0831,1271,138
Working in paper, printing, etc.919961988
All groups combined1,0001,0391,056

Movements in Individual Groups.—Movements within the various groups are brought out more clearly in the next table, the base in this case being the New Zealand weighted average weekly rate of each group, 1954 (= 1000), the heavy ruled vertical line indicating the commencement of the new series. As with the similar table relating to male wage rates (p. 991), horizontal comparisons are valid, but vertical comparisons merely show in which groups the greater or smaller movements have occurred.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT FEMALES)

Base: Each group separately, 1954 (= 1000)

Industrial Group1914193919521953195419551956
Provision of—
  Food, drink, etc.1533758839351,0001,0331,056
  Clothing, footwear, and textiles1923728659341,0001,0391,058
  Accommodation, meals, and personal service2754418359211,0001,0401,050
Working in paper, printing, etc.1993767488091,0001,0461,075
All groups combined2133908529241,0001,0391,056

WEEKLY WAGE RATES: ALL ADULT WORKERS.—A series of index numbers has been computed on the base, 1954 (= 1000) for all adult workers. In general this has followed the index for adult males, although for some years after 1945 there were signs of increasing divergence as female wage rates made on the whole relatively greater gains than male rates. Index numbers for the last fifteen years available are as follows.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES AND FEMALES COMBINED), ALL INDUSTRIAL GROUPS

Base: 1954 (= 1000)

YearIndex
1942490
1943507
1944511
1945556
1946579
1947602
1948644
1949682
1950729
1951828
1952869
1953929
19541,000
19551,036
19561,055

EFFECTIVE WEEKLY WAGE RATES.—The index numbers quoted in the foregoing paragraphs relate to nominal weekly wage rates only—that is, they are based on actual or equivalent money rates without any allowance being made for changes during the period under review in the prices of those goods and services which are purchased out of wages earned. It is obvious that this factor is of considerable importance, for a rise in wage rates may be offset by a fall in the purchasing power of the monetary unit, while, on the other hand, a fall in money wages may be offset by a rise in the purchasing power of money. Changes in the index numbers of retail prices (refer Section 36) are inversely proportional to changes in the purchasing power of the pound on the retail market; hence index numbers of effective (or “real”) wage rates are arrived at by dividing the index numbers of nominal wage rates by the corresponding all-groups index numbers of retail prices and multiplying by the base value of 1000.

The following table accordingly shows a comparison of nominal and effective weekly wage rates of adult male and female workers in each of the years 1946–56. The base of the index numbers is in each case the calendar year 1954 (= 1000).

YearRetail Prices (All Groups)Nominal Weekly Wage RatesEffective Weekly Wage Rates
MalesFemalesMalesFemales
1946639583542912848
1947659606571920866
1948711646624909878
1949723682674943932
1950764729727954952
1951848829817978963
1952914871852953932
1953956929924972967
19541,0001,0001,0001,0001,000
19551,0241,0351,0391,0111,015
19561,0611,0551,056994995

The continuous series of retail prices index numbers required for the foregoing table has been obtained by linking the revised consumers' price index to the earlier series and converting the whole to calendar year 1954 (= 1000).

In making use of these results it should not be overlooked that the index numbers of nominal wage rates apply only to full-time employment at award rates of pay. They do not take into account either on the one hand above-award rates or overtime earnings, or on the other short-time deductions or wages tax imposed (a summary of the rates of wages tax in force during different periods will be found on page 988). Nor do the retail prices index numbers take cognizance of all classes of household expenditure; income tax, charitable and other gifts, domestic help, etc., being omitted. Having regard to opportunities for spare-time gainful occupation, a comparison with movements in the index numbers of hours of labour shown later in this Section is also relevant.

To the extent that female wages are not normally devoted to purchasing the full range of household requirements the results of employing the all-groups retail prices index to determine effective wages for females are subject to certain limitations. Their general application is, however, still valid.

WAGE RATES OF JUVENILE WORKERS.—Index numbers of wage rates of juveniles, male and female, are compiled for each calendar year. Owing to the fact that a number of industries utilize juvenile labour to a limited extent only, or not at all, it has not been possible to cover a very wide field, but thirty-six occupations representing twelve out of the fourteen industrial groups are included in the case of juvenile males, and five occupations representing three industrial groups in the case of juvenile females.

Wherever possible the weekly wage rate adopted in the compilation of the indices is that provided for a worker having attained the age of eighteen years or having completed three years' service, according to the terms of the award.

In the table which follows the respective bases are the New Zealand average weekly wage rates for each industrial group, 1954 (= 1000), the heavy ruled vertical line indicating the commencement of the new series.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (JUVENILE WORKERS)

Base: Each group and each sex separately, 1954 (= 1000)

Industrial Group1914193919521953195419551956

* No provision made in awards for juvenile females.

Juvenile Males
Provision of—
  Food, drink, etc.2154078629281,0001,0541,089
  Clothing, footwear, and textiles1733298699351,0001,0351,057
  Building and construction1773218669361,0001,0331,047
  Transport by land and air2554858509181,0001,0471,077
  Accommodation, meals, and personal service1683398569311,0001,0321,055
Working in or on—
  Wood, wicker, seagrass, etc.1763618579311,0001,0261,049
  Metal1463618509231,0001,0301,058
  Stone, clay, glass, chemicals, etc.1924878649251,0001,0391,084
  Paper, printing, etc.1842958619301,0001,0381,061
  Skins, leather, etc.2664318799171,0001,0391,062
  Mines and quarries2644689249561,0001,0211,133
  The land (farming pursuits)1903408739351,0001,0251,027
All industrial groups1843548669321,0001,0321,051
Juvenile Females
Provision of—
  Food, drink, etc.1443748889351,0001,0311,055
  Clothing, footwear, and textiles1823868829331,0001,0411,059
Working in paper, printing, etc.*3958579291,0001,0241,104
All industrial groups1803858809331,0001,0391,061

In recent years juvenile wages have been largely governed by the Apprentices Act 1948, under which the scale of wages in apprenticeship orders is based on a percentage of the ruling minimum rates for journeymen in the industry concerned. Consequently, the wage-rates index numbers for juvenile males now tend to move in sympathy with the index numbers of male adult wage rates. In the above table horizontal comparisons are valid, but vertical comparisons merely show in which groups the greater or smaller movements have occurred.

AVERAGE RATES OF WAGES.—The following table shows the New Zealand minimum weekly wage rates in various occupations for the years 1914, 1939, and 1952–56. The figures given are simple averages for the four principal industrial districts as at 31 March in the years indicated. The adult male wage rates on the same basis as at 31 March 1957 will be found in the Latest Statistical Information at the beginning of this volume. The rates shown throughout this table are money rates, and do not include any allowance for the value of board and lodging which is a usual perquisite of the employment of some workers—e.g., seamen and hotel employees. Further information on this latter point is available in the note given at the end of the table.

OccupationAverage Wage (Four Principal Districts) at 31 March
1914193919521953195419551956

*Not available.

NOTE.—The following perquisites (as assessed for statistical purposes) as at 31 March 1956 should be added to the listed occupations: general farm workers, ploughmen, shepherds, dairy-farm workers, and youths (eighteen years of age) employed on agricultural and dairy farms, 36s. per week for board and lodging; shearers and wool pressers, 7s. per day for rations; assistant stewards (first and second grade), chief and second cooks, able seamen and ordinary seamen (first class), 48s. 6d. per week as value of board and lodging; and hotel first cooks and waiters, female cooks, housemaids, and waitresses, 42s. per week as value of board and lodging. Varying amounts in this connection would also be added to the occupations affected for earlier years.

 s.d.s.d.s.d.s.d.s.d.s.d.s.d.
Adult Males
Bakers—
  Journeymen5501150191320542251023202378
  Labourers480950159617361901019612018
Butchers—
  First shopmen726123220982192241124782506
  Second shopmen626110819392040224523062332
  Butter-factory employees—Churning and buttermaking: Others4509001631117541921021512209
Flourmilling—
  Kilnmen480994185111926218922482303
  Assistant smuttermen480914177418342088214321911
  Rollermen560103420132076235324172473
Meat freezing—
  Slaughtermen, per 100 sheep27645089290398310551065
  Workers not otherwise specified540113820132100231023922469
Meat preserving—
  Boners6201320247325002740282102896
  Others596110020132100231023922487
  Sausage-casing making: Workers not otherwise specified5881174208112168238424692543
Aerated water and cordial making—
  Cordialmakers5899610176018212015206112129
  Others450883167417361911119722035
  Brewing: Others47794517571891209022042204
Tailors—
  Journeymen5391012185112000220022992299
  Stock cutters (factory)550926185112000220022602299
  Footwear manufacturing workers526918185112000220022602346
Woollen mills—
  Spinners510103418992034223822992355
  Others4669341707181819910205321011
Building—
  Bricklayers685115019702126233524082408
  Carpenters and joiners643112619272068226823372365
  Plasterers679114719532097230324002400
  Plumbers6601100196821010231524302430
  Builders' labourers526934178318810207921402140
  General labourers5269341610171718891931019410
Sawmilling—
  Sawyers5301126204721472361245624611
  Tailers-out439968186519552150223112254
  Yardmen, head5581100200921002310240424110
  Workers not specified510950182719182101022022211
  Boatbuilding: Shipwrights628126619462126233123932454
Metal works, etc.—
  Boilermakers, journeymen628110018992042224723092374
  Iron and brass moulders647110018882026226623562356
  Tinsmiths, journeymen628110018842042224723702413
  Engineering fitters, etc.6471100192320682271237102436
  Electrical wiremen6110110519362089229223872399
  Motor mechanics6481100194321262321124382944
Printing—
  Linotype (day)740115020232126236624692469
  Letterpress machinist (day)650107619372042227423742374
Skin and leather workers—
  Curriers580105018401942213722142251
  All other workers4969001610171818810195102000
Mineral and stone workers—
  Flanger and moulder5311108418151940214622232241
  All other workers46995016321753194420202035
Mining (coal)—
  Surface: Tippers53791318001971121792271122810
  Miners (on day wages, per shift)11420104010423466479479
  Truckers551197618971921211421432143
  Quarrymen52894216691775195120052014
Agricultural and pastoral workers—
  General farm workers26445012261400152015601560
  Threshing-mill: Other workers, per hour13284549 1/45354 3/454 3/4
  Ploughmen30446312261400152015601560
  Shearers (per 100 sheep shorn)2002861170616680726720
  Shepherds31252612261400152015601560
  Wool pressers30084642542211024582222604
  Dairy-farm workers23052615301700185019001900
Railways—
  Engine drivers, average third and sixth years7501200210102221244426182618
  Firemen, average second and ninth years60010211191920182211023392339
  Guards, average first and third years6301139201921211237025052505
Tramways—
  Drivers536101318211926211921762260
  Conductors (after six months)47795717451850203620912176
Shipping and cargo working—
  Assistant stewards, first grade25872417561858204321572157
  Assistant stewards, second grade18870017221824200721232123
  Chief cooks608106102192229325222641026410
  Second cooks37488219642066227223902390
  Able seamen37489118910199112191123182318
  Ordinary seamen: 18 years or over280601014771547170117891789
  Waterside workers: Ordinary cargo624106819502000221823842484
Hotel workers—
  First cooks900112017801921216102271022710
  Waiters3116501200134115301621016210
Miscellaneous—
Retailing of apparel—
  Shop assistants55010261861119542141022092260
  Grocers' assistants50010261781018712051021612161
  Warehouse storemen489900166918682054210112167
Adult Females
Biscuit and confectionery factory workers2004901131011821300133613611
Tailoresses (factory): Journey-women2765001171112801401014481489
Footwear manufacturing workers2765010117111240139814361492
Woollen-mill workers250500118101268141214501489
Hotel workers—
  Cooks2955801221113611156116601660
  Housemaids172366821920106811251125
  Waitresses225366821920106811251125
Restaurant workers—
  Cooks42687015081568172418281828
  Waitresses31148610481108121913081308
  Pantrymaids29248610481108121913081308
Printing workers *58611171170132013851385
Retailing of apparel: Shop assistants276576124913091431014791508
Juvenile Males
Bakers' apprentice: After three years' service2766501244133614610150101546
Butchers' assistant: Eighteen years of age301049599210321151112171257
Butter and cheese factory: Youth, eighteen years of age300526105311261239144114710
Flour-mill: Youth, after three years' service270500981110161150118012110
Meat freezing and preserving: Youth, eighteen years of age2565501093113912521291113710
Aerated water and cordial manufacture: Youth, eighteen years of age25046787790799810241184
Tailoring, etc.: Apprentice, after three years' service192400109911801291013341357
Footwear manufacturing: Apprentice, after three years' service250400109911801291013341384
Woollen-mill: Youth, eighteen years of age226468107411341248128113110
Bricklayers' apprentice: After three years' service24242611771269139114341447
Carpenters' apprentice: After three years' service24643211651248136614071423
Plasterers' apprentice: After three years' service24042611621249136111421014210
Plumbers' apprentice: After three years' service19540011811265138714611461
Sawmill: Youth, eighteen years of age2564899010989108811171117
Engineering: Apprentice, after three years' service20050011451230 014181450
Brick, tile, etc., works: Youth, eighteen years of age2105359179610107911171142
Tannery: Youth, eighteen years of age3345139849831081115101185
Coalmining: Trucker, eighteen years of age46582916341668177418161816
Agriculture and dairying: Youth, eighteen years of age *3109181033111611461146
Retailing of apparel: Shop assistant, after three ears' service20045011021142125712901324
Grocers' assistant: After three years' service2504261064112612391291112911
Juvenile Females
Biscuit and confectionery factory: Assistant, after three years' service1604169771005110611361164
Footwear manufacturing: Assistant, after three years' service1904008610890101210401153
Woollen-mill: Worker, after three years' service2264109791020112211531181
Clothing factory: Improver, after three years' service19243096710001100113011510
Printing trade: Worker, after three years' service *44694101000112211531153

AGGREGATE WEEKLY WAGE PAYMENT IN INDUSTRY.—The following data, showing the average weekly wage payout in industry and relating to October 1956, have been extracted from the half-yearly survey conducted by the Department of Labour.

Industrial GroupPay-roll Strength, Males and Females Combined (including Juveniles and Salaried Executives)Weekly Wage Payout (Including Overtime, Bonus Earnings, etc.)
AggregateAverage Per Person
££s.d.
Forestry, logging, mining, and quarrying—
  Forestry2,46328,88111146
  Logging2,70543,7711638
  Coalmining4,36078,7911815
  Other mining1842,4811398
  Quarrying (n.e.i.)1,25018,46214155
      Totals10,962172,38615146
Seasonal manufacturing—
  Meat processing, etc.11,627178,7611576
  Fruit and vegetable preserving1,34313,6651036
  Dairy factories5,31488,442161210
      Totals18,284280,8681573
Food, drink, and tobacco (other than seasonal)—
  Grain milling85312,2271468
  Bread bakeries2,26232,67814811
  Biscuit making1,34916,1881200
  Cake and pastry making1,50316,8441142
  Sugar and confectionery2,38328,7751216
  Other food1,71820,50011188
  Beverages2,80941,88014182
  Tobacco manufacture1,21614,37111164
      Totals14,093183,4631304
Textiles, clothing, and leather—
  Tanneries1,25418,20314104
  Fur dressing and manufacture1852,13011103
  Leather goods788,41110158
  Knitted wear and hosiery3,5339,5121134
  Flax, rope, and twine4406,048131411
  Woollen mills2,70930,8291177
  Other textile production1,22415,67712162
  Clothing manufacture18,065169,962982
  Footwear manufacture4,42751,04411107
  Footwear repair2002,23911311
  Other textile articles1,37515,7761196
      Totals34,198359,83110105
Building materials and furnishings—
  Sawmilling, plywoods, etc.8,923129,58114105
  Builders' woodwork4,08455,15413101
  Furniture and cabinets4,05150,4561291
  Other wood manufacture1,21214,535111910
  Brick, tile, and stoneware1,16917,15614136
  Pottery and glass1,69324,1241450
  Lime, cement, etc.4,77172,6051544
      Totals25,903363,6111409
Engineering and metalworking—
  Engineering and machinery21,227304,3691469
  Electrical manufacture4,72861,5751306
  Ships, locomotives, etc.6,72698,75414138
  Vehicle and cycle manufacture4,69078,71116158
  Vehicle repair and aircraft19,638250,00312148
      Totals57,009793,41213184
Miscellaneous manufacturing—
  Chemicals and by-products5,70982,74314910
  Rubber manufacture2,96848,95216910
  Paper and paper products4,11560,92014161
  Printing, publishing, and allied10,119141,25213192
  Instruments, clocks, jewellery1,04112,00511108
  Other manufacturing (n.e.i.)2,11725,5831218
      Totals26,069371,4551450
      Totals, manufacturing industries175,5562,352,6401380
Power, water, and sanitary services12,164181,28814181
Building and construction50,455724,2191471
Transport and communication—
  Rail transport19,379319,77616100
  Road transport15,122224,58814170
  Water transport (not waterfront)4,98882,79916120
  Air transport1,88831,68016157
  Post and telegraph20,445273,3781375
      Totals61,822932,2211517
Distribution and finance—
  Wholesale and retail trade85,3771,057,1281278
  Storage6479,64914183
  Finance11,044155,4101415
  Insurance5,44372,35013510
  Real estate1,27116,7221332
      Totals103,7821,311,25912129
Wool and grain stores (seasonal)2,18227,45912118
      Totals (including wool and grain stores)105,9641,338,71812128
Domestic and personal services—
  Provision of lodging, food, etc.14,253159,0261132
  Portrait and photo studios8378,81010106
  Laundries, cleaning, etc.3,76144,10911147
  Barbers, beauty shops, etc.1,42211,563828
  Recreation, sports, etc.4,68866,75514410
  Undertaking, etc.3865,39613197
      Totals25,347295,65911133
Administration and professional—
  Hospitals22,676254,4161145
  Medical and allied services2,33825,41010174
  Education and instruction26,572398,8271502
  Arts, sciences, and religion1,73323,69013135
  Government services (n.e.i.)17,687253,0521462
  Local authorities (n.e.i.)9,014127,7161434
  Miscellaneous services and agencies9,359105,21411410
      Totals89,3791,188,32513511
      Grand totals, all industries (including seasonal)531,6497,185,45613104

The next table shows a comparison over a period of years of the grand totals, all industries surveyed, together with nominal minimum weekly wages for adult males prescribed in awards and industrial agreements at the end of the preceding month.

YearPay-roll Strength, Males and Females CombinedWeekly Wage Payout (Including Overtime, Bonus Earnings, etc.)Nominal Minimum Weekly Wage For Adult Males as Prescribed in Awards and Industrial Agreements as at End of Preceding Month
AggregateAverage Per Person
££s.d.£s.d.

* Does not include retrospective payments arising from the general order of the Court of Arbitration of 19 November 1953.

1946—April401,3922,525,0656510650
    October411,5832,640,617684676
1947—April425,1882,833,4426133688
    October427,3482,971,46961916910
1948—April439,9203,245,1627766190
    October438,4803,239,908779702
1949—April448,5193,467,7937148730
    October450,1043,632,6638157123
1950—April459,6983,780,6348467126
    October457,0284,016,48581598010
1951—April463,8884,526,72791528198
    October465,7284,729,15910319311
1952—April475,9754,945,72410710960
    October474,3165,050,689101309146
1953—April487,9135,401,499111591411
    October487,2665,409,859*1121*101410
1954—April502,4426,089,624122510150
    October502,4476,206,036127010164
1955—April516,5736,590,487121521147
    October519,2556,853,35313401159
1956—April531,7127,090,09913681174
    October531,6497,185,456131041191

HOURS OF LABOUR.—The following table shows index numbers of the number of hours constituting a full week's work in the various industrial groups for 1914, 1939, and for each year from 1946 to 1956. Where years are combined in the heading, the figures for each separate year are identical. The material from which the index numbers have been compiled has been taken from the awards of the Court of Arbitration in most cases; but where hours were not prescribed in the awards, reference was made to the Factories Act and the Shops and Offices Act. It has been necessary to omit the agricultural and pastoral workers group from these computations, since, with certain exceptions (and those only in recent years), hours of farm labour are not fixed. For each sex the base is the New Zealand weighted average for each industrial group, 1954 (= 1000).

INDEX NUMBERSOF AVERAGE HOURSOF LABOUR

Base: Each group and each sex separately, 1954 (= 1000)

Industrial Group191419391946194719481949 to 1956

NOTE.—Inter-group comparisons in this table are indicative merely of the relative movements in each industrial group, not of the actual relative level of hours of labour in the different groups.

Adult Males
Provision of—
  Food, drink, etc.1,3101,0891,0001,0001,0001,000
  Clothing, footwear, and textiles1,1551,0251,0001,0001,0001,000
  Building and construction1,1411,0001,0001,0001,0001,000
  Power, heat, and light1,2251,0051,0051,0001,0001,000
  Transport by water and air1,2411,0341,0321,0001,0001,000
  Transport by land1,2071,0451,0421,0001,0001,000
  Accommodation, meals, and personal service1,5311,0291,0111,0001,0001,000
Working in or on—
  Wood, wicker, seagrass, etc.1,1461,0001,0001,0001,0001,000
  Metal1,1641,0001,0001,0001,0001,000
  Stone, clay, glass, chemicals, etc.1,1861,0071,0001,0001,0001,000
  Paper, printing, etc.1,0941,0001,0001,0001,0001,000
  Skins, leather, etc.1,2011,0411,0001,0001,0001,000
  Mines and quarries1,2271,0831,0831,0831,0411,000
All groups combined1,2051,0281,0151,0031,0021,000
Adult Females
Provision of—
  Food, drink, etc.1,1251,0001,0001,0001,0001,000
  Clothing, footwear, and textiles1,1581,0391,0001,0001,0001,000
  Accommodation, meals, and personal service1,4031,0281,0121,0001,0001,000
Working in paper, printing, etc.1,1261,0001,0001,0001,0001,000
All groups combined1,2161,0331,0031,0001,0001,000

The Industrial Conciliation and Arbitration Amendment Act 1936 contained, inter alia, provisions aimed at the establishment of a forty-hour week, without reduction in the weekly wage rate. New awards were to contain a provision to this effect, except that the Court might fix longer hours, but was required to state its reasons for so doing. Awards in existence at the time the amendment was passed could be reviewed on application of the unions concerned with a view to the fixing of a forty-hour week. The Factories Amendment Act 1936 required the fixing of a forty hour week in factories, but made provision for the Court of Arbitration to grant exemptions on application, but the exemption provision was repealed by the Factories Amendment Act 1945. The Shops and Offices Amendment Act 1936 reduced the working hours in shops from forty-eight to forty-four per week, and a further reduction to forty hours was made by later amendments passed in 1945 and 1946. With one or two exceptions, there was little or no change in the indices between 1938 and 1944, but with the operation of the Factories Amendment Act 1945 and the Shops and Offices Amendment Acts of 1945 and 1946 a slight decrease was recorded in 1945, followed by a more substantial one in 1946. The effect of the Shipping and Seamen Amendment Act 1946, which reduced seamen's hours to forty per week, is apparent in the 1947 figures. Employees in wood and coal yards, motor and horse drivers, and restaurant workers also obtained a forty-hour week in the same year. From 5 April 1948 a seven-hour day was, by decision of the Coal Mines Council, introduced for all underground workers in coal mines. By section 6 of the Mining Amendment Act 1948 this provision was extended as from 1 January 1949 to underground workers in other mines.

SUMMARY OF INDEX NUMBERS.—The following table gives a summary for the years 1946–56 of the movements in index numbers covering both wage rates and hours of labour.

WEEKLY WAGE RATES, HOURLY WAGE RATES, AND HOURSOF LABOUR: ALL INDUSTRIAL GROUPS COMBINED

Base: 1954 (= 1000)

YearNominal Weekly Wage RatesHourly* Wage Rates: Males, AdultHours of Labour
AdultsJuvenilesMales*Females
MalesFemalesCombinedMalesFemales

* Excluding the agricultural and pastoral group.

19465835425795415325851,0151,003
19476065716025805736121,0031,000
19486466246446276336461,0021,000
19496826746826726826851,0001,000
19507297277297327487291,0001,000
19518298178288218528281,0001,000
19528718528698668808611,0001,000
19539299249299329339271,0001,000
19541,0001,0001,0001,0001,0001,0001,0001,000
19551,0351,0391,0361,0321,0391,0371,0001,000
19561,0551,0561,0551,0511,0611,0601,0001,000

Chapter 38. SECTION 38—LABOUR LAWS AND ALLIED LEGISLATION

38 A—LABOUR LAWS, ETC.: HISTORICAL INTRODUCTION

HISTORICAL INTRODUCTION.—In 1858 the New Zealand Parliament enacted that the laws of England as existing on 14 January 1840 should, as far as applicable, be deemed to apply in New Zealand also. But in what was an essentially agricultural and pioneer country conditions demanding labour legislation were not present, so that there was but little early progress in labour legislation. Initially, labour administration was interpreted in the light of English statutes, but such interpretations were largely ineffective, owing to the vast difference between English and New Zealand conditions.

One industry, however, was as important to New Zealand as to the British Isles—the shipping industry. In 1854 Britain passed a consolidating Merchant Shipping Act which contained numerous safety clauses and included a series of regulations aimed at the wellbeing of the crew, such as a wage-paying code and provisions as to seamen's accommodation, diet, and medical comfort. In 1858 the New Zealand Parliament extended these regulations of the working conditions of seamen to all British ships under the jurisdiction of New Zealand. A series of Merchant Shipping Acts Adoption Acts was passed in 1869, 1873, and 1874, taking over certain provisions of the British Merchant Shipping Acts of 1862, 1872, and 1873, while other Acts followed in 1877, 1885, and 1890.

Apart from the regulation of working conditions on board ship, early New Zealand social legislation concerned itself mainly with such general social problems as the care of orphans and the encouragement of thrift by means of suitable institutions. The Master and Apprentices Act of 1865 and the apprentice protection sections of the Offences against the Person Act of 1867 regulated the apprenticeship of young persons to farmers and tradesmen, stipulating that they were to be provided with food, clothing, bedding, and a moral education. These provisions were apparently intended to safeguard the training and interests of destitute children. In 1856 a law was passed to facilitate the formation of friendly societies in New Zealand, and the establishment of savings banks was to be stimulated by an Act of 1858. The Act providing for the establishment of the Post Office Savings Bank was passed seven years later. A Distress and Replevin Act (1868) regulated the conditions under which goods and chattels might be seized as a distress for arrears of rent.

Trade-unions legislation commenced with the Trade Unions Act passed in 1878, affording unions protection from prosecution for conspiracy by reason merely that their purposes were in restraint of trade. The Inspection of Machinery Act 1882 provided for the inspection of machinery in factories, etc., and required that persons in charge of boilers be properly qualified. An Employers' Liability Act was passed in 1882, legislating in the matter of industrial accidents with the object of mitigating the common law disabilities which rendered valueless in practice the injured worker's claim for damages for his employer's negligence.

Legislation specifically governing the conditions of employment of women and girls—particularly in respect of hours of labour—was introduced in 1873, there being several amendments to the Act in later years, while the legislation was amended and consolidated in 1881. Regulation of the hours of labour of children was also provided for. With the existence of slump conditions in the “eighties” allegations of “sweating” arose; and, since such complaints became increasingly numerous, a Commission was set up in 1889 to inquire into this evil. The Commission found that the Employment of Females Act was ineffective owing to the lack of the necessary powers of enforcement. The Commission declared that actual “sweating” conditions were not present, though a minority report differed from this view, but pointed out that with increasing industrialization such conditions would rapidly become prevalent if no attempt were made to check them. The Commission made recommendations for future labour legislation, and as the result of its findings the Factories Act of 1891 was passed.

Depression, discontent, and a growing labour force—despite depression, the number of hands employed in factories increased by approximately 16 1/2 per cent between 1885 and 1890—formed an economic background favourable to social legislation. Meanwhile the maritime strike of 1890, which caused even further distress throughout the country, proved to the trade unions that they were not sufficiently strong to obtain their demands by direct action, and diverted their activities to the political field. The strike also aroused public opinion to the necessity for preventing such industrial strife. Political opportunity was still further opened by Sir George Grey, who in 1889 obtained parliamentary approval for the abolition of the last remnant of plural voting at the elections to the House of Representatives. The extension of the franchise to women followed four years later.

In January 1891 a Liberal Government came into power under the leadership of Ballance, with Reeves (Labour) and Seddon (Public Works) in the portfolios directly concerned with labour matters. The economic and political background demanded social change, and the change came to such a degree that New Zealand—still in the pioneer stage of economic development—acquired world fame as the land of advanced social legislation. The labour code enacted in the “nineties” was not so much socialistic as a correction of the more manifest injustices of an individualist system. There was not so much State control as an improved framework within which laissez faire could operate. This policy was most clearly seen in the realms of housing and farming, in which the Government aimed at making it easier for the worker to build or to settle on land by the provision of finance through the State Advances Department (established in 1894). The Family Homes Protection Act 1895 provided protection for homes from the legal processes resulting from bankruptcy proceedings, etc. The only encroachment on laissez faire principles was the fostering of co-operation on public works from 1891 onwards.

Working conditions were improved by legislative regulation in four types of industry (factory work, shipping, shops and offices, and coal mining), wages being also safeguarded though not directly increased.

The great achievement of this Administration, however, was the evolution of machinery—the Conciliation Councils, the Court of Arbitration, and the Department of Labour—which not only administered the labour code efficiently, but could also modify it rapidly to suit the changing economic background. This dynamic machinery was far more effective than the all too soon antiquated improvements by the more normal procedure of static legislative enactment. An adjustable labour code was of special advantage to a primary-produce exporting country which is, of all countries, most open to the fluctuations of economic progress, and it is another example of the British empiricism that delights in suiting action to the conditions of the moment.

This code, and the resulting constant political intervention in labour conditions, profoundly modified labour organization. Since resort to judicial rather than to militant action became the accepted means of settling industrial disputes, much of the bitterness usually associated with the struggle for improved wages and working conditions was lost. Moreover, the close association with the Courts led to the growth of a strong political bias in the aims of unionism. This was but natural, for, since the legislative code ensured to the workers many benefits for which they would otherwise have had to fight keenly, it was felt that the further amelioration of living conditions would best be attained by legislation rather than by direct action.

Subsequent progress has been determined largely by this code, although the swing visible in the development of English labour legislation from Salisbury's Factory Acts to Lloyd George's pension schemes—from concrete intervention in working conditions to attempts at ensuring a more equitable distribution of the national income—is also evident in New Zealand. For example, the rate of age benefit (formerly old-age pension) has been increased considerably—from £18 per annum (1898), to £45 10s. (1925), to £52 (July 1936), to £58 10s. (December 1936), to £78 (April 1939), and, by increases at intervals during the war and post-war years, to its present (March 1957) figure of £192 8s.

Prior to the passing of the Social Security Act 1938 (see Section 7A) the initial pre-eminence of New Zealand in respect of social legislation generally had been largely lost. Hitherto the only governmental provision towards sickness insurance was the National Provident Fund established in 1911. This scheme is a voluntary one, State aid being in the direction of administration, together with a subsidy. The Social Security Act is much wider in scope than similar legislation in most other countries; but it is worthy of note that compulsory health insurance, operative in New Zealand only from 1 April 1939, was in operation for many years in several other countries—e.g., Germany (1883), Great Britain (1911).

National provision for the relief of unemployment did not become law in this country until 1930, whereas in Great Britain legislation dealing with this subject has been in force since 1911. The earliest legislative action specifically focused on unemployment-insurance matters was taken, as far as can be ascertained, in Denmark in the year 1907. Other countries which introduced unemployment insurance before New Zealand were: Austria, 1920; Queensland (Australia), 1922; Italy, 1923; and Germany, 1924.

A Workers' Compensation Amendment Act was passed in October 1936 liberalizing the scale of payments in respect of accidents. The Social-Security Act has rectified the pre-existing deficiencies in New Zealand legislation in regard to medical benefits and unemployment, as compared with the position in other countries.

Up to 1936 progress in other spheres was limited to technical improvements on the original Ballance-Seddon code, except perhaps in the case of the fluctuating fortunes of the Court of Arbitration. During the twenty-six years of prosperity from 1895 to 1921 (there was but a slight setback in 1909–10) the scope of the Court's awards and industrial agreements was gradually expanded, the most important step being the power conferred in 1898 of prescribing minimum rates of wages. Whereas the Court was originally more concerned with conditions of work, and not at first with wages, there has been a gradual transformation, till in recent years the attention of the Court has been mainly focused on the wages question. As the Court is progressive, or at least not static, its influence expanded at the cost of stationary measures, such as Factories Acts, which, in practice, became a dead letter as affecting workers under the jurisdiction of the Court. During the depressed years following 1921 wages were reduced, to the dissatisfaction of the workers, yet not fast enough for employers, so that the value of the Court was increasingly questioned till a National Industrial Conference was summoned in 1928 to discuss, inter alia, compulsory arbitration. In the boom years between 1927 and 1930 no action was taken; but in 1932, under stress of depressed conditions, amendments were made to the Act which in effect abolished the system of compulsory arbitration. The Industrial Conciliation and Arbitration Amendment Act 1936 restored the full powers of the Court.

Though no great inroads have been made on the wages system, there has been definite governmental and legislative encouragement of co-operation. In 1891 much public-works construction, such as road and railway formation, was first organized on this principle. The plant, explosives, etc., were supplied to the men by the State at cost price or on low hire terms. A modified form of the system then adopted is still followed, and its scope was increased in 1936. Similarly, the Companies Empowering Act of 1924, the provisions of which were embodied in the Companies Act 1933 and later in the 1955 Act, attempted to encourage the principle of profit-sharing among workers. Any company registered under the Companies Act was empowered to issue to its employees labour shares which are not transferable, have no nominal value, and do not form part of the ordinary capital of the company. Except as otherwise provided, these shares entitle the holders to the same privileges as the ordinary shareholders. In the event of an employee leaving his employment or dying, the shares must be surrendered in cash or in capital shares to him or to his heirs. Another Act in the early “twenties” aimed at fostering co-operation among farmers, but it became, in practice, a dead-letter.

There was in the original labour code a definite policy of ensuring greater opportunities for the masses by financing farming and house-building projects through the State Advances Department. This provision of easy credit to put workers on the land was the rural aspect of the labour code, for, apart from some provision for the inspection of housing, there were no other measures designed for the agricultural labourer. Even the Court of Arbitration in 1908, 1919, and 1925 refused to make any award covering permanent farm labour. Full provision for the application of standard rates of wages, etc., to farm workers was made in 1936 (see Agricultural Workers Act, later). The policy of social lending survived the years of prosperity, and was employed to cope with part of the rehabilitation necessitated by the First World War; but the policy was reversed a little later, and the Rural Advances Act of 1926 was a definite attempt to put State Advances loans on a more economic basis, eliminating much of the social background. This tendency was completed by the creation of the Mortgage Corporation in 1935, which definitely marked the subordination of social to economic ends. The agricultural bias and the workers' loans of up to 95 per cent of their security were both eliminated, in theory at least. At the same time loans for housing were reintroduced for Maoris late in 1935, and further activity in this sphere was foreshadowed by the Housing Survey Act of 1935. The Government was also empowered to lend to farmers, through the Lands Department, by the Dairy Industry (Emergency Powers) Act of the same year.

The State Advances Corporation Act 1936 marked a definite reversal of the previous Government's policy in regard to State Advances loans. The Mortgage Corporation was abolished, its powers having been taken over by the State Advances Corporation, while the general purpose of the 1936 Act was definitely in the direction of a liberalization of the lending policy of the State.

During the depression period there was a cessation of the move towards better working conditions; and, on the grounds of economic circumstances and the danger of inconveniencing still further already bankrupt employers, the various inspection duties that usually preserve the labour code were curtailed. The rates of pensions and of public servants' salaries and wages were reduced, while award rates of wages were also compulsorily reduced. At the same time heavy unemployment liabilities were undertaken and immigration control was made more rigid. Steps were also taken to reduce farmers' mortgage liabilities and to maintain farmers on their land.

In no case do the provisions laid down by any particular labour law cancel the worker's rights at common law; but since, naturally enough, better conditions are laid down by statute than the worker is entitled to at common law, it is unusual to find in these days litigation under the common law affecting master and servant. It sometimes happens, however, notably in workers' compensation cases, that appeal is made at common law instead of under the Act, there being no statutory limits to the damages which may be obtained at common law. Since, with the exception of such of the labour statutes as are of general application, no labour legislation exists as yet affecting certain classes of workers—e.g., domestic servants—their relations with their employers are still governed mainly by the common law affecting master and servant.

New Zealand had been relatively backward in protection for permanent farm labour, for while seasonal labour was in general covered—awards existing both for shearers, musterers, and shed hands and for threshing-mill workers—the Court of Arbitration had made no awards in respect of permanent farm hands. In general, conditions of work on farms were not covered by any specific legislation—except as regards inspection of housing accommodation—until, in 1936, the Agricultural Workers Act was passed, containing definite provision as to wages of dairy-farm workers (extended later to cover other classes of farm workers) and better provision for the housing of agricultural workers generally. Similar legislation existed in many of the older countries for years past. Further improvement in the position of agricultural workers was made by the Share-milking Agreements Act 1937, which defined, inter alia, minimum percentages of the milking returns to be received by share-milkers.

The general trend of labour legislation since 1936 has been conditioned by three major influences. The first of these was primarily economic in origin, legislation being necessary to cope with continuing and derived problems associated with the economic depression and subsequent recovery. The second, with its origin in the international political developments culminating in war during 1939, was responsible for a considerable volume of wartime and post-war legislation. The third element was of a more general nature, being the direct motivating force behind some major items of legislation and often indirectly influencing the content of other Acts and amendments passed during the various sessions. Briefly, it can be described as full acceptance of the principle that society, through its representative institutions, should take active steps towards the improvement of the working, living, and social circumstances of its individual members. The appropriate action in many instances has required legislative sanction to provide for either direct control or regulation by the Government.

As a point of possible interest, although not of particular relevance to labour legislation, it is possible to discern three other main lines of approach to law-making. One of these is due to the increasing participation by New Zealand in international affairs consequent on its enhanced national status and acceptance of responsibility in the wider issues of the present era. The others are domestic; one is concerned with the welfare and social development generally of both the rapidly growing Maori population and the inhabitants of New Zealand's island and trust territories, and the other with the realignment of statutes relating to law and order to meet present-day conditions and concepts—e.g., revision of offences, summary jurisdiction, penal institutions, and criminal justice.

The economic depression and subsequent recovery were substantially the background for the major labour measures listed below commencing from the 1936 session. In addition, extensive amendments to pre-existing labour laws were made by the Government towards the formulation of a more liberal code of social legislation. Provisions novel to New Zealand were also made with the same object in view—e.g., the Agricultural Workers Act, and the provision for the declaration of a basic wage contained in the 1936 amendment to the Industrial Conciliation and Arbitration Act. Acts dealing directly with labour questions were the Employment Promotion Act 1936, Industrial Conciliation and Arbitration Amendment Acts of 1936, 1937, and 1939, Factories Amendment Act 1936, Shops and Offices Amendment Act 1936, Agricultural Workers Act 1936, Coal Mines Amendment Acts 1936 and 1937, Workers'Compensation Amendment Act 1936, Mining Amendment Act 1937, Share-milking Agreements Act 1937, and the Wages Protection and Contractors' Liens Act 1939.

In addition to the Acts mentioned, provisions in several other Acts dealt with matters which can properly be regarded as coming within the subject matter of this Section. The following Acts, or provisions in Acts, may be referred to in this connection: Certain provisions in the Finance Act 1936 dealing with restoration of wages and salaries, Distress and Replevin Amendment Act 1936, Fair Rents Act 1936, Family Allowances Amendment Act 1936, Pensions Amendment Acts 1936 and 1937, Prevention of Profiteering Act 1936, Mortgagors and Lessees Rehabilitation Act 1936, State Advances Corporation Act 1936, and the Petroleum Act 1937.

As previously mentioned, the war period was productive of much legislative activity of relevance to labour conditions. In some instances the object was essentially precautionary, while in others it was designed to cope with situations as these emerged or developed. Principal measures with some application to industrial conditions were the Industrial Conciliation and Arbitration Amendment Act 1939, Emergency Regulations Act 1939 and later amendments, War Pensions Extension Act 1940, War Pensions and Allowances (Mercantile Marine) Act 1940, various provisions of the Finance Acts (Nos. 2, 3, and 4) 1940, Rehabilitation Act 1941 and 1944 amendment, War Damage Act 1941 and 1942 amendment, Servicemen's Settlement and Land Sales Act 1943, and the War Pensions Act 1943 (consolidation and amendment).

More comprehensive legislation directly governing wartime labour activities was contained in the series of emergency regulations and amendments issued during 1939–45, including orders made under the authority of the latter. For further reference to the scope of the regulations listed below the reader should consult pages 625–629 of the 1946 Year-Book, wherein the subject matter is presented in greater detail.

The principal features of the war-inspired legislation are now briefly discussed. An essential over-all measure, the Labour Legislation Emergency Regulations 1940, gave the Minister of Labour power to modify or suspend, by order published in the Gazette, the provisions of any Act, or of any award or industrial agreement under the Industrial Conciliation and Arbitration Act, or of any voluntary agreement, in so far as they related to conditions of employment. The object of these regulations, intended to be temporary in nature, was to overcome the effects of the shortage of skilled workers in certain industries which were essential to the efficient prosecution of New Zealand's war effort. Provision was therefore made by these regulations and the various orders issued under their authority for the working of shifts, extending the number of hours that could be worked in any one week, and relaxing apprenticeship conditions, while in certain trades the basic-wage provision was modified to enable women workers over twenty-one years of age without previous experience to be employed.

The National Service Emergency Regulations 1940, which with amendments were reprinted in 1944, empowered the Minister of Industrial Man-power to declare any industry to be an essential industry. Special provisions applied with respect to employment in essential undertakings—for example, a person could not, in general, leave his employment or be dismissed or be permitted to give his services in any other undertaking without seven days' notice on either side and the permission of the District Man-power Officer first being obtained. Every employee in an essential industry was entitled to a minimum weekly payment equivalent to his ordinary weekly wage, subject to certain maxima specified by regulations. Other provisions detailed offences under these regulations, protected employees called up for military service from dismissal, and prevented employment of deserters from the Armed Forces or military defaulters, etc.

In addition to controlling those avenues in which industrial effort was expended, and its corollary entailing the direction of man-power, a third general feature was supervision over the field of transportation. The Waterfront Control Commission Emergency Regulations 1940 provided for a Waterfront Control Commission with very extensive powers, including the employment of labour, the prescription of terms and conditions of such employment, and rates of remuneration.

It was early realized that the effects of wartime shortages of supplies and of man-power would have repercussions on prices and wage rates. In an endeavour to minimize such movements and preserve a reasonable degree of stability in both these sectors of the economy, regulations were issued in 1939 and 1940 dealing with the control of prices and regulation of wage rates respectively. Further information on price control and the Control of Prices Act 1947 is given in Section 36 of this issue. The Rates of Wages Emergency Regulations 1940 provided that the Court of Arbitration from time to time, on the application of any industrial union or association of workers, might amend by general order the provisions of all awards and industrial agreements in force in so far as they determined rates of remuneration.

These regulations were superseded by the Economic Stabilization Emergency Regulations 1942, providing for the stabilization of all rates of wages and remuneration at the levels ruling on 15 November 1942. These regulations were amended in 1944, 1945, and 1947.

Wartime legislation dealing with the stabilization of wages was in part placed on a permanent basis by virtue of the passing of the Economic Stabilization Act 1948. This Act revoked Parts II and V of the Economic Stabilization Emergency Regulations 1942, while other specified emergency regulations were continued in force as stabilization regulations as if they had been made under the authority of the 1948 Act. Provision was made for the establishment of an Economic Stabilization Commission with the principal function of making recommendations to the Minister of Industries and Commerce, after inquiry and investigation, in relation to the economic stabilization of New Zealand and the functions of the Minister under the Act. Besides general administration, these latter functions cover in particular the stabilization, control, and adjustment of prices of goods and services, rents, other costs, and rates of wages, salaries, and other incomes.

The Economic Stabilization Emergency Regulations 1942 were amended in several important respects in February 1949. The Economic Stabilization Regulations 1950, however, revoked and replaced the Economic Stabilization Emergency Regulations 1942 and amendments.

The 1950 regulations, as amended in May 1950, were themselves revoked and replaced by the Economic Stabilization Regulations 1952.

The 1952 regulations were in their turn revoked in May 1953 by the Economic Stabilization Regulations 1953, the current series.

A comprehensive review of the development of the Economic Stabilization Emergency Regulations and the later Economic Stabilization Regulations from 1942 to 1953 is given in Section 38c pages 1032–6 of this issue.

Two other classes of legislation due to the impact of war on labour questions may be mentioned briefly. The first covers the reinstatement of employees after military service, the re-establishment in civil life of discharged servicemen, and the reconstitution of wartime industries on a peacetime basis. Legislation concerned with these aspects included the Occupational Re-establishment Emergency Regulations 1940 (now revoked and subject matter covered in the Military Training Act 1949) and the Rehabilitation Act 1941 and amendments. Further details of this and the Emergency Forces Rehabilitation Act 1953 are given in Section 9B of this issue.

The second class of legislation dealt with the necessity for definite rest periods for workers, particularly in view of the heavy demands made on a very large section of them by a wartime economy. Early provisions for a minimum rest period were contained in the Industrial Rest Period Emergency Regulations 1943, later replaced by permanent legislation embodied in the Annual Holidays Act 1944. This Act provides for an annual holiday of two weeks' duration on full pay for all workers, whether permanently or casually employed, who are not otherwise catered for in this respect.

Reference has been made earlier to the fact that much New Zealand social legislation—particularly in recent years—is designed to mitigate the effects of inequalities in the distribution of incomes. Foremost in this category is the Social Security Act 1938, which at the same time introduced monetary benefits on an increased scale in substitution for pre-existing pension benefits and extended the specific tax provisions contained in pre-existing unemployment legislation to cover the wider social security benefits. A system of medical, hospital, and other related benefits was also inaugurated. In addition to the supersession of the various classes of pensions by monetary benefits of similar application, new classes of monetary benefits were begun, such as orphans' benefits, sickness benefits, emergency benefits, and the superannuation benefit. Further evidence of this trend is shown by a series of regulations extending the scope and character of social security benefits, and by the amending Acts of 1941, 1943, 1945 (which made family benefits universal from 1 April 1946), and later years increasing the amount payable for specified benefits. Related legislation includes the Social Security (Reciprocity with Australia) Act 1948, the War Pensions Act 1954 (consolidating previous legislation), Family Benefits (Reciprocity with Great Britain) Act 1948 and a similar Reciprocity Act with Northern Ireland in the same year, and the Social Security (Reciprocity with the United Kingdom) Act 1956.

Several measures dating from 1936 are focused on the theme of compensation for injury or death. Amendments to the Workers' Compensation Act 1922 were passed in 1936, 1943, 1945, 1947, and 1949–54. The 1943 amendment made it compulsory for an employer to insure against his liability under the Act, while by the 1947 amendment, under section 6, workers' compensation insurance became, with certain exceptions, a monopoly of the branch of the State Fire Insurance Office known as the State Accident Insurance Office as from 1 April 1949. Other provisions of the latter amendment related to accident prevention; occupational training of seriously disabled workers; an increase in the maximum amount of compensation payable in respect of death, incapacity, or permanent physical injury; accidents to the crew of a New Zealand aircraft; accidents to workers travelling to and from work; the provision of artificial limbs; and the conveyance of injured workers. Dependency is also to be determined as at the date of death of the worker. The 1949 to 1952 amendments increased the maximum amounts payable in respect of death or incapacity. The 1950 amendment restored the right of insurance companies to undertake as from 1 April 1951 employers' liability insurance. It also established the Workers' Compensation Board with the functions of recommending maximum rates of premiums and rates of commission for insurance agents, and administering the Workers' Compensation Account also set up by the amending Act, etc. The 1951 Amendment (No. 2) Act provided for compensation for incapacity lasting less than three days. The 1952 amendment provided for compensation for loss of earning power to be based on wages as varied from time to time—e.g., as a result of general orders, standard wage pronouncements, etc. The 1953 amendment, besides increasing maximum amounts payable, also provided that future changes in minimum or maximum amounts of compensation payable or in weekly payments are to be made by Order in Council. Compensation based on average weekly earnings is to be based on weekly earnings increased or reduced in accordance with movements in wages occurring during the period of payments. The legislation was consolidated and improved by the Workers' Compensation Act 1956 (see section of this Year-Book on Workers' Compensation). The Law Reform Act 1936 and the Statutes Amendment Act 1937 also contained clauses relating to the Deaths by Accidents Compensation Act 1908. Allied to this subject is the Contributory Negligence Act 1947, which provides for the apportionment of damages where the person suffering damage has himself been guilty of contributory negligence.

A desire to improve working conditions still further is evident in the Coal Mines Amendment Acts of 1936, 1937, 1941, 1947, 1949, and 1953, the Mining Amendment Acts of 1937, 1941, 1947, 1948, and 1953, the Quarries Act 1944, and its 1951 and 1954 amendments. These contained provisions towards the improvement of working conditions in mines or quarries. Somewhat similar provisions, for example, regarding hours of labour and safety and health provisions, are to be found in the Factories Act 1946 (a consolidation measure), the Shops and Offices Act 1955 (a consolidation and Amendment of previous legislation), the Shipping and Seamen Amendment Acts 1946 and 1948 (and Rules and Regulations thereunder), and the Scaffolding and Excavation Amendment Act 1951.

Further instances of the broader social emphasis in labour legislation occur in the Legal Aid Act 1939; the Wages Protection and Contractors' Liens Act 1939; the Distress and Replevin Amendment Act 1950; the Destitute Persons Amendment Acts of 1951, 1953, and 1955; the Employment Act 1945, with its object of promoting and maintaining full employment at all times; the Minimum Wage Act 1945, providing for a minimum wage for all adult workers; and the Industrial Relations Act 1949, which authorized the appointment of the Industrial Advisory Council with functions of making recommendations for improving industrial relations and welfare, in particular on such schemes as incentive payments, profit sharing, safety and health of workers, provision of amenities, and the establishment of works committees and other employer-worker organizations. More extensive coverage of legislation concerned with safety provisions was accomplished with the passing of the Municipal Corporations Amendment Act 1938, the Bush Workers Act 1945, and the Scaffolding and Excavation Amendment Acts of 1948 and 1951, while the Dairy Industry Amendment Act 1938, the consolidating Dairy Industry Act 1952, the Meat Act 1939 and its amendment of 1953 contain clauses dealing with inspection requirements in their appropriate spheres. The Boilers, Lifts, and Cranes Act 1950 and the Machinery Act 1950, which together replaced the Inspection of Machinery Act 1928, are also relevant in this connection. The Radioactive Substances Act 1949, the Transport Act 1949, the Electricians Act 1952, the Physiotherapy Amendment Act 1953, the Geothermal Energy Act 1953, and the General Harbours Regulations 1954 likewise contain sections designed to promote safety in the appropriate sphere of operations.

Acts covering the working conditions and rates of remuneration for State employees during the period 1936–56 are the Government Railways Act 1949 (consolidation), the Post and Telegraph Amendment Act 1944, the Government Service Tribunal Act 1948, and their amending Acts.

Other items of legislation concerned with labour-force activities generally are now briefly mentioned. The Industrial Conciliation and Arbitration Amendment Act 1943 authorized recovery of money due under an award, while the 1947 amendment provided for the taking of a secret ballot by every industrial union of workers or of employers on questions relating to strikes and lockouts. The Statutes Amendment Act 1948 also included clauses relating to wages recovery under an award, and for retrospective payments (the latter repealed in 1951). A consolidating and amending measure relating to apprenticeship was passed in 1948, being the Apprentices Act of that year.

In accordance with the recommendations of the Royal Commission on the waterfront industry appointed in 1950, the Waterfront Industry Act 1953 provides for the continuance of the existing Waterfront Industry Commission, Waterfront Industry Tribunal, and Port Conciliation Committees, and in addition provides for the appointment of Combined Committees and for National Conciliation Committees. Provision is also made for a National Amenities Committee and Port Amenities Committees with functions in relation to the provision of amenities for waterside workers. In other respects the Act follows closely the provisions of the 1946 regulations which were revoked by the Act.

In 1951, following on a long period of industrial trouble, more particularly in connection with the waterfront industry, the need for revision of certain aspects of industrial legislation was recognized. Subsequent legislation which might be considered as coming within this category include the 1951 amendments to the Industrial Conciliation and Arbitration Act and the Police Offences Act. The former of these required, inter alia, for the rules of an industrial union of employers or workers to provide for election of officers by secret ballot; empowered the Registrar to refuse to record unreasonable or oppressive rules; made provision for exemption from union membership on religious grounds; substituted new definitions of the terms strike and lockout, and increased the penalties for certain offences in connection therewith; provided for the appointment of Local and National Disputes Committees with power to decide disputes on matters arising out of an award or agreement but not specifically dealt with therein; varied the earlier provisions as to the date from which the wage rates in an award would normally operate; and contained restrictions on levies and subscriptions payable by members of unions. Part II of the same amendment related to cases of disputed elections in unions. The Police Offences Amendment Act 1951 dealt with offences relating to sedition and with intimidation, including assaults on workers, the unlawful display of certain posters, badges, etc., and picketing.

The entire body of fair-rents legislation commencing with the 1936 Act was revoked by the passing of the Tenancy Act 1948, the latter being amended in 1950 and 1953 and further amended in the consolidating Tenancy Act 1955. The Shipping and Seamen Act 1908 was amended in 1948; it was consolidated in 1952. The Fisheries Act 1908 was amended in 1948 and 1953. The Industrial Conciliation and Arbitration Act 1954 consolidated the 1925 Act and its amendments without making any substantial change in the law.

38 B—LABOUR LAWS, ETC.: WORKING CONDITIONS

GENERAL.—Working conditions of women and girls in factories were the subject of legislation as early as 1873; but the first legislation of this nature applying to all factory workers was the Inspection of Machinery Act of 1874, which provided for the inspection of machinery in factories, etc., and required that persons in charge of boilers should be properly qualified, while three years later an ineffective Factory Act was passed. But it was the Ballance and Seddon Governments which really initiated legislation in this sphere with five main Acts that have served as a basis for all subsequent legislation on this subject, and determined the lines along which progress was to be made—the Factories Act 1891, the Coal Mines Act 1891, the Shops and Shop-assistants Act 1892, the Shipping and Seamen Act 1894, and the Industrial Conciliation and Arbitration Act 1894. The Agricultural Workers Act 1936 represents a definite extension of the scope of this legislation.

A considerable proportion of the persons comprising the labour force of New Zealand have their working conditions determined either directly or indirectly by virtue of the provisions of the six Acts quoted above. Legislative authority covering the working conditions of substantially the greater portion of the remaining participants in the labour force is contained in the following, together with amendments thereto:

  • Public Service Act 1912 and the Government Service Tribunal Act 1948.

  • Government Railways Act 1949.

  • Post and Telegraph Act 1928 and Post and Telegraph Amendment Act 1944.

  • Police Force Act 1947.

  • Education Act 1914.

  • Hospitals Act 1926 and the Hospital Employment Regulations 1957.

  • Waterfront Industry Act 1953.

It will not be out of place here to mention that working conditions were subject to considerable modification during the war period by the operation of various emergency regulations. The principal regulations involved were the Labour Legislation Emergency Regulations 1940 and later amendments; the Industrial Man-power Regulations 1944; the Waterfront Control Emergency Regulations 1940, replaced by the Waterfront Industry Emergency Regulations 1946; and the Rates of Wages Emergency Regulations 1940, the latter largely superseded by the Economic Stabilization Emergency Regulations 1942 and amendments. Of these, the Industrial Man-power Regulations 1944 were revoked in 1946, the Rates of Wages Emergency Regulations 1940 in 1949, and the Labour Legislation Emergency Regulations 1940 in 1951. The emergency wages and stabilization regulations were replaced by regulations under the Economic Stabilization Act 1948. The waterfront industry regulations were replaced by the Waterfront Industry Act 1953.

It is proposed in the following pages to survey in broad perspective the working conditions laid down by legislation for the components of the labour force. In so doing it is considered that the best approach is to deal with the major specific Acts concerned.

ANNUAL HOLIDAYS ACT.—In addition to the specific measures mentioned earlier relating to working conditions, an Act of general application, except in cases where more favourable conditions already existed in awards, etc., was passed during the war entitled the Annual Holidays Act 1944, and subsequently amended in 1945 and 1950. This Act provides for an annual holiday of two weeks' duration on full pay for all workers, whether permanently or casually employed, who are not otherwise provided for in this respect. If a holiday benefit to which a worker is entitled under any other provision is not less favourable than that provided for by the Act, such benefit is not affected, but if the benefit is less favourable the worker is entitled to the holiday provided for by the Act.

The holiday is to be given within six months after it becomes due, but if the employment is terminated before it has been taken the employer is required to pay the amount of holiday pay due. If any special holiday for which the worker is entitled to payment under any Act, award, or agreement, or under his contract of service, occurs during the period of the annual holiday, the length of the annual holiday is increased by one day in respect thereof. An amendment passed in 1945 provided that not less than seven days' notice must be given by the employer of the day on which the annual holiday is to commence, unless an agreement has been made to the contrary.

Where a worker has been employed for less than one year, on termination of employment he is entitled to payment equal to one twenty-fifth of his ordinary pay for the period of employment. The 1950 amendment abolished the former provisions relating to holiday cards and stamps.

An employer is required to keep a record (holiday book) containing particulars of employment, annual holidays, and amounts paid in respect of each worker in his employment.

ANZAC DAY ACT.—The Anzac Day Act 1949 provides that the 25th day of April in each year shall be known as Anzac Day, and shall be observed throughout New Zealand in all respects as if Anzac Day were a Sunday. The Act prohibits the transfer of a holiday, observance of certain hours of labour, or payment at certain rates of wages on Anzac Day to any other day instead of Anzac Day, although an employer may grant a holiday on any other day instead of Anzac Day, where the worker is required to work on Anzac Day at ordinary rates of wages.

FACTORIES ACT.—A brief summary of the earlier factory legislation of New Zealand may be found on page 825 of the 1940 issue of the Year-Book. It covers the Factories Acts of 1891, 1908, and 1921–22, with their amendments. The last-mentioned enactment and subsequent amendments to it were, however, consolidated by the passing of the Factories Act 1946. In the ensuing paragraphs various phases of factory legislation as the law now stands have been selected for individual exposition.

Prior 1936 the term “factory” had included all establishments where two persons were employed, as well as all places using mechanical power, all bakeries, laundries, gasworks, and several other enumerated establishments. The 1936 amending Act extended the term “factory” to all establishments where one person was employed, thus bringing under the Act places where one self-employed person was engaged, while the Factories Act 1946, which consolidated and amended the existing legislation, further extended the term “factory” to include places where milk is pasteurized, abattoirs, and “every building or place in which any noxious handicraft, process, or employment is carried on.” The definition was varied to read “any building, office, or place in which two or more persons are engaged … directly or indirectly, in any handicraft, or in preparing or manufacturing goods for trade or sale,” thus excluding places where one self-employed person was engaged and reverting to the 1935 position. The 1946 Act also brought Government-owned factories within the scope of the legislation.

Hours of Work and Overtime.—A forty-hour week was prescribed by the 1936 amendment as the legal maximum for an ordinary working week in place of the pre-existing maximum of forty-eight hours (women and boys, forty-five hours). The number of hours per day was fixed at eight, while work could not be continued for more than four hours and one-quarter (previously five hours) without an intermission of at least three-quarters of an hour. Certain industries which were previously exempt from the forty-eight-hour maximum—meat-freezing works, dairy factories, fellmongery, fish curing, jam making, bacon curing—were also exempt from the operation of these provisions, but the Factories Amendment Act 1945 extended the principle of the forty-hour week to all factories. These provisions, as amended, were re-enacted in the consolidation measure entitled the Factories Act 1946.

No boy or girl under sixteen years of age is permitted to work overtime. No woman shall work more than three hours' overtime in one day (excluding time worked before noon on Saturday), and not more than nine hours in any week, nor ninety hours in any year, nor on more than two consecutive days in any week. Thirty hours (above the ninety) may be authorized by an Inspector of Factories, and a further eighty upon the consent of the Minister of Labour. The overtime rate is time and one-half, and the minimum rate, which had been raised to 1s. 6d. per hour by the Factories Amendment Act 1936, was increased to 1s. 9d. per hour by the Factories Act 1946.

There are special provisions in regard to work for industries where raw materials which, in the opinion of the Inspector, are subject to rapid deterioration are processed for sale as foodstuffs or where, in the opinion of the Inspector, extended hours are necessary in order to meet a public demand.

Holiday Provisions.—The number of paid holidays (apart from the annual holiday described earlier) granted to factory workers was increased from six days to eight days by the 1936 amendment and was extended to cover all workers—not only boys under eighteen and women as previously. For five of these days wages were payable to all persons employed at any time during the preceding fortnight, and for the other days to those employed on any four days of the preceding week. Payment for each whole holiday mentioned in the Factories Act was made to apply to all persons employed at any time in the fortnight ending on the day on which the holiday occurs. Special provisions have been made requiring extra payment to be made for work done on Sundays or holidays. Generally speaking, treble time is counted for work done on statutory whole holidays (where the worker would be paid ordinary time if not working), double time on Sundays, and time and one-half on half-holidays. In connection with holidays, reference should also be made to the Annual Holidays Act 1944, the provisions of which are outlined on page 1013.

There are also special provisions in regard to holiday work for industries such as dairy factories, milk-preserving factories, and newspaper printing or publishing. It should be noted also that the Public Holidays Act 1955 gives rules which shall be applicable to the provisions of any Act, award, or industrial agreement when Christmas Day and New Year's Day fall on a Friday, Saturday, or Sunday. The effect of the Act is broadly to provide that provisions regarding the granting of a holiday or observance of certain hours of labour or payment of certain specified rates of wages are carried over from Saturday and Sunday to Monday (or Tuesday). In a similar way, where an anniversary day of any province falls on a Friday, Saturday, or Sunday, the provisions governing a holiday, pay, etc., on anniversary day apply on the next succeeding Monday; it if falls on a Tuesday, Wednesday, or Thursday, the provisions apply to the immediately preceding Monday as if it were the anniversary day. Labour Day is deemed to be the fourth Monday in October.

Section 15 of the Statutes Amendment Act 1948 repealed the special definition of the terms “holidays” and “Sundays” in their application to morning newspapers and replaced them by new definitions which relate to all newspapers. A “day” for holiday and overtime purposes is defined as from noon on one day to noon on the following day in the case of newspaper offices and works.

Restrictions on Employment.—No boy or girl under fifteen years of age may be employed in any factory. No boy or girl under sixteen years of age may be employed in any factory unless a certificate of fitness is issued by an Inspector of Factories, and no such certificate may be granted unless the proposed employer obtains at his own expense a medical certificate of fitness from a Medical Officer of Health, or from a registered medical practitioner nominated by a Medical Officer of Health.

Minimum Rates of Pay.—The minimum rate of pay was raised by the Factories Amendment Act 1936 from 10s. to 15s. per week, and rose by half-yearly increments of 4s. per week until the end of the third year, when a minimum of £2 per week operated. The Factories Act 1946 further increased the minimum to 22s. 6d. per week with half-yearly increments of not less than 5s. per week, until a weekly rate of £2 12s. 6d. was reached. These rates are, however, subject to the provisions of the Minimum Wage Act 1945 and Orders made under the Act in respect of workers of twenty-one years of age and over.

Safety, Health, and Welfare.—The 1936 amendment extended the application of rules for the safety and welfare of factory workers, and further provisions in this connection are contained in the 1946 Act. The safety measures have reference to machinery, dangerous liquids, means of access and safety of places of employment, and means of escape in case of fire, etc. The employer is required to keep a register of all accidents of which he has any knowledge, and first-aid appliances must be provided and maintained. The health and welfare provisions are very extensive and include reference to such matters as air space, cleanliness, ventilation, canteens, the care of employees, amenities and other things to be supplied by the employer to secure employees' health or welfare, and to the making of regulations laying down standards as to what may be regarded as adequate, effective, sufficient, or suitable health and welfare requirements.

Other Provisions.—In addition to repealing previous factory Acts and amendments the Factories Act 1946 specifically stated that the Act shall bind the Crown. It also includes the normal provisions relating to powers of inspection, registration, maintenance of records and exhibition of notices, requisitions by Inspectors, and the prescription of offences, penalties, and procedure. Finally, it provides for awards and industrial agreements to be read subject to the provisions of the Factories Act.

SHOPS AND OFFICES ACT.—As in the case of the Factories Act, important amendments were made to the Shops and Offices Act 1921–22 in 1936, when further advances in keeping with those made in other branches of industrial legislation were put into operation. These were supplemented by further amendments in 1945, 1946, and 1951. The whole body of legislation was amended and consolidated in the Shops and Offices Act 1955.

A “shop” is defined to include an hotel, a restaurant, a hairdressing saloon, an auction market, and an automatic vending machine, but does not include a warehouse or a private hotel or boardinghouse; special provisions are contained relating to hotels and restaurants as well as to chemists, fruiterers, tobacconists, and other particular shops.

An “office” covers any building in which any person is employed, directly or indirectly, to do any clerical work in connection with any business carried on by the occupier, but does not include any building in which the clerical work of a factory or shop is carried on if situated within the factory or shop.

The definition of the term “shop assistant” was extended in 1936 to include those employed in the general management or control of a shop, subject to a wage qualification.

Hours of Work and Overtime.—A forty-hour week for shop assistants is provided for. Reduction to this limit occurred in 1945, the then limit of forty-four hours having been introduced in 1936.

Hours must be worked continuously—i.e., not exceeding eight per day, but up to eleven on one day in the week—except for meal times and breaks for refreshments. If the meal time exceeds an hour, the extra time over this is to be regarded as time worked.

Provision is made for two free days for each shop assistant in each week, thus providing for a normal working week of five days.

Limited overtime (to be paid for at time and half rates) may be worked for stocktaking and on special occasions. A break of not less than three-quarters of an hour for rest and refreshment must be allowed after four and one-quarter hours' continuous overtime work.

For shop assistants the hour of commencing work for persons under sixteen years must not be earlier than 7 a.m., except that newspapers may be delivered from 6 a.m. by persons aged twelve years and under sixteen, and milk by persons aged fourteen years and under sixteen from the same hour. Boys under eighteen or females may not be employed after 10.30 p.m. The Act provides that female assistants and boys under eighteen cannot be employed in restaurants before 5 a.m. or after 10.30 p.m. However, it is not unlawful to employ female assistants over the age of eighteen up to 11.30 p.m. or to midnight in connection with social functions (or if over twenty-one years between midnight and 5.30 a.m.), if satisfactory provision for conveying these assistants to their homes be made. There is no limit under the Act to the time at which adult male hotel and restaurant employees may be required to commence or cease work.

There are no provisions as to hours of employment in offices or as to the times when they may be open. In practice a five-day week is worked in most offices. Employment in excess of forty hours in offices is permitted, payment for overtime at the rate of time and a half being mandatory in respect of such overtime.

Opening and Closing Hours of Shops.—The closing hours of shops in any district were for many years fixed pursuant to the former Act by “requisition” of a majority of the shopkeepers, if desired, either in the whole of the local district or in any trade in the local district. The hours of closing were thus determined in very many trades and districts. These matters from 1955 are now left to be fixed by the Court of Arbitration.

The Court of Arbitration has power when making an award in any trade to fix the opening and closing hours on Sundays as well as week-days of any shops substantially (i.e. at least 20 per cent of turnover) carrying on the particular trade in that industrial district, and also to provide that such shops shall not be open for business on one working day in each week or on any award holiday. Before the Court exercises any of these powers, however, it is required to have regard to all relevant considerations. The Court is empowered (with the prior consent of the Minister of Labour except in the case of chemists' shops) to fix the times during which shops may be open on Sundays. Any organizations are entitled to be heard by the Court when dealing with these matters if in the opinion of the Judge they may be affected by the result of the proceedings. The Court is not to make an award without a hearing unless the Judge so directs.

The occupier of every shop, whether employing assistants or not, is deemed to be an employer within the meaning of the Industrial Conciliation and Arbitration Act, and therefore bound by an award relating to shop assistants for the purpose of bringing his premises within the closing provisions fixed in an award.

Sunday Trading.—Sunday trading is prohibited except (a) if provision is made in an award, the prior consent of the Minister being required to such inclusion, (b) for sale of exempted goods listed later, (c) if individual shops are granted exemption by Magistrates to permit them to open on Sunday. This is designed to enable shops in motor camps and other holiday resorts to cater for the needs of the travelling public. The Magistrate is to have regard to the interest of the occupier of any other shop which may be affected, but shall also have regard to the desirability of providing service to the public at all reasonable times.

The term “exempted goods” means (a) tobacco, cigarettes, cigarette papers, cigars, and matches; (b) confectionery and sweetmeats; (c) milk, cream, eggs, butter, and cheese; (d) motor spirits, petrol, and oil; (e) motor accessories urgently and necessarily required for the functioning of a motor vehicle; (f) fruit, vegetables, and flowers, if for sale by the grower on the premises where grown; (g) goods of a class exempted from the provisions of the Act relating to the closing of shops by Order in Council. The list of exempted goods was extended in June 1957.

Non-exempted goods must be properly locked away from the view of the public.

Holiday Provisions.—These are governed by the provisions of awards or industrial agreements. Employees are entitled to the benefits of the Annual Holidays Act 1944. The provisions of the Public Holidays Act 1955 also apply (refer page 1014).

Minimum Rates of Pay.—Wage rates are fixed by awards and industrial agreements. The provisions of the Minimum Wage Act 1945, and Orders made under it, also apply.

Safety, Health, and Welfare Provisions.—The Act also makes provision for the welfare, health, and safety of assistants. Particular matters that are covered relate to dangerous liquids and noxious gases, limitation of loads, safe means of access, construction and maintenance of floors, passages, stairs, fire precautions, lighting, cleanliness, ventilation, drinking water, drainage, washing facilities, clothing accommodation, seating and first aid facilities, rest rooms for women, sanitary conveniences, temperature and heating appliances, accommodation for meals, etc.

Other Provisions.—No premium may be received by the occupier of any shop in respect of the employment of any shop assistant, or in respect of the teaching or training of any person in any trade or business carried on in the shop, unless the shop is approved by an Inspector as a school for learners in a trade or business, and the payment is made pursuant to a written agreement that is approved by an Inspector. An Inspector cannot approve of any shop as a school for learners in any trade or business unless he is satisfied that reasonable facilities are provided for learning the trade or business, and he may at any time withdraw his approval if he ceases to be so satisfied. An Inspector must not approve of any agreement under this section unless he is satisfied that the terms of the agreement are reasonable.

There are also the usual provisions governing powers of inspection, requisition, and the prescription of offences and penalties.

Awards and industrial agreements covering shop and office workers are to be read subject to the provisions of the Shops and Offices Act—i.e., the conditions, etc., laid down in such awards and agreements must be at least equal to those prescribed in the Shops and Offices Act.

MINING LEGISLATION.—Since the passing of the original Coal Mines Act of 1886 legislation relating to coal mines has always been set out separately from that regulating all other mines. The present law relating to mining and quarrying will therefore be found for the most part in the Coal Mines Act 1925 and subsequent amendments, the Mining Act 1926 and amendments, and the Quarries Act 1944 and its amendments of 1951 and 1954. A noteworthy feature of such Acts is the appointment of Inspectors with wide powers.

Application of Mining Acts.—A “mine” under the Mining Act means generally any mine other than a coal mine, while by the Quarries Act 1944 a quarry is defined as any place in which persons work in excavating any kind of material from the earth, including an opencast coal quarry, and includes an excavation for the purposes of the construction of any work for the generation of electricity, or for the purposes of the construction of a dam for the supply of water for the use of the public, and a tunnel. A quarry does not include any place (other than an opencast coal quarry) in which mining or searching for coal, gold, scheelite, or petroleum is carried on; any road cutting or railway cutting; any tunnel in the construction of which explosives are not used and which is less than 50 ft. long or any shaft less than 15 ft. deep; or any excavation under the Scaffolding and Excavations Act 1922.

Hours of Work, Overtime, Holidays, and Rates of Pay.—In common with the practice pertaining for many other industrial groups of workers, the current working conditions for miners and quarry men generally are determined in the awards made by the Court of Arbitration from time to time, rather than by existing statutory provisions. In the construction of awards, conditions may be, and probably are, more favourable than those required by statute, but in no case can the award provisions be less favourable. These comments apply in particular to questions of hours of work, overtime, holidays, and wage rates for workers in those industries covered by the mining and quarrying Acts. Both principal mining Acts prohibit employment in or about mines on Sundays unless the previous authority of an Inspector of Mines has been obtained. By a decision of the Coal Mines Council, a seven-hour day was introduced for all underground workers in coal mines as from 5 April 1948, and this provision was extended to underground workers in other mines by the Mining Amendment Act 1948 as from 1 January 1949. This was in lieu of the former eight-hour limit.

Restriction on Employment.—The following legislative restrictions are operative on the employment of women, youths, and boys. No female of any age or any lad under the age of fourteen years may be employed in or about a mine or coal mine except in a clerical capacity or, by virtue of a 1937 amendment, as nurses or charwomen. A similar restriction is imposed by the Quarries Act 1944, except that the age limit for youths is raised to sixteen years. At the present time, also, no male under the age of sixteen years may be employed underground in any coal mine, or in any alluvial mine, or on or about any dredge; while the minimum age in respect of underground work in a quartz mine was raised by the 1948 amendment to the Mining Act from eighteen to nineteen years of age. In addition, the employment of youths in specified occupations is prohibited both in coal and other mines, while no youth under twenty-one years is permitted to be in charge of certain types of machinery used in coal mining. No youth may be employed in a mine for more than eight hours per day or forty-eight hours per week except in cases of emergency. As stated earlier, the employment of manual labour on Sundays without the previous consent of an Inspector of Mines is prohibited, while any time so worked must be paid for at higher rates.

Safety, Health, and Welfare Provisions.—In general the provisions of the Coal Mines Act 1925 are similar to those of the Mining Act 1926 in so far as safety, etc., is concerned, although, of course, to combat the special risks of coal mining additional regulation is necessary. Naturally enough, a very large part of each major mining or quarrying Act deals directly with the subject matter of this paragraph. The appropriate provisions are now considered under the respective mining Acts.

Mining Acts.—The 1926 Act required that a person acting in the capacity of mine manager of any mine where there are more than twelve men employed at any one time above ground, or more than six underground, must hold a certificate granted after examination by a Board of Examiners empowered under the Act to grant such certificates. Provision is made for proper ventilation in mines, the air temperature must not exceed 80° Fahrenheit in any working place, special care is required to be taken in handling explosives, dangerous places must be properly timbered, and special regulations are made as to hauling machinery, etc.

All machinery used to supply motive power is subject to the provisions of the Boilers, Lifts, and Cranes Act 1950 and the Machinery Act 1950 (which together replaced the Inspection of Machinery Act 1928) so far as these provisions apply. Inspectors of Mines have the powers of Inspectors of Machinery under the former Act and, by the Mining Amendment Act 1953, they are also given the powers of Inspectors of Machinery under the latter Act. Sufficient water must be supplied where it is necessary for the laying of dust in a mine. The Mining Amendment Act 1927 provides, inter alia, that a mine, where twenty men or over are employed on one shift, must have two outlets.

The Mining Amendment Act 1941 lays down that every person in charge of electrical apparatus in a mine must be the holder of a mine electrician's certificate. The appointment of an Electrical Inspector of Mines is provided for.

Comprehensive amending regulations pursuant to the Mining Act were issued in August 1945. These regulations, in addition to other matters relating to mining, prescribe the conditions and subjects relating to the examinations for mine managers', battery superintendents', and dredgemasters' certificates. The regulations also lay down the types of electrical apparatus that may be used in any mine, the conditions under which they may be used, and the safeguards that must be employed.

Coal Mining Acts.—For every coal mine there must be a duly qualified manager, who must be either the owner of the mine or some person appointed by the owner, and who is responsible for the control, management, and direction of the mine. Section 8 of the Statutes Amendment Act 1944 prescribes the present qualifications that are required to be held by managers of coal mines. These vary according to the number of men employed in the mine, and also according to whether all the workings are opencast or otherwise. Inspectors of Coal Mines appointed under the Act must hold certificates as first-class mine managers under the Act. Certain sections of the Act deal with the control of coal dust, the use of safety lamps, first-aid endorsement on certificates of competency, the prohibition of work in places where the presence of gas is suspected, and the inspection of the mine before the commencement of work, etc. Suitable housing accommodation must be supplied for workers if required by notice of the Minister of Mines. Comprehensive regulations pursuant to the 1925 Act, and known as the Coal Mines Regulations, were issued in 1939, and amended in the same year, and in 1942, 1947, and 1949. All accidents in mines rendering a workman unfit for work are now notifiable under the 1953 amendment.

A levy of 1/2 d. per ton—increased to 1d. per ton as from 1 January 1948 by the Coal Mines Amendment Act 1947—on every ton of marketable coal raised from mines was made under the terms of the Act, such moneys forming a fund for the relief of miners injured in the course of employment and of their dependants in the case of death. Information as to miners' pensions (now miners' benefits under the Social Security Act 1938), provided for originally by the Miners' Phthisis Act of 1915, is contained in Section 7A of this book. A levy of 3d. per ton on all marketable coal raised from mines was authorized by the Coal Mines Amendment Act 1950 in order to provide amenities in coal-mining districts.

The preceding levies were replaced by a levy at the rate of 6d. a ton on coal other than lignite and 4 1/2d. a ton for lignite and paid into a new fund, called the Coal Mining Districts Welfare and Research Fund. This fund is used for the purposes of relief of miners injured in the course of employment, and provides amenities in coal-mining districts, while moneys may be expended from the fund for research and otherwise generally for the benefit of the industry. The Coal Mining Districts Welfare and Research Council (which replaced the Amenities Council) or the Local Committees (in the case of coal miner's relief) direct the expenditure.

By an amending Act passed in 1927 wages for a period not exceeding six months, payable by the owner of a coal mine in respect of mining operations, constitute an equitable charge on plant and machinery, with priority over mortgages, etc. Proceedings for the enforcement of the charge must be commenced within twelve months.

An amending Act passed in 1936 provided further measures for the safety of miners. Additional precautions were provided to ensure that unlawful lights, etc., are not taken into mines, and further safeguards were made to alleviate the danger to the health of miners from the presence of dust in mines. Provision was also made for the Minister of Mines to establish central rescue stations in coal-mining areas.

The Coal Mines Amendment Act 1937 contains many provisions designed to ensure the greater safety of workers engaged in coal mines. No person under the age of twenty-three years may be employed as a mine manager or other mine official, while certificates of competency as underviewers or firemen deputies must be periodically endorsed by an Inspector of Mines to the effect that the official has passed certain specified efficiency tests. Certain appliances by which coal may be, in effect, screened or sized may not be used underground. A further provision as to housing accommodation for miners is also included in the amending Act. The Minister may require a mineowner to pay part of the cost of conveyance of workers to the mine in lieu of providing housing accommodation. In accordance with section 9 of the Statutes Amendment Act 1944, the Minister may require underground transport to be provided for workmen where he considers it necessary.

The Coal Mines Amendment Act 1941 provides that an Inspector may, if he considers it expedient, require a mine, which on the basis of the number of employees might be managed by a person with a certificate lower than that of a second-class mine manager, to be managed by a person with a higher certificate than that prescribed by the principal Act. He may also require the appointment, for any shift, of officials additional to those normally required. Stricter provision is made regarding the use of lamps. The appointment of an Electrical Inspector of Coal Mines is provided for, and the Board of Examiners has been enlarged by the addition of a registered electrical engineer or wireman nominated by the Electrical Wiremen's Registration Board, an Engineer Surveyor, and an Inspector of Machinery. Inspectors of Coal Mines also have the powers of Engineer Surveyors and Inspectors of Machinery under the appropriate Acts.

Quarries Act.—The Quarries Act 1944, as amended in 1951 and 1954, makes better provision for the regulation of quarries by consolidating (with amendments) the Stone Quarries Act 1910 and its amending Acts. The Act contains provisions as to Inspectors, and the appointment, qualifications, and duties of quarry managers. In all cases where three or more men are engaged in quarrying operations at any one time, or where explosives are being used, a qualified quarry manager must be in charge. This is modified by section 67 of the Statutes Amendment Act 1945, which provides that a permit to act in the capacity of a manager may be granted to a person who does not hold the necessary certificate in the case of any quarry in which no explosives are used and all the workings are above ground. Adequate rules are provided for the safety of workers and the prevention of accidents.

The Quarries Amendment Act 1951 placed opencast coal quarries under the authority of this Act and made consequential amendments to the Coal Mines Act 1925, certain provisions of which are now applied to opencast coal quarries. Quarry managers are to be appointed for all such quarries, while other sections of the Act cover the qualifications required of quarry managers, additional safety precautions, etc. Provision is made also for the principal Act to bind the Crown.

The 1954 amendment extends the definition of a quarry to cover hydro-electric works construction and a dam for water supply to the public. Provision is also made for the establishment of Courts of Inquiry to hold investigations into serious accidents in quarries and the conduct of holders of quarry manager's certificates, and for their powers of ordering fines and the cancellation or suspension of certificate. Additional rules for the handling of explosives during tunnelling operations are made. Qualifications additional to those for a quarry manager's certificate may be required where conditions in a quarry call for special skill or knowledge on the part of the manager.

SHIPPING AND SEAMEN LEGISLATION.—The first statute relating to this subject was passed in 1858, when the New Zealand Parliament extended the provisions of the Merchant Shipping Act passed by the British Parliament in 1854 to all British ships under the jurisdiction of New Zealand. This Act contained a series of regulations designed for the safety of passengers and crew, and for the amelioration of working conditions on board ship. Further Merchant Shipping Acts Adoption Acts were passed in 1869, 1873, and 1874, while other Acts followed. A consolidating and amending Act was passed in 1903, which was consolidated with a few minor amendments in 1908, and a further consolidating Act in 1952, the law embodied in the 1952 Act coming into force on 19 November 1953.

The Offences at Sea Act 1953 assembled the existing legislation as to the jurisdiction exercisable by Courts in New Zealand in respect of offences committed on the high seas or on ships within the territorial waters of New Zealand or other countries.

The Shipping and Seamen Act 1908 stated that the general superintendence of matters relating to merchant ships and seamen in New Zealand is with the Marine Department. Provision is also made for the registration of ships in New Zealand. The Act does not apply to ships belonging to Her Majesty, nor to ships belonging to the Government of New Zealand. The collision and salvage sections do, however, apply to Government-owned ships. Other provisions relate to masters, officers, and seamen, although some of them do not apply to pleasure yachts, missionary ships, and fishing boats.

In the following paragraphs a “home-trade ship” refers to a ship employed in trading between any ports of New Zealand, plying in any navigable waters therein, or which goes to sea and returns without proceeding farther than 150 miles from the coastline. The “minor” islands, Island Territories, and the Chatham Islands, mentioned in Section 1, for the purposes of the Act are deemed to be places outside New Zealand. A “foreign-going” ship accordingly covers any ship not included in the foregoing category.

Hours of Work, Overtime, Holiday, and Wages Provisions.—Under the Shipping and Seamen Amendment Act 1946 the normal hours of work of seamen, whether at sea or in port, are restricted to eight per day or forty per week. Seamen may be required to work hours in excess of these, but shall be recompensed for the excess (by payment at a higher rate or by the allowance of time off on pay) as may be prescribed by an award or industrial agreement under the Industrial Conciliation and Arbitration Act or by an agreement under the Labour Disputes Investigation Act. Where no such provision in an award or agreement applies, recompense will be made in such manner as may be prescribed by an order of the Court of Arbitration made on the application of a party concerned. “Hours of work” is defined as “time during which the seaman is required by the orders of a superior to do any work on account of the ship or the owner, or to be at the disposal of a superior outside the seaman's quarters.”

Time spent in certain specified work is excluded from the normal hours of work and is not subject to the special recompense for time worked in excess of normal hours. This includes work required for the safety of the ship when in immediate peril or to give assistance to other vessels or persons in immediate peril; musters, fire, lifeboat, and similar drills; normal and necessary work by officers to determine the position of the ship or to take meteorological observations; and work required for the normal relieving of watches.

Holiday provisions are negotiated in the construction of the award applicable, while the benefits of the Annual Holidays Act 1944 operate as the minimum permissible limit.

The wage rates on foreign-going ships trading between New Zealand ports are to equal the current rates of wages for such work paid in New Zealand at the same time. This does not apply to ships arriving from abroad, not trading in New Zealand further than to ship or discharge overseas passengers or cargo. The clearances of foreign-going ships which are required to pay the coastal rate of wages are to be withheld until such wages are paid.

Restrictions on Employment.—In accordance with the provisions of the International Labour Convention (Geneva) 1921, the employment of persons under fifteen years of age in any capacity on board ship is prohibited, as is also the employment of any persons under eighteen years of age unless they have first been medically examined and passed as fit to engage in the capacity concerned. A further subsection of the Act prohibits the employment of persons under eighteen years of age as trimmers or firemen on steamships. These limitations on employment do not apply to cases of training ships where the work is of a kind approved by the Minister and is carried out under proper supervision.

Competence, Safety, Health, and Welfare Provisions.—The Shipping and Seamen Act 1952, consolidating and amending previous legislation on this matter, made provision with respect to the international conventions to which New Zealand is a party and is also complete in itself, requiring no reference (as was necessary hitherto) to United Kingdom legislation. The conventions which have been incorporated in the Act, and which deal principally with safety measures, were the International Convention for the Safety of Life at Sea of 31 May 1929, the International Convention for the Safety of Life at Sea (London) of 10 June 1948, and the International Convention on Load Lines of 5 July 1930. Adequate provision is made to ensure competence on the part of the controlling officers of ships. Home-trade steamships of 60 tons register and upwards, and home-trade sailing ships of 100 tons register, must carry certificated mates, and such ships of 100 tons register and upwards trading more than three hundred miles between terminal ports must have second mates. A foreign-going ship is required to carry two certificated mates. Foreign-going certificated mates are entitled to ship as mates in the home trade. It is an offence for a master or owner to engage a certificated officer for the purpose only of enabling the ship to clear and not for the purpose of making the voyage.

Provision is made for issuing certificates of competency to second mates of home-trade ships, and for recognizing as valid in New Zealand certificates of masters, mates, and engineers granted in any part of the British Commonwealth.

Any master or mate may, at any time, be required by the shipowner or the Minister of Marine to be examined in sight tests by the Government Examiners.

Further sections dealing with the safety of the ship require the adjustment of compasses to be carried out under regulations, while power is given to the Minister to define restricted trading limits for steamers and for vessels propelled by oil, gas, etc. The Governor-General in Council is empowered to make regulations as to the loading and stowage of ballast and the loading of grain cargo in bulk. It is an offence to ship wool, flax, tow, or skins in such a condition as to be liable to spontaneous combustion.

The following Rules and Regulations are all concerned with the subject matter under consideration: Shipping Rules—Dangerous Goods 1953, Grain 1953, Navigational Warnings 1954, Signals of Distress 1954, Radio 1954, Direction Finders 1954, Musters 1954, Pilot Ladders 1954, Fire Appliances 1954, Life Saving 1954, Construction 1954, and Closing of Openings in Hulls and in Watertight Bulkheads 1954; Regulations—Collisions Regulations Order 1953, Certificates of Competency 1954, and Crew Accommodation 1954.

Since 1909 there has been a gradual extension of the type of ship required by law to be equipped with radio installations. The regulations now define the nature of the installations and service, and the number and grade of operators in different classes of vessels, and provide for inspection thereof.

The provisions regarding working conditions on vessels require, inter alia, proper sanitary, hospital, and lavatory accommodation, including bathrooms, to be provided for the crew, together with an adequate supply of hot water for those employed in connection with the engines, while a prescribed minimum of space for the seamen's quarters is also laid down.

Intercolonial ships—i.e., those trading between New Zealand and Australia, or New Zealand and the central Pacific islands—in addition to home-trade ships are made liable to pay the wages, maintenance, and medical expenses of seamen taken ill in the service of the ship for the remainder of the agreement, not exceeding three months; and, in the case of intercolonial ships, if the agreement expires within one month from the commencement of the illness, payment is to be made for one month after the expiry. The illness which entitles a man to the benefits provided for is one which requires medical treatment for fourteen days.

An amendment to the Shipping and Seamen Act made in 1948 prescribed fines not exceeding £100 in any case of a breach of any safety rules made expressly for those small craft not subject to the provisions of the principal Act relating to survey, etc.

Other Provisions.—Desertion is defined, and deserters who cannot be dealt with before their ship sails can afterwards be prosecuted by the owner or agent, and copies of the agreement and the entries in the log book are to be accepted by Courts as evidence. Forfeited wages are to be paid into the Public Account.

The 1950 amendment provided for the deportation from New Zealand of every seaman or apprentice who is convicted of the offence of desertion or absence without leave from his ship. This does not apply to seamen or apprentices engaged in New Zealand nor to seamen or apprentices from foreign ships. Provisions for the deportation of foreign deserters were already contained in the principal Act and in the Immigration Restriction Act 1908.

It is unlawful for any person other than the owner, master, mate, or engineer of a ship, or a Superintendent of Mercantile Marine, to engage or supply seamen for ships, and only seamen who have a knowledge of the English language are allowed to ship.

The law as to inquiries into shipping casualties is on the lines of the Imperial Merchant Shipping Act, and provision is made for rehearings, for Magistrates to order a change of venue, and, by the 1948 amendment, for Superintendents of Mercantile Marine to hold a preliminary inquiry where a shipping casualty has occurred. Inquiries are not to be held in Police Courts unless other suitable buildings are not available; and in cases where there has been loss of life but no damage to the ship the inquiries may be held by Coroners.

The risks run and sacrifices made by the crews of vessels under war conditions were recognized by the Government in the passing of the War Pensions and Allowances (Mercantile Marine) Act 1940 (later incorporated in the War Pensions Act 1954). This Act, which made provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants in respect of death, disablement, or detention as a result of the Second World War is referred to in some detail in Section 7B of this Year-Book. Seamen also received special bonuses to compensate for the hazardous nature of their occupation during the war period and were later paid a special sea-going allowance.

For the purposes of the Land Act 1948 and the Rehabilitation Act 1941 any person who served during the Second World War in any British ship which, while he was serving therein, was damaged or destroyed as the result of enemy action, or who served in any other British ship other than a home-trade ship, is included in the term “serviceman,” thus rendering such person eligible for rehabilitation benefits.

AGRICULTURAL WORKERS ACT.—The primary purpose of the Agricultural Workers Act 1936 was to make better provision for the accommodation of agricultural workers, and to make special provisions for the remuneration of workers on dairy farms and for the conditions of their employment. The Act also includes provision for the extension of these special provisions to other classes of agricultural workers, and, as indicated later, Orders in Council have been issued under this provision. Section 4 of the Statutes Amendment Act 1945 provides that where proposals for the extension to any specified class of agricultural workers have been submitted as required by the principal Act, and the parties are unable to agree, the matters in dispute may be referred to the Court of Arbitration for a recommendation to the Minister. The administration of the Act is carried out by the Department of Labour.

Another important measure dealing with farm workers is the Sharemilking Agreements Act 1937, which defined the respective responsibilities of employers and sharemilkers in farm management and control of stock, and prescribed the minimum percentages of returns to sharemilkers. The Act contains provision for terms and conditions to be altered by Order in Council, and the latest agreement is contained in the Sharemilking Agreements Order 1946, which came into operation on 4 September 1946.

Orders in Council extending the operation of the provisions of the Act to other classes of farm workers have been issued from time to time—orchard workers as from 1 February 1937; workers on farms or stations used for the commercial production of wool, meat, or grain (including seed), whether exclusively or together with any other purpose, as from 1 May 1937; agricultural workers in market gardens, nurseries, etc., in the Wellington, Nelson, Canterbury, Otago and Southland, and Northern Industrial Districts, as from various dates between 22 April 1938 and 29 May 1939; and agricultural workers employed in the tobacco industry, as from 1 October 1941. The orders do not apply to workers covered by awards or agreements under the Industrial Conciliation and Arbitration Act.

Hours of Work and Overtime.—In the case of orchard workers the maximum hours that may be worked without payment at overtime rates are eighty per fortnight from 16 May to 15 October and eighty-eight per fortnight from 16 October to 15 May. These are to be worked from Monday to noon Saturday except in necessitous cases and in the picking of stone fruit. In the shorter period the maximum hours to be worked at ordinary rates are not to exceed eight daily, or forty-four in any one week, and in the longer period ten hours per day or forty-eight in any one week. Overtime rates are payable in respect of hours worked outside the limits mentioned.

The ordinary hours of work for those employed in market gardens, are not to exceed forty-four in any one week, and are to be worked within the five and a half days, Monday to noon Saturday inclusive. In addition, no worker is to be employed for more than five hours continuously without an interval of three-quarters of an hour for a meal. Time worked beyond the limits quoted are to be paid for at overtime rates.

Agricultural workers employed in the field section in the tobacco industry in the Nelson Industrial District during the months of May to December inclusive work at ordinary rates for eight hours daily from Monday to Friday, with a maximum of forty hours a week. Those employed in the field section during the months of January, February, March, and April may be worked an additional eight hours per week—i.e., a maximum of forty-eight hours per week. Otherwise, employment is given remuneration at overtime rates. Workers employed in the shed section of the industry work a forty-hour week from Monday to Friday and between 7.30 a.m. and 5 p.m., except females, who may not be called upon to start work before 8 a.m. Provision is made for shift work to cope with essential or continuous process work. Overtime rates are payable for hours in excess of eight per day or outside the clock hours named or in excess of eight per shift. A three-quarters of an hour interval is allowed for a meal in the case of shed workers and an hour for those in the field section.

Holiday Provisions.—Every agricultural worker who is employed on a dairy farm for not less than four weeks continuously is to be allowed a holiday on full pay plus an amount equal to the full allowance for board and lodging. The duration of the holiday is to be not less than seven days in the aggregate for every twelve weeks of employment, and a proportionate period for every broken period of employment. If a regular weekly half-holiday commencing at noon is allowed, a holiday of fourteen days a year (or proportionate duration for a lesser period of employment) will be regarded as sufficient compliance with the act. The following specific conditions pertain, in respect of workers on farms and stations used for the commercial production of wool, meat, or grain (including seed). Such farm workers are entitled to seven statutory holidays, Anzac Day, and Anniversary Day, or days in lieu thereof; twelve working days' annual leave on full pay, with a proportionate allowance for service of less than one year; and nineteen days to be taken in half days or at such times as shall be mutually agreed between the employer and the worker; while the sum total of all three classes is not to be less than forty days in each year. Orchard workers, workers in the tobacco industry, and workers employed in market gardens are covered by the Annual Holidays Act 1944 and, in addition, are allowed certain prescribed statutory holidays.

Minimum Rates of Pay.—By the principal Act minimum weekly rates of pay were prescribed for workers on dairy farms. The Act fixed the rates to operate from 1 October 1936 (the date the Act came into force) until 31 July 1937, and subsequent rates of pay were to be fixed by Orders in Council. In fixing such rates the guaranteed prices paid in respect of primary produce were to be taken into account, but later rates were not to be lower than those fixed by the Act. The minimum rate is £9 10s. per week, increased by £1 16s. per week if the worker is not provided with board and lodging by the employer. This rate is taken to include allowance for work done at weekends and on holidays as part of the normal week's work. Minimum rates of pay for casual workers are contained in all the extension orders made so far. At present (April 1957) the minimum rate for workers in casual employment and for permanent adult male workers on tobacco farms amounts to 5s. per hour, with lesser rates for male and female workers according to specified ages, and for harvesters on farms 5s. 1d. per hour with rations. In the case of workers on farms and stations for whom the hours of work are not definitely laid down, the rates applicable are given in the Agricultural Workers (Farms and Stations) Extension Order 1952, Amendment No. 3, the minimum rate for an adult male worker being £8 1s. 6d. per week, increased by £1 19s. per week if the worker is not provided with board and lodging by the employer or by £1 10s. per week if provided with only lodging or free house. The minimum rate of wages for adult males permanently employed in orchards is prescribed in the Agricultural Workers (Orchardists) Extension Order 1955, Amendment No. 2, at £10 18s. weekly. The corresponding rate for workers in market gardens provided for in Amendment No. 3 to the 1953 extension order is £10 15s. 8d.

Restrictions on Employment.—No child under the age of fifteen years may be employed for hire on a dairy farm or in market gardens except for the harvesting of peas, beans, tomatoes, and soft fruits.

Health and Welfare Provisions.—The sections of the Act in relation to the accommodation of agricultural workers lay down definite requirements for the comfort of such workers, and Inspectors of Factories have power to inspect the accommodation and to require that improvements be made where necessary. In the various extension orders made under the authority of the principal Act, regulations are made dealing explicitly with questions of accommodation, sanitation, ventilation, etc. A number of orders also prohibit the lifting of excess weights by females.

Other Provisions.—Provision exists for the employment of “under-rate” workers with the consent of the Inspector of Factories. An amendment to the main Act made by a section in the Statutes Amendment Act 1936 permits the Inspector to apply the under-rate provisions in respect both of money wages and of the amount (if any) payable in lieu of board and lodging in cases of female workers employed on farms. This amendment is of considerable importance, since the employment of women workers for short periods of the day—notably at milking time—is common on dairy farms. Regulations governing the employment of “under-rate” workers are included in all the current extension orders.

INDUSTRIAL CONCILIATION AND ARBITRATION LEGISLATION.—The working conditions outlined in the preceding pages are those contained in some specific statute or regulations made thereunder. However, for a large proportion (approximately one-third) of the labour force, the determining factor is the series of awards and agreements issued by the Court of Arbitration under the authority of the Industrial Conciliation and Arbitration Act 1954 (consolidating the 1925 Act and its amendments). The number of awards and agreements in force is quite large—618 at 31 March 1956—and as each is subject to individual negotiation by the unions or associations concerned during its construction it is evident that possible variations preclude any systematic treatment herein of the provisions of such a large number.

The 1936 amendment stated that where it is deemed practicable the Court must fix the maximum hours of work per week (exclusive of overtime) at forty, while existing awards could be reviewed to this end on application. At present the provision of a forty-hour week is quite general. Included in the respective awards and agreements are provisions covering the hours of work, overtime, holidays, safety, health, and welfare. Rates of remuneration, subject particularly in the lower limits to the more widely applicable decisions covering the basic wage, general orders, standard wage pronouncements, and minimum wages, are also decided and incorporated in the relevant award or agreement.

It will be realized from the above comments that for information on the actual working conditions governing employment in any particular industrial activity, reference must be made to the award or agreement applicable.

LEGISLATION GOVERNING WORKING CONDITIONS IN THE VARIOUS BRANCHES OF THE GOVERNMENT SERVICE.—The principal measures which are concerned with the majority of persons employed either directly or indirectly by the State and which have reference to their working conditions are given in the succeeding paragraphs.

The Public Service Act 1912, as amended by the Public Service Amendment Act 1946, provided for the control of the Public Service by a Commission as from 1 November 1946. Included in the functions of the Commission are the control of recruitment, maintenance of discipline and of a fair and efficient system of promotion, and also the regulation of a variety of points connected with personnel control—e.g., leave, hours of work, payment of allowances, etc.

The Government Service Tribunal Act 1948 provided for the establishment of a tribunal with functions, in relation to the remuneration and conditions of service of employees, of making (a) principal and other orders, and (b) recommendations to the Prime Minister on any matters other than those contained in the principal orders.

The Government Railways Act 1949, a consolidation measure, furnishes the legislative framework for determination of the working conditions of railway employees. The 1944 amendment established the Government Railways Industrial Tribunal, the principal functions of which are to prescribe scales of salaries and rates of wages; conditions in regard to hours of work, overtime, etc.; and terms and conditions in respect of leave of absence, railway travel concessions, etc. The Government Railways (Staff) Regulations 1953 are also of relevance in this connection.

Working conditions for Post and Telegraph Department employees are determined by the administrative authority, the Postmaster-General and Minister of Telegraphs, with the Director-General as executive head. Power is vested in the Minister by virtue of the Post and Telegraph Act 1928, while the 1944 amendment established a Post and Telegraph Staff Tribunal whose function it is to make recommendations to the Minister on such matters as may be referred to it by the Minister, the Director-General, or the New Zealand Post and Telegraph Association (Incorporated).

Other legislative enactments which apply to the relevant sections of General Government employees are as follows: members of the Police Force are governed by the Police Force Act 1947, which consolidated and amended the 1913 Act of the same title and its amendments. The three fighting Services are controlled at present by the Army Act 1950, the Navy Act 1954, and the Royal New Zealand Air Force Act 1950.

The Education Act 1914 and later amendments provide the legislative background authorizing, either by regulation or through the agency of Education Boards, the determination of the conditions of employment, pay, leave of absence, etc., for the members of the teaching profession.

LEGISLATIVE PROVISION FOR CERTAIN OTHER GROUPS.—The provisions relating to working conditions of Hospital Board employees such as nurses, etc., will be found in the Hospitals Act 1926 and its amendments, while the Hospital Employment Regulations 1957 bear directly on these matters.

Before concluding this subsection reference must be made to two further groups of workers. The first of these consists of public-works employees, while the other comprises those concerned with waterfront work.

In a statement of public-works policy laid before Parliament in 1936 the Government's policy in relation to public-works employees was outlined. An agreement was drawn up dating from 1 June 1936, the main provisions of which were embodied in subsequent agreements, although subjected to amendment and revision from time to time to meet changing conditions. With the termination of the last agreement in March 1949 the Government Service Tribunal, established under the Government Service Tribunal Act 1948, became the authority for determination of rates of remuneration and working conditions generally for public-works employees.

The Waterfront Industry Emergency Regulations 1946, as later amended, established two bodies to provide for the more efficient control of waterside work. The superior of these two—viz., the Waterfront Industry Authority—was charged with deciding the conditions under which any persons could be employed for waterside work, the terms of any such employment, including remuneration, holidays, guaranteed minimum payment, etc., whereas the subordinate authority, known as the Waterfront Industry Commission, was more concerned with the day-to-day details of administration. In particular, the Commission could not issue or amend any order prescribing any conditions or terms of employment which were of general application, except in accordance with a decision or direction from the Authority or as a result of a unanimous resolution of the Commission. Appeals from decisions or orders of the Commission were determined by the Authority.

The above position was relevant up to the commencement of the waterfront strike in February 1951. Commission control was suspended on 20 February, and on the following day the Government issued a Proclamation under the Public Safety Conservation Act 1932 declaring a state of emergency. Shortly afterwards, the Waterfront Strike Emergency Regulations were gazetted, giving powers to ensure the observance of law and order, to prevent picketing, threats, and intimidation, to employ Service labour on the waterfront, and to maintain essential supplies and services to the community. After the termination of the strike and pending the report of the Royal Commission on the waterfront industry, the Government announced that the Commission form of control was to be continued through Port Conciliation Committees, the Waterfront Industry Commission, with administrative functions only, and the Waterfront Industry Tribunal, which was to be a non-representative body to decide disputes and to determine appeals against decisions of Port Conciliation Committees. Amending regulations (the Waterfront Industry Emergency Regulations 1946, Amendment No. 10), prescribing the powers and functions of these bodies, were gazetted in 1951.

The 1946 regulations were revoked by the Waterfront Industry Act 1953, which however closely followed the provisions of the regulations. The Waterfront Industry Commission, the Waterfront Industry Tribunal, and the Port Conciliation Committees were continued in force, while the Act also provided for Combined Committees and for National Conciliation Committees. Provision was also made for a National Amenities Committee and for Port Amenities Committees, with functions relating to amenities for waterside workers.

38 C—WAGES AND WAGE-RATE LEGISLATION; STABILIZATION

WAGES AND WAGE RATES: GENERAL.—The amounts of wage rates generally have been influenced largely by the rates specified for individual industries and occupations in awards and industrial agreements registered under the Industrial Conciliation and Arbitration Act. As mentioned previously, certain classes of workers for many years had no legal protection in the matter of wage rates; while, again, until the passing of the Shops and Offices Amendment Act 1936, many classes of office workers were in a similar position.

More than one criterion has been employed in the derivation of minimum rates of pay. Changes in the cost of living have been taken into account at certain times; on some occasions family considerations have entered into the determination; while the size of the working population covered by the minimum-rate provisions differs appreciably according to the particular variant of minimum rate or wage considered.

For the convenience of the reader the essential differences between the various expressions of the minimum wage rates are here summarized. The basic wage (a defined amount) was intended to enable a man to maintain a wife and three children in a reasonable standard of comfort. As prescribed by the Industrial Conciliation and Arbitration Court in a general order in 1936, the basic wage became a minimum wage for all workers governed by awards. The provisions enabling a review of the basic wage were not repeated in the Industrial Conciliation and Arbitration Act 1954. Standard rates or standard wage pronouncements prescribe basic rates (not amounts) for different grades of labour—e.g., skilled, semi-skilled, or unskilled workers—for use as general principles governing the construction of award rates. There is no automatic application to awards, each being amended individually on application, or on the Court's own motion, or on a fresh award being made. General orders, on the other hand, have the effect of amending all award rates simultaneously as from the date specified in the order. The Minimum Wage Act 1945 prescribes minimum amounts of wages for adult males and females, either directly in the Act or since 1952 by Order in Council thereunder, but these differ from the basic wage, which in effect they have superseded, in that no reference is made to the maintenance of any defined standard in the former. An important feature of the 1945 minimum wage legislation is the much wider section of the working population to which its provisions relate. The minimum wages specified therein apply whether an award exists or not, and also notwithstanding anything contained in any award.

Against the background of these general remarks it is now intended to survey each of the various forms of minimum wage rates.

Basic Wage.—The New Zealand Court of Arbitration functioned for many years before the question of a basic wage was specifically dealt with by the Court. (It is of interest at this point to mention that a basic wage was brought into operation by the Federal Arbitration Court in Australia in 1907.)

The Industrial Conciliation and Arbitration Amendment Act 1936, inter alia, required the Court of Arbitration to fix basic wages for adult male and female workers. In the consolidation Act, the Industrial Conciliation and Arbitration Act 1954, the provisions authorizing the fixing of a basic wage by general order in the 1936 amendment were regarded as spent and accordingly have not been included in the 1954 Act. The basic wage for adult male workers was required to be fixed at a weekly sum which would, in the opinion of the Court, be sufficient to maintain a man, wife, and three children in a fair and reasonable standard of comfort. A general order fixing basic wages for adult male and female workers was issued by the Court of Arbitration on 2 November 1936. The weekly amounts were fixed at £3 16s. for adult male workers and at £1 16s. for adult female workers. The basic wage applied (as an absolute minimum) to all workers twenty-one years of age and over (excepting casual workers and those working under apprenticeship contracts) the conditions of whose employment were fixed by any award or industrial agreement.

Minimum Wage.—The Minimum Wage Act 1945, as stated earlier, makes provision for a minimum wage for all workers of twenty-one years of age and upwards with certain minor exceptions, notwithstanding anything to the contrary contained in any enactment, award, industrial agreement, or contract of service. A contrast may here be drawn between the procedure adopted in the case of the minimum wage with that pertaining in regard to the basic wage or standard rates of wages. The former is directly stated in legislation, while the latter appear through the medium of the Court of Arbitration.

The minimum wage prescribed in the Act or by Order in Council under the Act may be amended from time to time as fresh pronouncements of standard rates or general orders are made if it is desired to preserve a balance between minimum wages and such rates of wages. In this reference it will be noted that the minimum wage for males is set at a rate which is lower than the standard rate for unskilled labour.

The Act came into force on 1 April 1946. Since that date a Minimum Wage Amendment Act was passed in each year except 1948, the 1952 amendment authorizing minimum wages to be prescribed by Order in Council. The minima prescribed by the Minimum Wage Order 1956, and operating from 5 December 1956, are given below, while those in force during the earlier periods are also shown.

Category1 Dec. 1947 to 31 Aug. 19491 Sept. 1949 to 31 Aug. 19501 Sept. 1950 to 31 July 19511 Aug. 1951 to 30 Sept. 19521 Oct. 1952 to 14 Dec. 195315 Dec. 1953 to 14 Dec. 195415 Dec. 1954 to 4 Dec. 19565 Dec. 1956 Onwards
£s.d.£s.d.£s.d.£s.d.£s.d.£s.d.£s.d.£s.d.
Males—
  Paid by hour or by piecework030033035039041046047 1/20410
  Paid by day14016017411001128116011701186
  Other (per week)5150650611875071848150900976
Females—
  Paid by hour or by piecework0111022023 1/2026029030031033
  Paid by day015401740184100120140148160
  Other (per week)313043048041645645164600660

Standard Rates of Wages.—Under the War Legislation and Statute Law Amendment Act 1918 the Court was required to review on application existing awards and industrial agreements, taking into consideration, inter alia, changes in the cost of living. The Court in April 1919 made a pronouncement fixing, in effect, standard rates of wages for skilled, semi-skilled, and unskilled workers. No definite family unit was stated as the basis on which these standard rates were calculated, the minimum pre-war award rates for unskilled labour, with appropriate adjustment, being apparently used as a base. A cost-of-living bonus, varied at half-yearly intervals in sympathy with movements in the cost of living, was added to these standard rates. New rates were fixed in 1920. In September 1925 a further pronouncement was made by the Court. The legislation by which the Court was empowered to make general orders having expired, the new rates—which represented an increase on those operating before—were brought into operation as individual awards expired. As in the 1919 pronouncement, no definite family unit was taken as the basis of assessment of the standard rates, which were, in general, stated to be somewhat in excess of 60 per cent above the rates ruling in 1914.

No further pronouncements directly relevant to the subject were made until 1931. The Finance Act of that year empowered the Court of Arbitration to amend, by general order, awards or industrial agreements with respect to rates of remuneration. Rates of remuneration under awards or industrial agreements were reduced by 10 per cent as from 1 June 1931 with certain minor exceptions.

Full or partial restoration of this cut was effected in the case of several individual awards made in 1934 and 1935, while complete restoration was effected in respect of all awards by a section in the Finance Act 1936. This Act went further: it required the restoration as from 1 July 1936 of all cuts in wages and salaries imposed during the depression period, whether the workers concerned were working under a Court of Arbitration award or not. A 1936 amendment to the Industrial Conciliation and Arbitration Act reduced weekly hours from 44 to 40, and maintained the same weekly rates of wages, thus increasing the effective standard rates of wages then applicable.

In September 1937 the Court made a pronouncement on standard wages and again, in March 1945, the Court made a further pronouncement specifying standard rates of wages in accordance with the provisions of the February 1945 amendment to the Economic Stabilization Emergency Regulations 1942.

The 1945 rates were net rates, for the full minimum wage rates would have had to take into account in addition the provisions of the two general orders, effective from 12 August 1940 and 7 April 1942 respectively, issued by the Court under the Rates of Wages Emergency Regulations 1940. (The first of these orders awarded a 5-per-cent increase in all rates of remuneration in awards, industrial agreements, etc., while the second authorized a further 5-per-cent increase subject to certain limitations.)

An application made pursuant to Regulations 39B and 39C of the Economic Stabilization Emergency Regulations 1942 for a pronouncement specifying standard rates of wages, resulted in new standard rates being set out to apply from 1 October 1947. In this case full minimum rates of wages were prescribed, thus eliminating references to the application of the general orders.

In February 1949 two applications for a new standard-wage pronouncement were laid before the Court of Arbitration. The occasion was unique, in that one of the applications was supported by the New Zealand Federation of Labour and the other supported by the New Zealand Employers' Federation. Both were made under Regulation 39B of the Economic Stabilization Emergency Regulations 1942. Before any steps had been taken for the hearing of the applications, a further amendment in February 1949 was made to the Economic Stabilization Emergency Regulations 1942. This amendment redefined the considerations which the Court was to take into account in making a pronouncement on standard rates, and also provided that the new amendment was to apply to every application under the principal regulations that was pending at the time of issue of the amendment. There were other provisions, the effects of which have also been incorporated in the following article on stabilization (refer page 1033).

The Court, subsequent to the hearing, made a pronouncement on standard rates of wages on 12 April 1949. It also provided that any consequential amendments to awards, etc., were to date from 1 June 1949.

In this pronouncement the margin between the standard rate for unskilled workers and that for skilled workers was increased from 5 1/2d. per hour to 6d. per hour. The reasons given for this increase may be of interest.

Over a number of years the effective margin of the artisan in terms of purchasing power has been steadily declining, while efforts have been made simultaneously to increase the skilled labour force. Measures were being taken to revitalize the apprenticeship system and improve the training of tradesmen, including the inauguration of more comprehensive and exacting trade examinations. In these circumstances it was thought that an improvement in the flat margin for skill should be granted.

A standard wage pronouncement was made by the Court on 12 July 1952 subsequent to the hearing on an application for a general wage order. Amendments to awards, etc., giving effect to the pronouncement operated from 1 September 1952. The rates set out in the pronouncement were gross rates (i.e., the effect of the general order increasing rates by 15 per cent from 15 February 1951 had been taken into account). In the amendment of awards and industrial agreements as a result of the 1952 pronouncement, the rates for adult female workers were increased in general by such an amount as brought them to a level approximately 10s. per week above the rates which operated from 1 June 1949 plus 15 per cent. Rates for junior workers of both sexes were adjusted proportionately.

As a result of the general wage order issued in October 1954 the present effective standard hourly rates are—skilled workers 5s. 7.8d., semi-skilled workers 4s. 11.9d. to 5s. 3.3d. and unskilled workers 4s. 10.2d.

A summary of the standard rate pronouncements listed in the preceding paragraphs is given below.

Per Hour

Class of Worker (Adult Male)Standard Rates of Wages: Pronouncement of—
19191920192519371945194719491952
s.d.s.d.s.d.s.d.s.d.s.d.s.d.s.d.
Skilled workers17 1/220232930 1/23731150
Semi-skilled workers14 1/2 to18 to111 to25 to28 1/2 to33 1/2 to36 to45 to
 1611021 1/227 1/221135 1/438 3/448
Unskilled workers13 1/2171102427 1/231 1/23543 1/2

A standard rate pronouncement is not itself a general wage order and has therefore no operative effect. It is merely an indication of the rates of wages up to which the rates prescribed for skilled, semi-skilled, and unskilled workers in a certain number of awards and industrial agreements are likely to be brought by means of individual amendments. They do not, of course, affect those variations in wage rates prescribed in the different awards, etc., which are due to variations in skill required and in working conditions generally in different industries or occupations.

Standard rates of wages can be regarded as serving two purposes. The first is to serve as general principles to which the Court will have reference in the implementation or amendment of existing award rates. The second is that they serve, in effect, as general standard minima for casual labour. They are not necessarily applicable when employment is regular throughout the year.

It should be noted that the Economic Stabilization Regulations 1953 omitted the provision contained in the 1952 regulations empowering the Court of Arbitration to make standard wage pronouncements under those regulations, although the power to amend awards and industrial agreements to give effect to the July 1952 pronouncement was continued.

Award Rates.—Under the Industrial Conciliation and Arbitration Act the Court is empowered to fix minimum rates of pay in individual awards. The nature of award rates is generally understood, and as the rates may and do vary as between awards there is no necessity to further elaborate here. A table showing the average minimum weekly wage rates, incorporated in awards for certain occupations, will be found in Section 37 of this issue (pages 996–999).

General Orders.—Cost of living bonuses, by way of what were effectively general orders, were added to standard rates of wages shown earlier as follows: 1919 (19 April) 2 1/2d. per hour; 1920 (1 January) 3 1/2d. per hour; 1920 (1 May) 5d. per hour; 1920 (1 May after issue of new standard rates) 3d. per hour; 1920 (1 November) 3 3/4d. per hour; 1922 (15 May) 21/2d. per hour; 1922 (4 December) 1 3/4d. per hour; 1923 2d. per hour.

A general order reducing rates of remuneration by 10 per cent (i.e., also reducing the effective 1925 standard rates) was made operative from 8 June 1931. This was later restored by section 15 of the Finance Act 1936. Also in 1936, the basic wage mentioned previously was issued by way of a general order. The Court of Arbitration had power under the Rates of Wages Emergency Regulations 1940 to make general orders amending all rates prescribed in awards as from the dates specified in the orders. Two such orders were made increasing wages as from 12 August 1940 and from 7 April 1942 respectively. As stated earlier, the effect of these orders was taken into account in the 1947 standard wages pronouncement. An amendment made in March 1949 to the Economic Stabilization Emergency Regulations 1942 revoked the Rates of Wages Emergency Regulations 1940. General orders could, however, still be made under the Economic Stabilization Emergency Regulations 1942 until the revoking of the emergency regulations by the Economic Stabilization Regulations 1950. In the latter regulations the former provisions relating to the issue of general orders were retained, while a May 1950 amendment provided for, in effect, the issue of an interim general order. Such an order was to be disregarded for the purpose of determining the date at which any general order made on application should take effect.

An interim order was made by the Court of Arbitration on 10 June 1950 amending all awards and industrial agreements so as to increase by 5 per cent all rates of remuneration on amounts up to and including £7 per week in the case of adult male workers, and £4 15s. in the case of adult female workers and all junior workers.

A general order effective from 15 February 1951, revoked the interim order and increased all rates of remuneration by an amount equal to 15 per cent (not restricted to any fixed amount). This latter increase was in substitution for, and not in addition to, the 5-per-cent increase given in the interim order. Certain specified awards were excluded from the operation of the February order, comparable increases having been incorporated in their construction subsequent to the interim order.

A further general order of the Court was made on 19 November 1953, but retroactive to 15 September 1953, increasing all award rates by 10 per cent on amounts up to and including £12 per week for adult male workers, £9 per week for adult female workers, and £7 per week for junior workers.

A general order, effective from 18 November 1954, and revoking the general order of November 1953 as from that date, was made by the Court of Arbitration on 28 October 1954. This increased all rates of remuneration by 13 per cent on amounts up to and including £12 per week for adult male workers, £9 per week for adult female workers, and £7 per week for junior workers. This increase of 13 per cent from 18 November 1954 was in substitution for, and not in addition to, the 10 per cent given in the 1953 order. In effect, the November 1954 actual increases over those gross minimum rates payable immediately prior to that month were 7s. 2 1/2d. maxima for adult males, and 5s. 5d. and 4s. 2 1/2d. weekly maxima for adult females and junior workers respectively. Certain specified awards and industrial agreements were excluded for various reasons from the operation of this order, and others were amended by increasing the rates of wages by a lesser amount.

A further general order, effective from 19 November 1956, and revoking the general order of 1954 as from that date, was made by the Court on 26 October 1956. This order increased the rates of remuneration prescribed by all awards and industrial agreements to which it applied by 18 per cent on amounts up to and including £13 per week for adult males and £9 15s. and £7 10s. per week for adult females and junior workers respectively, except certain adult female workers employed under awards and industrial agreements by which they are required to be paid adult male rates.

As in the case of previous orders this increase of 18 per cent was in substitution for, and not in addition to the 13 per cent given in the 1954 order.

Here again certain specified awards and industrial agreements were, for various reasons, excluded from the operation of the order, it being open to any party to any such award or agreement to apply to the Court under Regulation 4 of the Economic Stabilization Regulations for a subsequent order amending the rates of remuneration prescribed thereby.

In effect the order of 26 October 1956 increased the minimum rates payable prior to 19 November 1956 by 4.425 per cent; 15s. 7.2d. per week for adult males, 11s. 8.4d. and 8s. 9.6d. for adult females and juniors respectively.

Special Provisions Covering Wages of Certain Groups of Workers.—Certain groups of workers have their wages fixed by special authorities. Minimum rates for agricultural workers are prescribed by the Agricultural Workers Act 1936 and the various Extension Orders made pursuant to section 20 of that Act. Rates of remuneration for waterside work are fixed by the Waterfront Industry Tribunal, constituted now under the Waterfront Industry Act 1953. Determination of wages in coal mines lies within the scope of the Coal Mines Council, established under the Coal Mines Council Emergency Regulations 1940. Rates of pay for workmen engaged on public-works construction have been determined from 1949 by the Government Service Tribunal and issued in the form of principal and other orders by that Tribunal.

Salaries and wages in the railways are, by the Government Railways Act 1949, prescribed by the Government Railways Industrial Tribunal. The legislative authority covering rate of remuneration for employees of the Post and Telegraph Department is contained in the Post and Telegraph Act 1928 and the 1933 amendment, while certain questions may be referred to the Post and Telegraph Staff Tribunal, established by the 1944 amendment to the principal Act.

Public servants in the Professional and Clerical Divisions were paid according to rates prescribed under regulations authorized by section 19 of the Appropriation Act 1920, and those in the General Division according to scales determined by the Public Service Commission (see Public Service Act 1912, section 22). In 1948, however, the Government Service Tribunal Act was passed vesting the Tribunal with powers of making principal and other orders in relation to remuneration.

Pay and allowances for the Armed Services at present are prescribed in regulations under the Army Act 1950, the Navy Act 1954, and the Royal New Zealand Air Force Act 1950. Salary and wage rates for Hospital Board employees are covered by the Hospitals Act 1926 and the Hospital Employment Regulations 1957. Two other groups of employees may be also mentioned; members of the Police Force coming under the Police Force Act 1947, and finally members of the teaching profession, whose rates of remuneration are generally determined by authority of the Education Act 1914 and amendments.

An interesting innovation made by the Court of Arbitration in 1928 was the award of that year whereby the wages of shearers and other wool-shed hands were fixed at a rate fluctuating with the movement of wool prices as determined by the Government Statistician's index number for export prices of wool. The system did not operate between 1931 and 1933, workers and employers being unable to agree as to rates, though both parties expressed approval of the principle. The award of 1933 contained provision for the resumption of the sliding-scale system. Commencing with the award for the 1948–49 season, a variation was made in the method of calculating the rates of pay for shearers and other wool-shed hands. The new procedure is that rates shall be adjusted proportionately with the movements of an index number to be prepared by the Government Statistician based on average prices realized at New Zealand sales for greasy wool (calculated for June years).

In referring to the general question of wage rates it is relevant to draw attention to the supplementary income which is provided by benefits available under the Social Security Act in certain cases, while the War Pensions Act is of significance also in this connection (see Section 7).

PROTECTION OF WAGES.—Workers' wages were first safeguarded by the Truck Act of 1891, which ensured to workers the payment of their wages in full in coin of the realm. This was followed by a series of Acts—the Contractors' and Workmen's Lien Act 1892, the Workmen's Wages Act 1893, the Threshing Machine Owners' Lien Act 1895, the Wages Attachment Act 1895, and the Wages Protection Act 1899—all aimed at making the payment of wages more certain and secure, and at limiting creditors' rights to attach future earnings.

This code was consolidated into the Wages Protection and Contractors' Liens Act of 1908, which operated until it was superseded by the Wages Protection and Contractors' Liens Act 1939. The re-enactment is substantially the same as the 1908 Act except for the omission of several sections relating solely to wages protection, which were largely duplicated by the sections dealing with workers' liens.

Some of the more salient provisions of the Act, as it now operates, are set out below.

In the absence of any written agreement to the contrary, wages of manual workers are to be paid at intervals of not more than a week, and of other workers at intervals of not more than a month. The attachment of workers' wages for debt is prohibited except in the case of any surplus over £2 a week or when specific provision is made in any other Act for attachments on a lower minimum. Exceptions are made by the Child Welfare Act 1925, and the Destitute Persons Act 1910. The Coal Mines Amendment Act 1941 provides for deduction from wages, with the written consent of the employee, of sums towards repayment of principal or payment of interest, etc., in respect of advances by the mineowner to the worker for the purpose of acquiring a home. Section 210 of the Land and Income Tax Act 1954 provides for deduction of due amounts from the salary or wages of a taxpayer who has made default in the payment of income tax.

The Act prohibits payment of wages being made in goods (truck) or in any other way than in money or by approved cheque, and also prohibits any stipulation as to how the wages money is to be expended. The truck provisions do not, however, apply where the employer supplies house accommodation, board and lodging, fuel, medical assistance, materials, tools and the like required for the work, nor to seamen or farm workers.

A contractor, subcontractor, and any worker is entitled to obtain liens on the lands or chattels of the employer upon giving due notice, and the employer must then retain in his hands sufficient of the contract moneys to satisfy and guarantee payment of the claimant's dues, but the total amount recoverable may not exceed the amount due under the contract. In addition the Act, as amended in 1952, directs that the employer or contractor (where a subcontract is entered into) shall retain in his possession, whether or not he has received notice of any lien or charge, a percentage (10 per cent on the first £100,000, and 5 per cent on any amount in excess of £100,000) of so much of the contract price as has for the time being become immediately payable, until thirty-one days have elapsed after the completion of the contract.

In the matter of priority of liens and charges the order is as follows: (1) the claims of workers for wages not exceeding three months' wages and not exceeding £50; (2) the claims of workers for wages not included in the foregoing, and the claims of subcontractors; and (3) the claims of contractors. If notice of a lien or charge is not made before the completion of the contract or within thirty days of the completion, the claim will lose priority as against other claims of its own class, but will come before claims of the succeeding class.

All attachments or assignments granted by any employer or contractor are void against the charges or liens of subcontractors or workers for money due under the contract, except in the case of mortgages on land registered before the liens; in that case the mortgage has priority over the lien. If the mortgagee is a party to the contract, or if the mortgage secures any money that is advanced after notice of the lien has been given to the mortgagee, the lien has priority over the mortgage. If, in the case of the death or bankruptcy of a person entitled to a lien or charge, the debt secured by the lien or charge passes to any other person, the right to the lien or charge passes with it.

No deduction from workers' wages may be made for purposes of insurance against compensation for accident.

Liens to be imposed as security for miners' wages or earnings are dealt with under the Mining Act 1926 and the Coal Mines Act 1925.

Wages are further safeguarded by certain sections of the Bankruptcy Act, which give priority of payment for wages or salaries of workers (with certain limitations as to amount and period) in preference to certain other debts, and since the passing of the Bankruptcy Amendment Act 1927 wages take precedence over rents. Similarly, under the Companies Act, wages (with the same limitations as under the Bankruptcy Act) arc a first claim on the assets of a company being wound up. Under the Workers' Compensation Act 1956, compensation payments rank with wages as a first charge on the assets of a bankrupt.

Various individual labour laws contain provisions with the special intent of protecting the payment of wages of the workers to whom such legislation applies.

STABILIZATION.—Stabilization as an explicitly stated object of policy came to the forefront early in the Second World War. It had long been realized that in wartime the normal supply or flow of goods would be restricted, particularly so in the case of imports, but also in some degree in the field of local production. This factor, reinforced by others such as the progressive withdrawal of elements of the labour force for service with the Armed Forces, changes in the extent and character of industrial activity and in the labour force generally, and the necessity of financing a costly war, would inevitably exert an upward pressure on the wage and price structures of the country. It was equally necessary to limit or confine upward movements in these structures in so far as this procedure could be made effective or practicable. Measures to this effect were authorized, evolving into a fairly comprehensive system of regulations covering the general fields of price control, wages stabilization, rent stabilization, direction of man-power, subsidies, etc. After the close of the war some of these measures were dispensed with, while others were retained and relieved of their emergency status by further legislation.

While wages stabilization is the main theme of the following paragraphs, other aspects of stabilization will be found elsewhere in this issue (rents, Section 38G; prices, Section 36; and subsidies, Section 19).

The initial legislative step in the control of wages and remuneration was the gazetting of the Rates of Wages Emergency Regulations 1940, which with its amendments were revoked by the 1949 amendment to the Economic Stabilization Emergency Regulations 1942. The 1940 regulations provided that the Court of Arbitration from time to time, on application, might amend by general order the provisions of all awards and industrial agreements, but that in making such a general order the Court was to take into account certain economic conditions. As these qualifications were largely superseded by the Economic Stabilization Emergency Regulations issued in 1942, it will be more profitable to proceed to a survey of the latter.

In regard to the Economic Stabilization Emergency Regulations 1942, as subsequently amended up to and including the amendment of February 1949, the main features of importance may be summarized as follows. The regulations provided for the stabilization of all rates of wages and remuneration at the levels ruling on 15 November 1942. Basic rates of remuneration were defined as the actual rates as at 15 December 1942, or as determined by the Wages Commissioner or Commissioners (formerly Conciliation Commissioner) appointed under the regulations. These basic rates were not to be exceeded except with the approval of the Wages Commissioner, which might be granted wholly or in part on the following grounds:

  1. That the person was employed in any additional position, employment, duties, or work, or in work involving additional risk to life or health.

  2. That an increase was necessary for removal of anomalies.

  3. That when the basic rate was determined, remuneration was being paid at an abnormally low rate or no remuneration was being paid.

A special wartime price index was provided for the purpose of recording, as from 15 December 1942 at quarterly intervals, any increase or reduction in the prices of such commodities and services (including rents) as the Minister of Industries and Commerce might direct. In the event of any movement, amounting to 2 1/2 per cent initially and 5 per cent in subsequent variations in the general level of prices included in the wartime price index, the Court of Arbitration was enjoined to issue a general order adjusting rates of remuneration similarly, by an amount equivalent to the variation disclosed by the index. Apart from the adjustment of strictly defined anomalies, these regulations limited the powers of the Court in dealing with wages to the issue of general orders as outlined above. Any change specified in such a general order was also applicable to any case wherein the actual rate of remuneration exceeded that to which the worker was entitled under an award. It applied, however, only to such portion of the weekly remuneration as did not exceed £6 in the case of male workers, and to such lesser portion as the Court thought fit in the case of female workers, junior workers, and apprentices.

An important regulation, issued in 1944, provided that the Court, in exercising its functions in relation to the making or amendment of awards or apprenticeship orders, or in approving any industrial agreement, should have regard to the general purpose of the regulations. A similar provision covered applications for revised tool and special clothing allowances, etc. In determining award rates a clause, deleted in 1947, provided that no regard should be had to fluctuations in the cost of living. This factor came under those conditions to be taken into account in the making of general orders.

The February 1945 amendment gave the Court power to amend existing awards and agreements so as to adjust disparities in wage levels—i.e., to restore or preserve proper relationships with other rates of remuneration. Also in February 1945 the Court was empowered from time to time of its own motion or on application of any industrial union or association to make pronouncements specifying standard rates of wages for skilled, semi-skilled, and unskilled workers.

In June 1945 a further amendment to the regulations was issued, and in making any general order regarding wages the Court was required to take into account—

  1. The economic and financial conditions affecting trade and industry in New Zealand.

  2. Any rise or fall in the cost of living as indicated by the wartime price index since 15 December 1942.

  3. Any increase or reduction in rates of remuneration since 15 December 1942.

  4. Any other consideration that the Court deemed relevant.

In making any general order the Court could exclude from the scope of the order such portion of the weekly remuneration of male, female, and junior workers, and of apprentices as exceeded amounts determined by the Court for those groups of workers.

Power to amend awards and industrial agreements during their currency in accordance with standard wage pronouncements, regard being paid to any increases made since 1945 and also to the balance with other rates was given by the 1947 amendment to the regulations.

The Economic Stabilization Emergency Regulations 1942 were amended in several important respects in February 1949. This amendment revoked the Rates of Wages Emergency Regulations 1940 and subsequent amendments, and also amended the principal regulations chiefly in the following ways. To assist in the furtherance of the objects of stabilization generally, the regulations laid down that the Court should take into consideration the following conditions in making any pronouncement or general order:

  1. The general purpose of the regulations.

  2. Any rise or fall in retail prices as indicated by any index published by the Government Statistician.

  3. The economic conditions affecting finance, trade, and industry in New Zealand.

  4. Relative movements in the incomes of different sections of the community.

  5. All other considerations that the Court deemed relevant.

On application the Court could also amend, by general order, those provisions of all awards and industrial agreements for the time being in force which determined the rates of remuneration.

Provision was also made for a general order to be made on any application for a standard wage pronouncement, and vice versa. In either case no general order could be made to take effect, or any pronouncement be made, less than one year from the date of a previous order becoming effective or of a previous pronouncement having been made.

The condition (b) quoted above was substituted by the February 1949 amendment for the earlier one requiring an index of prices, known as the Wartime Price Index, to be prepared and published quarterly for the purposes of the regulations.

Most of the features outlined could similarly be applied to apprenticeship orders, except where these were already covered by reason of the fact that rates of remuneration of apprentices might in some cases be fixed as proportions of the rates fixed from time to time for journeymen.

In pursuance of the policy of stabilization, and probably indicative of its importance in the post-war era, the passing of the Economic Stabilization Act 1948 is of significance. The general purpose of this Act (as of former emergency regulations also) is to promote the economic stability of New Zealand. In addition to the administration of the Act the Minister of Industries and Commerce is charged with the general function of doing whatever is considered necessary for the general purpose of this Act, and in particular for the stabilization, control, and adjustment of prices of goods and services, rents, other costs, and rates of wages, salaries, and other incomes. Authority for the appointment of a Director of Stabilization was also given. The Act further provided for the establishment of the Economic Stabilization Commission with the principal function of making recommendations, after inquiry and investigation, in relation to the economic stabilization of New Zealand and the functions of the Minister under the Act. There are at present (March 1957) no appointed members of the Commission, its functions being discharged by the Minister in Charge of Stabilization.

By Order in Council, stabilization regulations may be made from time to time to give full effect to the provisions and administration of the Act, including regulations for all or any of the following purposes:

  1. Regulating the marketing of any goods or classes of goods for the general purpose of the Act.

  2. Equalizing, as far as possible, the net returns received or payable in respect of any goods or classes of goods, and for that purpose imposing levies on any goods or classes of goods.

  3. Recovery of subsidies paid out of public moneys in respect of any goods or classes of goods.

  4. Providing for the appointment of officers and committees and other bodies, and defining their functions and powers.

From the point of view of this Section it was of interest to note that certain of the Economic Stabilization Emergency Regulations 1942 (as summarized earlier) were continued in force as stabilization regulations. The necessary powers were also given enabling information required for the purposes of the Act or any stabilization regulation to be obtained, and also for the prescription of offences and penalties.

The 1942 emergency regulations were, however, revoked by the Economic Stabilization Regulations 1950, the general tenor of which is contained in the following paragraphs, together with any significant differences from the provisions of the earlier emergency regulations.

In exercising its powers in relation to the making or amendment of awards or apprenticeship orders, or the approval of industrial agreements, the Court of Arbitration was to have regard to the general purpose of the Economic Stabilization Act 1948. The former provision requiring it to have regard to a proper relationship between the rates of remuneration of different classes of workers was omitted, though, of course, this factor might form one of the considerations that could be taken into account by the Court. The control of maximum rates of remuneration was abolished, while the application of a general order to rates of remuneration paid in excess of award rates no longer became automatic.

The provisions as to standard wage pronouncements by the Court of Arbitration in the earlier emergency regulations were omitted from the 1950 stabilization regulations, although there was no restriction on the inherent power that the Court has always had to make such pronouncements at any time.

The Court was empowered to make general orders, of its own motion or on application, amending those provisions of all awards and industrial agreements in force relating to rates of remuneration. No general order made on application was to take effect less than one year after the date on which any previous general order had taken effect, but the Court could make a general order of its own motion at any time. The former provisions permitting the exclusion of special classes of workers from general orders, and the application of such orders to apprentices, were retained, as was the provision requiring industrial agreements to be filed after first being approved by the Court.

In making a general order the conditions which the Court were required to take into account were substantially the same as those set out on page 1033 under the 1942 regulations, except that condition (a) was worded “The general purpose of the Economic Stabilization Act 1948.” When fixing tool, clothing, and vehicle allowances the Court was to have regard to changes in costs.

A May 1950 amendment to the regulations made provision for the issue of an interim general order by the Court of its own motion, which for the purpose of determining the time at which any general order made on application was to take effect could be disregarded, although adjustment of rates in a final order was not retrospective in operation.

The 1950 regulations were revoked and replaced by the Economic Stabilization Regulations 1952, which came into force on 28 February 1952. These regulations, as affected by the December 1952 amendment, included the following provisions:

  1. The Court of Arbitration, for the purpose of making or amending awards, or apprenticeship orders, or of approval of any industrial agreement, was to have regard to the general purpose of the Economic Stabilization Act 1948; and when fixing tool, clothing, footwear, motor vehicle, or bicycle allowances was to have regard also to any increases or reduction in costs (inclusive of maintenance, replacement, etc., costs) of these items. This provision in its entirety was deleted by the December 1952 amendment to the regulations.

  2. No industrial agreement was to come into force until after having been approved and filed. This requirement was also deleted by the December 1952 amendment.

  3. The Court was enabled to make general orders amending the rates of remuneration in all awards and industrial agreements, either of its own motion or on the application of any industrial union or association of employers or workers for a general order or for a standard wage pronouncement. The Court might exclude from the scope of the general order such portion of the remuneration in each week of the workers affected by the order as exceeded an amount specified by the Court; this amount might be varied in the case of females and junior workers respectively.

  4. The Court was empowered to make pronouncements specifying standard rates of wages for skilled, semi-skilled, and unskilled workers, either of its own motion or on the application of any industrial union or association of employers or workers for a standard wage pronouncement or for a general order. Power was given to the Court to amend awards and industrial agreements to give effect to any standard wage pronouncement and to make the amendments retrospective to the date of the pronouncement.

  5. A general order might be made to take effect or a standard wage pronouncement might be made not less than six months after the date of any previous general order or standard wage pronouncement.

  6. Power was given to exclude any specified class or section of workers from the operation of a general order, or to amend provisions of any award or industrial agreement in relation to a standard wage pronouncement, in such cases due regard having been made to any increases in the rates of remuneration granted by the Court to the workers affected since the date of the last preceding order or pronouncement. Where the Court has exercised this power of its own motion it might subsequently on application, and within twenty-one days in that behalf, make such further order or amendment as it considered just and equitable in relation thereto.

  7. The conditions which the Court was required to take into account in making any general order or standard wage pronouncement were as follows:

    1. The general purpose of the Stabilization Act 1948:

    2. Any rise or fall in retail prices as indicated by any index published by the Government Statistician:

    3. The economic conditions affecting finance, trade, and industry in New Zealand:

    4. Relevant movements in the incomes of different sections of the community:

    5. All other considerations that the Court deemed relevant.

  8. Powers set out in relation to general orders and standard wage pronouncements could be extended to apprenticeship orders, unless they applied automatically to any such orders by reason of the fact that rates of remuneration of apprentices were fixed by the apprenticeship order as proportions of the rates from time to time fixed for journeymen.

  9. The regulations provided that rates of remuneration by reference to which the scope of an award or industrial agreement was fixed were to be automatically increased or reduced in conformity with any general order or standard wage pronouncement.

The 1952 regulations covered any application already made for a general order under the revoked regulations.

The Economic Stabilization Emergency Regulations 1952 were later amended so as to enable representatives of the parties bound by orders of the Government Service Tribunal, the Government Railways Industrial Tribunal, and the Waterfront Industry Tribunal, to appear and make submissions on the hearing by the Court of Arbitration of applications for general orders increasing or reducing rates of remuneration, or of applications for standard wage pronouncements.

With the revocation of the 1952 regulations by the issue in May 1953 of the Economic Stabilization Regulations 1953, certain changes in content, as outlined below, were made.

The principal features by which the 1953 regulations differ from those made in 1952 are (a) in the making of a general order the former specific provision requiring the Court of Arbitration to take into account the general purpose of the Economic Stabilization Act 1948 is omitted, and a new provision is inserted requiring the Court to take into account any increase or decrease in the volume and the value of production in primary and secondary industries of New Zealand; (b) the regulations no longer empower the Court to make standard wage pronouncements under these regulations, but the power to amend awards and industrial agreements to give effect to the pronouncement made on 12 July 1952 is continued.

The 1953 regulations provide as follows: the existing provision is repeated enabling the Court to make general orders amending the rates of remuneration in all awards and agreements, subject to the alterations made in the preceding paragraph; the existing provisions are repeated as to excluding special classes of workers from general orders, with the time for applying to the Court being extended from twenty-one days to twenty-eight days; the Court is enabled to amend awards and industrial agreements to give effect to the standard wage pronouncement of 12 July 1952, with power to make the amendments retrospective to 1 September 1952; the existing provisions as to the application of general orders to apprentices are repeated; and finally there is a provision that the rates of remuneration by reference to which the scope of an award or industrial agreement is fixed are to be automatically increased or reduced in conformity with any general order, and may be correspondingly increased in conformity with the standard wage pronouncement of 12 July 1952.

An amendment to these regulations made later in the month of May 1953 provided that the Court of Arbitration, in taking into account the prescribed matters in the making of a general order, is not to be restricted to events occurring since the date of the last standard wage pronouncement or general order, but may consider events that occurred before that date and events likely to occur in the future.

An amendment in September 1953 gave the Court a discretionary power to fix a date for the commencement of its general order before the date on which it is made, but not earlier than 15 September 1953; this regulation related to the application for a general order then pending in the Court of Arbitration.

38 D—LABOUR DISPUTES LEGISLATION

LABOUR DISPUTES.—Trade-unionists were early protected by the Trade Unions Act of 1878 from prosecution for conspiracy by reason merely that the purposes of the trade unions were in restraint of trade. They were further protected by the Conspiracy Law Amendment Act of 1894, which laid down that any act by a union in furtherance of a trade dispute should not be deemed unlawful so as to render such persons liable to criminal prosecution for conspiracy, if such act committed by one person would not be deemed unlawful. This removed a very serious handicap under which unionists up to that time had suffered.

Industrial Conciliation and Arbitration Act.—The original Industrial Conciliation and Arbitration Act was placed on the New Zealand statute-book in 1894. Its object was to encourage the formation of industrial unions and associations, and to facilitate the settlement of industrial disputes by conciliation and arbitration. It provided for the registration as “industrial unions” of societies of workers or employers in the various industrial districts, and as “industrial associations” of any council or other body representing any number of such unions; for the making of industrial agreements pursuant to the Act, and the filing of such in the Supreme Court; for the formation of industrial districts, the election of Boards of Conciliation, and the setting up of a Court of Arbitration.

In 1898 an amendment was passed empowering the Court in its awards to prescribe minimum rates of wages, with special provision for a lower rate to be paid in the case of workers unable to earn the prescribed minimum. An important amendment passed in 1903 prohibited any employer, worker, union of workers, or union of employers from taking proceedings to defeat any of the provisions of an award during its currency. It forbade an employer to dismiss any employee merely because he happened to be entitled to the benefit of an award or merely because he was a member of a union. Under the present law dismissal, or prejudicial alteration of position, of an employee who within the preceding twelve months had acted in any of certain specified capacities, or was entitled to or had claimed certain benefits, renders the employer liable to a penalty unless he proves that the dismissal or alteration of position was due to some other reason. An industrial union of workers may take action for a penalty in this connection.

By the 1905 amendment the constitution of Conciliation Boards was altered to provide for the appointment of four Conciliation Commissioners, whose duty it is to call together representatives of employers and employees in the event of a dispute arising, and to sit with these representatives as a Conciliation Council in an endeavour to effect a settlement. The decision of the Council is not binding, but disputes must be referred to a Council before they may be referred to the Court of Arbitration. A further amendment in 1911 provided that recommendations of Conciliation Councils become in effect industrial agreements if none of the parties to a dispute disagrees with such recommendations.

The law as it existed in 1954 was consolidated in that year, previous consolidations having been effected in 1900, 1905, 1908, and 1925.

In 1927 a Bill was introduced into Parliament to exclude from the jurisdiction of the Court of Arbitration the farming industry and certain associated industries. The Bill met with considerable opposition and was not proceeded with. However, an amending Act was passed which provided that no award relating to any agricultural, pastoral, or dairying operations, or to any other work effected on a farm, or to the manufacture or production of butter, cheese, or other milk products, should be made before 1 September 1928. The provisions of the amendment of 1927 were re-enacted in 1928, another amendment extending for twelve months the period during which awards in the industries mentioned were not to be made, and also providing that no awards in these industries were to be altered or amended in the meantime without the consent of all parties concerned. The provisions referred to lapsed on 1 September 1929.

A second amendment passed in 1928 permitted of industrial agreements and (with the consent of the parties concerned) awards being made for or extended to a term of five years. This amendment also allowed of an award or industrial agreement, in lieu of prescribing minimum rates of wages, prescribing a method or basis for calculating minimum rates.

As a result of depression conditions the Court was empowered by the Finance Act 1931 to amend, by general order, awards or industrial agreements in respect of rates of wages, though power was given for the exclusion of any class or section of workers from the operation of a general order. In the next year compulsory arbitration was abolished; conciliation was still compulsory, but disputes could be referred to the Court only by mutual consent. Provision was also made for the review of existing awards.

The Industrial Conciliation and Arbitration Amendment Act 1936 restored the full jurisdiction of the Court of Arbitration, and also made several other amendments. The more important of these, as amended in later years and incorporated in the consolidated Industrial Conciliation and Arbitration Act 1954, are summarized below:

  • A 1936 provision required the Court to fix basic wages for adult male workers based on the needs of a man, wife, and three children, and also a basic wage for adult female workers. It was to make general orders prescribing the basic wages which would apply to workers in any industry to which any award or industrial agreement related. These provisions were dropped from the 1954 Act as spent.

  • Restrictions are imposed on the formation of new unions in districts where a union in respect of the same industry exists; in fact, no such new union may be registered unless with the concurrence of the Minister of Labour. The concurrence of the Minister must similarly be obtained before any industrial union may alter its rules so as to include in its membership any employers or workers who could already properly belong to another existing industrial union or trade union.

  • Provision is made for the registration of New Zealand unions covering all existing workers or employers, if all or the majority of district unions concur. In cases where no district union exists a New Zealand union may be formed, subject to compliance with the requirements of the principal Act in respect of registration of unions. The existing membership of unions and associations in national organizations such as the Federation of Labour was validated in 1951, with the provision that, in future, applications to join or leave any such organizations are to be made only when approved by a secret postal ballot of the unionists concerned.

  • All workers who are subject to any award or industrial agreement registered under the Act must become members of a union. It is not lawful for an employer to employ or continue in employment, in any position or employment subject to an award or industrial agreement, any adult person who is not a member and has not been exempted from membership. Provision was made in 1951 for exemption from union membership on religious grounds if the applicant satisfies the Conscientious Objection Committee appointed under the Military Training Act 1949 that his religious objections are genuine, and on payment of the amount equal to the prescribed subscription to the Social Security Fund. An amendment passed in 1943 provides that, where a person who is obliged to become a member of a union fails to do so, he is deemed to have committed a breach of the award or industrial agreement to which his employment is subject, and is liable to a penalty not exceeding £5 in respect of every such breach. Non-members may, however, be employed in cases where union membership is limited and there are no union members available.

  • The Court may confer on union officials the right of entry on employers' premises.

  • In every award the Court shall fix the maximum hours of work per week (exclusive of overtime) at forty, unless the Court, after hearing representatives of employers and of workers, or affording them opportunity to be heard, is of the opinion that it would be impracticable to carry on efficiently the particular industry if the working hours were so limited. If impracticable the grounds for such decision are to be indicated in the award. Where hours are not more than forty, the Court is to endeavour to fix the daily working hours so that no part of the working period falls on a Saturday.

  • By the earlier Act the maximum weekly union subscription had been fixed at 1s. This limitation was removed in 1936, but provision was made in 1951 to the effect that rules requiring payment exceeding 1s. a week (raised to 2s. by the 1954 Act) shall not be valid unless adopted by a majority of the votes at a secret postal ballot of the financial members. A similar proviso has been in force since 1951 in respect of the payment of levies.

The principal Act provides for the permissible appointment of an additional Judge and of a temporary Judge of the Court of Arbitration.

The administration of the Industrial Conciliation and Arbitration Act is in the hands of the Department of Labour, and Inspectors of Factories are charged with the duty of seeing that the provisions of awards and agreements are carried out. The following paragraphs indicate the procedure followed in regard to industrial disputes under the Act:

  • An industrial union (or association of unions) of workers registered under the Act may cite a union or association of unions of employers, or an employer, or a number of employers, before a Council of Conciliation for the hearing of an industrial dispute before a Commissioner and assessors appointed from either side.

  • An industrial union (or association of unions) of employers registered under the Act, or an individual employer, or employers, may cite a union of workers in a similar manner. The workers may compel any of their employers to come under the Act; but the employers cannot compel their workers to come under it unless the latter have registered as an industrial union or association thereunder; registration is voluntary.

  • If a settlement of a dispute is arrived at by the parties in the course of an inquiry held before a Council of Conciliation, the terms of the settlement are set forth as an industrial agreement. Applications for exemption from the terms of the agreement must be made within one month after it has been filed. The Court is empowered to grant or to refuse such applications. Where an agreement applies to the employers employing the majority of workers in the industry to which it relates, the agreement may be made binding on all employers, whether parties or not.

  • Every such agreement must be executed on behalf of the parties by the assessors representing the parties. If settlement cannot be arrived at before the Conciliation Council the matter is referred to the Court. The Council may at the same time submit a recommendation for the settlement of the dispute; whereupon the parties are notified of such recommendation, and if acceptable to them the recommendation is made an industrial agreement; failing agreement the matter is referred to the Court.

  • If a dispute comes before the Court, argument is heard upon the matters in debate, and the Court then makes its award, which becomes binding upon the employers specified in the award, upon any employers commencing business in the district subsequently to the date of the award, and upon all persons working for such employers. In all cases where an industrial agreement or accepted recommendation or award is filed, it becomes binding on all the parties. When an award or industrial agreement has been filed, a strike or lockout becomes unlawful Unless the parties otherwise agree rates of wages specified in an award shall have effect from two months after the date first appointed for the hearing by the Conciliation Council, or where two or more districts are affected, four months after this date, or as from the date of the making of the award, whichever is the earlier, or as from such other date as the Court in its discretion thinks fit after taking into consideration all relevant matters.

  • No industrial dispute shall be referred for settlement to a Council of Conciliation by an industrial union (or association of unions) unless the proposed reference has been approved by resolution by the committee of management of the union or of each of the unions concerned, as the case may be.

  • Where an application has been made to a Conciliation Commissioner for the hearing of an industrial dispute by a Council of Conciliation the claims made by the applicant may be amended withdrawn at any time, whether before or during the hearing. Where any industrial dispute has been referred to the Court for settlement, or any application has been made to the Court under the principal Act, the reference or application may be withdrawn by the applicants at any time, whether before or during the hearing.

The Minister of Labour is empowered, if he is satisfied that any discontinuance of employment brought about wholly or partly by any industrial union of employers or of workers has caused, or is likely to cause, serious loss or inconvenience, to cancel the registration of the union concerned or to cancel any award or industrial agreement so far as this relates to it.

The time within which action may be commenced for recovery of arrears of wages payable under an award or industrial agreement is two years.

The rules of an industrial union must provide for the election of officers by secret ballot, while the Registrar is empowered to refuse to record any rule or amendment on the ground that it is unreasonable or oppressive (the decision may be the subject of an appeal); other provisions relate to disputed elections in unions.

In 1951 provision was made in any award or industrial agreement to the effect that any party to a dispute on a matter arising out of the award or agreement but not specifically dealt with therein may require the appointment of a Local Disputes Committee which will have power to decide the dispute or to refer it to a Conciliation Commissioner. The latter in his discretion can refer the dispute either to a National Disputes Committee, which may be appointed where any award relates to two or more industrial districts or parts thereof, or to the Court of Arbitration. Appeals against the decisions of the Disputes Committees may be made to the Court of Arbitration.

Where a majority of the workers affected by any industrial dispute under the principal Act are Hospital Board employees, the Director-General of Health is to be a party to the dispute and is to recommend assessors for the employers in the conciliation proceedings. Other sections provide that an award is not to be made affecting Hospital employees now affected by regulations unless a majority votes in favour of an award, and for the concurrence of the Minister of Health with industrial agreements in similar circumstances.

Definitions of the terms strike and lockout are given in the Act (which apply also for the purposes of the Labour Disputes Investigation Act 1913). A strike means the act of any number of workers, who are or have been in the employment of the same or of different employers—

  1. In discontinuing that employment, whether wholly or partially; or

  2. In breaking their contracts of service; or

  3. In refusing or failing after any such discontinuance to resume or return to their employment; or

  4. In refusing or failing to accept engagement for any work in which they are usually employed; or

  5. In reducing their normal output or their normal rate of work—

    the act being due to any combination, agreement, common understanding, or concerted action, whether express or implied, made or entered into by any workers—

  6. With intent to compel or induce any such employer to agree to terms of employment or comply with any demands made by the said or any other workers; or

  7. With intent to cause loss or inconvenience to any such employer in the conduct of his business; or

  8. With intent to incite, aid, abet, instigate, or procure any other strike; or

  9. With intent to assist workers in the employment of any other employer to compel or induce that employer to agree to terms of employment or comply with any demands upon him by any workers.

A lockout means the act of an employer—

  1. In closing his place of business, or suspending or discontinuing his business in any branch thereof; or

  2. In discontinuing the employment of any workers, whether wholly or partially; or

  3. In breaking his contracts of service; or

  4. In refusing or failing to engage workers for any work for which he usually employs workers—with intent—

  5. To compel or induce any workers to agree to terms of employment or comply with any demands made upon them by the said or any other employer; or

  6. To cause loss or inconvenience to the workers employed by him or to any of them; or

  7. To incite, aid, abet, instigate, or procure any other lockout; or

  8. To assist any other employer to compel or induce any workers to agree to terms of employment or comply with any demands made by him.

An industrial dispute is a strike if it comes within the definition of a strike which is quoted above. It is in addition an unlawful strike if either—

  1. The union or the workers taking part in it are for the time being bound by an award or industrial agreement under the Industrial Conciliation and Arbitration Act 1954, or by a duly filed agreement under the Labour Disputes Investigation Act 1913, or by any Principal Order under the Waterfront Industry Act 1953; or

  2. The workers taking part in it are employed in any of the industries specified in section 196 of the Industrial Conciliation and Arbitration Act 1954, and the strike takes place without those workers having given to the employer, within one month before striking, not less than fourteen days' notice in writing signed by them of their intention to strike or before the expiry of any such notice; or

  3. In the case of a dispute relating to conditions of employment between a society of workers to which the Labour Disputes Investigation Act 1913 applies, but who are not bound by any duly filed agreement under the Act, they have failed to give notice of the dispute to the Minister of Labour as required by section 4 of that Act, or if the strike occurs before the expiration of seven days after the publication of the result of a secret ballot of the workers directly concerned taken in pursuance of the Act.

Further, a strike which would not be unlawful for any of these reasons may be or become unlawful by the operation of regulations to that effect made under the Public Safety Conservation Act 1932, during a state of emergency declared by proclamation of the Governor-General in accordance with the provisions of that Act. See page 1025 for an illustration of circumstances in which the Public Safety Conservation Act has been invoked.

Maximum penalties and fines for being a party to or inciting, instigating, or aiding an unlawful strike or lockout are also provided for—namely, (a) for a worker, £50 or (in the case of certain essential industries) £75; (b) for a union official, £250 or £350; (c) for a union or association or employer, £500 or £750. The maximum penalty for impeding or interfering with a secret ballot on the question of a strike or lockout is imprisonment for twelve months or a fine of £100, or both.

The taking of a secret ballot by every industrial union of workers or of employers on questions relating to strikes and lockouts has been supplemented by making the union liable as having instigated any strike or lockout that takes place without a secret ballot having first been taken. The penalty in such a case is a fine not exceeding £100 for every member of the union taking part in a strike, and every official of the union a fine of £500 unless he proves that he had no means of knowing the imminence of the strike or that he took every step possible to ensure compliance with the provision and to prevent the strike. Corresponding maximum penalties in respect of a lockout are £1,000 for a member of the union and £500 for an official.

Labour Disputes Investigation Act.—Machinery for dealing with all disputes to which the Industrial Conciliation and Arbitration Act does not relate is contained in the Labour Disputes Investigation Act 1913.

Under this Act, if a dispute concerning wages or other conditions of employment arises between a society (or societies) of workers, whether registered or not, that is not bound by any award or industrial agreement and its employers, the society must, before it may strike, give to the Minister of Labour formal notice of the dispute, setting forth the names of the parties to the dispute and the claims made by the society. The Minister then refers the dispute to a Conciliation Commissioner to call a conference, or to a Labour Disputes Committee for investigation and recommendation. Such a committee consists of from one to three members chosen from each side, with an independent chairman. In the event of no settlement being arrived at, a secret ballot is taken by the Registrar of Industrial Unions among the members of the society as to whether, in the case of no recommendation having been made, a strike should eventuate; or, in the case of a recommendation having been made, as to whether the recommendation should be adopted. Seven days' notice must be given to the employers should a strike be decided upon.

Similar provisions apply with reference to the filing of a dispute and to a lockout by the employers.

In the event of an agreement being arrived at, it may be filed with the Clerk of Awards. It is then enforceable in the same manner as an industrial agreement under the Industrial Conciliation and Arbitration Act.

By this Act the principle of settlement of industrial disputes by conciliation and arbitration is extended to workers outside the scope of the Court of Arbitration, so that definite restrictions on the right to strike or to lockout exist over the whole field of industry in New Zealand. The powers under this Act are not, of course, as far reaching as those under the Industrial Conciliation and Arbitration Act, its main object being that workers or employers should take time for consideration of the points at issue and not precipitate themselves into industrial strife.

Industrial Relations Act 1949.—This measure contains a section enabling a Conciliation Commissioner or a person nominated by the Minister to call a compulsory conference of parties where there is reason to believe that a matter not provided for in the award or industrial agreement governing the industry is causing or is likely to cause industrial unrest.

38 E—APPRENTICESHIP AND TRADES CERTIFICATION LEGISLATION

APPRENTICESHIP LEGISLATION.—The statutory regulation of apprenticeship goes back as far as 1865, when a Masters and Apprentices Act was passed which provided for indentures of apprenticeship binding children above twelve years of age to farmers, tradesmen, and artisans for a term not exceeding five years. Every indenture was to contain a covenant on the part of the master that he would provide the apprentice with suitable food, clothing, and bedding, give particular attention to his morals, and pay certain sums into the savings bank for him after his apprenticeship had exceeded two years. The Act was thus obviously framed with a view to providing for the welfare of orphans and destitute children.

Another Act was passed in 1875 which made provision for the apprenticing of boys to Government Departments for a term of not less than three nor more than seven years. The Departments made available in the first instance were the Government Printing Office and the Railway Workshops. Wages were to be paid, no provision was made for board, and the Act was clearly intended primarily to meet the case of boys whose parents were alive.

The Master and Apprentice Act of 1908 consolidated the above two Acts into an Act of two Parts, but made no essential change.

A Master and Apprentice Amendment Act was passed in 1920 with a view to facilitating the apprenticing of immigrant or New Zealand boys between the ages of fifteen and nineteen to the occupation of farming until they were twenty years of age. Part I of the principal Act of 1908 (dealing with the relations between master and apprentice) was to apply with some slight modifications.

Until 1923 no legislation was passed to make special provision for the apprentice who worked by the day for the private employer.* His case was regulated by the laws of England in so far as they were applicable to New Zealand, and by such provisions in regard to apprenticeship as the Court of Arbitration might have included in its awards. The Apprentices Act of 1923 was a landmark, in so far as it provided an elaborate administrative machinery to safeguard the interests of apprentices.

* The Shipping and Seamen Act of 1903 included some sections regulating the apprenticing of boys to ships.

The Act stated that from time to time the Court of Arbitration should make orders regulating the wages, hours, and conditions of apprenticeship, the proportion of apprentices to journeymen that might be employed in any industry, the period of apprenticeship, and the minimum age of apprentices. It might also require employers to engage such number of apprentices as the Court might consider necessary to ensure an adequate supply of journeymen in the interests of the industry, order the transfer of an apprentice from one employer to another, order the attendance of any apprentice at a technical school or training establishment, prohibit any employer from employing an apprentice, enter the premises where an apprentice was employed in order to inquire into his welfare, and exercise a number of other powers. The Act applied to male apprentices only. Provision was made for the modification of apprenticeship conditions in the case of adults or of persons who were already partly trained. It also made provision for registration of every contract of apprenticeship and for the setting-up of Apprenticeship Committees.

The Secretary for Labour was to act as Registrar of Apprentices, and any Inspector of Factories might be appointed a District Registrar of Apprentices. Apart from registering contracts, these Registrars were to have the duty of ensuring that the Act was complied with, and they were to take proceedings for every breach of an apprenticeship contract. They were also given considerable scope for developing a system of vocational guidance, in so far as they were given powers to demand reports from the head teacher of any school as to the attainments and qualities of any child.

An amending Act of 1927 made a number of minor changes in the legislation, and removed a power of the Court of Arbitration to fix the proportion of apprentices to journeymen on a district basis, while the amending Act of 1930 made some improvements in administration, dealt with the case of the unsatisfactory apprentice, and brought in further protective sections. If an apprentice proved unsatisfactory, the employer might apply to the appropriate Apprenticeship Committee for the right to discharge him. The employer or the apprentice might appeal against this decision to a Stipendiary Magistrate. The interests of the apprentice were protected by regulations safeguarding his wages in the event of the employer's bankruptcy. The employer was to keep a wages and time book, and a copy of the apprenticeship order was to be affixed in a place where it might be easily read by the apprentice.

The economic depression had an unfavourable effect on the apprenticeship system. The Finance Act of 1931 conferred power on the Court of Arbitration to vary the rates of remuneration payable under apprenticeship orders (though such a variation was not to apply to any contract of apprenticeship then in force). The Finance Act of 1932 stated that either party to an apprenticeship contract might apply to a Stipendiary Magistrate to have the contract of apprenticeship amended, cancelled, or suspended. If the Magistrate was satisfied that, owing to the economic conditions affecting the industry concerned or the particular business of the employer, the employer could not reasonably be expected to carry out the terms of his contract, he might cancel the contract.

The economic depression and its attendant legislation had thus considerably lessened the security and remuneration of the apprentice. The Finance Act of 1936 restored the rates of remuneration to the 1931 level and repealed the provision of the 1932 Finance Act in respect of the cancellation of apprenticeship contracts. Section 7 of the Statutes Amendment Act of the same year made partial provision for those whose contracts had been cancelled, in so far as it stated that any person of eighteen years or over might, with the approval of the Minister of Labour, enter into a special contract of apprenticeship with an employer.

The Second World War raised two new problems: that of the apprentice absent on military service for short periods, and the need for increasing production in certain industries, irrespective of whether they were carried on in private or public undertakings. Hence the Suspension of Apprenticeship Emergency Regulations, issued in 1939 and subsequently renewed, which provided that if apprentices were away on military service and returned within a period of six months the period of absence should be regarded as time served under the apprenticeship contract. Section 52 of the Statutes Amendment Act of 1941 permitted the temporary transfer of an apprentice from Government to private employment and vice versa, subject to the consent of the apprentice and his parent.

The Suspension of Apprenticeship Emergency Regulations 1944 revoked the previous suspension orders, and made provision for apprenticeships which were deemed to be suspended as a result of military service to be revived within a period of six months of the termination of such service. Where a contract of apprenticeship was revived in accordance with these regulations, the term of the contract was to continue for the unexpired period as at the date of suspension, or for three years, whichever was the lesser period. The apprentice could, however, be credited with any period of his military service during which he performed trade work of the same class, or of a class related to that to which he was apprenticed.

Other provisions dealt with the wages payable under these revived contracts, special reference being made to cases in which the apprentice had reached the age of twenty-one years or whose term of apprenticeship as prescribed by the contract had expired. Limitations contained in any Act, award, apprenticeship order, or agreement as to the age or number of apprentices, or the proportion of apprentices to journeymen, were deemed to have no application to such revived contracts. These regulations were revoked by the Military Training Act 1949, which also made appropriate provision safeguarding the position of apprentices fulfilling their obligations under that Act.

The Apprentices Amendment Act 1946, which came into force on 1 January 1947, was the legislative consequence of the report of the Commission of Inquiry into apprenticeship and related matters set up in 1944. This Act made widespread changes in the traditional apprenticeship system of the country. In the first place it made provision for the appointment of a Commissioner of Apprenticeship and of District Commissioners, who were to take over the functions of the District Registrars of Apprentices under the original Act. In industries where there are organizations of employers and workers, these organizations may agree to set up New Zealand Apprenticeship Committees, which may be registered in the usual way. These New Zealand Committees, which operate in addition to the existing “local” Committees, have a number of functions, which, broadly, may be described as to supervise the flow of youths into the skilled trades, to apply to the Court of Arbitration for apprenticeship orders, to ensure proper training of apprentices, to consider whether it is practicable and desirable to introduce educational training during normal working hours, and to consider the question of a practical test for each apprentice before the completion of his apprenticeship. The original Act had provided that certain powers of the Court of Arbitration might be delegated to local Committees, but in the amending Act delegation of some of them to New Zealand Committees was introduced, with a reduction in the number that might be delegated to local Committees. From the date of the commencement of the Act no apprenticeship orders may be made in respect only of a specified locality, but must be made in respect of each industry or branch of industry for the whole of New Zealand.

In making apprenticeship orders the Court of Arbitration is empowered to apply the conditions of awards for the industry to apprentices, and to determine the wages of apprentices by reference to those of journeymen in the industry. While the Economic Stabilization Regulations 1952 originally required the Court of Arbitration, in exercising its powers and functions in relation to the making of apprenticeship orders, to have regard to the general purpose of the Economic Stabilization Act 1948, this requirement was deleted by the December 1952 amendment. The Court may, in an order, require an employer to pay to an apprentice wages for time taken during the day to attend a technical school, and may shorten the period of apprenticeship in the event of an apprentice obtaining a special qualification. On the making of a new order all contracts in force at the time are to be read subject to the new order and to be deemed modified by it. The hours of apprentices under eighteen years of age are limited to forty per week and eight per day, and, where shift-work is involved, between 7 a.m. and 6 p.m. These limits may be exceeded if an apprenticeship order provides for the working of overtime by apprentices under eighteen years of age. Regulations may be made providing for the payment to any apprentice who is obliged to live away from home of amounts by way of lodging allowance. Such allowances are to be paid out of moneys appropriated by Parliament for the purpose.

The Court may also make apprenticeship orders in respect of females, and, in that event, the Act applies to such females.

An important provision contained in the amendment was that requiring the previous consent of the appropriate Committee before a contract of apprenticeship is entered into. The provision for apprenticeship of persons of eighteen years or over contained in section 7 of the Statutes Amendment Act 1936 was repealed, and such apprenticeships may now be entered into subject to the approval of the Court of Arbitration, to which any proposed contract must be submitted together with the recommendations of the District Commissioner or the local Committee. Where any employer is considered not to be able to provide adequate training, a local Committee or District Commissioner may transfer his apprentice to another employer who is willing and able to undertake the obligations of the original employer, notwithstanding that the second employer's proportion of apprentices to journeymen would thereby be exceeded. If in such a case no employer to whom the apprentice might be transferred can be found, the Court may, with the consent of the appropriate Minister, transfer him to a State Department.

In 1948 the opportunity was taken to re-enact the provisions of the Apprentices Act 1923 and its amendments by the passing of a consolidating and amending measure entitled the Apprentices Act 1948. This Act incorporated the widespread changes in the traditional apprenticeship system which were brought into being by the 1946 amendment referred to earlier. More modern forms of words were employed in the new legislation, and the clauses were arranged in a more logical sequence. The principles of the existing legislation, however, were not altered although some slight amendments, which are described below, were made. The 1948 Act repealed Part One of the Master and Apprentice Act 1908.

In the 1948 legislation the term “industry” was redefined so as to correspond with that given in the Industrial Conciliation and Arbitration Act 1925.

A series of minor amendments covers the constitution of the Apprenticeship Committees. Where the Committee is appointed in respect of a group of industries it is to consist of four representatives of employers and four representatives of workers. Other clauses limit the term of office of members of Committees to three years, provide for a quorum and for the replacement of members who die or resign, and further authorize a Committee to delegate its powers of inspection to two non-members of the Committee, where it would be inconvenient for members to exercise those powers.

Moneys due under a contract of apprenticeship may be recovered in the same manner generally as that provided in respect of recovery of wages in the Industrial Conciliation and Arbitration Act 1954. Proceedings for breaches of the Act may be taken by an Inspector of Factories.

The number of apprenticeship contracts registered and completed during recent years, together with the number in force at the end of the March year, will be found in Section 39, Employment and Unemployment, of this issue.

TRADES CERTIFICATION.—The Trades Certification Act 1948 provided for the establishment of the New Zealand Trades Certification Board, consisting of the following members:

  1. Three persons to be appointed on the recommendation of the Director of Education, one of the three to be appointed as Chairman of the Board on the Director's recommendation:

  2. Two persons to be nominated by the New Zealand Employers' Federation and two by the New Zealand Federation of Labour:

  3. Two persons to be nominated by the New Zealand Technical School Teachers' Association and one by the Technical Education Association:

  4. The person for the time being holding the office of Commissioner of Apprenticeship:

  5. Three other persons, one of whom is to be nominated by the New Zealand Electrical Wiremen's Registration Board, one by the New Zealand Motor Trade Certification Board, and one by the Plumbers' Board of New Zealand:

  6. Additional members of whom one shall be nominated by each other authority which conducts examinations and issues certificates for the whole of New Zealand in connection with a particular trade or trades, and which the Board recommends should be represented on the Board for the time being.

The members of the Board, other than the Commissioner of Apprenticeship, are to be appointed by the Minister of Education for a term of three years. Provision is made for reappointments, removals from office, etc.

The functions of the Board are to make provision for the examination of persons practising or intending to practise any trade who desire from time to time to present themselves for examination, and, secondly, to grant or issue, either independently or in conjunction with any other examining body, diplomas or certificates to any such persons in recognition of proficiency in any trade, or in any art, science, or matter relating to any trade.

The Board may also (a) co-opt if necessary any person or persons for advice in connection with any trade; (b) make representations to the appropriate New Zealand Apprenticeship Committee in regard to the prerequisite education for apprentices wishing to enter any industry, or in regard to other educational matters affecting apprentices; appoint, with approval of the Minister, Advisory or Technical Committees to advise the Board on such matters within the scope of its powers and functions as are referred to them by the Board, and appoint any person to be a member of such a Committee even if he is not a member of the Board; and, in addition, charge fees for entry for any examination.

Payments incurred for the expenses of the Board and for administration generally are paid from the proceeds from fees and otherwise, and where the amounts from such sources are insufficient, the deficiency is to be met from the annual vote for the Department of Education.

The number of candidates over a five-year period sitting for trades certification examinations is given on page 174 of this Year-Book.

38 F—WORKERS' COMPENSATION; EMPLOYMENT AND UNEMPLOYMENT LEGISLATION

WORKERS' COMPENSATION.—Prior to 1900 the only remedy open to a worker who met with an accident at work was an action at common law against his employer for the latter's negligence. The Employers' Liability Act 1882, and later amendments, removed some of the common law disabilities on the worker's action. In 1900 the first Workers' Compensation Act in New Zealand introduced the principle that where a worker suffered injury by accident arising out of and in the course of employment he was entitled to compensation from his employer, irrespective of whether the latter had been negligent. The Workers' Compensation Act 1956, with regulations made under it, represents the existing law on workers' compensation, subject to certain other relevant legislation mentioned later in this section. “Worker” for the purposes of the Act means any person who has entered into, or works under, a contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work, or otherwise, and whether remunerated by wages, salary, or otherwise. Thus all workers (manual and non-manual) are afforded the protection of the Act, irrespective of the amount of remuneration. As well, the definition includes several classes of persons not normally regarded as “workers” because they are not working under contracts of service—namely, share farmers, drivers of vehicles who receive a share in the takings as payment for their services, or who pay a fixed sum for the hire of the vehicle (other than under the terms of a hire-purchase agreement), salesmen, canvassers, collectors, insurance agents, and other persons paid wholly or partly by commission, unless the commission is received in connection with a trade or business carried on by the recipient or by a firm of which he is a member, and persons who have contracted to perform any work in a gold or coal mine, or to cut standing timber or scrub, or to clear land of stumps or logs, and who do not sublet the contract or employ labour or who, if they do employ labour, actually perform part of the work themselves. A worker who is the husband or wife of his or her employer is not a worker for the purposes of the Act, except for the provisions enabling employers to take out voluntary insurance cover in respect of certain classes of persons as if they were workers covered by the Act.

“Employer,” for the purposes of the Act, means a person (which includes a corporation sole and a body of persons incorporated or not) employing any worker or workers, and includes the representative of a deceased employer. The term also includes the person who has contracted with the various classes of contractors deemed to be “workers” under the Act (share farmers, hire-drivers, commission agents, and contractors in hazardous occupations as mentioned in the previous paragraph), and the Crown (with certain minor exceptions).

The worker is entitled to compensation from his employer where he suffers personal injury by accident arising out of and in the course of the employment, and this is so whether or not the employment is for the purposes of any trade or business carried on by the employer and whether or not the employment is of a casual nature. Even if the worker is working under an illegal contract of service at the time of an accident arising out of and in the course of employment, he is entitled to compensation if the illegality consists in evasion of a statutory minimum age provision, of if the Judge, Magistrate, or other person dealing with the matter decides, having regard to all the circumstances, to treat the contract as valid. No compensation is payable in respect of any accident which is attributable to the serious and wilful misconduct of the worker injured, unless the injury results in death or serious or permanent disablement. No compensation is payable in respect of the death of a worker following on, or incapacity resulting from or aggravated by, unreasonable refusal to submit to medical or surgical treatment. Certain accidents are deemed to arise out of and in the course of employment, namely:

  1. Accidents to apprentices attending compulsory classes at technical schools:

  2. Accidents to workers acting in breach of any Act, regulations, or orders affecting their employment or acting without instructions from the employer (provided that the worker would have been entitled to compensation had there been no breach of Act, etc.):

  3. Accidents to workers travelling to or from work by transport provided by the employer primarily for conveyance of the workers, authorized by him, or arranged with the workers or their union, the employer meeting the whole or part of the cost:

  4. Accidents to workers during meal or rest times, happening on premises occupied by the employer, on premises to which the workers have by virtue of their employment the right of access, or on premises where the workers are entitled to be by authorization of the employer provided that in each case the accident is of a type that would entitle the worker to compensation had it happened at his work-place.

Diseases are deemed to be personal injuries by accident if they are due to the nature of any employment in which the worker was employed during a prescribed period before the date of commencement of the incapacity. In the case of diseases due to exposure to radio-activity the prescribed period is five years, and two years in all other cases. If the worker contracts any disease in respect of which he would be entitled to a miner's benefit under the Social Security Act he is not entitled to receive any compensation under the Workers' Compensation Act while receiving such benefit. Nor can a benefit be paid for any period during which the worker is receiving compensation, and no lump-sum compensation is to be paid for any incapacity caused by such diseases.

The present Act repeats in an amended form a provision introduced in 1943 whereby compensation was declared not payable for any period for which wages payable pursuant to any statutory obligation are paid. It is now made clear that this provision does not apply in respect of paid holidays. In this case compensation will be payable in addition to the holiday pay.

In assessing compensation, account is not to be taken of any money accruing to the claimant under any insurance policy taken out by anyone not the employer, nor, in the case of a partial dependant of a deceased worker, of any gain to the estate or the dependant, nor of any money payable by or to a friendly society or other organization.

The Act generally applies only to accidents happening in New Zealand, but also applies to accidents on New Zealand ships and aircraft and to accidents to seamen or airmen employed in New Zealand ships or aircraft.

As regards the fixing of rates of compensation, ‘the principle introduced in the Workers’ Compensation Amendment Act 1953 of having the rates fixed by Order in Council has been made universal in the 1956 Act. All the maximum rates, whether for weekly payments of the various allowances, such as dependants' allowances and medical expenses, are now to be so fixed. The Act also adopts the method of having the various maximum total payments of compensation for death or incapacity expressed in terms of the current maximum weekly payment, so that any variation in the latter automatically varies the maxima for total payments. Compensation rates at present (by virtue of the Workers' Compensation Order 1957) are as follows:

  1. In case of death:

    1. Where the worker leaves total dependants, a sum equal to the aggregate of the prescribed maximum weekly payments for 274 weeks (£2,589); or

    2. Where the worker leaves partial dependants only, a sum reasonable and proportionate to the injury to these dependants, but not exceeding the sum specified in (a).

    Compensation received prior to death by the injured person in respect of the accident which causes his death is only deducted from the above amounts, to arrive at the amounts payable to dependants, to the extent that such prior compensation exceeds the aggregate of the prescribed maximum weekly payments for 39 weeks (£369).

  2. In the case of injury:

    1. During total incapacity, weekly payments equal to 80 per cent of the worker's weekly earnings (maximum £9 9s. per week, minimum £2 7s.):

    2. During partial incapacity, weekly payments equal to 80 per cent of the difference between the worker's pre-accident weekly earnings and the weekly amount he is earning or able to earn in suitable employment or business after the accident.

Weekly payments are payable for a maximum of six years. They are payable for all periods of incapacity, the former exclusion of periods of incapacity lasting less than three days being removed by the Workers' Compensation Amendment Act (No. 2) 1951. The worker's weekly earnings are deemed to be his ordinary weekly earnings (exclusive of overtime) at the time of the accident, increased or reduced during his incapacity according to increases or decreases in ordinary rates of pay, ruling rates of pay, or minimum rates of wages. As an alternative, the worker may elect to have his weekly payments based on his average weekly earnings (exclusive of overtime) over the last twelve months or some shorter period in the employment of the same employer, increased or decreased during incapacity according to increases or decreases in the minimum wage under the Minimum Wage Act 1945. Permanently incapacitated apprentices, trainees, or workers under twenty-one years of age have their weekly earnings computed on adult or journeymen's rates.

In the case of certain injuries involving permanent disability (e.g., dismemberment or loss of use) compensation is assessed in accordance with a schedule to the Act, representing a percentage (varying according to the nature of the dismemberment) of an amount equal to the aggregate of maximum weekly payments of compensation for six years (£2,958). In assessing the compensation payable for such injuries, any period of total incapacity due to illness resulting from the injury is deducted from the six years.

In addition to the ordinary compensation, dependants' allowances are now payable under the Worker's Compensation Act 1956. Where the death of the worker results from the injury, an allowance of £50 is payable in respect of each total dependant under sixteen years of age, and a proportionate amount in respect of each proportionate dependant under sixteen. Where the worker's total incapacity results from the injury, an allowance of £1 per week is payable in respect of his wife or dependant woman in a position of parent to children under sixteen years of age maintained by the worker, provided that the combined amount of weekly payments and dependants' allowances is not to exceed 90 per cent of the worker's weekly earnings. A child over sixteen and under eighteen years of age is treated as being under sixteen if still at school or undergoing training without pay.

Various other allowances and expenses are payable in addition to the ordinary compensation. An injured worker is entitled to an allowance to £2 per week for any period during which he requires constant personal attendance and is not being maintained free of charge in a hospital. In the case of death there is payable reasonable expenses of medical and surgical attendance and of the funeral up to £100. In the case of incapacity there is payable reasonable expenses of medical and surgical attendance up to a maximum:

  1. In respect of the total sum, £50;

  2. In respect of each occasion of attendance, 12s. 6d. (with certain variations in the case of specialist services, X-ray diagnostic services, and physiotherapeutic services).

Where as a result of the injury to a worker an artificial limb or aid is necessary, the employer must pay the reasonable cost of the artificial limb or aid, and the reasonable cost of keeping it in repair for three years up to a maximum of £25. Where, as a result of accident arising out of and in the course of employment, the worker suffers damage to teeth, an artificial limb or aid, clothing or spectacles he is wearing (in this case the injury suffered must be one for which compensation is payable), the employer must pay for the reasonable cost of repair or replacement to a maximum of £50. Where the worker needs to be removed to a doctor or hospital after the accident, the employer must pay the costs of removal. Where a worker requires medical treatment in another town or at a place more than five miles from his residence, the employer must pay the expenses of transport and meals or lodging up to a maximum of £50.

Weekly payments of compensation may not be discontinued or diminished except in the following cases:

  1. Where the weekly payment is in respect of total incapacity and the worker has actually returned to work;

  2. By agreement with the worker;

  3. By leave of the Compensation Court upon payment of a lump sum in lieu of weekly payments;

  4. By leave of the Compensation Court or Magistrate's Court where a doctor certifies that the worker has wholly or partially recovered or that any incapacity is not due in whole or part to the accident. The Court will not grant such leave in the case of partial recovery unless the worker is working in some suitable employment or business, or some suitable employment has been provided by his employer;

  5. By judgment or order of a Court of competent jurisdiction;

  6. After the expiration of the maximum period of six years;

  7. Where the weekly payment is in respect of total incapacity and the worker's doctor has certified he is fit to resume work and the worker has not done so. If in fact the Compensation Court is satisfied that the worker was not fit to resume work, it shall declare that the ending of payments was unlawful. The additional amount to be paid by way of penalty is in the discretion of the Court.

If the employer wrongfully terminates or diminishes weekly compensation payments, he is liable to pay double compensation to the worker.

Proceedings under the Act were formerly taken in the Court of Arbitration, but regulations issued in 1940 established a separate Court, known as the Compensation Court, for the hearing of workers' compensation cases. The Court was re-established without change on a statutory basis by the Workers' Compensation Amendment Act 1952. The Court consists of a Judge, and there is provision in the Act for the appointment of a Registrar for each industrial district under the Industrial Conciliation and Arbitration Act 1954. Procedure is determined by regulations—the Workers' Compensation Rules. No appeal lies to any other Court from any order made by the Compensation Court, nor may any such order be removed into another Court to be quashed or varied except upon the ground of want or excess of jurisdiction. All proceedings for the recovery of compensation and the determination of any questions under the Act are, with certain exceptions, taken in the Compensation Court and not otherwise. Rights of indemnity conferred by the Act are enforceable in the Supreme Court or some other Court of competent jurisdiction, and not (except with the consent of the parties) in the Compensation Court. Where the parties agree or the amount claimed does not exceed £50, proceedings for the recovery of compensation in respect of any injury which has not caused the death of a worker may be taken in the Magistrate's Court. Medical, funeral, and surgical expenses and other allowances of a similar nature may be recovered in the Magistrate's Court equally with the Compensation Court.

Proceedings under the Act for the recovery of compensation are not maintainable unless written notice of the accident has been given to the employer as soon as practicable after its happening. Action for recovery must also be commenced within twelve months after the date of the accident or death, or date of the last payment of compensation or signing of admission of liability. The Court has power to excuse failure to give notice or to commence action within the limited time if the employer has not been prejudiced, or the failure was due to mistake, absence from New Zealand, or other reasonable cause.

As regards apportionment of compensation payable in respect of the death of a worker, the Workers' Compensation Amendment Act 1952 enacted new provisions in line with the corresponding provisions of the consolidated Deaths by Accident Compensation Act 1952. The provisions are substantially repeated in the present Act. Compensation is apportioned by the Compensation Court, and is to be paid to the dependants entitled, but where the dependant is an infant or of unsound mind or the Court so orders, the amount is to be held on trust subject to the directions of the Court. The Court may order that such amount be held on trust as a class fund to be applied for the benefit of the persons concerned, at the discretion of the trustee subject to directions from the Court. These provisions of the Act relating to apportionment in the case of death are applied to cases of incapacity where compensation is payable in the form of a lump sum and the injured worker is an infant or of unsound mind, or the Court orders that the whole or part of the lump sum be held on trust for the worker. In the case of an infant worker, the application of the provisions is subject to there being no settlement between the parties in writing approved by a Magistrate's Court, in which case the Magistrate may order that the compensation be paid to the infant or held on trust under the apportionment provisions of the Act.

With certain exceptions it is compulsory for all employers to insure against their liability to pay compensation or damages in respect of injuries to workers. By the Workers' Compensation Amendment Act 1947, workers' compensation insurance, or, as it is known, employers' liability insurance, became, in general, a monopoly of a branch of the State Fire Insurance Office known as the Government Accident Insurance Office, but the 1950 Amendment Act contained provisions restoring the right of insurance companies to undertake this insurance, and these provisions have been continued in the present Act. Insurance is compulsory except where the employer is exempted by the Secretary of Labour who has power to grant exemption where the employer has adequate financial resources, or is a Commonwealth shipping company indemnified by a United Kingdom mutual protecting club or is employing workers domiciled outside New Zealand and adequately protected by compensation rights and insurance enforceable in the country of their domicile or in the country where they were engaged. The National Airways Corporation, the Linen Flax Corporation, and Education Boards and other school authorities are not required to insure their workers. The Secretary of Labour may grant exemption to the trustees of the General Trust Fund established under the New Zealand Rules of Racing. The insurance provisions of the Act do not apply with respect to overseas workers temporarily employed in New Zealand by overseas employers for a period of six months or less.

Insurance is effected by the delivery of wages statements by employers to authorized insurers (insurance companies who have notified the Secretary of Labour that they have made the necessary deposit under the Insurance Companies Deposits Act 1953). Maximum rates of premiums for the different categories of workers are fixed by the Employers' Liability Insurance Regulations. The employer is required to give prompt notification of details of accidents causing death or personal injury to workers, to his insurer, and an Inspector of Factories.

The Workers' Compensation Board, consisting of the State Fire Insurance General Manager and one other Government representative, two representatives of the Council of Fire and Accident Underwriters' Associations of New Zealand, one employers' representative, and one workers' representative, was originally established by the Workers' Compensation Amendment Act 1950. Its functions include recommending the maximum rates of premiums and rates of commission for insurance agents, administering the Workers' Compensation Account used in carrying out the Board's functions, undertaking and assisting accident prevention, research into causes, incidence and prevention of accidents, and the care and assistance of injured workers. Penal rates up to 100 per cent in excess of the prescribed maximum rates may be imposed by the Board in cases where the risks to workers are unusually great. To finance the activities of the Board, levies are collected from authorized insurers and exempted employers. The Board also acts as the insurer of employers who have neglected to insure their workers with an authorized insurer, so that workers are protected in all cases. The Board may collect from delinquent employers moneys it pays out as insurer.

Various offences are created under the legislation. They include refusing or failing to give or deliver any statement or information as required by the Act, or reasonably required by the insurer or the Board, wilfully or negligently making any false return or giving any false or misleading information concerning liability to any premiums or in relation to any claim, and making any false or otherwise misleading statements to obtain benefits or avoid obligations under the Act. In the case of intentional evasion of liability to pay premiums there is the additional liability to a penal charge up to treble the deficient premium.

Damages received in respect of an accident may be set off against compensation recoverable in respect of the same accident, or vice versa. Where judgment has been recovered for compensation, no damages are thereafter recoverable unless the Court is satisfied that the judgment has not been satisfied though all reasonable steps have been taken to obtain satisfaction. The same rule applies with respect to compensation, where judgment has been recovered for damages.

Where the injury for which compensation is payable was caused under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof, the person by whom the compensation is paid or payable is entitled to indemnification by the person so liable.

Certain other statutes are relevant to the question of workers' compensation. By the Law Reform Act 1936, all causes of action (with certain exceptions) subsisting against or vested in a person who dies survive against or for the benefit of his estate. The Workers' Compensation Act makes it clear that this applies to rights to recover compensation. The Law Reform Act also provides that the amount of compensation or damages payable to a worker shall be a charge on the insurance moneys payable in respect of liability to compensation or damages, so that the injured worker is protected in the event of an employer becoming bankrupt, or in the case of a corporation, being wound up. This Act also provides for contribution between joint tort-feasors. completely abolished all remnants of the common law defence of common employment, whereby an injured worker could not recover damages from his employer where the injury was caused by the negligence of a fellow-worker. The defence had been previously abrogated in the Workers' Compensation Act 1922, but subject to the condition that the injured worker could not recover more than £1,000 damages. The Contributory Negligence Act 1947 removed the common law disability on a plaintiff, guilty of contributory negligence, to sue for damages, and provided that in such case the damages recoverable should be reduced to such extent as the Court thought just, having regard to the plaintiff's share in the responsibility for the damage. Section 23 of the Tuberculosis Act 1948 creates a presumption in favour of a person who contracts tuberculosis while employed on nursing duties or the like, that the disease was contracted whilst so employed. By the Deaths by Accident Compensation Act 1952, when the death of any person is caused by another's negligence the executor or administrator of the deceased person's estate, or certain relatives, have the right, which did not exist at common law, to bring an action for damages. Section 16 of the Finance Act (No. 2) 1952, amending section 29 of the Social Security Act 1938, provides that in any proceedings under the Deaths by Accident Compensation Act or the Workers' Compensation Act for damages or compensation in respect of the death of any person, no account is to be taken in assessing the damages or compensation payable by or to any person of any family benefit under the Social Security Act. By provisions of the Companies Act 1955 and the Bankruptcy Act 1956 workers' compensation is given equal priority with wages in bankruptcy and the winding up of a company.

EMPLOYMENT AND UNEMPLOYMENT LEGISLATION.—Prior to the depression period of the early “thirties,” there was little permanent effective legislation to cope with the problem of unemployment. In 1895 a Servants Registry Act provided for the inspection of servants registry offices and regulated the fees charged therein. The Labour Department was founded in 1891 and attempted, particularly through its Employment Bureaux, to cope with the problem. In 1928 a Committee was set up to examine this matter, which was becoming increasingly more serious; and, following on the presentation of its report, an Unemployment Act was placed on the statute-book during the 1930 session of Parliament.

An Unemployment Board was established to assist in the administration of the Act. The main functions of the Board as set out in the Act were: (1) to make arrangements with employers or prospective employers for the employment of unemployed persons; (2) to take such steps in accordance with the provisions of the Act as it considered necessary to promote the growth of primary and secondary industries in New Zealand, so that an increasing number of workers would be required for the efficient carrying on of such industries; (3) to make recommendations for the payment of sustenance allowances out of the Unemployment Fund.

The Act of 1930 authorized the payment of sustenance allowances out of the Unemployment Fund, but the activities of the Board were directed towards the placing of men in employment in preference to the payment of sustenance, the funds being mainly devoted to the subsidizing (or refunding in full) of wages of men for whom work was provided under various relief schemes. A 1934 amendment to the Act, inter alia, repealed a subsection of the original Act, which, in effect, had limited to a maximum of thirteen weeks the unbroken period during which sustenance might be paid to any one individual.

The Immigration Restriction Amendment Act of 1931, which empowered the Governor-General to make regulations restricting the number of immigrants entering the country, aimed, inter alia, at preventing an unwanted inflow increasing the number of those unemployed. Its operation was extended in 1933 and 1935, and it expired on 31 December 1936.

The Employment Promotion Act 1936 replaced and repealed the Unemployment Act 1930 and other legislation relating to unemployment. The Unemployment Board was abolished, the new Act being administered by the Department of Labour. An Employment Promotion Fund was established (deemed to be the same fund as the Unemployment Fund established under the Unemployment Act 1930), the revenue of the fund being derived from the employment tax, fees and penalties under the Act, and any other moneys appropriated by Parliament for the purpose. The main purposes for which the moneys in the fund were to be utilized were defined as follows:—

  1. The development of primary and secondary industries in New Zealand, and the establishment of new industries, so that an increasing number of workers would be required for the efficient carrying on of such industries:

  2. The making of arrangements with employers or prospective employers for the employment of persons who were out of employment:

  3. The assistance, in accordance with the provisions of the Act, of persons who were out of employment or were otherwise in need of assistance.

By the Social Security Act 1938 provision was made for unemployment benefits, superseding the former sustenance payments, to become available as from 1 April 1939. The Employment Promotion Fund was abolished as from 30 September 1939, and the moneys transferred to the Social Security Fund. The amounts of, and qualifications for, benefits will be found on page 210 of this Year-Book.

Although the Employment Promotion Act was repealed by the Social Security Act, the functions of the Employment Division of the Department of Labour continued to include the promotion of work and industry for the absorption of surplus labour, and the placing in close contact of employers with employees through the medium of the State Placement Service. The Employment Division was placed under the control of the National Service Department (a wartime creation), but the Employment Act 1945 created out of the National Service Department a Department of State known as the National Employment Service, the principal function of which was broadly defined as the “promotion and maintenance of full employment at all times.” In 1947 the National Employment Service and the Department of Labour were amalgamated to form the Department of Labour and Employment. The Labour Department Act 1954 consolidated earlier legislation and also incorporated the Employment Act 1945, which was accordingly repealed. The 1954 Act provides in more modern form for the constitution of the Department of Labour, including the functions formerly exercised by the National Employment Service, which is merged with the Department of Labour and ceases to exist as a separate Department. Further reference in regard to its employment activities is included in Section 39, Employment and Unemployment.

38 G—HOUSING AND TENANCY LEGISLATION

HOUSING LEGISLATION.—The first legal provision in connection with housing was contained in the Factories Act of 1894, which gave Inspectors of Factories power to inspect accommodation provided for shearers and to demand improvements where necessary. More effective powers in this connection were contained in the Shearers' Accommodation Act 1898. The Agricultural Labourers' Accommodation Act of 1908 extended this legislation and provided for the inspection of housing of agricultural labourers and flaxmill workers. In 1912 the sawmill worker was also included. The Agricultural Workers Act 1936, and regulations issued thereunder, laid down detailed specifications as to what constituted satisfactory accommodation, and superseded the Act of 1908. Statutory regulations issued in 1937 prescribed further details, and stated that the regulations were to apply to the accommodation of persons employed in agricultural, pastoral, horticultural, flaxmilling, and sawmilling work.

Part I of the Family Protection Act 1908, which consolidated the Family Homes Protection Act 1895 and enabled any owner of freehold or leasehold land on which he resided and had his home to settle such land, not exceeding with all improvements £1,500 in value, as a family home, has fallen out of use. It now affects only a few homes which have been registered under its provisions and have not reached the period for distribution prescribed by the Act. Settlements of family homes are now made under the general law of trusts, or under the Joint Family Homes Act 1950. The Joint Family Homes Act 1950, as amended in 1951, 1952, and 1955 aims at promoting a sense of dual ownership under which the family home will belong not to the husband or wife separately, but to both of them jointly so as to pass to the survivor on the death of one of them. The Act makes it possible for a husband and his wife, or either of them, being solvent and owning land, whether freehold or leasehold, the capital value of which does not exceed £5,000 (this limit was removed by the 1955 amendment), to settle the land on the husband and wife as a joint family home, provided they actually reside and have their home in a dwellinghouse erected on the land, and use it exclusively or principally as a home for them and the members of their household. No one can register more than one home as a family home. Registration is cancelled when the land is sold or when both husband and wife have died or have ceased permanently to reside and have their home on the land. The benefits of registration are considerable. Once the home is registered the husband and wife have equal rights in connection with ownership and possession while they are both living. On the death of either of them the joint family home becomes the property of the survivor. To encourage the adoption of the scheme provision is made that the settled home shall be protected against the claims of creditors to the extent of £3,000 (increased from £2,000 by the 1955 amendment), and shall to the same extent not come into the calculation made for the purpose of the assessment of death and succession duties when it passes on the death of one joint tenant to the survivor. The settled home is also protected from gift duty and stamp duty on the creation of the settlement. Data relating to the number of joint family homes registered in recent years are given on page 451 of this issue.

The advances to settlers legislation of 1894 provided for State advances on mortgage to the owners of farming lands, and in 1899 this provision was extended to urban lands. Many of these advances would, no doubt, be used for building purposes, but no direct effort in the matter of providing housing accommodation was made until 1905. In that year a Workers' Dwelling Act was passed authorizing the Minister of Labour to erect dwellings to be let to bona fide workers at a rental of 5 per cent per annum of the capital value of such dwellings; and, in the following year, a system of advances to workers for the purpose of acquiring homes was instituted. By an amendment passed in 1922 workers could borrow for this purpose up to 95 per cent of the value of their security. To cope with the demobilization after the First World War the Housing Act of 1919 provided for the erection of dwellings not only by the State, but also by local authorities, employers, associations of public servants, and public-utility societies, the State advancing the money. The administration of this Act was later transferred to the State Advances Corporation. The Housing Act 1955 consolidated and amended the 1919 Act and subsequent amendments. Part I of the 1955 Act relates to State houses, the acquisition of land therefor, the general programmes of development, the adjustment of State house rentals, and the sale, lease, or tenancy of State housing land. Local authorities are also empowered to obtain special loans from the State Advances Corporation to erect workers' dwellings for letting, and are granted certain concessions in carrying out this activity by the Municipal Corporations Act 1954. They are also empowered to guarantee loans for the erection of flats, subject to the consent of the Local Government Loans Board. There is much incidental legislation, as in the Coal Mines Act and the Government Railways Act, where provision is made for the suitable housing of employees.

The Municipal Corporations Act 1954 contains, inter alia, provisions for granting loans for housing purposes up to a limit of £2,222 (see page 669).

Housing regulations are contained in the Municipal Corporations Act, where definite measurements are laid down to prevent overcrowding, and provision is made for the appointment of Inspectors to reduce fire risk and other dangers. Similarly the Health Act of 1920, which replaced the Public Health Act of 1908, provides for medical inspection and for sanitation minima; an owner may be ordered to cleanse or demolish his building, or to close it till certain alterations are made. The Town Planning Acts of 1926 and 1929, consolidated and amended by the Town and Country Planning Act 1953, aimed to develop and reconstruct areas in such a way as to promote their healthfulness and convenience.

In 1935, as a preliminary to measures for remedying the existing position in regard to housing, a Housing Survey Act was passed, instructing local authorities to ascertain as far as possible the extent to which the existing housing accommodation in their respective districts fell short of reasonable requirements. At the same time a Maori Housing At empowered the Board of Maori Affairs to make advances to Maoris for the purchase, erection, or repair of dwellings. A section of the Maori Housing Amendment Act 1938 established a special fund to provide houses for those Maoris unable to furnish the security or to make the payments which the Board would ordinarily require. In addition to the provision of housing under the Maori Housing Act, dwellings for Maoris are provided in the ordinary course of the Maori land development schemes. Particulars of the numbers of houses erected, etc., are included in Section 25.

Further provision with respect to the improvement of housing conditions is contained in the Housing Improvement Act 1945. The Act authorizes the making of regulations prescribing the standard of fitness of houses, and gives local authorities certain powers of enforcing the regulations or of assisting owners to comply with them. When a notice is given under the Act by a local authority requiring the owner to demolish a house which cannot be made to comply with the regulations, the Act makes it clear that alternative accommodation must be provided only for the persons residing in the house at the time of the service of the notice, and it is an offence for any other persons to commence to occupy the house after the notice has been served. In default of action by the local authority the Minister of Works is given power to act, or he may act under agreement with the local authority. Provision is also made for regulations requiring local authorities to keep a register of houses and to acquire land where a house is unfit for habitation or an area is below the minimum standard. The Act also deals with the reclamation of overcrowded areas, and gives power to local authorities with regard to the proclamation of reclamation areas and the resubdivision and improvement of such areas.

The provision of housing facilities for workers has been and is a very important part of the policy of the Government. Apart from the facilities for the building of homes provided for in the State Advances Corporation Act (see Section 33B), a comprehensive housing plan was launched in March 1937 whereby the legislative machinery provided in the Housing Act 1919 was used to build homes to be let to workers at a reasonable rental. Provision is contained in the Finance Act (No. 3) 1943 for the tenant of a State rental house to make arrangements whereby, in consideration of special payments, he becomes entitled to remain the occupier of the dwelling rent free or at a reduced rental on attaining a specified age. The arrangement may also permit his widow to become the occupier on the same terms, or entitle him to nominate any of his children to become the tenant after his death. Tenants of State rental houses are also being given the opportunity to buy the houses they occupy, and the legislative provision in this connection is now contained in the Housing Act 1955. Subject to any direction of the Minister of Finance, such houses may be sold for cash or under agreement for sale in such manner and on such terms as the Board of Management of the State Advances Corporation may decide. Particulars of the main terms of sale are given on page 903 of this volume. An account of the housing programme under the Housing Act, and its progress to date, is included in Section 25—Building, Construction, and Housing. Further provision of housing facilities in rural localities is contained in the Rural Housing Act 1939, which empowers local authorities to advance money to a farmer to enable him to provide a dwelling for his own use or for the use of any farm worker principally employed by him. The State Advances Corporation Amendment Act 1953 gave effect to the mortgage guarantee scheme, whereby the Corporation may guarantee to financial institutions repayment by the borrower of the difference between the normal loan and 90 per cent of the valuation.

The Local Authorities (Temporary Housing) Emergency Regulations 1944 gave power to local authorities to establish transit housing centres for the purpose of providing temporary accommodation for persons who are awaiting the provision of permanent housing accommodation.

TENANCY AND RENTS LEGISLATION.—Certain sections of the War Legislation Amendment Act of 1916 dealt with house rents, the maximum rent being fixed at 8 per cent per annum of the capital value of the dwelling. Material alterations in the law were made by the Rent Restriction Act 1926. Rent restriction provisions were kept in force by annual continuing statutes up to 31 October 1936, when the earlier legislation was superseded by the Fair Rents Act 1936.

The Distress and Replevin Amendment Act 1950, repealing the 1936 amendment, protects all personal and family clothing, furniture, household effects, and tools or implements of trade to the value of £100 from seizure under a distress order for rent. The pre-existing legislation on this subject did not protect such effects from seizure.

Provision for statutory reductions in rent and interest payments was contained in the National Expenditure Adjustment Act of 1932, continued by the Finance Act 1934, and made permanent in 1936; while Courts were given power to reduce rents and mortgage interest by the mortgage-relief legislation of the depression period, consolidated in the Mortgagors and Tenants Relief Act 1932. The Fair Rents Act 1936, which replaced the various measures referred to above, is briefly described in the following paragraphs.

The Fair Rents Act 1936 made temporary provision for the restriction of increases in the rent of certain classes of dwellinghouses, and for the determination of fair rents in respect of such houses. The Act applied, generally speaking, to dwellings actually let at the time the Act was passed (June 1936) or let at any time between 27 November 1935 and the date of the passing of the Act. It did not apply to other dwellings or to any dwelling let at a rent exceeding £156 per annum. The rent of a dwelling coming within the scope of the Act could not be raised beyond the “basic rent” which was defined as the rent payable on 1 May 1936; or, in the case of dwellings not let on that date, the rent last payable before that date. On application of either the landlord or the tenant a Stipendiary Magistrate was empowered to declare a fair rent in respect of any dwelling to which the Act applied, having regard to various specified conditions—e.g., the relative circumstances of landlord and tenant. The fair rent was not to exceed the basic rent or the rent (if any) payable on 27 November 1935. The grounds for the recovery of possession were limited by the Act, while restrictions were imposed on the right of the landlord to distrain. The Act was to remain in force until 30 September 1937, but its operation was extended from time to time, and in fact its provisions remained in force until superseded by those of the Tenancy Act 1948.

The 1936 Act did not apply to flats and apartment-houses, but an amendment passed in 1939 extended its provisions to cover buildings constructed for letting as more than two separate flats or apartments, all flats or apartments not originally constructed for letting separately, and flats and apartments where parts of premises were shared. The 1939 amendment also made provision for the making of regulations for the purpose of regulating charges in respect of residential accommodation with attendance or services.

The Fair Rents Amendment Act 1942 extended the application of the principal Act to all promises let as dwellinghouses, including those where part only was used as such. The “basic rent” was defined as follows:

  1. With reference to a dwellinghouse let as such on 1 September 1942, the rent payable on that date:

  2. With reference to a dwellinghouse that was not let on that date, the rent that was last payable.

The Act made it an offence to refuse to let a dwelling on the grounds that the applicant had children. It also provided certain safeguards in respect of members of the Armed Forces in their capacity as tenants or landlords.

The application of the Fair Rents Act was further extended by section 27 of the Statutes Amendment Act 1946 to include premises occupied for residential purposes by two or more persons severally. In such cases the total of the several amounts payable was deemed to be the rent of the premises. Section 28 of the same Act also extended the provision of the Fair Rents Act to cover premises where meals or food were provided by the landlord, unless the value of the meals or food formed a substantial portion of the rent.

As previously stated, the Fair Rents Act applied only to premises let as dwellinghouses, but the Economic Stabilization Emergency Regulations 1942 provided for the stabilization of all other rents, whether on account of land or buildings, other than land used for agricultural purposes. The basic rent under these regulations had the same meaning as in the case of the Fair Rents Act, and rents that might be charged were restricted accordingly. On the application of the landlord or tenant of any property the Court might make an order determining the fair rent of that property.

The basic rent or fair rent (if any) of any land established under the Fair Rents Act or the Economic Stabilization Emergency Regulations was taken into account in determining the basic rent of such land for the purposes of the Servicemen's Settlement and Land Sales Act 1943.

The Fair Rents Amendment Act 1947 included the following provisions: The basic rent for a dwellinghouse was not to be affected by variations in tenancies as to furniture, etc., or by subletting; tenancy registers were to be kept by the landlord; no fine or premium was to be chargeable for tenancy or renewal or transfer; provision was made for recovery of possession of a dwellinghouse for a serviceman who vacated it to become a serviceman; and the absolute protection of a serviceman tenant was also modified.

A further part of the 1947 amendment was concerned with the letting of unoccupied houses. This provision was however omitted from the Tenancy Act 1955.

The Tenancy Act 1948 repealed the considerable body of the Fair Rents legislation passed during the period 1936–47. In effect, however, it consolidated the former legislation, including Part III of the Economic Stabilization Emergency Regulations 1942, while at the same time it introduced several important amendments. The Tenancy Act 1955, however, consolidated and amended the 1948 Act and its later amendments.

Up to the passing of the Tenancy Act 1955, rent for dwellinghouses erected prior to 1942 was based on their value as at 1942 increased by 15 per cent. The 1955 Act provides for a further increase of 20 per cent in the present basis of valuation (i.e., a rent based on a value exceeding the 1953 fair rent value by 20 per cent and by the cost of improvements made after 1 September 1942 and including an allowance to cover outgoings). For dwellinghouses built since 1942, or purchased after February 1950 and let after December 1951, and after the date of purchase, the rent may be based on the capital cost to the landlord when built or purchased, increased by the cost of improvements made and an allowance to cover outgoings, or on the same basis as dwellings erected prior to 1942, whichever is the greater.

A landlord or a tenant is enabled to apply to the Court to fix the fair rent, or the parties may agree on a rent and submit this for the approval of a Rents Officer.

A new feature enables a landlord or a tenant to apply to a Rents Officer to assess the fair rent. Notice of his assessment is given to both parties, stating that it will become the fair rent as if fixed by the Court unless application is made within twenty-one days by either party to the Court to fix the fair rent. This procedure enables either party to have the fair rent assessed without cost.

The rent of commercial properties may be based on the present-day values, the 1955 Act not altering the law in this respect.

The provisions as to rent restriction of tenancies (inclusive of subtenancies) relates to dwellinghouses and to all leased properties, except that the definition of the term “property” excludes farm lands and licensed hotels and camp sites (let for periods not exceeding six weeks). The definition of the term “rent” includes money's worth. Rents Officers exercise the functions of Inspectors of Factories under the Fair Rents Act 1936, and of authorised persons under the earlier regulations. The Court for fixing the fair rent is the Magistrate's Court, with a right of appeal to the Supreme Court where the fair rent exceeds an annual rental of £525.

The following exemptions from the operation of the Act are contained in the Tenancy Act 1955: all new dwellinghouses and properties erected after the date of commencement of the Act (21 October 1955), as well as the existing exemptions of blocks of flats and buildings converted into self-contained flats after 12 November 1953; new tenancies of dwellinghouses not let during the three months prior to the date of commencement of the Act; dwellinghouses let for periods of six weeks or less; and properties let after October 1955 for terms of not less than four years.

A section extends to all premises the provision which prevents the basic rent from being affected by including furniture in the tenancy. As far as a “fair rent” is concerned, the Court can fix the fair rent payable by the landlord where he is himself a tenant. A fair rent fixed for a dwellinghouse or property continues in force until a subsequent order takes effect.

A section relating to fines, premiums, etc., prohibits a landlord or outgoing tenant from receiving from a new tenant any consideration other than—

  1. In the case of a dwellinghouse, the rent:

  2. In the case of either a dwellinghouse or property, the price of any chattels not exceeding the fair selling value, or the replacement cost of stock in trade.

The restrictions on payment for goodwill on the transfer of a tenancy were abolished by the 1950 amendment, which rendered it unnecessary to have any such payment approved by the Land Valuation Court.

The time within which excess payments of rents may be recovered from the landlord by the tenant or deducted from current rent is twelve months.

Exemption from the restrictions on recovery of possession from a tenant is provided for where, in the case of the letting of any dwellinghouse or property, the landlord and the tenant by agreement in writing dated not earlier than 1 March 1950, and incorporating the terms and conditions of the tenancy, have agreed that Part IV and sections 45, 46, and 47 of the Tenancy Act or the corresponding portions of the former 1948 Act shall not apply. The agreement has to be approved in writing by a Rents Officer, and a copy of the agreement deposited with the latter before the date of commencement of the tenancy. In the following cases also those provisions containing the restrictions on recovery of possession cease to apply—namely, a dwellinghouse let to a worker by his employer; a dwellinghouse or urban property let on behalf of a mental patient; where a tenant has sublet the whole of the dwellinghouse, provided that the subletting is not due to the temporary absence of the tenant for not more than a year; and to a tenancy of any urban property transferred either directly or by subtenancies, after the expiration of six months from the date of the transfer of the tenancy unless the landlord consents or the Court orders that those provisions shall continue. The Act also includes in the list of exemptions leases of properties for more than five years.

The Act provides for recovery of possession on the following grounds:

  • (a) Failure to pay rent or to comply with other conditions of the tenancy:

  • (b) Failure to take reasonable care of premises or the tenant has committed waste:

  • (c) Tenant is guilty of conduct that is a nuisance or annoyance to adjoining or neighbouring occupiers. Where application on this ground has not been successful, the Court may order the cessation of restrictions after six months, unless the landlord's conduct has contributed to the circumstances complained of. The order may be revoked within five months on the ground that the circumstances had been improved:

  • (d) and (e) For a dwelling or a property, that the premises are reasonably required by the landlord or joint landlords for his or their own occupation:

  • (f) and (g) For a dwelling or a property, that the landlord is a trustee, and the premises are required by the beneficiaries under the trust for their own occupation:

  • (h) and (i) For a dwelling or a property, that an agreement for its sale has been made and that premises are required by the purchaser for his occupation:

  • (j) For a dwelling forming part of the same building as the one occupied by the landlord, that the premises are reasonably required for the aged parents of the landlord or, where the landlord is an aged parent, for the son or daughter to live with the landlord:

  • (k) For a dwelling, that the premises are required for occupation by any person in (or intended to be in) the regular employment of the landlord:

  • (l) The tenant, by subletting the premises, or part thereof, is making a profit which, compared with the rent paid, is unreasonable:

  • (m) For a property, that possession is required only of a part of the premises in excess of the reasonable requirements of the tenant:

  • (n) For a dwelling, that the premises are not reasonably required for occupation as such by the tenant:

  • (o) That the estate or interest of the landlord in the premises will have expired or been determined not later than three months after the date of the application for the order:

  • (p) That the premises are required for demolition or reconstruction or for removal to another site:

  • (q) That the landlord is an administrator of the estate of the deceased former landlord, and the premises are required for sale for the purpose of distributing the estate:

  • (r) That suitable alternative accommodation is available for the tenant or will be available for him when the order takes effect.

Suitable alternative accommodation has to be provided or greater hardship established before orders can be made in respect of applications on grounds (d), (e), (f), (g), (k), (o), listed above. Suitable alternative accommodation is also required for grounds (h), (i), (p), or (q).

In any Court proceedings on ground (r) the onus of proving that the accommodation offered is suitable is placed on the applicant for the order. In any proceedings except on ground (r), where the Court is satisfied that any alternative accommodation is or will be available for the tenant, that accommodation shall be deemed to be suitable unless the Court is satisfied that it is inadequate for the needs of the tenant, or is of unreasonably low standard, or is for any special reason unsuitable for the tenant.

Neither alternative accommodation nor greater hardship provisions apply, although relative hardship is taken into account, for cases (i) where the landlord of a dwelling has been such for a period of three years prior to application date, or if in receipt of an age benefit and has also been a landlord for two years, (ii) where the landlord of an urban property has given one year's notice, and has been such for two years prior to the notice, although the Court may adjourn proceedings for up to six months if it considers that it is just and equitable to do so.

Relative hardship is still taken into account for the remaining grounds, with the following exceptions: The alternative accommodation, greater hardship, or relative hardship requirements do not apply where a dwelling is required by the landlord for his own occupation if (i) he is 60 years of age, or if a woman, she is 55 years, (ii) he has given six months' notice, (iii) he has been the landlord for three years immediately prior to the notice, and (iv) he did not have adequate and suitable living accommodation in premises owned by him. Relative hardship is not required to be established for applications on ground (q) listed earlier.

The Act also provides that the landlord or other person represented as requiring possession of premises for his own occupation is restricted from letting or selling the premises for a period of two years, unless an authorizing order is obtained from the Magistrate's Court.

Other conditions of the Act give the landlord of a dwellinghouse or property a right to apply for an order for the recovery of excess land for building purposes, or for sale for that purpose or for the purposes of his business, or for an order authorizing him to convert a dwellinghouse into flats, one to be let to the existing tenant with appropriate adjustment of rent payable and subject to the Act to the same extent as the old tenancy, and also make it an offence for a landlord to evict a tenant without an order of a Court or the tenant's consent; extend protection of tenancy in case of death to members of the deceased's family; preserve a tenancy for the wife or husband of the tenant in cases of separation or desertion; prescribe conditions implied in tenancies; require receipts to be given for rent payments; make it an offence for a landlord to deprive a tenant of his amenities, as by cutting off electric power, gas, or water; and deal with the case of unauthorized occupiers.

The Destitute Persons Amendment Acts 1951 and 1953 contain provisions relating to the power of a Magistrate, in making a separation or guardianship order, to vest the tenancy of a dwellinghouse in any person, either complainant or defendant, and giving the landlord the right to apply for cancellation or variation of such a vesting order.

Regulations made under the Emergency Forces Rehabilitation Act 1953, replacing earlier legislation, govern the protection against eviction granted to servicemen who serve in any of the forces raised to meet an emergency arising out of the obligation undertaken by New Zealand in the Charter of the United Nations.

Chapter 39. SECTION 39—EMPLOYMENT AND UNEMPLOYMENT

Table of Contents

PRIOR to the establishment in 1946 of the National Employment Service (now incorporated in the Department of Labour) the only comprehensive source of information on employment in New Zealand was the periodical census inquiry. After each census a volume containing statistics of industries and occupations is published, and in respect of those of 1926 and 1936 there was an additional volume on unemployment. Certain specific fields of employment—factories, public works, and local authorities—were, however, also covered by more frequent, usually annual, collections. The activities of the Department of Labour as regards employment matters and the scope of the information on employment at present available are dealt with in detail in later pages of this Section.

CENSUS STATISTICS.—Tables derived from the 1951 census showing distributions of the population by industrial divisions and major groups and by occupational status were published on pages 965–967 of the 1954 Year-Book; those from the 1956 census are not yet available.

POST-WAR DISTRIBUTION OF LABOUR FORCE.—Information is available for the years 1947–56 from the estimates of the Department of Labour showing the effects of the demobilization of the Armed Forces and of post-war developments on the industrial distribution of the labour force of the country. The table which follows shows the estimated distribution of the labour force (including Maoris), by broad industrial groups in April of each year from 1947 to 1956.

The figures have been adjusted into line with the 1951 census data.

(000)

YearIndustry GroupArmed ForcesUnemployedTotals, Labour Force
Primary IndustryManufacturing IndustryPower, Water, and Sanitary ServicesBuilding and ConstructionTransport and CommunicationDistribution and FinanceDomestic and Personal ServicesAdministration and ProfessionalTotals
Males
1947137.6131.38.648.463.175.417.548.0529.912.60.1542.6
1948137.2134.88.750.164.477.517.948.6539.27.8 547.0
1949136.4136.69.151.066.878.218.349.7546.17.10.1553.3
1950136.1139.19.453.267.579.718.350.1553.48.2 561.6
1951135.9141.29.752.866.281.418.350.8556.310.0 566.3
1952135.9142.69.856.168.982.818.251.6565.910.0 575.9
1953136.4145.110.860.568.984.118.653.1577.511.1 588.6
1954137.0149.410.864.869.086.819.254.6591.610.90.1602.6
1955137.5152.411.067.969.088.619.255.0600.69.7 610.3
1956138.7154.711.069.170.990.819.157.6611.98.90.1620.9
Females
194712.240.30.60.96.332.725.841.9160.70.5 161.2
194812.241.00.60.96.933.426.042.6163.60.4 164.0
194912.241.40.60.97.033.926.443.2165.60.5 166.1
195012.243.10.70.97.334.826.344.3169.60.7 170.3
195112.244.40.71.07.636.425.845.2173.30.8 174.1
195212.243.70.71.08.137.525.546.4175.10.9 176.0
195312.342.10.71.18.338.326.348.4177.51.0 178.5
195412.244.80.81.28.440.126.550.2184.20.9 185.1
195512.846.40.81.38.542.226.551.6190.10.8 190.9
195612.845.40.81.39.143.826.953.3193.40.7 194.1
Total
1947149.8171.69.249.369.4108.143.389.9690.613.10.1703.8
1948149.4175.89.351.071.3110.943.991.2702.88.2 711.0
1949148.6178.09.751.973.8112.144.792.9711.77.60.1719.4
1950148.3182.210.154.174.8114.544.694.4723.08.9 731.9
1951148.1185.610.453.873.8117.844.196.0729.610.8 740.4
1952148.1186.310.557.177.0120.343.798.0741.010.9 751.9
1953148.7187.211.561.677.2122.444.9101.5755.012.1 767.1
1954149.2194.211.666.077.4126.945.7104.8775.811.80.1787.7
1955150.3198.811.869.277.5130.845.7106.6790.710.5 801.2
1956151.5200.111.870.480.0134.646.0110.9805.39.60.1815.0

UNEMPLOYMENT.—Except for occasional returns relating to State unemployment relief which were presented to Parliament from time to time, practically no direct statistical evidence as to the extent of unemployment in New Zealand prior to 1892 is extant. Such information is, however, available from the census (since 1896) and from the records of the Department of Labour (since 1892). In addition, statistics of unemployment among trade-unionists were collected from trade-union secretaries by the Department of Statistics from 1925 to 1930. A table showing figures of unemployment from June 1931 to March 1939 will be found on page 854 of the 1940 Year-Book.

Census Data on Unemployment.—The great disadvantage of the Census inquiry as an indicator of the trend of unemployment is that it provides data at quinquennial intervals only up to April 1926, since when only four censuses have taken place, one on 24 March 1936, one on 25 September 1945, one on 17 April 1951, and one on 17 April 1956. The unemployment figures from the 1951 census were 7,902 males and 1,726 females; the 1956 figures are not yet available.

The following table gives relevant census data on unemployment for each census since 1896.

CensusNumber of Males UnemployedProportion Per Thousand Male Wage-earnersCensusNumber of Males UnemployedProportion Per Thousand Male Wage-earners
12 April 189614,75910017 April 192111,06139
31 March 19018,4674820 April 192610,69434
12 April 19068,1893924 March 193635,77496
2 April 19117,1523025 September 19455,82318
15 October 19165,9202617 April 19517,90219

The 1936 figure includes men on rationed relief work, but excludes men (16,222) partly unemployed but not on relief work. The 1945 figure includes ex-servicemen recently returned from overseas who had not then resumed work. At the time of the 1951 census the waterfront strike was in progress and it was estimated that approximately 15,000 workers in that and other industries were on strike. Evidently many of these were not returned as unemployed; it is likely that a number changed to other industries, while some may not have considered themselves to be unemployed.

Unemployment Benefit.—In the years immediately preceding 1939 two forms of unemployment relief were available: the provision of work for unemployed under various employment promotion schemes, and the payment of sustenance without work (refer 1942 and earlier issues of the Year-Book). Measures for the promotion of employment are still in operation, but the payment of sustenance without work was discontinued on the introduction of a system of unemployment benefits under the Social Security Act 1938. These benefits came into force on 1 April 1939, and monthly figures of the number of benefits current have been published in previous editions of this Year-Book. The number in force at the end of March 1956 was only 6, but in the second half of the year the number of benefits increased, the number in force at the end of September 1956 being 134.

Subject to the conditions set out on page 210, the unemployment benefit may be claimed as of right from the Social Security Fund, to which all workers over the age of sixteen years must contribute. Registration at a district office of the Department of Labour is a compulsory prerequisite to eligibility for the benefit. Hence it is considered that the great majority of workers becoming involuntarily unemployed would register for employment in order to validate a claim for the benefit.

Close liaison is maintained between the Social Security Department and the Department of Labour to prevent the payment of benefit where work is available. In addition to the requirement that a benefit applicant must register for work at an employment office, all unemployment beneficiaries must report once weekly at the employment office.

For the number of persons remaining enrolled with district offices of the Department of Labour as disengaged and seeking employment at the end of each calendar month, refer to the table on page 1071 (last three columns).

PROMOTION OF EMPLOYMENT.—Reference to earlier issues of the Year-Book will show the measures taken during the depression and post-depression years to relieve unemployment and in particular to promote employment. Under one of the principal schemes a maximum of 45,000 men were in receipt of part-time work in 1932 and 1933. In recent years the labour situation has been characterized by a general high level of employment and a high number of vacancies in industry. The number of notified vacancies is shown, however, by the table on page 1064 to have been reduced by 42.1 per cent between 1950 and 1956. The only employment promotion measure continuing in operation to any extent is Scheme 13, under which 82 men were employed at 31 March 1956, as compared with 93 on 31 March 1955. Most of these men are fit for light work only and are located in districts where employment opportunities are limited. Everything possible is done to place them in suitable private employment when the opportunity arises. They are allocated to local bodies and their wages are subsidized to an extent which brings their earnings up to the award rate for the type of work performed.

The operation of employment promotion schemes whenever required is a function of the Department of Labour.

Information concerning the measures in operation for the rehabilitation of ex-servicemen will be found in Section 9B.

Vocational Guidance.—Since 1938 full responsibility for the work of vocational guidance of pupils at post-primary schools, which for some years previously had been carried on almost entirely by voluntary organizations, has been taken by the Department of Education. A youth centre was established in each of the four main centres, and the work of guidance and placement was undertaken jointly by officers of the Education and National Service Departments. The Department of Education assumed full control of these youth centres (now called Vocational Guidance Centres) in 1943. At present five centres, including Lower Hutt, are in operation.

The numbers of those enrolled who were placed in employment during each of the calendar years 1949 to 1956 were as follows.

Year Ended 31 DecemberNumber Placed by CentresNumber Self-placedTotals
19491,5646752,239
19501,6124562,068
19511,4753651,840
19521,5904362,026
19531,4095251,934
19541,2824031,685
19551,2035201,723
19561,2524991,751

National Employment Service.—As from 1 April 1946 the National Employment Service was established with the principal function of promoting and maintaining full employment in New Zealand. The new Department was set up under the Employment Act 1945. In fact, provision for Government Employment Bureaux had been made as early as 1891. From 1930 to 1936, the period of the operations of the Unemployment Board, the Bureaux functioned rather as unemployment registration offices than as placement services. In 1936 the activities of the Unemployment Board were transferred to the Employment Division of the Department of Labour and the bureaux replaced by a State Placement Service, which operated a widely used system of local labour exchanges. From 1942 to the end of March 1946 this became merged in the Industrial Man-power Division of the National Service Department, and, with an augmented staff, carried out the wider and more complex functions of man-power direction and control. In this work the Industrial Man-power Division developed a much greater emphasis on the collection and use of employment and other economic data, on the research and planning aspects of employment, and on the co-ordination of industrial activities with man-power resources. The National Employment Service was built upon these foundations. A comprehensive historical and statistical survey of the Industrial Man-power Division of the National Service Department from 1940 to August 1945 is given in parliamentary paper H–11A, 1945; a résumé of this paper was given in the 1945 Year-Book. The 1946 H–11A extended this survey to 31 March 1946, all man-power control being finally lifted on 30 June 1946. After twelve months' activity as a separate Department the National Employment Service was, however, on 1 April 1947 amalgamated with the Department of Labour.

The main activities of the Department on the employment side are: the collection of employment information and the application of this information towards securing a continuing adjustment of matters affecting employment, so as to maintain a policy of full employment at the highest productive level; assisting persons to secure work or more suitable work, and employers to secure labour, by maintaining twenty-five district employment offices, by operating camps and hostels for workers, and by other measures which may include occupational training or retraining; the administration of employment schemes, subsidized where necessary, for those unfit to compete in the ordinary labour market; and the operation of a Home Aid Service to provide domestic help for families in urgent circumstances.

The twenty-three camps and hostels operated by or for the Department at 31 March 1956—comprising industrial workers' camps and hostels, immigration hostels, Public Service hostels, miners' hostels, Maori youth hostels, and one home-aid hostel—provided accommodation for 2,523 workers.

The Employment Act 1945 provided for the establishment of Advisory Councils and Committees to assist the Department in the effective administration of its employment service. A number of committees at both district and national levels have been set up, and meet as circumstances require.

Immigration matters, including the maintenance of immigration hostels, are also handled by the Department. Reference to assisted immigration has been made on pages 38–39 of this volume. To advise the Minister of Immigration on immigration matters and to aid the Department in the implementing of the immigration policy an Immigration Advisory Council was established in April 1947. Throughout the country there are also Immigration Welfare Committees whose function is to co-ordinate welfare activities in respect of new settlers.

Of recent years special attention has been directed to the problem of Maori employment. Outstanding features of the Maori population are its rate of growth and the fact that the Maori people are largely resident in localities remote from the main centres of industrial activity. Practical measures for ensuring the continuing absorption of the Maori race into full employment have included the fostering of Maori apprenticeships and the establishment of Maori youth hostels.

Half-yearly Surveys.—Commencing in 1946 the Department has carried out at half-yearly intervals a general survey of employment in New Zealand. These surveys are conducted by means of inquiries sent out to employers of labour, the results being published in the Labour and Employment Gazette. Returns are required from all establishments in which at least two persons (including working proprietors) are engaged. Government and local-authority employment is included. Each return covers six consecutive months, the initial survey (apart from a pilot survey taken for April 1946) relating to the period May to October 1946. Particulars of working proprietors, number of establishments, and reported vacancies are available at half-yearly intervals only. Employers in farming, hunting, trapping, fishing, waterfront work, and private domestic service are not required to submit half-yearly returns. Seasonal industries (comprising meat processing, fruit and vegetable preserving, dairy factories, and wool stores) have since August 1946 been covered by a separate monthly inquiry. Following are tables showing the figures for April of each year from 1947 to 1956, and for October 1956, taken from these surveys, a dissection being provided into the chief industrial groups. Separate tables are given for males and females, working proprietors are distinguished from employees, and the numbers of vacancies reported and of establishments covered are appended.

Since the introduction of half-yearly employment surveys there have been several changes in the industrial classification of units to bring the New Zealand classification into line with the United Nations Standard Industrial Classification. In respect of working proprietors and employees the effects of the various reclassifications have been carried back to 1946, and the figures in the following tables replace those previously published in successive issues of the Year-Book.

Since April 1953 the industry of threshing and chaff-cutting has been treated as a branch of farming and hence omitted from the inquiry, and the following tables exclude threshing and chaff-cutting throughout.

Employment in industry on 15 April of the years 1947–56, and on 15 October 1956, is given in the following table.

Primary Industry (Other Than Farming, Fishing, and Hunting)Manufacturing IndustryPower, Water, and Sanitary ServicesBuilding and ConstructionTransport and Communication (Other Than Waterfront Work)Distribution and FinanceDomestic and Personal ServicesAdministration and ProfessionalTotals, All Industries Covered
Male Employees
April—
194710,591111,5348,57032,48745,50352,55210,01635,448306,701
194811,187116,2238,59034,03346,81455,11010,40436,198318,559
194911,644117,7988,89634,53648,82755,93310,66337,180325,477
195011,529120,4379,21335,85749,24157,57410,73937,941332,531
195111,243121,0289,50835,12147,88359,25610,80138,595333,435
195210,963125,0989,61938,01149,42260,74510,76039,186343,804
195310,619127,64110,37241,30650,71161,94211,05840,523354,172
195410,428131,18210,81044,57950,59663,30311,23741,066363,201
195510,234134,65510,95547,59050,44865,31811,22341,439371,862
195610,339137,80511,02249,19751,75567,78511,25143,957383,111
October—
195610,719133,19611,35149,25653,06668,05811,40045,291382,337
Male Working Proprietors
April—
19472996,64483,4801,5766,7932,52282922,151
19483217,04893,4971,5506,5882,45270222,167
19493547,843103,7121,5476,6402,60060723,313
19503597,83073,7481,5896,7632,62341423,333
19513307,34973,9221,5356,6972,56239622,798
19523487,17484,0251,5056,6222,44541322,540
19533307,26943,9711,4196,6762,53536722,571
19543508,30065,0321,6478,3132,84063127,119
19553048,48955,4651,6308,8102,93649128,130
19563518,82196,0381,7569,1242,97049629,565
October—
19564309,025116,2581,8139,4053,07649330,511
Female Employees
April—
194720136,6605857565,69327,92813,47032,948118,241
194820637,3325817716,24228,63113,74833,670121,181
194921437,4996108476,46729,05013,97734,295122,959
195021239,3436588476,73730,10113,85835,358127,114
195118540,6316778986,99631,37713,43736,222130,423
195220640,1206959097,46432,11913,22437,414132,151
195321538,6547169647,72832,88913,41439,128133,708
195420541,1517741,0487,81034,21113,54640,496139,241
195522643,0807881,1277,98936,14013,62841,733144,711
195623742,3538091,2038,57537,88713,96643,571148,601
October—
195624342,3608131,1998,75637,90613,94744,088149,312
Female Working Proprietors
April—
19471845  291,3061,3892373,807
19482924  291,3311,4592173,962
194921,164  291,4531,5762154,439
195021,127  311,4771,5732074,417
195131,129  381,5541,5791914,494
195231,087 1451,7061,5101654,517
195311,058 1341,7441,5771594,574
195411,192 4392,4291,7191825,566
1955 1,204 3352,8051,8252016,073
1956 1,210 1492,9791,9011746,314
October—
1956 1,243 1553,1591,9481726,578

A dissection of the manufacturing industry column shown in the preceding table is now given over the same period.

Seasonal ManufacturingFood, Drink, and Tobacco (Other Than Seasonal)Textiles, Clothing, and LeatherBuilding Materials and FurnishingsEngineering and Metal-workingMiscellaneous ManufacturingTotal Manufacturing Industry
Male Employees
April—
194718,7388,92512,37619,48138,18613,828111,534
194818,7489,01412,80721,01140,15014,493116,223
194918,8679,05412,69021,60840,75214,827117,798
195019,0128,97612,88222,16941,95315,445120,437
195117,8088,86813,04422,61842,77315,917121,028
195220,2378,90512,48723,41144,40315,655125,098
195321,2869,01012,06323,42146,06115,800127,641
195420,6789,07012,44624,24948,02116,718131,182
195520,5118,88412,27724,58050,78217,621134,655
195621,5488,89711,86624,99351,34719,154137,805
October—
195616,6459,03311,63324,47251,97019,443133,196
Male Working Proprietors
April—
1947789909241,2492,6637406,644
1948701,0689231,3392,8827667,048
1949701,1831,0371,6043,1468037,843
1950621,1571,0111,6163,1628227,830
1951571,0779581,4763,0027797,349
1952609609141,4663,0277477,174
1953529588701,5473,1167267,269
1954661,0359811,7163,6618418,300
1955629879971,7973,7648828,489
1956641,0011,0271,8913,9229168,821
October—
1956681,0121,0241,9094,1009129,025
Female Employees
April—
19471,3934,58420,5811,1473,4595,49636,660
19481,4174,58821,1361,1483,6105,43337,332
19491,3204,74321,3921,0833,5495,41237,499
19501,4774,89722,3091,1543,6845,82239,343
19511,5554,53023,5731,2033,8715,89940,631
19521,6364,58022,5281,2764,2255,87540,120
19531,8234,80520,8391,2274,3115,64938,654
19541,7774,76322,6621,3214,6146,01441,151
19551,6614,91023,5391,4445,1776,34943,080
19561,7484,76422,7631,5065,0596,51342,353
October—
19561,6395,06022,5651,4315,0396,62642,360
Female Working Proprietors
April—
19478352391111865845
194812351450103368924
1949104485512652771,164
195054615281641761,127
195144525331360671,129
195244115351950681,087
195344374982039601,058
195474555562573761,192
195584605433174881,204
195674515552778921,210
October—
1956846354432102941,243

The following table shows the number of vacancies reported by employers in the half-yearly surveys. Figures on the basis of the revised industrial classification are not available for the years prior to 1953.

Primary Industry (Other Than Farming, Fishing, and Hunting)Manufacturing Industry*Power, Water, and Sanitary ServicesBuilding and ConstructionTransport and Communication (Other Than Waterfront Work)Distribution and FinanceDomestic and Personal ServicesAdministration and ProfessionalTotals, All Industries Covered*

* Excluding seasonal manufacturing

Males
April—
  19479528,2314382,4053,6511,1151971,23518,224
  19486587,3793522,2153,6171,3502601,32217,153
  19494906,8803162,0023,3101,7742161,38916,377
  19506438,5494822,7394,0162,2373181,81720,801
  19515798,4304722,6095,1262,0243121,85221,404
  19528067,8575623,0215,2592,0852851,73221,607
Revised basis—
  19533335,0803511,9043,8031,4171731,13614,197
  19542025,3023842,4903,7811,6921551,22715,233
  19554096,8673882,9714,2492,2312721,59618,983
  19563035,3075302,3233,9201,7772591,53215,951
  1956 (October)1794,1212751,5433,6111,6202221,19012,761
Females
April—
  194739,9432132961,1859582,36214,771
  194837,92423152421,2616542,44012,562
  1949207,78516 2081,5227392,33612,626
  1950157,89431 2431,6687212,50813,080
  1951276,49241 4091,6515682,20411,392
  1952243,82435 4161,5114462,2548,510
Revised basis—
  1953112,7285918238862891,9206,217
  195483,73413 3541,1543081,9257,496
  1955114,1602413371,4964632,0538,545
  195672,6802712281,1703932,0286,534
  1956 (October)112,2181712201,1194491,7985,833

Reported vacancies in manufacturing industry included in the previous table are now shown separately.

Food, Drink, and Tobacco (Other Than Seasonal)Textiles, Clothing, and LeatherBuilding Materials and FurnishingsEngineering and Metal-workingMiscellaneous ManufacturingTotals, Manufacturing Industry*

* Excluding seasonal manufacturing.

Males
April—
  19472821,2761,1914,5978858,231
  19481931,2021,1154,0108597,379
  19493011,2961,0393,3349106,880
  19503861,3731,4324,2491,1098,549
  19513131,1861,4134,5569628,430
  19523327721,2284,6169097,857
Revised basis—
  19531455758973,0004635,080
  19541306789482,8876595,302
  19553107591,3243,6648106,867
  19561603929753,0807005,307
  1956 (October)1533586732,4175204,121
Females
April—
  19478357,451634511,1439,943
  19484276,1311243808627,924
  19494955,991494038477,785
  19504955,993564089427,894
  19512925,118753266816,492
  19523942,654472344953,824
Revised basis—
  19531492,24331992062,728
  19541752,934652053553,734
  19552963,201622443574,160
  19561372,075331562792,680
  1956 (October)1241,689341342372,218

The number of establishments covered by the half-yearly surveys is now shown, the second part of the table giving an analysis of the manufacturing industry column contained in the first part. Figures on the basis of the revised industrial classification are not available for the years prior to 1953.

Primary Industry (Other Than Farming, Fishing, and Hunting)Manufacturing IndustryPower, Water, and Sanitary ServicesBuilding and ConstructionTransport and Communication (Other Than Waterfront Work)Distribution and FinanceDomestic and Personal ServicesAdministration and ProfessionalTotals, All Industries Covered
April—
  19475849,2012233,1062,05211,2153,5763,10533,062
  194867710,212253,2032,08711,7233,7063,05434,887
  194973711,007223,4222,13811,9653,8193,06836,379
  195076711,0522253,4882,18112,3073,8612,90036,781
  195175311,1042243,6262,26012,6773,8242,93237,400
  195277611,1472243,8952,37813,0063,7072,88238,015
Revised basis—
  195359211,7402443,8962,35912,4684,0643,40938,772
  195461112,0952414,7162,45713,4594,2783,54041,397
  195560312,3752435,1872,48514,1534,4013,63543,082
  195662512,5992475,6752,51314,7204,4453,72444,548
  1956 (October)63412,6452495,8502,53314,9364,4723,72845,047
Seasonal ManufacturingFood, Drink, and Tobacco (Other Than Seasonal)Textiles, Clothing, and LeatherBuilding Materials and FurnishingsEngineering and Metal-workingMiscellaneous ManufacturingTotals, Manufacturing Industry
April—
  19475561,2731,6651,3923,2861,0299,201
  19485611,3781,8941,5913,6921,09610,212
  19495641,5411,9971,7433,9861,17611,007
  19505541,5321,9911,7484,0401,18711,052
  19515501,4742,0181,7744,0881,20011,104
  19525461,3872,0041,8194,2061,18511,147
Revised basis—
  19535401,3761,9632,4704,1031,28811,740
  19545401,3691,9492,5534,3471,33712,095
  19555351,3331,9802,6004,5671,36012,375
  19565271,3151,9752,6614,7351,38612,599
  1956 (October)5291,3131,9342,6564,8331,38012,645

The table now following shows the half-yearly survey totals of employment in industry, under a more detailed industrial classification, as at 15 April 1955 and 1956; employment by the General Government, by local authorities, and by private employers being distinguished at the same time in the 1956 figures.

IndustryNumber of Persons* in Industry at 15 April 1955Number of Persons in Industry at 15 April 1956
MalesFemales
MalesFemalesGovernmentLocal AuthoritiesPrivate*GovernmentLocal AuthoritiesPrivate*

* These figures are inclusive of working proprietors.

Primary industry (other than farming, fishing, and hunting)—
  Forestry2,1451421,974 158145 5
  Logging2,62513182 2,7113 15
  Coalmining4,493543,051 1,18843 8
  Other mining2151  213  4
  Quarrying (n.e.i.)1,06016 1381,075  14
Seasonal manufacturing—
  Meat processing, etc.15,703653 24516,381 1759
  Fruit and vegetable preserving780624  748  584
  Dairy factories4,090392  4,238  411
Food, drink, and tobacco (other than seasonal)—
  Grain milling77371  809  73
  Bread bakeries2,134614  2,117  562
  Biscuit making659781  578  707
  Cake and pastry making9411,297  983  1,300
  Sugar and confectionery1,358983  1,401  892
  Other food963654  969  703
  Beverages2,57123921 2,5422 296
  Tobacco manufacture472731  478  680
Textiles, clothing, and leather—
  Tanneries1,291121  1,252  115
  Fur dressing and manufacture139187  106  143
  Leather goods511471  507  441
  Knitted wear and hosiery1,3352,540  1,342  2,342
  Flax, rope, and twine41065  415  57
  Woollen mills1,6291,178  1,489  1,128
  Other textile production934482  814  404
  Clothing manufacture3,37416,143  3,467  15,945
  Footwear manufacture2,7302,156  2,497  1,982
  Footwear repair28628  282  24
  Other textile articles635711  722  737
Building materials and furnishings—
  Sawmilling, plywoods, etc.8,733308563 8,8415 318
  Builders' woodwork4,4421213354,317  113
  Furniture and cabinets4,337367  4,228  352
  Other wood manufacture1,13417841 1,05825 193
  Brick, tile, and stoneware1,24232  1,189  35
  Pottery and glass1,506300  1,494  300
  Lime, cement, etc.4,983169 415,074  192
Engineering and metal-working—
  Engineering and machinery19,9781,978 220,416  2,031
  Electrical manufacture4,2611,216  4,035  1,121
  Ships, locomotives, etc.6,517565,480 1,00238 19
  Vehicle and cycle manufacture5,122460  4,200  338
  Vehicle repair and aircraft18,6681,5411061,18718,8412171,571
Miscellaneous manufacturing—
Chemicals and by-products4,2851,361 44,423  1,442
  Rubber manufacture2,388613  2,562  591
  Paper and pulp products2,014966  2,941  976
  Printing, publishing, and allied7,5352,279542 7,356128 2,303
  Instruments, clocks, jewellery1,041368  1,001  368
  Other manufacturing (n.e.i.)1,240850  1,241  797
  Power, water, and sanitary services10,9607883,3136,7001,01816656083
  Building and construction53,0551,13010,8861,98642,36339861745
Transport and communication—
  Rail transport17,2501,17417,260100 1,1939 
  Road transport15,6071,0691,5101,84412,76266203741
  Water transport (not waterfront)4,2663991612,7991,500376364
  Air transport1,403293547 95063 262
  Post and telegraph13,5525,08914,078  5,644  
Distribution and finance—
  Wholesale and retail trade60,65732,3006035162,390231033,748
  Storage54886  571  97
  Finance6,6353,9891,231 5,755755 3,492
  Insurance3,0292,115510 2,629439 1,851
  Real estate1,180429  1,150  415
  Wool and grain stores (seasonal)2,07926  2,262  36
Domestic and personal services—
  Provision of lodging, food, etc.7,31910,287201 7,163261 10,239
  Portrait and photo studios445564  440  558
  Laundries, cleaning, etc.1,6922,032  1,702  2,154
  Barbers, beauty shops, etc.8361,270  802  1,336
  Recreation, sport, etc.3,4851,2669008611,74637343874
  Undertaking38234 181225 326
Administration and professional—
  Hospitals5,96916,1891,4814,5551371,37013,1101,819
  Medical and allied services5771,71960 5391,018 875
  Education and instruction11,38813,0681,6739,1261,4611,36010,4852,068
  Arts, sciences, and religion1,001327718 546184 231
  Government services (n.e.i.)11,8364,53312,291  4,817  
  Local authorities (n.e.i.)7,160858 7,633  919 
  Miscellaneous services and agencies3,9995,240190 4,043143 5,346
      Totals399,992150,78479,03337,788295,85518,66725,497110,751

NOTE.—The preceding table does not include Armed Forces personnel, numbering 10,500 in April 1955 and 9,600 in April 1956, or persons engaged in farming, fishing, hunting, waterfront work, one-man business units, etc., estimated to total 239,900 in April 1955 and 237,700 in April 1956.

An effective correlation of the figures shown in the preceding tables with those of employment in factories found in Section 24 of this volume is precluded by the differing definitions of “manufacturing industry”; furthermore, the tabulations of half-yearly surveys differ from factory production statistics in including managers and foremen, clerical workers, and distributing staff attached to manufacturing establishments in one figure with factory operatives.

Apprenticeships.—Legal provisions governing apprenticeship contracts have been summarized on pages 1041–4. The respective numbers of such contracts registered during the year, completed during the year, and in force at the end of the year, are indicated in the following table for each of the years ended 31 March 1955 and 31 March 1956.

TradeApprenticeship Contracts
Registered During Year Ended 31 MarchCompleted During Year Ended 31 March*In Force at 31 March
195519561955195619551956

* Exclusive of lapses and cancellations.

Aircraft4026621115120
Baking51341722129119
Boilermaking254241290109
Boot repairing1511665956
Bricklaying3750722106123
Carpentering1,2171,2053557104,1664,487
Clothing44492445173163
Coachbuilding18222547127776805
Coopering   121
Dentistry85432223
Electrical2763381182541,1201,166
Engineering3173351432231,2191,260
Motor engineering7708931854722,8383,092
Footwear manufacturing59501532184178
Furniture24423978206996948
Gardening1596136255
Hairdressing2841525104107
Jewellery4032828136136
Lead burning231 46
Masonry211385
Moulding1212484241
Painting1341433590480493
Photo-engraving262511178988
Plastering77781649279282
Plumbing219273551168911,012
Printing16817671121570598
Radio43491521117135
Refrigeration servicing43281115112124
Saddlery, leather, and canvas goods157463737
Sheet-metal working43321218123127
Shipbuilding202311177673
Terazzo work1 2 43
Other28354178787
      Totals4,2014,4691,2812,72015,21616,059

VACANCIES, PLACEMENTS, AND DISENGAGED PERSONS.—In addition to the half-yearly surveys of the employment position as a whole, the Department of Labour maintains a month-to-month record of vacancies, placements, and disengaged persons seeking work. The following tables are derived from this record and hence relate only to the Department's operations as a labour exchange.

Notified Vacancies.—For some years past insufficient labour has been available to satisfy the demands of industry; though diminished in intensity since 1950 this shortage still persists. Its extent and distribution may be measured to some degree by the number of unsatisfied vacancies at the end of each month. Particulars of such vacancies at the end of each month from December 1955 to December 1956 (together with monthly averages for the calendar years 1946–56 inclusive), are shown by district groupings in the following table. This table does not necessarily cover the same establishments as the preceding tables derived from half-yearly surveys: on the one hand it does not exclude vacancies, on farms, in seasonal manufacturing industry, and in domestic service; but on the other hand it includes only those vacancies which have been notified to a district office of the Department of Labour in its capacity as a placement service.

AucklandWellington and Lower HuttOther North IslandChrist-churchDunedinOther South IslandTotal
Monthly Average For Calendar Years
19465,1095,9782,3842,6262,3651,34519,807
19474,6898,1113,2343,3473,0221,99324,396
19484,3097,8293,2383,2593,0481,80423,487
19493,2347,1913,0902,7592,7821,70720,763
19503,2887,1753,9182,7913,3111,96222,445
19513,0906,6074,4452,9482,6232,25521,968
19522,5545,1933,5392,3981,8322,13117,647
19531,6483,5212,7611,2669451,25811,399
19542,2554,0962,8141,2258771,26512,532
19552,2555,6923,1151,5557531,48414,854
19561,7275,2612,3971,3529141,33512,986
Monthly Totals
1955—
  December2,0926,5072,8221,7007031,62115,445
1956—
  January2,1466,3732,7761,6817621,64615,384
  February2,1046,5052,7511,5548051,60315,322
  March2,0086,4172,5601,4136581,48614,542
  April1,9306,1962,4131,3701,1331,38414,426
  May1,7255,7732,4601,2961,2791,33413,867
  June1,6075,3932,2751,2501,2291,22612,980
  July1,5054,7262,1701,2798871,11911,686
  August1,4954,5422,1971,2508901,15811,532
  September1,4984,3592,1391,2558291,23211,312
  October1,5314,2972,3341,3168141,28011,572
  November1,5824,3862,4891,3148191,30111,891
  December1,5974,1672,1931,2428631,25511,317

Placements.—An industrial analysis of placements by the Department of Labour during the years 1946 to 1956 and for each month from December 1955 to December 1956 follows: not all these placements were, however, of disengaged persons.

Primary IndustryManufacturing IndustryBuilding and ConstructionPower, Water, and Sanitary ServicesTransport and CommunicationDistribution and Finance, etc.Domestic and Personal ServicesAdministration and ProfessionalTotal

* Included in manufacturing industry.

Annual Totals
19464,7568,3223,680*1,8032,5171,4561,95824,492
19475,1836,8222,6323201,2432,7721,4921,75222,216
19485,3395,8262,7472691,0301,7841,3571,91320,265
19495,5796,1772,8193001,3521,7161,6002,00721,550
19506,1296,3482,8023359741,7261,4572,00921,780
19515,7966,5953,0203761,5301,8151,6772,15822,967
19525,4027,0413,5493821,9391,6311,7002,41124,055
19534,8626,9543,8812981,4521,5601,4852,19622,688
19544,3234,5462,7462659921,4461,2571,45717,032
19553,5684,0722,7982786531,4971,2001,43115,497
19563,5633,6772,4612529401,5361,1981,53315,160
Primary IndustryManufacturing IndustryBuilding and ConstructionPower, Water, and Sanitary ServicesTransport and CommunicationDistribution and Finance, etc.Domestic and Personal ServicesAdministration and ProfessionalTotal
Monthly Totals
1955—
  Dec.2303801791858147781161,206
1956—
  Jan.53126718215531201051341,407
  Feb.1,14730919611451571141472,126
  March4832451501628101911261,240
  April25147728622148178941891,645
  May145314236281121311111151,192
  June159296182257712376981,036
  July1513012092261121901161,071
  Aug.146424297391621411331561,498
  Sept.1552742172255114991291,065
  Oct.12725217625971251031251,030
  Nov.134251170204111592111934
  Dec.1342671607611109087916

A classification of these placements by district grouping is contained in the next table.

AucklandWellington and Lower HuttOther North IslandChrist-churchDunedinOther South IslandTotal
Annual Totals
19462,9212,8047,9833,0332,6905,06124,492
19472,4743,0726,3022,4642,1395,76522,216
19482,3132,9245,6092,3621,5365,52120,265
19492,9972,6435,8282,4661,9705,64621,550
19503,5202,4065,4682,1961,7606,43021,780
19513,7833,2355,3462,3722,1826,04922,967
19524,3953,9424,7672,7442,5375,67024,055
19534,0883,9804,5262,1953,0194,88022,688
19542,0862,6513,7631,7522,2554,52517,032
19551,8122,3873,7321,4582,1993,90915,497
19561,6752,9793,3081,2801,9443,97415,160
Monthly Totals
1955—
  December2042592151421552311,206
1956—
  January872122151481336121,407
  February1551942541251941,2042,126
  March114178243691295071,240
  April1954403341602522641,645
  May168191339872131941,192
  June1731882441021641651,036
  July992302741051911721,071
  August2204803981011311681,498
  September1161933021121402021,065
  October123278280100971521,030
  November9422722972137175934
  December13116819699163159916

Summary.—The following table contains a summary of the numbers of notified vacancies, placements, and disengaged persons as recorded by the Department of Labour for each month from December 1955 to December 1956, together with monthly averages for the calendar years 1946–56 inclusive.

Vacancies at End of MonthPlacements During MonthDisengaged Persons at End of Month
MalesFemalesTotalMalesFemalesTotalMalesFemalesTotal
Monthly Average For Calendar Years
19468,42211,38519,8071,7712702,04136818386
194712,22512,17124,3961,4653861,85183992
194812,16111,32623,4871,2434461,68961667
194911,0559,70820,7631,3134831,79688492
195013,1659,28022,4451,3204951,81534438
195113,6908,27821,9681,3905241,91429938
195211,7335,91417,6471,4705352,005331447
19537,9443,45511,3991,3615301,891671885
19548,4044,12812,5329974221,419481058
195510,1534,70114,8549013901,291441256
19568,9584,02812,9868663971,26324019259
Monthly Totals
1955—
  Dec.10,7364,70915,4458143921,20616622
1956—
  Jan.10,6834,70115,3848815261,407231134
  Feb.10,6274,69515,3221,0381,0882,12623629
  March10,0354,50714,5427165241,24062365
  April10,0884,33814,4261,1544911,64570676
  May9,7614,10613,8678623301,19226019279
  June8,8354,14512,9808212151,03628119300
  July8,1253,56111,6868232481,07146225487
  Aug.7,9903,54211,5321,1533451,49847233505
  Sept.7,7973,51511,3128222431,06541048458
  Oct.7,9293,64311,5727792511,03029415309
  Nov.8,1153,77611,89168125393427123294
  Dec.7,5173,80011,31766325391625717274

The number of disengaged persons still enrolled for placement by the Department of Labour reached its lowest level (12) at the end of March 1951. The lowest figure recorded during 1956 was 29 in February of that year, while the figures from May 1956 onwards have been the highest recorded since 1946; most of these disengaged persons have been in the unskilled and semi-skilled categories.

EMPLOYMENT ON FARMS.—The omission of farm employment from the Department of Labour statistics shown on the preceding pages is partly made good by figures derived from the annual collection of farm production statistics undertaken by the Department of Statistics.

A table giving special detailed statistics of farm workers and farm population at 31 January 1950, covering persons actually residing on holdings of 1 acre and over situated outside borough boundaries, was published on page 979 of the 1954 Year-Book.

SEASONAL FLUCTUATIONS IN EMPLOYMENT.—The adoption of the maintenance of full employment as a desideratum in many countries has prompted research into various employment problems, including that of the fluctuation or periodicity of employment. Information on the annual cycle of employment in New Zealand is available for those industries which are covered by the half-yearly survey. The following table shows the month-to-month variations in male employment in seasonal industries for the period of thirteen months from April 1955 to April 1956. The seasonal changes in female employment are less marked, such fluctuations as are evident originating mainly in the fruit and vegetable preserving industry.

Meat Processing, etc.Fruit and Vegetable PreservingDairy FactoriesWool StoresTotal Seasonal Industry
Males
1955
April15,6607624,0892,07822,589
May14,8617313,8861,91321,391
June13,2087003,5931,41518,916
July11,3876933,6111,37317,064
August11,1237074,0291,43617,295
September10,5106754,5831,65117,419
October10,5167024,8482,10618,172
November13,7437175,0023,08922,551
December18,4651,0284,9713,42327,887
1956
January19,6831,2054,8623,41929,169
February18,5949874,6702,96827,219
March17,2019404,4382,57925,158
April16,5817294,2382,26123,809

PUBLIC WORKS.—Since 1935 figures have been available which include not only the number of workers in the direct employ of the Public Works Department (now subdivided into the Ministry of Works and the State Hydro-electric Department), but also those employed by contractors for public works, and those employed by local authorities on (a) works which are financed wholly or partly by the Ministry of Works, and (b) highway or road construction and maintenance. In the next table figures on this basis are given for the years 1946 to 1956 and at quarterly intervals from December 1955 to December 1956. Departmental and contractors' workmen on Housing Division work are now included.

PERSONS ENGAGEDON PUBLIC WORKS (INCLUDING HYDRO-ELECTRIC WORKSAND HOUSING)

Hydro-electric WorksRoadsIrrigationLand Development, etc.
State Hydro-electric DepartmentMinistry of Works
Average for calendar year—
19463,2493,380555
19471,5752,0874,205206296
19481,6572,1664,446153282
19491,7212,1744,515121370
19501,9452,4654,472148336
19512,3032,5154,361133354
19522,5012,8254,659102338
19532,7253,4834,276100259
19542,8453,0364,373126291
19552,8633,0074,958133288
19562,8452,7985,582118257
Month—
1955—December2,8542,9575,298103225
1956—March2,8353,0125,67481236
    June2,8632,8045,461137225
    September2,8432,4425,707147301
    December2,8252,9095,67711309
Public BuildingsAerodromesRailwaysOther WorksTotal
Average for calendar year—
  19465,4273993962,27315,679
  19476,0923822492,03717,129
  19487,0794171341,88518,219
  19497,6094172131,86519,005
  19506,9024363331,84918,886
  19514,9613773361,76617,106
  19524,9683865511,77218,102
  19535,8333906601,90819,634
  19545,1573314341,85018,443
  19555,3093451421,86018,905
  19565,540471332,01419,658
Month—
  1955—December5,083436681,83818,862
  1956—March5,485452451,88419,704
    June5,947435351,99019,897
    September5,692532192,18219,865
    December4,988490 2,15919,468

The figures shown in this table and also those in the table below on local authority employment are included in the national employment tables already presented.

Local Authority Statistics.—The following table shows employment by local authorities for each month from April 1951 to March 1956. Employees of Electric Power Boards and Fire Boards are included here but not those of Hospital Boards.

Month1951–521952–531953–541954–551955–56
April20,41721,03421,77622,23522,194
May20,88321,43521,95622,26222,507
June20,98021,41922,18722,28322,444
July21,16821,75822,32122,44622,423
August21,39021,75122,38122,48422,653
September20,95621,86522,32622,40122,523
October21,00621,80522,26622,23222,367
November21,05821,91122,18422,21322,442
December20,91522,21722,37222,42822,757
January20,86121,94622,12322,29422,526
February20,89221,98321,99822,40222,543
March20,81522,07221,98422,15422,587

Chapter 40. SECTION 40—INDUSTRIAL UNIONS

Table of Contents

INTRODUCTORY: Legislative Authority.—In New Zealand dual provision for the registration and protection of unions of workers and of employers exists in the Trade Unions Act and the Industrial Conciliation and Arbitration Act, references to which are made in Section 38 of this volume. The Industrial Conciliation and Arbitration Act 1954 consolidated the former 1925 Act and its amendments.

The Act requires certain provisions to be included in the rules of industrial unions, especially that elections of officials are to be made by secret ballot of financial members or by such other democratic method as may be approved by the Registrar of Industrial Unions. The Registrar may refuse any unreasonable or oppressive rule, subject to a right of appeal by the union to the Court of Arbitration. He may also, on application by at least ten financial members, refer to the Court for inquiry a disputed election of union officials. Secret ballots are required to validate subscriptions in excess of 2s. weekly and levies on union members. Penalties are prescribed in the case of a strike or lockout initiated without the taking of a secret ballot.

Provision is made under section 79 of the Industrial Conciliation and Arbitration Act 1954 for the furnishing of an annual return showing the number and membership as at 31 December of unions registered under the Act. It is from this return (see parliamentary paper H-11) that the tables in this Section have been compiled. Very little information is available as to registration of unions under the Trade Unions Act, which is now practically inoperative. The number of unions registered under this Act as at the end of 1956 was 3 only. Unions registered under the Trade Unions Act may also be registered under the Industrial Conciliation and Arbitration Act.

General.—The following paragraphs give a brief outline of the constitution, government, objects, and powers of industrial unions.

Constitution.—An industrial union is constituted in accordance with the provisions of the statute under which it has been registered. Its membership consists of workers or employers in a specified industry or group of related industries, while its territorial scope is defined with reference to localities, industrial districts, the North or South Island, or the country as a whole. Minimum membership requirements in the case of a union of employers are as follows: jurisdiction in one district only, not less than three members; two or more districts or in North or South Island, all the employers in the North Island or in the South Island, or a branch of not less than three members in each of at least two districts; and in New Zealand as a whole, all the employers in New Zealand, or a branch of not less than three members in each of at least four districts. For a union of workers the corresponding requirements are: jurisdiction in one district only, a society of 15 workers in the industry (if less than 15, then not less than one-quarter of the number engaged, with a minimum of 5); in two or more districts or in the North or South Island, a branch having 15 members (or one-quarter of the number engaged, but not less than 5) in each of at least two districts; and in New Zealand as a whole, a branch having 15 members (or one-quarter of the number engaged, but not less than 5) in each of at least four districts. There are three exceptions to these requirements—namely, an incorporated company if an employer of labour, which can be registered individually, a trade union registered under the Trade Unions Act 1908, and certain organizations of Government railway employees, special statutory provisions applying to these.

Government.—The method of government and the objects of a union are provided for in the rules recorded when the union is registered, any amendments becoming effective only after having been also registered. A Committee of Management, either appointed or elected according to the rules, provides the executive aspect of the union. Government is exercised by regular meetings of the union where this is possible, together with half-yearly or annual general meetings. With larger unions having a wider coverage, to preserve the democratic aspect of each member having a right to participate in control, the practice is to establish branches (or sub-branches) where the membership warrants it, each branch having its own Management Committee, elected by the members, with power to conduct its business. In these cases in lieu of annual general meetings, conferences attended by delegates elected by the various branches are held as required, normally annually, while provision is sometimes made in the rules or by statute for the determination of certain questions by secret postal or other ballot of all financial members, or for the ratification of conference decisions upon specified matters by a majority of the branches. In some unions a Council, comprising the officers of the union together with an elected representative from each of several groups of branches, is set up to meet quarterly or as deemed necessary for the transaction of important business, with a subsidiary committee (usually called the executive), comprising the officers and a specified number of other elected members resident in reasonable proximity, to deal with day-to-day matters.

Objects.—The primary object of an industrial union is to protect or promote the interests of either employers or workers in a specified industry or related industries in New Zealand or in a specified locality, the interests being purely industrial and relating exclusively to wages, hours, and conditions of employment. Ancillary objects are as follows:

  1. To enter into industrial agreements relating to conditions of employment and, where necessary, to refer industrial disputes to Councils of Conciliation (upon which the union is entitled to be represented by its Chairman or Secretary or by a specified number of persons appointed in writing or in such other manner as its rules prescribe);

  2. To affiliate with or be a member of any industrial association in the industry or any organization formed for the purpose of protecting or promoting the interests of employers or workers throughout New Zealand;

  3. To take or empower such legal and other lawful proceedings as may be necessary for the conduct of the union's business;

  4. To invest the funds; and

  5. To exercise such other rights and powers as may be conferred by law upon industrial unions registered under the Act.

Powers.—The powers of a union are limited to those authorized by statute, and the manner in which such powers may be exercised, where not specifically mentioned in the statute, must be set out in the rules. It cannot use its funds for any purpose foreign to the purposes for which it is established, nor can it commence any project nor use its funds in any manner not contemplated by the Act under which it is registered. But while an industrial union registered under the Industrial Conciliation and Arbitration Act would have no power to collect and administer funds for political purposes, a union in which membership is by law obligatory as a condition of a person's lawful employment in any position is empowered, under the Political Disabilities Removal Act 1936, to apply its funds in furtherance of political objects if a majority of all the members of the union so decide by a resolution passed on a ballot of the members, taken in accordance with its rules. Further, a union in which no such legal obligation of membership exists may exercise such power, if a majority of the total valid votes recorded at any such ballot is in favour of the proposal.

In the tables which follow—particularly that for workers' unions—a union which extends over more than one industrial district without covering either the whole of New Zealand or the whole of the North Island or the whole of the South Island, is included under “number of unions” in the district where the greatest number of members is located. Under “membership,” however, the number of members is distributed over the various districts according to the best estimates available, either from previous H. 11 returns or from census figures of occupations grouped into such districts.

INDUSTRIAL UNIONS OF EMPLOYERS.—The numbers and membership of industrial unions of employers registered under the Industrial Conciliation and Arbitration Act as at the end of each of the years 1951–55 are shown in the following table.

At 31 DecemberIndustrial District
NorthernWellingtonCanterburyOtago and SouthlandTaranakiMarlboroughNelsonWestlandNorth IslandSouth IslandNew ZealandTotal

* Membership of 271 unions only; membership of 2 unions (Northern District, 1; Wellington, 1) not available. Membership of these 2 unions in 1950 was 4.

† Membership of 270 unions only; membership of 4 unions (Wellington District, 1; Canterbury, 2; and Otago and Southland, 1) not available. Membership of these 4 unions in 1951 was 45.

‡ Membership of 266 unions only; membership of 1 union (Wellington District) not available. Membership of this union in 1952 was 65.

§ Membership of 267 unions only; membership of 1 union (Northern District) not available. Membership of this union in 1953 was 11.

|| Membership of 258 unions only; membership of 5 unions (Wellington District, 1; Canterbury, 2; Otago and Southland, 1; and Taranaki, 1) not available. Membership of these 5 unions in 1954 was 66.

Number of Unions
195151794038941065229273
195247824238851065130274
195347793936951055131267
195448793936951055131268
19554577383595964134263
Membership
19514,1633,1661,4931,6025115932713997227,44119,020*
19524,2103,2361,6091,5934668532113910087,78419,551
19534,6603,2431,6451,6334798432711010687,86020,155
19544,6783,2231,5941,6104698932612410368,14820,370§
19554,8153,1361,6161,624448913041318468,71020,965||

The number of unions of employers and their membership rose gradually to 149 unions, with 5,819 members, in 1914, the year following that of the prolonged waterside workers' strike. From that year until the passing of the 1936 Act membership figures remained fairly constant. The effects of the 1936 amending Act may be judged from the fact that the 1945 figure of membership showed an increase of approximately 290 per cent over the 1935 total. Further increases subsequently took place, and the 1955 figure of 20,965 was the highest yet recorded. A certain amount of duplication, however, exists in employers' union membership, many employers belonging to two or more unions.

INDUSTRIAL UNIONS OF WORKERS.—Industrial unions of workers and their membership are shown in the next table as at the end of each of the five years 1951 to 1955. It should be noted that the statistics cover only unions registered under the Industrial Conciliation and Arbitration Act.

The membership of workers' unions rose year by year, without exception, from 17,989 in 1900 to 73,991 in 1914. It fell off during the period of the First World War, but a phenomenal rise was recorded in 1919, the year immediately following the cessation of hostilities. The total for 1928 (103,980) was the highest recorded up to and inclusive of 1935, but is far below the present figures. The 1936 amending Act, which provided for compulsory union membership on the part of workers subject to an award or industrial agreement, has, of course, been responsible for the high figures of later years.

From 1940 to 1943 the decreased membership reflected to a certain extent the withdrawal of men from industry consequent on the prosecution of the war, but in each of the subsequent years 1944 to 1949 increases in membership were recorded. Compared with 1935, the year prior to the introduction of compulsory union membership, the 1949 figure (275,977) showed an increase of 195,048, or 241 per cent. The 1950 and 1951 figures (267,225 and 272,843 respectively) showed a recession from the general upward trend in membership of workers' unions. This upward trend was resumed, however, in 1952 and new record levels were attained in each succeeding year. The 1950 figure is known to have excluded the membership of five workers' unions which had in the previous year a combined membership of 8,554. The prolonged waterfront strike of 1951, to which in fact the deficiency in the 1950 figures was indirectly due, led to the deregistration of national or district unions in several industries. By 31 December 1951 many members of these unions had not joined the new local unions which took their place, but a year later union membership had again become normal. A provisional figure for 31 December 1956 is 305,235.

At 31 DecemberIndustrial District
NorthernWellingtonCanterburyOtago and SouthlandTaranakiMarlboroughNelsonWestlandNorth IslandSouth IslandNew ZealandTotal

* Membership of 411 unions only; membership of 4 unions (Otago and Southland District, 2; and Nelson, 2) not available. Estimated membership of these 4 unions in 1950 was 114.

† Membership of 414 unions only; membership of one union (Otago and Southland District) not available. Membership of this union in 1951 was 40.

‡ Membership of 412 unions only; membership of one union (Wellington District) not available. Membership of this union in 1953 was 12.

§ Membership of 407 unions only; membership of 3 unions (Wellington District, 1; Taranaki, 1; and Nelson, 1) not available. Membership of these 3 unions in 1954 was 243.

Number of Unions
19519682429219924123135415
195210081428919920163135415
19539485438619919174135412
19549789448519919173229413
19559789438615919193129410
Membership
195162,05242,08227,46124,7814,2981,3502,4343,0003,36732101,986272,843*
195264,44845,43027,81125,2204,9791,4132,4653,4173,39232104,849283,456
195365,98847,17028,24524,6415,2771,1932,4233,4923,88534107,801290,149
195471,57451,78832,07725,5156,0891,5693,9094,5684,2877397,793299,242
195575,61452,82431,74526,7835,5621,4213,2304,5984,7553397,712304,277§

A further indication of the progress that has taken place in the membership of workers' unions is afforded by the accompanying diagram, which shows the numbers at five-yearly intervals from 1900 to 1955.

In the following table industrial unions of workers are classified according to membership. Unions for which no membership figures were available have been classified under “number of unions” according to the latest membership known. Under “membership”, however, nothing is included in respect of such unions (see footnotes to previous table).

YearUnder 100100 and Under 200200 and Under 300300 and Under 500500 and Under 1,0001,000 and Under 2,0002,000 and Under 3,0003,000 and Under 5,0005,000 and Under 10,00010,000 and OverTotal
Number of Unions
190114230195411   202
1911182532623148  1 307
19212397036282811321 418
193123958313029143 1 405
19411847038383227131052419
19511656944383928111173415
19521597246354127131273415
1953155674541452591483412
19541605843444724141193413
19551545749414431101293410
Membership
19015,7774,0324,8152,0732,5201,6512,900   23,768
19117,5217,6866,3608,8799,6859,414  6,084 55,629
192111,2229,7089,18211,06618,52714,5807,4336,5069,495 97,719
19319,9697,9667,57811,24420,60218,5666,744 7,857 90,526
19417,9099,7689,20715,06022,84135,41731,01241,19128,98729,657231,049
19517,76110,22510,39414,67127,27439,65827,36443,21840,27852,000272,843
19527,38010,22610,94113,75728,97737,10431,14047,47144,18752,273283,456
19537,0029,42310,74216,12332,36936,04820,54053,27250,58554,045290,149
19547,3958,3739,88617,23234,47333,55533,49942,83957,50154,489299,242
19557,0347,43011,37815,85632,40144,54123,93146,81360,12354,770304,277
Percentage of Total Membership
190124.317.020.38.710.66.912.2   100.0
191113.513.811.416.017.416.9  11.0 100.0
192111.59.99.411.319.014.97.66.79.7 100.0
193111.18.88.412.422.820.57.4 8.6 100.0
19413.54.24.06.59.915.313.417.812.612.8100.0
19512.93.73.85.410.014.510.015.914.819.0100.0
19522.63.63.94.910.213110.916.815.618.4100.0
19532.43.23.75.611.212.47.118.417.418.6100.0
19542.52.83.35.811.511.211.214.319.218.2100.0
19552.42.43.75.210.714.67.915.419.718.0100.0

There has been a more or less steady growth in the average size of workers' unions, the trend being to a certain extent obscured at times by the cancellation of registration by some large unions. An average membership of 118 in 1901 increased in 1921 to 234, in 1941 to 551, and in 1949 to 742. The average membership of the 410 workers' unions registered in 1955 was 742.

INDUSTRIAL AND GEOGRAPHICAL DISTRIBUTION.—In the next table industrial unions of employers as at the end of 1955 are shown according to industrial group, and membership according to industrial group and district.

Industrial GroupMembership—Industrial DistrictNumber of Unions
NorthernWellingtonCanterburyOtago and SouthlandTaranakiMarlboroughNelsonWestlandNorth IslandSouth IslandNew ZealandTotal
Provision of—
  Food, drink, etc.2,3996342997222641313540  794,58560
  Clothing, footwear, and textiles4280516      3,2833,46211
  Building and construction1,5161,07057948110555119    3,92550
  Power, heat and light 365125127      11172811
  Transport by water and air161918694104  2210814
  Transport by land1321284869    1266245711
  Accommodation, meals, and personal service47140132314958194087  7152,26334
Working in or on—
  Wood, wicker, seagrass, etc.51684114      3124869
  Metal302848     18 72284613
  Stone, clay, glass, chemicals, etc. 43104    28 6076927
  Paper, printing, etc.129139564312     1939819
  Skins, leather, etc.94103       266
  Mines and quarries             
  The land (farming pursuits)201028     26 2,4462,60210
Miscellaneous 55        3323878
      Totals4,8153,1361,6161,624448913041318468,71020,965263

Similar information to that given for industrial unions of employers is now given for workers' unions, as at the end of 1955.

Industrial GroupMembership—Industrial DistrictNumber of Unions
NorthernWellingtonCanterburyOtago and SouthlandTaranakiMarlboroughNelsonWestlandNorth IslandSouth IslandNew ZealandTotal
Provision of—
  Food, drink, etc.10,1976,3654,2535,01791416741318280335,85833,51572
  Clothing, footwear, and textiles7,7775,4594,6422,8572918210174   21,28317
  Building and construction12,3635,9633,9032,890905147458913  1,53429,07639
  Power, heat, and light267162148772273316   7325
  Transport by water and air3,6273,0658971,4482984792125  3,02412,62346
  Transport by land4,3913,1712,2001,804560205505220  21,25734,31322
  Transport by air        168  1681
  Accommodation, meals, and personal service9,8416,7183,0992,850746248273425   24,20026
Working in or on—
  Wood, wicker, seagrass, etc.1,6421,263836415 46342965  8,09013,59917
  Metal1,2731,4546862,545922273214,307 24,71535,18825
  Stone, clay, glass, chemicals, etc.1,35596243031686 129   1303,40820
  Paper, printing, etc.714  237      5,0075,9583
  Skins, leather, etc.756350197477      1,3577
  Mines and quarries361 33220   934   1,54816
  The land (farming pursuits)20248  34     16,12816,4124
Miscellaneous20,84817,84410,4216,0601,607450811887  11,96970,89790
      Totals75,61452,82431,74526,7835,5621,4213,2304,5984,7553397,712304,277410

INDUSTRIAL ASSOCIATIONS.—At 31 December 1955 there were 18 industrial associations of employers and 39 of workers, the former having 137 affiliated unions and the latter 216. The following summary shows the number of industrial associations of employers and workers in each industrial group, with the number of affiliated unions in each case. In most cases the associations cover the entire country.

Industrial GroupEmployersWorkers
AssociationsAffiliated UnionsAssociationsAffiliated Unions
19541955195419551954195519541955
Provision of—
  Food, drink, etc.553939553131
  Clothing, footwear, and textiles    331212
  Building and construction334040332323
  Transport by water, and air111010442425
  Transport by land1144111212
  Accommodation, meals, and personal service222121331717
Working in or on—
  Wood, wicker, seagrass, etc.11442277
  Metal    331010
  Stone, clay, glass, chemicals, etc.2173331010
  Paper, printing, etc.221111    
  Skins, leather, etc.11331144
  Mines and quarries    2254
  The land (farming pursuits)11221133
Miscellaneous    885858
      Totals19181411373939216216

PROPORTION OF UNIONISTS.—The following table, showing the proportion of workers belonging to unions registered under the Industrial Conciliation and Arbitration Act to the total number of wage earners in the country, is of interest as manifesting the movement in and the extent of unionism during the period under review. The figures for total wage earners are derived from census enumerations (except the 1955 figure which is an estimate compiled by the Department of Labour) and include professional, business, and other classes in which unionism prior to the passing of the amending Act of 1936 did not exist, and agricultural and pastoral occupations where it was practically non-existent. In addition, females are included in both sets of figures, although the proportion of women unionized prior to 1936 was negligible.

Census YearTotal Wage EarnersCalendar Year Nearest to Census YearNumbers of Workers on Rolls of Registered UnionsPercentage of Wage Earners on Rolls of Registered Unions

* 1950 figures incomplete.

† Estimate supplied by Department of Labour.

1901 (March)224,3461900 (December)17,9898
1906 (April)269,0391905 (December)29,86911
1911 (April)304,2721910 (December)57,09119
1916 (October)302,1611916 (December)71,58724
1921 (April)370,6921920 (December)96,35026
1926 (April)414,6731925 (December)100,54024
1936 (March)496,5631935 (December)80,92916
1945 (September)473,6841945 (December)229,10348
1951 (March)577,6941950 (December)267,225*46
1955 (October)642,4001955 (December)304,27747

Chapter 41. SECTION 41—INDUSTRIAL DISPUTES

Table of Contents

THE compilation of statistics regarding industrial disputes was first undertaken by the Department of Statistics at the beginning of the year 1920. Information concerning disputes prior to that year was obtained by the examination of the records of the Department of Labour.

Under the system originated in 1920, returns furnished by Inspectors of Factories from inquiries made in each district form the main source from which information is obtained. It is considered that the statistics based on these reports are less liable to bias, than would be the case if parties to the dispute or other private persons were relied on to furnish the information. It is the duty of an Inspector, during the course of a dispute in his industrial district, to collect all available particulars relating to it. The Inspectors have power to make the necessary inquiries, and thus are able to obtain complete information.

In these tabulations the term “industrial dispute” refers only to those disputes which result in a strike or a lockout, or where organized “go slow” or other passive resistance methods are clearly manifested. Many disputes are, of course, settled without recourse to such measures; these are not recorded for statistical purposes. Definitions of the terms “strike” and “lockout” are given on pages 1039–40 of this Year-Book. In the tables following no distinction is drawn between strikes which are lawful and those which are unlawful.

It occasionally happens that there are strikes in different centres with the same or similar objects, and occurring at or about the same time; in such cases the several disturbances are treated as one if the available evidence is sufficient to justify such a course, and the duration is taken as the maximum duration in any centre. While the dispute itself may be tabulated under a single industrial district, the actual number of workers involved may be distributed over more than one of the districts.

Reference to enactments framed to mitigate the severity of industrial disputes will be found in Section 38D of this Year-Book.

NUMBER AND MAGNITUDE.—Although the records of the Department of Labour contain certain information regarding industrial disputes which occurred prior to 1920 (the year in which the present system of reporting was instituted), the details are not sufficiently complete to permit of a full comparison with later years. This applies also in some measure to 1920, as information under some headings did not become available until 1921. Consequently the following summary has been divided into two parts—viz., 1906–20 and 1921–56.

In the first part only the total number of disputes occurring during the period is shown, together with the number of disputes and workers involved where such information is available.

YearTotal DisputesDisputes Where Complete Details Available
NumberWorkers Involved
19061188
190765558
19082263
19091  
1910159255
191122171,375
191224225,746
1913737013,400
191420194,089
191586295
1916159899
191745252,734
191840294,056
191945324,030
1920777715,138

The more detailed figures for the period 1921–56 are as follows.

YearStrikesLockoutsTotal DisputesFirms AffectedWorkers Involved*Working Days Lost*Estimated Loss in Wages*£

* Includes workers indirectly involved.

192177 7711210,433119,20890,477
192258 58676,41493,45660,782
192349 49797,162201,812114,074
192434 345814,81589,10562,732
192581283939,90574,55249,149
192659 59676,26447,81132,355
192738 38404,47612,48511,819
192837239569,25821,99722,304
192946147607,15125,88926,940
193038 38445,46731,66937,299
193123124376,35648,48644,544
193223 23679,355108,605105,715
193315 15433,55865,09959,334
193424 24373,77310,3937,121
193512 12652,32318,56315,266
193643 431287,35416,98012,886
193752 527311,41129,91632,129
193872 7210311,38835,45642,104
193966 6663615,68253,80160,394
1940561579910,47528,09728,062
194189 899715,26126,23734,552
194265 657814,34551,18963,179
194369 6911410,91514,68720,179
1944148114926929,76652,60274,012
1945154 1541,25539,41866,62992,546
194696 9612215,69630,39340,112
1947134 13423426,970102,725187,669
1948101 10188528,49493,464195,985
1949123 1231,31561,536218,172390,773
1950129 1291,18991,492271,475514,236
1951109 10935436,8781,157,3903,111,307
195250 5017716,29728,12369,371
195373 7388022,17519,29148,433
195461 6144716,15320,47466,366
195565 6511420,22452,043185,287
195650 5042613,57923,87084,206

The figures for strikes include details of stop-work meetings unless, as on the waterfront, provision is made for these in the relevant award or agreement. In all cases unauthorized stop-work meetings are included, also unauthorized delays in resuming work after recognized stop-work meetings. A single dispute may include or may consist of one stop-work meeting or several stop-work meetings; if several such meetings are included, these may be held at different times or different places, provided all relate to the same issue. This class of strike has assumed considerable importance recently, the number of such cases in the five years 1952–56 being 111 (141 stop-work meetings), involving 51,316 workers, and the loss of 25,649 working days and of £72,531 in wages.

In the table shown later recording methods of settlement, all such interruptions of labour, including periods of deliberate absence from work by way of a protest against an alleged injustice, are classified under the heading “Voluntary return to work”. In 1952 these cases comprised 18 out of 50 stoppages; in 1953, 44 out of 73; in 1954, 30 out of 61; in 1955, 25 out of 65; and in 1956, 17 out of 50.

In calculating the number of working days lost it is assumed that work would have been continuous if no dispute had taken place. No allowance is made for loss of work from unemployment or other causes which might have occurred even if there had been no dispute, nor is the possibility taken into account of strikers being replaced with non-union labour. In some cases, such as shearing, there is a definite amount of work to be done, and a stoppage of work does not decrease the total amount of it, but only postpones its completion. In those cases the figures are perhaps more or less fictitious, but in the great majority of cases they represent a real loss.

From the preceding tables it will be seen that the number of disputes occurring in any one year was comparatively small until 1913, the high point for that year coinciding with the watersiders' and slaughtermen's strikes of the period. The total for 1913 was not surpassed until 1920 and 1921, the present system of recording industrial disputes being commenced in the latter year. In 1921 the number of disputes was at a relatively high level, but from then onwards, with the exception of one or two temporary fluctuations, the general trend in both number of disputes and number of workers involved showed a downward tendency, culminating in the low figure of 12 disputes involving 2,323 workers in 1935.

The next fifteen years exhibited a reversal of this trend, and particularly during 1946–50 the number of men going on strike each year increased, a new high level being reached in 1950 for the number of workers involved (91,492). In 1951, despite the occurrence of a most serious dispute, the number of workers involved fell to 36,878. In the latter year, however, record high levels were established in the number of working days lost (1,157,390), and in the estimated loss in wages (£3,111,307). The greatest number of disputes in one year is still, however, 154 in 1945, and of firms involved, 1,315 in 1949. Since 1951 there has been comparative peace in industry; the numbers of disputes, working days lost, workers involved, and estimated loss in wages have been much smaller than the annual figures recorded over the period 1947 to 1951 (inclusive).

Prior to 1951 the greatest time lost by disputes in any one calendar year was in 1950, when several serious disturbances occurred, including a general railways strike, three separate waterfront disputes, a coal-mines stoppage, and a subsidy-removal protest involving workers in some ten industries. The next highest figure of man days lost was that for 1949, when the Auckland carpenters' strike and also a general waterfront stoppage occurred. Next in order—in point of lost time—came 1923 when serious disputes occurred in the coal-mining and shipping industries, 1921 (marked by strikes of waterside workers), 1932 (chiefly strikes of waterside workers and coal miners), 1947 (stoppages among waterside workers, freezing workers, and coal miners), and 1948 (disturbances in coal mining, waterfront, and building and construction industries).

The year 1951 was marked by a prolonged waterfront strike, lasting from 9 February to 17 July, and constituting the most serious industrial disturbance which has ever occurred in New Zealand. From 8 May 1950 workers under Court of Arbitration awards received an interim wage increase of 5 per cent with a maximum of 7s. weekly, while waterfront workers' wages were increased as from the same date from 4s. to 4s. 3d. per hour. From 15 February 1951 the interim adjustment was replaced for award workers by an increase of 15 per cent without a maximum. This was announced on 30 January 1951, whereupon port employers offered to increase waterfront wages to 4s. hourly plus 15 per cent (i.e., to 4s. 7 1/2d. per hour). The waterfront workers claimed a greater increase, however, and negotiations shortly thereafter broke down despite Government intervention.

During the currency of this dispute the Government issued a Proclamation under the Public Safety Conservation Act 1932 declaring a state of emergency, following which Waterfront Strike Emergency Regulations were gazetted, giving powers to ensure the observance of law and order, to prevent picketing, threats, and intimidation, to employ Service labour on the waterfront, and to maintain essential supplies and services to the community. The New Zealand Waterside Workers Union was deregistered, and eventually new unions at the separate ports were formed. In the meantime other essential industries, notably coal mining, shipping, and meat freezing, became involved, with the result that the total working time lost was swollen to over 1,000,000 working days, and the total wages lost to over £3,000,000.

The only serious dispute which occurred during 1952 was a disagreement as to wages between tradesmen in freezing works and their employers. Of the total of 28,123 days lost through all disputes in that year, 13,933 days, or almost 50 per cent, were on account of this single strike. The year 1953 was marked by frequent minor disputes of which, however, no single disturbance merits special mention. Time lost during 1954 included 6,300 working days in respect of a strike at the Roxburgh hydro-electric construction works, which was the only disturbance of any gravity during that year. Two disputes accounted for over 50 per cent of the working days lost in 1955; a strike at the Roxburgh hydro-electric construction works involved the loss of 17,178 working days, and a dispute over employment conditions in the building and construction industry resulted in the loss of 9,179 days. In 1956 two industrial groups—meat industry, and building and construction—accounted for about two-thirds of the number of working days lost and estimated loss in wages; a group of 11 disputes in the first quarter of 1956 in the freezing works, and one dispute in the building and construction group in the second quarter of 1956 contributing most of the figures recorded against these two industrial groups.

Data for 1956 relating to the remaining tables in this Section were not available at the time of going to press.

NATURE AND DURATION.—The next table shows the nature of the disputes and the number of workers involved during the years 1945–55.

YearNature of DisputeNumber of Workers Involved
Direct StrikeSympathetic StrikePartial Strike*LockoutTotalDirect StrikeSympathetic StrikePartial Strike*LockoutTotal

* I.e., where no actual cessation of work, but a “go slow” or other policy of protest adopted.

194514518 15436,6983342,386 39,418
19469213 9615,283270143 15,696
194712347 13419,4951,9585,517 26,970
19489038 10123,7454804,269 28,494
194911634 12359,6481,088800 61,536
1950129   12991,492   91,492
195158483 10922,42713,878573 36,878
195250   5016,297   16,297
195373   7322,175   22,175
195461   6116,153   16,153
19556221 6520,04412357 20,224

The table following illustrates the duration of disputes during 1955.

DurationNumber of DisputesNumber of Firms AffectedNumber of Workers InvolvedNumber of Working Days LostEstimated Loss in Wages£
1 day and less417311,6236,40619,761
Over 1 day but not over 2 days671,5171,9055,981
Over 2 days but not over 3 days228672251,905
Over 3 days but less than 1 week661514471,233
1 week but less than 2 weeks7174,60721,29376,075
2 weeks but less than 4 weeks1181817,17865,000
4 weeks but less than 8 weeks286414,58915,332
8 weeks and over     
      Totals6511420,22452,043185,287

GEOGRAPHICAL DISTRIBUTION.—The following table shows the number of disputes in each industrial district for the years 1951–55 and also the number of workers involved. In 1955 the Northern District had the greatest number of strikes, and also the greatest number of workers involved. The building and construction, coal-mines, and waterfront industries accounted for most of the workers involved in the Northern District disputes for 1955.

YearNorthernTaranakiWellingtonMarlboroughNelsonWestlandCanterburyOtago and SouthlandTotal
Number of Disputes
195144722151299109
19523 3 101211150
195317 4 73141073
195418 9  255461
19553025  173865
Number of Workers Involved
195114,6461,18610,1001909813,7673,6842,32436,878
19528,521371,777 2,1822,2671401,37316,297
195311,441 348 2,0625,4712,02183222,175
19546,446 1,925  4,7281,5171,53716,153
195510,5751321,142  3,8681,4663,04120,224

NOTE.—A dispute extending into more than one industrial district is, in the table “Number of Disputes,” allocated to that district which includes the greatest number of the workers involved. The actual (or occasionally estimated) numbers of workers in the several districts are, however, correctly distributed.

INDUSTRIAL DISTRIBUTION.—In the following table industrial disputes are classified according to the industrial groups in which disputes took place, this grouping being similar to that used in the compilation of wage and industrial-union statistics.

Industrial Group19511952195319541955
Number of Disputes
Provision of—
  Food, drink, etc.2956810
  Clothing, footwear, and textiles  21 
  Building and construction3391124
  Power, heat, and light  111
  Transport by water and air125135
  Transport by land132512
  Accommodation, meals, and personal service  12 
Working in or on—
  Wood, etc.2 13 
  Metal2 112
  Stone, clay, glass, chemicals, etc.4  22
  Paper, printing, etc.     
  Skins, leather, etc.     
  Mines and quarries—
    Coal mines4034462618
    Gold mines1    
  The land (farming pursuits)     
Miscellaneous31 21
      Totals10950736165
Number of Workers Involved
Provision of—
  Food, drink, etc.8,2171,2742462,3481,907
  Clothing, footwear, and textiles  2,10014 
  Building and construction1,0922611,8453,4446,092
  Power, heat, and light  3950519
  Transport by water and air14,9054,2621,0083,5444,173
  Transport by land3,9154,2001781321,478
  Accommodation, meals, and personal service  971612 
Working in or on—
  Wood, etc.24 292217 
  Metal12 7,0506270
  Stone, clay, glass, chemicals, etc.321  180669
  Paper, printing, etc.     
  Skins, leather, etc.     
  Mines and quarries—
    Coal mines7,8396,2278,4464,9284,996
    Gold mines105    
  The land (farming pursuits)     
Miscellaneous44873 167820
      Totals36,87816,29722,17516,15320,224

Out of a total of 358 disputes during the five years 1951–55, 165 disputes, involving 32,541 workers, occurred in the mining and quarrying group; 58 involving 13,992 workers in the group covering provision of food, etc. (mainly meat freezing); 26 involving 27,892 workers in the group covering transport by water and air (mainly waterfront industries); 50 involving 12,734 workers in the building and construction group; 23 involving 9,903 workers in the group covering transport by land; while in the metal-working group there were 6 disputes involving, however, 7,194 workers. A more detailed analysis of disputes occurring during 1955 is given below.

Industrial GroupNumber of DisputesNumber of Firms AffectedNumber of Workers InvolvedNumber of Working Days LostEstimated Loss in Wages £
DirectlyIndirectlyTotal
Provision of—
  Food, drink, etc.10121,1577501,9071,9982,287
  Clothing, footwear, and textiles       
  Building and construction24316,079136,09233,102128,593
  Power, heat, and light1119 193888
  Transport by water and air5304,173 4,1731,4506,755
  Transport by land271,464141,478460902
  Accommodation, meals, and personal service       
Working in or on—
  Wood, etc.       
  Metal2270 7073213
  Stone, clay, glass, chemicals, etc.282374326694,17514,319
  Paper, printing, etc.       
  Skins, leather, etc.       
  Mines and quarries—
    Coal mines18223,9181,0784,99610,33731,200
    Gold mines       
  The land (farming pursuits)       
Miscellaneous11820 820410930
    Totals6511417,9372,28720,22452,043185,287

CAUSES.—In the next table the causes of disputes which occurred during the years 1951–55 are shown. Under the heading “Wages” are included disputes concerning wages, overtime, or rates for piecework.

Disputes concerning the employment or non-employment of certain classes of persons are included under the heading “Employment.” This question usually arises in connection with industrial union affairs, such as, for instance, the dismissal of a worker on allegedly insufficient grounds, or formerly the employment of non-unionists. Since 1936, however, all adult workers who are subject to any award or industrial agreement have been required, unless specially exempted, to be members of a union, and except when there are no unionists available an employer may not employ a non-union.

“Other working conditions” are of diverse nature, but some may be mentioned as follows: distribution of work in coal mines and on wharves, conveyance to and from work, atmospheric conditions in coal mines, accommodation on ships, numbers of men to be allocated to certain duties, supply of food, method of handling cargo.

Under the heading “Sympathy” are included all disputes caused by workers striking not on account of a grievance arising out of their own wages or conditions, but in sympathy with the demands of other workers.

Cause19511952195319541955
Number of Disputes
Wages208201811
Hours11  1
Employment1311131721
Other working conditions21210815
Sympathy47   2
Other causes2618301815
      Totals10950736165
Number of Workers Involved
Wages12,3511,4993,3754,1322,990
Hours2,5461,587  860
Employment1,5242,0961,9034,0307,642
Other working conditions8061,6612,4771,8572,573
Sympathy13,873   123
Other causes5,7789,45414,4206,1346,036
      Totals36,87816,29722,17516,15320,224

There is a strong correlation between “Other causes” in the table shown above, “Voluntary return to work” in the table immediately following, and the “Indeterminate” result in the table on the next page.

A further analysis by causes for the year 1955 will be found on page 1090.

METHODS OF SETTLEMENT.—Following is a table showing the methods of settlement of disputes during the years 1951–55. “Negotiations under Act” from 1952 covers negotiations under the Industrial Relations Act only. Negotiations supposedly under the Industrial Conciliation and Arbitration Act and the Labour Disputes Investigation Act were included under this heading in previous years, but are now treated as “Intervention of third party” . “Voluntary return to work” includes such cases as “Protest” absence and stop-work meetings. “Substitution” implies the engagement of other workers. Other headings are self-explanatory.

Method of Settlement19511952195319541955
Number of Disputes
Negotiations under Act1    
Private negotiations between parties1223202026
Intervention of third party123869
Substitution     
Voluntary return to work5918443025
Other256155
      Totals10950736165
Number of Workers Involved
Negotiations under Act14    
Private negotiations between parties1,1083,4454,1382,5567,233
Intervention of third party3,5867976422,6832,494
Substitution     
Voluntary return to work18,29411,02117,3449,8059,509
Other13,8761,034511,109988
      Totals36,87816,29722,17516,15320,224

Further information for the year 1955 is given in the next table.

Method of SettlementNumber of DisputesNumber of Firms AffectedNumber of Workers InvolvedNumber of Working Days LostEstimated Loss in Wages £
Negotiations under Act     
Private negotiations between parties26337,23318,29568,481
Intervention of third party9162,49423,07781,902
Substitution     
Voluntary return to work25579,5096,07920,344
Other589884,59214,560
      Totals6511420,22452,043185,287

RESULTS.—In compiling the table which follows no dispute has been included as ending in favour of either employers or workers unless the result has been beyond question. In cases where workers have made more than one demand, succeeding in one or more and failing in one or more, or where they have made one or more demands and in respect of each have been partially successful only, the result has been treated as a compromise. Where strikers have returned to work without any definite decision being arrived at regarding the demands made, or where (as in the case of a sympathetic strike) no definite demand has been made, or where a strike is merely by way of a protest, the result has been recorded as indeterminate.

RESULTS OF DISPUTES

Result19511952195319541955
Number of Disputes
In favour of workers101251113
In favour of employers31388
Compromise1816211114
Indeterminate7821443130
      Totals10950736165
Number of Workers Involved
In favour of workers7742,1582052,4852,757
In favour of employers8,6212809711,073,168
Compromise4,3902,8024,2532,9683,845
Indeterminate23,09311,05716,7469,62712,454
      Totals36,87816,29722,17516,15320,224
Number of Working Days Lost
In favour of workers1,8053,5092408,0959,512
In favour of employers445,6315609711,210713
Compromise20,12316,7516,4205,68531,049
Indeterminate689,8317,30311,6605,48410,769
      Totals1,157,39028,12319,29120,47452,043

Of disputes ending definitely in favour of one party or the other during the five years, workers succeeded in 51 instances and employers in 23. In the previous five years (1946–50) workers were successful in 137 instances and employers in 58.

CAUSES AND RESULTS.—In the following table the causes and results of disputes occurring during 1955 are shown in conjunction.

ResultCause
WagesHoursEmploymentOther Working ConditionsSympathyOtherTotal
Number of Disputes
In favour of workers3145  13
In favour of employers1 33 18
Compromise3 821 14
Indeterminate4 6511430
      Totals111211521565
Number of Firms Affected
In favour of workers31109  23
In favour of employers1 33 18
Compromise6 1121 20
Indeterminate9 6714063
      Totals1913021241114
Number of Workers Involved
In favour of workers132860922843  2,757
In favour of employers57 961131 191,168
Compromise832 2,8616983 3,845
Indeterminate1,969 2,8981,530406,01712,454
      Totals2,9908607,6422,5731236,03620,224
Number of Working Days Lost
In favour of workers6412154,3414,315  9,512
In favour of employers143 47585 10713
Compromise3,353 26,932100664 31,049
Indeterminate729 3,3513,370803,23910,769
      Totals4,86621535,0997,8707443,24952,043
Estimated Loss in Wages
 £££££££
In favour of workers1,5231,86015,00414,052  32,439
In favour of employers309 1,082227 291,647
Compromise9,063 105,5923602,200 117,215
Indeterminate1,781 10,1009,76730012,03833,986
      Totals12,6761,860131,77824,4062,50012,067185,287

Chapter 42. SECTION 42—INDUSTRIAL ACCIDENTS

Table of Contents

GENERAL.—As a result of an international conference of official statisticians held at Geneva in 1923, under the auspices of the International Labour Office set up by the League of Nations, the collection and compilation of statistics of industrial accidents on substantially uniform lines was undertaken in the principal countries. Collection of statistics of industrial accidents in New Zealand commenced in 1924, and descriptions of the methods adopted and coverage achieved have appeared in earlier issues of the Year-Book.

The present Section relates in particular to the years 1951 to 1955, and continues the new series of statistics of industrial accidents commenced in 1949, with a further revision in 1951. These changes actually dated in each case from 1 April of the years mentioned, but it was found possible to assimilate the pattern of the first three months of 1951 to that of the remainder of the year so as to continue the presentation of these statistics on a calendar-year basis. A discontinuity still remains, however, as regards new fields of accidents which were brought within the scope of the statistics from 1 April 1949, on which see further remarks later.

The main reason for the lack of comparability of the statistics for recent years presented in this Section with those for earlier periods was the existence of a State monopoly of workers' compensation insurance, which was introduced on 1 April 1949 and terminated on 31 March 1951, the relevant legislation being contained in the 1947 and 1950 amendments respectively to the Workers' Compensation Act. Information regarding accidents which occurred outside the Public Service during the operation of the monopoly, by arrangement with the State Fire and Accident Insurance Office, was derived from claims for compensation, and not as previously from notifications made to the Department of Labour of accidents taking place, each notification being supplemented by subsequent inquiry as to the final result of the accident.

In 1951, despite the closing of the monopoly, the extended coverage was maintained, and even improved, through the assistance of the Workers' Compensation Board, so that a high degree of comparability—if not in the analysis, at any rate in total—exists between the statistics for 1950 and those for subsequent years. (The effect of an amended definition of the term “accident” is discussed later.) The improvements in the coverage relate principally to marine and waterfront work (for which the statistics for 1950 are not claimed to be complete), some local authorities, and a few businesses which by special arrangement carry their own compensation insurance—in general there is a statutory liability to insure.

The chief fields still remaining uncovered were Government Departments, other than the Government Printing and Stationery Department and those Departments enumerated in the following tables. Negotiations, however, have resulted in the reporting of accidents in all Government Departments from the beginning of 1956, and these accidents will be included in future statistics. In only a few cases of minor importance are employees of the State covered by compensation insurance.

In 1952 the gap existing since 1948 in the calculation of accident frequency and severity rates for non-Government industrial activities was bridged, the basis for the calculations (man-hours worked) having been computed on an industry level by the Department of Labour. A similar basis has been used for subsequent years.

Until 1 December 1951 no compensation was payable for absence from work of less than three days. Since the repeal of this provision, effective from 1 December 1951, all accidents have been included where disability lasted beyond the day (or shift) in which the accident occurred.

In comparing the number of accidents in 1951 with those in other years, especially in tables by industrial groupings, it is necessary to bear in mind the serious industrial dispute in certain industries during that year, which lasted some five months and involved a loss of 1,156,000 working days to industry. Workers were thus not exposed to risk of accident over the complete year in some industries. Also changes in procedures following the termination of the Government monopoly of workers' compensation insurance affected, in some cases seriously, comparability in the statistics of industrial accidents for the years 1951 and 1952.

In fact, the tabulations for the year 1951 include late returns received up to October of 1953 and the 1952 tabulations include late returns received up to November of 1953 (one month later). Late receipts usually relate to the more serious accidents where long absences from work or lengthy negotiations prevent returns being completed at an earlier date, and in some cases these accidents date back to earlier years.

A survey of the 1953 returns shows that there were 1,075 reports of accidents occurring in years prior to 1953. Included in this total were 12 fatal accidents, 2 resulting in permanent total disability, and 165 in permanent partial disability.

Under new arrangements with insurance companies, etc., accident reports are being received at quarterly intervals, and August of the following year has been fixed as the date up to which late receipts of returns will be included in respect of the statistics for any particular year.

This new arrangement does not apply to tabulations in respect of annual periods prior to 1953, but ensures that the statistics from 1953 onwards are comparable.

The changes in the methods, etc., of handling this class of accident insurance over recent years have presented serious problems in the treatment and compilation of the statistics of industrial accidents.

NUMBER OF ACCIDENTS AND AMOUNT OF COMPENSATION PAID.—The distribution of industrial accidents in 1954 and 1955, according to the source of information, is indicated in the following table.

In this and in the subsequent tables the compensation figures include damages awarded by the judgment of a Court or by private negotiation, medical and travelling expenses, and, in cases of fatal accidents, funeral expenses also. The average amount of compensation per accident under any heading is greatly influenced by the proportionate number of accidents included which terminate fatally or result in permanent disability.

ClassTotal AccidentsFrequency Rate (Accidents Per 100,000 Man-hours Worked)Total Compensation or Damages PaidCompensation Per Case
19541955195419551954195519541955
 ££££
Private industry (excluding mining) and local authorities33,57935,2412.8732.9291,559,3321,687,87646.447.9
Ministry of Works7667995.1865.23134,58850,30645.263.0
State Hydro-electric Department2662874.2794.56426,9526,567101.322.9
New Zealand Forest Service3843519.7208.90111,3438,97929.525.6
Railways2,1972,1714.0484.05779,40461,82836.128.5
Post and Telegraph7527852.0421.99819,36820,73825.826.4
Mining and quarrying2,6372,40420.54419.887149,895137,98756.857.4
    All classes40,58142,0383.1273.1521,880,8821,974,28146.347.0

In the table following, industrial accidents during the year 1955 are classified into certain important industrial groups. The New Zealand Standard Industrial Classification of all Economic Activities has recently been adopted, so that the table is not strictly comparable with those published prior to 1951. The time lost through accidents is shown in man-days, the days being calendar, not working, days.

Industrial GroupTotal AccidentsTime Lost (Calendar Days)Total Compensation (Including Damages)
TotalAverageTotal £Average £
Agriculture, forestry, hunting, and fishing—
  Agriculture and livestock production3,300351,000106185,90256.3
  Forestry and logging1,119131,35811761,80655.2
  Hunting, trapping, and game propagation545,263972,55647.3
  Fishing5115,9163182,71353.2
Mining and quarrying—
  Coal mining2,146122,32657108,55150.6
  Metal mining191,115591,00252.7
  Crude petroleum and natural gas2223112288144.0
  Stone quarrying, clay and sand pits23163,76627627,933120.9
  Non-metallic mining and quarrying61642721335.5
Manufacturing—
  Food5,737241,96042204,89435.7
  Beverages2356,884296,68228.4
  Tobacco512,608511,67332.8
  Textiles35521,6366117,89050.4
  Footwear, other wearing apparel, and made-up textile goods37318,4434911,10729.8
  Wood and cork (excluding furniture)2,104178,40485109,08251.8
  Furniture and fixtures31929,9559418,16756.9
  Paper and paper products39413,7493511,76929.9
  Printing, publishing, and allied industries20311,652577,78338.3
  Leather and leather products (except footwear)1097,253675,66552.0
  Rubber products25618,7537314,00654.7
  Chemicals and chemical products60118,7843119,04231.7
  Products of petroleum and coal36842231,09830.5
  Products of non-metallic minerals95879,8088352,65755.0
  Metal products (except machinery and transport equipment)83554,4736538,48846.1
  Machinery (except electrical machinery) and general engineering1,80299,7585571,70639.8
  Electrical machinery, apparatus, appliances, and supplies26716,6456211,64243.6
  Transport equipment1,54395,9536257,98337.6
  Miscellaneous industries977,568783,77838.9
  Construction6,943576,52983355,42751.2
Electricity, gas, water, and sanitary services—
  Electricity, gas, and steam80175,4449444,34355.4
  Water and sanitary services19619,024977,12436.3
Commerce—
  Wholesale and retail trade2,609179,41069112,87443.3
  Banks and other financial institutions81331715419.3
  Insurance41533822857.0
  Real estate4992515037.5
Transport, storage, and communication—
  Transport5,794353,68861273,41247.2
  Storage and warehousing1333,680283,99930.1
  Communication78726,3943420,74826.4
Services—
  Government6413,6922144,96977.6
  Community and business63173,02111647,07274.6
  Recreation15023,01715313,25888.4
  Personal71061,0958634,43448.5
III defined and not specified125251313.0
      Totals42,0383,021,663721,974,28147.0

The following table shows, for the last five years available, the average compensation paid, in conjunction with the extent of disability.

YearFatalityPermanent DisabilityTemporary DisabilityTotal
Number of CasesAverage Amount of CompensationNumber of CasesAverage Amount of CompensationNumber of CasesAverage Amount of CompensationNumber of CasesAverage Amount of Compensation
  £ £ £ £
1951711,728.3827669.132,59125.233,48944.6
1952541,544.9495473.036,65222.837,20130.8
1953561,385.6782703.038,68524.139,52339.5
1954621,649.8961808.439,55825.340,58146.3
1955631,918.6982773.840,99326.742,03847.0

The maximum amount, irrespective of medical and funeral expenses, which may be paid in respect of fatalities under the Workers' Compensation Act was raised from £1,000 to £1,500 in April 1948, with a new provision that no deduction was to be made from this amount on account of any weekly payments due to incapacity prior to the occurrence of death unless these payments exceeded £250 in total. From September 1949 this maximum amount was raised to £1,750, and by the Workers' Compensation Amendment Act (No. 2) 1951 was increased from December 1951 to £2,000, with a maximum of £300 from weekly payments before reduction of the principal amount was to become effective. From September 1953 the maximum amount was raised to £2,150 by the Workers' Compensation Amendment Act 1953, the maximum from weekly payments remaining unchanged. To give effect to the general order of the Court of Arbitration increases were gazetted under the Workers' Compensation Order 1953, the maximum amount being £2,370, with a maximum of £330 from weekly payments before reduction of the principal amount became effective. Under the Workers' Compensation Order, effective from December 1954, the maximum amount became £2,430 with a maximum of £340 from weekly payments before reduction of the principal amount, which figures were increased by the Workers' Compensation Order 1956 to £2,540 and £350 (see Section 38F of this issue). It should also be remembered that the dependants of a worker accidently killed may take proceedings at common law (where negligence must be proved), in which case the amount of compensation depends on the verdict of the jury, and it is not limited to the statutory maximum under the Act. Similar action is also taken by the worker himself in some cases of permanent disability, or serious injury, where negligence is considered to have caused the accident.

CAUSE OF ACCIDENT AND RESULTING DISABILITY.—Accidents are divided according to the resulting disability into four classes—fatal accidents, accidents causing temporary disability, accidents causing permanent partial disability, and accidents causing permanent total disability. Few cases of total disability occur in New Zealand.

The following table relates cause of accident and degree of resulting disability for the five-year period 1951–55.

CauseFatalityPermanent Disability*Temporary DisabilityTotalPercentage of Total Accidents

* Including permanent total disability cases as follows: 1951, 6; 1952, 2; 1953, 3; 1954, 4; 1955, 6; total, 21.

Machinery291,80029,95231,78116.5
Farming equipment24912,4412,5561.3
Vehicles11122712,32212,6606.6
Electricity18184054410.2
Explosions, fires, and hot substances10504,1124,1722.2
Poisonous and corrosive substances6131,6531,6720.9
Falls of persons2440222,10022,52611.7
Stepping on or striking against fixed objects—
  Stepping on 12,0962,0971.1
  Striking against1566,3806,4373.3
Falling objects, not being handled by the person injured481717,4017,6204.0
Handling of objects—
  Heavy748644,95845,45123.6
  Sharp 5910,22310,2825.3
  Hand trucks 333,6013,6341.9
  Continual handling 79439500.5
Hand tools246328,55629,02115.0
Animals and insects7692,8952,9711.5
Miscellaneous191018,4418,5614.4
      Totals3064,047188,479192,832100.0

Similar information is now given according to employment group.

Employment GroupFatalityPermanent Disability*Temporary DisabilityTotalPercentage of Total Accidents

* Including permanent total disability cases as follows: 1951, 6; 1952, 2; 1953, 3; 1954, 4; 1955, 6; total, 21.

Private industry (excluding mining) and local authorities2323,719154,942158,89382.4
Ministry of Works16473,9173,9802.0
State Hydro-electric Department8181,2811,3070.7
New Zealand Forest Service1181,9291,9481.0
Railways Department255411,24111,3205.9
Post and Telegraph Department3153,0933,1111.6
Mining and quarrying2117612,07612,2736.4
      Totals3064,047188,479192,832100.0

Further information on resulting disability, by industrial groups, will be found in the table on pages 1100–1101.

AGE OF WORKER.—The following table supplies a percentage distribution of accidents, recorded during each of the years 1951–55, according to age group of the person injured.

Age (Completed Years)19511952195319541955
No. of CasesPer Cent of TotalNo. of CasesPer Cent of TotalNo. of CasesPer Cent of TotalNo. of CasesPer Cent of TotalNo. of CasesPer Cent of Total
Under 162070.62390.62670.73050.83250.8
16–203,91011.74,30411.64,34411.04,66311.54,93111.7
21–244,45413.34,70712.75,02912.75,01512.44,93311.7
25–348,34324.99,43525.410,34926.210,68626.310,87125.9
35–446,71120.07,36719.87,89520.07,95619.68,30619.7
45–544,81414.45,63815.15,98715.16,45415.96,62515.8
55–642,4087.22,6477.12,7687.02,7936.93,0547.3
65 and over5531.76041.66171.66291.57441.8
Not stated2,0896.22,2606.12,2675.72,0805.12,2495.3
      Totals33,489100.037,201100.039,523100.040,581100.042,038100.0

NATURE OF INJURY.—A classification of accidents according to injury sustained gives the following results of the years 1951–55.

Injury19511952195319541955Total, 1951–55
Bruises, contusions, and abrasions8,7629,3627,0477,3447,85840,373
Burns1,2061,3111,4301,6871,5177,151
Concussions2092482121912461,106
Lacerations, punctures, and open wounds9,54110,28711,75011,92312,10155,602
Ruptures3532963823973551,783
Amputations3182602363693831,566
Dislocations2372432482432491,220
Fractures2,8762,8863,8543,9954,25717,868
Sprains and strains7,9179,47811,50212,03112,23253,160
Occupational dermatitis4124805435466132,594
Other and ill-defined1,6582,3502,3191,8552,22710,409
      Totals33,48937,20139,52340,58142,038192,832
Cases where septic poisoning occurred—
  Number3,8793,7523,7125,0635,52921,935
  Percentage of all accidents11.610.19.412.513.211.4

Of the septic cases shown in the proceeding table, 20.8 per cent occurred in the handling of sharp objects (including pricks and scratches by bones and thorns in slaughtering and packing operations), and 22.8 per cent in the use of hand tools.

PART OF BODY INJURED.—The number and percentage of cases in which different parts of the body were injured in industrial accidents is given in the following table for the years 1951–55.

Part of Body Injured19511952195319541955Total 1951–55Per Cent
Head5876576816558123,3921.8
Eyes1,1851,5041,6081,6821,8347,8134.0
Rest of face4665546276446202,9111.5
Neck7778736 
Back and chest4,7025,4356,0686,0836,55228,84015.0
Abdomen and contents4254144785114612,2891.2
External genitals81116733 
Upper limbs—
  Collarbone and shoulder1,0291,2341,2971,3241,4256,3093.3
  Arm2,1232,0292,2812,4692,43211,3345.9
  Hand and wrist11,92312,57013,38214,33614,10266,31334.4
Lower limbs—
  Hip, thigh, and leg4,3854,7584,9895,2055,42424,76112.8
  Ankle and foot4,0994,7915,0535,0505,48624,47912.7
Multiple or undefined2,5503,2473,0412,6082,87614,3227.4
      Totals33,48937,20139,52340,58142,038192,832100.0

DURATION OF INCAPACITY.—A further measure of severity in cases of temporary disability is the length of absence from work resulting from the accident.

A summary of this aspect and the number of cases of fatality, permanent total, and permanent partial disability is given below for the years 1952 to 1955, together with the totals for the five-year period 1951–55.

Duration1952195319541955Total, 1951–55
NumberPer CentNumberPer CentNumberPer CentNumberPer CentNumberPer Cent
1 week or under10,07627.111,81829.812,01829.612,88130.654,53628.3
Over 1 week to 2 weeks11,35430.511,29528.611,80429.111,88528.356,61229.3
Over 2 weeks to 4 weeks8,50722.88,31921.18,61521.28,95821.342,29921.9
Over 4 weeks to 6 weeks3,0088.13,0167.63,0997.73,1797.615,0687.8
Over 6 weeks to 13 weeks2,7497.43,1137.93,0167.43,1037.414,7837.7
Over 13 weeks to 6 months7712.18942.38092.07721.84,0532.1
Over 6 months1870.52300.61970.52150.51,1280.6
Number of accidents resulting in—
  Temporary disability36,65298.538,68597.939,55897.540,99397.5188,47997.7
  Fatality540.2560.1620.1630.23060.2
  Permanent total disability2 3 4 6 21 
  Permanent partial disability4931.37792.09572.49762.34,0262.1
      Totals37,201100.039,523100.040,581100.042,038100.0192,832100.0

In many cases the injured employee did not cease work immediately, a considerable period intervening in some instances. The following table shows by broad industrial (employer) groups, for such cases occurring during the year 1955, the length of time elapsing before the employee left work.

Private Industry (Excluding Mining) and Local AuthoritiesMinistry of WorksState Hydro-electric DepartmentNew Zealand Forest ServiceRailways DepartmentPost and Telegraph DepartmentMiningTotal
Period Elapsing
1 week or less8,172158806190428861210,275
Over 1 week and up to 2 weeks8372466522435984
Over 2 weeks8041952432226921
      Totals9,813201916999933467312,180
Percentage of all accidents (i.e., percentage of delayed-action cases to total accidents in each class)27.825.231.719.746.042.528.029.0

The preceding table indicates that many employees suffering from minor injuries pay little attention to such injury, especially in the case of slight cuts, strains, or abrasions. This neglect often causes more severe pain (or with cuts and abrasions, septic poisoning), and the absence then enforced is usually longer than if the injury had received immediate attention. Lost time prior to 1 December 1951 usually entailed a reduction in wages, especially if the injury resulted in under three days' absence, in which case no compensation was payable. Further, in the case of apprentices, lost time has to be made up at the termination of the period of apprenticeship, and these two considerations have probably militated against the worker ceasing work immediately on account of a minor injury. In many cases efforts are being made on the part of employers, by the establishment of first-aid posts, to reduce aggravation of injuries through neglect.

One of the main responsibilities of the Workers' Compensation Board is the reduction of the accident rate in industry. It has sponsored the National Safety Association, comprised of representatives of industry and interested Government Departments, with an objective of preventing accidents and lessening human suffering and loss arising from injuries received at work and elsewhere.

Further, the Board in conjunction with the Department of Health has opened an Industrial Health Centre in Penrose, Auckland, and is prepared to assist in the establishment of further centres in areas of concentrated industrial activity. Also, the Department of Health is associated with other industrial health centres in Auckland, Wellington, Lyttelton, Christchurch, and Dunedin.

ACCIDENT SEVERITIES.—Severity rates are calculated according to the formula: man-hours lost through accidents per 100,000 man-hours worked. Man-hours lost are obtained for this purpose from the figures of calendar days lost, a summary of which has been given on page 1093. In the case of fatal accidents and accidents resulting in permanent disability the assessment for time lost may or may not take into account variations in the expectation of working life destroyed by the accident, in accordance with the age of the worker killed or permanently injured. In view of the fact that the age of the individual is not particularly relevant to the character of the hazard from which the injury has occured, for the purpose of calculating the accident severity rates shown later, a constant loss of 9,545 calendar days is counted for each fatality irrespective of the age of the person at the time of death. The effect of taking into account the actual age is shown in the Statistical Report on Industrial Accidents. In respect of permanent partial disablement the time lost is assessed on the basis of a proportionate part of the time lost in connection with injuries resulting in death or permanent total disablement. For example, the total loss of hearing is regarded as a 50-per-cent disability—that is, the time lost on account of impaired working capacity in this case is assessed as 50 per cent of 9,545 calendar days—i.e., 4,773 calendar days. The respective percentages applying to the various categories of permanent disablement which are used in such assessments are those set out in the First Schedule to the Workers' Compensation Act 1956.

A simpler concept is that of “average time charge,” which is measured by the total time lost (including assessments for fatalities and permanently disabling injuries) divided by the number of accidents. This rate is shown in the following table as “calendar days (i.e., man-days) lost per accident.”

19511952195319541955

* Data on which to compute not available.

Total cases resulting in—
  Fatality7154566263
  Permanent total disability62346
  Permanent partial disability821493779957976
  Temporary disability32,59136,65238,68539,55840,993
      Totals33,48937,20139,52340,58142,038
Calendar days lost per accident (i.e., time charge)9554687272
Man-hours lost per 100,000 man-hours worked (i.e., severity rate)*1,0081,3151,3801,394

Severity rates had since 1948 been calculated for certain Government Departments only; accordingly no figures appear for 1951 in the last line of the foregoing table. But since 1952 the basis of the calculations (man-hours) has again been available on an industry basis. In 1955 one hour was lost as a result of such accidents out of every seventy-two hours worked in the industries covered. Severity rates of the Government Departments are now shown for the years 1954 and 1955; the corresponding frequency rates have already been set out in the table on page 1092.

Ministry of WorksState Hydro-electric DepartmentNew Zealand Forest ServiceRailways DepartmentPost and Telegraph DepartmentTotal
195419551954195519541955195419551954195519541955
Total cases resulting in—
Fatality242   3 1185
Permanent disability10910 54167314421
Temporary disability7547862542873793472,1782,1647487834,3134,367
      Totals7667992662873843512,1972,1717527854,3654,393
Calendar days lost per accident (i.e., time charge)61114219174236482832345745
Man-hours lost per 100,000 man-hours worked (i.e., severity rate)1,8213,8385,3465152,3091,9041,1017193723981,2301,034

Severity rates for any year are greatly affected by the number of serious accidents in that year. In the following cumulative table for the five years 1951–55 this effect is minimized by the larger number of accidents.

Ministry of WorksState Hydro-electric DepartmentNew Zealand Forest ServiceRailways DepartmentPost and Telegraph Department

* Four years only, 1952–55.

Number of accidents resulting in—
Fatality1681253
Permanent disability4718185415
Temporary disability3,9171,2811,92911,2413,093
      Totals3,9801,3071,94811,3203,111
Number of accidents per 100,000 man-hours worked (frequency rate)5,1404,5619,5454,405*1,701
Calendar days lost per accident (time charge)91113364037
Hours lost per 100,000 man-hours worked (severity rate)2,9823,2982,0681,082*362

In the following table, which covers the years 1951–55, accidents are classified by industrial group, the time charge for each group and an analysis by extent of disability being shown.

Industrial GroupNumber of Accidents Resulting In—Calendar Days Lost Per Accident (Time Charge)
FatalityPermanent Total DisabilityPermanent Partial DisabilityTemporary DisabilityTotal
Agriculture, forestry, hunting, and fishing—
Agriculture and livestock production51345714,69415,205114
Forestry and logging2611185,6755,820105
Hunting, trapping, and game propagation4 8317329191
Fishing1 424424989
Mining and quarrying—
Coal mining11112010,49710,62954
Metal mining1 23544568111
Crude petroleum and natural gas   131342
Stone quarrying, clay and sand pits91319821,023179
Non-metallic   404027
Manufacturing—
Food3234627,05127,40238
Beverages  291,2581,28754
Tobacco, cigars, and cigarettes  627227852
Textiles1 731,7351,80976
Footwear, other apparel, and made-up textile goods  401,7611,80150
Wood and cork713229,5609,89080
Furniture and fixtures  921,3861,47891
Paper and paper products1 311,2901,32255
Printing, publishing, etc.1 45928974102
Leather and leather products  2154756874
Rubber products122794497497
Chemicals and chemical products  452,6372,68256
Products of petroleum and coal 18222231138
Non-metallic mineral products7 804,2514,33864
Metal products3 1073,3083,41873
Machinery, founding and general engineering2 1707,6677,83958
Electrical machinery, appliances, and supplies1 311,2531,28563
Transport equipment5 1526,9547,11160
Miscellaneous1 1745747582
Construction58171028,51129,28080
Electricity, gas, water, and sanitary services—
Electricity, gas, and steam193593,5293,610112
Water and sanitary services11785886759
Commerce—
Wholesale and retail trade20125312,36112,63570
Financial   454515
Insurance1 53844423
Real estate  13233143
Transport, storage, and communication—
Transport57338226,09126,53367
Storage and warehousing  453453835
Communication3 153,1033,12137
Services—
Government2 230631094
Community and business6 652,7512,822110
Recreational2 30603635142
Personal1 883,1913,28075
Ill-defined or not stated  23941140
      Totals306214,026188,479192,83272

TIME OF OCCURRENCE.—The following tabulation of industrial accidents, according to the hour of occurrence, shows the effects of fatigue during the working day.

Time of Occurrence to Nearest HourYearCause 1951–55
19511952195319541955MachineryFalls of PersonsHandling ObjectsHand ToolsOtherTotal, 1951–55
8 a.m.1,1571,3961,4651,4511,5161,1989972,0878971,8066,985
9 a.m.2,8773,2673,3983,5683,6063,0871,8815,5442,7453,45916,716
10 a.m.4,2314,7634,9335,1675,1874,1592,7208,0914,0975,21424,281
11 a.m.4,4945,1105,3485,6185,6414,6702,6858,9204,3695,56726,211
12 noon2,2132,3632,7092,7112,7992,3861,6743,5552,2422,93812,795
1 p.m.1,1171,2751,4551,4861,5241,4558731,6671,0381,8246,857
2 p.m.3,4193,8664,0024,2314,3363,8562,0586,1993,4494,29219,854
3 p.m.3,9054,2844,4734,4944,7854,0802,6947,1263,5264,51521,941
4 p.m.3,4353,7564,1004,1854,2833,9372,5056,3063,0114,00019,759
5 p.m.1,6501,8681,9822,0462,1891,6421,3862,7221,3472,6389,735
Other hours2,5792,9093,0742,9283,1542,4472,4173,9201,1164,74414,644
Not stated1,7161,7571,8911,7491,8381,1686293,5101,1282,5168,951
Not applicable6965876939471,180827670563,2884,103
      Totals33,48937,20139,52340,58142,03834,16722,52660,31729,02146,801192,832

This table indicates that accidents are most numerous during the middle and later part of the morning; there is another peak in mid-afternoon, but this does not reach the same high point.

A more definite indication is given by the length of time the employee had worked on the day when the accident occurred.

Number of Hours Already WorkedYearCause, 1951–55
19511952195319541955MachineryFalls of PersonsHandling ObjectsHand ToolsOtherTotal, 1951–55
Under 11,7842,0462,0612,1682,1901,8591,5622,9581,3352,53510,249
1 and under 23,4303,9024,1174,3644,4093,8512,2206,6603,2994,19220,222
2 and under 34,1474,5364,8245,0025,0814,1462,6887,8033,7715,18223,590
3 and under 44,3425,0735,2745,6405,6474,7552,7918,4674,3595,60425,976
4 and under 52,4552,7272,9763,0913,2822,7641,9074,0352,4373,38814,531
5 and under 62,9713,2143,5783,6793,6593,2701,8595,1562,9163,90017,101
6 and under 73,7094,2094,4294,6064,7603,9012,6186,9983,5174,67921,713
7 and under 83,2873,7063,9813,9574,0993,7532,3985,9442,8914,04419,030
8 or over2,4343,0293,2073,2063,6202,6452,1954,6821,9134,06115,496
Not stated4,2354,1724,3833,9214,1113,1412,2816,9442,5275,92920,822
Not applicable6955876939471,180827670563,2874,102
      Totals33,48937,20139,52340,58142,03834,16722,52660,31729,02146,801192,832

The foregoing table shows that the greatest number of accidents occurred during the third and fourth hours worked in the day. Overtime accidents (eight hours or more already worked) represented 8.6 per cent of all accidents in 1955.

Accidents in 1955 were also classified according to the day of the week and the following table presents the detail.

SundayMondayTuesdayWednesdayThursdayFridaySaturdayNot StatedTotal
Number
9278,2478,1337,5687,6826,9542,4537442,038
Percentage of All Accidents
2.219.619.418.018.316.55.80.2100.0

A table of accidents caused by industrial machines according to the month of the year in which the accident occurred, by cause group and injury group is now given.

It would appear that there are more accidents in the winter months in the use of some industrial machines.

Average for Period Shown—
January-FebruaryMarch-MayJune-AugustSeptember-NovemberDecemberTwelve Months
Cause
Prime movers and pumps14131312212
Mechanical power transmission apparatus5523 3
Hoisting apparatus10911811210777109
Conveyors284133312333
Abrasive, grinding, polishing, and buffing equipment273741361734
Agitators, mixing machines, and drum mixers142012171115
Casting, forging, and welding equipment505757562853
Crushers, grinding mills, and pulverizers10128779
Drilling, boring, and turning machines385447462645
Milling machines, planers, and shapers394757473647
Packing and wrapping machines121710191315
Opening, picking, carding, and combing machines123132
Presses434841422042
Rolls15141815915
Saws (woodworking)85104115935096
Saws (metal and other substances)533524
Screening and separating machines312416141320
Sewing and stitching machines712196311
Shears, slicers, and slitters243429272128
Spinning, weaving, and knitting machines61311629
Injury
Fracture of skull, spine, and trunk6106677
Fracture of upper limb294130282432
Fracture of lower limb171921191118
Dislocation without fracture212222
Sprains and strains95102100856693
Head injury (excluding skull fracture)810157610
Internal injury of chest, abdomen, and pelvis1111 1
Laceration, puncture, and open wound of face, neck, and trunk16171010713
Laceration, puncture, and open wound of upper limb199255267227149233
Laceration, puncture, and open wound of lower limb16211614916
Superficial injury, scratches, etc.293834441535
Bruising, crushing, and contusion788882743177
Foreign body in eye or ear182121261321
Burns and scalds353429351331
Injury to nerves and spinal cord 2  11
Other and unspecified14141111912

SAFETY OF MACHINERY.—The Boilers, Lifts, and Cranes Act 1950 and the Machinery Act 1950, which replaced the former Inspection of Machinery Act 1928 and its amendments, are designed to promote the safety of life and limb in the operation of steam boilers, digesters, other steam-pressure vessels, and air-receivers; hydraulic, electric, and other lifts; all types of power-driven cranes and power-driven machinery on land; and machinery used on vessels afloat that are not self-propelled. Nothing in the Acts applies to any machinery driven by manual or animal power, or to any machinery the motive power of which does not exceed one horsepower. Machinery which is used exclusively for farming purposes and does not exceed six horsepower is also exempt from annual inspection.

Boilers, air-receivers and other pressure vessels, lifts, and cranes are required to be of approved design and workmanship, and the moving parts of machinery must be adequately guarded.

All boilers and power cranes are inspected and certificated once per year and lifts twice per year. It is illegal to work a boiler or other pressure vessel or any crane or lift which does not carry a current certificate of inspection issued by the Marine Department.

Particulars of inspections of boilers and machinery by the Marine Department during the years ended 31 March 1955 and 1956 were as follows.

 Number
1954–551955–56
Boiler inspections—
  Fired boilers4,6844,714
  Pressure vessels17,85618,190
  Hydraulic tests2,0533,493
      Total boilers24,59326,397
Machinery inspections—
  Lifts3,5773,592
  Cranes1,1591,517
  Winding engines1831
      Total machinery4,7545,140
      Grand totals29,34731,537

The Acts provide that where loss of life or serious bodily injury to any person occurs by reason of the explosion of a boiler, or as a result of an accident caused by machinery, the explosion or accident must be reported by the owner, and the cause investigated by an Engineer-Surveyor.

Revenue and expenditure in connection with inspection of machinery for the last five years available have been as follows.

£

1951–521952–531953–541954–551955–56
Revenue—
  Inspection fees, etc.18,46018,95117,65025,94832,234
  Examination fees, etc.573728685420521
      Totals19,03319,67918,33526,36832,755
Expenditure44,53044,86547,47945,54850,184

The Boilers, Lifts, and Cranes Act 1950 also provides for the issue of certificates to those who pass the prescribed examinations for land engineers and engine drivers in charge of boilers and machinery, for winding-engine drivers for mining purposes, for drivers employed on locomotives working on railway lines not under the control of the Government Railways Department, and for the drivers of steam traction engines on roads. Certificates are also issued to electric-tram drivers, as provided by the Tramways Amendment Act 1910, and cable-tram drivers' certificates in pursuance of section 75 of the Statutes Amendment Act 1946. The issue of these certificates is controlled by a Board of Examiners set up under the Act, the Chairman being the Chief Engineer-Surveyor.

The total number of candidates examined during the nine months ended December 1955 was 289, of whom 228 were successful in their examinations.

Inspection work under the Machinery Act 1950 by the Department of Labour is the responsibility of Inspectors of Factories, Inspectors of Scaffolding, and Inspectors appointed pursuant to the Bush Works Act 1945. The intention is that Inspectors of Machinery act as technical advisers to these several inspectors. As from 1 January 1951, the date on which the Act commenced to operate, advice on technical issues was obtained from Engineer-Surveyors attached to the Marine Department, these officers having been Inspectors of Machinery under the 1928 Act. Inspectors of Machinery were later appointed to the staff of the Department of Labour.

During the year ended 31 March 1956, the number of requisitions complied with under the Machinery Act 1950 was 3,046, compared with 2,298 in 1954–55, and 1,312 in 1953–54.

Chapter 43. SECTION 43—ISLAND TERRITORIES

Table of Contents

ADMINISTRATION.—New Zealand's first administrative responsibility in respect of areas in the South Pacific was accepted in 1901 when the Cook Islands were brought within the boundaries of New Zealand. In 1902 a Minister in Charge of the Cook Islands was appointed and the Cook Islands Department was formed. In 1920 New Zealand was granted a mandate over the Territory of Western Samoa, and the Samoa Act 1921 provided for the appointment of a Minister and a Department of External Affairs. The staffs of the Cook Islands and the External Affairs Departments were combined, but during some periods there were separate Ministers in charge of each of the main island groups.

Under the External Affairs Act 1943 the Department of External Affairs became responsible for the direction of New Zealand's foreign affairs, including its offices in other Commonwealth countries, while the Department of Island Territories, created under the Island Territories Act 1943, assumed responsibility for the administration of all island territories.

On 1 January 1949 the Tokelau Group, which since 1925 had been administered by New Zealand on behalf of the United Kingdom Government, became part of New Zealand and was placed under the general direction of the Department of Island Territories, although actually administered by the High Commissioner of Western Samoa.

The Chatham Islands, which comprise one of the 129 counties of New Zealand, have had their development seriously retarded by reason of their isolation and consequent lack of direct contact with the mainland. In order to assist in overcoming the disabilities suffered by the people of the Chatham Islands, and to promote the general welfare and development of the islands, the Government, in December 1949, placed their general administration under the Department of Island Territories. A Resident Commissioner is responsible for co-ordination of all Government activities in the islands and also acts as Resident Magistrate.

Besides administering the various island groups, the Department controls the operations of the N.Z.G.M.V. “Maui Pomare” and the purchase and shipping of equipment, stores, etc., to island administrations. In addition, the Department takes an interest in the welfare of islanders in New Zealand, and is associated with the South Pacific Commission and the South Pacific Health Service. The former is an advisory and consultative body set up by the Governments of Australia, France, the Netherlands, New Zealand, the United Kingdom, and the United States of America, all of which are responsible for the administration of non-self-governing territories in the Pacific. The functions of the Commission are to recommend to the member Governments means for promoting the social, economic, and medical welfare of the peoples in the region, and to this end several projects have been organized. The South Pacific Health Service advises member Governments on health matters, collects and distributes epidemiological information, assists in the maintenance of professional staffs, and encourages medical research and the training of indigenous people as assistant medical practitioners and nurses.

The Department is responsible for the conduct of New Zealand's Trusteeship for the Territory of Western Samoa, and each year presents a report which is examined by the Trusteeship Council. Annual reports are also forwarded to the United Nations Committee on Information from Non-self-governing Territories regarding progress made in the Cook Islands, Niue, and the Tokelau Islands.

The Department is also responsible for the administration of the New Zealand Reparation Estates in Western Samoa, which is carried out through a General Manager. The Reparation Estates are composed of former German property taken over by the New Zealand Government in 1914 consequent on the occupation of the then German Samoa. The ex-German trading businesses were subsequently liquidated and the lands have been operated as a plantation and trading venture. In his white paper of March 1953 relating to the future government of Western Samoa, the Prime Minister stated that with the realisation of self-government in the territory the ownership of the Estates will be transferred to the Samoan people. It is expected to effect the transfer in 1957. Until this eventuates and the formal organization is set up to control the proposed “Western Samoa Trust Estates Corporation” a committee has been set up to advise the Minister and the General Manager on all matters of policy concerning the general administration of the Estates. This includes consideration of the annual estimates, development programmes, disposition of Estates land, and the erection of new buildings. This committee is providing a valuable training ground for its Samoan members and will enable them to assume with confidence the direction of the Estates. Out of a present total of 33,245 acres, the Estates have 11,519 acres under cultivation and 5,363 leased to tenants. A total of approximately 80,000 acres has been divested from the Estates and passed over to the Government of Western Samoa for occupation by Samoans. Up to 31 March 1955 some £623,000 from the profits of the Estates had been expended on general development in the interests of the Territory. In 1955–56 the Estates' production was as follows: copra, 1,859 tons; and cocoa, 466 tons. During this period 239,080 superficial feet of timber were produced, and 1,837 cattle slaughtered for meat.

The Officer for Islands Education is responsible under the Department for the co-ordination of educational policies in the various island groups, the appointment of New Zealand teachers on secondment, the publication of School Journals in the vernacular of the different groups, and the supply of modern teaching equipment. An islands scholarship scheme instituted in 1945, under which selected students from all territories are given secondary and higher education in New Zealand, is under the Department's direction. Since the inauguration of the scheme 181 children have won scholarships, of whom 45 have already returned to employment in the islands. Last year six boys were awarded technical scholarships.

By arrangement between the Governments of Fiji and New Zealand, young Samoans, Cook Islanders, and Niueans receive training at the Central Medical School, Suva, Fiji, to equip them for duty in their own territories as assistant medical practitioners, assistant dental practitioners, pharmacy and laboratory assistants, and assistant sanitary inspectors.

New Zealand also exercises the administration of the Ross Dependency on behalf of the United Kingdom Government. The Ross Dependency is normally uninhabited. Brief mention is also made in this Section of Nauru Island, which is administered under a trusteeship, held jointly by the United Kingdom Government, the Government of Australia, and the New Zealand Government.

The term “island territories” does not include Stewart Island or the Chatham Islands, which form part of New Zealand, although, as mentioned earlier, the latter have been placed under the administrative direction of the Department of Island Territories. The following minor islands, which are referred to on page 2 of this Year-Book, are also excluded: Three Kings Islands, Auckland Islands, Campbell Island, Antipodes Islands, Bounty Islands, Snares Islands, and Solander Island. None of these islands is regularly inhabited, although meteorological stations were established on the Auckland and Campbell Islands in 1940. The station in the Auckland Islands was closed in June 1945, but a staff of 5 is still engaged on Campbell Island maintaining meteorological records and conducting ionospheric research. A radio station is also established on Campbell Island. The Kermadec Islands are also excluded, for, although they are in the same category as the Cook Islands in that they originally ranked as annexed islands, all New Zealand laws extend to them and there is no separate administration. A meteorological station and an aeradio station have been established on Raoul Island. The population, including the official staff of Raoul Island, at 31 March 1957 numbered 8. This is the only island of the Kermadec Group that is inhabited.

COOK ISLANDS: Descriptive.—The Cook Islands were proclaimed a British Protectorate in 1888, and on 11 June 1901 they were annexed and proclaimed part of New Zealand under the Colonial Boundaries Act 1895. Niue, though one of the Cook Islands, has been under separate administration since 1903, and data relating to it are given later in this Section. Not including Niue, there are fifteen islands in the proclaimed territory, scattered over an area of some 850,000 square miles of ocean, and extending from Penrhyn, situated 9 degrees south of the Equator, to Mangaia, which is just north of the Tropic of Capricorn. The Cook Islands are bounded on the east and west by the 156th and 167th meridians of west longitude respectively, and on the north and south by the 8th and 23rd parallels of south latitude. The total land area of the fifteen islands is approximately 90 square miles, while Niue has an area slightly in excess of that figure.

Some of the islands of the Lower Group were discovered in 1773 by Captain Cook, who first touched at Manuae. Rarotonga and Mauke, however, were not officially recorded by Europeans until 1823, when the Rev. John Williams of the London Missionary Society located them, although there is evidence of visits by the Bounty in 1778 and the Cumberland in 1814.

Of the islands of the Lower Group, Rarotonga, Aitutaki, Atiu, Mitiaro, Mauke, and Mangaia are elevated and fertile, while Manuae and Takutea and the islands of the Northern Group, comprising Penrhyn, Manihiki, Rakahanga, Pukapuka, Palmerston, Nassau, and Suwarrow, are sea-level coral atolls. As a consequence the southern islands support the greater population. With one exception, none of the islands possesses a good harbour.

The whole of the Cook Islands lie within the hurricane zone, and a number of destructive storms have been experienced, the most serious of which in later years occurred in March 1943 and in January 1946. The Cook Islands are covered by a meteorological service with headquarters in Fiji, and advance warning of the intensity and path of tropical storms is available and enables precautions to be taken to protect life and property. From December to March the climate is warm and humid, and there is always the possibility of serious storms. In the remaining months of the year the climate of the Lower Group is mild and equable. The mean annual temperature in Rarotonga taken over the last forty years was 74.5° Fahrenheit, and the average yearly rainfall over the same period was 84 inches.

Rarotonga, the seat of the Cook Islands Administration, is well watered by creeks and ams, and villages are supplied with water by means of a reticulation system. The other island, both northern and southern, suffer from lack of streams and wells, but water is provided from public tanks. A reticulation system was recently installed in some villages of Aitutaki.

Following is a brief description of the individual islands.

LOWER GROUP.—Rarotonga (16,500 acres), the most fertile island of the territory, rises to a height of 2,140 ft. It is clothed to the tops of the mountains with splendid vegetation, and has abundant streams, considerable tracts of sloping land, and rich alluvial valleys. The town of Avarua is the centre of the local administration, and is 1,633 miles from Auckland. There is an airfield on the island. Tomatoes, oranges, and other citrus fruits are the chief exports.

Mangaia (12,800 acres, 110 miles from Rarotonga) is the southeasternmost of the Group. Mangaia is not as fertile as Rarotonga, but produces quantities of coconuts, oranges, pineapples, limes, other citrus fruits, etc. Mangaia is of volcanic origin and is surrounded by a barrier reef without passages. From a narrow sandy beach the shore rises in high cliffs to a mile-wide plateau, which descends again to almost sea-level, enclosing an ancient crater holding several volcanic mounds, the highest of which exceeds 550 ft. The crater drains by subterranean channels.

Atiu (6,950 acres, 116 miles from Rarotonga) is a raised mass of coral, steep and rugged, except where there are small sandy beaches and some clefts. Considerable quantities of tomatoes have been exported during recent years.

Mauke (4,600 acres, 150 miles from Rarotonga) is a low circular island about two miles across, lying to the north-east of Rarotonga. Like Mangaia and Atiu, it is surrounded by an unbroken fringing reef. Mauke is very fertile. Oranges and pineapples are the main exports.

Aitutaki (3,900 acres, 140 miles from Rarotonga) is about eighteen miles in circuit and one of the most fertile of the islands forming the Lower Group. It has an airfield, and a flying-boat base which is used regularly by the Coral Route service to Tahiti. Tomatoes, oranges, and copra are the main exports.

Mitiaro (2,500 acres, 142 miles from Rarotonga) is a good example of an elevated coral reef, thinly coated with sand and gravel of the same material. The greater part of the surface is not more than 6 ft. above high-water mark.

Manuae (1,524 acres, 124 miles from Rarotonga) consists of two small islands, Manuae and Te-Au-o-Tu, joined by a coral reef. The two islands are in general usage covered by the term Manuae; the name Hervey Islands is an alternative but rarely used title.

Takutea (302 acres, 118 miles from Rarotonga) is a small coral island, moderately fertile, but it is not regularly inhabited. It is owned by the people of Atiu and worked by them as a copra plantation.

NORTHERN GROUP.—Penrhyn (2,432 acres, 737 miles from Rarotonga) is also sometimes known as Tongareva. The large lagoon with its two entrances affords the only land-locked shelter within the group for vessels other than fishing boats, and it is the refuge of trading schooners during the hurricane season. As drought conditions sometimes exist, large concrete tanks have been built for the conservation of rain water.

Manihiki (1,344 acres, 650 miles from Rarotonga) is an atoll about thirty miles in circumference, valuable for the extent of its coconut groves. It also suffers occasionally from droughts, and is equipped with concrete water tanks. It has a large pearl-shell industry, and exported 351 tons of shell in 1955–56.

Pukapuka (1,250 acres, 715 miles from Rarotonga) is a small triangular-shaped atoll of about 3 miles in diameter, with its highest point about 15 ft. above sea level. The legendary history of its settlement is interesting through its New Zealand associations. One version states that one he Maori chiefs who came to New Zealand with the first migratory wave of the Maoris (as distinct from the Morioris or earlier settlers) decided to return with his immediate followers to Rarotonga. Winds took them out of their course, and they finally reached and settled in Pukapuka. The people of this island have somewhat different customs and dialect from those of the remainder of the group. A portion of one of the reef islets, known as Anchorage Island, is an Admiralty Reserve.

Rakahanga (1,000 acres, 674 miles from Rarotonga) is also an atoll, and shares its Resident Agent with Manihiki, from which it is only twenty-five miles distant. Copra is the only export.

Palmerston (1,000 acres, 270 miles from Rarotonga) consists of eight islets threaded along a reef. Palmerston also bears the name of Avarau, and is noted as the “San Pablo” of Magellan, the first island discovered in the South Seas.

Suwarrow (600 acres, 513 miles from Rarotonga) is a coral atoll of triangular form possessing a land-locked lagoon eight miles by six, which is capable of being made into an excellent harbour. The island, which has been much reduced in land area by storms, is a sanctuary for sea birds, and part of it is a naval reserve.

Nassau (300 acres, 673 miles from Rarotonga) is a small island well planted with coconut trees. It is owned by the people of Pukapuka, who utilize the island for its copra.

Administration.—Provision for the government of the Cook Islands is contained in the Cook Islands Act 1915. Under this Act there is appointed a Resident Commissioner charged with the administration of the executive government of the Cook Islands. The Resident Commissioner resides in Rarotonga and is represented in the outer islands by Resident Agents.

Popular representation is effected by the Island Council in each of the ten main islands, each Council consisting of ex officio members (officials and arikis, or leading chiefs) and elected members. Elections were first held in March 1947, and thenceforth are conducted triennially in each constituency, the franchise extending to all Cook Island Maoris of eighteen years of age or over. The Maoris are British subjects, and the provisions of the British Nationality and New Zealand Citizenship Act 1948 apply to them. The Resident Commissioner in Rarotonga and the Resident Agents in the outlying islands preside over the respective Island Councils. Prior to 1947 the Island Councils consisted of the Resident Commissioner or Resident Agent, the arikis, and a number of nominated members. Europeans are represented by one elected member on the Rarotonga Island Council.

The Cook Islands Amendment Act 1946, under which these Island Councils were reconstituted, also provided for a Legislative Council of the Cook Islands, the inaugural session of which was held in 1947. This Council, which meets annually, is composed of twenty-one members. There are ten unofficial members, nine of whom are elected by Island Councils, the remaining unofficial member holding office by virtue of his being the European member on the Rarotonga Island Council. There are ten official members appointed by the Governor-General of New Zealand, in addition to the Resident Commissioner of Rarotonga, who presides over the Council. The President has a casting but not a deliberative vote.

Measures designed to increase local legislative responsibility are at present under consideration, and a constitutional survey was conducted by Professor C. C. Aikman, of Victoria University College, in 1956.

Laws governing the Cook Islands are made by Act of the New Zealand Parliament or by Orders in Council and regulations issued thereunder. Ordinances applicable to the whole of the Cook Islands may be made by the Legislative Council of the Cook Islands, subject to certain statutory restrictions. These Ordinances require the assent of the Resident Commissioner, and may be disallowed either wholly or in part by the Governor-General within one year after the assent of the Resident Commissioner has been given. Ordinances restricted in their application to the islands in which they are made may be enacted by the local Island Councils. These local Ordinances require the consent of the Resident Commissioner, or they may be reserved for the Governor-General's pleasure.

The administration of justice is in the hands of the High Court, the Native Land Court, and the Native Appellate Court. The High Court exercises civil and criminal jurisdiction throughout the Cook Islands, while the Native Land Court is concerned with litigation on lands and titles. The Native Appellate Court hears appeals and applications for rehearings in respect of judgments of the Native Land Court.

The Cook Islands Public Service comes under the control of the New Zealand Public Service Commission.

Population and Vital Statistics.—The Cook Island Maori is a Polynesian and is closely related to the New Zealand Maori. There is a strong resemblance between the two peoples in tradition, language, and custom. Many of the tribes in both places are able to trace their descent back to a common ancestor. A census of the Cook Islands taken on 25 September 1951 recorded a total population (exclusive of Niue) of 15,079, an increase of 991, or 7.03 per cent, as compared with the census of 25 September 1945. Details of the population of the islands of the group as at 31 March 1956 are set out in the following table.

POPULATION AS AT 31 MARCH 1956

IslandMalesFemalesTotals
IndigenousNon-indigenousIndigenousNon-indigenous
Rarotonga3,2212252,8421296,417
Mangaia1,00571,00812,021
Mauke4903454 947
Mitiaro1751172 348
Atiu7462713 1,461
Aitutaki1,337121,23562,590
Palmerston43 59 102
Pukapuka323 302 625
Manihiki4731423 897
Rakahanga1521145 298
Penrhyn3121282 595
Manuae32118 51
Takutea     
Nassau37 35 72
Suwarrow     
      Totals8,3462547,68813616,424
 8607,824 

At the date of the 1951 census there were 239 Cook Island labourers absent at Makatea Island. This number was made up as follows: from Mitiaro, 12; Atiu, 40; Mauke, 36; Rarotonga, 88; and Mangaia, 63. This indenture has since ceased.

During the year ended 31 March 1956 births numbered 740 and deaths 268. The number of deaths of children under one year of age in 1955–56 was 112.

Health.—In accordance with the provisions of the Cook Islands Act 1915, all Cook Islanders receive free medical and surgical treatment in their villages, in the hospital, and in the tuberculosis sanatorium. Cook Island Maori patients in the hospital and the sanatorium, and all school children, receive free dental treatment.

Although lying within the tropics, the Cook Islands are singularly free from the common diseases prevalent in other tropical islands. Malaria is unknown, but filariasis is endemic, and this and tuberculosis provide the main health problems of the Group. The objective of the health services—to improve the health of the community—is being pursued by a system of village sanitary inspection and group medical examination, combined with modern treatment of disease in dispensary, clinic, hospital, and sanatorium.

The staff of the Health Department during 1955–56 numbered 117. Only the Chief Medical Officer, the Matron, and three certificated New Zealand nurses were Europeans. There were 14 Cook Islands medical practitioners, 5 health inspectors, 19 trained and 28 trainee nurses, 8 male nurses, 13 mosquito inspectors, 17 dressers, and 7 technicians. The Dental Clinic is staffed by a European dentist and nurse, and 8 Cook Islands staff.

A general hospital (57-bed) equipped with dispensary, X-ray, and laboratory facilities, and a tuberculosis sanatorium (64-bed) are maintained in Rarotonga. In the outer islands dispensaries with accommodation for a few patients are operated by assistant medical practitioners. A new cottage hospital has been built at Aitutaki. Atiu and Penrhyn also have small hospitals.

A child-welfare organization covering all phases of maternity and child-welfare work operates under the supervision of the Chief Medical Officer and the Cook Islands medical practitioners. Regular clinics are held and periodical lectures are given to the Child Welfare Committees in the villages.

The dental staff is centred on the Rarotonga Dental Clinic. In addition, there are two Maori dental assistants at Aitutaki, one at Atiu, and one at Mauke. One Maori officer is undergoing training at Suva. During 1955, 4,418 children were rendered dentally fit. In all, 27,610 dental operations were carried out in the Cook Islands.

Total expenditure on health services during the financial year ended 31 March 1956 amounted to £88,219.

Education.—Primary education in the Cook Islands is provided by the Administration, the Roman Catholic Mission, and the Seventh Day Adventist Mission, post-primary education being provided by the Administration for children selected from throughout the Group. During 1952 all schools hitherto administered by the London Missionary Society in the Northern Group were taken over by the Administration in accordance with an agreement between the Administration and the Society.

Education is free and compulsory between the ages of six and fourteen. At 31 March 1956 the total number of pupils on the rolls was 4,426, comprising 3,976 pupils at Government schools and 450 at denominational schools.

The curriculum provides for children to be taught in the vernacular for the first two years, with English being taught only as a subject. On the third and subsequent years English reading is introduced, and English becomes to an ever-increasing extent the medium of instruction and expression. Although it is still too early to form definite conclusions, it appears that the children learn to read and express themselves in English much more readily as a result of their early education in the vernacular. The curriculum includes art and craft work, woodwork instruction, agricultural instruction, visual education, and, in Rarotonga, domestic science for senior girls.

Post-primary classes instituted in 1950 in temporary accommodation at Avarua School have been transferred to a secondary school at Tereora. Construction of the first two blocks of Tereora College has now been completed. The Government scholarship scheme has been continued, and three boys and two girls proceeded to New Zealand early in 1956. The total number of scholarships granted since 1946 is now 46.

The Cook Islands School Journal is of great value in providing some literature in the vernacular. Other assignments are prepared in the vernacular. Simple booklets in English are also made available.

Total expenditure on education for the year amounted to £95,535. Costs of the scholarship scheme for Cook Islands' students in New Zealand are not included in the figure quoted.

Adult education work has continued in Rarotonga.

Labour and Employment.—There is a wide variation in types of employment in the different islands. On the atolls in the Northern Group the island people subsist largely on coconuts and fish, and there is little opportunity for them to engage in other pursuits which would provide exports and a consequent higher living standard. In the islands of Manihiki and Penrhyn pearl diving is carried out under regulations which restrict this employment to Polynesians, and otherwise govern the industry. A strict control of this industry is enforced to ensure that the beds are not depleted. It is in the fertile islands of the Lower Group that most of the population is concentrated, and labour is required for the growing, harvesting, packing, and shipment of fruit and copra, the staple exports on which living standards depend. As most of the land in these islands is held by family groups under customary title, the bulk of the people are engaged in work on their own plantations. There is, however, opportunity for wage earners in the administrative departments, in plantation work, and in the handling of fruit for export.

In Rarotonga secondary industries have been established in the form of a clothing factory manufacturing for export, and a footwear factory which serves a local and overseas demand for island-style sandals and shoes. The manufacture of handicrafts is on a domestic basis.

The Rarotonga electric-power scheme has been extended during recent years. There are no power schemes on any of the outlying islands, except a small unit servicing Aitutaki airport area.

Wage standards were fixed for all types of industrial work following the sittings of a special Wages Tribunal in 1946. Further progress in the field of employment relations was initiated by the passing of the Cook Islands Industrial Union Regulations 1947, resulting in the registration of the Cook Islands (Except Niue) Industrial Union of Workers, thus establishing a basis for collective negotiation and arbitration on industrial matters.

During 1950 agreements between the union and all major employers were negotiated by conciliation committees presided over by the Industrial Relations Officer. These negotiations were repeated in 1951 and 1952 and provided for an increase in all basic wage rates commensurate with a mutually agreed-on increase in the cost of living.

Labour is no longer recruited by the French Phosphate Company of Oceania to work the phosphate deposits at Makatea.

There is no movement of migratory labour into the Cook Islands, although some migration occurs from the less-fertile islands of the Northern Group to Rarotonga and other islands of the Lower Group.

A number of Cook Island Maoris go to New Zealand to engage in service or to learn trades. This migration is under supervision, and persons desiring to leave the islands are subject to examination for health and character.

Agriculture.—The principal export crops of the Cook Islands are citrus fruits, copra, pineapples, and tomatoes. Some years ago deterioration of the orange trees became increasingly evident, and in order to rehabilitate the industry a citrus-replanting scheme was instituted in 1945, providing for assistance to growers in establishing plots. Considerable progress has been made with this scheme, particularly in its revised form, and nurseries are established in Rarotonga, Aitutaki, Mauke, and Atiu. At 31 March 1956,443 acres had been planted under the scheme. The production of bananas has declined in recent years, but at present attempts are being made to interest growers in rejuvenating the industry. The Administration has maintained nurseries for the propagation of banana shoots, which are distributed to growers for planting. Arrowroot is cultivated in Aitutaki, while Mangaia shipped 14,178 cases of pineapples to New Zealand in 1955–56.

The following are the estimated areas planted in the principal crops: coconuts, 28,250 acres; citrus fruits, 767 acres; taro, 400 acres; bananas, 1,380 acres; tomatoes, 800 acres; pineapples, 250 acres; manioc, 325 acres; kumaras, 200 acres; yams, 50 acres.

There are 1,719 horses, 312 head of cattle, 10,302 pigs, and 2,281 goats in the islands.

Ownership of Maori land is based on ancient Maori custom. Practically all land is either Maori customary land or Maori freehold land. The sale of Maori land is prohibited by law.

In 1953, in order to aid the economy of the Cook Islands, the New Zealand Government approved an extension of the citrus replanting scheme and the erection of a central coolstore and packing shed at Rarotonga.

Forestry.—There are few marketable types of forest trees in the islands. In the Lower Group the land is covered by secondary growth, coconut palms, and a scattering of larger trees, including breadfruit, mango, kapok, and chestnut. In the Northern Group the growth is mainly of coconut palms and low scrub.

Afforestation on a moderate scale is under way, and a commencement was made on the fern lands of Atiu in 1951, the species planted being Albizzia and Pinus radiata. The main objects of the scheme are to prevent soil erosion and provide timber for fruit cases.

Transport and Communications.—For trading connections with other countries the islands are mainly dependent on a steamer service to and from New Zealand. This service makes calls at Rarotonga and occasional calls, for the purpose of loading cargoes of oranges in season, at the larger and more productive of the islands of the Lower Group. Occasional calls are made by trans-Pacific cargo vessels at Rarotonga. The Tasman Empire Airways operates a fortnightly Coral Route service which calls at Aitutaki, the only island in the Cook Group served by this service.

Radio communication has largely removed the former isolation of the islands, there being now no permanently inhabited island without a radio station. The chief station is Rarotonga Radio, which maintains direct communication with the substations and with Wellington, Apia, and Suva. Postal and telegraph services are available in all the islands, and there is a telephone service in Rarotonga.

Trade.—A summary of exports by country of destination and imports by country of origin for each of the last five years available is contained in the next table.

£

19511952195319541955
Imports, by Country of Origin
New Zealand278,091386,669433,647506,501425,237
Australia16,08816,34411,48519,2567,657
United Kingdom89,006117,96960,58471,52256,042
Canada10,81623,32521,9668,12229,393
United States of America12,63817,91313,37215,96723,927
Other30,75730,19510,96521,32830,108
      Totals437,396592,415552,019642,696572,364
Exports, by Country of Destination
New Zealand196,227267,379304,324310,085329,180
Australia1062,6061,3913,35615,120
United States of America115,27353,85639,09055,77151,710
United Kingdom 35,0651,003 44
Italy   4,32410,780
Other3,0226,4935,73411,51513,219
      Totals314,628365,399351,542385,051420,053

The New Zealand Customs Tariff applies to the Cook Islands with additional special duties on sugar, cotton piece-goods (except calico), linen piece-goods, piece-goods of mixed linen and cotton, and black twist tobacco. During the war period, import, finance, and price controls were instituted and have been kept in force. Import licences are required for goods imported from hard-currency countries. A contract has been concluded with the United Kingdom Ministry of Food for the sale of copra produced in the Group. The contract expires on 31 December 1958.

Details of the quantities and values of the principal commodities exported in 1955, with 1954 figures also given, are shown below.

Commodity19541955
QuantityValueQuantityValue
 Cases£Cases£
Citrus fruits55,30874,83039,45355,138
Bananas181174946906
Pineapples22,74819,67815,71013,858
 Boxes Boxes 
Tomatoes52,42938,59991,91299,978
 Tons Tons 
Copra1,416101,3261,07671,684
Mother-of-pearl shell29074,20324291,888
Arrowroot    
Handicrafts, grassware, etc. 1,723 491
Manufactured goods (apparel) 43,483 59,266

Foodstuffs continue to be the largest class of import; major imports for 1955, with comparative figures for 1954, are set out in the following table.

CommodityValuePercentage of Total Imports
1954195519541955
 ££Per CentPer Cent
Foodstuffs195,851180,07630.531.5
Drapery and piece-goods70,35068,85110.912.0
Oils and petrol, etc.34,27239,9625.37.0
Tobacco and cigarettes28,85128,0594.54.9
Vehicles and parts26,03127,4554.14.8
Fruit cases and sacks41,98411,5516.52.0

Public Finance.—New Zealand currency is in use in the Group. The principal sources of rev within the Group are import duties £46,562, export duties £10,079, stamp sales £5,550, and income tax £22,722. Apart from income tax, there is no direct taxation of the Maori community.

The New Zealand Government has continued to make subsidies and grants available on a generous scale for capital development in health, education, and other social services, and for meeting the budgetary deficits of the Group.

A comparative statement of revenue and expenditure for the last five years is shown hereunder.

£

YearSubsidies From New ZealandRevenue From Cook IslandsExpenditure
1951–52180,971156,913396,081
1952–53276,382225,736453,557
1953–54354,992257,217548,674
1954–55339,727248,582488,004
1955–56294,243285,021568,313

The principal items of expenditure in 1955–56 were £95,535 on education, £88,219 on health services, and £60,889 on public works. More detailed information in respect of the Cook Islands and Niue Island will be found in parliamentary paper A–3 for the year ended 31 March 1956.

NIUE: Descriptive.—Niue Island, discovered by Captain Cook in 1774, became part of New Zealand in 1901, when the boundaries of New Zealand were extended to include the Cook Islands. As stated previously, Niue is part of the Cook Islands, but has been under separate administration since 1903. The island is situated in latitude 19° 02' south and longitude 169° 52' west, somewhat west of the centre of the irregular triangle formed by Samoa, Tonga, and the southern Cook Islands, and is 600 miles distant from the latter. The island, which has an area of 64,028 acres, is an elevated coral outcrop with a coral reef fringing a precipitous and broken coastline. The central saucer-shaped plateau, rising to a height of 220 ft., is encircled by a narrow terrace about 90 ft. above sea level. There are no running streams, and the island is dependent on rain water, which is stored in tanks. The soil, though fertile, is not plentiful, and this feature, combined with the rocky and broken nature of the country, makes cultivation difficult and has precluded the grazing of stock in the past, although some goats were recently introduced to provide milk. The climate is mild and equable, and, although on the edge of the hurricane belt, the island is seldom visited by serious weather disturbances. The mean annual temperature during the last thirty years was 76.5° Fahrenheit, and the average annual rainfall for a similar period was 78.5 in.

The port of Alofi has an open roadstead anchorage which is satisfactory in fair weather.

Administration.—Provision for the administration of Niue is made in the Cook Islands Act 1915, which provides for the appointment of a Resident Commissioner charged with the administration of the executive government of Niue. Laws are made by Act of the New Zealand Parliament, or regulations issued thereunder or by Ordinance passed by the local Island Council. This body meets periodically under the presidency of the Resident Commissioner, and consists at present of thirteen Niuean members appointed by the Governor-General, and representing all villages on the island.

Population and Vital Statistics.—The Niuean is of Polynesian stock and the language a Polynesian dialect peculiar to the island, but closely related to that of Tonga, Samoa, and the Cook Islands. Owing to the limited natural resources, and the earlier extensive use of Niueans as indentured labour in other Pacific groups, the population has shown little increase in numbers during recent years. The increase would, however, be greater by 100 or more annually if it were not for the increasing emigration of Niueans to New Zealand. Totals of the nine censuses taken since 11 June 1901 are as follows.

CensusPopulation
19024,079
19063,822
19113,943
19163,880
19213,750
19263,795
19364,104
19454,253
19514,553

The following table shows the estimated population as at 31 March 1956.

NiueanEuropeansTotal
Males2,243282,271
Females2,391172,408
      Totals4,634454,679

The inhabitants are distributed amongst twelve villages, of which Alofi, with a population of 914 at the date of the last census, is the largest. The inhabitants of Niue are British subjects and New Zealand citizens.

For the calendar year 1955 births totalled 176 and deaths 53. There were 13 deaths of children under one year of age, the infant mortality rate per 1,000 live births being 56.8.

Health.—Niue, although situated in the tropics, is largely free from diseases prevalent in tropical countries. However, certain other infections, notably tuberculosis, have become established, which, together with periodic epidemics, have provided the main health problems. There were no cases of diphtheria or whooping cough throughout the year. Tuberculosis showed a decrease in 1955 of 15 cases on the previous year. An energetic tuberculosis campaign is being carried out by the Chief Medical Officer and his staff. The number of cases of yaws during the year was 7 less than the previous year. The Niuean standard of general hygiene is very good by Pacific standards. The people have very quickly gained full confidence in the medical and hospital staff so that the previously prevalent practice of consulting bush medicine men has almost died out.

All medical and dental treatment including hospital services is provided free of charge to the inhabitants, the money for this expenditure being provided out of subsidies from the New Zealand Government. There is a Government hospital. A new system of district supervision has been introduced whereby, instead of the Chief Medical Officer visiting each village once a week accompanied by the Child Welfare Sister, four visits to each village are now made every week—two by the Assistant Niuean Medical Practitioner, and one each by the Chief Medical Officer and the Child Welfare Sister. This improved service resulted in many hitherto concealed cases being brought to light. Attached to the hospital is an out-patients department, X-ray unit, laboratory, and dispensary. The staff at December 1955 consisted of the Chief Medical Officer, Matron, Child Welfare Sister, Tutor Sister, one Assistant Medical Practitioner, a Dental Officer, 12 nurses, and ten others employed in ancillary services such as dispensary, laundry, and kitchen duties.

The total expenditure on public health for 1955–56 amounted to 16 per cent of the total expenditure for the Island. The amounts expended on public health during the past five years were as follows.

1951–521952–531953–541954–551955–56
Amount expended£11,669£17,539£17,748£22,745£34,875
Population4,5884,6134,7084,7344,679
Amount per head of population£2 10s. 10d.£3 16s. 4d.£3 15s. 5d.£4 16s. 1d.£7 9s. 0d.

Health education is carried out by the use of posters and pamphlets, by articles published in the Newsletter, and by lectures and discussions by the Child Welfare Sister and Chief Medical Officer.

Education.—The seven primary schools, the two post primary classes, and the side school (European and selected Niuean pupils) are all under the control of the Administration. The Education Department is controlled by the European Education Officer with a staff of four European and seventy Niuean teachers.

The curriculum is based on that of New Zealand only in so far as it is relevant to the Island's needs. The bias is towards agriculture, weaving, sewing, and manual training, and the curriculum is modified so as to give full scope to the teaching of these subjects. It is established policy to use the vernacular during the child's first two years at school, English being taught only as an oral subject. In the third and subsequent years English reading is introduced. Niuean is still taught, but the amount of time devoted to it diminishes each year as English becomes the medium of instruction and expression.

The total number of children attending school in Niue at the end of 1955 was 1,073, and scholarship pupils attending school or receiving training in New Zealand numbered 6. Education is free and compulsory for those aged from five to fourteen years.

Labour and Employment.—The only substantial employer of labour is the Administration, which employs Niueans in the Education, Police, Public Works, Transport, and other Departments, and in the loading or discharge of vessels. Apart from this, labour is engaged from time to time to prepare copra for shipment. During the last four years a large number of unskilled labourers has been employed on public works. The basic wage rates are 8s. 9d. per day for unskilled work, 1s. 5d. per hour for waterside work, and on a varying scale for other employment. There is no unemployment problem.

Agriculture.—The Agriculture Department has been functioning for a little over two years. Before any actual plant improvements could be made it was necessary for soil studies to be made, pilot trials commenced, and for the Department to be organized and staff trained. Much of this has been achieved.

Agricultural education is carried out by lectures and discussions in the villages and through the education staff, as well as by articles published in the Newsletter.

The principal agricultural exports are copra, bananas, and kumaras. All the copra exported is grown by the Niueans, there being no European planters. All copra is shipped under a contract with the United Kingdom Ministry of Food.

Steps are taken to ensure that every able-bodied male plants sufficient food crops each month for the sustenance of his wife and family.

The extremely rocky nature of the ground makes all agriculture difficult, as practically the whole of the arable land is confined to small pockets of soil among the coral rocks. Of the total area of some 65,000 acres, approximately 25,000 acres are more or less continuously cultivated, while some 15,000 acres have now been worked out and support only fern and scrub. The remaining 25,000 acres are either in coastal forest and scrub, light forest, or heavy forest.

As the Niuean depends for his livelihood upon his family lands, alienation is prohibited, so that there are no landowners apart from the Niueans and the Administration. Niuean land may not be leased for a period exceeding sixty years.

Transport and Communication.—There are no internal transport services. The transport of goods and produce to and from the port of Alofi is carried out by Administration and privately owned motor vehicles. There are some 72 miles of all-weather roads on the island.

At Alofi there is an open roadstead only, and cargo is handled by lighters.

Full postal services are provided at Alofi, where there is a Post Office Savings Bank. A single-line telephone system connects all villages on the island, and a radio station is maintained by the Administration for overseas communication.

Trade.—During 1955 inward cargo totalled 2,165 tons, while outward cargo totalled 1,550 tons. As usual, the bulk of the trade was with New Zealand.

The value of exports and imports for the last five years available are given below.

£

YearExportsImportsTotal Trade
195155,55583,447139,002
195282,971102,595185,566
195372,685116,852189,537
195469,398142,172211,570
195578,360158,082236,442

Exports of principal commodities over the last five years were as follows.

Item19511952195319541955
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
  £ £ £ £ £
Copra (tons)68538,20195663,27760141,06655839,06895262,050
Bananas (cases)5,6664,0905,2673,5803,3252,8585,7945,5564,9834,983
Kumaras (bags)1558191,16619,19217,74023,53711,053168
Plaited ware 10,016 8,251 7,163 10,068 8,091

As in the case of the Cook Islands, a nine years' contract for the copra supply has been entered into with the United Kingdom Ministry of Food.

The New Zealand Customs Tariff is in force, and there is free trade between the island and New Zealand. Local duties are, however, imposed on cotton piece-goods, sugar, and twist tobacco, irrespective of country of origin.

Public Finance.—Revenue within the island is raised principally from import and export duties, the sale of stamps, and High Court fines. Income tax at New Zealand rates is levied on those with taxable incomes, while a poll tax of £1 per annum is imposed on all Niuean males aged eighteen years and over.

Deficits are met by a subsidy from New Zealand. A comparative statement of revenue and expenditure during the last five financial years is given in the following table.

£

YearRevenueExpenditureDeficitSubsidyFinal Surplus or Deficit
1951–5236,628107,27570,64759,576-11,071
1952–5342,315100,91858,60349,671- 8,932
1953–5468,865137,06971,20483,184+11,980
1954–5573,660188,269114,60999,254-15,355
1955–56103,666221,498117,832109,953-7,879

WESTERN SAMOA: Descriptive.—Western Samoa comprises the two large islands of Upolu and Savai'i, and islets of Apolima, Manono, Fanuatapu, Namu'a, Nu'utele, Nu'ulua, and Nu'usafe'e. The geographical boundaries are between latitude 13 degrees and 15 degrees south and longitude 171 degrees and 173 degrees west.

Savai'i is the larger of the two main islands, with a length of 46 miles, a breadth of 25 miles, and a total area of 703 square miles. The island is mountainous, rising to a height of 6,094 ft. Upolu, which extends some 45 miles in length and 13 in breadth, measures about 430 square miles in area, and rises to a height of 3,608 ft. Of the two, Upolu is the more fertile and contains two-thirds of the population. Only two of the smaller islands, Manono and Apolima, which are situated in the strait which separates Savai'i and Upolu, are inhabited. The remainder are within or near the fringing reef surrounding Upolu. The climate of the group is equable, the average temperatures during the last sixty years showing a mean daily maximum of 84.9° Fahrenheit, and a mean daily minimum of 74.0° Fahrenheit, while the average annual rainfall for a period of sixty years is 112.98 in.

Administration.—Western Samoa was administered by Germany until 29 August 1914, when the Territory was occupied by a New Zealand military force. A Mandate for the administration of Western Samoa, conferred upon His Britannic Majesty to be exercised on His behalf by the New Zealand Government, was confirmed by the Council of the League of Nations on 17 December 1920.

Following the establishment of an International Trusteeship System, under the Charter of the United Nations, New Zealand in 1946 communicated to the General Assembly of the United Nations its acceptance of the system in its application to Western Samoa.

A draft trusteeship agreement submitted by the New Zealand Government to the United Nations in October 1946, was, with minor amendments, adopted by the General Assembly on 13 December of that year.

In this agreement (printed as parliamentary paper A-26, 1947) the Government of New Zealand is designated the Administering Authority for Western Samoa.

As a result of a request by the Samoan people in 1947 for self-government, a Trusteeship Council Mission of Inquiry visited the Territory, publishing its report in October 1947. This report was found to be closely in line with the New Zealand Government proposals for political development outlined in the New Zealand Parliament in August 1947. The constitutional framework for implementing these proposals was established with the passing by the New Zealand Parliament of the Samoa Amendment Act 1947, which came into force on 10 March 1948.

In 1952 an amendment to the Samoa Act provided for the creation of an Executive Council, which consists of the High Commissioner, the Fautua, three official members, three Samoan members, and one European member. The functions of this Council are to confer with and advise the High Commissioner on the formation of policy. A further amendment passed in 1956 increased the elected membership to four Samoans and two Europeans and requires the High Commissioner to consult the Executive Council in the exercise of all powers conferred on him by the principal Act, or by any regulations, ordinance, or law or Act passed in Western Samoa, with the exceptions of certain reserved enactments.

The administration of the Executive Government is entrusted to the High Commissioner, who is appointed by the Governor-General of New Zealand, and is responsible to the Minister of Island Territories. He is President of the Council of State and of the Legislative Assembly. He also presides at those meetings of the Fono of Faipule which he attends. The High Commissioner has no “reserve” or emergency powers of his own.

The Council of State is composed of the High Commissioner and the Fautua. Appointments to the Fautua are made by the Governor-General, who in an appropriate case would invite the Samoan members of the Legislative Assembly and the members of the Fono of Faipule to submit recommendations. At present there are two Fautua, who are the representatives of the two royal lines of Tupua and Malietoa. The High Commissioner is directed to consult the Council of State upon all proposals for legislation to be submitted to the Legislative Assembly on all matters closely relating to Samoan custom, and on any other matters affecting the welfare of Western Samoa which he considers proper.

The Legislative Assembly is composed of the members of the Council of State, twelve elected Samoan members, five elected European members, and six official members. The right of electing the Samoan members was conferred on the Fono of Faipule by the Samoa Amendment Act 1947. This body has forty-one members representing territorial constituencies based on the traditional districts and sub-districts of Western Samoa. Each constituency returns one member, who must be supported by a majority of the matai in the constituency. The franchise is confined to the matai. The Samoa Amendment Act 1923, as later amended, gave the Fono of Faipule a statutory right “to consider such matters relative to the welfare of the Samoan people as of their own initiative they think proper, or as may be submitted to them by the High Commissioner, and to express their opinions and make their recommendations to the High Commissioner.” In addition, by a custom which has developed over a period of years, the Fono submits nominations for the appointment of Samoan District Judges, the Samoan Plantation Inspectors, and the Samoan Associate Judges of the Land and Titles Court.

The laws of the Territory are made by Act of the New Zealand Parliament or by Ordinances passed for the peace, order, and good government of the Territory by the Legislative Assembly of Samoa. In addition, by the Samoa Act 1921, the Governor-General in Council is empowered to make in New Zealand “all such regulations as he thinks necessary for the peace, order, and good government of the Territory.” These powers are intended as a safeguard for New Zealand's position as trustee, and not as the normal means of legislation. The scope of the legislative power of the Assembly was specifically widened under the 1947 amendment to include the power of overriding New Zealand legislation, except in regard to certain reserved subjects.

The work of the Executive Government is carried on, under the High Commissioner, by a Secretariat headed by the Secretary of the Government of Western Samoa and comprising suitable ancillary services. An associate member system was instituted in 1954, whereby each of the four elected members of the Executive Council has certain Departments allotted to him, and is associated with an official member of the Council in their administration and in the development of Government policy in connection with them. Under the provisions of the 1956 Samoa Amendment Act, the High Commissioner may charge any member of the Executive Council (except the members of the Council of State) with the responsibility of any department or subject, and delegate to that member such of the High Commissioner's powers as he considers necessary for the exercise of that responsibility.

Since the coming into force of the Western Samoa New Zealand Protected Persons Order 1950, the national status of the great majority of Samoans is that of New Zealand protected persons. This is in accordance with the expressed wish of the Samoans themselves. The non-indigenous inhabitants of the Territory retain their own nationality and citizenship. Under the provisions of the British Nationality and New Zealand Citizenship Act 1948, however, individual inhabitants of the Territory may apply for New Zealand citizenship by naturalization. At 31 December 1955, certificates of naturalization had been granted to 54 Samoans and 103 inhabitants of European status.

During 1951 an amendment to the Samoa Act provided for the substitution of the word “Samoan” for the word “Native” in all legislation. This brings the older legislation into line with current usage, and gives legal recognition to the fact that the various Pacific peoples have their own distinctive traits and characteristics.

In March 1953 the Prime Minister of New Zealand issued a statement on political, economic, and social advancement in Western Samoa, which resulted in the holding of a constitutional convention in December 1954, attended by 170 delegates.

Among the more important changes recommended by the convention were that the present Fautua should become Heads of State and that a single Legislature should replace the present Legislative Assembly and Fono of Faipule. This Legislature would be presided over by a Speaker elected by the House and would for the time being consist of 41 Samoan members, 5 European members, and 2 official members (Justice, Finance).

It was recommended that this change take place at the next triennial election in 1957. The Samoan members would be matais (chiefs), and be elected only by matais, of whom there are approximately 4,500. It was further recommended that a Premier and Cabinet should control the Executive Government.

The Judiciary.—The High Court of Western Samoa consists of the Chief Judge, a Judge, 4 Commissioners, and 14 Samoan District Judges.

The High Court has full jurisdiction both civil and criminal for the administration of the law of Western Samoa. In more serious defended criminal cases, the High Court is constituted with four assessors and the Chief Judge.

The Public Service.—The Samoa Amendment Act 1949, which came into force on 1 April 1950, established a Western Samoan Public Service under the control of a Public Service Commissioner of Western Samoa, who is appointed by the Governor-General of New Zealand. The Commissioner is assisted by two Assistant Public Service Commissioners, one of whom is the Secretary of Island Territories or his deputy, and the other appointed by the Governor-General on the nomination of the Council of State. At 31 December 1955, 1,256 persons were employed in the Western Samoa Public Service, of whom 72 were domiciled overseas.

Population and Vital Statistics.—The last population census was held in 1951 and showed a total population of 84,909, an increase of 16,712 since the 1945 census.

The following table shows the summarized results, together with the corresponding figures for the 1945 census.

1945 Census1951 Census
Samoans (including other Polynesians)62,49780,153
Part-Samoans5,0404,142
Europeans359450
Chinese301164
      Totals68,19784,909

Apia, the only town in the Territory, is situated on the north coast of Upolu and, together with immediately adjoining villages, has a population of approximately 17,000. It is the administrative headquarters and the only port of entry. The great majority of persons of European status live in or about Apia.

The estimated population at 31 December 1955 was 96,678 (males, 49,575; females, 47,103). During 1955 there were 3,508 births and 611 deaths, while arrivals in the Territory numbered 5,596 and departures, 6,076. The Samoan infant-mortality rate was 44.92 per 1,000 live births.

Health.—Western Samoa is free from many of the diseases which present the most serious health problems in large areas of the tropics. The climate is healthy even for Europeans unaccustomed to the heat and humidity, and the general level of nutrition is more satisfactory than in a great many tropical regions. The most prevalent diseases are hookworm, yaws, and filariasis, and diseases which result from faulty sanitation, such as typhoid, dysentery, and infantile diarrhoea. Tuberculosis is also a major problem, and chest diseases such as pneumonia are common. Considerable illness among children is caused by faulty feeding. Epidemics of such common ailments as influenza and mumps occur from time to time, but now that the people have access to medical remedies and are in the habit of using them, such epidemics are not a major cause of death or permanently impaired health. The death rate and infant-mortality rate in Western Samoa compare favourably with those in most other parts of the Pacific, but they are still high by western standards.

Close co-operation is maintained with the Epidemiological Information Service of the South Pacific Health Service.

Apia Hospital has 216 beds, half in European-style buildings, the other half in Samoan fale-type wards. The average daily bed state is about 205. In 1955 a modern maternity block was opened accommodating 28 cases.

The Hospital provides all the facilities usual to general hospitals including those for surgery, radiology, and laboratory investigation.

The Health Department is under the control of the Director of Health, who is assisted by a Medical Officer of Health, 4 Medical officers, and 42 S.M.P.s (Samoan Medical Practitioners).

The district medical facilities vary according to accessibility. Where there are inadequate transport services, provision must be made to deal locally with a larger variety of cases than otherwise, and in these areas district hospitals are required. In better served areas dispensary stations are sufficient, all seriously ill cases being brought to Apia.

Most villages have a women's Village Committee, and these committees, by their close co-operation with the Samoan medical practitioners and nurses, do much to promote the health and welfare of the people. Health education is also carried on by means of radio broadcasts in both Samoan and English.

During 1955, 7,555 in-patients and 170,864 out-patients were treated by the hospital, while 11,504 operations were performed. The amount expended on medical services in 1955 was £219,940, or 15.9 per cent of the total expenditure of the Territory.

Education.—The Education Department of the Government of Western Samoa consists of a Director of Education, an Assistant Director of Education, a Senior Samoan Inspector, who is assisted in the supervision of the village schools by eight Samoan Inspectors, and Samoan and European Headmasters and staffs for the various schools.

The Government and mission schools function side by side, close co-operation being maintained by the controlling bodies. There are 330 mission schools throughout the Territory with some 6,839 pupils. In addition to the 108 Government primary schools, there are three advanced Government schools, manual and domestic training centres, and a Teachers' Training College.

Each year the Administering Authority awards approximately ten scholarships for study in New Zealand. These scholarships are awarded on the basis of a competitive examination, and enable students to attend primary and secondary boarding schools in New Zealand, whence most proceed to higher establishments for professional or trade training. The scheme was inaugurated in 1945 and since then 119 pupils from Western Samoa have been awarded scholarships.

Although there is as yet no provision for compulsory education, where there are Government schools there is free primary education for boys and girls. Secondary education is available for children selected by competitive examination at Samoa College (opened in February 1953), which in 1955 had a roll number of 228 in the primary department and 102 in the secondary department. The College will eventually become a boarding establishment, and it is intended that when it is fully developed the College will replace the present scholarship scheme, instead of which selected secondary school pupils will receive scholarships for study at universities in New Zealand.

In 1955, the total expenditure for Government education covering primary, secondary, and vocational schools was £210,019, the money coming from the following sources: Samoan Government, £173,232; New Zealand Government, £36,787.

Educational Statistics.—The figures given below record the number of scholars at the various schools in 1955.

 Number of Scholars, 1955

* Plus 161 in mission theological colleges.

Government primary schools, 5–18 years17,952
Government vocational, 16–21 years314
Government secondary, 13–19 years102
      Total, Government schools18,368
Mission primary schools, 5–18 years6,656
Mission secondary, 13–19 years133
Mission vocational, 16–21 years50
      Total, mission schools6,839*
      Grand total25,207

NOTE.—In the primary schools, few pupils attend before the age of six years and most have left by the age of sixteen years.

Labour and Employment.—Outside of Apia there is very little employment for wages except on plantations under the control of the New Zealand Reparation Estates and by private planters, who often engage co-operative or community groups on casual work. In the stores and in the Administration where regular daily tasks are required, the personnel turnover is large. On the other hand no difficulty is experienced in obtaining labour for the two or three days of intensive work available when a vessel is in port.

A Commissioner of Labour is responsible for the enforcement of the Contracts of Employment Ordinance (1950), which includes provisions to safeguard the position of the indigenous workers.

No system of apprenticeship exists at the moment, but a Committee of Technical Education has been established to investigate and advise the Government on methods of trade training.

Seven co-operative societies have been registered since 1954, when a Registrar of Co-operative Societies was appointed.

There is a section of the New Zealand Public Service Association, whose membership is open to all permanent Government employees, whether indigenous or seconded.

The basic minimum wage for Government employees in 1955 was 10s. per day, with higher rates for semi-skilled and skilled workers.

A cost-of-living index is maintained by the Samoan Government.

Agriculture and Animal Husbandry.—Public services in connection with agriculture are organized under the Agriculture Department, which employs, in addition to clerical staff, a staff of Samoan field instructors and Samoan district plantation inspectors, the latter being resident in districts throughout Samoa.

The type of terrain on which export crops are grown precludes the widespread use of mechanical equipment, the soil being mixed with scoria and volcanic refuse in most areas. Domestic crops make adequate provision for village requirements under present methods of cultivation, and there is no incentive to increase yields by mechanized cultivation, which would be very difficult considering the terrain.

In a normal season the Samoans find no difficulty in producing local food supplies sufficient to meet their requirements. Reliance on imported European foodstuffs is strongest amongst Samoans whose villages are found in the area surrounding Apia, although such foodstuffs, particularly flour and preserved meats, are popular throughout the Territory.

Livestock are of local importance. Pigs and poultry figure in the Samoan village economy, while cattle are raised on the New Zealand Reparation Estates and other plantations. Horses and mules are used as pack animals. The New Zealand Reparation Estates cattle, which number approximately 8,500 head, beside grazing the plantations clear of undergrowth, provide fresh beef for consumption in the Territory and hides for export. The herds consist mainly of the Hereford and Polled Angus varieties, and are maintained and improved in quality by rotational grazing and careful selection for breeding. Cattle are also raised by a few individual planters, and milking herds are maintained by the Estates and by one planter.

The land of Western Samoa is classified in law as Crown land, Samoan land, and European land, there being some 88,000 acres of Crown lands, 583,000 acres of Samoan land, 38,200 acres of New Zealand Reparation Estates land, and about 16,000 acres of European land. It is estimated that about 400,000 acres, or 55 per cent, of the land area of the Territory is made up of steep hillsides, lava beds, or other unproductive areas, although as time passes lava beds gradually begin to support vegetation. The areas of land devoted to the principal crops are as follows: coconuts, 36,000 acres; bananas, 14,000 acres; cocoa, 8,000 acres; taro, 4,600 acres; ta'amu, 1,500 acres. It is estimated that production by Samoans accounts for 80 per cent of the copra exported, 60 per cent of the cocoa exported, and 95 per cent of the bananas exported.

Forestry.—The forests in Western Samoa are neither virgin nor densely stocked with valuable timber species. Savai'i has more extensive areas of forest than Upolu, but the rugged terrain precludes the economic extraction of the timber. Two milling concerns operate in Upolu, but together they supply only one-third of the annual consumption of timber, which is about 1,500,000 superficial feet.

A forestry survey carried out in 1951 revealed the need for a planned economy and the conservation of natural resources, and demonstrated that Samoa's forests are not one of the country's major resources.

Industry.—Apart from two sawmilling concerns, a soap factory established in 1953, and a tyre retreading plant, there are no industrial activities of any magnitude in the Territory. There are a few small enterprises for the processing of coffee and the manufacture of cordials, curios, and similar products. There are no known mineral resources available for development.

Communications.—There is a twice-monthly passenger and cargo service from New Zealand to Western Samoa, via Fiji and Tonga, while a twice-weekly service operates between Apia and Pago Pago in American Samoa.

A fortnightly air-service is maintained by Tasman Empire Airways flying boat between Fiji and Tahiti, via Western Samoa and Aitutaki. The seadrome at Satapuala and the aerodrome Faleolo are situated some 20 miles from Apia.

There are 350 miles of road, or which 69 are of bitumen surface. At the end of 1955 there were 276 cars, 76 buses, and 275 lorries registered in the Territory.

There is only one telephone system, which has approximately 76 miles of local wires and 496 subscribers. The Government maintains a short-wave radio station for normal overseas communications.

Trade.—The exports and imports of Western Samoa for each of the last twelve years are as follows.

£

YearExportsImports
1944391,317460,764
1945630,446398,760
1946719,050478,695
19471,351,770923,773
19481,108,258954,028
19491,344,758881,584
19501,303,7611,095,121
19511,721,9421,194,698
19521,778,0841,687,790
19531,954,6891,312,769
19542,211,8471,710,494
19552,511,8991,894,542

The following table shows for the years 1954 and 1955 the value of exports and imports according to country of destination and country of origin.

£

CountryExports (Including Re-exports)Imports
1954195519541955
New Zealand558,165596,595544,796591,769
Australia165,27695,773314,366324,529
United Kingdom1,377,5691,418,598398,279459,396
Fiji1,568 80,49777,150
Canada108,17267,24874,449
India  40,91234,221
United States of America90,094367,23849,65491,674
Other19,16525,523214,742241,354
      Totals2,211,8472,511,8991,710,4941,894,542

The principal exports consisted of cocoa, 3,041 tons, £878,566; copra, 17,178 tons, £1,078,739; and bananas, 446,325 cases, £463,035. At the end of 1955 the Copra Reserve Fund stood at £298,380. This money is available to maintain the price of copra at an economic level if this becomes necessary.

A nine-year contract for the sale of copra produced in the Territory was entered into with the United Kingdom Ministry of Food in 1949. The initial price was £48 10s. sterling per ton, f.o.b. Apia. In 1951 this price was increased by 10 per cent to £53 15s. per ton, in 1952 and 1953, £65 per ton, in 1954 it was £70 per ton, in 1955 it was £65 per ton, and in 1956, £58 10s.

The principal imports for 1955 were: 40,542 cwt. of sugar, value £94,395; 768,174 yards of cotton piece-goods, £91,283; meat in tins and kegs, 22,665 cwt., £187,906; and motor vehicles, parts, etc., £126,882.

Control of Trade and Finance.—Certain measures in regard to trade and finance were brought into operation in Samoa by the Samoa Import Control Regulations 1944 and the Samoa Finance Emergency Regulations 1944 (now replaced by the Western Samoa Exchange Control Regulations 1948).

These measures were introduced more particularly to ensure the supply of essential goods from exporting countries. There is no impairment of the authority of the local Administration to permit imports from any country from which they may be available. No import licences are issued for any imports save those from hard-currency areas and Japan.

Western Samoa is a member of the sterling pool, to which her hard-currency contributions are made mainly from earnings on the export of cocoa.

Public Finance.—Subject to specific provisions of the Samoa Act 1921, which relate to the reserved items of defence and External Affairs, the Legislative Assembly is empowered to authorize such payments for public purposes out of the public moneys of Western Samoa as it thinks fit. The Government financial year ends on 31 December. No public debt exists in the Territory.

The following table shows the total revenue and expenditure for the last five years. The principal items of expenditure are also shown.

£

RevenueExpenditure
EducationSamoan AffairsPublic HealthPublic WorksTotal, Including Others
1951678,897113,34525,470140,245166,357630,147
1952781,980110,552 170,983282,255811,580
1953929,120128,610 174,050455,8101,054,320
19541,128,870121,570 176,030478,6201,145,810
19551,224,360194,150 219,940492,2701,297,150

The policy of the New Zealand Government has been to devote the trading profits derived from the New Zealand Reparation Estates towards expenditure on social and economic developmental schemes for the benefit of the Territory. Details of such grants since the policy came into full operation are as follows.

£

Rhinoceros BeetleEducation and Overseas ScholarshipsHealthBroadcastingPublic Works
Year ended 31 March—
  1947 2,351  8,100
  1948 7,552 22,47512,985
  1949 10,880 1,28928,915
  195060324,07250,000 25,000
Period ended 31 December—
19501665,748   
Calendar year—
  195131240,358   
  195242547,501   
  195348028,470   
  19542,00024,630  25,000
  19552,31021,5508,240 2,930
      Totals6,296213,11258,24023,764102,930

The public revenue of the Territory is derived from a combination of direct and indirect taxes. The principal indirect taxes are import and export duties which provide a suitable method of obtaining revenue from a central source at a minimum cost, and are thus well suited to the present stage of development of the Territory. Store tax was abolished as from April 1955 and replaced by a graduated salary and company tax. There are no direct taxes imposed on individual Samoans other than the salary tax on incomes in excess of £200 per annum, payable in cash by individuals after deducting the normal exemptions.

Receipts of revenue from the various sources of taxation for the calendar years 1954 and 1955 were as follows.

£

Source19541955
Amusement tax910630
Arms licences8701,030
Building tax4,4507,710
Export duties179,530214,630
Import duties428,490454,880
Licences and fees12,00014,920
Salary tax9,16010,590
Stamp duties6,3902,080
Store tax98,140125,090
Water rates2,2102,180
Vehicle licences9,0009,620

Money and Banking.—There is one trading bank in the Territory, a branch of the Bank of New Zealand which provides all the normal banking facilities.

£

195319541955
Amount of currency in circulation126,740150,000160,000
Aggregate deposit money—
  Post Office Savings Bank343,760389,470389,000
  Bank of New Zealand300,000500,000500,000

No gold resources are held. Foreign exchange is obtained from the common sterling pool. Currency is backed by New Zealand Government securities held by the New Zealand Government.

TOKELAU ISLANDS: Descriptive.—Situated some three hundred miles to the north of Western Samoa, between 8° and 10° south latitude and between 171° and 173° west longitude, are the three atoll islands of Atafu, Nukunono, and Fakaofo, of the Tokelau (Union) Group. A fourth island, Olosega, belonging to the United States of America and lying 100 miles to the south of Fakaofo, completes the group.

Each atoll is composed of a number of coral islets surrounding a central lagoon. These islets vary in size from 100 yards to four miles in length, while none is wider than 400 yards nor, with but few exceptions, higher than 10 ft. above sea level. The land area of each atoll is approximately as follows: Fakaofo, 650 acres; Atafu, 500 acres; Nukunono, 1,350 acres. The atolls do not lie in close proximity, there being 40 miles of open sea between Fakaofo and Nukunono, and 57 miles between Nukunono and Atafu.

Owing to the absence of humus in the soil, the vegetation is practically restricted to coconut palms, although one islet of each atoll is reserved for growing the tauanave, or tausunu, a short stubby tree, which yields to the Tokelau Islanders their only timber for the construction of canoes and utensils.

The general isolation of the Tokelau Islands and the limited nature of the economy have combined to produce an extremely simple pattern of living and a stable society in which there is freedom from many social problems. The absence of such complicating factors as divergent economic interests, cultural differences, or racial conflict is conducive towards the maintenance of the present peaceful mode of life and outlook. Village affairs are managed by the Council of Elders, comprising representatives of the families, and this body also exerts some influence over the “aumaga” or village labour force. In this way the traditional form of patriarchal authority has been preserved and regulates Tokelau society, performing a service alongside, and also in addition to, the public duties of government which are carried out by local officials such as the Faipule and the Pulenu'u.

Differences between the Tokelau Islanders and the Samoans are also exemplified in other ways, such as food habits, styles of house building, and directness of address in speech. In dancing, an activity inherent in all Polynesian society, the Tokelau Islander differs from the more traditional Samoan forms in that he incorporates syncopation and a larger degree of improvization.

Administration.—The first recorded European discovery of the Tokelau Islands was made by Quiros, the Spanish Navigator, who in 1606 made a landfall at Olosega. In 1765 Atafu was discovered by Commodore Byron, R.N., and the islands were included under the protection of Great Britain in 1877. In 1916 the islands, at the request of the inhabitants, were formally annexed to Great Britain by an Order in Council, which also extended the boundaries of the Gilbert and Ellice Islands Colony to include the Tokelau Group (then known as the Union Islands) and their dependencies. The group was governed by the High Commissioner for the Western Pacific and administered by the District Officer at Funafuti, in the Ellice Group. In 1925 the New Zealand Government, at the request of the British Government, agreed to administer the islands. By Order in Council the group was separated from the Gilbert and Ellice Islands Colony, and by a further Order in Council in the same year the Governor-General of New Zealand was empowered to make laws for its peace, order, and good government, and authorized to delegate from time to time to the Administrator of Western Samoa so much of this power as might be considered desirable. The right was reserved to the Governor-General in Council to disallow any laws passed under this delegated power and to make any restriction deemed proper. The vesting of administrative powers in the Administrator of Western Samoa (now the High Commissioner) in 1926 was a matter of convenience, the Tokelau Group having no political connection with the Territory of Western Samoa.

The Tokelau Nomenclature Ordinance 1946 officially fixed the name of the group, hitherto sometimes referred to as the Union Islands, as the Tokelau Islands or the Tokelau Islands Dependency.

By the Tokelau Islands Act 1948 the Tokelau Group was included within the territorial boundaries of New Zealand; legislative powers are now vested in the Governor-General in Council, while executive powers remain with the High Commissioner of Western Samoa. The inhabitants of the Tokelau Islands are British subjects and New Zealand citizens.

There is no resident European administrative staff, but an Administrative officer was appointed in 1955. He is based at Apia, Western Samoa, and co-ordinates administrative services for the group.

Population.—The people, though closely allied to the Samoans, have not such a fine physique. Intermarriage with Gilbert and other Islanders has probably lessened the strain of pure Polynesian blood to a greater extent than in the case of the Samoans.

On 25 September 1951 a census showed a total population of 1,580, including 9 Europeans, seven of whom were members of the visiting official party. The indigenous population was as follows.

IslandMalesFemalesTotal
Fakaofo302360662
Atafu226226452
Nukunono199258457
      Totals7278441,571

At the time of the census 183 Tokelau Islanders were in Western Samoa.

The indigenous population at 31 March 1956 was estimated at 1,875.

On Atafu all the inhabitants are members of the London Missionary Society, and on Nukunono all are adherents of the Roman Catholic Mission. On Fakaofo the greater number adhere to the London Missionary Society. Both missions—the Roman Catholic and the London Missionary Society—have their headquarters in Samoa, from which the work in the Tokelau Islands is administered. Since December 1946 there has been a Catholic priest in residence at Nukunono. A Roman Catholic sister arrived in Nukunono in 1948 and established a convent school. Apart from this, there are no other Europeans domiciled in the islands.

Health.—Health services in the Tokelau Islands are organized and supervised from Apia, from where also the supplies are drawn. The incidence of disease in the islands is slight. There have been no cases of smallpox, leprosy, plague, or cholera, and yellow fever is unknown. The only mosquito identified in the islands is the Aedes pseudoscutellaris, and filariasis is present, carried by this mosquito. There is no malaria. Recent surveys reveal a microfilarial of about 10 per cent, most of the carriers having resided either in Samoa or some other endemic zone for at least some months. No cases of syphilis have been reported. Yaws is common amongst the children, but the disease, however, is quickly reduced by appropriate therapy.

Three Samoan medical practitioners are stationed in the group. Other medical staff consists of staff nurses, nurses, and dressers, who obtain their training at Apia hospital in Western Samoa. In addition each atoll has an active Women's Committee, and to these committees much credit is due for their work in village health and sanitation.

Fresh water is not plentiful, and tanks and catchment areas have been erected on each island.

Education.—At the end of 1950 the decision was made that four trained Samoan teachers should proceed to the islands to open Government schools. These teachers and their equipment arrived early in 1951, two being posted to Atafu and two to Fakaofo. Upon arrival they reorganized and regraded the mission schools, but owing to the large roll numbers it was necessary to retain the services of the missionaries and others who had received education in Western Samoa. These were replaced as soon as possible by trained Tokelau teachers. There are now eight trained and two untrained Tokelau teachers in the group. All the necessary school equipment, stationery, and textbooks are supplied by the New Zealand Government; the schools also receive copies of the Samoan Teachers' Monthly Guide and of Samoan and New Zealand School Journals. In addition, they are equipped with film-strip projectors and also with radio sets so that the daily educational broadcasts of the Western Samoan Education Department may be utilized. The mission school on Nukunono is equipped by the New Zealand Government in a similar fashion to the schools of the other islands.

The rolls of the three schools in March 1956 were as follows: Fakaofo, 204; Atafu, 152; Nukunono, 156. In addition, a number of Tokelau children attend Government and mission schools in Western Samoa.

Communications.—Visits to the islands are made at approximately three-monthly intervals by aircraft of the Royal New Zealand Air Force stationed at Lauthala Bay, Fiji. Trading visits are made at fairly regular intervals by a vessel chartered by the New Zealand Reparation Estates, Western Samoa. Inter-island communications are carried out by the visiting aircraft and trading vessels, canoe journeys between the islands being discouraged.

Radio-telegraph receivers and transmitters are operated on each atoll, being housed in small radio-telegraph station buildings. In addition, receiving sets are installed in all villages and enable the people to listen to broadcasts from the Apia broadcasting station.

Trade and Finance.—Prior to the Second World War trading operations were carried out by merchants operating from Western Samoa. During the war the trading vessels were withdrawn, and the Administration undertook the purchase of copra and the sale of goods. At the conclusion of hostilities the Administration offered to return the trade to private firms, but they were not prepared to resume operations, and it has since been undertaken by the New Zealand Reparation Estates. The quantity of copra shipped for the year ended 31 March 1956 amounted to 267 tons. Apart from copra the only exports are handicrafts.

Revenue is derived principally from export duty on copra, Customs duty of 12 1/2 per cent ad valorem on all goods entering the islands trading profits, and the sale of postage stamps. Revenue for the year 1955 was £18,699 (including subsidy from New Zealand) and expenditure £13,243.

Under the Tokelau Islands Copra Regulations 1952 a Copra Stabilization Fund has been established to be built up by a levy on purchases of copra for export, and is to be used to supplement the prices received by the producers, or by the purchasers on resale after export, as may be necessary from time to time. At 31 March 1956 there was £3,546 in the fund.

ROSS DEPENDENCY: DESCRIPTIVE.—The Ross Dependency comprises the sector of the Antarctic continent between 160° east and 150° west longitude, together with the islands lying between those degrees of longitude and south of latitude 60° south.

Within these boundaries there are an estimated 160,000–175,000 square miles of land and 130,000 square miles of permanent ice shelf. The land is, however, virtually entirely covered by ice, and is normally uninhabited.

Administration.—By Order in Council of 30 July 1923 under the British Settlements Act 1887 (Imp.) the territories of the Ross Dependency were brought within the jurisdiction of the New Zealand Government. From time to time laws for the Dependency have been made by regulations promulgated by the Governor-General of New Zealand.

Administrative powers are vested in the Governor-General of New Zealand, and administrative officers (commonly referred to as Administrators) have been appointed from time to time since 1923. In 1956 a Deputy Administrator was also appointed, and other officers were given the powers of stipendiary magistrate, coroner, and postmaster.

In 1956 a set of Ross Dependency stamps was issued. A post office has been established at Scott Base.

The New Zealand Geographic Board is the place-names authority for the Ross Dependency.

Exploration.—Various expeditions have operated within the area of the Dependency since the coastline was explored by Sir James Ross in 1841. In the twentieth century British and American explorers have investigated parts of the territory, but much still remains to be done.

In December 1956 a New Zealand expedition under the leadership of Sir Edmund Hillary sailed for McMurdo Sound in H.M.N.Z.S. Endeavour. In January 1957 Scott Base was established near Cape Armitage on Ross Island. The purpose of the expedition is two-fold: to take part in the crossing of the Continent from the Weddell Sea to Scott Base by the Commonwealth Trans-Antarctic Expedition, and to participate in the Antarctic programme of the International Geophysical Year. During the early months of 1957 the expedition was successful in finding a route and setting up depots across the Ross Ice Shelf and up the Skelton Glacier to the Polar Plateau.

For the purposes of the International Geophysical Year a joint New Zealand - United States of America scientific station, known as Adare Station, was established at Cape Hallett in January 1957. A United States expedition has also re-established Little America base near Kainan Bay, has operated an air-strip on the bay ice in McMurdo Sound near Hut Point, and has built an I.G.Y. station at the South Pole.

Whaling.—To date there has been little development of the economic resources of the territory, and commercial activity has been restricted to whaling.

Regulations dated 24 October 1929 prohibited whaling in the territorial waters of the Ross Dependency without a licence. During recent years, however, the whales taken in the Ross Sea have been caught by pelagic whalers. New Zealand is a member of the International Whaling Commission, the purpose of which is to enforce conservation of whale stocks.

An article on the Ross Dependency written by Mr M. J. S. Nestor appeared in the 1938 number of the Year-Book (pages 900–903).

NAURU.—Nauru Island is about half a degree below the equator and lies 166° 56' east of Greenwich. It is an elevated island about three and a half miles long and two and half miles wide, with a circumference of twelve miles, and an area of 5,263 acres. With the exception of a narrow coastal belt favourable for the growth of coconuts, and of a brackish lagoon, the island consists of phosphate deposits overlying a bed of coralliferous limestone. The island is completely surrounded by a coral reef, and beyond the reef the sea bed slopes sharply downwards at an angle of 45°. These two factors, together with the presence of the strong equatorial current of two knots, materially affect the shipping facilities of the island. The fact that the island lies in the latitude of the easterly trade winds, which blow from nine to ten months of the year, is also significant, since it explains the comparative absence of rainfall, a condition necessary for the existence of phosphate deposits. Before the Japanese occupied it on 26 August 1942, the Island of Nauru was administered under a mandate, dated 17 December 1919, conferred upon His Britannic Majesty and approved by the League of Nations. This mandate was held jointly by the Governments of Australia, Great Britain, and New Zealand, and by a mutual agreement the administration was in practice left to the Australian Government. On 13 September 1945 the Japanese garrison on the island surrendered, and civil administration was re-established on 1 November 1945. Nauru was brought under the International Trusteeship system by a trusteeship agreement which was approved by the General Assembly of the United Nations on 1 November 1947. The Governments of Australia, New Zealand, and the United Kingdom were designated as the joint administering authority, and it was agreed that the Australian Government should continue to administer the island on their behalf.

In 1951 an ordinance provided for the abolition of the Nauruan Council of Chiefs, a body established by custom, and the creation of a Nauruan Local Government Council. The latter Council is composed of nine Nauruans elected by all Nauruans, male or female, who are over twenty-one years of age. Voting is by secret ballot, and a preferential system of voting is employed. The Council is an advisory body which, subject to the Administrator's approval, may make rules covering certain specified subjects.

Financial figures quoted hereunder are in Australian currency.

The mining rights are vested in the British Phosphate Commissioners, subject to the rights of the Nauruan landowners, and the deposits, as well as those on Ocean Island, about 165 miles to the east of Nauru, are worked by the Commissioners. The royalty payable on phosphate shipments to or on behalf of the Nauruans is calculated at 1s. 6d. per ton and amounted to £101,953 for 1954–55. Administrative expenses are covered by direct payments by the Commissioners. These amounted to £293,000 for 1954–55.

The deposits do not appear to be simple guano, and some authorities consider them to be of a marine sedimentary origin raised from the sea bed and subjected to weathering. From the point of view of phosphate manufacture the deposits are of a very high grade, exports averaging 85.4 per cent tricalcic phosphate and 3.4 per cent calcium carbonate. Owing to the uneven nature of the outcrops of coralliferous limestone the extent of the deposits cannot be measured accurately, but it is estimated that there are between sixty-five and seventy million tons of phosphate rock available.

Of the 1,237,236 tons of phosphate exported in 1954–55 Australia received 663,580 tons and New Zealand 423,306 tons; the remainder was exported to the United Kingdom.

The following table shows the population of Nauru for the years 1952–55.

1952195319541955

* Includes 568 Gilbert and Ellice Islanders employed under contract by the British Phosphate Commissioners.

Nauruans1,6721,7451,8281,935
Immigrants—
  European253270291262
  Chinese759515552568
  Other Pacific Islands560874846911*
      Total Population3,2443,4043,5173,676

Revenue and expenditure and trade of the Nauru Administration since 1950–51 are given in the following table.

£

YearRevenueExpenditureExportsImports
1950–5185,019130,4911,378,579720,752
1951–5290,414146,7421,725,420544,001
1952–53163,408179,4231,994,045674,190
1953–54237,174266,9961,931,520615,716
1954–55303,674276,7832,165,163706,238

Imports consist almost entirely of food supplies and of machinery for the working of the phosphate deposits.

CHATHAM ISLANDS.—The Chatham Islands, which are composed of one main island, three small islands, and numerous reefs and Islets within a radius of thirty miles, lie 467 nautical miles east of Lyttelton, and have an area of 372 square miles. There are approximately 500 people on the islands, which are part of New Zealand proper, being attached to the Lyttelton Electorate for Europeans and to the Western Maori Electorate for Maori electors.

The islands were constituted a county in 1901, but the first Council was not elected until 1925. The Council obtains its revenue not from rates, but from import and export duties. The total revenue of the County Council for the year ended 31 March 1955 amounted to £7,613.

There is a cottage hospital at Waitangi, the main settlement and port of entry, and schools at Te Kairakau, Te Ore, Owenga, and Kaingaroa.

The island's major industry is sheep farming, there being no dairy farming. Some cattle are exported, but the islanders' greatest source of revenue comes from the export of sheep and wool. For the year ended March 1956, 22,744 sheep, 2,742 bales of wool, and 169 tons of fish were exported. Imports totalled 2,029 tons.

Approximately six trips per annum have been made to the Chatham Islands by T.E.A.L. flying boats during the past few years, but following the cessation of the flying-boat service across the Tasman the Chathams service was also discontinued. Ansett Airways flying boats have been chartered from time to time as found necessary to transport passengers. There is an irregular shipping service for the greater part of the year. Internal communications are not good, roadwork being made difficult and expensive by the extensive peat swamps. There are six party-telephone lines on the island. Isolated sheep stations maintain contact with the radio station at Waitangi by means of radio-telephones. A radio-telephone service was established with New Zealand early in 1953.

Chapter 44. SECTION 44—MISCELLANEOUS

Table of Contents

PUBLIC TRUST OFFICE.—In the early years of settlement in New Zealand those who wished to make provision for the administration of their estates on their death often experienced difficulty in selecting a suitable person competent and willing to act as trustee. That difficulty was natural in a new country where the colonists were fully occupied with their own affairs, and were unable to give to the property or business of another the close attention that was demanded. Even if an otherwise suitable trustee could be found, his solvency—an essential element in a trustee—might be in doubt, particularly when the value of colonial property fluctuated considerably and the financial position of an individual could quickly change for the worse. Again, changes of residence were frequent, and the trustee appointed might have left the colony or have moved to another part of it just at the time when his presence and services were most required.

In these circumstances the Public Trust Office was established in 1872 (it is now constituted under the Public Trust Office Act 1908), under the administration of the Public Trustee, who was constituted a corporation sole with perpetual succession and a seal of office. The main purpose of the original Act was to provide a means of overcoming the difficulties that have been mentioned and to make available to the public a trustworthy administration of the estates of deceased persons at a minimum cost, the integrity of the Public Trustee and his officers being guaranteed by the State. That continues to be the chief function of the Office, but since its establishment the range of service has been very considerably extended and the Public Trustee now acts in many diverse capacities—e.g., as administrator in intestate estates; executor and trustee under wills; trustee under marriage and other settlements; trustee of benefit or relief funds; agent or attorney for absentees or persons desiring to be relieved of business worries; sinking fund commissioner for local authorities; administrator of unclaimed lands and property; statutory administrator of the estates of mental patients (other than Maoris) where no committee of the estate has been appointed by the Court; manager (when so appointed by the Court) of the estates of aged and infirm persons unable to administer their own affairs; administrator of compensation moneys payable in respect of the death of a worker (unless the Court orders otherwise); and the administrator of mortgage investments forming part of the Government Superannuation Fund and the National Provident Fund. The wills of persons desiring the Public Trustee to act as their executor are prepared and held in safe custody by him, free of charge.

In lieu of obtaining probate or other grant of administration, the Public Trustee may file in an office of the Supreme Court an election by him to administer an estate (testate or intestate) if the gross value of the property in New Zealand is estimated not to exceed £1,000. If after the filing of the election the value of the property is found to exceed £1,500, the Public Trustee must obtain a grant of probate or administration in the ordinary way. This authority in many instances obviates the necessity for obtaining a grant of probate or administration, thus facilitating the administration of the estate and effecting a reduction in costs.

The experiment of establishing the Public Trust Office—one of the earliest examples of a State service—has proved an unqualified success and a striking testimony to the foresight of the Hon. E. C. J. Stevens, who first suggested the appointment of a Public Trustee, and Sir Julius Vogel, who was largely responsible for legislative effect being given to the proposal. Ample evidence of this is to be found in the fact that 18,321 estates and funds of a total value of £67,131,484 were under the Public Trustee's administration at 31 March 1956, as compared with the 257 estates, of a total value of £17,500, under administration in 1873. The beneficial results achieved did not pass unnoticed outside New Zealand and led to the establishment of similar offices in England and other parts of the British Commonwealth.

The progress that has been made in the present century is illustrated by the following table.

Year Ended 31 MarchEstates and Funds Under AdministrationWills of Living Persons on Deposit
NumberValue
 £No.
19002,6672,192,594675
192014,67920,860,68625,792
193018,54953,049,43768,253
194019,46862,622,17597,675
195018,31358,646,288146,288
195518,16365,877,309165,283
195618,32167,131,484169,348

The decrease since 1940 in the number of estates under administration is accounted for by the winding-up of numerous estates, a result of favourable market conditions.

The decrease in the value of estates and funds under administration in the period 1940 to 1950 was mainly due to the withdrawal of Government securities totalling over £8,000,000 held by the Public Trustee on behalf of the Public Debt Redemption Fund for application in reduction of the public debt, and of the transfer to the National Provident Fund of Government securities for more than £8,000,000 previously held by the Public Trustee on behalf of that fund.

The following is a classification of the estates and funds which came under administration during the year ended 31 March 1956, and of all estates and funds under administration at that date.

New Estates and Funds During 1955–56Estates and Funds Under Administration at 31 March 1956
NumberValueNumberValue
  £ £
Wills estates2,3807,740,7277,96931,986,944
Trusts and agencies3261,382,3962,47214,667,746
Intestate estates584564,9261,5881,457,623
Mental patients' estates8332,060,6724,1517,247,156
Miscellaneous estates and funds1101,062,7512,14111,772,015
      Totals4,23312,811,47218,32167,131,484

Capital moneys becoming available for investment either form part of the Common Fund of the Office or, at the option of the testator or settlor, are invested in such securities as he may specify. Interest is allowed on moneys in the Common Fund at the rate fixed from time to time by the Governor-General in Council (raised from 3 1/2 to 3 3/4 per cent from 1 April 1956) and is free of all commission and other charges. Both capital and interest are guaranteed by the State, thus affording the complete security that it is the object of the Office to provide. On the other hand, moneys directed to be invested in specified securities do not carry the State guarantee and, subject to the Public Trustee's ordinary liability as a trustee, any loss resulting from their investment falls upon the estate concerned. Commission is charged on the collection of the interest. Recognizing that the safety of the moneys is thereby assured, the great majority of testators and settlers desire their funds to be placed in the Common Fund.

Charges and commission rates are contained in the Public Trust Office Amending Regulations 1954.

New investments completed during the year ended 31 March 1956 totalled £2,366,962, the favourable terms offered by the Office again proving popular with borrowers. The investments held by the Office at 31 March 1956, inclusive of those held on behalf of certain estates and funds whose moneys are required to be specially invested, totalled £25,555,440.

The foregoing figures relate exclusively to investments made by the Office, and do not include investments which constituted assets of estates when the latter came under the Public Trustee's administration and which are still held as assets of those estates.

During the year ended 31 March 1956, 8,994 wills were deposited with the Public Trustee. The number of wills on deposit at 31 March 1930 appointing the Public Trustee executor was 68,253; by 31 March 1940 it had increased to 97,675; later increases brought the number to 169,348 at 31 March 1956. In addition to preparing the will of the testator in the first instance, the Office prepares any subsequent will or codicil that may be necessary to give effect to alterations desired by him. During the year ended 31 March 1956 effect was given in 6,756 cases to changes desired by testators.

ESTATES PASSED FOR DEATH DUTY.—Particulars of deceased persons' estates certified during the calendar year 1955 are given in the tables following. Comparative figures for 1954 and 1953, where available, are appended. Estates of Maoris, in value a negligible proportion of the total, are included, other than hereditary interests in Maori Land.

Size of Estate (Net Value)Number of EstatesAggregate Net Value of EstatesDeath Duties AssessedDuties as Per Cent of Net Value
MalesFemalesMalesFemales
Estates Passed for Duty 1955
£(000) £(000)  £££Per Cent
Under 11,8471,663804,313766,95719,6111.25
1 and under 21,2761,0051,892,7491,483,47282,3162.44
2 and under 38846822,165,4871,665,903133,2443.48
3 and under 45523501,916,7221,206,778138,2814.43
4 and under 53362221,494,418989,908140,6095.66
5 and under 62101281,152,930700,009112,6226.08
6 and under 7153120987,945777,986142,3558.06
7 and under 8136811,019,985605,374141,4728.70
8 and under 911759995,728497,226151,063.12
9 and under 1010255968,598518,097172,15111.58
10 and under 153421294,186,0731,540,639806,94914.09
15 and under 20183603,180,1321,032,463702,33716.67
20 and under 30188554,577,0901,303,7241,201,24520.43
30 and under 4078262,688,628873,084881,30024.74
40 and under 503981,720,168364,508584,88628.06
50 and under 1005173,409,553469,8471,341,97834.10
100 and over931,457,194419,927725,00238.62
    Totals, 19556,5034,65334,617,71315,215,9027,477,42115.00
    Totals, 19546,4444,56035,997,19214,534,3158,444,01216.71
    Totals, 19536,2274,26531,959,74113,301,6417,485,11416.54

The average net value per estate certified in 1955 was £4,467, inclusive of a small number of “nil” estates (males, £5,323; females, £3,270). Estate duty on male estates amounted to £4,611,696 and on female estates £1,560,907. Succession duty on the former was £875,163 and on the latter £429,655.

Although the total net value of estates assessed during 1955 compares substantially with the figure for the previous year, the yield in duty has decreased by over 10 per cent. This was to be expected in view of the far-reaching changes in the law relating to death duties introduced by the Estate and Gift Duties Act 1955, which applied to the estates of all persons dying on or after 21 July 1955. By this Act, to which more detailed reference is made in Section 30B (Taxation), estate and succession duties were replaced by a single duty scale of estate duties, involving a marked reduction in estimated tax yield. The 1955 figures of duties assessed reflect the sizeable proportion of estates certified under the new provisions.

The table of averages and percentages given below illustrates the increase in the amount of duty assessed in proportion to the final net value of the estate.

Size of Estate (Net Value)Average Net Value Per EstateAverage Duty Assessed Per Estate
Estate DutyPercentage of Average Net ValueSuccession DutyPercentage of Average Net ValueTotal DutyPercentage of Average Net Value
Estates Passed for Duty 1955
£(000) £(000)££Per Cent£Per Cent£Per Cent
Under 144820.4530.6751.12
1 and under 21,480231.55130.88362.43
2 and under 32,447612.49240.98853.47
3 and under 43,4631123.23411.181534.42
4 and under 54,4521914.29611.372525.66
5 and under 65,4822654.83691.263346.09
6 and under 76,4694146.401071.655218.05
7 and under 87,4905166.891361.826528.70
8 and under 98,4826898.121702.0085910.13
9 and under 109,4698809.292172.291,09711.59
10 and under 1512,1591,40711.573062.521,71314.09
15 and under 2017,3362,44514.104462.572,89116.68
20 and under 3024,2014,10316.958413.484,94420.43
30 and under 4034,2477,05020.591,4244.168,47424.74
40 and under 5044,35410,42323.502,0214.5612,44428.06
50 and under 10066,88619,74229.523,3965.0823,13834.59
100 and over156,42751,06232.649,3545.9860,41638.62
    All estates, 19554,46755312.381172.6267015.00
    All estates, 19544,61058512.691823.9576716.64
    All estates, 19534,31454212.561723.9971416.55

A summary showing gross assets, notional estate, and debts and charges, classified in broad groups according to size of estate, is now given. As the figures for assets are taken from the administrators' statements, prior to checking and adjustment, the residual value (total assets less debts and charges) does not agree with the figure for aggregate net value of estates given in the preceding table, the difference amounting to some £700,000. This may be accounted for by the fact that under rather than over valuation is more common in the statement of gross assets, and that subsequent investigation sometimes discloses the existence of unstated assets.

Size of Estate (Net Value)
Under £5,000£5,000 and Under £10,000£10,000 and Under £20,000£20,000 and Under £50,000£50,000 and Under £100,000£100,000 and OverAll Estates
Gross assets—
New Zealand property—
  Cash£(000)3,5331,5991,5221,4893652808,788
    Average per estate£4011,3782,1313,7796,28523,302788
  Furniture, effects, etc.£(000)1,04431828322048171,931
    Average per estate£1182743975588341,417173
  Farm stock, implements£(000)2162334878222771412,177
    Average per estate£252006822,0874,78211,766195
  Private business interests£(000)16321541354930511,645
    Average per estate£181855791,3945,26142147
  Assurance policies£(000)7914004886211691362,605
    Average per estate£903456841,5762,91811,299234
  Loans£(000)7097361,1309163461083,945
    Average per estate£806341,5832,3255,9639,012354
  Shares, stock, etc.£(000)7871,1991,8742,5451,3108178,532
    Average per estate£891,0322,6246,46022,58168,069765
  Real property£(000)7,0152,9833,3273,48282438818,019
    Average per estate£7962,5694,6598,83714,21132,3331,615
  Interests (estates and trusts)£(000)25120117124973 946
    Average per estate£291732406331,260 85
  Other property£(000)49829430742689111,625
    Average per estate£562534301,0801,538938146
  Foreign property£(000)3292365213121671581,723
    Average per estate£372037297922,88813,135154
  Notional estate£(000)722318353505112412,050
    Average per estate£822744941,2831,9293,386184
Debts—
  Unsecured (New Zealand)£(000)8982943515351451392,362
  Secured (New Zealand)£(000)1,049373532321110812,466
      Totals (including foreign)£(000)1,9716768938622552204,877
      Average per estate£2245831,2512,1884,39318,330437

The number of estates in each age and group for 1955 are classified below according to net value of estate.

Age Group, in YearsUnder £500£500 to £999£1,000 to £1,999£2,000 to £2,999£3,000 to £3,999£4,000 to £4,999£5,000 to £9,999£10,000 to £14,999£15,000 to £19,999£20,000 to £29,999£30,000 to £39,999£40,000 to £49,999£50,000 to £99,999£100,000 and overTotal
Under 201772 2         28
20 and under 252819207212       79
25 303412161273611     92
30 35321227126 33  1 1 97
35 4037152616681152212  131
40 45453147252513137131   211
45 5055427455222240173751  343
50 55109761067340294529819421 541
55 601169115187483070281817946 675
60 65169129172137725311246232411312954
65 7022417528620013075154563927119921,397
70 7533323539028013682195854447134911,854
75 803202464213021861022247738342481262,000
80 8525318829920712262159734128745 1,448
85 9014994176977448792515188912 804
90 9544274145181932157127 21270
95 and over1491351893 521  70
Unspecified1022114653713     162
      Totals2,0811,4292,2811,5669025581,16147124324310447581211,156
      Per Cent18.812.820.414.08.15.010.44.22.22.20.90.40.50.1100.00

BANKRUPTCY.—The law relating to bankruptcy in New Zealand is contained in the main in the Bankruptcy Act 1908 (which is a consolidation of previous enactments) and its amendments. Jurisdiction in bankruptcy matters is vested in the Supreme Court. The Governor-General, however, may by Proclamation confer similar jurisdiction on a Magistrate's Court in cases where the liabilities do not exceed £300.

All proceedings in bankruptcy are commenced by a petition filed in the Court. A petition may be filed either by the debtor or by a creditor, a fee of £6 being payable. The filing of a debtor's petition is equivalent to an order of the Court adjudging the debtor a bankrupt, no order being required in this case. Not less than £30 in the aggregate must be owing by the debtor to the creditor or creditors filing a petition.

Section 7 of the Statutes Amendment Act 1947 increased the value of furniture which a bankrupt may select and retain from £50 to £100.

Immediately on a debtor's petition being filed or adjudication being made on a creditor's petition, the Registrar of the Court gives notice to the Official Assignee in Bankruptcy, in whom all the property of the bankrupt thereupon vests. The bankrupt must hand over his books of account, papers, deeds, etc., to the Official Assignee, and furnish such information as is necessary to enable the Assignee to administer the estate to the best advantage. The bankrupt may also be required to produce statements of accounts, balance-sheets, etc., covering the period of three years immediately prior to the commencement of his bankruptcy, give inventories of his property and debts, and generally assist in the realization of his property. The Assignee may summon the bankrupt before himself, or before a Magistrate, to be examined on oath. The Bankruptcy Amendment Act 1927 forbids (save with the consent of the Court, on the application of the Official Assignee) the publication of a report of any examination of a bankrupt before the Assignee or of any matter arising in the course of such an examination.

The Official Assignee is empowered to sell the bankrupt's property, to claim debts due to the bankrupt estate, to carry on the business of the bankrupt so far as is necessary or expedient for its beneficial winding-up, or to divide the property among the creditors. The bankrupt may be appointed by the Official Assignee to manage his estate or carry on his business on behalf of the creditors.

Creditors may accept a composition in satisfaction of the debts due to them. In such a case, after approval of the Court, a deed of composition is executed and filed, and the bankruptcy annulled.

On application being made by the bankrupt, the Court is empowered to grant him an order of discharge, either absolute, suspended, or conditional. The application may be opposed either by the Official Assignee or by any creditor who has proved his claim. A public examination of the bankrupt may be demanded by the Assignee on a resolution by creditors.

Undischarged Bankrupts.—Section 14 of the Bankruptcy Amendment Act 1927 requires the annual compilation of a list showing the names, occupations, and other particulars of all persons who have been adjudged bankrupt since 31 March 1927, and who have not obtained an order of discharge, or whose order of discharge is suspended for a term, or is subject to conditions remaining unfulfilled.

Section 9 of the Statutes Amendment Act 1936 provides that the Minister of Justice may from time to time publish the list, or so much of it as relates to adjudications within any specified period ending on the date of the compilation of the list.

Transactions in Bankruptcy.—The number of transactions in bankruptcy during the last five years is given below. A long-term record of the more important features will be found in the Statistical Summary given later in this volume. From and including the year 1954 the number of Court orders for winding-up companies by an Official Assignee is shown in addition to the figures of individual bankrupts, financial transactions on behalf of companies being included in the later tables.

YearNumber of BankruptciesPetitions by DebtorsAdjudications on Petitions by CreditorsOrders of Discharge or Annulment GrantedOrders for Winding-up Companies by Assignee

* Not available.

19521681076138*
19532151744141*
1954263214496114
1955293257366311
1956371309628019

In the case of a partnership, not only the partnership but each partner is counted in the total of transactions.

During the later war and immediate post-war years the number of bankruptcies was exceptionally low, extremely buoyant business conditions prevailing throughout this period. Since 1947 there has been a decided upward trend, although the numbers in recent years are still well below the average of the period 1920–40.

The general bankruptcy statistics do not cover private assignments and compositions, but relate only to cases dealt with by Official Assignees. Certain statistics of private assignments are available, and details of these appear on page 1139.

Assets and Liabilities.—Debtors are required to file a statement of the extent of their liabilities and assets, but there is usually a marked difference between these statements and the amounts actually realized by the Official Assignee or the debts subsequently proved by creditors.

It should be understood that in the following table the figures in each column refer to all transactions under the respective heads during the year, the amounts realized by Assignees and paid in dividends and preferential claims relating partly to the current year's bankruptcies (many of which, however, are not disposed of during the year) and partly to cases commenced in previous years. For the three latest years company windings-up are included in the totals.

YearNumber of BankruptciesAmounts Realized by Official AssigneesAmount of Debts ProvedAmounts Paid in Dividends, Preferential and Secured ClaimsAmounts Paid in Government Commission

* Including 1 deceased person's estate under Part IV of the Administration Act 1908.

  ££££
19465220,94248,50617,2441,493
19477415,52844,73113,8991,387
194814850,280143,28232,3622,843
194917938,410203,17324,5172,301
195014249,252125,91739,8213,498
1951145*48,269136,82246,8973,916
1952168*56,241251,12929,0533,322
1953215*72,162381,01646,9164,597
195427782,571413,44759,2124,938
1955304*112,418382,32296,4849,337
1956390130,574547,75178,5036,921

The table following shows for each of the last eleven years the average amount of debts proved per estate, and also the proportion of dividends, preferential claims, and secured claims, to debts.

YearAverage Debts Proved Per EstateProportion of Dividends, etc., to Debts
 £Per Cent
194693335.55
194760431.07
194896822.59
19491,13512.07
195088731.62
195194434.28
19521,49511.57
19531,77212.31
19541,49314.32
19551,25825.24
19561,40414.33

Apart from dividends, preferential and secured claims, and Government commission, payments made from assets realized include cost of actions, solicitors' fees, and expenses incurred in managing estates for the benefit of creditors.

Amount of Liabilities.—The following table shows for each of the last five years a classification of bankruptcies according to the amount of stated liabilities.

Liabilities19521953195419551956

* Total excludes 1 partnership.

† Total excludes 2 partnerships. The liabilities for each partner are included, but not the partnership.

Under £2504239525275
£250 and under £5003445645975
£500 and under £1,0003748587897
£1,000 and under £2,0002436656576
£2,000 and under £5,0002236273446
£5,000 and over810111619
      Totals167*214*277304388

Most failures are for comparatively small amounts. Of a total of 1,350 bankruptcies during the five years surveyed 19 per cent were for liabilities of less than £250 and 40 per cent for liabilities under £500.

Occupations of Bankrupts.—The table below shows in broad groups the occupations by industry of those persons adjudged bankrupt in the last five years. The revised classification is based on the international standard industrial code. Companies are here excluded.

19521953195419551956
Agriculture and livestock production1310152825
Forestry, hunting, and fishing22573
Mining and quarrying  112
Manufacturing—
    Food and beverages 2348
    Footwear and textiles42526
    Wood, furniture, and fixtures 46510
    Printing and publishing13 1 
    Machinery (not electrical)27545
    Transport equipment4341010
    Other65527
Construction3533496571
Wholesale and retail trade3338474850
Other commerce  2 3
Transport, storage, and communication1938293063
Personal and community services2014253029
Activities not adequately described—
  Contractor2131755
  Labourer1124271826
  Other1516183346
      Totals167214263293369

The types of activity in which bankrupts were engaged at the time of failure frequently bear little relationship to the fact of insolvency. Personal extravagance or business incompetence are probably much more important factors in the majority of cases.

Of the 19 companies wound up by court order during 1956 the nature of activity in each case was described as follows: building, 3; wholesale and retail trade, 5; earth-removing contractors, 2; fishing, 1; cleaning, 1; electrical equipment, 1; transport, 1; share dealers, 1; commission agents, 1; cartage contractors, 1; publishing, 1; proprietors of flats, 1.

The occupational status of individual bankrupts during each of the calendar years 1946–56 is given in the following table.

YearOccupational Status
Working for Salary or WagesEmployer of LabourWorking on Own Account But Not Employing LabourTotal

* Excludes 1 partnership.

† Excludes 2 partnerships. The occupation of each partner is included, but not the partnership.

‡ Total includes one retired person.

194616171952
194727182974
1948483664148
1949523493179
1950444355142
1951612657144*
1952644063167*
1953913489214*
195410337123263
195510839145293
195618849132369

Private Assignments.—Official bankruptcies, as explained earlier, do not comprise all financial failures and the bankruptcy statistics have been supplemented since 1928 by the collection of data relating to private assignments. The statistics cover all operations arising out of deeds of assignment made under section 167 (2) of the Stamp Duties Act 1923.

Amount of Liabilities.—The following table classifies estates assigned during the last five years available according to the amount of liabilities.

Liabilities19511952195319541955

* Includes 1 estate in which the assignor was subsequently adjudged bankrupt.

† Includes one assignment not proceeded with.

‡ Includes 3 estates in which the assignors were subsequently adjudged bankrupt.

Under £250 
£250 and under £500 1   
£500 and under £1,00022311
£1000 and under £2,00011458
£2,000 and under £5,000668612
£5,000 and over327810
Unspecified 11 2
      Totals1213*232033

The amounts of liabilities involved are relatively much higher for private assignments than for bankruptcies. For the five years 1951–55, 90 per cent of privately assigned estates had liabilities of £1,000 and over. For bankruptcies, only 36 per cent of the total number fell into this category.

Occupations of Assignors.—The occupations of assignors in broad industrial classes during the last five years available were as follows. The classification used follows that of the occupational table of bankrupts given earlier in this section.

19511952195319541955

* Includes 1 estate in which the assignor was subsequently adjudged bankrupt.

† Includes one assignment not proceeded with.

‡ Includes 3 estates in which the assignors were subsequently adjudged bankrupt.

Agriculture and livestock production111 3
Manufacturing233 2
Construction4211916
Wholesale and retail trade14 35
Transport, storage and communication1 132
Personal and community services12134
Activities not adequately described21621
      Totals1213*232033

Of the 1955 total, 19 were employers of labour and 9 were working on own account.

Provisional figures for 1956 show the number of private assignments as 40. Data relating to private assignments are normally collected much later than those for bankruptcies, as a longer period is necessary for settlement of the financial arrangements in the former case.

CINEMATOGRAPH THEATRES.—The statistics of cinematograph theatres relate only to picture theatres, and do not purport to show employees, revenue, and expenditure of the motion-picture industry as a whole. In particular, the full revenue and expenditure in connection with screen advertising, and also head office expenses of controlling companies (including such items as interest on debentures and mortgage charges), unless recovered from exhibitors, are not recorded in the statistics. The item “Rent” under “Theatre expenditure” does not represent the rental value of all theatres, but only the rent paid where theatres were leased or rented.

The collection of statistics relating to cinematograph theatres was inaugurated in 1938–39 and continued annually until 1945–46; thereafter the frequency of collection has been every alternate year until 1953–54. The next collection is to be taken for the year 1956–57. The principal data for the last three years available are given below. The statistics cover the operations of all classes of cinematograph theatres—viz., (a) those operating six days per week; (b) those operating on odd days per week; (c) circuit, or itinerant operators.

1949–501951–521953–54

* Figures revised.

Theatres*
  Screening 6 days per week202198195
  Screening odd days per week315320328
  Circuit837159
      Totals600589582
Theatres according to seating accommodation*
  Other than circuit theatre—
Under 200839191
200 and under 500216219220
500 and under 1,000175167170
1,000 and under 1,500323132
Over 1,500111010
Circuit theatres837159
      Totals600589582
1949–501951–521953–54
Seating accommodation (all theatres)—
  Seats, 1s. 6d. and under (excluding amusement tax)No.207,463120,200102,962
  Seats, 2s. (excluding amusement tax)No.50,44686,27298,309
  Seats, 2s. 6d. (excluding amusement tax)No.14,58659,74146,872
  Seats, 3s. (excluding amusement tax)No.11,277
  Seats over 3s. (excluding amusement tax)No.5,482
      TotalsNo.272,495266,213264,902
Number of paid admissions (000)No.36,35336,34237,368
Average admission charge (including amusement tax)d.18.420.723.6
Average attendance per head of populationNo.19.318.618.1
Persons engaged—
Full time—MalesNo.678637590
FemalesNo.567542456
Part time—MalesNo.738842908
FemalesNo.1,1321,2391,274
      TotalsNo.3,1153,2603,228
Revenue—
Admission receipts (including amusement tax)£(000)2,7903,1323,680
Screen advertising£(000)11183127
Other receipts£(000)118172153
      Totals£(000)3,0193,3863,959
Expenditure—
Salaries and wages£(000)623733840
Film hire£(000)768827982
Freight£(000)474649
Advertising£(000)194214253
Amusement tax£(000)136205300
Rent£(000)292306319
Repairs and maintenance£(000)143123116
Depreciation£(000)747981
Other expenses£(000)341378465
      Totals£(000)2,6182,9113,404

Features of the latest figures include the continued decline in the number of theatres operated under circuit licences, this loss being made up by an increase in the number of theatres operating under a single theatre licence. Average admission charges at 23.6d. record a rise of 14 per cent over those of the previous year covered (1951–52), and although paid admissions increased to 37,368,256, over a million more than 1951–52, the average annual attendance per head of population has fallen from 18.6 to 18.1.

The following table gives figures of cinema attendances and takings from 1938–39 (the first year these statistics were collected) to the latest collection.

YearAdmissionsGross Admission TakingsAmusement TaxNet Admission TakingsAverage Admission PriceAverage Attendance Per Person
 (000)£££d.No.
1938–3929,8091,893,61746,8381,846,77915.218.5
1939–4031,1712,009,66253,7831,955,87915.519.1
1940–4131,4922,107,44358,1462,049,29716.119.3
1941–4231,2182,133,52369,7992,063,72416.419.1
1942–4334,0342,421,05887,6092,333,44917.120.8
1943–4438,2572,803,086121,1692,681,91717.623.4
1944–4535,5202,588,111110,2412,477,87017.521.3
1945–4636,9662,817,646131,1992,686,44718.321.6
1947–4834,0782,634,730123,0342,511,69618.618.9
1949–5036,3532,789,696135,6842,654,01218.419.3
1951–5236,3423,131,550205,4672,926,08320.718.6
1953–5437,3683,679,540300,4443,379,09623.618.1

Cinema Attendance in Principal Countries.—The table below shows the number of admissions per head per year in those countries with the highest rates of attendance. These figures are taken from UNESCO (1956) Basic Facts and Figures.

CountryYearNumber of Admissions
Total (Millions)Per Head
United Kingdom19541,27625.0
New Zealand19533718.1
Canada195325917.5
United States of America19542,55816.4
Italy195376816.0
Republic of Ireland19504615.5
Australia195413415.3
Malta and Gozo1952515.1
Hong Kong19523415.1
German Federal Republic and West Berlin195473314.2
Saar19511414.2
Israel19512213.6
Denmark19535913.5
Austria19539313.4
Belgium195211413.0
Russia (U.S.S.R.)19552,50512.5
Czechoslovakia195415012.0
Spain195331411.0
Norway1953339.9
British Guiana195249.9
Sweden1952679.4
France19543818.9

Classification by Provincial Districts.—The following two tables show some of the principal statistics of cinemas for 1953–54 by provincial districts. It will be noticed that admissions in North Island districts are higher per person than in the South Island, with the notable exception of Westland. In total, attendances in the North Island represented 19.1 visits a year to the cinema for every member of the population as against 15.2 visits in the South Island. The popularity of the cinema is most pronounced on the West Coast. Average attendances per person in Westland Provincial District were 23.8, far exceeding those of other districts, and approximately 31 per cent higher than the average attendance for New Zealand.

Provincial DistrictPopulation, 1 April 1954Number of TheatresSeating AccommodationPaid AdmissionsAverage Admission ChargeAverage Attendance Per Person

* Based on mean population in this case.

 No. No. of Seats(000)d.No.
Auckland817,276249107,95215,51923.319.0
Hawke's Bay98,0002812,6311,80123.618.4
Taranaki92,1003412,7861,47122.816.0
Wellington421,6008954,5978,53224.020.2
Marlborough24,70082,64631324.012.7
Nelson71,400279,8671,10521.215.5
Westland18,800144,71044720.823.8
Canterbury295,9645629,3704,61924.815.6
Otago—
  Otago portion167,1004619,3662,40425.314.4
  Southland portion80,8003110,9771,15822.414.3
      Totals2,087,740582264,90237,36823.618.1*
Provincial DistrictGross Admission TakingsAmusement TaxNet Admission TakingsFilm HireFilm Hire as a Proportion of Net Admission Takings
 ££££Per Cent
Auckland1,503,7737,9051,385,868396,83828.6
Hawke's Bay177,15014,799162,35151,88232.0
Taranaki139,45011,934127,51635,79528.1
Wellington853,43272,009781,423228,07429.2
Marlborough31,3642,98128,3836,53223.0
Nelson97,7917,62690,16526,08128.9
Westland38,7152,26336,4529,69726.6
Canterbury476,66341,318435,345128,41229.5
Otago—
  Otago portion253,26120,881232,38067,16828.9
  Southland portion107,9418,72899,21331,22431.5
      Totals3,679,540300,4443,379,096981,70329.1

Classification of Theatres.—The following table shows the classification of theatres according to number of screening days per week and of circuit operators. Figures for theatres screening odd days and classified in circuits have been revised.

ScreeningNumber of TheatresSeating AccommodationPaid AdmissionsAdmissions Per SeatAverage Admission Charge

* Twelve circuits.

  No. of Seats(000)No.d.
Six days per week195162,78831,256192.024.5
Odd days per week32892,4795,80762.819.5
Circuit59*9,63530631.818.0
      Totals582264,90237,368141.123.6
ScreeningGross Admission TakingsAmusement TaxNet Admission TakingsFilm HireFilm Hire as a Proportion of Net Admission Takings
 ££££Per Cent
Six days per week3,184,800269,6702,915,130850,94829.2
Odd days per week471,80429,015442,789125,74728.4
Circuit22,9361,75921,1775,00823.6
      Totals3,679,540300,4443,379,096981,70329.1
ScreeningPersons EngagedRevenueExpenditure
Full TimePart Time
MaleFemaleMaleFemale
 £(000)£(000)
Six days per week5264453839653,4202,916
Odd days per week5910504305515465
Circuit512142524
      Totals5904569081,2743,9593,404

PATENTS, DESIGNS, AND TRADE MARKS.—As from 1 January 1955 new legislation came into force replacing the earlier composite 1921–22 Act, the Acts concerned being the Trade Marks Act 1953, the Patents Act 1953, and the Designs Act 1953. The total number of applications under the Patents, Designs, and Trade Marks Act 1921–22 and the new Acts for the grant of letters patent and for the registration of designs and trade marks during the financial year 1955–56 was 4,190, which was 196 less than the previous year.

The following table shows the number of applications for patents and for the registration of trade marks and designs in each of the last twelve years.

YearPatentsTrade MarksDesigns

* Year ended 31 March.

19442,045924104
19452,6511,320188
19463,0251,766351
19472,7531,670237
19482,4691,439229
19491,9841,292255
19501,9871,422246
19512,0471,439165
19521,9521,390177
19532,1241,358216
1954–55*2,4381,703245
1955–56*2,2981,631261

The total receipts of the Patent Office for 1955–56 amounted to £45,739, of which patent fees amounted to £31,166; trade mark fees, £13,807; design fees, £744, and copyright fees, £22. Payments during 1955–56 amounted to £36,408.

Patents.—The number of applications for letters patent in 1955–56 was 2,298, as compared with 2,438 in 1954–55 and 2,124 in 1953.

The applications received during 1955–56 may be broadly classified as follows: Mechanical engineering, 683; electronics, 346; chemistry, 420; primary industries, 263; building construction, 295; home science and miscellaneous, 291.

New Zealand with 719 applications held the lead from Great Britain (650), followed by the United States of America (424), Australia (181), with the remainder (324) distributed among twenty-two other countries.

Trade Marks.—The number of applications in respect of trade marks during 1955–56 was 1,631, as compared with 1,703 in 1954 and 1,358 in 1953. Classes 5 (pharmaceutical, veterinary, and sanitary substances) and 25 (clothing) again predominated with 207 and 185 applications respectively; and they were followed by Class 3 (soaps, cosmetics, etc.), 117; Class 1 (chemical products used in industry), 104; Class 9 (electrical apparatus), 94; and Class 30 (tea, coffee, cocoa and cereal products), 84.

The countries from which the applications originated were: New Zealand, 562; Great Britain, 428; United States of America, 247; Australia, 135; with the remainder (259) distributed between sixteen other countries.

Renewal of the registration of 1,403 trade marks was effected during the year.

Designs.—Applications for the registration of designs in 1955–56 totalled 261, as compared with 245 in 1954 and 216 in 1953. The total number of applications since the inception of design registration in New Zealand is 7,405.

INDUSTRIAL EFFICIENCY.—The Legislature of New Zealand introduced in 1936 a measure designed “to promote the economic welfare of New Zealand by providing for the promotion of new industries in the most economic form and by so regulating the general organization, development, and operation of industries that a greater measure of industrial efficiency will be secured.” This legislation became operative as the Industrial Efficiency Act 1936, and under it the Bureau of Industry was constituted.

The Industrial Efficiency Act conferred on the Bureau functions of an advisory nature to the Minister concerning the administration of the Act, and established it as licensing authority for such industries as were brought under the provisions of Part III of the legislation.

Of recent years Government policy has been to decontrol those industries which no longer require the protection afforded by the Act and, where a continuation of licensing is justified, to achieve this by means of separate legislation designed to suit the particular needs of the industry concerned.

The Industries and Commerce Act 1956, which came into force on 1 April 1957, repeals the Industrial Efficiency Act 1936 but provides for the continuation of licensing by regulation under clauses 19 and 20. The three industries—the manufacture of paua shell for sale, of paper pulp or paper products, and of pneumatic rubber tires and tubes for motor vehicles—still subject to licensing under the Industrial Efficiency Act, come within the provisions of the Industries and Commerce Act 1956.

Two industries previously licensed under the 1936 Act are now licensed under separate legislation.

The Motor Spirits Distribution Act 1953 was passed for the purpose of taking over control of the licensing of the wholesaling and retailing of motor spirits. This Act was brought into operation by Proclamation on 10 March 1955.

A further Act, the Pharmacy Amendment Act, passed at the close of the 1954 session, removed the business of a pharmaceutical chemist from control under the Industrial Efficiency Act. The 1954 Act permits any chemist or company in which not less than 75 per cent of the share capital is owned by a chemist or chemists to establish one pharmacy. Companies in which less than 75 per cent of the share capital is chemist-owned must, however, secure the consent of the Pharmacy Authority, set up under the Act, before commencing business, and in all cases the establishment of more than one pharmacy under the same ownership is subject to the consent of the Pharmacy Authority.

GENERAL ELECTIONS.—A general election of parliamentary representatives was held in November 1954, voting in New Zealand for both European and Maori electorates taking place on the thirteenth day of November. A summary of the voting in the European electorates for the 1954 and the four preceding elections is shown below.

19431946194919511954

* Including votes recorded by members of Armed Forces (including those overseas).

Number of votes recorded for candidates elected495,380*591,399*609,584613,378*559,484*
Number of votes recorded for candidates defeated45,990*419,688*425,486419,129*499,767*
Number of informal votes9,957*7,999*6,7243,630*7,559*
      Total number of votes recorded921,327*1,019,086*1,041,7941,036,137*1,066,810*
Percentage of votes recorded for candidates elected to total valid votes recorded54.3558.4958.8959.4152.82
      Total number of electors on roll (where contest)1,000,1971,081,8981,113,8521,166,3751,209,670
Number of districts where no contest2    
Percentage of votes recorded for candidates elected to total number of electors on roll49.5354.6654.7352.5946.25
Number of electors voting as absent voters35,89848,67347,86760,30752,226
Number of electors exercising postal votes18,12824,92025,89533,85729,678

The numbers of electors on the European roll in 1954 was 1,209,670. The interest in the 1954 poll may be measured by the number of votes recorded to the number on the roll—viz., 88.2 per cent, as compared with the 1951 figure of 88.8 per cent.

The strength of the political party representation among Members of Parliament after the 1954 elections was National 45, Labour 35.

A statement of voting in individual electorates (both European and Maori) at the general election in 1954 is given on pages 1065–1069 of the 1955 Year-Book.

By-elections.—Since the general elections of 1954 there have been two by-elections. The cause of one vacancy was the death of the sitting member, the Hon. A. McLagan, and at the by-election held on 27 October 1956, for Riccarton Electoral District, Mr M. A. Connelly was elected the new member for the district. The second by-election on 6 April 1957 resulted from the resignation of the Hon. W. Sullivan, and Mr P. B. Allen was elected as the new member for the Bay of Plenty Electoral District.

National Licensing Polls.—The licensing poll of 13 November 1954, held in conjunction with the parliamentary elections, was the ninth at which the three issues—national continuance. State purchase and control, and national prohibition (without compensation)—were submitted to the electors. Official figures of the 1954 poll, together with those of the four preceding polls, were as follows.

 19381943194619491954
For national continuance546,995529,386542,681660,573672,754
For State purchase and control96,131123,701202,664135,982164,380
For national prohibition263,208269,800259,162268,567250,460

The percentage of votes recorded for State purchase and control was 10.6 of the total votes in 1938, 13.4 in 1943, 20.2 in 1946, 12.8 in 1949, and 15.1 in 1954. National continuance reached 63.4 per cent in 1935, since when it fell gradually to 54.0 per cent in 1946, recovered substantially at the expense largely of the State purchase and control vote to 62.0 per cent in 1949, and remained almost constant at 61.9 per cent in 1954. Votes cast in favour of national prohibition amounted to 47.3 per cent in 1925, but fell heavily at each of the next two polls, reaching 29.6 per cent in 1935. There was little variation in this percentage in 1938 and 1943, but further falls to 25.2 per cent and 23.0 per cent were recorded in 1949 and 1954 respectively.

The voting results in each licensing district, for the local option polls, and for the special licensing polls in 1954, are given on page 1070 of the 1955 issue.

LICENSING.—The principal Act dealing with licensing of the sale of liquor is the Licensing Act 1908 and its amendments. An important amendment was the Licensing Amendment Act 1948 which provided for the establishment of a Licensing Control Commission with general functions of—

  1. Generally to supervise the activities of Licensing Committees in the performance of their functions:

  2. To prescribe standards to be complied with in the provision of accommodation, services, and other facilities for the public and for lodgers, guests, or employees in licensed premises:

  3. To control the Licensing Fund:

  4. To review from time to time the distribution of publicans', accommodation, tourist-house, and wholesale licences throughout New Zealand:

  5. To determine what publicans', accommodation, tourist-house, and wholesale licences are unnecessary, and the amount of compensation to be paid in respect of cancellation:

  6. To determine the number of new publicans', tourist-house, and wholesale licences to be issued in each licensing district, and, subject to the provisions of this Act, the situation of the premises in respect of which such licences are to be granted:

  7. To determine the fair price to be paid in respect of new publicans', tourist-house, and wholesale licences:

  8. To grant club charters:

  9. To make recommendations to the Minister as to the expediency of amending the Licensing Acts:

  10. To conduct inquiries on such matters as may be referred to it by the Minister.

In addition, the Commission shall have such other functions as are conferred on it by this or any other Act.

The amending Act provides that no new accommodation or New Zealand wine licences are to be granted.

The total number of publicans' licences for the time being in force is not to exceed the number in force on the passing of the Act, plus (a) an additional twenty, (b) the number granted in place of accommodation licences, (c) the number granted after the passing of the Act as a result of a determination of electors of any no-licence district at a poll under section 8 of the Licensing Amendment Act 1910, and (d) the number granted pursuant to Part VI of the 1948 amendment (i.e., special polls of electors in the Ashburton, Geraldine, and King-country areas). This total number may be increased whenever the results of any periodical census or any statistics published under the Statistics Act 1955 show that the population of New Zealand has exceeded by at least fifty thousand persons the population at the time of passing the Act, or since the Commission last authorized an increase in the number of licences under this provision. The Commission may authorize such new licences on this account as it thinks fit, but not so as to exceed one licence for every complete ten thousand of the increase in population.

Wholesale licences are not to exceed in number one for every complete ten thousand of the population of New Zealand, while tourist-house licences for the time being in force are not to exceed twenty-five.

The 1948 amendment provided that the Commission shall review the distribution of the three classes of licences quoted as soon as practicable after the passing of the Act, and may do so also from time to time after this initial review, with the proviso that a review must be done at least once in each succeeding period of ten years.

Various provisions were also made in respect of procedure, surrender of licences (these provisions were extended by the 1955 amending Act), compensation, appeals, brewers' licences, etc.

New kinds of licences which may be granted by Licensing Committees in addition to those provided for in the principal Act are tourist-house licences and works canteen licences. It is of interest to note these may be granted in respect of premises situated in any proclaimed area. The licence fee for each of the two classes is £10.

The 1948 amendment also enables the Licensing Commission to grant charters to clubs subject to certain conditions, and, in addition, includes provision for the granting of temporary charters in the King-country.

The same legislation removed certain restrictions which had existed for many years with regard to the sale and supply of liquor to Maoris, by enabling Maori women to be supplied with liquor on licensed premises, and by enabling the sale and supply of liquor to Maori men for consumption off the premises.

The 1952 amendment to the principal Act validated licences granted in areas of licensing districts which were formerly parts of no-licence districts, and which became included in licensing districts by reason of changes in electoral boundaries. It also provided that the prior approval of a Magistrate is required for the sale of liquor at fairs in Licensing Trust districts. Wine-sellers' licences may be granted to licensed auctioneers, while wholesale licences are to be granted or renewed in the same manner as publicans' licences. Certain former limiting provisions were repealed, thus qualifying any woman to hold a licence. In addition to the existing provisions regarding the serving of liquor to minors, it was made an offence for a minor himself to purchase liquor or to be found in a public or private bar, subject to the same exceptions as in the principal Act, while any constable, the licensee, etc., may demand particulars of the name, age, and address of any one appearing to be a minor and offending against the section. Licensing Committees were authorized to hold special meetings to deal with applications for new licences, requirements as to accommodation and services for new and existing licences, and at quarterly or special meetings to direct any holder of a publican's, tourist house, or accommodation licence to carry out any such requirements. A time for compliance may be fixed, and extensions of this may be granted in the case of new licences.

Part I of the Licensing Amendment Act (No. 2) 1953 provided for special polls to be taken on the questions of licensing and Trust control in the King-country and in certain areas in licensing districts (including Johnsonville and Porirua areas) where, owing to past changes in electoral boundaries, it was not lawful for licences to be granted.

Part II of the amendment related to wine makers' licences and included provisions that (a) wine makers' licences are required if wine, cider, or perry is made for sale from apples, pears, or vegetables; (b) there are to be two kinds of wine makers' licences, grape wine and fruit wine licences, which cannot be both held by any one person; (c) only holders of grape wine licences can blend wines, i.e., grape wine may not be blended with fruit wines; (d) licences are subject to suitability of premises, etc.; (e) sufficient supplies of grapes are available to the applicant to produce the specified quantity before a grape wine licence can be granted.

Part III authorized the Licensing Control Commission to conduct inquiries on such matters as may be referred to it by the Minister, and gave a right of appeal to the Supreme Court against decisions of the Commission (a) on licences cancelled on grounds that they are not needed, (b) the award of compensation for cancelled or surrendered licences, (c) on an appeal against a direction of a Licensing Committee to a licensee to rebuild, alter, or repair premises when the cost would be £5,000 or more. It also provided that any local authority, or fifty or more electors, may apply to the Commission for a poll to determine whether the residents of any area desire that a publican's licence should be authorized in that area. The Commission is thus given discretion in respect of objections to a particular site for licensed premises. It may at the same time direct a poll to be held on the question of a local Trust, if a licence be granted. Should the poll be against the grant of a licence, the Commission is not to authorize one in the area unless, after regard to the size of the poll and the majority of votes, convenience of travellers, etc., it thinks that special circumstances exist and that the granting of a licence would be in the public interest. Where the Commission has authorized a licence, there is no right of objection to the Licensing Committee on the ground that premises are in the immediate vicinity of a church, hospital, school, etc.

Other sections included provisions (a) for the constitution, or alteration, of new city licensing districts for Auckland, Wellington, Christchurch, and Dunedin by Order in Council; (b) for the alteration of boundaries of any ordinary licensing district by the inclusion of any part of an adjoining district remaining after the exclusion of a no-licence district or Trust district, although power is not given to combine entire districts; (c) authorizing the Licensing Committee to redefine any licensed premises by excluding any building or part thereof that is not used or is not to be used as licensed premises, or by including any part that is so used or is to be so used; and (d) empowering the Commission to continue to grant exemptions from restrictions on dances, billiards, etc., in cases where a tourist-house licence is later replaced by a publican's licence for the same premises, if such facilities are not reasonably available in the locality.

The Licensing Amendment Act 1948 contained provisions for a referendum to be taken on the question of hours for sale of liquor in hotel bars, local restoration polls in no-licence districts, and a proposal that licences for sale of liquor be issued in the King-country. In the last two cases voters were also required to record their vote either for or against Trust Control. The referendum taken on 9 March 1949 resulted in the retention of the existing hours during which hotels are open for the sale of liquor in hotel bars—i.e., between 9 a.m. and 6 p.m.

The 1955 amendment imposed restrictions on the operation of agencies for the sale of liquor, and required that the agent be a full-time employee of the licensee. A licensee delivering liquor as a result of an order, must record the name and address of the person to whom the liquor is delivered, and the nature and quantity of the liquor.

For refusal to supply accommodation increased penalties of a fine up to £50 and suspension of licence for up to seven days were provided for in the same Act, while the penalty for being found on licensed premises after hours was increased to £10. It was also made an offence for a licensee to permit betting on licensed premises.

Matters which the Licensing Control Commission must have regard to before it cancels or accepts the surrender of licences are the convenience of the public, the requirements of the locality where licensed premises are situated, the distance from nearest premises, the manner in which the business has been conducted, the condition of the premises and the accommodation and services provided; discretionary considerations are the general distribution of licences throughout New Zealand, the convenience of the public in other localities and the requirements of other localities, and the number of new licences available for distribution.

By the end of March 1955 the Commission had completed its initial review of 1,267 licences—1,113 publicans' or accommodation, 151 wholesale, and 3 tourist-house. Of this total, rebuilding was ordered in 51 cases, and major improvements ordered in 298 instances. Applications for new licences, with authorizations shown in parentheses, during the period were as follows: publicans', 100 (61); tourist-house, 42 (24); and wholesale, 67 (21).

During the year ended 31 March 1956 the Commission reviewed in the licensing districts dealt with a total of 21 publicans', accommodation, and wholesale licences, compared with a total of 25 in the previous year. In addition, representations for new licences totalled 6. The following table shows the number of licences either in force or authorized at 31 March 1956.

Publicans' and Accommodation LicencesTourist-house LicencesWholesale Licences
Number of licences allowable under sections 27 (1) and (2), 28 (1) and (2), of the 19,8 amending Act and under the 1953 amendment1,16325213
Number of licences either in force or authorized at 1 April 19551,12820162
Number of licences cancelled or surrendered, 1955–566  
Number of new licences authorized, 1955–5622 
      Total number of licences either in force or authorized at 1 April 19561,12022162

NOTE.—Licensed premises in the Trust Areas of Masterton, Ashburton, Geraldine, and Invercargill are not included in the above figures, as such areas are outside the jurisdiction of the Commission.

From 1 June 1949 to 31 March 1956, 151 applications had been filed for the grant of club charters. These had been dealt with as follows: charters issued, 84; granted but charters withheld pending compliance with conditions, 5; adjourned sine die, 21; declined, 19; withdrawn, 7; decisions not issued, nil; and awaiting to be heard, 15. One charter has been revoked.

The Commission was also concerned with 91 appeals lodged against decisions of Licensing Committees up to 31 March 1956, these being dealt with as follows: withdrawn, 19; heard, 72; dismissed, 60; and allowed, 9.

Notices of cancellation or surrender of licences to 31 March 1956 have been given for 85 publicans', 17 accommodation, 1 wholesale; 100 of these have been heard, of which 10 have been adjourned, 8 surrenders accepted, and cancellations of 40 publicans' and 5 accommodation licences determined.

The Licensing Control Commission has prescribed the minimum general standards for new hotels, these standards being intended eventually to cover all hotels, under the following headings: (a) general—means of egress; (b) bedrooms—facilities, space, ventilation, etc.; (c) bathrooms and lavatories—number in relation to number of guests; (d) heating; and (e) bars—cleanliness.

Included in the accounts of the Licensing Fund for the year ended 31 March 1956 were receipts from fair prices for licences issued, at £49,100 and payments as compensation for licences cancelled, at £37,974. The Accumulated Fund stood at £50,968 at the end of the year.

Licensing Trusts.—A new departure in regard to the conduct of the liquor trade in New Zealand was inaugurated by the Invercargill Licensing Trust Act 1944, which established a Trust of six members to be appointed from time to time by the Governor-General. The functions of the Trust according to the Act are to provide accommodation and other facilities for the travelling public within the Invercargill Licensing District, to establish and maintain hotels and suitable places within the district for the sale or supply of refreshments, to sell and supply intoxicating liquor within the district, and to establish and maintain premises for that purpose. The net profits arising from the operations of the Trust may be expended or distributed by the Trust for the promotion, advancement, or encouragement of cultural and recreational or philanthropic purposes within the Southland Land District.

Following the result of the poll in the Masterton No-licence District in 1946, the electors were given the opportunity of recording their views as to whether they desired a form of Trust control or otherwise. The district was divided into three areas, the Akitio County, the Borough of Eketahuna and the Eketahuna County, and the southern area consisting of the Borough of Masterton, the Mauriceville County, and those portions of the counties of Masterton, Wairarapa South, and Castlepoint which are included in the district. Polling took place on 28 May 1947, and Trust control was carried in the southern area but was defeated in the other two areas, which are predominantly rural. Legislation providing for the constitution of the Masterton Licensing Trust to control the southern area was passed during the 1947 session of Parliament.

As a result of special licensing polls held on 9 March 1949, under the authority of the Licensing Amendment Act 1948, in the Ashburton and Geraldine areas, the restoration proposal was carried by the necessary three-fifths majority in each case. A majority of the valid votes cast were also in favour of Trust control, and by virtue of the Licensing Trusts Act 1949 the Ashburton Licensing Trust and the Geraldine Licensing Trust were established and Trust districts of similar title constituted.

The Licensing Trusts Act 1949 also provided for the declaration of a district to be a Trust district whenever at any local restoration poll taken in a no-licence district the electors have determined in favour of the proposal that a local Trust be established to conduct hotels and sell intoxicating liquor in that district. The 1950 amendment enabled the Licensing Control Commission to authorize or direct the taking of a preliminary poll in any locality where the local authority applies or intends to apply for a licence for a local Trust, and provided for the approval of managers by the Licensing Committee and the defining of the duties and liabilities of managers. The 1951 amendment made further provision for financing licensing Trusts, including local Trusts established to conduct particular premises for which new licences are granted in licensing districts. The Crown was empowered to make advances to, or guarantee loans raised by, licensing Trusts for the purpose of acquiring property and for the payment of preliminary expenses. The Act also enabled local authorities in a licensing Trust district to make advances or give guarantees for similar purposes, but limited in each case to one-third of the capital required; local authorities also require the consent of the Local Government Loans Board. Local Trusts were given the same borrowing powers as district licensing Trusts. The 1953 amendment authorized Trusts to make contributions for the purpose of providing superannuation or retiring allowances for their employees. The 1955 amendment contained provisions relating to the division of districts into wards for purposes of elections, to the power of a local Trust or local authority to make a fresh application for a licence where the first application is not proceeded with, and to winding-up of local Trusts in certain circumstances, etc.

LOTTERIES.—Under section 42 of the Gaming Act 1908, as amended in 1949, the Minister of Internal Affairs could grant permission (subject to such conditions as he thinks fit) for the disposing by raffle or chance of any painting, drawing, sculpture, or other work of art, or literature, or mineral specimen, or mechanical model. The Gaming Amendment Act 1949 made several important changes in the law relating to raffles. Major changes include provisions enabling real and personal property to be raffled, licences being formerly issued only for works of art and mineral specimens; authority is given to authorized members of the Police Force to issue raffle licences where an individual prize does not exceed £10 in value, and where the total value of the prizes does not exceed £25; and authorized members of the Police Force may from time to time approve organizations to conduct raffles provided the value of the prizes in any raffle does not exceed £5. By the Finance Act 1951 any such licence granted for the raffling of any real or personal property in excess of £100 value is subject to a lottery duty of 10 per cent of the nominal value of all tickets represented in the drawing of the lottery, whether such tickets have been disposed of by way of sale or otherwise. Information as to receipts from this source will be found in Section 30B—Taxation.

The Gaming Act also permits sweepstakes and art unions (as defined) under certain specified conditions.

During the year ended 31 March 1956, 2,500 licences covering small raffles with prizes ranging from £25 to £500 in cash or goods were issued to local or national organizations. Raffles in which the prizes are less than £25 in total, and with no one prize exceeding £10, are licensed and supervised by the Police. In addition, 15 licences were issued in respect of the regular £10,000 art unions. The aggregate results of these regular art unions for the past seven years have been as follows.

1949–501950–511951–521952–531953–541954–551955–56
Number of lotteries13131313131315
Gross sales£281,405268,418258,886305,856418,279404,449608,620
Commission on sales£42,20840,26338,83345,87862,74160,66791,293
Expenses£33,11333,43735,01041,22248,60849,95264,060
Prizes£65,00065,00065,00071,00091,00091,000150,000
Net proceeds£141,084129,718120,043147,756215,930202,830303,267
Lottery duty£28,13826,84125,88830,58541,82740,44560,862
Net profit£112,946102,87794,155117,171174,103162,385242,405

Allocation of funds earned from the art unions in the preceding table during 1955–56 was as follows: £90,345 to charitable and philanthropic organizations; £15,341 to various mayoral or other recognized relief of distress funds; £32,250 to the Cultural Fund; £14,818 to sporting bodies; £16,942 to children's health camps; £4,300 to the New Zealand Patriotic Fund Board for benefit of servicemen overseas; £5,565 to old folks' associations; £14,320 to youth organizations (Y.M.C.A., Boys' Brigade, etc.); £4,200 to the bands' associations; and miscellaneous grants, £24,412.

MAORI WELFARE.—The legislative basis of the Maori welfare programme is the Maori Social and Economic Advancement Act of 1945. The aim of the Act is “The social and economic advancement and the promotion and maintenance of the health and general well-being of the Maori community”. It is also designed to facilitate the full integration of the Maori race into the social and economic structure of the country. An important feature of the Act is that it does not seek to impose standards from without; rather, it calls upon the Maori people to exercise control and direction of their own communities in the essentials of good citizenship and civic responsibility.

Under the above Act areas may be declared Tribal districts or Tribal Committee areas. In such districts or areas Tribal Executives and Committees have been set up by the Maori people to promote their development. At 31 March 1956 the numbers of such districts and areas were 76 and 447 respectively. A Controller, an Assistant Controller, 6 district welfare officers, and 24 male and 21 female welfare officers, nearly all of the Maori race, have been appointed to advise and assist these bodies.

One of the major aspects of the recent development of Maori welfare is the emergence of women as an organized socializing factor. Thus as at 31 March 1956 the Maori Women's Welfare League had a total strength of 3,297 members.

The Act provides for subsidies to be paid on moneys raised by the Maori people through their Executives and Committees for various social purposes set out in the Act, mainly in the improvement of local amenities. The subsidy granted in the financial year ended 31 March 1956 amounted to £25,285. Total subsidies paid under the Act amount to £187,616.

The Minister of Maori Affairs also appoints Maori Wardens who have certain powers to ensure orderly behaviour among the Maori people within the Tribal districts to which they are appointed. By 31 March 1956 wardens' certificates were held by 310 persons, all being Maoris.

The 1951 amendment to the principal Act, while similar to earlier provisions prohibiting the supply and consumption of liquor in or near dance halls, is somewhat wider in scope and prohibits the supply and consumption of liquor where any gathering of Maoris is being held at a “marae”. Provision is made for the issue of permits by Tribal Committees authorizing the supply of liquor to Maori gatherings in certain circumstances. There are also provisions relating to applications for prohibition orders against Maoris.

TIME-SERVICE ARRANGEMENTS.—The following article on the New Zealand time-service arrangements was prepared by Mr. R. C. Hayes, Superintendent of the Seismological Observatory.

One uniform time is kept throughout New Zealand. The New Zealand Gazette of 31 October 1868 contained a Government announcement to the effect that the time corresponding to longitude 172° 30' east of Greenwich (exactly 11 1/2 hours in advance of Greenwich time) was to be adopted as the New Zealand Mean Time throughout the colony, and that from 2 November (of the same year) the public offices of the General Government were to be opened and closed in accordance therewith.

This New Zealand Mean Time, 11h. 30m. in advance of Greenwich Mean Time (G.M.T.), was observed continuously up to 1927, when on 6 November clocks were advanced 1 hour until 4 March 1928. The next period of Summer Time was from 14 October 1928 to 17 March 1929, but in this and in subsequent periods clocks were advanced only 30 minutes (to 12h. ahead of G.M.T.). The Summer Time Act of 1929 provided for clocks to be advanced 30 minutes from the second Sunday in October of any year to the third Sunday in March of the following year. By the Summer Time Amendment Act 1933 the period of Summer Time was extended from the first Sunday in September to the last Sunday in April. This amendment commenced in 1934, when the period of Summer Time was extended until 29 April.

The Daylight Saving Emergency Regulations of 1941 provided for the continuance of Summer Time throughout that year; and its continued observance during subsequent war years was provided for by regulations made annually.

By the Standard Time Act of 1945 the time of the meridian 180° east of Greenwich (12h. in advance of G.M.T.) was adopted as the Standard Time for New Zealand. Thus, what was formerly known as “Summer Time” became “New Zealand Standard Time” as from 1 January 1946. The times stated in this article are New Zealand Standard Time, unless otherwise stated.

The time throughout New Zealand is controlled by the Seismological Observatory, Wellington. The Observatory signal clock is kept as correct as possible by means of astronomical observations, and by comparison with radio time signals from observatories in other parts of the world.

The Observatory provides the following time-service:

(1) RADIO TIME SIGNALS TRANSMITTED THROUGH STATION ZLW ONA WAVELENGTHOF 500 KC/s (600 METRES) I.C.W.

These signals are transmitted between 10h. 55m. and 11h. 00m. a.m. daily, and are in accordance with the modified ONOGO system. The procedure is as follows:

At 10h. 55m. 30s. the “Attention” call (__ . __ . __), followed by the Observatory call sign ZMO (__ __ . __ __ __ __ __).

From 10h. 56m. 05s. to 10h. 56m. 50s. the letter O (__ __ __), repeated every ten seconds, except that the third series from 25s. to 30s. consists of a single dash prolonged for five seconds.

From 10h. 57m. 00s. to 10h. 57m. 49s. the letter X (__ . . __), repeated every five seconds.

From 10h. 57m. 55s. to 10h. 58m. 00s., First Time Signal, consisting of six dots at intervals of one second.

From 10h. 58m. 08s. to 10h. 58m. 50s. the letter N (__ .), repeated every ten seconds.

From 10h. 58m. 55s. to 10h. 59m. 00s., Second Time Signal, consisting of six dots at intervals of one second.

From 10h. 59m. 06s. to 10h. 59m. 50s. the letter G (__ __ .), repeated every ten seconds.

From 10h. 59m. 55s. to 11h. 00m. 00s., Third Time Signal, consisting of six dots at intervals of one second.

The series of six dots which constitute the actual time signals are transmitted directly from the Observatory signal clock, which is seldom more than one-tenth of a second in error. The remaining signals are for tuning and identification purposes only, and should not be used as precise time signals. Corrections to the time signals can be obtained on application to the Seismological Observatory.

(2) RADIO TIME SIGNALS TRANSMITTEDBYTHE NEW ZEALAND BROADCASTING SERVICE

Time-signals from the Observatory are transmitted as follows:

New Zealand Standard Time.
5.00 a.m.2YA only (daily except Sundays).
6.00 a.m.All YA and YZ stations (daily except Sundays).
7.00 a.m.All YA and YZ stations (daily).
8.00 a.m.All YA and YZ stations (daily).
9.00 a.m.All YA and YZ stations (daily).
10.58 a.m.2YA only (daily).
10.59 a.m.
11.00 a.m.
12.30 p.m.All YA and YZ stations (daily).
4.00 p.m.2YA only (daily).
6.30 p.m.All YA and YZ stations (daily).
7.00 p.m.All YA and YZ stations (daily).
9.00 p.m.All YA and YZ stations (daily except Sundays).
10.00 p.m.2YA only (daily).
11.00 p.m.All YA and YZ stations (daily).

Each time signal consists of six dots, separated by intervals of one second, the last dot being the exact minute.

(3) TIME SIGNALSBY TELEGRAPH

The Observatory sends time signals by telegraph to the General Post Office and the Railways Department, Wellington, at 9.00 a.m. daily. This signal is transmitted to all telegraph offices in New Zealand and to all railway stations in the North Island.

(4) PUBLIC CLOCKS

The Government Buildings clock (Wellington) is checked at 9.00 a.m. daily by means of a special circuit between the clock and the Observatory. The error of this clock is usually less than 15 seconds.

An electric synchronous clock, installed at the observatory, is checked twice daily. Observations show that, under normal conditions of power supply, the variation of the electric clocks amounts to a few seconds only.

TOURIST ATTRACTIONS.—Reference to pages 1143–1152 of the 1955 Year-Book will provide brief description of the min tourist attractions in New Zealand, together with a series of photographs illustrating some of them. A second series of photographs only appeared in the 1956 volume.

MINERAL WATERS AND SPAS.—For information concerning the mineral waters and spas of New Zealand, reference should be made to the 1940 and earlier editions of the Year-Book, which contain a short description of the Rotorua and Te Aroha spas, together with analyses of the more important springs at the latter, while in the 1913 issue of the Year-Book will be found detailed analyses of the various mineral waters throughout New Zealand.

LIST OF LEGISLATION, 1956.—During the parliamentary session of 1956, which commenced on 4 April, was adjourned from 10 May to 7 August, and which ended on 26 October, the General Assembly passed 108 public Acts, 12 local Acts, and 3 private Acts. The following is a list of public Acts passed during the session, suffixed in each case as appropriate by “N.A.”—new Act, “A.A.”—amending Act, “C.A.”—consolidation Act, “C.A.A.”—consolidating and amending Act, or “V.C.A.”—validating and confirming Act.

  • Agricultural Emergency Regulations Confirmation. (V.C.A.)

  • Amusement Tax Amendment. (A.A.)

  • Apiaries Amendment. (A.A.)

  • Appropriation. (N.A.)

  • Armed Forces Canteens Amendment. (A.A.)

  • Auckland Harbour Bridge Amendment. (A.A.)

  • Bankruptcy Amendment. (A.A.)

  • Building Emergency Regulations Amendment. (A.A.)

  • Canterbury University College Amendment. (A.A.)

  • Christchurch-Lyttelton Road Tunnel. (N.A.)

  • Cinematograph Films Amendment. (A.A.)

  • Contracts Enforcement. (N.A.)

  • Control of Prices Amendment. (A.A.)

  • Cook Islands Amendment. (A.A.)

  • Co-operative Companies. (C.A.A.)

  • Co-operative Dairy Companies Amendment. (A.A.)

  • Coroners Amendment, (A.A.)

  • Counties. (C.A.A.)

  • Counties Amendment. (A.A.)

  • Dairy Products Marketing Commission Amendment. (A.A.)

  • Deaths by Accidents Compensation Amendment. (A.A.)

  • Education Lands Amendment. (A.A.)

  • Electoral. (C.A.A.)

  • Electricians Amendment. (A.A.)

  • Electricity Amendment. (A.A.)

  • Electricity and Gas Co-ordination. (N.A.)

  • Emergency Regulations Amendment. (A.A.)

  • Factories Amendment. (A.A.)

  • Finance. (N.A.)

  • Fire Service Amendment. (A.A.)

  • Fisheries Amendment. (A.A.)

  • Food and Drugs Amendment. (A.A.)

  • Gisborne High School Amendment. (A.A.)

  • Government Railways Amendment. (A.A.)

  • Harbours Amendment. (A.A.)

  • Health. (C.A.A.)

  • Hospitals Amendment. (A.A.)

  • Housing Amendment. (A.A.)

  • Imprest Supply. (N.A.)

  • Imprest Supply (No. 2). (N.A.)

  • Imprest Supply (No. 3). (N.A.)

  • Imprest Supply (No. 4). (N.A.)

  • Imprest Supply (No. 5). (N.A.)

  • Industrial Conciliation and Arbitration Amendment. (A.A.)

  • Industries and Commerce. (N.A.)

  • Judicature Amendment. (A.A.)

  • Land Agents Amendment. (A.A.)

  • Land Amendment. (A.A.)

  • Land and Income Tax Amendment. (A.A.)

  • Land and Income Tax (Annual). (N.A.)

  • Land Drainage Amendment. (A.A.)

  • Land Valuation Court Amendment. (A.A.)

  • Licensing Amendment. (A.A.)

  • Linen Flax Corporation Amendment. (A.A.)

  • Local Authorities Loans. (C.A.A.)

  • Local Elections and Polls Amendment (A.A.)

  • Local Legislation. (N.A.)

  • Machinery Amendment. (A.A.)

  • Magistrates' Courts Amendment. (A.A.)

  • Maori Purposes. (A.A.)

  • Meat Export Control Amendment. (A.A.)

  • Medical Research Council Amendment. (A.A.)

  • Military Training Amendment. (A.A.)

  • Milk Amendment. (A.A.)

  • Municipal Association Amendment. (A.A.)

  • Municipal Corporations Amendment. (A.A.)

  • National Art Gallery and Dominion Museum Amendment. (A.A.)

  • National Parks Amendment. (A.A.)

  • National Provident Fund Amendment. (A.A.)

  • National Roads Amendment. (A.A.)

  • National Savings Amendment. (A.A.)

  • New Zealand Counties Association Amendment. (A.A.)

  • New Zealand Loans Amendment. (A.A.)

  • New Zealand National Airways Amendment. (A.A.)

  • New Zealand University Amendment. (A.A.)

  • Noxious Animals. (N.A.)

  • Noxious Weeds Amendment. (A.A.)

  • Patriotic and Canteen Funds Amendment. (A.A.)

  • Police Force Amendment. (A.A.)

  • Police Offences Amendment. (A.A.)

  • Post and Telegraph Amendment. (A.A.)

  • Primary Products Marketing Regulations Confirmation. (V.C.A.)

  • Public Revenues Amendment. (A.A.)

  • Public Trust Office Amendment. (A.A.)

  • Public Works Amendment. (A.A.)

  • Rabbits Amendment. (A.A.)

  • Rangitaiki Land Drainage. (N.A.)

  • Republic of Pakistan. (N.A.)

  • Reserves and Domains Amendment. (A.A.)

  • Reserves and Other Lands Disposal. (N.A.)

  • River Boards Amendment. (A.A.)

  • Rural Housing Amendment. (A.A.)

  • Samoa Amendment. (A.A.)

  • Samoa Amendment (No. 2). (A.A.)

  • Shipping and Seamen Amendment. (A.A.)

  • Social Security (Reciprocity with the United Kingdom). (N.A.)

  • Social Security Amendment. (A.A.)

  • Stamp Duties Amendment. (A.A.)

  • Standard Time Amendment. (A.A.)

  • State Supply of Electrical Energy Amendment. (A.A.)

  • Stock Amendment. (A.A.)

  • Superannuation. (C.A.A.)

  • Trustee. (C.A.A.)

  • Trustee Savings Banks Amendment. (A.A.)

  • Veterinary Surgeons. (C.A.A.)

  • Waikato Valley Authority. (N.A.)

  • Wildlife Amendment. (A.A.)

  • Workers' Compensation. (C.A.A.)

Chapter 45. SECTION 45—OFFICIAL

GOVERNOR-GENERAL OF NEW ZEALAND

1 AUGUST 1957

Governor-General designate: The Viscount Cobham.

Official Secretary—D. E. Fouhy, Esq., C.V.O., C.B.E.

Staff: To be appointed.

(His Excellency will assume office during the first week of September 1957.)

For details of previous vice-regal representatives reference should be made to various issues of the Year-Book, while a complete list of the earlier vice-regal representatives will be found in the 1931 issue (pp. 59–60).

SUCCESSIVE MINISTRIES AND PREMIERS

SINCE THE ESTABLISHMENT OF RESPONSIBLE GOVERNMENT IN NEW ZEALAND IN 1856

Name of MinistryName of PremierAssumed OfficeRetired
1. Bell-SewellHenry Sewell7 May 185620 May 1856
2. FoxWilliam Fox20 May 18562 June 1856
3. StaffordEdward William Stafford2 June 185612 July 1861
4. FoxWilliam Fox12 July 18616 Aug. 1862
5. DomettAlfred Domett6 Aug. 186230 Oct. 1863
6. Whitaker-FoxFrederick Whitaker30 Oct. 186324 Nov. 1864
7. WeldFrederick Aloysius Weld24 Nov. 186416 Oct. 1865
8. StaffordEdward William Stafford16 Oct. 186528 June 1869
9. FoxWilliam Fox28 June 186910 Sept. 1872
10. StaffordEdward William Stafford10 Sept. 187211 Oct. 1872
11. WaterhouseGeorge Marsden Waterhouse11 Oct. 18723 Mar. 1873
12. FoxWilliam Fox3 Mar. 18738 April 1873
13. VogelJulius Vogel, C.M.G.8 April 18736 July 1875
14. PollenDaniel Pollen, M.L.C.6 July 187515 Feb. 1876
15. VogelSir Julius Vogel, K.C.M.G.15 Feb. 18761 Sept. 1876
16. AtkinsonHarry Albert Atkinson1 Sept. 187613 Sept. 1876
17. Atkinson (reconstituted)Harry Albert Atkinson13 Sept. 187613 Oct. 1877
18. GreySir George Grey, K.C.B.15 Oct. 18778 Oct. 1879
19. HallJohn Hall8 Oct. 187921 April 1882
20. WhitakerFrederick Whitaker, M.L.C.21 April 188225 Sept. 1883
21. AtkinsonHarry Albert Atkinson25 Sept. 188316 Aug. 1884
22. Stout-VogelRobert Stout16 Aug. 188428 Aug. 1884
23. AtkinsonHarry Albert Atkinson28 Aug. 18843 Sept. 1884
24. Stout-VogelSir Robert Stout, K.C.M.G.3 Sept. 18848 Oct. 1887
25. AtkinsonSir Harry Albert Atkinson, K.C.M.G.8 Oct. 188724 Jan. 1891
26. BallanceJohn Ballance24 Jan. 18911 May 1893
27. SeddonRt. Hon. Richard John Seddon1 May 189321 June 1906
28. Hall-JonesWilliam Hall-Jones21 June 19066 Aug. 1906
29. WardRt. Hon. Sir Joseph George Ward, Bart., K.C.M.G.6 Aug. 190628 Mar. 1912
30. MackenzieThomas Mackenzie28 Mar. 191210 July 1912
31. MasseyRt. Hon. William Ferguson Massey10 July 191212 Aug. 1915
32. NationalRt. Hon. William Ferguson Massey12 Aug. 191525 Aug. 1919
33. MasseyRt. Hon. William Ferguson Massey25 Aug. 191914 May 1925
34. BellHon. Sir Francis Henry Dillon Bell, G.C.M.G., K.C.14 May 192530 May 1925
35. CoatesRt. Hon. Joseph Gordon Coates, M.C.30 May 192510 Dec. 1928
36. WardRt. Hon. Sir Joseph George Ward, Bart., G.C.M.G.10 Dec. 192828 May 1930
37. ForbesRt. Hon. George William Forbes28 May 193022 Sept. 1931
38. CoalitionRt. Hon. George William Forbes22 Sept. 19316 Dec. 1935
39. LabourRt. Hon. Michael Joseph Savage6 Dec. 19351 April 1940
40. LabourHon. Peter Fraser1 April 194030 April 1940
41. LabourRt. Hon. Peter Fraser, C.H.30 April 194013 Dec. 1949
42. HollandRt. Hon. Sidney George Holland, C.H.13 Dec. 1949 

EXECUTIVE COUNCIL, MARCH 1957

His Excellency the GOVERNOR-GENERAL

  • Rt. Hon. S. G. HOLLAND, C.H., Prime Minister, and Minister in Charge of Legislative Department and Audit Office.

  • Rt. Hon. K. J. HOLYOAKE, Deputy Prime Minister, and Minister of Agriculture.

  • Hon. R. M. ALGIE, Minister of Education, and Minister in Charge of Broadcasting, and of Department of Scientific and Industrial Research.

  • Hon. E. B. CORBETT, Minister of Lands, Minister of Maori Affairs.

  • Hon. W. S. GOOSMAN, Minister of Works, Minister of Transport, and Minister in Charge of State Hydro-electric Department.

  • Hon. T. L. MACDONALD, Minister of Defence, Minister of External Affairs, Minister of Island Territories, and Minister in Charge of War Pensions.

  • Hon. J. T. WATTS, Minister of Finance, and Minister in Charge of Department of Statistics.

  • Hon. J. R. MARSHALL, Attorney-General, Minister of Justice, and Minister in Charge of Electoral Department and Publicity and Information.

  • Hon. Dame Hilda Ross, D.B.E., Minister for the Welfare of Women and Children, and Minister in Charge of Child Welfare Department.

  • Hon. S. W. SMITH, Minister of Internal Affairs, Minister of Forests, and Minister in Charge of Valuation Department.

  • Hon. D. J. EYRE, Minister of Police, Minister of Housing, Minister in Charge of State Advances Corporation, Minister in Charge of Tourist and Health Resorts, National Provident Fund Department, Government Superannuation Fund, Minister in Charge of State Fire Insurance Office, Government Life Insurance Office, and Earthquake and War Damage Commission.

  • Hon. E. H. HALSTEAD, Minister Assistant to the Prime Minister, Minister of Industries and Commerce, Minister of Customs.

  • Hon. J. R. HANAN, Minister of Health, Minister of Immigration, and Minister in Charge of Friendly Societies Department, and Public Trust Office.

  • Hon. J. K. MC ALPINE, Minister of Labour, Minister of Railways, Minister of Mines.

  • Hon. T. P. SHAND, Postmaster-General and Minister of Telegraphs, and Minister in Charge of Rehabilitation and Civil Aviation.

  • Hon. R. G. GERARD, Minister of Social Security, Minister of Marine, and Minister in Charge of Government Printing and Stationery Department.

Clerk of the Executive Council—T. J. Sherrard, O.B.E., M.S.M., J.P.

HOLLAND MINISTRY, JUNE 1957

(Assumed Office, 13 December 1949)

Name and OfficeFromTo

* Deceased.

Rt. Hon. Sidney George Holland, C.H.—
    Prime Minister13 December 1949 
    Minister of Finance13 December 194926 November 1954
Rt. Hon. Keith Jacka Holyoake—
    Minister of Agriculture13 December 1949 
    Minister of Marketing13 December 194930 April 1953
Hon. Sir William Sullivan—
    Minister of Labour13 December 194913 February 1957
    Minister of Employment13 December 194926 November 1954
    Minister of Mines13 December 194913 February 1957
    Minister of Immigration13 December 194926 November 1954
    Minister of Housing8 September 195313 February 1957
Hon. Sir Clifton Webb, K.C.M.G., Q.C.—
    Attorney-General13 December 194926 November 1954
    Minister of Justice13 December 194926 November 1954
    Minister of External Affairs19 September 195126 November 1954
    Minister of Island Territories19 September 195126 November 1954
Hon. Ronald Macmillan Algie—
    Minister of Education13 December 1949 
Hon. Sir William Alexander Bodkin, K.C.V.O.—
    Minister of Internal Affairs13 December 194926 November 1954
    Minister of Social Security19 December 195026 November 1954
Hon. Charles Moore Bowden—
    Minister of Customs13 December 194926 November 1954
    Minister of Industries and Commerce13 December 194919 December 1950
    Minister of Stamp Duties13 December 19491 November 1952
    Minister of Supply13 December 194919 December 1950
Hon. Sir Walter James Broadfoot, K.B.E.—
    Postmaster-General and Minister of Telegraphs13 December 194926 November 1954
Hon. Ernest Bowyer Corbett—
    Minister of Lands13 December 1949 
    Minister of Forests13 December 194926 November 1954
    Minister of Maori Affairs13 December 1949 
    Hon. Sir Frederick Widdowson Doidge, K.C.M.G.*
    Minister of External Affairs13 December 194931 August 1951
    Minister of Island Territories13 December 194931 August 1951
Hon. William Stanley Goosman—
    Minister of Works13 December 1949 
    Minister of Transport13 December 1949 
    Minister of Railways13 December 194926 November 1954
    Minister of Marine13 December 194926 November 1954
Hon. Thomas Lachlan Macdonald—
    Minister of Defence13 December 1949 
    Minister of Rehabilitation13 December 194926 November 1954
    Minister of External Affairs26 November 1954 
    Minister of Island Territories26 November 1954 
Hon. Jack Thomas Watts—
    Minister of Social Security13 December 194919 December 1950
    Minister of Health13 December 194919 September 1951
    Minister of Industries and Commerce19 December 195026 November 1954
    Minister of Supply19 December 195026 November 1954
    Minister of Finance26 November 1954 
Hon. John Ross Marshall—
    Minister of Health19 September 195126 November 1954
    Attorney-General26 November 1954 
    Minister of Justice26 November 1954 
Hon. Sidney Walter Smith—
    Minister of Internal Affairs26 November 1954 
    Minister of Forests26 November 1954 
Hon. Dean Jack Eyre—
    Minister of Industries and Commerce26 November 195420 March 1956
    Minister of Customs26 November 195420 March 1956
    Minister of Social Security20 March 195613 February 1957
    Minister of Housing13 February 1957 
Hon. Eric Henry Halstead—
    Minister of Social Security26 November 195420 March 1956
    Minister of Industries and Commerce20 March 1956 
    Minister of Customs20 March 1956 
Hon. Josiah Ralph Hanan—
    Minister of Health26 November 1954 
    Minister of Immigration26 November 1954 
Hon. John Kenneth McAlpine—
    Minister of Railways26 November 1954 
    Minister of Marine26 November 195413 February 1957
    Minister of Labour13 February 1957 
    Minister of Mines13 February 1957 
Hon. Thomas Philip Shand—
    Postmaster-General and Minister of Telegraphs26 November 1954 
Hon. Richard Geoffrey Gerard—
    Minister of Social Security13 February 1957 
    Minister of Marine13 February 1957 

HOUSE OF REPRESENTATIVES

ROLL OF MEMBERS OF THE HOUSE OF REPRESENTATIVES, JUNE 1957

Speaker—Hon. Sir MATTHEW ORAM, M.B.E. Chairman of Committees—CYRIL GEOFFREY EDMUND HARKER. Clerk of the House—H. N. DOLLIMORE, LL.B.

NameElectoral District

* Government Member.

† Elected, 6 April 1957, following the resignation of the Hon. W. Sullivan.

‡ Elected 27 October 1956, following on the death of the Hon. A. McLagan.

For European Electorates
Aderman, E. P.*N. Plymouth.
Algie, Hon. R. M.*Remuera.
Allen, P. B.*Bay of Plenty.
Anderton, W. T.Auckland Central.
Barnes, J. G., M.B.E.*St. Kilda.
Boord, R.Rotorua.
Carr, Rev. C. L.Timaru.
Connelly, M. A.Riccarton.
Connolly, P. G., D.S.C., V.R.D.Dunedin Central.
Cooksley, B. V., M.M.*Wairarapa.
Corbett, Hon. E. B.*Egmont.
Cotterill, J. B. F.Wanganui.
Davey, A. J.*Waimate.
Deas, J. M.Otahuhu.
Edwards, J. G.Napier.
Eyre, Hon. D. J.*North Shore.
Fox, W. A.Miramar.
Freer, W. W.Mount Albert.
George, J. H.*Central Otago.
Gerard, Hon. R. G.*Ashburton.
Gillespie, W. H.*Hurunui.
Goosman, Hon. W. S.*Waipa.
Gotz, F. L. A.*Manukau.
Hackett, F.Grey Lynn.
Halstead, Hon. E. H.*Tamaki.
Hanan, Hon. J. R.*Invercargill.
Harker, C. G. E.*Hawke's Bay.
Hayman, T. L.*Oamaru.
Herron, G. R.*Awarua.
Holland, Right Hon. S. G., C.H.*Fendalton.
Holloway, P. N.Heretaunga.
Holyoake, Right Hon. K. J.*Pahiatua.
Howard, Miss M. B.Sydenham.
Hudson, W. A.Mornington.
Jack, R. E.*Patea.
Johnstone, H.*Raglan.
Keating, E. J.Hastings.
Keeling, R. A.Gisborne.
Kent, J. B.Westland.
King, N. J.Waitemata.
Kinsella, A. E.*Hauraki.
Kitts, F. J.Wellington Central.
Lake, H. R.*Lyttelton.
McAlpine, Hon. J. K.*Selwyn.
Macdonald, R.Ponsonby.
Macdonald, Hon. T. .*Wallace.
Macfarlane, R. M., C.M.G.Christchurch Central.
McKay, D. N.*Marsden.
McMillan, Mrs. E. E.North Dunedin.
Maher, J. J.*Otaki.
Marshall, Hon. J. R.*Karori.
Mason, Hon. H. G. R., Q.C.Waitakere.
Massey, J. N.*Franklin.
Mathison, J.Avon.
May, H. L. J.Onslow.
Moohan, M.Petone.
Murray, T. T.*Stratford.
Nash, Right Hon. W.Hutt.
Neale, E. R., O.B.E.*Nelson.
Nordmeyer, Hon. A. H.Island Bay.
Oram, Hon. Sir Matthew, M.B.E.*Manawatu.
Rae, D. M.*Eden.
Rae, J.*Roskill.
Ross, Hon. Dame Hilda*Hamilton.
Roy, J. A. McL., M.C.*Clutha.
Scott, W. J.*Rodney.
Seath, D. C.*Waitomo.
Shand, Hon. T. P.*Marlborough.
Shelton, N. L.*Rangitikei.
Sim, G. F.*Waikato.
Skinner, Hon. C. F., M.C.Buller.
Skoglund, P. O. S.Palmerston N.
Smith, Hon. S. W.*Hobson.
Walsh, G. A.*Tauranga.
Watt, H.Onehunga.
Watts, Hon. J. T.*St. Albans.
For Maori Electorates
Omana, T.Eastern Maori.
Paikea, T. P.Northern Maori.
Ratana, Mrs I. M.Western Maori.
Tirikatene, Hon. E. T.Southern Maori.

PARLIAMENTARY SESSIONS

[For earlier Parliaments and sessions refer to pp. 59–60 of the 1930 and p. 986 of the 1940 editions of the Year-Book. On some occasions there have been long adjournments during sessions, without Parliament being prorogued.]

ParliamentDates of Opening of SessionsDates of ProrogationDates of Dissolution
Twenty-fourth23 February 193211 May 19321 Nov. 1935
22 September 193221 March 1933
21 September 193322 December 1933
28 June 193416 April 1935
29 August 193529 October 1935
Twenty-fifth25 March 193631 October 193620 Sept. 1938
9 September 193716 March 1938
28 June 193819 September 1938
Twenty-sixth27 June 19391 February 194030 Aug. 1943
30 May 194016 December 1940
12 March 194129 October 1941
11 December 194114 December 1942
23 February 194327 August 1943
Twenty-seventh22 February 194415 December 19444 Nov. 1946
27 June 19457 December 1945
26 June 194612 October 1946
Twenty-eighth24 June 19471 December 194723 Nov. 1949
22 June 19488 December 1948
28 June 194926 October 1949
Twenty-ninth27 June 19506 December 195027 July 1951
26 June 195118 July 1951
Thirtieth25 September 195112 December 19515 Oct. 1954
25 June 195230 October 1952
8 April 195324 December 1953
12 January 195414 January 1954
22 June 19544 October 1954
Thirty-first22 March 19552 November 1955 
4 April 195626 October 1956
11 June 1957 

JUDICIARY

Judges of the Supreme Court and Court of Appeal.—Chief Justice: Right Hon. Sir Harold Eric Barrowclough, K.C.M.G., C.B., D.S.O., M.C., E.D. Puisne Judges: Hon. Sir George Finlay, K.B.; Hon. K. M. Gresson; Hon. Sir Joseph Stanton; Hon. J. D. Hutchison; Hon. F. B. Adams; Hon. A. K. North; Hon. A. K. Turner; Hon. G. I. McGregor; Hon. W. P. Shorland; Hon. T. E. Henry; Hon. T. A. Gresson; Hon. T. P. McCarthy.

Judges of the Court of Arbitration.—Hon. Sir Arthur Tyndall, K.B., C.M.G.; Hon. W. F. Stilwell.

Judge of Compensation Court.—Hon. D. J. Dalglish.

Judge of Land Valuation Court.—Hon. K. G. Archer.

HONOURS

Since the preceding issue of the Year-Book the following honours have been conferred by Her Majesty the Queen for services rendered in connection with New Zealand:

[(a) Signifies conferred in the Honours List of June 1956; (b) in January 1957.]

CIVIL DIVISION

  • Knight Commander of the Most Excellent Order of the British Empire (K.B.E.)

    • Bernard Carl Ashwin, C.M.G. (a).

  • Knight Bachelor (K.B.)

    • Robert Lachlan Macalister (a); The Honourable Joseph Stanton (b); Leonard Morton Wright (b).

  • Companion of the Most Distinguished Order of Saint Michael and Saint George (C.M.G.)

    • C. E. Beeby (a); H. E. Evans, Q.C. (b); A. D. McIntosh (b); E. G. Sayers (a).

  • Commander of the Most Excellent Order of the British Empire (C.B.E.)

    • J. Andrew (b); Hon. W. E. Barnard (b); A. F. Downer (a); Dr J. P. S. Jamieson (a) Hon. Makea Nui Teremoana Ariki, M.L.C. (a); H. V. Searle (b); Hon. Tupua Tamasese (b); Hon. Malietoa Tanumafili (b); Professor Emeritus A. Wall (a).

  • Imperial Service Order (I.S.O.)

    • F. B. Dwyer (a); G. E. F. Wood (a).

  • Officer of the Most Excellent Order of the British Empire (O.B.E.)

    • F. N. Ambler (b); E. C. Bathurst (a); Miss E. S. Brown (b); Miss W. Delugar (a); D. R. A. Eden (a); J. Gilkison (b); W. Grieve (a); A. V. Hartley (a); T. D. B. Hay (b); Rev. Canon P. M. Kohere (b); W. C. Mackay, M.C., (b); L. Maclean (b); Dr A. J. Orchard (a); B. O. Peterson (a); Rev. T. A. Pybus (b); H. T. Speight (a); C. G. Trotter (a); H. H. Wauchop, Sen. (b); D. F. S. Wunsch (b).

  • Member of the Most Excellent Order of the British Empire (M.B.E.)

    • H. I. Austad (a); Miss V. M. Barron (b); Miss M. E. Baxter (a); W. Bell (b); H. R. Billing (a); R. Bruce (b); Mrs C. L. Burrell (a); A. H. Collins (a); L. J. Collins (b); R. J. G. Collins (b); Mrs R. Dennan (b); Mrs V. Donaldson (a); Miss A. Dundon (b); H. H. Fraser (b); S. Freeman (b); Mrs N. Gibbons (b); Mrs C. Goodsir (b); P. Graham (a); S. J. Harbutt (a); Miss V. A. Hayward (a); W. C. Kennedy (b); R. T. Kinaston (a); C. G. Macauley (a); L. A. McIntosh (b); Miss M. E. Magill (a); Sister Mary St. Athanasius (b); J. Meltzer (b); Miss M. Reidy (a); W. H. Sandford (b); R. J. Smith (a); W. T. Strand (b); A. W. Taff (a); J. F. Thompson (a); C. M. Williams (a).

  • Honorary Member of the Most Excellent Order of the British Empire

    • H. C. Tennent (b).

  • British Empire Medal (B.E.M.)

    • Constable E. Buckley (b); Constable T. J. Cotter (a); Station Officer T. R. Heighway (a); Constable W. G. Wood (b).

  • Fire Service Medal for Distinguished Service

    • Chief Fire Officer J. W. Kane (a); Chief Fire Officer F. C. Laidlaw (b); Chief Officer A. W. Taylor (a); Third Officer H. L. Warner (b).

  • Commendation for Valuable Service in the Air

    • M. E. Daniell (a); P. L. Legge (a).

MILITARY DIVISION

  • Companion of the Most Honourable Order of the Bath (C.B.)

    • Rear Admiral John Edwin Home McBeath, D.S.O., D.S.C. (b).

  • Commander of the Most Excellent Order of the British Empire (C.B.E.)

    • Captain J. G. N. Hilliard, D.S.C., V.R.D. (a); Air Commodoe I. G. Morrison, O.B.E. (b).

  • Officer of the Most Excellent Order of the British Empire (O.B.E.)

    • Wing Commander W. D. Abernethy (a); Lieutenant-Colonel S. F. Catchpole M.C., E.D. (b); Squadron Leader M. B. Furlong (b); Lieutenant-Colonel P. W. Robertshaw, M.C., E.D. (a); Acting Captain B. E. Turner, D.S.C. (b); Lieutenant-Colonel H. G. Wooller (a).

  • Member of the Most Excellent Order of the British Empire (M.B.E.)

    • Warrant Officer (Class II) L. E. P. Atkin (b); Captain F. R. Bartley (a); First Officer L. H. Corbin (a); Senior Commissioned Stores Officer J. H. Craig (b); Major R. W. Gurr (a); Flight Lieutenant C. F. Laloli, D.F.C. (b); Flight Lieutenant P. H. Lumley (a); Warrant Officer (Class II) N. McLennan (b); Warrant Officer J. Niven (a); Flight Lieutenant C. E. B. Papps, D.F.C. (b); Major R. B. Reed, E.D. (a); Major J. W. Rolleston (a); Major D. S. Ross (b); Major R. J. H. Webb (b).

  • Air Force Cross (A.F.C.)

    • Wing Commander D. F. St. George, D.F.C. (b); Squadron Leader W. M. Golden (b); Flying Officer I. A. Hutchins (a).

  • British Empire Medal (B.E.M.)

    • Staff Sergeant D. K. Baxter (a); Chief Engineroom Artificer A. M. R. Bennett (b); Sergeant W. A. Biber (a); Flight Sergeant K. J. Clark (b); Chief Petty Officer Writer W. D Dinmore (a); Chief Shipwright J. P. Dobbyn (b); Sergeant E. F. Fraser (a); Chief Mechanician (E) E. B. Gascoigne (a); Chief Electrician R. B. Harvey (a); Chief Petty Officer F. G. Heath (b); Ordnance Artificer First Class C. Hepburn (a); Stores Chief Petty Officer R. A. Jefferies (a); Sergeant W. H. O'Byrne (b); Acting Chief Petty Officer D. E. Tuck (b); Sergeant R. A. Watson (b).

  • Comendation for Valuable Services in the Air

    • Flight-Lieutenant H. H. Torgersen (a).

GOVERNMENT DEPARTMENTS

LIST OF DEPARTMENTS OF THE NEW ZEALAND GOVERNMENT, WITH TITLES AND NAMES OF PERMANENT HEADS, APRIL 1957

DepartmentPermanent Head
TitleName
AgricultureDirector-GeneralE. J. Fawcett, C.B.E., M.C., M.A. (Cantab.).
AirChief of Air Staff and First Air Force Member of the Air BoardAir Vice-Marshal C. E. Kay, C.B.E., D.F.C., F.R.Met. S.
Air SecretaryB. R. Rae, M.B.E., B.Com.
Civil AviationDirectorAir Vice-Marshal Sir A. De. T. Nevill, K.B.E., C.B., M.Sc., F.R.Ae.S.
MeteorologicalDirectorM. A. F. Barnett, O.B.E., M.Sc., Ph.D., F.Inst.P., F.R.S.N.Z.
ArmyChief of the General Staff and First Military Member of the Army BoardMajor-General C. E. Weir, C.B., C.B.E., D.S.O., and Bar.
AuditController and Auditor-GeneralC. R. J. Atkin, A.R.A.N.Z.
BroadcastingDirectorW. Yates, C.B.E., A.R.A.N.Z.
Crown LawSolicitor-GeneralH. R. C. Wild, LL.M.
CustomsComptrollerJ. P. D. Johnsen, Accts. Prof.
EducationDirectorC. E. Beeby, C.M.G., M.A., Ph.D.
External AffairsSecretaryA. D. M. McIntosh, C.M.G., M.A.
Government Life InsuranceCommissionerW. K. Watson, A.R.A.N.Z.
HealthDirector-GeneralJ. Cairney, M.D., Ch.B., F.R.A.C.S D.Sc.
Mental Hygiene DivisionDirectorR. G. T. Lewis, M.B., Ch.B. (Vacant).
Industries and CommerceSecretary 
Inland RevenueCommissionerF. R. Macken, LL.M.
Chief Deputy CommissionerJ. F. Boyd, Accts. Prof.
Deputy Commissioner (Taxes Division)J. E. Curran, A.R.A.N.Z.
Deputy Commissioner (Duties Division)D. S. Evans, Law Prof.
Internal AffairsSecretary and Clerk of WritsA. G. Harper, C.V.O., C.B.E.
Dominion MuseumDirectorR. A. Falla, D.Sc., M.A.
National Art GalleryDirectorS. B. Maclennan, A.R.C.A.
RehabilitationDeputy DirectorL. P. Turner, A.R.A.N.Z.
Island TerritoriesSecretaryJ. B. Wright.
JusticeSecretary for Justice, Chief Electoral Officer, Registrar-GeneralS. T. Barnett, Law Prof.
Patent OfficeCommissionerA. J. Costelloe, Law Prof.
LabourSecretary of LabourH. L. Bockett, A.R.A.N.Z.
Lands and SurveyDirector-GeneralD. M. Greig, C.B.E., M.S.I.N.Z.
Law DraftingLaw DraftsmanH. D. C. Adams, C.M.G., LL.B.
LegislativeClerk of House of RepresentativesH. N. Dollimore, LL.B.
Maori AffairsSecretary, and Maori TrusteeT. T. Ropiha, I.S.O., Land Surv. Ex.
MarineSecretaryG. L. O'Halloran, LL.B.
MinesUnder-SecretaryC. H. Benney, Accts. Prof.
NavyChief of the Naval Staff and First Naval Member of the Naval BoardRear-Admiral J. E. H. McBeath, C.B., D.S.O., D.S.C., R.N.
Navy SecretaryD. A. Wraight.
New Zealand Forest Service DirectorA. R. Entrican, C.B.E., A.A.S.E., A.M.I.C.E. 
PoliceController-GeneralS. T. Barnett, Law Prof.
 Deputy Controller-GeneralP. J. Nalder, M.V.O.
Post and TelegraphDirector-GeneralC. A. McFarlane, B.Com., D.P.A.
Prime Minister'sPermanent HeadA. D. M. McIntosh, C.M.G., M.A.
 Chief Private SecretaryK. M. Sleight, C.B.E.
Printing and StationeryGovernment PrinterR. E. Owen.
Public Service CommissionChairman of CommissionG. T. Bolt, C.M.G., Accts. Prof. L. A. Atkinson, M.Com., D.P.A. J. K. Hunn, LL.M.
MembersF. Baker, D.S.O., E.D., A.R.A.N.Z., L F.C.I.S.
Public TrustPublic TrusteeG. E. Turney, Accts. Prof.
RailwaysGeneral ManagerA.T. Gandell, M.I.C.E., M.N.Z.I.E.
Scientific and Industrial ResearchSecretaryW. M. Hamilton, D.Sc., M. Agric. Sc., N.D.H. (N.Z.).
Social SecurityDirector, Chairman, Social Security Commission, and Secretary for War PensionsA. E. T. Williams, Accts. Prof.
State Advances Corporation of New ZealandManaging DirectorT. N. Smallwood, O.B.E.
Deputy Managing DirectorK. J. Caverhill, A.R.A.N.Z.
General ManagerJ. D. R. Wood.
State Fire and Accident InsuranceGeneral ManagerH. C. R. Blackwood.
State Hydro-electricGeneral ManagerA. E. Davenport, B.E. (Elect.), M.I.E.E.
StatisticsGovernment StatisticianG. E. F. Wood, I.S.O., O.B.E., M.A.
Tourist and PublicityGeneral ManagerR. W. Marshall, O.B.., Accts. Prof.
TransportCommissionerH. B. Smith, B.Com., A.R.A.N.Z.
TreasurySecretaryE. L. Greensmith, M.Com., Law Prof., A.R.A.N.Z.
Government Actuary's BranchGovernment ActuaryS. Beckingsale, F.I.A.
SuperannuationControllerW. L. Comrie.
National Provident FundSuperintendent
ValuationValuer-GeneralR. J. MacLachlan, B.A., B.Com., Dip. U.V. (Auck.).
Works, Ministry ofCommissioner of WorksF. H. M. Hanson, D.S.O., and Bar, O.B.E., M.M., E.D., M.S.I.N.Z., M.N.Z.I.E.
Engineer-in-ChiefC.W.O. Turner, B.Sc.(Eng.)(Lon.), M.Eng (Illinois), M.I.C.E.
Government ArchitectF. G. Wilson, A.N.Z.I.A.
Housing DivisionDirectorR. B. Hammond, F.N.Z.I.A., M.T.P.I. (Lon.).

THE PUBLIC SERVICE

The Public Service comprises in the widest sense all servants of the Crown—other than those holding political or judicial office—who are employed in a civil capacity and whose remuneration is paid from parliamentary appropriations. They are employees of the various State Departments, commissions, and other agencies, and represent practically all occupations.

Thirty-eight State Departments are under the control of the Public Service Commission, and employed approximately 34,400 permanent officers and 2,354 temporary staff (excluding casuals) at 1 April 1957. Two other Departments, the Post and Telegraph and the Railways Departments, are each independently controlled. Details of numbers of staff employed and general administrative organization are contained elsewhere in this volume, as are the details of the Teaching Service, the uniformed branches of the Police, Navy, Army, and Air Departments, the Judiciary, and the Magistracy.

The Public Service Commission.—The Commission is a body of four men each appointed by the Governor-General on the recommendation of Government for a period of five years and eligible for reappointment (Public Service Amendment Act 1954).

Functions.—The Commission's functions are defined in the Public Service Act 1912 and amendments, and are briefly as follows: (1) recruitment of staff, (2) classification of positions according to importance and character, (3) maintenance of a fair and efficient system of promotion, (4) protection of the independence and integrity of the Service, (5) maintenance of efficiency and economy, (6) maintenance of discipline, (7) regulation of various personnel matters—e.g., leave, hours of work, payment of allowances.

Recruitment.—The recruitment of public servants is conducted by the Commission through its district representatives, its own officers, and by Departments in collaboration with the Commission. Details of career openings in the Service are regularly supplied to schools; careers booklets are published by the larger Departments.

All recruits, except with permission of the Governor-General, must be British subjects, and are appointed on probation normally for two years.

Classification.—There are five statutory Divisions into which positions may be classified, as follows:

  1. Administrative.—Those positions held by Permanent Heads and their Deputies.

  2. Professional.—Includes qualified officers employed in fields such as architecture, engineering, dentistry, law, medicine, and science.

  3. Clerical.—Includes qualified officers employed on duties ranging from routine clerical and accounting to senior executive positions.

  4. Educational.—Includes teachers in Maori schools, the Correspondence Schools, and special institutions.

  5. General.—Includes a wide range of “field” positions, the trades, and similar occupations.

The Commission is required to grade officers in these divisions according to their fitness and the character and importance of the duties performed by them. A statutory regrading of the whole Service is required each five years; a regrading as at 1 April 1956 is under action.

Promotion.—Promotion in the Public Service is based on merit. While the Service has clearly defined salary scales and avenues of promotion, it allows for and encourages quick promotion with special salary increases to officers of merit. All vacancies above the basic grade for first entry into the Service are widely advertised so that all persons in the Service, and sometimes persons outside the Service, may apply for higher positions. Appointments are given to the most suitable and efficient applicants and, as between Service personnel, seniority becomes a factor only when applicants have equal claims in other respects.

Public servants have certain rights of appeal to the Public Service Board of Appeal concerning (1) gradings fixed by the Commission in the statutory regrading year, (2) promotions approved by the Commission, and (3) decisions by the Commission concerning charges made against officers. The Board's decisions are final.

Independence and Integrity.—One of the statutory functions of the Commission is to protect the Independence and integrity of the Service. The Commission is not responsible to a Minister of the Crown. Subject to the statutory appeal rights of staff, the Commission is autonomous in matters of appointments to and promotions in the Service. It is, however, required to report annually to Parliament on the condition and efficiency of the Public Service.

By statute a person is liable to a penalty should he attempt to influence the Commission regarding a person's appointment, promotion, or salary.

Efficiency and Economy.—The Commission is responsible for efficiency and economy in the Public Service. Its Inspectors carry out general inspections of Departments; and it has an Organization and Methods (O. & M.) Section to give advisory service to Departments and to explore, in collaboration with Departments, problems of Service application with a view to finding model systems. Successful administration depends on the employment of the most efficient and up-to-date management techniques.

Complementary to the continuing search for improved organization and methods is a formal suggestions scheme designed to stimulate suggestions for better methods from all ranks of public servants. This scheme produces a steady flow of suggestions, many of which are adopted in full or in part.

Staff Training and Education.—A comprehensive Service training and education policy is pursued by the Commission's Staff Training Branch. The Branch organizes central courses, instructs departmental training officers in training techniques, publishes training material, assists Departments to develop training to meet specific needs, and acts as a general clearing house for the exchange of information on training methods. It also administers the various bursary schemes operated by the Commission.

Office Accommodation.—The Commission is represented on the Government Office Accommodation Board. The Board's Secretariat are members of, and attached to, the Commission's staff.

Statistics: Staff.—The detailed distribution of staff among Departments under the Public Service Commission is shown in the Commission's annual reports to Parliament (parliamentary paper H. 14).

Salaries.—The following general provisions are applicable.

  1. Public Service Commissioners.—Fixed by annual appropriation. Present rates are Chairman £2,740, members £2,240.

  2. Administrative Division.—Various rates, according to position held; fixed by annual appropriation.

  3. Other Divisions.—As prescribed in Order No. 180 of the Government Service Tribunal. Salaries payable in the Professional and Clerical Divisions from 19 November 1956 were (teachers' salaries are shown in the Education Section; various rates are payable in the General Division):

ClassSalary Incremental Range
VI£280, £325, £375, £425, £480, £535, £580, £625, £665, £720, £765.
V£665, £720, £765, £810, £850.
IV£895, £935.
III£970, £1,000.
II£1,040, £1,080.
I£1,150, £1,225.
Sp.£1,290, £1,340, £1,390, £1,465, £1,540, £1,640, £1,740, £1,840, £1,940, £2,040, £2,140, £2,240.

The commencing salary for those with three years' secondary education is £325; with School Certificate, £375; with Endorsed School Certificate, £375, with increment to next step after six months' service; with University Entrance £425; and for those with University Entrance and Higher School Certificate, £425, with increment to next step after six months' service. The initial maximum for a female clerk is £625.

NEW ZEALAND REPRESENTATIVES OVERSEAS

APRIL 1957

  • Argentina.—Hon. Representative of Department of Industries and Commerce, T. E. B. Poole, Alsina, 1146, Buenos Aires.

  • Australia.—High Commissioner, G. E. L. Alderton, C.M.G.; First Secretary, J. H. Weir; Third Secretary, P. C. Cotton, Canberra, A.C.T.; Head, New Zealand Joint Services Liaison Staff, Group Captain W. H. Stratton, D.F.C., R.N.Z.A.F., Victoria Barracks, Melbourne, S.C. 1; Senior Trade Commissioner in Australia and Commercial Adviser, J. A. Malcolm; Trade Commissioner and Assistant Commercial Adviser, E. J. Sutch; Travel Manager (Tourist and Publicity), R. W. Coupland; Assistant Trade Commissioner, K. J. Flutter; Trade Commissioner (Timber), T. A. Foley, 14 Martin Place (P.O. Box 365F), Sydney; Trade Commissioner and Commercial Adviser, R. J. Inglis; Assnt Trade Commissioner and Assistant Commercial Adviser, A. K. Robinson; Travel Manager (Tourist and Publicity), N. F. Gouffe, 428 Collins Street (P.O. Box 2136), Melbourne.

  • Burma.—Hon. New Zealand Government Agents, New Zealand Insurance Co., Rangoon.

  • Canada.—High Commissioner (vacant); First Secretary and Acting High Commissioner, R. H. Wade; Third Secretary, G. K. Ansell; Military, Naval, and Air Adviser, Air Commodore T. F. Gill, D.S.O., R.N.Z.A.F.; Assistant Military, Naval, and Air Adviser, Lieutenant-Colonel J. A. Pountney, M.B.E., Suite 804, Commonwealth Building, 77 Metcalfe Street (P.O. Box 1222, Sparke Street), Ottawa; Trade Commissioner, N. S. Mountain; Assistant Trade Commissioner, J. D. Kerr, 609 Sun Life Building, Montreal.

  • Federation of Malaya and Singapore.—Commissioner for New Zealand in South-East Asia, Foss Shanahan; First Secretary, J. Shepherd; Third Secretary, R. L. Jermyn; Third Secretary, H. L. Hobson; Third Secretary (Administration), C. A. Mark; Military Liaison Officer, Lieutenant-Colonel H. A. Purcell, D.S.O.; Trade Commissioner, R. G. Hampton, 4th Floor, Asia Insurance Building, Finlayson Green, Singapore.

  • Fiji.—Hon. New Zealand Government Agents, W. R. Carpenter and Co. (Fiji) Ltd., Suva.

  • France.—New Zealand Legation, Minister, J. V. Wilson; First Secretary, O. P. Gabites; Second Secretary, M. Norrish, 9 Rue Leonard de Vinci, Paris.

  • Hawaii.—Hon. New Zealand Government Agent, H. C. Tennent (P.O. Box 3556), Honolulu.

  • India.—Trade Commissioner, J. B. McGuire; Assistant Trade Commissioner, C. C. Petersen, Mercantile Bank Buildings, Mahatma Gandhi Road (P.O. Box 1194), Bombay. Hon. New Zealand Government Agents, New Zealand Insurance Co., Calcutta.

  • Japan.—Minister, J. S. Reid; First Secretary, R. R. Cunninghame; Trade Commissioner and Commercial Secretary, J. S. Scott; Assistant Commercial Secretary, C. A. H. Paul, 26 Sanbancho Kojimachi Chiyodaku, Tokyo.

  • Netherlands.—Consul, T. A. N. Johnson, 53 Anna Paulownastraat, The Hague.

  • South-East Asia Treaty Organization.—Council Representative, Foss Shanahan, Bangkok.

  • Thailand.—Ambassador, Foss Shanahan; Counsellor, R. L. G. Challis; First Secretary, B. S. Lendrum; Third Secretary, W. B. Harland; Third Secretary (Administration), I. P. Muir, New Zealand Embassy, Phyathai Road, Bangkok.

  • United Kingdom of Great Britain and Northern Ireland.—High Commissioner, the Hon. Sir Clifton Webb, K.C.M.G., Q.C.; Official Secretary, R. M. Campbell, C.M.G.; Counsellor, F. H. Corner; Counsellor (Economic), H. G. Lang; Third Secretary, H. H. Francis; Senior R.N.Z.A.F. Officer, Air Commodore R. J. Cohen C.B.E., A.F.C., R.N.Z.A.F.; Senior Army Liaison Officer, Brigadier A. H. Andrews, O.B.E.; Senior R.N.Z.N. Liaison Officer, Captain B. E. Turner, O.B.E., D.S.C., R.N.Z.N.; Financial Secretary, S. C. Parker; Senior Trade Commissioner and Commercial Counsellor, J. B. Prendergast; Trade Commissioner and Commercial Secretary, C. H. Fowler; Assistant Trade Commissioner and Commercial Secretary, D. P. Taylor; Public Relations Officer, A. T. Campbell; Scientific Adviser, Dr. V. Armstrong; Agricultural Adviser, C. V. Dayus; Inspector of Dairy Products, J. J. Walker; Chief Migration Officer, J. V. Brennan; Customs Adviser, J. R. Osbaldiston; Travel Manager (Tourist and Publicity), A. N. Reid; Communications Adviser, H. W. Curtis; Representative of the Public Trust Office, G. J. Duncan; Advisory Engineer, New Zealand Railways, R. F. Marriott.

  • United Nations.—Permanent Representative, Sir Leslie Munro, K.C.M.G.; Counsellor Trusteeship Affairs, T. P. Davin; First Secretary, R. M. Miller; Second Secretary, W. G. Thorp; Third Secretary, R. B. Atkins; Attaché, R. J. Lawrence; the Permanent Mission of New Zealand to the United Nations, Suite 530, International Building, Rockefeller Centre, New York.

  • United States of America.—Ambassador, Sir Leslie Munro, K.C.M.G.; Counsellor, G. D. L. White; First Secretary, N. V. Lough; Second Secretary, H. P. Jeffery; Third Secretary, D. G. Harper; Attaché, Miss J. H. Young, New Zealand Embassy, 19 Observatory Circle, Washington. Armed Forces Attaché, Air Commodore T. F. Gill, D.S.O., R.N.Z.A.F.; Assistant Armed Forces Attaché, Lieutenant-Colonel J. A. Pountney, M.B.E., Munitions Building, 20th and Constitution Avenues, Washington. Trade Commissioner and Commercial Counsellor, D. W. Woodward; Assistant Trade Commissioner and Commercial Attaché, G. L. Easterbrook-Smith, Suite 306, Associations Building, 1145 19th Street, Washington, N.W. Consul-General, T. P. Davin; Consul, R. J. Lawrence; Consul (Commercial) and Trade Commissioner, G. Laurence; Travel Commissioner, J. P. Campbell, Suite 530, International Building, Rockefeller Centre, New York. Consul-General and New Zealand Travel Commissioner for the United States and Canada, R. M. Firth, New Zealand Consulate-General, 153 Kearny Street, San Francisco.

OVERSEAS REPRESENTATIVES IN NEW ZEALAND

APRIL 1957

  • Argentina.—Consul-General, Romula M. Zabala, Government Life Insurance Building, Customhouse Quay, Wellington.

  • Australia.—High Commissioner, His Excellency Vice-Admiral Sir John Collins, K.B.E., C.B.; First Secretary, F. B. Hall; Defence Representative, Group Captain A. E. L. Davies, R.A.A.F.; Second Secretary, J. H. Hoyle, Government Life Insurance Building, Customhouse Quay, Wellington; Senior Trade Commissioner, W. R. Hudspeth; Assistant Trade Commissioner, G. F. Johnson, Government Life Insurance Building, Customhouse Quay, Wellington. Trade Commissioner, B. G. Dawson, 27 Queen Street, Auckland. Trade Commissioner, H. Sullivan, Phoenix Assurance Building, 89 Worcester Street, Christchurch.

  • Austria.—Chargé d'Affaires (with jurisdiction in New Zealand), Dr Johann Manz, Canberra; Hon. Consul, S. Clarke, Wellington.

  • Belgium.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr Armand Nihotte; Secretary of Legation, Victor Bernard, Dominion Farmers' Institute, Wellington. Hon. Consuls; J. B. Ferguson, Auckland; Sir Joseph Ward, Bart., Christchurch; A. H. Allen, Dunedin.

  • Brazil.—Hon. Consul, C. A. L. Treadwell; Hon. Vice-Consul, P. J. Treadwell, Wellington.

  • Canada.—High Commissioner, His Excellency Mr K. P. Kirkwood; Commercial Counsellor, Lester S. Glass; First Secretary, C. E. McGaughcy; Third Secretary (Commercial), John MacNaught, Government Life Insurance Building, Customhouse Quay, Wellington.

  • Ceylon.—High Commissioner (with jurisdiction in New Zealand), His Excellency Mr P. R. Gunasekara; Second Secretary, H. O. Wijegoonawardena, Canberra; Second Secretary (Commercial) and Trade Commissioner, K. Manikkalingam, Sydney; Hon. Trade Commissioner, D. H. Scott, Wellington.

  • Chile.—Consul (with jurisdiction in New Zealand), J. R. Dundas Smith, Sydney; Hon. Consul, H. O. Taylor, Auckland.

  • China.—Consul-General, Tien Fang Cheng; Consul, Tai Hsin-Chuan, D.I.C. Buildings, Lambton Quay, Wellington.

  • Cuba.—In New Zealand, Consular Officers of the United States of America act on behalf of the Cuban Government.

  • Czechoslovakia.—Consul-General (with jurisdiction in New Zealand), M. Jandik, Sydney; Consul and Acting Consul-General, K. Nejepinsky, 38 Roxburgh Street, Wellington.

  • Denmark.—Chargé d'Affaires, a.i., Mogens G. I. Melchior, Government Life Insurance Building, Customhouse Quay, Wellington. Hon. Consuls: L. J. Stevens, Auckland; A. C. Perry, Christchurch. Hon. Vice-Consul, G. C. Petersen, Palmerston North.

  • Dominican Republic.—Hon. Consul, F. Russell Baker, Auckland.

  • Fiji.—New Zealand Agents for the Colony of Fiji, L. D. Nathan and Co. Ltd., Auckland.

  • Finland.—Chargé d'Affairs (with jurisdiction in New Zealand), P. I. Simelius, Sydney. Hon. Vice-Consul, J. T. Christiansen, Auckland.

  • France.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr Roger de Bercegol de Lile; Second Secretary, J. Meadmore; Third Secretary and Vice-Consul, G. Peugeot; Commercial Counsellor, E. L. Lestocquoy; Assistant Commercial Attaché, M. Baillard, Government Life Insurance Building, Customhouse Quay, Wellington. Temporary Army and Air Attaché, Colonel M. Fray (Resident in Noumea); Temporary Naval Attaché, Capitaine de Fregate J. B. F. M. des Moutis (Resident in Noumea). Hon. Consular Agents: R. G. McElroy, Auckland; F. Farrell, Christchurch; A. N. Haggitt, Dunedin; E. F. Paul, Apia, Western Samoa.

  • German Federal Republic.—Envoy Extraordinary and Minister Plenipotentiary (designate), His Excellency Dr E. H. Nöhring; Chargé d'Affaires, a.i., Dr H. J. Dietrich; Commercial Secretary, R. Achenbach, 3 Claremont Grove, Wellington.

  • Greece.—Envoy Extraordinary and Minister Plenipotentiary (with jurisdiction in New Zealand), His Excellency Mr George Christodulo; First Secretary, E. Verghis, Canberra. Hon. Consul-General, T. E. Y. Seddon, Wellington; Hon. Deputy Consul-General, S. Garland, Wellington.

  • India.—High Commissioner (with jurisdiction in New Zealand), His Excellency Mr P. Achutha Menon, Canberra; Press Attaché, K. C. Sen Gupta, Sydney; First Secretary (Commercial) (vacant), 49 Willis Street, Wellington.

  • Israel.—Envoy Extraordinary and Minister Plenipotentiary (with jurisdiction in New Zealand), His Excellency Mr M. Nurock; First Secretary and Consul, Zeev Dover, Sydney.

  • Italy.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Count Pio Macchi Di Cellere (absent), 24 Grant Road, Wellington. Hon. Consular Agents, Renato Forti, Auckland; P. P. Amodeo, Christchurch.

  • Japan.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr Hisanaga Shimadzu; Counsellor, Yoshiharu Takeno; Attaché, Masakazu Oda, Eva Street, Wellington.

  • Lebanon.—Consul-General (with jurisdiction in New Zealand), J. Shadid, Sydney.

  • Nepal.—In New Zealand, the High Commissioner of India acts on behalf of the Government of Nepal.

  • Netherlands.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr B. A. Piets; Attaché of Legation, J. F. E. Breman, D.I.C. Building, Lambton Quay, Wellington; Emigration Attaché, C. A. Korndörffer, D.I.C. Building, Lambton Quay, Wellington. Hon. Consul, C. S. O. Hughes; Migration Officer, H. W. F. M. Knottenbelt, Auckland; Assistant Emigration Attaché, E. J. F. Westerhuis, Christchurch. Hon. Vice-Consuls: G. N. Francis, Christchurch; J. M. Ritchie, Dunedin.

  • Nicaragua.—Consul-General (with jurisdiction in New Zealand), C. Paray, Sydney.

  • Norway.—Consul-General (with jurisdiction in New Zealand), Sigurd S. Klingenberg, Sydney. Hon. Consul, Dr A. B. Andersen, Wellington. Hon. Vice-Consuls: D. Millar, Auckland; J. Heaton Rhodes, Christchurch; W. F. Edmond, Dunedin.

  • Pakistan.—High Commissioner (with jurisdiction in New Zealand), His Excellency Lieutenant-General Mohammed Yusuf; Counsellor, S. A. A. K. Durrani; Second Secretary, Z. A. Farooqi; Commercial Secretary, A. W. Khan, Sydney.

  • Panama.—Hon. Consul, P. C. Griffiths, Auckland.

  • The Philippines.—Envoy Extraordinary and Minister Plenipotentiary (with jurisdiction in New Zealand), His Excellency Dr Jose F. Imperial; Second Secretary and Consul, Dr G. P. Provido; Military Attaché, Lieutenant-Colonel Ernesto del Castillo; Commercial Attaché, Miss Marcela Baldoz; Assistant Cultural Attaché, Dr A. J. Agbayani, Sydney.

  • Poland.—Consul-General (with jurisdiction in New Zealand), Albert Morski, London.

  • Portugal.—Hon. Consuls: L. D. Nathan, Auckland; W. S. Wheeler, Wellington. Hon. Vice-Consul, I. D. Reid, Wellington.

  • Sweden.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr J. M. Kastengren, 105 Customhouse Quay, Wellington; Hon. Acting Consul, C. E. Taylor, Wellington. Hon. Vice-Consuls: C. M. Richwhite, Auckland; I. Machin, Christchurch; R. S. Glendining, Dunedin; G. M. Corbet, Invercargill.

  • Switzerland.—Consul-General, P. H. Aubaret (absent); Vice-Consul, W. A. Sollberger, D.I.C. Building, Wellington.

  • Thailand.—Ambassador Extraordinary and Plenipotentiary (with jurisdiction in New Zealand), His Excellency Mr Konthi Suphamongkhon, Canberra; Military Attaché, Colonel Prapat Kuvanonda, Melbourne.

  • Tonga.—New Zealand Agents for the Government of Tonga, Messrs Spedding Ltd., Auckland.

  • Turkey.—Hon. Consul, E. G. Cowell, Auckland.

  • Union of South Africa.—Hon. Trade Commissioner, M. G. C. McCaul, Wellington.

  • Union of Soviet Socialist Republics.—Chargé d'Affaires, a.i., G. M. Rodionov; First Secretary, V. A. Roslavtsev; Commercial Counsellor, E. I. Gergel; Third Secretaries, A. I. Ivantsov, E. P. Lutskij, 57 Messines Road, Wellington.

  • United Kingdom of Great Britain and Northern Ireland.—High Commissioner, His Excellency Mr H. G. C. Mallaby, C.M.G., O.B.E.; Deputy High Commissioner, D. M. Cleary; Economic Adviser and Senior Trade Commissioner, D. A. Bryan, O.B.E.; First Secretary, R. C. Ormerod; Agricultural Adviser, E. G. Griffiths; Second Secretary, T. D. O'Leary; Information Officer, J. L. Hayden, O.B.E.; Trade Commissioner, M. E. Browne; Assistant Trade Commissioners, J. H. Barwick, F. H. Lockyer, Government Life Insurance Building, Customhouse Quay, Wellington. Assistant Trade Commissioner, T. A. Cooper, Queen's Arcade Building, Customs Street East, Auckland. Service Liaison Staff: Navy, Captain B. J. Anderson, R.N.; Army, Colonel J. M. Clift; Air, Group Captain G. H. B. Hutchinson, D.F.C., R.A.F.; Joint Secretary, Major J. M. T. Greene, Government Life Insurance Building, Customhouse Quay, Wellington.

  • United States of America.—Ambassador Extraordinary and Plenipotentiary (designate), His Excellency Mr Francis H. Russell; Chargé d'Affaires, a.i., Samuel D. Berger; Army Attaché, Colonel John V. Lanterman; Air Attaché, Colonel John J. Hussey (resident in Melbourne); Assistant Air Attachés, Lieutenant-Colonel Collas G. Harris, Major Leonard F. Donnelly (resident in Melbourne); Naval Attaché and Naval Attaché for Air, Captain Joseph A. Gage (resident in Melbourne); Assistant Naval Attaché and Assistant Naval Attaché for Air, Lieutenant John C. Marsh (resident in Melbourne); First Secretary (Economic and Commercial), William Kling; First Secretary, William N. Fraleigh; Attaché and Consul (Administrative Officer), Nathan R. Meadows; Public Affairs Officer, Levan Roberts; Agricultural Attaché, Eugene T. Ransom; Second Secretary (Economic and Commercial), Laurence G. Pickering; Second Secretary and Vice-Consul, Mrs Edith A. Stensby, Government Life Insurance Building, Customhouse Quay, Wellington. Consul, George M. Fennemore, Auckland. Consular Agent, William G. Quirk, Christchurch.

  • Yugoslavia.—Consul-General, N. Krajinovic, 35 Arawa Road, Hataitai, Wellington; Vice-Consul, F. Broz, Wellington.

Chapter 46. STATISTICAL SUMMARY

STATISTICAL SUMMARY FOR NEW ZEALAND

POPULATION AND EXTERNAL MIGRATION (INCLUDING MAORIS)

YearPopulationMean PopulationYear Ended 31 March
At 31 DecemberAt 31 MarchYear Ended 31 DecemberYear Ended 31 MarchOverseas Passenger Arrivals*Overseas Passenger Departures*

* Excluding “through” passengers, and tourists on cruising liners.

1906956,457933,114943,325920,61533,25323,973
19071977,215961,598966,836949,65039,81228,877
19081,008,373985,320992,794973,45937,61829,853
19091,030,6571,016,0631,019,5151,000,69245,37431,226
19101,050,4101,035,2121,040,5341,025,63834,71532,854
19111,075,2501,056,1991,063,8871,045,70637,04934,375
19121,102,4711,081,3441,088,8611,069,82843,09737,205
19131,134,5061,111,5891,118,4881,096,46746,89234,935
19141,145,8381,139,6681,140,1721,125,62841,67231,517
19151,152,6381,150,3861,149,2381,145,02733,37727,254
19161,150,3391,150,2501,149,2251,150,31825,40722,808
19171,147,4481,150,9381,148,8931,149,22520,47020,047
19181,158,1491,154,5591,152,7981,152,74813,71812,214
19191,227,1811,178,4061,192,6651,166,48211,97811,473
19201,257,6111,236,9151,242,3961,207,66026,90023,990
19211,292,8921,267,4981,274,9171,252,20646,09051,908
19221,318,8841,301,2511,305,1261,283,54641,12830,396
19231,343,0211,325,3011,328,1931,311,38234,10828,581
19241,370,4031,347,8531,352,6181,334,02936,25430,487
19251,401,2301,379,4871,384,4281,359,9542,21129,913
19261,429,6691,409,8121,413,7431,392,07342,44930,714
19271,450,3561,438,1321,439,0041,420,83845,68234,018
19281,467,3701,453,8211,456,0751,443,55135,83737,072
19291,486,1341,471,1101,473,4191,460,36334,79934,088
19301,506,8091,489,2031,493,0191,478,02733,83931,454
19311,522,7621,511,7001,514,2151,498,41630,74125,632
19321,534,7351,525,5451,527,0621,517,94017,89121,063
19331,547,1241,538,0281,539,5901,530,11918,71321,308
19341,558,3731,550,1251,551,5321,542,65119,68722,022
19351,569,6891,560,9921,562,2331,554,29724,90128,051
19361,584,6171,573,9271,575,2311,565,26326,93628,050
19371,601,7581,587,2111,589,9721,578,75731,67032,023
19381,618,3131,604,4791,606,7631,594,27538,73836,352
19391,641,6391,624,7141,628,5121,611,36242,64837,685
19401,633,6451,640,9011,637,3051,633,44731,43225,404
19411,631,2761,636,2301,630,9481,635,71513,81413,100
19421,636,4031,634,3381,639,5721,630,4197,1026,893
19431,642,0411,634,0941,635,63811,640,1913,1332,592
19441,676,2931,643,9001,655,7941,637,5703,7473,640
19451,727,8171,679,9721,694,6411,664,5857,2076,189
19461,781,2141,756,7561,759,5261,710,68013,30910,966
19471,817,4531,789,4761,798,2621,770,29125,35822,320
19481,853,8061,828,0251,834,6551,807,61133,14427,388
19491,892,0421,864,5601,871,7481,843,76735,94631,765
19501,927,6291,902,8831,909,0921,881,31750,88043,000
19511,970,5221,938,0321,947,5291,917,93454,64447,122
19522,024,5561,984,7301,996,1491,958,72962,49846,834
19532,074,7812,037,5532,048,8262,009,50666,24044,208
19542,118,4342,087,7402,094,9102,061,37661,84546,404
19552,164,7552,130,9272,138,9672,105,76761,61054,580
19562,208,7802,175,3732,182,6172,150,29066,47258,380

VITAL STATISTICS (EXCLUDING MAORIS)

YearNumbersRates Per 1,000 of Mean PopulationDeaths Under 1 Year Per 1,000 Live Births
Live BirthsMarriagesDeathsDeaths Under 1 YearLive BirthsMarriagesDeaths

* From 1942 figures relate to total marriages (i.e. European and Maori).

190624,2527,5928,3391,50627.088.489.3162.10
190725,0948,19210,0662,22827.308.9110.9588.79
190825,9408,3399,0431,76127.458.829.5767.89
190926,5248,0948,9591,63427.298.339.2261.60
191025,9848,2369,6391,76026.178.309.7167.73
191126,3548,8259,5341,48425.978.709.3956.31
191227,5089,1499,2141,40926.488.818.8751.22
191327,9358,81310,1191,65326.148.259.4759.17
191428,3389,28010,1481,45625.998.519.3151.38
191527,85010,0289,9651,39425.339.129.0650.05
191628,5098,21310,5961,44625.947.479.6450.72
191728,2396,41710,5281,36025.695.849.5848.16
191825,8606,22716,3641,25223.445.6514.8448.41
191924,4839,51910,8081,10821.428.339.4645.26
192029,92112,17512,1091,51325.0910.2110.1550.57
192128,56710,63510,6821,36623.368.698.7347.82
192229,0069,55610,9771,21523.187.648.7741.89
192327,96710,07011,5111,22521.967.919.0443.80
192428,01410,25910,7671,12721.607.918.3040.23
192528,15310,41911,0261,12521.207.858.3039.96
192628,47310,68011,8191,13221.067.908.7439.76
192727,88110,47811,6131,08020.297.638.4538.74
192827,20010,53711,81198419.577.588.5036.18
192926,74710,96712,31491219.037.808.7634.10
193026,79711,07512,19992418.837.788.5734.48
193126,6229,81712,04785618.456.818.353.15
193224,8849,89611,68377717.126.818.0431.22
193324,33410,51011,70177016.637.187.9931.64
193424,32211,25612,52778116.517.648.5032.11
193523,96512,18712,21777316.178.238.2532.26
193624,83713,80813,05676916.649.258.7530.96
193726,01414,36413,65881217.299.559.0831.21
193827,24915,32814,75497117.9310.099.7135.63
193928,83317,11514,15889818.7311.129.2031.14
194032,77117,44814,28299021.1911.289.2430.21
194135,10013,31315,1461,04522.818.659.8429.77
194233,57412,775*16,38596421.737.79*10.6028.71
194330,31112,02115,44795119.707.3510.0431.37
194433,59913,64615,3631,01221.598.249.8730.12
194537,00716,69316,0511,03623.229.8510.0727.99
194641,87121,09616,0931,09325.2611.999.7126.10
194744,81619,04715,9041,12226.4710.599.3925.04
194844,19317,75015,81297025.599.679.1621.95
194943,98817,35416,0121,04624.989.279.0923.78
195044,30917,09916,7151,00824.678.969.3122.75
195144,65116,91517,5121,01724.398.699.5622.78
195246,46917,06117,4131,01424.778.559.2821.82
195346,41417,22417,00993124.128.418.8420.06
195448,43117,55717,66796824.638.388.9819.99
195549,86917,79517,9531,00224.868.328.9520.09
195650,43017,53118,40397824.678.039.0019.39

EDUCATION

YearNumber of Scholars* ReceivingUniversity Students (Excluding Affiliated Agricultural Colleges)
Primary Education atSecondary Education at
Public SchoolsRegistered Private SchoolsMaori Village SchoolsSecondary (Including Endowed and Combined) SchoolsDistrict High SchoolsTechnical SchoolsRegistered Private Schools and Maori Secondary Schools

* Excludes those receiving tuition from the Correspondence Schools (primary and secondary).

1906139,40017,2174,1744,2702,594  1,332
1907141,28118,1744,1834,1962,452  1,325
1908147,66016,2444,2174,3272,142699 1,634
1909152,69717,9894,1214,8561,891846 1,846
1910156,68719,0524,2805,1761,9161,253 1,862
1911161,99119,9674,5575,4651,7771,3418311,900
1912166,64520,3504,6945,8311,8151,5268832,228
1913172,61721,2514,6476,1541,8371,6645452,318
1914178,96922,2475,0726,4181,8961,8398502,257
1915183,71922,4775,1916,4882,1021,9559922,039
1916186,35023,6355,1327,0522,1152,1051,0041,985
1917188,75425,6855,1737,5902,1802,3471,2061,977
1918193,34526,3715,0648,3842,2832,7471,3662 226
1919194,58620,9775,1989,0682,1592,9261,4973,060
1920198,46022,1935,5089,1962,1572,7661,4393,822
1921205,95523,9245,82210,0302,1763,3491,6344,123
1922211,08124,8616,16110,7362,6064,2021,9983,958
1923212,46026,0106,18611,6192,8185,0542,1344,202
1924213,76826,3026,31012,0102,9005,3692,4734,236
1925215,06325,9336,38612,5143,1365,1322,5114,442
1926219,01726,7786,59113,6513,2995,7002,7944,653
1927221,15727,3586,62014,1903,5815,7032,9324,878
1928219,95026,5966,67115,0383,8806,0613,4304,802
1929219,16626,9776,97915,4984,0006,1143,6984,623
1930219,23526,4517,07016,1494,2406,9533,8254,801
1931218,82926,7267,50316,3444,9447,3973,7774,869
1932207,63526,4107,31315,9484,4867,1063,6164,912
1933200,96826,4287,34015,7154,5117,1493,5864,806
1934200,07026,6367,58715,9014,3657,1833,6514,721
1935197,68926,8697,87616,1624,5937,3233,9684,818
1936210,55227,7099,17516,5564,0707,4224,2414,967
1937208,03627,9319,64216,8114,3897,8334,6135,010
1938206,37528,3869,83217,7644,9058,1494,9025,219
1939205,41528,28010,40318,1765,4018,4815,1375,647
1940204,27628,45410,73017,7105,2538,0095,2075,197
1941204,33228,61410,91616,9865,0337,3715,3254,964
1942204,20028,46711,00916,8054,8527,9235,3574,292
1943204,37229,32811,27418,3245,1978,4366,0355,693
1944206,22029,71711,79320,8296,18710,2336,9276,986
1945209,89930,40112,19021,5666,87210,8657,8318,149
1946218,61431,50612,65421,9366,65611,7128,41910,993
1947227,10832,60413,17021,8476,66612,3288,91311,291
1948233,30433,36013,25422,0596,89512,1368,80911,380
1949242,03834,96013,28822,6177,32012,5049,18211,000
1950254,53336,74813,42623,5396,99213,8599,43910,936
1951267,54138,51213,66324,6287,19514,8719,94610,428
1952285,04040,44414,07626,4117,94616,17910,55810,225
1953300,74842,79914,34528,7838,70918,13611,36810,326
1954314,94444,24014,08635,6168,36418,26812,56810,304
1955321,53745,96313,98840,8248,87618,29212,90310,331
1956335,64548,43414,09643,1118,01819,06914,53410,493

JUSTICE

YearSummary Convictions in Magistrates' Courts*Total Convictions or Sentences in Superior CourtsTotal Distinct Persons Sentenced in Superior CourtsPrisoners in Gaol at End of Year (Undergoing Sentence)
NumberRate Per 1,000 of Mean PopulationNumberRate Per 1,000 of Mean PopulationNumberRate Per 1,000 of Mean PopulationNumberRate Per 1,000 of Population

* Excluding Children's Court cases from year 1914 onwards.

† Not available.

‡ Change in legislation has resulted in more cases being dealt with in Magistrates' Courts.

190525,37127.784490.494330.477600.82
190627,67029.334450.474330.468330.87
190730,90131.964900.514810.507910.81
190830,85231.085430.555320.548150.81
190931,15130.555520.545440.538770.85
191032,43531.174950.484940.478430.80
191133,02931.054530.434270.408020.75
191236,19133.244800.444280.398210.75
191339,68535.484460.404090.378340.74
191440,67335.675220.464830.429810.86
191538,44633.455090.444410.389410.82
191634,32429.874480.394010.358340.73
191733,30228.996230.543770.339540.83
191828,42124.656320.553550.311,0050.87
191931,76626.638080.684610.398520.69
192034,74027.961,0110.814590.379960.79
192136,49228.581,4751.166160.481,0440.81
192233,99526.051,4171.096010.461,0520.83
192336,70129.141,6631.256250.471,1410.85
192438,98228.821,3881.035550.411,1970.87
192543,40731.351,4651.065110.371,2840.92
192644,88731.751,5621.105690.401,3880.97
192744,54030.951,7391.215690.401,4831.02
192843,41929.821,3680.944780.331,4350.98
192944,31130.071,3450.914730.321,3420.90
193045,54430.501,5241.025380.361,5231.01
193140,37426.661,6241.076000.401,6141.06
193240,59126.581,7101.126360.421,5220.99
193336,04323.411,5130.985310.341,4100.91
193435,75223.041,2130.784900.321,1990.77
193536,23023.191,1480.734720.301,1120.71
193639,51725.091,1780.754620.299150.58
193742,72626.871,3180.835070.327900.49
193849,65130.901,3220.824880.307770.48
193952,28832.111,4890.915710.358950.55
194046,11028.161,3940.855470.338630.53
194139,63624.301,4960.925420.339880.61
19421,4600.894570.281,0340.63
19431,3780.844940.301,0240.62
19441,4410.875600.349450.56
19451,8851.116190.379980.58
19461,7130.976550.379920.56
194740,99022.791,9481.087400.411,0880.60
194844,11924.052,3231.277170.399860.53
194950,00026.711,7180.926760.369410.50
195051,60627.031,5830.836420.341,0430.54
195156,12828.821,5740.816440.331,0400.53
195273,96037.051,7060.857040.351,0830.54
195382,14340.093610.181790.091,0880.52
195480,21038.293260.161480.071,1960.57
195577,80636.383770.181470.071,1180.52

AGRICULTURE

SeasonWheat for ThreshingOats for Threshing
AreaYieldYield Per AcreAreaYieldYield Per Acre

* Yield probably overstated for these four seasons, owing to total being obtained by applying ascertained averages to areas returned by farmers as sown for threshing. Some areas returned in these years as intended for threshing would appear to have been eventually utilized for other purposes.

 AcresBushelsBushelsAcresBushelsBushels
1905–06222,1836,798,93430.60354,29112,707,98235.86
1906–07206,1855,605,25227.18351,92911,201,78931.83
1907–08193,0315,567,13928.84386,88515,021,86138.82
1908–09252,3918,772,79034.75406,90818,906,78846.46
1909–10311,0008,661,10028.00377,00013,804,00037.00
1910–11322,1678,290,22125.73302,82710,118,91733.41
1911–12215,5287,261,13833.69403,66819,662,668*48.71
1912–13189,8695,179,62627.28386,78613,583,924*35.12
1913–14166,7745,231,70031.37361,74114,740,946*40.75
1914–15229,6006,644,33628.94287,56111,436,301*39.77
1915–16329,7087,120,77121.60213,5867,673,60135.93
1916–17217,7435,051,22723.19177,5245,371,43630.26
1917–18280,9786,807,53624.23156,2024,942,75931.64
1918–19208,0306,567,62931.57172,6866,884,60939.87
1919–20139,6114,559,93432.66179,8006,967,86238.75
1920–21219,9856,872,26231.24147,5595,225,11535.41
1921–22352,91810,565,27529.94170,6556,752,66339.56
1922–23275,7758,395,02330.44143,0905,688,15739.75
1923–24173,8644,174,53724.0163,8421,964,51130.77
1924–25166,9645,447,75832.62147,3875,707,17438.72
1925–26151,6734,617,04130.44102,4854,115,60640.14
1926–27220,0837,952,44236.13117,3264,997,53542.58
1927–28260,9879,541,44436.5688,2233,852,68743.66
1928–29255,3128,832,86434.6073,1013,065,11341.93
1929–30235,9427,239,55630.6867,7223,002,28844.33
1930–31249,0147,579,15330.4487,1523,376,60938.74
1931–32268,7566,582,69824.4968,6902,818,15241.03
1932–33302,53111,054,97236.54116,2065,132,18344.16
1933–34286,2719,036,01731.5678,3433,242,50041.39
1934–35225,3895,933,24526.3252,5161,890,14535.99
1935–36248,6398,859,22335.6377,5023,302,64242.61
1936–37221,7907,168,96332.3274,7723,525,43047.15
1937–38185,9496,042,98132.5057,9172,640,91545.60
1938–39189,2815,564,13629.4054,4222,604,81747.86
1939–40257,5328,010,08931.1049,7512,081,10641.83
1940–41243,1978,305,86534.1571,7583,114,94643.41
1941–42258,0028,671,24433.6170,7963,444,81248.66
1942–43286,9989,819,34234.2156,2912,808,77449.90
1943–44233,7867,208,48530.8339,6521,834,31046.26
1944–45183,8866,992,20438.0277,6844,209,14354.18
1945–46161,0495,439,04133.7757,2782,796,87748.83
1946–47141,4075,368,12037.9655,2972,686,21148.58
1947–48123,7514,539,01736.6863,1592,853,51745.18
1948–49146,7075,958,02640.6178,3003,718,59747.49
1949–50125,1594,899,66839.1552,6452,620,25249.77
1950–51144,7636,271,92843.3335,8081,827,95351.05
1951–5289,9553,890,16743.2545,5612,469,53054.20
1952–53127,2254,525,29835.5749,0872,385,12948.59
1953–54113,8134,783,22742.0320,529945,38646.05
1954–55103,9894,113,44439.5631,1641,602,05851.41
1955–5668,3002,651,42938.8241,6061,924,45446.26

LIVESTOCK

YearHorsesTotal CattleDairy CowsSheepPigs

* Not available.

† Figures from 1917 onwards include dairy cows in milk only.

1906326,5371,810,936517,72020,108,471249,727
1907342,6081,851,750543,92720,983,772242,273
1908352,8321,816,299541,36322,449,053241,128
1909363,2591,773,326536,62923,480,707245,092
1910***24,269,620*
1911404,2842,020,171633,73323,996,126348,754
1912***23,750,153*
1913***24,191,810*
1914***24,798,763*
1915***24,901,421*
1916371,3312,417,491750,32324,788,150297,501
1917373,6002,575,230684,03225,270,386283,770
1918378,0502,869,465710,56126,538,302258,694
1919363,1883,035,478732,25325,828,554235,347
1920346,4073,101,945782,75723,919,970266,829
1921337,2593,139,223890,22023,285,031349,892
1922332,1053,323,2231,015,32522,222,259384,333
1923330,8183,480,6941,124,67123,081,439400,889
1924330,4303,563,4971,184,97723,775,776414,271
1925326,8303,503,7441,195,56724,547,955440,115
1926314,8673,452,4861,181,44124,904,993472,534
1927303,7133,257,7291,181,54525,649,016520,143
1928307,1603,273,7691,242,72927,133,810586,898
1929298,9863,445,7901,291,20429,051,382556,732
1930297,1953,770,2231,389,54130,841,287487,793
1931282,7294,043,5601,478,94729,792,516468,533
1932267,9804,035,4181,562,07928,691,788505,755
1933263,8834,155,0581,703,32827,755,966583,921
1934260,8924,264,1631,795,81728,649,038652,732
1935259,9724,256,5341,807,37729,076,754755,094
1936263,1564,217,1131,802,77330,113,704800,802
1937264,7854,352,1361,784,82031,305,818794,758
1938265,1534,469,1171,743,19032,378,774748,805
1939261,7894,527,9831,723,89331,897,091675,802
1940258,5674,496,0671,719,28931,062,875706,340
1941253,0524,538,9081,759,01831,751,660761,519
1942248,5974,604,7491,756,654*681,016
1943236,4554,447,5481,714,959*604,574
1944225,8234,439,2581,647,92033,200,298573,362
1945217,6894,590,9261,678,94333,974,612593,828
1946216,3354,666,7821,661,944*549,391
1947206,5754,633,8001,657,69032,681,799545,874
1948203,8854,716,2871,713,53232,483,138548,177
1949196,0554,722,8361,746,75332,844,918544,841
1950194,8774,954,9061,850,08933,856,558555,245
1951183,9725,060,0241,898,19734,786,386564,335
1952173,9225,164,6891,905,53435,384,270565,723
1953158,0655,445,9631,962,49236,192,935627,830
1954158,2805,744,8781,999,14038,010,954648,902
1955147,0635,886,7771,994,76139,117,300681,359
1956***40,255,488*

NOTE.—With the exception of sheep, figures from 1931 onwards exclude stock within boroughs.

TRADE

YearExcluding Specie*Specie
ExportsImportsExportsImports
TotalPer Head of Mean PopulationTotalPer Head of Mean Population

* Figures are in terms of New Zealand currency.

† Specie exports and imports represent face value.

‡ Increases mainly due to imports of defence materials and equipment.

§ Provisional.

 ££s.d.££s.d.££
190617,992,480191614,303,1701533102,657908,233
190720,061,6412015016,539,70717227,316763,154
190816,075,2051631017,247,1621775242,289224,122
190919,636,151195214,817,4621410825,845857,257
191022,152,4732151016,748,2231611127,736303,360
191118,980,18517161018,782,6081713148,305763,271
191221,511,6261915120,576,579181711258,955399,995
191322,810,3632071121,653,6321972176,359634,670
191426,253,925230621,144,2271810117,522711,869
191531,430,822277020,658,72017196318,0901,070,114
191633,281,0572819225,045,4032115105,8801,293,880
191731,517,072278820,742,130181170,475177,135
191828,480,5782414124,131,7922018835,610102,215
191953,907,925454030,309,167258362,150362,531
192046,405,366377061,553,85349101136,58041,975
192144,828,460352342,744,1223398367198,321
192242,725,9493214934,826,07426138300186,487
192345,939,7933411943,363,9833213027,37214,510
192452,509,2233816548,527,60335176103,488 
192555,243,0473918152,425,7573717419,22530,650
192645,268,924320649,811,76335486,65177,800
192748,496,3543314044,782,6663125 280
192855,570,381383344,844,10230160618,10042,164
192954,930,063375748,734,4723316649,00063,505
193044,940,517302044,339,65429140175363,087
193134,950,698231826,498,15117100202,33056,155
193235,609,919236524,646,006162101,355,86155,310
193341,005,9192612825,581,36616124296,032424,704
193447,342,8473010331,339,55220402,283,9001,242,000
193546,538,3812915936,317,26723411521,000381,821
193656,751,940360744,258,8862811145,24536,601
193766,713,3794119256,160,69535653,500318,510
193858,376,283366855,422,1893491031,80531,274
193958,049,31635121149,387,18330662,79525,364
194073,741,133450948,997,66929186 36,646
194167,479,413417649,167,0103021110,015205,409
194281,284,6374911653,856,01232161125,375147,010
194371,862,5984318995,242,33058471,240461,800
194477,786,9464619786,397,2125237400159,640
194581,631,276483555,088,180321024,400208,148
1946101,302,2665711671,571,333401364,532418,970
1947129,419,64771195128,640,8267110910,375184,990
1948147,821,02580115128,534,252701255,169624,755
1949147,280,95178139120,033,4726427570,2201,040,725
1950183,752,2919650157,942,87682148514,455169,823
1951248,127,17212781206,533,51510610280,150250,108
1952240,560,704120103229,447,309114181126,94384,567
1953235,860,04711525163,613,300791727,929107,106
1954244,466,2061161311213,155,0371011507,57321,360
1955§258,850,19712100250,660,9961173713,2543,726
1956§275,133,74012612235,424,5431071752,91312,027

NOTE.—As from 1 January 1952 imports were valued at c.d.v. Prior to that date the valuation used was c.d.v. plus 10 per cent.

YearExports of New Zealand Produce
WoolFrozen Meat*Tallow
QuantityValueQuantityValueQuantityValue

* Includes exports of chilled beef.

† Provisional.

 lb.£Cwt.£Cwt.£
1906154,384,5686,765,6552,025,5072,877,031378,400455,026
1907171,635,5957,657,2782,354,8083,420,664414,880560,965
1908162,518,4815,332,7812,120,3033,188,515372,520481,335
1909189,683,7036,305,8882,572,6043,601,093484,160648,452
1910204,368,9578,308,4102,654,1963,850,777520,180756,841
1911169,424,8116,491,7072,250,5653,503,400413,120607,257
1912188,361,7907,105,4832,573,2383,909,569470,900684,739
1913186,533,0368,057,6202,578,6934,449,933454,860663,088
1914220,472,8989,318,1143,229,9695,863,062490,300694,348
1915196,570,11410,387,8753,591,2607,794,395535,260780,828
1916185,506,85912,386,0743,326,0457,271,318449,440785,339
1917178,274,48612,175,3662,446,9455,982,404251,980553,016
1918108,724,5757,527,2662,036,9044,957,576328,420847,618
1919274,246,61319,559,5373,822,6839,628,292937,4802,680,006
1920162,327,17611,863,8274,629,28211,673,696540,8201,748,773
1921158,714,8285,221,4794,322,75411,164,345554,240867,298
1922321,525,56211,882,4633,518,0048,387,461529,900750,574
1923217,566,09110,904,6583,043,9109,012,627504,860785,668
1924206,189,91115,267,5443,213,5749,499,877479,760799,230
1925205,726,85617,739,7363,414,20511,174,567500,760895,061
1926213,154,39911,830,1903,034,3568,656,213422,560741,045
1927220,500,72012,961,7443,364,9659,104,621477,500714,441
1928226,804,54416,679,0983,793,82810,309,662514,960804,271
1929234,955,97815,359,2063,336,2009,883,277416,640693,614
1930197,239,6147,664,3624,036,63910,937,382492,560683,571
1931211,718,8685,515,3764,138,8068,892,555465,280413,080
1932238,179,0625,742,8214,645,4808,436,306507,540462,081
1933286,307,4417,422,2665,203,1139,845,627560,400516,063
1934255,796,78312,516,4254,969,44711,886,955553,240480,354
1935222,661,4037,097,1335,206,51412,768,968505,540630,638
1936314,409,40213,293,7065,119,80413,239,414521,900628,310
1937282,339,14819,070,2405,410,91214,689,616518,800647,969
1938271,283,23312,185,4835,373,30815,092,059592,260524,775
1939277,391,71311,665,9095,906,25115,390,801582,740456,527
1940300,288,68716,875,4636,976,62519,681,343682,760707,721
1941215,743,29612,613,3715,284,84816,595,290786,560818,370
1942307,547,29618,336,5075,741,38917,777,4361,035,5801,143,879
1943206,822,34813,483,5444,412,65713,801,632879,1001,071,232
1944188,599,35912,711,4074,156,05412,482,008532,480608,263
1945166,225,68112,717,0345,653,84317,597,983614,520909,499
1946365,404,46826,596,4706,753,37723,239,620495,1201,063,156
1947375,326,18931,970,0416,955,61529,353,371514,5002,366,742
1948421,021,39944,504,9956,869,91428,623,955401,2602,154,201
1949429,670,91646,553,7616,882,05827,229,783508,6332,531,480
1950393,973,50074,653,0076,761,67728,629,106591,9112,160,842
1951316,863,280128,176,0515,496,02325,393,538593,1582,553,256
1952438,107,60681,998,1417,711,21540,474,955972,3074,716,754
1953391,607,13384,597,9966,533,75139,886,599795,8781,926,685
1954392,900,02088,437,3067,415,83651,905,763777,4382,555,763
1955417,111,19993,779,7877,734,06260,669,753896,4432,884,220
1956422,076,46690,192,8039,333,90663,618,832847,0422,653,659
YearExports of New Zealand Produce
ButterCheeseGold
QuantityValueQuantityValueQuantityValue

* Provisional.

 Cwt.£Cwt.£Oz.£
1906320,2251,560,235131,206341,002563,8432,270,904
1907328,4411,615,345236,833662,355508,2102,027,490
1908229,9711,171,182280,798783,419506,4232,004,925
1909321,1081,639,380400,6071,105,390506,3712,006,900
1910356,5351,811,975451,9151,195,373478,2881,896,328
1911302,3871,576,917439,1741,192,057455,2261,816,782
1912378,1172,088,809577,0701,680,393343,1631,345,131
1913372,2582,061,651611,6631,770,297376,1611,459,499
1914434,0672,338,576863,7762,564,125227,954895,367
1915420,1442,700,625817,2582,730,211422,8251,694,553
1916358,6322,632,293949,4163,514,310292,6201,199,212
1917254,3972,031,551885,7433,949,251218,624903,888
1918431,0233,402,223883,4304,087,27811,98742,391
1919345,8183,080,1281,572,3117,790,990320,2071,334,405
1920312,0093,022,3351,222,0506,160,840212,973883,748
1921898,47811,169,5301,368,7868,199,183149,595612,168
19221,120,2009,041,5541,161,1964,686,850131,848540,182
19231,250,14010,689,2001,441,4606,870,397169,512698,583
19241,269,45511,641,6681,594,4867,023,297133,631551,788
19251,245,32410,240,1321,376,7545,800,808114,696472,364
19261,168,0408,695,1881,461,5485,939,359125,777516,207
19271,455,53910,915,2331,492,7925,582,596130,171534,639
19281,449,57011,302,6671,567,2726,693,951118,722489,584
19291,653,80713,228,0271,779,0937,017,463116,848480,212
19301,884,23711,854,0561,812,9816,438,438133,749550,678
19311,988,56610,649,5271,636,3474,461,293140,970581,032
19322,185,54510,639,0531,790,4314,951,268200,6481,092,288
19332,635,24711,648,6991,982,9424,766,351177,2411,281,612
19342,614,51910,042,7761,984,4964,694,459162,4901,320,690
19352,789,29813,616,7401,727,5524,376,512171,2831,441,790
19362,796,14515,317,5761,658,2065,122,438168,0731,398,656
19372,976,08516,986,4771,647,1605,371,878172,3171,435,216
19382,614,54916,520,2261,610,5235,935,061152,4871,296,839
19392,443,29716,111,2071,677,2575,869,890176,3701,628,526
19402,622,70018,228,0262,033,5068,233,486188,4591,948,280
19412,263,13515,777,8642,366,2359,833,861176,2421,830,365
19422,344,62216,477,9432,687,62111,860,471167,2461,726,540
19431,985,18714,392,7592,009,9479,125,958149,5631,542,793
19442,306,80418,553,4841,554,0597,443,632138,0481,423,556
19452,069,53219,277,7041,748,5149,519,363121,0841,262,884
19462,035,87519,841,4551,514,9178,448,321111,5311,184,783
19472,554,16729,057,9051,740,87911,621,08898,5571,035,406
19482,712,68333,762,7291,512,46811,197,02458,400609,259
19492,953,40635,474,3931,878,75612,674,35963,854607,696
19502,765,33035,873,3741,997,80114,535,757110,4861,310,795
19512,959,27541,489,5992,132,37216,650,13168,929843,792
19523,680,56156,145,1941,825,10515,527,23366,616798,356
19533,182,11351,461,1272,027,20918,373,11429,674364,912
19542,649,61244,806,8991,807,92016,380,36041,484487,662
1955*3,109,77850,829,6921,178,95613,412,66021,889261,239
1956*3,262,67152,150,7081,785,75522,510,72920,450243,652
YearExports of New Zealand Produce
Rabbit SkinsGrass and Clover SeedsMilk and Cream (Dried and Condensed)
QuantityValueQuantityValueQuantityValue

* Provisional.

19065,454,73850,68650,63889,022484,49310,420
19075,513,90053,75736,73887,30081,4111,976
19087,148,62566,52915,39634,88180,0711,619
19097,533,13789,53371,54194,41091,6803,014
19109,103,954132,77354,946113,568235,5905,326
19117,455,28876,71218,43840,317281,5276,898
19128,937,035118,23436,34469,69432,392671
19136,267,60886,75635,58960,49217,184359
19144,512,17148,38839,57273,55147,983791
19156,090,87250,00413,98042,3141,175,10620,388
19165,896,41076,4059,84134,266984,03523,780
19174,944,607105,32116,48448,6354,103,849153,538
19187,854,152299,76515,99542,2157,061,830341,797
191914,340,007775,11849,906249,88610,494,679579,266
192014,363,216830,02423,821147,36913,950,026795,612
192113,922,446448,18037,319156,11418,596,3921,109,331
192215,487,225567,86470,120285,45111,421,332529,650
192314,233,417472,49147,031175,75416,220,997513,495
192420,444,390740,97536,331149,08313,481,253505,098
192519,708,586843,41645,368151,16413,742,627425,738
192617,135,599829,16557,726200,38011,324,780345,072
192712,928,669682,65890,362255,79812,420,494346,271
192812,104,072582,14850,238162,45217,218,653392,452
19299,122,917361,94957,869182,53713,736,098352,587
19307,206,992142,24936,560166,22115,200,835351,339
19316,174,092108,84140,953155,41012,845,394246,483
19326,660,14070,01634,337109,63216,033,175269,121
193310,378,388224,19980,308152,45817,640,072315,964
193413,035,015257,58548,751166,51121,562,450407,708
193513,536,745395,09071,649215,73820,783,080370,890
193616,928,931763,96179,982249,86123,742,354405,801
193712,050,438557,13258,107205,98824,713,648364,676
193810,268,012247,39045,484233,37220,536,678307,603
193911,190,294262,90445,829284,51424,545,704377,506
194010,412,156401,71645,742369,03523,440,047419,176
194113,403,6731,006,23888,191563,67329,641,506699,533
194211,818,761745,74282,499592,68127,585,510683,578
194312,290,284903,24190,720665,11323,190,806598,228
194413,886,065974,909158,4751,453,09018,429,814534,716
194517,670,0781,204,791166,5531,797,82733,835,4301,021,128
194615,755,9391,451,301150,5981,942,07238,069,5431,202,323
194716,654,4961,120,219147,0111,663,36544,757,8941,651,396
194813,471,098754,651174,8431,700,64459,448,6652,209,805
194910,269,104318,589161,9931,523,42677,033,4262,866,116
19509,918,514346,865164,1142,083,63091,015,2513,321,883
19515,745,460203,23288,4281,246,014104,637,8833,952,028
19522,839,34263,360163,4522,106,627140,519,6626,563,941
19532,626,46284,504179,2671,869,676141,098,0676,277,745
1954768,53310,259184,2532,802,421101,299,3414,091,835
1955*662,2389,64679,3541,349,133115,048,4163,664,808
1956*95,5191,784145,4181,587,024116,207,7284,383,422
YearExports of New Zealand Produce
Cattle Hides and Calf SkinsSheep Skins
Cattle HidesCalf SkinsAggregate ValueWith WoolWithout WoolAggregate Value

* Not available.

† Provisional.

 NumberNumber£NumberNumber£
1906***716,0115,835,217680,632
1907***830,1306,186,614796,127
1908***718,4285,603,688518,696
1909***1,096,0806,419,334684,271
1910***983,4926,827,094741,259
1911***901,0886,718,907633,523
1912***920,3017,000,671707,203
1913***933,1527,238,123800,354
1914214,483182,128408,307918,5627,607,049856,832
1915269,656234,164571,861499,0648,594,786826,507
1916296,551206,024672,182397,8957,937,675917,633
1917176,74750,902453,9372,6866,525,3671,300,188
1918206,919106,238530,431 8,741,5381,813,589
1919318,641106,807963,554 8,501,7561,694,867
1920284,666251,2571,125,811 9,221,5523,060,212
1921329,032440,712569,16385,5128,350,886972,116
1922239,930464,563504,334645,0029,499,851980,189
1923339,503609,155746,477706,0137,540,7871,121,695
1924469,588706,847832,009689,4018,136,2651,513,477
1925495,535702,029940,140471,1278,224,1851,989,289
1926449,103751,448755,537706,6998,525,1941,544,273
1927397,792774,141922,825972,5308,945,9231,550,812
1928431,609769,5381,228,1051,364,7828,817,2671,924,097
1929290,804667,915677,9251,072,0178,559,7391,812,093
1930290,964656,802510,6831,542,0259,477,5611,516,738
1931308,843652,747337,2961,665,81110,419,882805,838
1932304,053845,707306,0531,641,20211,999,210694,217
1933401,327890,687544,3853,380,11411,813,6851,043,208
1934476,2351,109,999627,3712,949,9719,243,7261,250,091
1935521,7451,266,258685,8732,405,25111,765,2931,275,464
1936430,9421,177,847761,5111,780,33210,847,2491,703,130
1937506,4601,162,9521,031,0761,743,98210,759,0592,246,015
1938516,4521,246,993742,8061,824,02612,353,5661,369,324
1939528,1571,103,182781,1231,932,67213,223,8641,460,072
1940519,5101,032,165860,0621,798,80111,340,1281,931,957
1941384,8851,015,5931,003,051769,58017,744,0522,007,376
1942356,767931,0581,064,6251,013,28514,590,4482,806,723
1943417,608943,5221,129,174776,57914,000,0462,264,080
1944304,848888,250899,560815,27014,425,4202,386,648
1945329,089795,1841,040,448904,95214,323,7852,402,250
1946392,322659,6451,479,882784,41014,694,2922,490,673
1947472,972757,1862,917,0941,415,78915,624,3496,014,194
1948475,917665,5222,886,596868,57016,288,7285,657,920
1949327,7661,121,6572,339,561795,49216,620,0813,855,629
1950363,319870,4022,601,175670,45916,790,7036,736,162
1951335,966977,4772,991,798719,09713,985,5529,033,299
1952533,3421,577,7123,258,0081,099,80218,992,3216,415,907
1953399,954961,3742,402,0851,254,42717,032,2087,934,093
1954502,6751,129,3662,583,7241,067,72017,831,0277,659,441
1955635,5721,281,6642,814,7021,088,47819,731,7226,208,702
1956825,6921,054,8212,895,5241,028,05019,407,9847,249,134

PRODUCTION

SeasonWool ProductionButterfat ProductionTimber ProductionMeat Production
Total Production (Greasy Basis)Average Price Per Pound (Greasy Wool)Total ProductionYield Per Cow in MilkAverage Payout Per Pound

* Provisional.

 lb.(m).d.lb.(m).lb.d.Bd. ft.(m).Ton(000)
1914–1522911112    
1915–162291512018016.5309 
1916–1723115127186   
1917–1823915121170   
1918–1924115124170   
1919–202291513617421.0301 
1920–21217715517428.0308 
1921–22210819919614.5315 
1922–2320910.8522620117.0304 
1923–2421615.7822919315.5317 
1924–2522320.2124120217.0344 
1925–2622811.9323419818.0353 
1926–2724112.7025921915.5306 
1927–28252.516.6726421318.0270 
1928–29262.714.8828922418.5270 
1929–30261.78.5531422616.0282 
1930–31258.65.6732221511.5229 
1931–32269.55.2634021511.0154 
1932–33277.15.153972309.0166 
1933–34289.611.074272359.0198 
1934–35265.06.544102249.5244 
1935–36304.39.1343724012.5293 
1936–37302.915.7145825413.7306 
1937–38296.810.0443524715.2323 
1938–39327.79.1740022916.5317 
1939–40310.012.8543124716.7336 
1940–41331.512.8746626216.7342 
1941–42345.012.8843724616.8324 
1942–43340.014.5840723417.1342 
1943–44330.014.6038723218.2351 
1944–45372.014.6143225420.3340 
1945–46365.014.5137322121.2345541
1946–47367.017.8340824323.7354560
1947–48362.025.1141824126.6431549
1948–49367.025.8145725927.8470556
1949–50390.037.9847125229.2478577
1950–51390.087.8449726031.0528530
1951–52407.040.1950526334.6575602
1952–53418.046.1953927337.2575578
1953–54426.050.2550125038.9574589
1954–55455.049.6750925438.2616637
1955–56462.046.1953326637.0626671
1956–57488.0*54.73*   597 

FACTORY PRODUCTION

YearNumber of EstablishmentsPersons EngagedSalaries and Wages PaidCost of MaterialsOther ExpensesValue of OutputAdded Value

* Productive employees.

† Not available.

‡ Estimated on basis of sample survey.

 £££££
1910–113,48345,924*4,786,698*18,782,92929,317,02310,534,094
1915–163,75548,744*5,791,704*30,197,78443,034,03312,836,249
1918–193,47858,1378,501,31038,803,19155,310,86416,507,673
1919–203,66164,10710,512,10045,107,56866,169,25321,061,685
1920–214,02269,68113,172,99652,933,49477,828,01324,894,519
1921–224,16967,48412,996,07739,274,11265,672,25926,398,147
1922–234,32570,70513,075,49444,340,46772,343,03228,002,565
1923–244,45174,51013,851,89046,253,40375,433,60629,180,203
1924–254,53877,18314,945,97551,337,11582,479,37831,142,263
1925–264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
1926–275,07878,61316,255,17749,344,4428,646,77980,334,60130,990,159
1927–285,15678,62016,053,21054,558,1678,792,72185,059,79930,501,632
1928–295,12680,61816,291,21259,136,5529,330,05190,478,23231,341,680
1929–305,16882,86116,846,28658,484,2459,954,86190,757,98132,273,736
1930–315,19477,91415,617,05248,458,3569,388,62677,745,24929,286,893
1931–324,96968,69712,642,93542,472,6008,263,06566,588,74424,116,144
1932–334,99368,92112,048,14842,726,0438,097,04266,109,45523,383,412
1933–345,02872,65112,106,50047,067,5648,108,89071,770,87224,703,308
1934–355,27079,35813,244,37352,277,2858,809,91279,324,47327,047,188
1935–365,53686,58814,844,36760,172,8489,374,36990,014,74829,841,900
1936–375,72896,40118,333,07770,938,16510,481,253105,941,72235,003,557
1937–385,924102,34420,981,58775,371,55810,540,208113,691,55638,319,998
1938–396,146102,53522,270,01075,634,90310,001,804114,447,42638,812,523
1939–406,342108,72224,460,54985,243,38311,043,557129,061,82643,818,443
1940–416,395113,99926,946,79998,547,80411,978,820147,153,55948,605,755
1941–426,367117,21429,504,299102,260,86012,812,901155,566,19553,305,335
1942–436,127114,59032,256,071107,447,79913,331,973165,936,28458,488,485
1943–446,202117,86434,433,075112,883,93214,516,235,686,68962,802,757
1944–456,485122,41437,379,062122,695,10615,481,351189,800,76467,105,658
1945–466,991128,20841,499,113123,508,43816,278,562195,258,61471,750,176
1946–477,642134,43545,336,217138,533,72218,247,043218,106,18279,572,460
1947–487,966140,26752,132,689181,773,21821,240,976272,155,33390,382,115
1948–498,000142,50056,000,000203,000,00023,350,000301,000,00098,000,000
1949–508,027144,30961,316,840221,228,64726,334,762331,703,908110,475,261
1950–518,318148,94070,386,677274,165,77730,528,205395,045,818120,880,041

NEW SERIES

COMMENCED 1951–52 WITH COMPARABLE TOTALSFOR CERTAIN PREVIOUS YEARS
1938–396,00293,63819,926,91571,173,3149,315,674106,607,91935,434,605
1941–426,225108,27526,812,79396,481,96512,047,029145,608,16649,126,201
1944–456,340113,53434,196,853116,476,19714,556,029178,585,78362,109,586
1947–487,822130,50447,940,238174,845,30120,076,507259,181,23284,335,931
1949–507,815133,24556,231,281215,008,89924,139,996317,342,946102,334,047
1950–518,113138,43565,005,458266,884,56628,867,078380,200,428113,315,862
1951–528,547144,37075,038,793290,682,89132,027,622431,038,354140,355,463
1952–538,512143,18078,490,492318,945,33635,359,704464,064,555145,119,219
1953–548,377146,42686,579,123332,858,17740,392,917495,376,770162,518,593
1954–558,366153,55898,362,829365,373,46847,943,230550,790,555185,417,087
1955–568,515158,148107,870,738382,866,55756,540,803584,035,667201,169,110

REVENUEAND EXPENDITUREOF GENERAL GOVERNMENT £

Year Ended 31 MarchConsolidated Fund*
ReceiptsPaymentsDeficitSurplus
From TaxationFrom Other SourcesTotal

NOTE.—Reference to Section 30A will indicate that the figures shown in the above table are by no means on a comparable basis over the period. The figures from 1937–38 onwards have been adjusted to bring them into line with present practice.

* See p. 785 for coverage of Consolidated Fund.

† Excludes £20,000,000 loan portions of payment to Reserve Bank for liability due to alteration in the exchange rate as from 20 August 1948.

19074,264,5554,214,4028,478,9577,774,926 704,031
19084,645,7544,418,2359,063,9898,213,965 850,024
19094,377,7614,624,2249,001,9858,785,513 216,472
19104,180,5165,058,4019,238,9178,990,922 247,995
19114,837,3225,459,95110,297,2739,343,106 954,167
19125,296,5905,764,57111,061,16110,340,368 720,793
19135,606,8296,127,44211,734,27111,082,038 652,233
19145,918,0346,311,62712,229,66111,825,864 403,797
19155,881,9056,570,04012,451,94512,379,803 72,142
19167,266,9667,243,17114,510,13712,493,107 2,017,030
191710,549,6547,817,89318,367,54714,058,770 4,308,777
191812,340,8537,865,36920,206,22215,120,288 5,085,934
191913,801,6438,550,72922,352,37218,673,599 3,678,773
192016,256,5279,824,81326,081,34023,781,924 2,299,416
192122,184,41512,076,54734,260,96228,128,730 6,132,232
192216,370,51611,756,49128,127,00728,466,838339,831 
192315,594,28811,985,15527,579,44326,263,760 1,315,683
192416,416,87111,543,50027,960,37126,148,005 1,812,366
192516,554,66412,088,33628,643,00027,399,200 1,243,800
192616,978,4967,747,26624,725,76223,570,083 1,155,679
192716,899,5568,043,55124,943,10724,355,965 587,142
192816,848,7548,275,22625,123,98024,944,905 179,075
192917,835,1225,764,55423,599,67624,176,928577,252 
193019,474,0915,875,77025,349,86125,200,882 148,979
193118,597,4564,471,47523,068,93124,708,0421,639,111 
193216,188,1716,531,56222,719,73324,860,5522,140,819 
193315,604,0416,964,48022,568,52122,528,379 40,142
193417,059,8296,432,92023,492,74924,202,027709,278 
193520,177,6075,948,48726,126,09424,499,595 1,626,499
193621,556,4154,615,95326,172,36825,890,568 281,800
193726,940,8454,206,34231,147,18730,675,158 472,029
193831,664,43013,145,17644,809,60643,998,784 810,822
193932,305,77211,392,86343,698,63542,889,267 809,368
194032,810,59914,108,89246,919,49146,600,152 319,339
194134,873,73216,106,84550,980,57749,254,153 1,726,424
194235,161,94619,390,75554,552,70152,880,239 1,672,462
194336,195,86518,880,09555,075,96050,921,382 4,154,578
194442,017,61915,543,79057,561,40955,328,829 2,232,580
194545,689,39614,239,47659,928,87258,714,153 1,214,719
194648,370,71815,542,93163,913,64962,659,499 1,254,150
194790,715,39317,579,080108,294,473103,683,455 4,611,018
194896,099,15321,016,962117,116,115115,330,403 1,785,712
1949101,061,73920,462,176121,523,915118,893,154 2,630,761
1950103,853,46521,143,169124,996,634120,688,892 4,307,742
1951122,180,53821,576,277143,756,815135,503,598 8,253,217
1952156,936,93923,851,463180,788,402168,152,681 12,635,721
1953154,262,34523,559,753177,822,098174,515,055 3,307,043
1954156,195,53526,123,760182,319,295180,516,315 1,802,980
1955162,508,54428,707,697191,216,241184,376,325 6,839,916
1956167,418,99530,014,305197,433,300193,282,129 4,151,171
1957172,794,73033,481,600206,276,330202,950,630 3,325,700

INDEBTEDNESS OF GENERAL GOVERNMENT—AMOUNT OF DEBENTURES AND STOCK IN CIRCULATION (Nominal Amounts)

As at 31 MarchDomiciled inTotalPer Head of Population
LondonAustraliaNew Zealand

NOTE.—The figures for 1932 and later years exclude £26,191,000 contingent liability in respect of which interest payments have been suspended by agreement with the United Kingdom Government since 1931.

 £(000)£(000)£(000)£(000)£s.
190751,8583,0889,50364,1796615
190851,1593,55511,74166,454679
190954,6313,87012,43870,9396916
191057,7344,11413,04374,891727
191162,2224,21414,64281,0787615
191264,0054,21416,13584,354780
191368,9294,21416,91790,061810
191478,6244,28716,81999,7308710
191576,4103,97919,671100,060870
191681,4653,52124,652109,637956
191783,8783,38642,573129,83611216
191888,7083,38658,747150,84013013
191995,7083,38676,982176,0761498
192095,7083,386102,077201,17116213
192199,6921,655104,977206,32416216
1922105,9192,287110,848219,0541687
1923110,6682,159106,126218,9531654
1924114,8772,017104,633221,6161648
1925120,8182,952104,044227,8151653
1926128,0483,643107,165238,8551698
1927132,5134,042109,296245,85117019
1928139,7574,169107,470251,39617218
1929149,3464,168110,677264,19217912
1930146,5814,277116,526267,38317911
1931154,5474,175117,311276,03318212
1932133,4513,915118,386255,75216713
1933135,2102,869118,354256,43216615
1934134,7172,908138,976276,6011789
1935134,7812,184117,425254,39016219
1936132,5211,593122,257256,37016218
1937130,546892130,041261,47916415
1938130,666883132,462264,01016411
1939130,662880146,238277,77917019
1940131,672880164,165296,71618017
1941132,180880190,176323,23619711
1942127,564862230,780359,20721916
1943132,083862304,689437,63426716
1944132,917862366,747500,5263049
1945133,091861403,274537,22731916
194694,529861472,750568,1403238
194794,529861482,990578,3803234
194883,188779494,112578,0783165
194979,962628534,395614,98632917
195078,140628565,112643,8803387
195177,808 589,425667,2333446
195277,808 575,855653,6623297
195377,790 589,898667,68832714
195487,790 616,581704,3713378
195597,789 630,804728,59334118
195695,804 639,397735,20133719

LOCAL AUTHORITIES*

Year Ended 31 MarchReceiptsPaymentsTotal Gross Indebtedness
RevenueOther ReceiptsTotal
From RatesFrom Other Sources

† Debt shown at its nominal amount, that portion domiciled overseas not being converted to its New Zealand currency equivalent. In terms of New Zealand currency, gross debt at 31 March 1955 amounted to £(N.Z.)79,259,407.

‡ Provisional.

* Exclusive of Hospital Boards.

19061,151,2191,392,1481,326,5973,869,9643,601,50612,873,165
19071,233,0491,579,3911,227,4734,039,9133,897,51513,903,153
19081,356,2571,750,6651,410,9944,517,9164,491,11314,931,351
19091,390,6981,934,1221,440,7464,765,5664,800,71115,920,757
19101,526,3171,934,0342,362,1715,822,5224,898,48217,809,917
19111,592,6012,171,7251,776,9585,541,2845,360,26119,104,571
19121,677,8772,298,9342,425,2586,402,0696,074,37220,763,486
19131,799,2992,531,6862,383,1236,714,1086,537,76922,183,427
19142,005,6382,719,1122,411,5757,136,3256,796,31423,773,429
19152,140,0862,861,2972,595,7067,597,0896,806,56724,538,721
19162,355,1552,967,6452,469,2757,792,0756,920,73626,045,312
19172,534,5393,243,9421,411,4227,189,9036,758,59326,799,586
19182,674,5413,283,7491,250,0477,208,3377,103,07327,653,681
19192,939,6063,452,071942,7807,334,4577,320,27728,074,950
19203,144,2134,486,5823,329,00310,959,79810,883,58630,187,942
19213,549,5905,336,3743,429,66212,315,62612,761,69032,104,957
19223,779,8956,074,7825,486,91215,341,58915,091,87536,745,089
19234,277,7816,243,9517,399,67417,921,40615,695,50743,191,184
19244,445,6276,704,1445,685,10716,834,87816,520,95046,537,833
19254,668,8847,512,0807,613,39919,794,36319,422,83353,353,466
19265,039,6458,333,9217,505,70220,879,26820,915,64559,419,754
19275,311,2608,954,6856,680,17620,946,12121,747,55764,012,247
19285,615,6729,786,2715,667,65121,069,59422,423,16766,404,172
19295,844,4959,583,5766,042,00721,470,07821,300,02469,294,619
19306,010,98710,746,7315,495,42722,253,14522,061,08871,207,539
19315,637,25410,627,3914,432,95620,697,60122,174,52472,686,036
19325,511,8189,682,2514,374,25119,568,32020,087,38172,402,282
19335,237,6888,913,2854,433,29418,584,26718,885,17372,476,056
19345,541,2558,688,4123,821,77918,051,44617,737,79271,969,387
19355,511,4429,167,2873,943,48818,622,21718,744,89171,245,458
19365,585,8559,552,5484,348,53419,486,93719,337,24270,400,176
19375,994,3539,979,4374,252,80320,226,59320,222,71568,559,750
19386,541,35411,005,2934,389,62021,936,26722,051,14768,060,951
19396,971,55011,750,6266,254,79224,976,96825,078,93568,206,674
19407,289,24012,669,5286,772,32726,731,09525,709,19569,486,970
19417,344,05513,144,2164,651,63325,139,90424,726,62867,974,687
19427,441,70413,399,3653,175,46724,016,53624,072,09266,645,990
19437,764,67714,082,8222,640,25224,487,75123,228,43465,131,074
19447,823,73015,144,7442,053,62925,022,10323,801,19763,262,828
19457,895,87115,472,5272,086,27525,454,67325,223,64361,237,937
19468,633,32915,843,8012,743,83727,220,96727,354,63360,025,864
19479,541,13317,018,8473,737,37130,297,35130,479,17457,768,259
19489,806,85917,824,0644,408,01432,038,93732,457,32657,117,475
194910,797,08419,756,7965,458,23236,012,11235,812,47356,605,024
195011,644,74821,079,1817,366,69340,090,62239,664,25456,302,066
195112,577,01722,626,0157,461,07142,664,10343,242,42756,086,596
195214,513,76625,154,8939,543,03549,211,69448,846,24657,869,169
195315,354,00428,716,67714,614,67058,685,35158,337,34264,427,185
195416,421,12733,522,24919,306,55569,249,93168,289,09073,445,570
195518,258,49239,054,93517,281,90774,595,33473,979,44879,320,054
1956     87,965,035
LOCAL AUTHORITIES*—LOAN INDEBTEDNESS (Exclusive of Inscribed Debt) £
As at 31 MarchCountiesBoroughsHarbour BoardsElectric Power DistrictsOtherTotal
190615,2285,314,1734,554,151 834,49910,718,051
190731,6785,920,3054,676,551 987,51411,616,048
190837,1386,540,0714,877,676 1,077,44912,532,334
190956,5347,016,9265,052,845 1,177,31713,303,622
191076,8777,687,2095,788,400 1,385,19914,937,685
1911185,6318,399,3276,002,400 1,544,41816,131,776
1912404,0789,148,7716,271,717 1,952,92217,777,488
1913605,3539,981,9746,431,827 2,175,97519,195,129
1914800,51511,061,3436,696,029 2,373,39220,931,279
19151,025,60111,352,8026,990,573 2,389,25321,758,229
19161,162,17012,364,0567,135,895 2,655,01723,317,138
19171,260,30712,918,9907,271,594 2,658,28324,109,174
19181,476,41213,461,9197,387,125 2,697,98125,023,437
19191,653,61913,679,6587,417,488 2,769,78425,520,549
19202,032,96015,295,9587,495,641 2,892,19227,716,751
19212,525,84516,041,3687,650,479147,7503,313,89229,679,334
19223,006,58218,060,3228,250,2721,480,0003,566,12334,363,299
19233,803,33421,596,4658,588,9783,052,3003,808,44040,849,517
19243,997,00922,075,0039,173,4844,740,8654,237,16844,223,529
19254,616,68825,882,8659,750,6606,514,7574,315,89851,080,868
19265,390,00328,025,7009,993,2598,745,7555,025,42057,180,137
19275,992,37530,044,39410,257,78110,113,4005,414,67061,822,620
19286,205,46831,599,32410,476,88310,175,3645,817,39064,274,429
19296,350,94232,244,48110,774,13911,986,7075,860,26267,216,531
19306,533,32231,521,14910,460,69212,636,3518,028,55569,180,069
19316,641,05732,139,38910,509,20713,011,5298,415,82770,717,009
19326,685,90531,683,23810,549,49313,121,9608,437,12170,477,717
19336,614,05631,791,67510,620,44213,031,9308,550,25170,608,354
19346,557,84931,358,64710,496,53313,213,0798,522,06970,148,177
19356,402,88930,992,12910,524,78813,399,0538,185,80069,504,659
19366,228,61430,773,34210,218,67213,484,9888,040,46368,746,079
19376,124,76630,505,61210,152,12812,026,6878,141,18566,950,378
19386,082,79430,542,4319,894,11511,890,0318,077,64266,487,013
19396,106,54430,600,6549,746,94012,471,3157,752,76266,678,215
19406,184,12730,768,9939,960,63913,114,6887,977,87268,006,319
19416,154,29330,024,4759,927,57813,106,7747,331,18766,544,307
19426,101,05929,647,1559,796,64712,499,0467,288,87865,332,785
19435,873,13828,852,6489,790,65912,376,5587,076,09363,969,096
19445,632,53428,212,1599,700,96211,828,5086,933,58062,307,743
19455,386,09127,567,4559,496,76311,535,5226,428,80760,414,638
19465,195,74627,230,7739,365,14911,190,5866,360,07859,342,332
19474,957,17126,713,1548,406,37810,841,8136,253,31657,171,832
19484,762,96526,479,0068,234,16311,093,7226,042,98956,612,845
19494,630,63625,924,9258,046,46111,579,5135,999,98156,181,516
19504,466,33126,075,2347,785,29811,996,8325,719,06756,042,762
19514,316,31426,236,0877,381,72212,461,5125,602,45355,998,088
19524,276,33127,158,4887,496,23113,003,5045,918,66457,853,218
19534,322,60229,739,0568,886,36114,421,8567,052,48064,422,355
19544,312,59734,005,16610,362,12015,969,8298,794,83273,444,544
19554,578,52836,696,20810,811,66417,213,36310,020,29179,320,054

* Exclusive of Hospital Boards.

† Debt shown at its nominal amount, that portion domiciled overseas not being converted to its New Zealand currency equivalent.

TRADING BANKS—ASSETS AND LIABILITIES: NET NOTE CIRCULATION (Average of Four Quarters up to 1929, thereafter Weekly Averages)

£

YearTrading Banks—AssetsTrading Banks—LiabilitiesNotes in Circulation*
AdvancesCoin and Bullion*Total (All Assets)DepositsTotal (All Liabilities)

* Gold coin and bullion, and note-issue functions, taken over by Reserve Bank (August 1934). The Reserve Bank assumed liability for the outstanding notes of the trading banks as from 1 August 1936.

† As at last balance day in December from 1934 onwards.

190616,649,3294,593,95423,829,93322,422,24324,143,0081,574,254
190718,514,0454,836,71826,584,23923,517,11125,334,3481,644,645
190821,172,8084,840,94229,098,56721,821,75323,611,9031,615,109
190919,078,0324,947,09626,937,26521,996,62123,728,3261,577,558
191018,439,9995,035,76426,398,92724,968,76126,742,0811,626,094
191121,259,7275,195,33329,433,61426,765,12228,625,8031,677,842
191222,907,6565,338,29531,196,40025,622,08327,508,3481,714,667
191322,902,2985,204,26630,708,93225,733,18727,591,0991,674,333
191424,250,2465,712,75132,502,31227,640,50729,808,3491,998,388
191523,638,9706,781,00633,209,48331,433,65334,448,2702,846,275
191624,911,7067,393,91737,015,48637,507,91741,977,6194,049,529
191728,847,7498,072,27944,979,61542,930,71348,541,9615,410,957
191831,711,3508,085,96148,570,12645,562,93952,048,7326,266,768
191931,717,7208,017,15948,615,20950,489,44457,861,3937,087,545
192038,241,9327,728,94256,111,43359,405,34167,818,4697,890,418
192150,607,5417,660,53268,701,28249,397,41158,808,4397,569,319
192244,768,1787,822,56261,779,57045,913,39453,868,8347,019,220
192343,322,2427,900,59459,641,23549,039,48256,204,2926,593,068
192444,537,1617,816,14561,325,86549,502,49957,131,2356,587,546
192545,298,9557,722,91762,128,80852,207,20260,219,6976,775,470
192649,149,2607,797,31965,765,29750,135,11458,008,1616,730,421
192750,032,2037,874,97166,626,67648,294,09656,321,3976,510,018
192846,179,4637,511,83362,819,48553,799,22161,850,5956,374,043
192949,378,0817,048,45665,475,52957,636,20265,232,8666,360,570
193053,657,3616,798,55569,748,07156,424,97963,984,4196,187,133
193152,419,5236,924,10568,557,12053,645,01761,463,0345,733,595
193250,255,7415,957,93369,015,20952,851,82360,649,2085,916,839
193345,705,0475,105,84969,656,70057,620,23965,281,3756,162,905
193441,409,6843,423,18873,509,17763,381,61169,259,2716,285,605
193544,699,629767,88183,008,62661,453,31465,981,4116,419,928
193645,918,432720,31783,865,50165,153,97265,939,6497,500,362
193749,199,592742,50085,822,90266,842,69267,842,2408,921,024
193855,650,064875,82585,072,32965,038,69066,820,7369,989,336
193954,745,801746,80196,108,63767,279,45175,978,46012,013,852
194047,954,499717,662101,496,18377,364,43082,032,69614,790,714
194149,746,397761,914105,291,60480,720,10184,073,58517,434,751
194245,439,520686,902118,948,66990,880,339100,768,35521,496,700
194343,249,581643,614132,698,632106,323,897114,628,31627,636,150
194446,773,498713,076140,938,803117,568,290122,214,22432,101,972
194551,766,198683,795164,498,691130,137,939142,594,98834,983,041
194658,270,843727,125179,027,829149,777,364160,503,84138,198,343
194776,475,74906,335191,991,738164,169,520177,593,48840,127,082
194888,159,7641,393,196193,458,134175,668,670190,538,28640,796,344
194983,357,0421,501,540208,278,008186,092,099208,920,06942,535,030
195094,715,1171,687,717225,348,566202,200,423233,969,02245,227,947
1951132,916,9451,531,922270,300,864250,722,652275,255,99948,970,195
1952169,841,4861,471,298268,151,473252,967,759255,082,76350,978,408
1953136,827,1081,540,103291,294,841265,269,411281,557,37553,387,145
1954156,972,8231,454,710301,633,467281,750,319305,827,08257,672,848
1955182,928,5411,383,469300,303,387279,855,391299,528,76859,457,510
1956170,648,3961,338,479287,681,405268,734,439284,367,56759,987,304

POST OFFICE SAVINGS-BANK

£

YearNumber of Depositors at End of YearTotal Amount of Deposits During YearTotal Amount of Withdrawals During YearExcess of Deposits Over WithdrawalsInterest Credited to DepositorsTotal Amount to Credit of Depositors at End of Year

* Fifteen months, 1 January 1920 to 31 March 1921.

† Excess of withdrawals over deposits.

‡ Does not include £11,447,754 from war gratuity accounts transferred to Post Office Savings-bank as from 31 March 1949 and transactions in respect of which are shown in next line in italics.

1906298,7467,907,1556,907,1041,000,051291,1929,953,266
1907319,7739,351,6648,125,1231,226,541343,42411,523,231
1908342,0779,674,0759,417,820256,255379,80812,159,294
1909359,7149,611,1209,499,320111,800395,80412,666,898
1910380,58510,708,9399,695,5151,013,424424,66814,104,990
1911405,56611,627,36810,662,046965,322472,87515,543,187
1912432,19911,725,18311,449,711275,472511,59916,330,257
1913458,59411,286,70211,041,454245,248555,90817,131,414
1914483,26211,904,32310,603,0181,301,305615,31019,048,029
1915509,08513,706,05711,294,9732,411,084707,25222,166,365
1916538,07215,576,40812,957,4202,618,988817,85625,603,209
1917566,35117,106,52914,461,1692,645,360947,82129,196,390
1918590,20518,101,10514,938,8423,162,2631,059,47233,418,125
1919630,78329,758,44725,962,3773,796,0701,178,93538,393,130
1920–21*664,81944,302,85241,162,4863,140,3661,818,53543,352,031
1921–22678,93029,125,99730,236,231-1,110,2341,599,90743,841,704
1922–23690,79026,682,42727,769,263-1,086,8361,605,52544,360,393
1923–24710,15729,598,37229,510,32188,0511,649,97646,098,421
1924–25735,14829,582,89730,413,609- 830,7121,680,92046,948,628
1925–26758,15531,833,62232,602,506- 768,8841,731,57847,911,322
1926–27783,82729,456,38330,149,629- 693,2461,767,42648,985,502
1927–28804,72527,611,06630,584,998-2,973,9321,747,15647,758,726
1928–29828,29627,252,38128,111,940- 859,5591,745,05048,644,217
1929–30852,75728,561,85429,575,994-1,014,1401,806,41449,436,491
1930–31878,04324,531,56928,063,338-3,531,7691,763,82547,668,547
1931–32877,09019,463,98525,488,081-6,024,0961,611,04843,255,499
1932–33797,09716,933,17619,635,928-2,702,7521,475,87442,028,621
1933–34798,26219,428,85317,818,1721,610,6811,231,08944,870,391
1934–35817,61724,179,53720,946,5623,232,9751,320,34849,423,714
1935–36840,67125,619,77523,533,5962,086,1791,406,45952,916,352
1936–37880,85730,676,96927,042,0033,634,9661,514,22058,065,538
1937–38920,80533,041,08229,629,0743,412,0081,669,38463,146,930
1938–39946,82230,434,29134,597,708-4,163,4171,726,57460,710,087
1939–40960,56525,151,28729,462,838-4,311,5511,603,46758,002,003
1940–41992,79228,607,22125,319,1463,288,0751,666,71062,956,788
1941–421,039,78332,044,73425,376,7456,667,9891,820,60571,445,382
1942–431,086,99638,097,07026,889,33911,207,7311,816,82084,469,933
1943–441,128,93647,648,75435,580,16512,068,5892,075,67698,614,198
1944–451,161,88654,585,12042,158,65612,426,4642,451,628113,492,290
1945–461,203,18167,861,04255,626,41912,234,6232,787,413128,514,326
1946–471,239,94872,380,54362,747,0939,633,4503,094,491141,242,267
1947–481,277,26572,553,41468,660,4583,892,9563,307,081148,442,304
1948–491,311,29270,690,64067,722,7242,967,9163,438,790154,849,010
1949–50 11,447,7543,792,8467,654,908 170,982,452
1,372,67277,963,43073,306,1814,657,2493,821,285
1950–511,407,24186,395,33185,190,0071,205,3243,915,006176,102,782
1951–521,450,30998,205,64393,748,8184,456,8254,079,606184,639,213
1952–531,485,85299,125,77496,699,5592,426,2154,208,308191,273,736
1953–541,520,988109,340,23999,134,78310,205,4564,442,620205,921,812
1954–551,554,549117,880,901112,842,4865,038,4154,710,920215,671,147
1955–561,585,422118,311,757118,656,799- 345,0424,854,297220,180,402
1956–571,650,331131,443,890121,319,48910,124,4016,300,857236,605,660

POSTAL

YearLetters, Cards, etc., Posted and DeliveredTotal Mail Matter (Including Parcels) Posted and DeliveredMoney-orders IssuedPostal Notes IssuedPostal Revenue*
NumberAmountNumberAmount

* Year ended 31 March following from 1946.

† Counted once only in early years and from 1941.

‡ Not available.

§ Increase largely accounted for by withdrawals from savings-bank accounts for payment at sub-post-offices being paid by Savings-bank money orders as from 31 March 1946.

 £ ££
190571,116,261122,493,568417,4411,541,712875,324270,300410,967
190679,084,566132,936,185439,0201,686,231981,642307,323438,729
1907159,680,654255,279,486441,4871,773,5911,092,631340,436478,388
1908175,440,111281,699,027488,0842,050,6841,222,280383,472544,642
1909186,926,337295,886,182538,7402,307,5931,414,752441,099566,990
1910196,768,968310,236,516569,6572,457,5231,666,959517,315603,150
1911205,450,627323,663,638607,7642,759,3931,821,566566,650613,252
1912214,184,119333,620,976666,4253,231,3501,970,643627,443644,637
1913223,961,200338,400,371690,7453,357,7742,238,842711,518695,136
1914233,901,320359,031,400691,5183,427,5052,314,327714,683698,898
1915242,547,859356,519,892664,8603,471,8182,370,079712,753858,583
1916242,121,361347,016,697669,3553,607,0872,286,463685,708964,793
1917245,796,945344,962,697642,6833,476,6452,166,597628,920976,027
1918242,527,369333,826,886638,5003,649,3712,091,051610,591983,585
1919247,143,183340,448,228690,2914,604,0592,197,520646,4111,068,489
1920259,743,234360,747,489699,6745,276,7762,280,219691,2011,352,677
1921253,767,131359,096,963669,3834,850,8202,377,622723,2541,499,304
1922239,997,081356,188,284659,9434,278,5292,434,506730,2321,378,421
1923252,021,959383,196,807684,9794,390,1592,652,777786,1461,146,588
1924272,311,925426,907,636731,5114,692,9292,846,333840,5591,257,942
1925294,630,760471,503,757766,6894,977,2303,040,722902,1191,320,277
1926298,617,089486,381,016793,1105,033,1273,329,638965,2701,400,886
1927297,478,294496,553,440803,5354,995,0903,614,2171,015,2131,439,587
1928298,548,364517,749,720807,8854,977,5223,575,9841,057,6241,426,936
1929309,162,103532,070,649835,3585,187,5533,816,6351,123,4461,498,684
1930313,148,058542,003,413833,5055,069,6293,907,2881,128,8071,582,550
1931263,633,952465,484,009714,4783,993,0352,884,654952,4441,744,553
1932246,395,130436,615,397648,9513,335,5522,686,648958,3731,393,655
1933261,979,312461,132,572635,6743,112,7292,883,0701,061,9461,294,757
1934275,063,943486,830,600654,6213,209,7133,325,5611,140,6951,384,265
1935288,645,484526,126,679673,0573,374,0293,827,4171,293,9551,466,857
1936292,098,761534,097,248733,9663,794,6483,833,2881,378,3871,628,868
1937302,170,027547,687,799784,4954,312,6293,746,5601,454,7931,822,308
1938316,309,341608,682,253848,0504,802,2933,835,4001,485,4262,033,488
1939312,603,575591,476,930911,4845,094,3643,374,8521,323,3981,938,607
1940296,684,295531,941,815812,6674,435,0072,558,9161,020,6302,084,351
1941142,996,000261,870,000751,7224,302,1262,408,020980,9522,194,042
1942817,3984,960,5612,242,034933,6342,283,847
1943786,5115,500,6872,215,572945,2932,464,304
1944762,1795,989,3692,223,041951,9892,619,066
1945140,355,000236,844,000769,8577,202,2002,266,285982,5972,645,257
1946160,680,000*294,326,000*903,36910,624,440§2,354,4771,028,1114,009,763
1947159,778,000301,067,000917,29010,804,3142,464,7831,071,6134,092,930
1948162,131,000319,229,000942,65410,842,8652,483,9291,106,4794,293,823
1949169,798,000343,024,000952,21410,855,6482,460,7621,119,6674,185,348
1950178,857,000358,183,000977,00011,638,0912,371,5771,083,9774,500,237
1951174,591,000346,654,0001,026,51012,680,8982,349,8901,115,5645,525,253
1952176,895,261357,610,8841,090,86214,373,8912,297,2391,101,0045,663,753
1953173,532,000359,345,9321,136,34914,666,6382,230,1671,080,0766,638,776
1954180,104,940386,381,2541,235,97020,586,8482,277,7501,100,8066,675,037
1955187,487,096408,097,4551,336,54125,460,8522,333,9981,122,6457,217,771

GOVERNMENT RAILWAYS

Year Ended 31 MarchMiles Open for TrafficCapital Cost of Open LinesTrain-mileagePassengers Carried, Excluding Season-ticket HoldersGoods and Live-stock*RevenueExpenditure

* Equivalent tonnage of live-stock.

† From 1925–26, figures relate to railway operation only.

‡ Capital cost written down by £10,400,000.

 £ Tons££
19062,40722,498,9726,413,5738,826,3824,415,1662,349,7041,621,239
19072,45823,504,2726,755,4549,600,7864,824,5632,624,6001,812,482
19082,474124,365,6477,051,2749,756,7165,070,1762,761,9381,949,759
19092,67427,762,5927,458,23610,457,1445,135,4082,929,5262,114,815
19102,71728,513,4767,889,16611,141,1425,490,0183,249,7902,169,474
19112,75329,606,5468,141,07511,200,6135,863,6743,494,1822,303,272
19122,79830,506,0898,371,68711,891,1345,887,9083,676,5092,465,896
19132,85131,611,2209,016,22413,123,8796,246,1283,971,0022,705,609
19142,85432,355,0879,319,26813,355,8936,019,6334,043,3282,880,323
19152,94534,133,8259,383,42013,565,7726,453,4724,105,4572,920,455
19162,96034,857,8829,356,52214,201,5066,370,9454,548,3562,910,883
19172,96035,378,6649,146,33114,173,1156,239,1734,800,8102,926,864
19182,98336,001,4327,468,64611,408,1565,742,9684,687,7003,042,907
19192,98336,167,6817,477,58311,374,5215,611,7384,988,6323,308,575
19202,99636,390,1157,408,60812,760,8146,000,2795,752,4874,105,067
19213,00937,235,2549,303,39215,315,6406,487,2796,908,5315,636,601
19223,02139,309,0978,717,26514,262,4406,321,3516,643,5916,237,727
19233,02840,275,1618,346,73114,256,6106,618,5886,727,8025,502,497
19243,05341,399,4279,024,50313,817,3786,918,3496,984,2115,403,766
19253,08544,570,7469,083,62312,397,0797,025,3167,112,5245,545,416
19263,13847,608,67610,319,40711,787,7237,246,6927,589,2746,164,570
19273,16449,183,91610,723,86410,274,8787,299,7527,423,4726,158,283
19283,18051,187,37610,838,5949,272,5477,358,3887,343,8456,302,119
19293,28756,568,59811,113,4829,046,9817,613,4457,524,8646,374,579
19303,28757,787,67112,022,0438,466,7797,788,9737,473,9936,848,026
19313,32260,545,15411,281,8987,265,9126,957,7096,781,3886,406,143
19323,31551,424,88310,168,7206,503,5665,824,8115,788,9655,301,653
19333,31551,480,9499,828,8536,870,5705,490,6865,339,0754,833,754
19343,32053,909,34710,163,4747,511,3465,642,1995,628,8354,877,146
19353,32054,089,19010,626,4007,809,0356,023,9605,908,0645,138,588
19363,32054,253,05911,050,3767,963,8246,188,8056,243,5195,523,193
19373,32054,696,43711,868,0838,284,9566,813,2406,903,6046,338,385
19383,32356,065,18712,777,8528,069,0187,516,0497,591,8257,291,785
19393,31958,676,60813,072,6157,813,4367,539,0128,005,0597,663,632
19403,39063,059,18813,366,7988,283,0677,673,9508,761,6377,943,120
19413,39064,762,79413,559,6469,440,0878,426,1829,694,1908,406,790
19423,39064,904,02013,978,96111,105,6278,473,76510,383,8808,902,592
19433,46068,685,06315,139,88217,171,2148,887,08912,415,08010,019,659
19443,50470,999,12515,328,98718,317,3239,026,62613,464,97911,365,917
19453,50471,353,57412,802,53613,629,5238,954,23912,448,30711,696,895
19463,52874,466,73113,454,50813,553,0839,210,46613,104,58712,549,724
19473,52875,354,24313,169,23310,222,3259,329,33312,823,78413,644,779
19483,52677,089,03113,712,1038,111,4179,524,04313,964,28015,090,091
19493,52678,796,32013,895,4887,708,0499,666,13015,338,88216,788,256
19503,52681,551,76314,420,8527,881,2559,948,26116,062,06617,360,913
19513,53184,992,09314,153,2117,574,2759,615,85718,500,34418,725,416
19523,53988,026,723112,371,0435,641,9709,828,77120,097,24221,515,300
19533,53593,329,71813,409,3805,779,38910,025,93922,588,75822,755,397
19543,50497,622,33813,718,8966,840,6179,635,06123,682,36523,621,403
19553,489103,554,07314,419,9207,803,81310,336,33127,009,45925,542,214
19563,422108,548,18414,883,7247,975,19610,677,92327,871,41026,774,949

BANKRUPTCIES AND NEW COMPANY REGISTRATIONS

YearBankruptciesNew Company Registrations*
Number of BankruptciesAmount Realized by Official AssigneeAmount of Debts ProvedNumber of New RegistrationsAmount of Nominal Capital

* Public, private, and overseas.

† Not available.

‡ The extraordinarily high figure for 1934 is due to the inclusion of all overseas companies (numbering 187 with an aggregate nominal capital of £193,023,363) which had previous to 1934 established places of business in New Zealand and which were re-registered in 1934 under part XII of the Companies Act 1933.

 ££ £(000)
190634750,761192,927
190735059,849158,663
190840667,018199,069
190947171,351259,017
191039379,100176,001
191134440,009133,517
191231239,965120,325
191334342,735228,829
191439164,153199,251
191529463,310153,926
191630456,416172,7742584,073
191726563,645178,2442615,367
191816467,72988,6072003,055
191914154,66259,7673285,943
192014547,89777,7525019,564
192133678,271558,5043373,498
1922690126,145834,35641713,125
1923674124,641668,92550213,006
1924670118,641703,99556521,367
192565398,648471,02862114,760
1926752102,899585,68765510,748
1927867108,850679,4736988,702
1928806116,613767,32773610,985
192968791,180502,11290312,472
193078083,308827,3458936,703
1931848108,8091,042,1877958,284
193266175,657624,8928126,866
193345061,723489,8958307,301
193432644,533258,920933200,739
193525741,037225,50881024,238
193626032,983169,8669429,935
193722255,970171,7068886,113
193826764,511230,4638246,576
193926744,171225,4906818,910
194021342,418125,2893913,779
194116535,45371,01128811,246
19428229,75332,227198961
19434518,88320,0522701,547
19445113,46651,0354641,490
19454518,530118,2167413,383
19465220,94248,5061,43511,064
19477415,52844,7311,8139,575
194814850,280143,2821,7518,684
194917938,410203,1732,1577,982
195014249,252125,9172,07410,178
195114548,269136,8222,02012,807
195216856,241251,1291,74433,408
195321572,162381,0172,04143,034
195427782,571413,4472,68527,746
1955304112,418382,3222,69518,347
1956390130,574547,7513,25520,608

INSURANCE

YearLife (Ordinary and Industrial)AccidentFire
Policies in ForceSum AssuredNet Revenue*Net Expenditure*Net Revenue*Net Expenditure*

* Excluding unexpired risks reserves.

 Number£(000)££££
1910201,63335,426345,221204,383  
1911215,84637,211272,473228,210  
1912230,49839,321326,702254,058  
1913241,25740,989341,951260,596  
1914249,70642,254351,194287,512  
1915260,30843,778344,640291,634  
1916273,91245,333355,289302,204  
1917282,96846,417356,480321,027  
1918298,78249,341363,673326,724974,140747,606
1919318,08353,684456,054398,5361,101,461769,708
1920338,68858,504540,551454,9411,281,905885,944
1921357,14162,690714,575618,8181,403,6761,159,140
1922369,76365,219718,246651,9311,429,4431,169,047
1923389,05870,386767,243707,4681,434,8761,206,829
1924411,79675,936868,930791,4531,445,5771,279,313
1925433,31781,4001,157,968979,8831,516,9801,223,585
1926455,41886,7541,330,6781,145,1171,490,6071,352,312
1927480,00792,1101,341,0531,223,6091,497,2371,445,405
1928503,30098,0741,423,0951,299,0111,500,7711,533,615
1929531,905105,2711,662,7201,449,2041,516,3151,332,547
1930552,757112,0671,745,4491,548,9751,552,8261,306,634
1931546,455112,7031,526,2701,456,4861,553,6931,451,643
1932543,287112,0931,319,0901,181,4171,493,0141,165,770
1933558,457112,8761,266,1811,112,3381,428,4681,078,860
1934588,650116,5571,392,6411,201,0611,372,6191,049,632
1935627,719123,9041,512,8371,404,2401,375,3221,019,193
1936686,139136,0131,763,9851,700,3431,355,084987,415
1937751,023150,8022,223,3432,135,0311,294,825933,462
1938800,810161,0962,606,2512,336,3131,330,1821,010,553
1939835,886170,4152,819,6022,392,3971,392,4321,058,639
1940864,657177,5042,641,1972,304,7611,442,0831,122,533
1941900,065187,2072,605,1532,228,0911,507,1451,167,026
1942921,827193,7592,391,1152,064,9901,561,8831,336,801
1943953,953204,1932,679,9912,291,7651,679,1271,324,235
1944991,976219,0242,718,0172,432,3071,571,3041,285,538
19451,035,812238,5962,961,4002,652,4631,640,0041,352,787
19461,095,583265,8533,378,6232,841,5641,828,3891,543,546
19471,150,999296,3234,037,28813,460,84912,043,4251,673,587
19481,192,114324,9414,471,3223,984,7302,322,3611,712,184
19491,225,708353,4535,054,4014,495,18012,553,7771,922,472
19501,263,092387,2165,987,2995,210,5182,748,5242,237,736
19511,304,290433,0126,830,4826,060,3013,053,0222,428,733
19521,344,699479,0848,186,5047,202,61213,408,7942,792,279
19531,380,513529,1079,183,4618,030,9363,754,8453,083,966
19541,426,532591,79010,222,2017,201,5684,125,8213,247,613
19551,463,122662,15311,377,61410,387,0664,224,3903,554,989

Appendix A. APPENDICES

(a) PRINCIPAL EVENTS

CHRONOLOGICAL LIST OF SOME NOTEWORTHY EVENTS IN THE HISTORY OF NEW ZEALAND

  • 1642. Discovery of New Zealand by Tasman.

  • 1765. Discovery of Pukapuka Island, in the Cook Islands Group.

  • 1769. Captain Cook's first visit to New Zealand.

  • 1773. Captain Cook discovered Island of Manuae, in the Cook Islands Group.

  • 1788. Discovery of Macaulay and Curtis Islands (Kermadec Group), and of Bounty Islands.

  • 1791. Discovery of Snares and Chatham Islands.

  • 1792. First sealing gang left on New Zealand coast.

  • 1793. Discovery of Raoul or Sunday Island (Kermadec Group). Visit of Lieutenant-Governor King, of Norfolk Island, to Doubtless Bay.

  • 1800. Discovery of Antipodes Islands.

  • 1806. Discovery of Auckland Islands.

  • 1807. Defeat of Hongi and the Ngapuhi Tribe.

  • 1810. Discovery of Campbell Island.

  • 1814. Arrival of Rev. Samuel Marsden, and introduction of Christianity. Horses, cattle, sheep, and poultry first brought to New Zealand.

  • 1818. Hongi's and Te Morenga's great expedition to East Cape.

  • 1819–20. Raid on Taranaki and Port Nicholson by Patuone, Nene, and Te Rauparaha.

  • 1820. Hongi's visit to England. First vessel entered Auckland Harbour.

  • 1821. Hongi's capture of Mauinaina Pa and Te Totara Pa. Ngati-Toa migration from Kawhia to Otaki.

  • 1822. Fall of Matakitaki Pa, Waikato, to Hongi.

  • 1823. Fall of Mokoia Pa, Rotorua, to Hongi.

  • 1823–28. Jurisdiction of Courts of Justice in New South Wales extended to British subjects in New Zealand.

  • 1824. Fall of Te Whetumatarau Pa to Pomare.

  • 1825. First attempt at colonization, by an expedition under Captain Herd. Great defeat of Ngati-Whatau by Hongi.

  • 1827. Hongi's forces destroyed mission station at Whangaroa.

  • 1828. Death of Hongi.

  • 1829. Brig Hawes captured by Maoris.

  • 1830. Battles of Taumata-wiwi and Kororareka. Fail of Kaiapohia Pa, Canterbury, to Te Rauparaha.

  • 1831. Tory Channel whaling station established. Application of thirteen chiefs for the protection of King William IV. Capture of Pukerangiora Pa, Waitara, by Waikato.

  • 1832. Repulse of Waikato at Nga-motu Pa.

  • 1833. Mr. James Busby appointed British Resident at Bay of Islands.

  • 1834. Battle near Otaki. Waimate Pa shelled and captured by British—first occasion on which H.M. troops employed in New Zealand.

  • 1835. Declaration of independence of the whole of New Zealand as one nation, with title of “United Tribes of New Zealand.” Ngati-Awa tribes migrated to and conquered Chatham Islands.

  • 1836. Battles between Waikato and Te Arawa.

  • 1838. Pelorus Sound discovered. Arrival of Roman Catholic mission under Bishop Pompallier.

  • 1839. Governor of New South Wales authorized to include within the limits of that colony any territory that might be acquired in sovereignty by Her Majesty in New Zealand. Preliminary expedition of New Zealand Company under Colonel Wakefield arrived at Port Nicholson.

  • 1840. Arrival of New Zealand Company's settlers at Port Nicholson. Treaty of Waitangi signed. British sovereignty proclaimed. Captain Hobson appointed Lieutenant-Governor, with residence at Auckland. Settlements formed at Petre (Wanganui) and Akaroa.

  • 1841. Issue of charter of incorporation of New Zealand Company. New Zealand proclaimed independent of New South Wales. Arrival of New Plymouth settlers.

  • 1842. Settlement founded at Nelson.

  • 1843. Affray with Maoris at the Wairau.

  • 1844. Royal flagstaff at Kororareka cut down by Heke.

  • 1845. Destruction of Kororareka by Heke.

  • 1846. Arrival of first steam vessel (H.M.S. Driver) in New Zealand waters. Capture of pa at Ruapekapeka and termination of Heke's war. Maori hostilities near Wellington. Te Rauparaha captured and detained as a prisoner. New Zealand divided into two provinces, New Munster and New Ulster, and representative institutions conferred.

  • 1847. Attack by Maoris on Wanganui.

  • 1848. Suspension of that part of New Zealand Government Act which had conferred representative institutions. Severe earthquake at Wellington. Otago founded.

  • 1850. Surrender of New Zealand Company's charter, all its interests reverting to the Imperial Government. Canterbury founded.

  • 1852. Discovery of gold at Coromandel. Constitution Act passed, granting representative institutions to New Zealand, and dividing country into six provinces.

  • 1854. Opening at Auckland of first session of the General Assembly.

  • 1855. First members elected to the House of Representatives under system of responsible Government. Very severe earthquake on both sides of Cook Strait.

  • 1856. Appointment of first Ministry under system of responsible Government.

  • 1857. Goldfield opened at Collingwood.

  • 1858. New Provinces Act passed. Hawke's Bay Province constituted.

  • 1859. Establishment of Marlborough Province.

  • 1860. Hostilities in Waitara district.

  • 1861. Truce arranged with Waitara Maoris. Bank of New Zealand incorporated. Southland Province established. Gold discovered at Gabriel's Gully, Otago.

  • 1862. Coromandel proclaimed a goldfield. Wreck of s.s. White Swan, with loss of many public records. First electric-telegraph line opened—Christchurch to Lyttelton.

  • 1863. Wreck of H.M.S. Orpheus on Manukau bar, with loss of 181 lives. Control of Maori affairs transferred to Colonial Government. Commencement of Waikato War. Defeat of Maoris at Rangiriri, and occupation of Ngaruawahia. First railway in New Zealand, portion of Christchurch–Lyttelton line, opened.

  • 1864. Severe fighting in Waikato and elsewhere, including Battles of Rangiaohia, Orakau, Gate Pa, and Te Ranga. First major discovery of gold on West Coast of South Island.

  • 1865. Seat of Government transferred to Wellington. Further fighting, followed by proclamation of peace. Activities of Hauhau fanatics, including murders of Europeans. Rebel Maoris defeated at Wairoa.

  • 1866. Further defeats of rebel Maoris. Commencement of Panama steam mail service. Cook Strait submarine telegraph cable laid.

  • 1867. Opening of Thames Goldfield. Lyttelton Tunnel completed. Admission of four Maori members to House of Representatives as direct representatives of Maori people.

  • 1868. Maori prisoners, under leadership of Te Kooti, seized schooner Rifleman and escaped from Chatham Islands to mainland, where they massacred Europeans. Considerable fighting with these and other rebel Maoris.

  • 1869. Continuation of fighting with rebels and of pursuit of Te Kooti. Termination of Panama mail service. Visit of H.R.H. the Duke of Edinburgh. Government Life Insurance Office established.

  • 1870. Further fighting with Te Kooti. Last of Imperial troops left New Zealand. Commencement of San Francisco mail service. Possession taken of Bounty Island. Inauguration of Vogel public-works policy. Act passed to establish the New Zealand University. Southland Province reunited with Otago.

  • 1871. Commencement of railway construction under public-works policy.

  • 1872. Resumption of friendly relations with Waitara Maoris. Appointment of Maori chiefs (two) to Legislative Council. Public Trust Office created.

  • 1873. Establishment of New Zealand Shipping Company.

  • 1874. In pursuance of immigration and public-works policy, 31,774 assisted immigrants arrived. Westland Province established.

  • 1875. Resumption of amicable relations with Maori King. Establishment of Union Steam Ship Company. Abolition of Provinces Act passed.

  • 1876. New Zealand connected by cable with Australia. Abolition of Provinces Act came into operation, provincial institutions being abolished and the country divided into counties and boroughs.

  • 1877. Education Act passed, providing for free and compulsory education.

  • 1878. Completion of the Christchurch–Invercargill railway.

  • 1879. Trouble with Parihaka Maoris, under Te Whiti, and imprisonment of 180 of these. Triennial Parliaments Act passed. Adult male suffrage introduced. Kaitangata coal-mine explosion, whereby thirty-four lives lost.

  • 1880. Release of Parihaka prisoners.

  • 1881. Wreck of s.s. Tararua, with loss of 130 lives. Severe earthquakes in Wellington. Arrest of Te Whiti and Tohu.

  • 1882. First shipment of frozen meat from New Zealand.

  • 1883. Amnesty to Maori political offenders proclaimed. Te Whiti and Tohu released. Direct team communication inaugurated between New Zealand and England.

  • 1885. New Zealand Industrial Exhibition at Wellington.

  • 1886. Tarawera eruption, involving loss of 101 lives and destruction of Pink and White Terraces.

  • 1887. Annexation of Kermadec Islands. Members of House of Representatives reduced to seventy-four, including four Maoris.

  • 1888. British protectorate over Cook Islands proclaimed.

  • 1889. South Seas Exhibition at Dunedin.

  • 1890. Great maritime strike. First election of House of Representatives under one-man-one-vote principle.

  • 1891. Inauguration of Liberal régime under Hon. John Ballance, succeeded on his death in 1893 by Mr. Seddon. This and following years marked by passage of industrial and social legislation.

  • 1892. Introduction of lease-in-perpetuity system of land tenure.

  • 1893. Franchise extended to women. Special licensing poll introduced.

  • 1894. Industrial Conciliation and Arbitration Act passed. Government Advances to Settlers Act passed. Wreck of s.s. Wairarapa, with loss of 135 lives.

  • 1895. Government assumed management of Midland Railway.

  • 1896. Brunner Mine explosion, causing sixty-seven deaths. Abolition of non-residential or property qualification to vote. Government Valuation of Land Act passed.

  • 1898. Old-age Pensions Act passed.

  • 1899. Labour Day instituted. New Zealand Contingent (the first of ten) sent to South Africa.

  • 1900. Number of European representatives in Lower House increased to seventy-six.

  • 1901. T.R.H. the Duke and Duchess of York visited New Zealand. Penny postage adopted by New Zealand. Cook and other Pacific islands annexed.

  • 1902. Pacific cable opened. Wreck of s.s. Elingamite, with loss of forty-three lives. Conference of colonial Premiers in London.

  • 1903. Empire Day proclaimed. State Fire Insurance Act passed.

  • 1905. Workers' Dwellings Act passed. Title of New Zealand's representative in London altered to “High Commissioner.”

  • 1906. Death of Right Hon. R. J. Seddon, Premier since 1893. Advances to Workers Act passed. New Zealand International Exhibition at Christchurch.

  • 1907. New Zealand constituted a Dominion. Lease-in-perpetuity system of land tenure abolished. Parliament Buildings destroyed by fire.

  • 1908. Through railway communication established between Wellington and Auckland. Wellington–Manawatu Railway purchased by Government. Second Ballot Act passed.

  • 1909. S.s. Penguin wrecked in Cook Strait, with loss of seventy-five lives. Battle cruiser presented by New Zealand to Imperial Government. System of compulsory military training introduced.

  • 1910. Field-Marshal Lord Kitchener reported and advised on New Zealand defences. Public Debt Extinction Act and National Provident Fund Act passed.

  • 1911. Wireless telegraphy installed in New Zealand. Widows' Pensions Act passed. First poll on national prohibition taken.

  • 1912. Foundation stone of new Parliament Buildings laid. Public Service placed under Commissioner control.

  • 1913. Visit of Dominions Royal Commission. Visit of gift ship H.M.S. New Zealand to Dominion. Extensive strikes. Second Ballot Act repealed. Industrial, Agricultural, and Mining Exhibition at Auckland.

  • 1914. Western Samoa occupied by New Zealand Advance Expeditionary Force. Main Expeditionary Force left for Egypt. Huntly coal mine disaster, whereby forty-three lives lost.

  • 1915. New Zealand Expeditionary Force engaged in operations on Gallipoli Peninsula. National Cabinet formed. National register of men compiled. Pensions for miners introduced.

  • 1916. New Zealand Division transferred to Western Front, Mounted Brigade being retained in Egypt. Compulsory enrolment of men for war service introduced. Lake Coleridge electric-supply scheme opened.

  • 1918. S.s. Wimmera sunk by enemy mine off New Zealand coast, with loss of 26 lives. Otira Tunnel pierced. End of First World War. Great influenza epidemic, causing over five thousand deaths.

  • 1919. Women made eligible for seats in Parliament. New Zealand represented at Peace Conference by Right Hon. W. F. Massey, Prime Minister.

  • 1920. Visit of H.R.H. the Prince of Wales. Railway strike. First aeroplane flight over Cook Strait. League of Nations gave New Zealand mandate to administer Western Samoa. Anzac Day constituted.

  • 1921. Samoa Act passed, making provision for government in terms of mandate. New Zealand represented at Disarmament Conference, Washington.

  • 1922. Meat-export trade placed under control of a Board.

  • 1923. Opening of Otira Tunnel. Ross Dependency proclaimed, and placed under jurisdiction of Governor-General. Dairy Produce Export Control Act passed.

  • 1924. Railway strike. Direct two-way radio communication effected with England. Motor Vehicles Act provided for registration and annual licensing of motor vehicles. Land Transfer (Compulsory Registration of Titles) Act passed. Pensions for blind persons introduced.

  • 1925. New Zealand and South Seas International Exhibition at Dunedin. Administration of Tokelau (Union) Islands transferred to New Zealand.

  • 1926. Family Allowances Act passed.

  • 1927. Visit of T.R.H. the Duke and Duchess of York. Summer Time Act passed. Petrol tax imposed.

  • 1928. Kingsford Smith and party made first successful flight across Tasman Sea. Compulsory insurance of motor vehicles provided for by Motor Vehicles Insurance (Third-party Risks) Act.

  • 1929. Severe earthquake in Murchison–Karamea district caused seventeen deaths. Daylight saving (half-hour) permanently adopted for summer months. Fatal clash between police and Mau at Apia, Western Samoa.

  • 1930. Legislation providing for relief of unemployment first passed.

  • 1931. Worst earthquake in history of New Zealand occurred in Hawke's Bay, resulting in the loss of 255 lives. General reduction of 10 per cent in wages and salaries. Parliament approved draft Statute of Westminster. Mortgagors' relief legislation passed.

  • 1932. Industrial Conciliation and Arbitration Amendment Act made important changes in industrial legislation. National Expenditure Adjustment Act made reductions in old-age and other pensions, in salaries of State employees, and in rentals, interest rates, and other fixed charges. The historic Waitangi Estate presented to the nation by Their Excellencies Lord and Lady Bledisloe. New Zealand represented at Ottawa Conference.

  • 1933. Exchange raised at instance of Government to £125 N.Z. for £100 London (telegraphic transfers). Sales tax instituted. Conversion of internal public debt with reduction in interest rates, and provision made for local authorities' interest reduction and loans conversion. Successful experimental shipments of chilled beef to England. Issue of New Zealand silver coinage.

  • 1934. First official trans-Tasman air mail. Reserve Bank incorporated and commenced business. H.R.H. the Duke of Gloucester arrived on an official visit. First licensed air-transport service commenced operations.

  • 1935. Bank notes of trading banks ceased to be legal tender. Rural Mortgagors Final Adjustment Act passed, and Court of Review established. National Government defeated at general election, and Labour Government assumed office for first of four successive terms.

  • 1936. Inauguration of inter-Island trunk air services. Reserve Bank nationalized. System of guaranteed prices for butter and cheese introduced. Forty-hour week became operative. Powers of Court of Arbitration restored. Rail-car services inaugurated. New Zealand elected to seat on League of Nations Council.

  • 1937. New Zealand represented at Imperial Conference by Right Hon. M. J. Savage, Hon. W. Nash, and Mr. W. J. Jordan. Death of Lord Rutherford of Nelson.

  • 1938. Mr. W. J. Jordan, New Zealand's representative on League of Nations, elected President of the League Assembly. Social Security Act passed. Introduction of import selection and control.

  • 1939. Declaration of war with Germany. Recruitment for 2nd New Zealand Expeditionary Force. Arrangements for purchase of primary products by Imperial Government. New Zealand Centennial Exhibition opened at Wellington. Naval engagement off River Plate in which H.M.S. Achilles, largely manned by New Zealand ratings, took part.

  • 1940. Centennial celebrations. Departure of First Echelon of 2nd New Zealand Expeditionary Force. Death of the Prime Minister, the Right Hon. M. J. Savage; succeeded in office by Hon. P. Fraser. Declaration of war with Italy. R.M.S. Niagara sunk off New Zealand coast by enemy mine. Ballots for military service. National savings scheme inaugurated. Island of Nauru bombarded by enemy raider.

  • 1941. Italian raider sunk by H.M.N.Z.S. Leander in Indian Ocean. Daylight saving period extended to cover whole year. Minesweeper H.M.N.Z.S. Puriri sunk by mine in Hauraki Gulf, five fatalities. First enrolment of married men for military service. Death penalty abolished, also flogging and whipping. Declaration of war with Finland, Hungary, and Rumania. Declaration of war with Japan. Territorial Forces mobilized.

  • 1942. Complete mobilization of Military Forces ordered. Introduction of control of industrial man-power. Compulsory enrolment of all male British subjects between ages of eighteen and sixty-five inclusive, in Emergency Reserve Corps. Lend-lease reciprocal aid extended to include Australia and New Zealand. Gold to value of £2,397,000 salvaged from R.M.S. Niagara. Rationing introduced, principal items being tea, sugar, clothing, footwear, and household linen. Severe earthquakes in Wairarapa and Wellington districts on 24 June and 2 August. Mobilization of women for essential work. Thirty-seven lives lost in fire at Seacliff Mental Hospital.

  • 1943. H.M.N.Z. Corvette Moa sunk by Japanese, with loss of five lives. Death of Right Hon. J. G. Coates, M.C., member of War Cabinet and former Prime Minister. North African campaign brought to a successful conclusion. Railway accident near Hyde—twenty-one persons killed and thirty-eight injured. 2nd N.Z.E.F. (3rd Division) took part in action against Japanese in the Pacific Area. Butter rationing introduced.

  • 1944. Australian - New Zealand Agreement 1944, providing for collaboration on matters of mutual interest. Meat and egg rationing introduced. Annual Holidays Act passed. Invasion of France by Allied Forces commenced. Mutual-aid Agreement between Canadian and New Zealand Governments signed.

  • 1945. Royal Commission commenced inquiries into licensing laws of New Zealand. War in Europe ended (8 May). War gratuities payments scheme announced. Man-power controls in regard to women and young persons relaxed. Wartime press censorship abolished. War Cabinet dissolved. War in Pacific ended, Japan formally surrenders (15 August). Electoral Amendment Act providing for abolition of the “country quota” passed. South Island Main Trunk Railway opened, through rail connection from Picton to Bluff established.

  • 1946. First women members of Legislative Council (two) appointed. Restrictions on consumption of electric power imposed in North Island. Remaining man-power controls lifted in June. Family benefit of 10s. per week made universal as from 1 April. Coupon rationing of motor spirits revoked. Lieutenant-General Sir Bernard Freyberg, V.C., assumed office as Governor-General (17 June). Railways Department inaugurated inter-island air freight service. Contracts for bulk purchase of wool by United Kingdom Government expired, sales by auction resumed.

  • 1947. £12,500,000 presented to United Kingdom Government by New Zealand. Local Government Commission appointed. First woman Cabinet Minister in New Zealand appointed. Marketing of dairy produce and fixation of guaranteed price taken over by Dairy Commission. The Prime Minister attended a conference at Canberra of British Commonwealth Governments on Japanese peace treaty. Statute of Westminster adopted by New Zealand Parliament. Clothing rationing abolished.

  • 1948. Compulsory motor-spirits rationing reintroduced. Withdrawal of New Zealand Army component of Jayforce during the period July to September. Mount Ngauruhoe erupts after twenty-two years' quiescence. Abolition of tea, sugar, and meat rationing. The longest regular air flight in the world maintained by the same aircraft and crew ended on 6 June, when the last flight of the R.N.Z.A.F. Japan - New Zealand air courier service was completed. Adjustment of exchange rate to parity with sterling as from 20 August.

  • 1949. The Government adopted new consumers' price index covering a greater range of retail prices. Polls on the establishment of off-course betting and on an alteration in hotel hours held in March. Protracted carpenters' dispute at Auckland. Referendum on question of compulsory military training answered in the affirmative. British Government devalued sterling by approximately 30 per cent from 1 September. New Zealand currency remained at parity with sterling—i.e., also being devalued in terms of United States dollars. Labour Government defeated and National Government assumed office on 13 December.

  • 1950. Regular night crossings Sydney–Auckland by air inaugurated. The Minister of External Affairs attended Colombo Conference. British Empire Games held at Auckland. Control of land sales, except of farm land, lifted. Control of sterling funds and securities relaxed. Seven and one-half per cent surcharge imposed on cargo freights from United Kingdom to Auckland. Abolition of 33 1/3 per cent additional tax on unearned income. Abolition of petrol and butter rationing. Social security benefits raised and interim wage order issued by Court of Arbitration providing for wage increases. New general price order authorizing adjustments consequent on withdrawal of subsidies, and increases in freights and wages. Two New Zealand frigates departed for Korean waters. Government offered special combat force to the United Nations for service in Korea. 1950–51 wool sales resulted in record prices being paid. Legislative Council Abolition Act passed. Royal Commission inquired into waterfront industry. Off-course betting scheme approved. Kayforce sailed from Wellington for Korea on 10 December. Death of Right Hon. Peter Fraser, Prime Minister, 1940–49.

  • 1951. Increased freight charges on cargo from Australia to New Zealand announced. General order increasing rates of wages by 15 per cent issued. Government decided to hold prices of butter, milk, bread, and flour at existing levels by means of subsidies. Wool reached 240d. per pound at Christchurch wool sale. Successive lists of items removed from import control. Prolonged waterfront strike resulted in Proclamation of State of Emergency, and issue of regulations under the Public Safety Conservation Act. Servicemen kept essential cargoes moving. Waterfront unions deregistered, followed by deregistration of certain other unions—e.g., freezing workers—seamen and miners also involved. Establishment of Civil Emergency Reserve. Off-course betting operations commenced by Totalizator Agency Board. Freight rates raised from United Kingdom and American Atlantic ports. The United States of America placed ban on dairy imports. Government reduced price of six basic items (bread, flour, butter, tea, gas, motor spirits) by either subsidy or reduction in Customs duty. Wool prices fell severely. National Government returned for second term. United States of America, Australia, and New Zealand signed Pacific Security Treaty. Taxation Committee report tabled in the House of Representatives.

  • 1952. The Prime Minister attended a meeting of the Commonwealth Finance Ministers in London. Minimum floor-prices plan for wool operative. Millionth passenger carried by N.A.C. aircraft. Royal Commission on Railways. Death of His Majesty King George VI on 6 February at London. Proclamation of the accession of Queen Elizabeth II read by the Governor-General at Parliament Buildings on 11 February. Several measures to aid in solving sterling crisis announced—e.g., importation of motor vehicles under licence—achieving overall balance in external payments for year ending June 1953 and a surplus with the non-sterling area. New Zealand team at Olympic Games at Helsinki most successful, one gold and two bronze medals won and one Olympic record made. The Minister of External Affairs attended first meeting of Pacific Council. Full realizations from sale of butter and cheese in any season used for benefit of suppliers and dairy companies, and those from export meat paid to producers. Report of Royal Commission on the Waterfront Industry released. Rail and air freight service to Nelson commenced. Arrival of Sir Willoughby Norrie on 2 December to assume the office of Governor-General.

  • 1953. Construction work on Murupara pulp and paper project commenced. Bulk tariffs to electric supply authorities increased, with higher retail charges of between 20 and 40 per cent. Power restrictions suspended in North Island, first time for twelve years. Rongotai–Blenheim–Nelson air service recommenced. Termination of Wellington-Nelson passenger steamer service in April. Coronation Day for Her Majesty Queen Elizabeth the Second marked in New Zealand by nation-wide civic programmes. Mt. Everest conquered on 29 May by British expedition, the summit being reached by the New Zealander Edmund Hillary and the Sherpa Tensing. Construction of breakwater and reclamation at Lyall Bay for development of Rongotai as an international airport begun. National Housing Conference held in Wellington in August. Armistice agreement signed in Korea. Inauguration of Wellington – Hutt Valley electric train services. National Roads Board replaced Main Highways Board. The London–Christchurch air race won by R.A.F. Canberra No. 3 in record time of 23 hours 51 minutes. General order increased wages by 10 per cent, with certain weekly maxima. Price rises notified, followed by increases in social security benefits and war pensions, public service salaries, guaranteed prices for butterfat, etc. New Zealand's worst railway disaster occurred at Tangiwai on Christmas Eve, with a death roll of 154 persons. Arrival of Her Majesty Queen Elizabeth the Second and His Royal Highness the Duke of Edinburgh, on 23 December, the first occasion on which a reigning monarch had visited these shores. Her Majesty broadcast to the Commonwealth and Empire from Auckland on 25 December, and also addressed a special message of sympathy to her people in New Zealand on the occasion of the Tangiwai disaster. The first Proclamation issued by a reigning Sovereign in New Zealand summoned Parliament for its opening by the Queen on 12 January 1954.

  • 1954. Continuation of Royal Tour, including meetings of the Privy Council and Executive Council and opening of a special session of Parliament. North Island portion concluded 16 January and South Island 30 January. New Zealand took seat on United Nations Security Council. Loan of £20 million for Murupara project authorized by U.S. Export-Import Bank. Site selected for geothermal steam power station at Wairakei. Report of Consultative Committee on Hospital Reform released. Reorganization of Pacific air services, B.C.P.A. withdrawing, TEAL becoming equally owned by Australia and New Zealand. New Zealand sent team to Vancouver for British Empire Games—most successful in New Zealand's history, winning seven gold, seven silver, and five bronze medals. The Executive Council and Cabinet held meetings at Auckland on 25 May to mark the centenary of parliamentary government in New Zealand. American jet fighters broke sound barrier over Wellington. Bulk purchase dairy contract with United Kingdom terminated at end of July. Budget contained tax concessions, increased income tax exemptions and also rates, removed sales tax on many items, etc. Exchange allocation scheme for imports finished at end of year. New Zealand signed the South-East Asia Treaty at Manila. Report on Moral Delinquency in Children and Adolescents released. Auckland Harbour Bridge contract signed. Government announced reduction in strength of Kayforce. General wage order issued increasing wages by just under 3 per cent up to certain weekly maxima. National Government re-elected at general elections, strength of parties being National 45, Labour 35.

  • 1955. First New Zealand owned helicopter flown at Auckland. Royal Commission on Monetary Affairs appointed to inquire into the banking, finance, and credit systems in New Zealand. Government announced plan for placing State-owned tourist hotels under corporation control; this was later provided for by statute. Death of Hon. R. Semple, former Minister of Works. Prime Minister announced Government's approval to New Zealand participation in Antarctic expedition; Sir Edmund Hillary confirmed as leader. New Zealand made contribution to defence of South-East Asia by sending squadron of fighter bombers and part transport squadron to Malaya and, later in the year, an Army Special Air Service Squadron. First train run from Murupara to Kawerau in April, this followed later in the year by the successful operation of newsprint mills at Kawerau. Shops and Offices Act passed which legalized sale of essential household commodities on weekends, etc. Sea freights between U.K. and N.Z. and vice versa raised by 5 per cent during year. Schedule of meat floor prices brought into force. Hire purchase regulations determining minimum deposits and maximum periods of payment gazetted. Nelson–Glenhope railway closed. Rimutaka tunnel opened for traffic in November. Government announced proposals for electrical supply authorities to take over gasworks and for the establishment of the Electricity and Gas Co-ordination Committee. Strict control of credit in force during year. Approval given to National Airways Corporation ordering Viscount turbo-prop airliners for main trunk air routes. Formal agreement signed for initiation of reciprocal N.Z.–U.K. social security scheme as from following April.

  • 1956. Start made on Ohakuri hydro-electric power station, the seventh on the Waikato River, and steam power station at Mercer. Tourist Hotel Corporation formed. Trade discussions held with Australia. Record annual total of houses (19,200) erected. Survey made of floor of Cook Strait for possible laying of power cable between North and South Islands. Price of New Zealand butter in United Kingdom reached lowest point since 1951–52. Concern expressed at distribution of American surpluses of butter and cheese. Government proposal to build Benmore hydro-electric power station of up to 350,000 kW. on Waitaki River. Interest rates on Post Office Savings Bank accounts increased. Report of Royal Commission on Monetary, Banking, and Credit Systems released. Census taken. Roxburgh and Whakamaru power stations in operation. Shipping freights and passenger fares to Australia and passenger fares to Britain raised, also coastal fares and freights. Guaranteed price scheme for potatoes announced. Immigration target reduced to 10,000 a year. Oil search investigations intensified. Inoculation of 40,000 children against poliomyelitis. Special committee appointed to inquire into pay-as-you-earn taxation system. Sheep population reaches forty million. Income tax rebate reduced from 20 to 10 per cent. Government capital expenditure for year estimated to be £78 million. Guaranteed prices of butter and cheese increased. More goods and services removed from price control. General wage order provided for award wage increases. Increase in social security benefits. Rise of 10 per cent in railway fares and freights. Petition for increased state aid to private schools rejected. Abolition of Railways Commission provided for in Amendment Act. Increase in telephone charges. Building controls abolished. Team of fifty-three competitors sent to Olympic Games at Melbourne wins two gold medals. Colombo Plan Conference held in Wellington. Antarctic expedition, led by Sir Edmund Hillary, sails in H.M.N.Z.S. Endeavour. Duke of Edinburgh visits New Zealand.

(b) LIST OF ARTICLES ON SPECIAL SUBJECTS APPEARING IN PREVIOUS ISSUES OF THE YEAR-BOOK

Article onAppeared for the Last or Only Time in the Year-Book of
YearPage
Building stones1,892194
Varieties of soil1,892193
Patents, designs, and trade marks1,893350
Acclimatization1,894430
Co-operative system of constructing public works1,894234
Frozen-meat trade, the1,894311
Labour in New Zealand1,894362
Midland railway, the1,894386
Railways in New Zealand: Their history and progress1,894377
Sheep, crossbreeding of1,894308
Sheep farming1,894302
Southern Alps, the1,894474
State farms1,894243
West Coast Sounds, the1,894482
Cheviot Estate, the1,895264
Shipping companies—  
  New Zealand Shipping Co.1,895392
  Shaw, Savill, and Albion Co.1,895393
  Union Steam Ship Co. of New Zealand1,895389
Wellington–Manawatu railway, the1,895381
Laws of England and New Zealand, difference between1,896281
Waihi Gold Mining Co.1,897432
Wattle-growing in the Auckland Provincial District1,897430
Mount Cook: Its glaciers, and the Hermitage1,898552
Scenic wonderland, a1,898565
Christchurch to West Coast, journey from1,899548
Forest trees and the timber industry1,899470
Gold dredging industry, the1,899509
Moa, heir of the1,899517
Mount Cook district, the1,899554
Tokaanu to Raetihi1,899539
Tuhoeland1,899546
Waikato district and through to Wanganui1,899520
Waiouru to Mangaonoho1,899543
Chatham Islands, the1900531
Coal deposits of New Zealand, the1900479
Hemp industry, the1900477
Kauri gum1900489
Maori mythology1900536
Mount Cook, a night on1900525
Mount Sefton, ascent of1900519
New Zealand contingents for South Africa1900449
Pumice-stone deposits of New Zealand1900486
Wanganui River, up the, to Tokaanu1900509
Maori religion1901530
Marlborough Sounds, the1901517
Otago lakes, the1901523
Sydney pageant, the1901527
Cook Islands, the laws of1902573
Maori, neolithic, the1902578
Maori sociology1903641
Timber trees of the world1903605
Exotic trees in Canterbury1904569
Hanmer thermal springs1905631
Maori, colour-sense of the1905637
Thermal-springs district1905614
Maori marriage customs1906638
Tree-planting1906611
White Island, a day on1906637
Maori, ancient: His amusements, games, etc.1907707
Maori chant (tangi)1907711
New Zealand international exhibition1907701
Maori, ancient: His clothing1908734
Maori songs1908739
Agriculture in New Zealand (by M. Murphy, F.L.S.)1912809
Government training-ship Amokura1913942
H.M.S. New Zealand1913932
Land and income tax assessment1913884
Mineral waters of New Zealand1913896
External trade of New Zealand, the1915858
Maori, topographical nomenclature of the1919936
Wages and working hours in New Zealand1919860
Education system of New Zealand, the1925816
Effect of nativity order on infant mortality1925835
Local government in New Zealand1925845
Terman intelligence tests in New Zealand schools1925823
Wellington municipal milk supply1925777
Cancer in New Zealand: A statistical study1926889
      Totalizator, the1926838
Britomart, mission of, at Akaroa, in August 184019271,012
Mortality rates, New Zealand1927995
Livestock production: A review based on standard values and units1929990
Lakes of New Zealand193211
Rivers of New Zealand19326
Dairy-farm survey1933029
Ross Dependency1933900
Fauna, the194036
Geology19407
Libraries1940928
Mineral waters and spas1940935
Plants of New Zealand, the194028
Tourist attractions1940932
Alexander Turnbull Library1946914
National Film Unit1946724
Retail prices in New Zealand, with special reference to the Consumers' Price Index1947–49998
Economic policy and national income19501,033
Department of Scientific and Industrial Research1951–521,066
Standardization1951–521,076
Sources of statistical information19531,016
Royal Tour of New Zealand, 23 December 1953 to 31 January 195419541,121
New Zealand: Its tourist industry, tourist and sporting attractions, and travel information19551,143
Royal Commission on Monetary, Banking, and Credit Systems: Summary of report19561,201

(c) GENERAL BIBLIOGRAPHY

Until recently successive issues of the Year-Book contained a comprehensive list of New Zealand works, but considerations of space prohibit the publication of such a list in this issue.

The following list, compiled by Mr C. R. H. Taylor, M.A., Dip.Jour. (Chief Librarian of the Alexander Turnbull Library) includes the more notable works in their fields issued from 1950 onwards. Earlier works are listed in the 1947–49 issue of the Year-Book (pages 979–998) and in the 1932 issue.

Apart from this listing, the following may be noted. Government Departments, municipalities, boards, church organizations, institutions, associations, councils, authorities, and banks commonly issue annual reports. Some, particularly Government Departments, issue information brochures and books. The Standards Institute produces standards for a wide range of products. A series of diplomatic brochures is issued by the Department of External Affairs. Maps of many kinds are available from the Department of Lands and Survey. Statistical publications, including census, are compiled by the Department of Statistics. Business and general directories are published by Wise, Universal Business Directories, and Stone.

Lists of current publications in New Zealand are issued by the General Assembly Library, and printed cards of accessions by the National Library Service may be purchased. The Government Printer carries a large stock of Government publications.

BIBLIOGRAPHY AND LIBRARIES

  • BAGNALL, A. G., and OLSSON, A. L. Index to N.Z. periodicals and current national bibliography of N.Z. books and pamphlets published in 1951. Wellington. N.Z. Library Association, 1952. Annual supplements.

  • BAGNALL, A. G. (editor). Union list of serials in New Zealand libraries. Wellington. N.Z. Library Service, 1953. Supplements have been issued.

  • FAIR, Andrew Peter Rasch. Guide to book values—New Zealand, Australia, Pacific, Antarctic: book auction records 1952–56. Wellington, 1956.

  • HARRIS, Wm. J. Guide to New Zealand reference material and other sources of information, 2nd edition. Wellington. N.Z. Library Association, 1950.

  • JENKINS, David Lloyd. Union list of theses of the University of New Zealand, 1910–1954. Wellington. N.Z. Library Association, 1956.

  • JOHNSTONE, Arthur H. Canterbury books, 1847–1955: a bibliography. Christchurch. Whitcombe & Tombs, 1956.

  • NORTHERN ADVOCATE INDEX. (Quarterly). Whangarei. Northern Publishing Co.

  • TAYLOR, Clyde Romer Hughes. A Pacific bibliography: Printed matter relating to the native peoples of Polynesia, Melanesia, and Micronesia. (Includes classified bibliography on the Maori.) Wellington. Polynesian Society, 1951.

  • TAYLOR, David Mortimer. The oldest manuscripts in New Zealand. Wellington. New Zealand Council for Educational Research, 1955.

RELIGION AND MYTHOLOGY

  • GREY, Sir George. Polynesian mythology and ancient traditional history of the Maori. 3rd edition. Edited by W. W. Bird. Illustrated by Russell Clark. Christchurch. Whitcombe & Tombs, 1956.

  • JOHANSEN, J. Prytz. The Maori and his religion in its non-ritualistic aspects. Kobenhavn. Ejnar Munksgaard, 1954.

  • PARR, Stephen. Canterbury pilgrimage: the first hundred years of the Church of England in Canterbury, New Zealand. Christchurch. Centennial Committee of the Diocese of Christchurch, 1952.

SOCIAL AND ECONOMIC STUDIES

  • AIREY, Willis Thomas Goodwin. New Zealand foreign policy related to New Zealand social development and current world trends. Wellington. New Zealand Student Labour Federation, 1954.

  • ALEXANDER, Robert Ritchie. The story of Te Aute College. (The leading secondary school for Maori boys.) Wellington. Reed, 1951.

  • BARR, Janet R. Within sound of the bell. Christchurch. Whitcombe & Tombs, 1953.

  • BRIDGER, Grover Leon. Fertilizer production in New Zealand. Wellington. Government Printer, 1951.

  • BUTCHERS, A. G. Centennial history of education in Canterbury. Christchurch. Canterbury Education Board, 1953.

  • CAMPBELL, Richard M. The Public Service Commission in operation. Wellington. Institute of Public Administration, 1950.

  • CONFERENCE ON CAPITAL DEVELOPMENT IN NEW ZEALAND DURING THE NEXT TEN YEARS. Christchurch, 1953. (Mimeographical.)

  • DOLLIMORE, H. N. The Parliament of New Zealand and Parliament House. Wellington. Government Printer, 1953.

  • GREEN, William Albert Edward and others. Social services in New Zealand. A group report. Revised edition. Wellington. Institute of Public Administration, 1954.

  • HADFIELD, J. W. Linen flax fibre production in New Zealand. Christchurch. Linen Flax Corporation of New Zealand, 1953.

  • JONES, Frederick George Hall. The history and activities of Rotary in New Zealand. Invercargill. Southland Historical Committee, 1955.

  • LOCHORE, Reuel Anson. From Europe to New Zealand. An account of our continental European settlers. Wellington. Reed, 1951.

  • MACKAY, J. K. Broadcasting in New Zealand. Wellington. Reed, 1953.

  • MAPLES, E. Social security services in New Zealand. Oxford University Press, 1949.

  • MASSEY AGRICULTURAL COLLEGE. Dairy farming annual (since 1948). Palmerston North.

  • MASSEY AGRICULTURAL COLLEGE. Sheepfarming annual (since 1938). Palmerston North.

  • NEALE, Edward Percy. Guide to New Zealand official statistics. Third edition. Auckland. Whitcombe & Tombs, 1955.

  • NEW ZEALAND COMMISSION OF INQUIRY appointed to inquire into certain matters relating to the conduct of members of the Police Force. Final Report. Sir Robert Kennedy, Chairman. Wellington. Government Printer, 1955.

  • NEW ZEALAND GOVERNMENT. The New Zealand economy 1939–1951. Wellington. Government Printer, 1951.

  • NEW ZEALAND GOVERNMENT. Economic Survey. Annual since 1952. Wellington. Government Printer.

  • NEW ZEALAND MINISTER OF WORKS. Roads. Statement of policy by Hon. W. S. Goosman. Wellington. Government Printer, 1954.

  • NEW ZEALAND SOIL CONSERVATION AND RIVERS CONTROL COUNCIL. Catchments of New Zealand. Wellington. Government Printer, 1956.

  • NEW ZEALAND SPECIAL COMMITTEE on moral delinquency in children and adolescents. Report. O. C. Mazengarb, Chairman. Wellington. Government Printer, 1954.

  • NEW ZEALAND UNIVERSITY. Alphabetical roll of graduates. Wellington. Whitcombe & Tombs, 1951.

  • NEW ZEALAND UNIVERSITY. The University of New Zealand Calendar. Wellington. (Annual). Individual colleges issue separate calendars.

  • NEW ZEALAND WOOL BOARD. Annual Report. Annually. Wellington.

  • NIXON, Allan Johnston. Divorce in New Zealand. Auckland. Auckland University College, 1954.

  • PARKER, R. S. (editor). Economic stability in New Zealand. Wellington. New Zealand Institute of Public Administration, 1953.

  • PARKYN, George William (editor). The administration of education in New Zealand. Wellington. N.Z. Institute of Public Administration, 1954.

  • POLASCHEK, Raymond J. (editor). Local government in New Zealand. Wellington. New Zealand Institute of Public Administration, 1956.

  • SCHOLEFIELD, Guy Hardy. New Zealand parliamentary record 1840–1949. Wellington. Government Printer, 1950.

  • SMITH, Sir David S. Devolution in academic matters: the Rhodes scholarships. Wellington. University of New Zealand, 1953.

  • SMITH, Sir David S. The quality and standing of the University. Wellington. University of New Zealand, 1954.

  • SOCIAL SECURITY DEPARTMENT. The growth and development of social security in New Zealand … (1898–1949). Wellington. Government Printer, 1950.

  • TYNDALL, Sir Arthur. The settlement of labour disputes in New Zealand. Cambridge, Mass. Massachusetts Institute of Technology, 1955.

  • WILD, L. J. The development of agricultural education in New Zealand. Christchurch. Whitcombe & Tombs, 1953. (The Macmillan Brown Lectures.)

LAW

  • BIRKS, WALTER RICHARD. The legal relationship of parent and child. Wellington. Legal Publications, 1952.

  • CHALMERS, CHARLES CLIVE. Chalmers' and Dixon's road traffic laws of New Zealand. 2nd edition. Wellington. Butterworth, 1952.

  • CURRIE, A. E. Crown and subject: A treatise on the rights and legal relationship of the Crown and the people of New Zealand. Wellington. Legal Publications, 1953.

  • GARROW, James Mitchell Ellis. Garrow's law of real property in New Zealand. 4th edition. Edited by E. C. Adams. Wellington. Butterworth, 1954.

  • LUXFORD, J. H. Liquor laws of New Zealand. 2nd edition. Wellington. Butterworth, 1953.

  • MACDONALD, John William. Law relating to workers' compensation in New Zealand. 2nd edition. Edited by C. H. Arndt. Wellington. Butterworth, 1954.

  • MERCANTILE GAZETTE OF N.Z. Digest of legal, commercial, and statistical information. Christchurch. Trade Auxiliary, 1950.

  • ROBSON, John Lochiel (editor). New Zealand: the development of its laws and constitution. London. Stevens, 1954.

  • SIM, Sir Wilfrid Joseph. Sim's divorce law and practice in New Zealand. 6th edition. Assisted by P. Keesing. Wellington. Butterworth, 1954.

  • STAPLES, C. A. A guide to New Zealand income tax practice. 14th edition. Wellington. Financial Publications, 1954.

PHILATELY AND COMMUNICATION

  • COLLINS, Raymond J. G. (editor). The postage stamps of New Zealand. Vol. 3. Wellington. Royal Philatelic Society of New Zealand, 1955.

  • N.Z. PHILATELIC SOCIETY. Catalogue of New Zealand stamps. Vol. 2, 1951.

  • NEW ZEALAND POST OFFICE. One hundred years of postage stamps. 1855–1955. Wellington. New Zealand Post Office, 1955.

  • PALMER, A. N., and STEWART, W. W. Cavalcade of New Zealand locomotives … the railway engine since 1863. Wellington. Reed, 1956.

LANGUAGE

  • HARAWIRE, Kahi Takimoana. Teach yourself Maori. 2nd edition. Wellington. Reed, 1954.

  • KOHERE, Reweti Tuhorouta. Maori proverbs and sayings translated and explained. Wellington. Reed, 1951.

  • KOHERE, Reweti Tuhorouta. He Konae Aronui. Proverbs and sayings of the Maori. Wellington. Reed, 1951.

  • WILLS, Webster H. Lessons in the Maori language. New Plymouth. Avery, 1950.

BOTANY

  • MATTHEWS, J. W. New Zealand trees. Wellington. Reed, 1951.

  • REED, A. H. The story of the kauri. Wellington. Reed, 1953.

  • SAINSBURY, George Osborne King. A handbook of the New Zealand mosses. Wellington. Royal Society, 1955.

  • STEVENSON, Greta Barbara. A book of ferns. Dunedin. John McIndoe, 1954.

  • WALL, Arnold. Botanical names of the flora of New Zealand. Auckland. Whitcombe & Tombs, 1950.

ETHNOLOGY

  • ADKIN, G. Leslie. Horowhenua. Wellington. Polynesian Society, 1949.

  • ARCHEY, Gilbert Edward. Sculpture and design, an outline of Maori Art. Auckland. War Memorial Museum, 1955.

  • BEATTIE, James Herries. Our southernmost Maoris. Dunedin. Otago Daily Times, 1954.

  • BEST, Elsdon. The Maori as he was. 2nd Edition. Wellington. Government Printer, 1953.

  • BUCK, Peter H. The coming of the Maori. Wellington. Maori Purposes Board, 1950.

  • DEPARTMENT OF MAORI AFFAIRS. Te Ao hou: The new world. (English and Maori journal.) Quarterly. Wellington.

  • DUFF, Roger S. Moa-hunter period of Maori culture. Wellington. Department of Internal Affairs, 1950.

  • JEFFERSON, Christina. Dendroglyphs of the Chatham Islands. Moriori designs. Wellington. Polynesian Society, 1956.

  • KELLY, Leslie G. Tainui. Wellington. Polynesian Society, 1949.

  • MEAD, Sidney Moko. Taniko weaving: How to make Maori belts and other useful articles. Wellington. Reed, 1952.

  • PHILLIPPS, Wm. J. Maori carving. Wellington. Tombs, 1950.

  • PHILLIPPS, Wm. Maori houses and food stores. Wellington. Dominion Museum (Monograph No. 8), 1952.

  • PHILLIPPS, Wm. Carved Maori houses of western and northern areas of New Zealand. Wellington. Government Printer, 1955.

  • PHILLIPPS, Wm. The great carved house Mataatoa. Wellington. Polynesian Society, 1956.

  • PRICE, A. G. White settlers and native peoples. Melbourne. Georgian House, 1949. (2 chapters on Maori race.)

  • REED, A. H. & A. W. Maori place-names and their meanings. Wellington. Reed, 1950.

  • RUFF, Elsie. Jade of the Maori. London. Gemmological Association, 1950.

  • SHARP, C. Andrew. Ancient voyagers in the Pacific. Wellington. Polynesian Society, 1956.

  • SUTHERLAND, I. L. G. Ngarimu hui. Wellington. Polynesian Society, 1949.

  • TAYLOR, Willian Anderson. Lore and history of the South Island Maori. Christchurch. Bascands, 192.

SCIENCE: GENERAL

  • BASTINGS, Lyndon (editor). Directory of New Zealand science. 3rd edition. Wellington. N.Z. Association of Scientific Workers, 1954.

  • COTTON, Charles Andrew. New Zealand geomorphology, 1912–25. Wellington. New Zealand University Press, 1955. 281 pp.

  • ELPHICK, John Oliver. A users' directory of New Zealand coals. Wellington. Department of Scientific and Industrial Research, 1956.

  • GRAHAM, David. A treasury of New Zealand fishes. Wellington. Reed, 1953.

  • GRANGE, Leslie Issott. Prospecting for radio-active minerals in New Zealand. Wellington. Department of Scientific and Industrial Research, 1956.

  • NEW ZEALAND ASTRONOMICAL HANDBOOK. (Annual.) Wellington. Royal Astronomical Society of New Zealand.

  • NEW ZEALAND DAIRY SCIENCE ASSOCIATION. The contribution of dairy scientists during the last twenty-five years to the advancement of the New Zealand dairy industry. Palmerston North. 1954.

  • NEW ZEALAND SOIL BUREAU. General survey of the soils of North Island, New Zealand. Wellington. Government Printer, 1954.

  • OLIVER, Walter Reginald Brook. New Zealand birds. 2nd edition. Wellington. Reed, 1955.

  • PACIFIC SCIENCE CONGRESS. Proceedings of the seventh Pacific Science Congress, 1949. Wellington. Royal Society of New Zealand, 1954.

  • RINEY, Thane A. Identification of big game animals in New Zealand. Wellington. Dominion Museum, 1955.

  • STIDOLPH, Robert Hector Donald (editor). The Takahe: Accounts of field investigations on notornis. Masterton. Ornithological Society of N.Z., 1951.

MEDICINE

  • BEAGLEHOLE, Ernest. Mental health in New Zealand. Wellington, New Zealand. University Press, 1951.

  • BROWN, Charles Maurice Bevan. Sources of love and fear. Wellington. Reed, 1950.

  • HEWAT, Robert Eric Tamlyn, and D. F. Eastcott. Dental caries in New Zealand: report of an epidemiological and racial study. Christchurch. Medical Research Council, 1956.

RECREATION

  • FAIRBURN, John (editor). The 1956 Springboks in New Zealand. Auckland. A.D. Organ, 1956.

  • MC CARTHY, Winston John. Round the world with the All Blacks, 1953–54. Wellington. Sporting Publications, 1954.

  • RUGBY ALMANACK OF NEW ZEALAND, 1954, edited by Arthur Carman, Read Masters, and Arthur C. Swan. Wellington. Sporting Publications, 1954.

POETRY

  • BAXTER, James Keir. Recent trends in New Zealand poetry. Christchurch. Caxton, 1951.

  • BAXTER, James Keir. The fallen house: Poems. Christchurch. Caxton, 1953.

  • CAMPBELL, Alistair. Mine eyes dazzle. Poems, 1947–49. Christchurch. Caxton, 1950.

  • CHAPMAN, Robert M., and BENNETT, Jonathan (editors). An anthology of New Zealand verse. Oxford University Press, 1956.

  • CURNOW, Thomas Allen Monro (editor). A book of New Zealand verse. 1923–50. Christchurch. Caxton, 1951.

  • GLOVER, D. J. M. Arawata Bill: A sequence of poems. Christchurch. Pegasus Press, 1953.

  • JOHNSON, Louis (editor). New Zealand poetry annual. Vol. 5. Wellington. Pegasus Press, 1955.

  • WALL, Arnold. A century of New Zealand's praise. Christchurch. Simpson and Williams, 1950.

  • WILKINSON, Iris Guiver. Houses by the sea and the later poems of Robin Hyde. With an introduction by Gloria Rawlinson. Christchurch. Caxton, 1952.

  • WOODHOUSE, Airini E. New Zealand farm and station verse, 1850–1950. Christchurch. Whitcombe & Tombs, 1950.

LITERATURE AND ART

  • BAXTER, James Keir. The fire and the anvil. Notes on modern poetry. Wellington. New Zealand University Press, 1955.

  • BERKMAN, Sylvia Leah. Katherine Mansfield: A critical study. New Haven. Yale University Press, 1951.

  • BURTON, Ormond Edward. Spring fires: a study in New Zealand writing. Auckland. Book Centre, 1956.

  • HOFMAN, Helen L. (editor). The puritan and the waif. Critical essays on the work of Frank Sargeson by Walter Allen and others. Auckland, 1954.

  • HOLCROFT, Montague Harry. Discovered isles: A trilogy. (Second issue of three separate essays.) Christchurch. Caxton, 1950.

  • HOWELL, Arthur R. Frances Hodgkins: Four vital years. London. Rockliff, 1951.

  • MC CORMICK, Eric Hall. Eric Lee-Johnson, with a biographical introduction, Hamilton. Paul's Book Arcade, 1956.

  • MC CORMICK, Eric Hall. Frances Hodgkins and her circle. An exhibition. Auckland. Pelorus Press, 1954.

  • MC CORMICK, Eric Hall. Works of Frances Hodgkins in New Zealand. Auckland. City Art Gallery, 1954.

  • MANSFIELD, Katherine. Katherine Mansfield's letters to John Middleton Murry. London. Constable, 1951.

  • THE NEW ZEALAND WRITERS' HANDBOOK, edited for the P.E.N., New Zealand Centre, by Stuart Perry. Wellington. Reed, 1952.

FICTION

  • CARMAN, Dulce. Dream of the dark. London. Wright and Brown, 1955.

  • CARMAN, Dulce. The witching hour. A romance of Maoriland. London. Wright and Brown, 1955.

  • DAVIN, D. M. (editor). New Zealand short stories. Oxford University Press, 1953.

  • DAVIN, D. M. (editor). The sullen bell. London. Michael Joseph, 1956.

  • DUGGAN, Maurice. Immanuel's land. Auckland. Pilgrim Press, 1956.

  • GOULTER, Mary Catherine. Keeper of the sheep. Christchurch. Pegasus Press, 1955.

  • GUTHRIE, John. Paradise Bay. London. Werner Laurie, 1952.

  • MANSFIELD, Katherine. Selected short stories, with an introduction by D. M. Davin. Oxford University Press, 1953.

  • WILSON, Guthrie Edward. Julien Ware. London. Robert Hale, 1952.

  • WILSON, Guthrie Edward. Sweet White Wine. London. Hale, 1956.

DESCRIPTION AND TRAVEL

  • ACRES, Thyna A. M. Opo the gay dolphin. Wellington. Reed, 1956.

  • BRUNNER, THOMAS. The great journey. An expedition to explore the interior of the Middle Island, 1846–48. Christchurch. Pegasus, 1952. Edited by John Pascoe.

  • DOLLIMORE, Edward Stewart. New Zealand guide, incorporating Wise's every place in New Zealand. Dunedin. Wise, 1952.

  • DUFF, Oliver. New Zealand now. London. Allen and Unwin, 1956.

  • HALL, David Oswald William. Portrait of New Zealand. Wellington. Reed, 1955.

  • HARDWICK, John M. D. Opportunity in New Zealand. London. Rockliff, 1955.

  • HARDWICK, John M. D. The Royal visit to New Zealand, December 1953 – January 1954. Edited by J. H. Richards. Wellington. Reed, 1954.

  • HEWITT, Leonard Rodney and Mavis DAVIDSON. The mountains of New Zealand. Wellington. Reed, 1954.

  • HILLARY, Sir Edmund. High adventure. London. Hodder & Stoughton, 1955.

  • NAN KIVELL, Rex de C. The Rex Nan Kivell collection of early New Zealand pictures. Wellington. Department of Internal Affairs, 1953.

  • NEWTON, Peter. High country journey. Wellington. Reed, 1952.

  • NEW ZEALAND DEPARTMENT OF TOURIST AND PUBLICITY. A tour of New Zealand by Her Majesty the Queen and the Duke of Edinburgh, 1953–54. Wellington. Government Printer, 1953.

  • PANTON, H. S. New Zealand. A preview of the land of the long white cloud. London. Rockliff, 1951.

  • PASCOE, John Dobree. Land uplifted high. Christchurch. Whitcombe & Tombs, 1952.

  • REED, Arnold Wyclif. The story of New Zealand place names. Wellington. Reed, 1952.

  • REEVES, W. P. The long white cloud. Ao-tea-roa … with additional chapters by A. J. Harrop, London. Allen & Unwin, 1950.

  • RICHARDS, James Harray. Milford Sound. Wellington. Reed, 1955.

  • RICHARDS, James Harray. Rangi and Rotorua. Wellington. Reed, 1955.

  • RICHARDS, James Harray. Waitomo Caves. Wellington. Reed, 1953.

  • SUTHERLAND, W. T. G. The golden bush. London. Michael Joseph, 1953. Also at Christchurch. Whitcombe & Tombs, 1953.

  • WHITE'S AVIATION LTD., Auckland. White's pictorial reference of New Zealand: Representative air views of N.Z. cities and boroughs. Auckland. White's Aviation, 1952.

  • WILKINSON, Alexander Stanley. Kapiti bird sanctuary. Masterton. Stidolph, 1952.

  • WINKS, Robin William. These New Zealanders. Christchurch. Whitcombe & Tombs, 1954.

BIOGRAPHY: COLLECTIVE

  • BRYANT, L. V. New Zealanders and Everest. Foreword by Sir Edmund Hillary. Wellington. Reed, 1953.

  • BURDON, R. M. New Zealand notables: Series three. Christchurch. Caxton, 1951.

  • FURKERT, F. W. Early New Zealand engineers, edited by W. L. Newnham. Wellington. Reed, 1953.

  • NEW ZEALAND BUSINESS WHO'S WHO, 1955. Wellington. Watkins, 1955.

  • SIMPSON, Frank A. (editor). Who's who in New Zealand. 6th edition. Wellington. Reed, 1956.

  • WHITE'S AIR DIRECTORY AND WHO'S WHO IN N.Z. AVIATION (including the South Pacific), 1953–54. Auckland. White's Aviation, 1953.

BIOGRAPHY: PERSONAL

  • ALPERS, Antony. Katherine Mansfield, a biography. New York. Knapf, 1953.

  • ANDERSEN, J. C., and PETERSEN, G. C. The Mair family. Wellington. Reed, 1956.

  • BURDON, Randal Mathews. Scholar errant: a biography of Professor A. W. Bickerton. Christchurch. Pegasus Press, 1956.

  • CRRINGTON, C. E. John Robert Godley of Canterbury. Christchurch. Whitcombe & Tombs, 1950.

  • CODY, J. F. Man of two worlds: Sir Maui Pomare. Wellington. Reed, 1953.

  • DILLON, Constantine Augustus. The Dillon letters, 1842–53. Edited by C. A. Sharp. Wellington. Reed, 1954.

  • DOMETT, Alfred. The diary of Alfred Domett, edited by E. A. Horsman. Oxford University Press, 1953.

  • RAMSDEN, George Eric Oakes. A Memoir—Te Rangihiroa: Memorial to Sir Peter Buck. Wellington. Department of Maori Affairs, 1954.

  • ROTH, Herbert Otto. George Hogben: a biography. Wellington. New Zealand Council for Educational Research, 1952.

  • STEVENS, Percival George William. John Grigg of Longbeach. Christchurch. Whitcombe & Tombs, 1952.

  • THORN, James. Peter Fraser, New Zealand's wartime Prime Minister. London. Odhams Press, 1952.

  • WILD, L. J. The life and times of Sir James Wilson of Bulls. Christchurch. Whitcombe & Tombs, 1953.

  • WILLIAMS, John B. The New Zealand Journal, 1842–1844. Edited by Robert W. Kenny. Salem. Peabody Museum, 1956.

  • WILSON, Helen Mary. My first eighty years. Hamilton. Paul's Book Arcade, 1950.

HISTORY: GENERAL

  • CONDLIFFE, J. B., & AIREY, W. T. G. A short history of New Zealand. 7th edition. Christchurch. Whitcombe & Tombs, 1953.

  • COOK, James. Journals on his voyages of discovery. Edited by J. C. Beaglehole (and others). Vol. 1: The voyage of the Endeavour, 1768–1771. Cambridge University Press for the Hakluyt Society, 1955.

  • COOK, James. Charts and views drawn by Cook and his officers and reproduced from the original manuscripts. Edited by R. A. Skelton. Cambridge University Press for the Hak Society, 1955.

  • DUMONTD'URVILLE, Jules S. C. The voyage of the Astrolabe, 1840. An English version by Olive Wright. Wellington. Reed, 1955.

  • MILLER, Harold G. New Zealand. London. Hutchinson, 1950.

  • NEW ZEALAND DOMINION ARCHIVES. A guide to the Dominion archives. Wellington. Department of Internal Affairs, 1953.

  • NEW ZEALAND DOMINION ARCHIVES. Archives of the Governor-General. Wellington. Department of Internal Affairs, 1953.

  • NEW ZEALAND DOMINION ARCHIVES. Archives of the Army Department. Wellington. Department of Internal Affairs, 1953.

  • NEW ZEALAND DOMINION ARCHIVES. Archives of the New Zealand Company. Wellington. Department of Internal Affairs, 1953.

  • NEW ZEALAND NATIONAL (formerly “Dominion”) ARCHIVES. Archives of the provinces of New Ulster and New Munster and of the Civil Secretary's Office. Wellington. Department of Internal Affairs, 1954.

  • NEW ZEALAND NATIONAL HISTORICAL PLACES TRUST. Rules. Wellington. Government Printer, 1956.

HISTORY: SPECIAL

  • ACLAND, Leopold George Dyke. The early Canterbury runs and glossary of station terms. (Incorporating earlier volumes.) Christchurch. Whitcombe & Tombs, 1951.

  • ALLAN, Ruth Mary. The history of Port Nelson. Wellington. Whitcombe and Tombs, 1954.

  • BAGNALL, A. G. Masterton's first hundred years. Masterton. Centennial Committee, 1954.

  • BAGNALL, A. G. Old Greytown, 1854–1954. Greytown Centennial Book Committee, 1953.

  • COOK, James. Captain Cook in New Zealand. Extracts from the journals, edited by A. H. and A. W. Reed. Wellington. Reed, 1951.

  • GODLEY, Charlotte (Wynne). Letters from early New Zealand, 1850–1853. Christchurch. Whitcombe & Tombs, 1951.

  • GRAINGER, John. The Auckland story … through the years. Wellington. Reed, 1953.

  • HASSALL, Charles Edward. A short history of the Port of Timaru, 1852–1955. Timaru. Harbour Board, 1955.

  • INGRAM, Charles William Nepean, and WHEATLEY, P. Owen. Shipwrecks: New Zealand disasters, 1795–1950. Wellington. Reed, 1951.

  • JILLETT, J. W. L. Wings across the Tasman, 1928–53. Wellington. Reed, 1953.

  • JOHNSON, John. The Story of Lyttelton. Lyttelton. Lyttelton Borough Council, 1952.

  • KELLY, Leslie George. Marion Dufresne at the Bay of Islands. Wellington. Reed, 1951.

  • MACKAY, Joseph Angus. Historic Poverty Bay and the East Coast. Gisborne. The Author, 1949.

  • MC LINTOCK, A. H. Liquor and the King Country. Wellington. Government Printer, 1953.

  • MANSON, Cecil M., and Cecilia E. Tides of Hokianga. Wellington. Wingfield Press, 1956.

  • MEIKLEJOHN, G. M. Early conflicts of press and government. A story of the first New Zealand Herald and of the founding of Auckland. Auckland. Wilson & Horton, 1953.

  • MILLAR, John Halket. Death round the bend. Nelson. Stiles, 1955.

  • MILLER, Frederick Walter Gascoyne. Beyond the blue mountains. A history of the West Otago district. Dunedin. Otago Centennial Historical Publications, 1954.

  • NEW ZEALAND TANGIWAI RAILWAY DISASTER BOARD OF ENQUIRY. Report. Wellington. Government Printer, 1954.

  • PETERSEN, George Conrad. The pioneering days of Palmerston North. Levin. Kerslake, Billens, and Humphrey, 1952.

  • RAMSDEN, George Eric Oakes. Rangiatea: The story of Otaki church. Wellington. Reed, 1951.

  • REED, Arnold Wyclif. Auckland, city of the seas. Wellington. Reed, 1955.

  • RHODES, William Barnard. The whaling journal of Captain W. B. Rhodes. Barque Australian, 1836–38. Notes by C. R. Straubel, Christchurch. Whitcombe & Tombs, 1954.

  • SCOTT, R. G. The Parihaka story. Auckland. Southern Cross Books, 1954.

  • SINCLAIR, Keith. Maori land league. Auckland University College, 1950.

  • SMITH, R. A. Printing in Canterbury. A history of newspapers and printing houses. Christchurch Club of Printing House Craftsmen, 1953.

  • STEWART, George Gordon. The romance of New Zealand railways. Wellington. Reed, 1951.

  • WAKEFIELD, Edward Jerningham. Adventure in New Zealand. An abridgment by Joan Stevens. Christchurch. Whitcombe & Tombs, 195.

  • WATERS, SYDNEY DAVID. Union Line: A short history of the Union Steam Ship Company of New Zealand. Wellington. The Company, 1952.

HISTORY: WAR

  • WATERS, S. D. Ordeal by sea. N.Z. shipping in the Second World War, 1939–45. London. N.Z. Shipping Company, 1949.

  • The following have been published by the War History Branch, Department of Internal Affairs, Wellington.

  • BATES, P. W. Supply Company. 1955.

  • BORMAN, C. A. Divisional Signals. 1954.

  • BURDON, R. M. 24 Battalion. 1953.

  • CODY, J. F. 21 Battalion. 1953.

  • DAVIN, D. M. Crete. 1953.

  • GILLESPIE, O. A. The Pacific. (Official History of New Zealand in the Second World War.) 1952.

  • HALL, D. O. W. New Zealanders in South Africa, 1899–1902. 1949.

  • HENDERSON, J. H. R.M.T. 1954.

  • LLEWELLYN, S. P. Journey towards Christmas. (Official History of the 1st Ammunition Company, 2nd N.Z.E.F.) 1949.

  • MASON, W. W. Prisoners of war. 1954.

  • MC KINNEY, J. B. Medical units of 2nd N.Z.E.F. in Middle East and Italy. 1952.

  • NEW ZEALAND ARMY JOURNAL. Vol. 1, No. 1, 1954. Wellington.

  • Norton, F. D. 26 Battalion. 1952.

  • ROSS, John Macaulay Sutherland. Royal New Zealand Air Force. 1955.

  • SCOULLAR, J. L. Battle for Egypt. 1955.

  • SINCLAIR, D. W. 19 Battalion and Armoured Regiment. 1954.

  • STOUT, T. D. M. War Surgery and Medicine. 1954.

  • THOMPSON, H. L. New Zealanders with the Royal Air Force. 2 vols. 1953–56.

  • WAR HISTORY BRANCH. Documents relating to New Zealand's participation in the Second World War, 1939–45—

  • Vol. I. 1950.

  • Vol. II. 1951.

  • UNDERHILL, Rev. M. L., and others. New Zealand chaplains in the Second World War. 1950.

  • WATERS, Sydney David. The Royal New Zealand Navy.

Episodes and Studies

The following is the complete range of Episodes and Studies published by War History Branch, Department of Internal Affairs, Wellington, from 1948–55.

  • CLARE, B. G. Early operations with Bomber Command. 1950.

  • DEAN, H. R. The Royal New Zealand Air Force in South-East Asia, 1941–42. 1952.

  • FAIRCLOTH, N. W. New Zealanders in the Battle of Britain. 1950.

  • HALL, D. O. W. Women at war. 1948. Prisoners of Germany. 1949. Prisoners of Italy. 1949. Prisoners of Japan. 1949. Coastwatchers. 1951. Escapes. 1954.

  • KAY, R. L. Long range desert group in Libya, 1940. 1949. Long range desert group in the Mediterranean. 1950.

  • LLEWELLYN, S. P. Troopships. 1949.

  • MC GLYNN, M. B. Special service in Greece. 1953.

  • MC KINNEY, J. B. Wounded in battle. 1950.

  • MURPHY, W. E. Point 175. 1954.

  • ROSS, J. M. S. The assault on Rabaul. 1949.

  • SMITH, E. H. Guns against tanks. 1948.

  • THOMPSON, H. L. Aircraft against U-boat. 1950.

  • WARDS, I. MC L. Takrouna. 1951.

  • WAR HISTORY BRANCH STAFF. “The other side of the hill.” 1952.

  • WATERS, S. D. Achilles at River Plate. 1948. German raiders in the Pacific. 1949. Leander. 1950.

  • WHELAN, J. A. Malta airmen, 1951.

COOK AND OTHER ISLANDS

  • AIKMAN, Colin Campbell. First report on constitutional survey of the Cook Islands. Wellington Department of Island Territories, 1956.

  • COOK ISLANDS REGISTRAR OF CO-OPERATIVE SOCIETIES. Co-operation for the Maoris of the Cook Islands. Wellington. Government Printer, 1956.

  • CUMBERLAND, Kenneth Brailey. South-west Pacific. A geography. Christchurch. Whitcombe & Tombs, 1954.

  • DAVIS, Thomas R. A. H. Doctor to the islands, by Tom and Lydia Davis. London. M. Joseph, 1955.

  • EDEN, Allan William. Islands of despair … the subantarctic islands of New Zealand. London. Melrose, 1955.

  • MC CARTHY, Dennis Douglas (editor). New Zealand medical research in the South-West Pacific … Western Samoa, Rarotonga, and Pukapuka. Dunedin. Coulls, Somerville, Wilkie, 1954.

  • SIMPSON, Frank A. Chatham Islands. Wellington. Reed, 1950.

  • THOMAS, Marjory C. J. Forgotten islands of the South Pacific, by Rosaline Redwood (pseud.). (Solander, Codfish, Ruapuke, Macquarie, and Chatham Islands.) Wellington. Reed, 1950.

  • UNIVERSAL business directory for Pacific Islands. Auckland. Universal Business Directories, 1954.

SAMOA

  • CHURCHWARD, Spencer. A Samoan grammar. 2nd edition. Spectator Publishing Co., Melbourne, for Methodist Church of Australasia, 1951.

  • JAMES, Clifford Samuel. Diseases commonly met with in Melanes and Polynesia. Diagnosis, prevention and treatment. Auckland. Institute Print, 1956.

  • MARSHALL, Colin, and THOMPSON, T. S. Forestry in Western Samoa. Wellington. Government Printer, 1953.

  • SCHULTZ, E. Proverbial expressions of the Samoans. Translated by Brother Herman. Wellington. Polynesian Society, 1953.

  • STACE, Vernon Desmond. Western Samoa, an economic survey. Noumea. South Pacific Commission, 1956.

ROSS DEPENDENCY

  • THE ANTARCTIC TO-DAY. Compiled by members of the New Zealand Antarctic Society. Wellington. Reed, 1952.

  • GEOLOGICAL SOCIETY OF NEW ZEALAND ANTARCTIC RESEARCH COMMITTEE. Preliminary bibliography of the geology of the Ross Dependency, 1956 (duplicated). (These were followed by a series of geological and biological reports.)

  • ROSS SEA COMMITTEE. N.Z. Antarctic Manual, 1956–58. Scott Base, Ross Dependency.

(d) THE CONSUMERS' PRICE INDEX—1955 REVISION*

INTRODUCTORY.—The New Zealand Consumers' Price Index traces its origin to the setting up by Government in 1948 of an Index Committee “to investigate the need and method of establishing a revised cost-of-living index”. Retail price index numbers had indeed been compiled in this country since 1914, the actual period covered dating from 1907 or (as regards food and rent) from 1899, a few records going back even to 1891. The retail price index current in 1948 was the Wartime Price Index which had been commenced in December 1942, but had by then outlived the purpose indicated by its name. The previous index dating from 1930, even if not superseded by the Wartime Price Index, would by that time have been overdue for revision, and so the opportunity was taken of making a new start in New Zealand retail price index construction on a post-war basis.

The Index Committee set out in a parliamentary paper “Report of Index Committee” (H. 48, 1948) its detailed recommendations of the plan of the new index. These recommendations were adopted in full by Cabinet, and the Government Statistician was charged with the duty of implementing them. An account of how this was done was published as a Special Supplement to the October–November 1949 issue of the Monthly Abstract of Statistics, entitled “Retail Prices in New Zealand with Special Reference to the Consumers' Price Index”, and a briefer version was published in the 1947–49 Year-Book as Appendix E (pages 998–1016).

The 1948 Index Committee clearly contemplated the periodical revision of the index it had devised, and the first revision of this index was carried out by the Government Statistician during 1955 and 1956 in pursuance of the policy of flexibility laid down in paragraph 24 of the Committee's Report. The product of the revision is not a new index, though several changes have been introduced into it beyond the “overhaul of the weighting pattern” which the Committee stipulated apparently as a minimum requirement. In stating (paragraph 52 of the Report) that “the index should be completely revised” the Committee in 1948 left ample room for proceeding with all that has actually been done in the present revision without the index thereby losing its identity. The title “Consumers' Price Index” has accordingly been retained unamended.

NEED FOR REVISION.—It is generally the accepted practice to revise any retail price index every few years. The reason is that a price index is designed to measure current changes in the general price level of items making up a defined field of expenditure. Actually it provides the best estimate possible in the circumstances of such changes, but the details which make up the defined field of spending are themselves constantly changing. In the index, on the other hand, nothing but price changes are recorded. It is therefore standard practice to adopt for index purposes a selected list of stock items so chosen as to represent collectively the whole of the expenditure field in question, and to assign to these items estimates based on the best statistics available of their relative importance. The measures of relative importance are termed weights, and the complete list of items with weights assigned is known as the regimen of the index.

Both the actual list of items and their weights need periodical review if they are to remain fairly representative of current conditions. Fashions are constantly changing, and better means of satisfying human needs are constantly being discovered and placed on the market. In addition there is a general tendency for the standard of living to improve as more modern methods of primary production, manufacture and distribution, including increased mechanization, come into use. This will be reflected in new items being added to the regimen, as well as in specifications of improved quality in old items. Connected with this, there is a tendency to more liberal thinking on the part of index number statisticians, so that commodities lately regarded as luxuries become accepted as conventional necessaries, and are consequently accorded a place in the index. For example, whereas fifty years ago candles and kerosene were necessary items in the “lighting” section of a retail price index, for some decades now only electricity has been required. This is one example of substitution of items. Replacement of silk stockings by nylon stockings is another. On the other hand the introduction of telephones and radio-receiving sets may be regarded as adding to household usage amenities which did not previously exist. Liberalization is also instanced by the inclusion in retail price indices of refrigerators, washing machines, and private motoring. The addition of alcoholic liquor is a kindred example, but in this regard the remarks on page 1226 are relevant.

* This Appendix comprises extracts from the Special Supplement to the November 1956 issue of the Monthly Abstract of Statistics published under the same title, to which reference should be made for fuller details. See also page 967 of this Year-Book.

Not only does the list of commodities and services purchased by the average household change over a period of time, but the relative importance of items always included changes also. More milk and more fruit may be consumed because of publicity as to the protective values of these foods. Less meat may be eaten because of consumer resistance to high prices. Rationing and import control have obvious effects on quantities of goods available for purchase. Serious changes in consumption habits, whether sudden or cumulative, may, if ascertainable, force a limited ad hoc revision of the index, but in general a fixed-weight index does not between general revisions take notice of any such changes. Hence the need for periodical review.

It must not be assumed, however, that when during the currency of an index a need for revision is felt, the index numbers already calculated are discredited. For reasons discussed below, revisions cannot be undertaken too frequently; a pattern once established has to last a certain number of years. If this period is not too long the pattern may be assumed to remain reasonably correct for its duration. A new pattern may then be determined; but it is not usually desirable to use the new pattern to recalculate the index numbers back to the previous revision. (This can be done providing the prices of the new items introduced are known for the back years, but an index for a period twenty years ago calculated with today's weights will be no more accurate than one for today calculated with weights twenty years old.) If revision is definitely overdue, the old index numbers for perhaps a year or two prior to the revision must be regarded as subject to a certain margin of error, and in such a case the revised index may be worked back; but the usual view is that each index pattern (between revisions) was approximately correct for the period during which it was used and that to publish two index numbers for the one period would be confusing. An exception to this rule sometimes occurs, particularly in the case where the old index has been embodied in wage agreements which have still some time to run. In order to enable the “escalator” wage adjustments (on the basis of index changes) to continue being made, the old index may for a limited time be calculated and published alongside the new index.

The complete index then usually takes the form of a long term “linked series” with a link at each revision. It will be realized that any index must have not only a weight base, viz., the period for which the weights used were initially calculated, but also a comparison base, viz., the period the index number for which is arbitrarily equated to the base number (100 or 1000). It is not necessary to start off at each revision with a fresh figure of 1000, but the break in the weighting pattern should be clearly indicated. One way of doing this is by resetting any component group indices there may be at 1000 from the revision, but linking the all-groups indices into a continuous series.

FREQUENCY OF REVISIONS.—Some reasons why revisions of weighting of a Consumers' Price Index are usually made at infrequent intervals only are now advanced:

  1. Unless there is a considerable disparity in price movement as between different items in the index, weighting differences will have but little effect on the resultant all-groups index. It can be demonstrated that though accuracy in weights must not be neglected, it is of secondary importance to accuracy in prices.

  2. As already pointed out, new weights, while enabling more reliable estimates to be made of current price movements, fail to give any more accurate comparison with the previous base than the old weights have already done.

  3. Frequent breaks in continuity with the past are undesirable; for instance, even if the all-groups index numbers are linked, subseries such as the rent index would probably be broken at each revision. If the revisions were as frequent as five-yearly this would be embarrassing to users of the index who might wish to study the history of house rents over, say, twenty-five years.

  4. The most important consideration, however, is that a weighting revision is a major statistical task, involving at least some months of extensive research. In most countries the time runs into several years because a family budget survey is entailed.

There are, of course, alternative ways of determining weights, the more obvious being (a) family budgets and (b) studies in national average consumptions. For the first method certain families are selected and persuaded to record in detail their expenditure over a certain period. The families can then be classified by size, income, occupation of head, etc., and a weighting pattern built up for each category of family included in the survey. In the second method the weights are based on statistics of production, imports, and exports, and, by excluding quantities consumed otherwise than by households, estimates of average household consumption emerge. They do not, of course, take into account differences in living habits between different categories of families. It was this method that was employed in the original Consumers' Price Index, but for reasons to be explained the 1955 revision was not quite on the same basis. No family living survey was undertaken in 1948, but in 1955 advantage was taken of permission granted to the Department of Statistics to make use of a private budget inquiry conducted in 1952–53. Whatever method is used, lengthy and laborious research is required.

Notwithstanding what has just been advanced, the Index Committee which reported to Government in 1948 recommended revision every five years. (See Report of Index Committee 1948, paragraph 52.) The Committee also stated that the weights should be altered in the event of any marked changes in consumption of any item of importance, such as when a commodity was released from rationing* or when adequate supplies of an important commodity previously in short supply became available, as soon as it became clear that the change was more than a temporary fluctuation in consumption habits. This recommendation was, however, modified by the proviso that changes in weighting should be avoided unless circumstances demanded the immediate revision of the weight given to a particular item or items. In practice, such revisions of individual weights are technically difficult, and are resorted to only in most exceptional circumstances. Seven years instead of five were allowed to elapse before the revision was undertaken.

REVISIONS IN OTHER COUNTRIES.—New Zealand experience in retail price index revision may be compared with that of some other countries with a similarly high standard of living.

New Zealand

  1. The first retail prices “all groups” index numbers compiled in New Zealand were prepared after the First World War for the information of the Court of Arbitration. Where used, commodity weights were based on consumption statistics for 1909–13, but group weights were derived from a household budget survey taken in 1910–11. The indices were calculated back to 1914.

  2. In 1930 the index was revised using commodity weights mostly derived from figures of national consumption during 1926–30 and group weights provided by a household budget collection taken in 1930.

  3. The Wartime Price Index (on the base 15 December 1942) was current during the years 1943–48. Its weighting pattern was based on the 1930 budget inquiry and a further limited budget inquiry taken in 1938–39, revised according to estimates of wartime habits of consumption. The institution of this special index was not a normal revision, but comprised an integral part of the Government's plan for economic stabilization.

  4. A post-war index—the Consumers' Price Index—appeared in 1949. No household budget survey was used, the weights being based on consumption statistics for 1946.

  5. The latest revision of the Consumers' Price Index employs for group weights distribution statistics for the March year 1952–53, checked where necessary with consumption figures. Commodity weights are derived partly from consumption statistics and partly from a private household budget study made during the same period. The revision base, for which the new index numbers are equated to 1000, is the year 1955.

It thus appears that over a period of forty-one years of retail price index history in New Zealand four revisions have taken place. The average interval is practically identical with that recommended by the International Conference of Labour Statisticians in 1947.

United States of America

This is a large country where index number techniques are highly advanced, and retail price index numbers in particular are extensively used as a basis of “escalator” clauses in wage contracts. It is also a country subject to rapid changes in consumer habits.

  1. Publication commenced in 1919 of a retail price index calculated back to 1914 with weights based on a budget survey made in 1917–19.

  2. Improvements were introduced in 1935 on the basis of a further survey made in 1934–36.

  3. A complete revision on the same basis (1934–36 survey) was carried out in 1940.

    * Rationing was not completely abolished until 1950.

  4. The outbreak of the Korean war in 1950 interrupted plans for another complete revision and resulted in an “Interim Adjustment” being made, based on a survey of a few cities in 1947–49.

  5. The full-scale revision was effected in 1953 with 1950 weights.

Thus over a period of thirty-nine years there have been two complete and two partial revisions. New Zealand's record compares favourably with this.

Canada

Since retail price records were first published in 1910, four revisions have been undertaken. The current series, first published in 1952 and worked back to 1949, is based on a family expenditure survey taken in 1948–49.

United Kingdom

  1. The first official cost-of-living index (as it was then called) was started early in the 1914–18 war, being based on household budgets collected in 1904. This series was continued until 17 June 1947.

  2. From that date an Interim Index of Retail Prices with weights derived from family budgets collected in 1937–38 was introduced. The use of these budgets had been delayed through the 1939–45 war.

  3. In January 1952 the basis of the Interim Index was modified by the substitution of a series of weights based on the estimated pattern of consumption in 1950.

  4. An extensive household expenditure survey was carried out in 1953 with a view to providing weights for a new index, and in January 1956 the new series was duly inaugurated.

Australia

  1. The so-called “C” series index, first calculated in 1921 but worked back to 1914, is still being published. No family budget studies have been undertaken for this index. The food weights are based on consumption in 1927–29. Clothing weights are derived from the findings of a Royal Commission in 1921, somewhat modified in 1935.

  2. The “C” series index was indeed revised in 1936, but the weights were not redetermined, only ad hoc changes being introduced.

  3. In 1954 an Interim Retail Price index worked back to 1950–51 appeared. The weights employed are intended to represent recent consumption patterns. For instance, the weights of some of the main food items were stated to have been substantially altered to accord generally with average consumption in the years 1949–50 to 1952–53. It is intended to convert the Interim Retail Price Index into a final form as soon as certain further information becomes available. This will be derived from the 1952–53 Census of Retail Sales, supplemented by estimates of consumer expenditure on services, and as regards rents and housing from the Population Census of June 1954.

TIMING OF PRESENT REVISION.—The question of planning a revision of the New Zealand Consumers' Price Index came up for consideration in 1954, and preliminary work was commenced early in 1955. It was at once recognized by the Department of Statistics that circumstances were now in several respects more favourable than in 1948 for the following reasons:

  1. Since 1946 the Department's statistics of industrial production had been recast so as to afford a great deal more information as to production of individual commodities.

  2. The new Customs statistical classification brought into use in 1949 provided data regarding imports of many individual commodities which were formerly included under general headings.

  3. A Census of Distribution was taken for the first time in New Zealand covering the year ended March 1953. This supplied information not previously available as to wholesale and retail sales by commodity groups.

  4. Although no official family budget inquiry had been made since 1930 the New Zealand Public Service Association had conducted such an inquiry among its members during the March year 1952–53, and it was hoped that the Association would allow the Department to use the results of this inquiry in the index revision. This hope was fully realized.

With so much more material available, the revision afforded ample scope for extended research, and in cases where alternative approaches to the same problem presented themselves, a good deal of labour was expended in an attempt to reconcile the results. In a few cases full reconciliation was not achieved, and those figures which appeared to be the most reliable were accepted. The discrepancies mostly arose from differences in concept which impaired comparability.

As already mentioned, other countries have revised their retail price index numbers in recent years, and these revisions have provided ideas which have been of help—for example, in the grouping of the various items. In the case of new fields of expenditure introduced into the New Zealand index, the experience of other countries in relation to these fields was drawn upon.

It was felt, at the time the decision to revise the index was made, that economic conditions in New Zealand had settled down after the war-peace transition to a large measure of stability. The scarcity of consumer durable goods due to post-war supply and currency conditions was perhaps first eased in 1952–53. Economic stability is highly desirable for the base period of a price index: in a time of rapid price change a base consisting of averages over large price variations could be considered fictitious, the conditions represented by these averages never having really existed.

As matters eventuated, the year 1955 proved eminently suitable as a base period for pricing purposes. Between the first and fourth quarters of the year the existing Consumers' Price Index rose by only 1.1 per cent, corresponding increases in previous years being: 1954, 1.6; 1953, 4.5; 1952, 3.3; 1951, 10.3; 1950, 8.3; and 1949, 1.8 per cent.

Regarding other economic conditions, there were no abnormal increases during 1955 in the profits, wages, or incomes of any section of the community, although overall national income was still increasing at a fairly rapid rate, but this was partly due to increase in population. Wage-rates in particular were relatively stable during the year, no application for any general wage adjustment coming before the Court of Arbitration. Vacancies in industry remained at a consistently high level over the period. Goods and services in popular demand were freely available with perhaps the sole exception of motor-cars, but even in this regard record numbers of cars (40, 184 and 47,28 respectively) were imported in 1954 and 1955. The large volume and value of total imports, averaging approximately £24 million monthly (an all-time record) was in fact an outstanding feature of New Zealand economic affairs in 1955.

At the same time, attention must be called to the retention in the revision of the idea of a dual base. It has elsewhere been explained that while current prices can be collected without difficulty, current quantities are in general unknown at the time. Quantitative statistics are laborious to compile, and the results often become available only after a lapse of a year or two from the period to which they relate. Accordingly the original base of the Consumers' Price Index was: 1946 quantities costed at prices obtaining in the first quarter of 1949. Similarly the base of the revised Consumers' Price Index may be described as: 1952–53 quantities costed at average 1955 prices. The choice of 1952–53 quantities, i.e. quantities consumed during the year ended 31 March 1953, rested on several considerations:

  1. The period 1952–53 was that covered by the first Census of Distribution (so far the only one taken). It is true that this Census related only to values and not quantities; nevertheless, in conjunction with average 1952–53 prices which were available from departmental records, it could be made to throw valuable light on quantities used.

  2. The year ended 31 March 1953 was the period covered by the New Zealand Public Service Association's household budget inquiry, in which were recorded many quantities as well as values.

  3. By utilizing information from these sources the work of revision could be commenced early in 1955.

It is admitted that there may have been variations in consumption habits between 1952–53 and 1955, but in only a few cases are these considered significant. On the whole, the two periods (year ended March 1953 and year ended December 1955) were broadly comparable, but with the latter period showing some increase in sales of durable goods. Many of these sales were on hire-purchase, and the prevalence of this type of business led to the issue in July 1955 of regulations controlling it. In general, therefore, the determined 1952–53 pattern of spending was considered to hold good for 1955, this virtually includes the volume of private motoring which is based on registration of motor vehicles at 30 June 1953—there may be some underestimation of weights here. The few cases in which statistics of 1955 quantities were utilized include refrigerators, washing-machines, and electric razors, where the index weights representing annual replacements have been based on estimated 1955 stocks of these goods in households. Estimated usage of nylon piece goods was also brought in as registering the known fashion shift from rayon.

The 1949 base index had served its purpose well and enjoyed the confidence of all sections of the community. It continued to be quoted freely by both parties in wage negotiations, and its suitability as one of the criteria which the Court of Arbitration is required to take into account in the hearing of applications for General Wage Orders under Regulation 3 (3) (a) of the Economic Stabilization Regulations 1953, has not been seriously questioned. The construction of the index had proved to be well founded, and the principles underlying it had stood every test imposed. The revision therefore was regarded as a matter rather of routine than of urgency. For this reason the work of the revision was not hurried and ample time was granted for all researches found to be necessary. The work was spread over a period of about eighteen months.

GENERAL SCHEME OF REVISION.—Any modern revision of a retail price index has to follow a fairly well-defined routine, which includes substantially the following steps:

  1. Re-examination of the mathematical and technical methods used.

  2. Re-definition of the pattern of spending which the index envisages, including—

    1. The type of individuals or families considered; (e.g., the characteristics of race, location, family composition, income or social grouping);

    2. The fields of spending to be covered, with special attention to luxury consumption; and

    3. The treatment of such items as capital spending, savings, direct taxation, etc.

  3. Review of (i) the list of commodities and services to be priced periodically, and (ii) of the localities and specific stores, etc., where they are to be priced.

  4. Selection of the new weight-base period and of the new price-comparison base period if that is different.

  5. Exhaustive analysis of the approved pattern of spending over the chosen weight-base period, which may even involve an analysis into individual items where possible.

  6. Further review of the list of items to be priced in the light of this analysis with reference to the criteria—

    1. That each approved field of spending should be adequately but not excessively covered;

    2. That items previously included which have fallen into comparative disuse should be eliminated;

    3. That suitable inclusions should be made of new items or items of growing importance.

  7. Derivation from the expenditure analysis of index weights for individual items including decisions as to allowances for the weights of items not selected for pricing.

  8. Ascertainment of prices of all selected items for the weight-base period, including whatever averaging (in time or space) may be necessary.

  9. Assuming the adoption of the aggregate-expenditure formula, calculation of fixed weights by a series of simple divisions (expenditures divided by prices).

  10. Calculation of base aggregate expenditures from those fixed weights and prices collected for or averaged over the comparison-base period.

  11. Devising of any new techniques or methods found necessary or desirable in the course of the revision (e.g., redrafting of work-sheets).

  12. Determination of the scheme of presentation or publication of the results, including the method of linking with earlier index series.

From this point the revised index may be regarded as a going concern, the calculation of each current aggregate expenditure being exactly similar to that of the corresponding base aggregate. On this system each index number is a ratio of a current aggregate to a base aggregate multiplied by an arbitrary base number (usually 100 or 1000). (An efficient system of price collection must, of course, be in operation.)

In accordance with this general scheme the present revision broadly comprised, first, a review of the actual items included in the index (in other words the list of commodities and services to be priced periodically) and, secondly, a general re-determination of the index weights, which fix the habit of consumption to which the index relates (or, more exactly, the unchanging pattern of spending the changing cost of which the index aims to measure). In general, the habit of spending adopted was that of the average urban dweller living as a member of a family.

As to the choice of items, final decisions could be made only in the light of the detailed analysis of expenditure which constituted the major task of the revision. However, policy decisions as to the inclusion of new fields of expenditure were made at the outset; also tentative decisions as to new individual items. As 1955 was to be the price (or comparison) base of the revised index, any new items introduced required to be priced throughout that year, hence the early endeavour to forecast new inclusions. Nevertheless, in cases where the analysis when complete revealed the desirability of including additional items, it was possible to obtain in 1956 sufficiently reliable records of what prices were during 1955.

The analysis of expenditure which ultimately provided the commodity weights was worked up from three sources: (1) The Census of Distribution, 1952–53; (2) analysis of the Public Service Association household budgets 1952–53; and (3) statistics of goods available for use in New Zealand. This last source, which combined statistics of production, imports, and exports, with adjustments for supplies used otherwise than in households, was an extension of a regularly compiled statistical series and afforded some quantities as well as values. For food items particularly, quantities going into final consumption could be costed at retail prices; for most other goods import values or values at factory door had to be marked up by average margins to retail level. Of the three sources the last only was available when the former weighting diagram was designed in 1948.

Derivation of index weights, which are mostly expressed as physical quantities, from this expenditure analysis was in general effected by dividing 1952–53 expenditures by 1952–53 prices. First the expenditures were all put on a “per capita per annum” basis, even though not all the items were applicable to the whole population. For instance, expenditure on men's clothing was divided by total population, not by the number of adult males. The analysis was pursued if possible down to individual index items and compared with the expenditures implied in the existing index—i.e., index quantities before revision costed at 1952–53 prices. (References in this paragraph to 1952–53 prices mean average prices throughout the year ended March 1953 averaged also over all index towns.)

Some further explanatory remarks on weighting in general may be appropriate here. The revised, like the original, Consumers' Price Index employs Laspeyres' formula, except that the weighting base and the comparison base are separated. Thus the weights once ascertained are, unless in major emergencies, held constant until the next general revision. Broadening of base weights, whereby an index item attracts the weights of cognate extra-index items, is approved and freely practised. The principle adopted here is that, in the expenditure analysis, items which may be expected to have similar price histories are put together, and the total expenditure on such a block of items is divided by the price of one of them which has been selected as an indicator for the whole block. In such a case the resulting “fixed weight” will be fictitious as applied to the item to which it is ostensibly assigned, yet will when used as a multiplier in any subsequent pricing period yield a correct expenditure product for that period, provided that the basic assumption of similar price movements has proved correct. Thus it is that the final selection of items for pricing awaits the completion of the expenditure analysis for fields to be covered by the index.

The broad plan of revision has been described, but numerous ad hoc methods had to be devised as required. The whole construction of the expenditure analysis resembled the piecing together of an elaborate jigsaw puzzle, the component parts of which had first to be sought for in widely scattered hiding places. In particular, special treatment was necessary for the sub-groups Fruits, Vegetables, and Eggs; Home Ownership; and for the Transportation group. Some details of what was done in these contexts are now set out.

PROCEDURES OF PRESENT REVISION.—The model scheme of revision outlined earlier was closely followed. Some of the decisions made in this connection have already been stated, but a brief summary of the salient features of the revised index may be serviceable.

  1. The basic formula used is that of Laspeyres in its aggregative form.

  2. The index relates primarily to urban dwellers living as families.

  3. About 85 per cent of personal expenditure is now covered, compared with about 65 per cent before revision.

  4. The number of items regularly priced has been increased from 313 to 375 by discontinuing 39 of the old items and adding 101 new items.

  5. The revision base is: 1952–53 consumption costed at 1955 prices.

  6. Sources of group and commodity weights were (1) The Census of Distribution 1952–53; (2) household budgets collected in 1952–53 by the New Zealand Public Service Association; and (3) goods available for consumption.

  7. Prices are collected by field officers in twenty-three towns.

  8. A scientific sample of rents of houses and flats (other than those owned by the State) has been selected.

  9. Special techniques are employed for costs of owner-occupiers, for prices of seasonal fruits and vegetables, and for transport charges.

  10. Index numbers are compiled for food sub-groups including all food at monthly and for all groups at quarterly intervals.

  11. Individual town index numbers are published for twenty-one towns showing both all towns on a common base and each town on its own base.

  12. To provide a continuous series the previous all-groups and all-foods indices have been recalculated on a 1955 base.

In the following paragraphs the more important aspects listed above are discussed in fuller detail.

Fruits, Vegetables, and Eggs (Seasonal).—The Consumers' Price Index, instituted in 1949, included for the first time in this country a scheme for seasonal food items. An account of the method adopted is given on pages 17–18 of the booklet “Consumers' Price Index—1955 Revision”.

The same principles were followed in the 1955 revision of the Index—i.e., the method of equalizing monthly expenditures was retained. This method was preferred to that of monthly price corrections for individual items as used in connection with the Wartime Price Index. The latter equalizes the monthly expenditure on each item individually, the former only on the whole sub-group. On account of complementary movements in seasonal expenditures (e.g., on apples and eggs) the distortion of actual quantities is considerably reduced by equalizing only on the subgroup. In any case, where a seasonal commodity is off the market for one or more months of the year, the cruder method breaks down completely.

Firstly, the weight of the seasonal foods sub-group relative to other groups was determined. This was based on 1955 per capita quantities costed at 1955 prices. For consistency with other groups it should have been 1952–53 March year's per capita consumptions at prices projected from 1952–53 to 1955 by means of price movements of priced items. However, it seemed simpler to adhere to one year's expenditure, i.e., one year's quantities at that year's prices. The typical quantities which enter into the seasonal pattern could have been used instead of 1955 quantities of items in the regimen, but as consumers have probably a fixed expenditure habit, there will be an inverse correlation between quantities and prices, so that the prices and quantities used should be for the same year.

On the other hand, the monthly quantities and prices which define the seasonal pattern relate to an average season determined according to the best information available. The commodities to be included in the seasonal group and the months in which they are to be included were first established. The months are only those of flush supply. Out-of-season prices and expenditure on extra-index items, were however, included in the sub-group weight. In conformity with other parts of the index, home-grown supplies, though not actually purchased, were included as if they were purchased in the months of main supply. The prices entering into the seasonal pattern were averaged over the years 1949–54, after these had been adjusted for trend to the level of 31 December 1951, the mid-point of the series. The trend used in this adjustment was calculated from 1949 and 1954 prices only; for each seasonal commodity, however, it was the average of up to twelve estimates obtained by comparing corresponding months of those years in turn, the months being confined to months of full availability. Multiplying by average quantities, which may be taken to apply to the same period, twelve monthly aggregates were obtained which included two variants—(a) seasonal changes in quantities, and (b) seasonal changes in prices at average prices over the years 1949–1954, i.e., centred on 31 December 1951.

From this point the procedure diverged a little from that followed in 1949, some improved techniques being introduced but without in any way departing from the general principles previously laid down.

  1. Using the monthly quantities of the 1949–54 pattern a price index number was calculated for each month of 1955 taking the corresponding month of 1949–54 as base—i.e., the prices used were on the one hand the pattern 1949–54 prices and on the other actual 1955 prices.

  2. A mean 1955 price index number on the base 1949–54 was obtained as a simple average of these twelve monthly indices.

  3. This mean 1955 price index number was then used to adjust each separate price of the 1949–54 pattern so as to bring it up to a 1955 level. The prices so obtained are the “publication” prices which appear in Table 10 on pages 50 to 55 of the booklet “Consumers' Price Index, 1955 Revision”.

  4. Aggregates (i.e., aggregate expenditures) were worked out for the respective months of 1955, using the 1949–54 quantities and the 1955 “publication” prices. (The aggregates at 1949–54 prices were already calculated, and these had only to be adjusted each by the mean 1955 price index on base 1949–54 already in use.)

  5. Fixed index quantities, as shown in Table 10 of the booklet, were then derived from the 1949–54 quantities by the use of twelve multipliers, all the January quantities being multiplied by the January multiplier, all the February quantities by the February multiplier, and so on. Each multiplier was the ratio of the sub-group weight previously determined to the appropriate monthly aggregate just obtained (by costing the monthly 1949–54 quantities at 1955 “publication” prices).

  6. By the application of these procedures two cardinal results were achieved:

    1. The derived fixed quantities, in combination with actual 1955 prices, produced for the respective months of 1955 aggregates which averaged to the sub-group weight.

    2. The same fixed quantities in combination with 1955 “publication” prices produced for each month of 1955 an aggregate equal to the sub-group weight.

  7. Any current seasonal-group monthly index number is now calculated simply as (1000 times) the ratio of the aggregate obtained by costing the fixed index quantities for the month at current prices to the sub-group weight.

Rent Sample.—Radical changes in the method of treating the rent component of the index were introduced in the course of the revision, and a brief description of these variations now follows. For the pre-revision index, average rental figures for such accommodation as was currently occupied was accepted as an approximation to average rentals for fixed qualities of accommodation. In a postal collection such as this, no member of the Government Statistician's staff sees the actual dwellings. If they were personally visited, the quality of accommodation could be assessed and the dwellings classified accordingly, with corrections applied to rents of dwellings which failed to meet completely the specification assigned to any class. Under the old system of collecting rent returns from house agents it was not practicable to obtain sufficient information for such a method. But the greatest drawback to that system was the continual changing of the actual houses and flats comprised in the sample, which was indeed no planned sample at all but merely the aggregate of as many rented dwellings as could be traced. In these circumstances there could be no guarantee whatever of a constant quality of accommodation attaching to the calculated average rents. An alternative frequently proposed is a sample in which rents for identical properties are used in successive collections. Far from maintaining a fixed quality of housing, this method ensures that the quality in the sample steadily deteriorates by reason of age. This is of considerable importance in this country where the majority of the houses are built of wood and where building costs have changed rapidly. Houses recently built should therefore be brought into the index to maintain as far as possible a uniform age of rented houses, especially if, as is to be expected, higher building costs for the same quality of housing are reflected in higher rents.

Accordingly, an attempt was made to secure the advantages of a fixed sample and at the same time overcome its disadvantages. The sample frame used consists of the valuation rolls prepared by the Valuation Department for rating purposes. By means of random numbers, sample blocks of properties in the index towns were selected on a 7 per cent basis, and the rolls searched to find out which dwellings in these blocks, according to that Department's records, were tenanted. Application is made quarterly to the owner of each property thus located as to the rent charged. The number of rooms is also ascertained. From time to time the Valuation Department will supply information as to houses in the selected blocks which, previously owner-occupied, become tenanted; and also as to newly-erected houses which are tenanted. By this means, it is hoped, the sample will be kept up to date. As the valuers do not canvass all towns every year, corrections to average rents necessitated by these newly-tenanted houses will be subject to a certain time-lag. All newly-built tenanted houses will come at once under survey.

The rent sample does not cover State-owned houses. Rents of these on the basis of a complete coverage are collected from the State Advances Corporation as previously, but returns are no longer sought from the Public Trust Office. The distinction between houses erected under the State housing scheme and other rented houses owned by the State is abolished. The plan of nine dwelling categories in each index town is retained, and likewise the system of uniform weights in all towns for combining categories which differ only in the number of rooms, coupled with individual-town weights for combining privately owned houses with State houses and for combining houses with flats. The revised weights to be used for these purposes were based on the 1951 dwelling census results. The nine-category combined average rent for each town is by an appropriate multiplier converted into a rent aggregate comparable with other sub-group aggregates for that town. These twenty-one aggregates are themselves combined by the use of the same population weights as are employed elsewhere throughout the index; indeed the twenty-one nine-category average rents can, if desired, be combined in the same way.

Although ostensibly only houses of four, five, and six rooms are included in the rent index, a method has been devised whereby movements in rents of smaller or larger houses which have been drawn in the sample and are otherwise suitable for inclusion can be incorporated with movements in rents of houses within the defined categories, and similarly in the case of flats. This method does not apply to State houses or flats. Dwellings let furnished, let to employees or relatives or otherwise at uneconomic rentals, also, for example, transit and pensioners' flats, are excluded.

Within each of the 189 cells (nine in each of twenty-one towns) weighting factors are applied to individual rents which are derived from the respective sampling fractions. Each valuation roll has its own weighting factor, which is the ratio of the total number of assessments in the roll to the number of assessments in the sample blocks (including commercial properties, owner-occupied houses, etc., in both cases). Any newly-erected dwellings which are reported are given a weight of 1 (unity). State flats and privately-owned flats are still combined; for this purpose State flats have each a weight of unity. To the extent to which tenancy records incorporated in the valuation rolls may not be up to date, this formula leads to an overweighting of State flats; but the result is not thought to be serious.

As noted, rents are now ascertained quarterly instead of only twice annually, and this change applies to State rents also. The sample collection of rent information was initiated only in August 1955, and some use of the former house agents' rent series also was made in establishing a base covering the 1955 calendar year.

Home Ownership.—The Consumers' Price Index, which commenced in 1949, included for the first time the expenses of owner-occupiers as well as rents paid by tenants. The method used is outlined in pages 20–21 of the booklet “Consumers' Price Index, 1955 Revision”.

In the course of the present revision of the Consumers' Price Index special attention was paid to the housing group and some new methods were introduced. Between 1949 and 1956 movements in housing costs at first lagged behind, but latterly have overtaken retail prices in general, so that the effective current housing group weight prior to revision was not very different from the base weight. The extension of the field covered by the general index to include alcoholic liquor, private motoring telephone rentals, etc., has tended to lower all existing weights including the housing weight, but in the case of housing this tendency is offset by an upward revision of costs of owner-occupiers. The net result is a slight increase in the other housing percentage weight and a more pronounced drop in the rent percentage weight. Investigations have shown that the average owner-occupied house is larger and newer than the average rented house and, to make due allowance for these factors alone (and there are others), it would be necessary to assume a rental value 40 per cent higher in the former case than in the latter. However, in assessing owner-occupiers' costs the structure was in this revision built up by estimating each cost item separately and not by utilizing the fair-rents formula to analyze the total rental value, though this formula was used as a check on the results.

The resultant weights for the items of owner-occupiers' costs are as follows:

Percentage of Sub-weight GroupPercentage of All-groups Weight
Return on capital51.05.47
Depreciation18.21.96
Insurance2.30.25
Local authority rates12.21.31
Maintenance expenditure—
  Paint2.80.30
  Wallpaper0.60.06
  Other materials5.60.60
  Labour7.30.79
      Total, home ownership costs100.010.74

Costs of owner-occupiers are, in the main, treated as they were previous to the revision. The methods of calculating depreciation and return on capital have, however, been simplified. It is believed that owner-occupied properties change hands on the average every ten years. The average duration of present occupancy would therefore be only five years. Building costs and interest rates will both be taken over a period of ten years only for index purposes. Further, a fixed distribution by years of ownership to provide weights for ascertaining the average historical cost to the owner-occupier of his present residence is considered desirable. The old index used a changing distribution by years of ownership, based always on the numbers of houses erected in the various years; but as the amount of building fluctuated so did the average age of the house priced for the index, which is inconsistent with the principle of unchanging quality. In any case the use of numbers of houses built as weights was wrong, but no information is available as to the numbers changing hands. It has now been decided in order to obtain capital value for depreciation purposes to use the unweighted average of building costs over the last ten years. Building costs are used because no statistics are available of market values any more than of sales. Depreciation is reckoned on the average historical cost, not on present day market values, although considerable appreciation of property values has taken place in New Zealand in recent years.

There is not quite the same argument in favour of a fixed distribution of mortgages by elapsed duration as there is of property costs by elapsed period of owner-occupancy. As, however, refinancings will mostly coincide with transfers of ownership, it has been decided to use for return on capital an unweighted average of interest rates on new mortgages over the last ten years. Unfortunately house property loans cannot be segregated from other mortgages, but by excluding amounts secured over £4,000 a sufficient approximation will, it is believed, result. The amount on which interest at this rate is computed and included in the index as an expense to the owner is the value of the building as already calculated, plus 20 per cent thereof in every case as an allowance for the value of the land.

It will be observed that information on numbers of dwellings erected (or erected for owner-occupation) from year to year will no longer be required for index purposes; nor will the amounts secured by mortgage on residential properties from year to year or from quarter to quarter be used as weights. In any quarter, however, the average rate of interest used is virtually a weighted average of rates charged on new mortgages during that quarter weighted by the respective amounts secured at those rates.

As to local-body rates an attempt has been made through the Valuation Department to standardize, as between towns, the typical valuations on which these rates are calculated.

Previous to the revision, the rent sub-index moved only at half-yearly intervals and the “Other Housing” sub-index only annually. For the revised index, rent information is collected quarterly and so are most of the “Other Housing” costs (or Home Ownership costs as they are now called), viz., building costs for depreciation and return on capital, interest rates for return on capital, repairs and maintenance costs (including index numbers), and insurance. It was felt however that rates could not be granted similar treatment; the most that could be done was to spread the movement over the fourth quarter of any year and the first quarter of the year following. Accordingly, in the last quarter of each year the mean of the rates for the current and the previous rating periods will be used.

Transportation.—Prior to the revision, although public transport was suitably represented in the Services sub-group, only restricted notice was taken of private transport—viz., by way of cycle tires and tubes. The index now includes costs of private motoring as well as of cycling, and fares on urban transport, suburban rail travel, and taxis.

In general, the index prescribes only one pattern of expenditure which, reduced to fixed weights, is costed from time to time in every index town. But the application of this principle to transport produces obvious anomalies. A few cities have electric trams or trolley buses, all the index towns have omnibuses, but in some of the smaller ones public urban transport as a whole is relatively unimportant, while the popularity of cycling varies according to local topography. Accordingly, in the revised index a more realistic approach is made to this problem—i.e., the total transportation base expenditure weight is held constant for all towns, but the relative importance of the respective modes of transport is varied from town to town according to information supplied by the Transport Department. These inter-town variations are somewhat akin to the inter-month variations already in operation in connection with fruits, vegetables and eggs, but are even more closely related to the system of individual town weights used for the rent sub-index; only there the weights are relative numbers of pricing units (houses and flats) and here (originally) relative expenditures.

The items appearing in the index under Public Transport are: tram, trolley-bus, or bus fares (in one figure for each town), rail fares, and taxi fares; and under Private Transport: cost of car, petrol, lubrication, tires, repair jobs, licensing, and insurance (for motorists), and cost of cycle, tires, and tubes (for cyclists).

In working up the index weights the following plan was adopted: Figures were obtained from the Transport Department relating originally to total transport expenditure within a 15-mile radius from the centre of each index town dissected by mode of transport. Deductions from public transport expenditures in certain towns were made of estimated expenditures by visitors and through passengers, and the remainders were divided by 15-mile radius populations to give per head expenditures on the different modes of transport for each of the twenty-one towns. These figures were combined by the standard twenty-one-towns population weights to give averages over all the towns, which were compared with all New Zealand per head expenditures already calculated for the determined index coverage, the two series being brought on to a common time base. The latter series included proportions of recreational motoring and cycling expenses which were not in the former, and these expenses were admitted into the index weighting pattern with constant weights for all towns. Otherwise the all-modes, all twenty-one towns combined, expenditure per head was accepted as the base expenditure weight for each town, but apportioned pro rata over the various modes of transport for the particular town according to the first-mentioned calculation of per head expenditures. Increases were then made to each of three per-head expenditures in each town, viz., the (equalized) total expenditure, the included (varying) necessary motoring expenditure, and the included (varying) necessary cycling expenditure. By the addition of recreational motoring expenditure to the first two and of recreational cycling expenditure to the first and last, an equalized base expenditure for all towns was obtained. This still included a varying pattern of expenditure by modes of transport from town to town.

So far, the weights were expenditure weights and had to be converted to fixed item weights (price multipliers) by dividing by individual town prices, which in the case of public transport items are fares in pence per mile. For urban transport, specified journeys were carefully selected by the Transport Department so as to give an average fare which approximated very closely in 1955–56 to the average fare per mile over the whole local system in each town. Current fares for these selected journeys provide prices for index purposes. Rail fares are based on selected journeys and tickets, and taxi fares on a two-mile journey at standard rates. Prices of new cars and cycles, petrol, tires, standard repair job, etc., are collected as part of the normal price collection programme. The weights assigned to new cars and cycles represent annual replacements only.

As item weights are not constant for any item over all towns, individual town prices for any item cannot be combined by the use of the standard population weights, though individual town expenditures on any item may legitimately be so combined. The impact of this peculiarity on index number presentation is discussed in a later section, under the heading Calculation of Index Numbers of the Revised Series.

ITEMS COVERED BY REVISED INDEX.—The revised Consumers' Price Index is, like its predecessor, designed to measure changes in prices as applying only to the normal recurring expenses of members of the community living in families. It does not, for instance, include the special expenses of a summer holiday, so that no increase in such costs as the holiday rents of furnished cottages at the seaside will affect the index at all. Neither will any movement in hotel tariffs or boarding-house charges. Nevertheless, certain costs, changes in which were formerly unable to influence the index, will as a result of the revision be adequately represented.

In addition to the revision of the weighting of items included previously, new groups of items were included in the index in the light of changes in habits of consumption, and in conformity with the generally accepted practice of other countries, which is to make the consumers' price index more widely representative of actual habits of consumption. In particular, two important groups mentioned earlier, which were “border-line” cases when the previous revision was made, are now included in the index—namely, private motoring and alcoholic liquor. New Zealand is one of the three most highly motorized countries in the world; and accepted post-war index number practice in other highly motorized countries is to include this group. For example, Canada, the United States, and the United Kingdom now include it and, particularly in view of the wide distribution of motor cars among all sections of the community in New Zealand, it was thought that the time had arrived when this group should also be included in the New Zealand index.

Although in many pre-war consumer price index numbers alcoholic liquor was omitted, this group is now included in practically all consumer price index numbers—Australia and South Africa being the only notable exceptions. In recent revisions of the index numbers for Canada and the United States alcoholic liquor was included for the first time; in the United Kingdom and most European countries this group has long since been included. It was thought that the revised New Zealand index should follow accepted practice in this respect.

Other important new additions are the introduction into the regimen of telephone rentals, furniture insurance (net of claims), and replacements of refrigerators, pressure cookers, electric razors, watches, fountain pens, tennis racquets, bicycles, toys, gramophone records, etc. A comparative list of old and new items will be found in Table 6 on pages 34 to 39 of the booklet “Consumers' Price Index, 1955 Revision”.

It is stressed that the index is a price index; it rightly therefore excludes expenses such as taxation, gambling, and charity which are not related to value received. It also excludes capital outgoings, savings, and life insurance. There are now fewer exclusions than formerly on the ground of luxury, but the following costs may be mentioned as still on various accounts outside the scope of the index.

  1. Hotel accommodation, licensed and private.

  2. Long distance rail and bus transport.

  3. All sea and air transport.

  4. Legal fees, commissions on sales, etc.

  5. Gambling (see above).

  6. Church and charitable donations (see above).

  7. Private and boarding school fees.

  8. Music, elocution, dancing, etc., tuition fees.

  9. Instalment credit interest and similar financial charges.

  10. Personal accident insurance.

  11. Funeral directors' charges.

  12. Photographers' charges.

  13. Wages of domestic servants, jobbing gardeners, etc.

  14. Fees to chiropractors, herbalists, chiropodists, etc.

  15. Sundry licences (marriage, dog, etc.).

  16. Taxation (see above).

  17. Savings including amortisations of capital debts, investments, and life insurance.

  18. Spirits and wine (the index includes beer only).

  19. Jewellery and florists' goods.

  20. Durable goods other than replacements.

  21. Private holiday transport.

  22. Cost of removal to another locality.

As regards Item (20), prices of durable goods are taken into the index with a weight representing replacements only—i.e., excluding initial purchases and purchases to improve the standard of living; and as regards Item (21) the weights assigned to motoring and cycling costs exclude long-distance running.

These omissions from the index, which include additions to household stocks, amount to about 15 per cent of total personal consumption expenditure at 1955 prices.

A feature of the revision is the resolution not to reduce the weight attaching to any goods or services usually purchased, because in some cases they may be produced or performed without charge or at least at reduced cost. This principle applies specifically in the case of home-grown fruits and vegetables, home-produced eggs, farmers' meat, milk, and butter (in estimating national average consumptions), and so-called “do it yourself” jobs such as house painting and decoration. All these items have in any case to be priced for index purposes, but the price multipliers adopted have been calculated on the assumption that the goods or services in question are paid for in full. For the home gardener or handy-man the index aggregates will therefore be overstated but the index numbers will still apply generally to him, unless the costs he avoids paying move differently from index costs in general. The extension of the home owner's index expenses to cover interest on his total capital outlay is a somewhat parallel case.

REGROUPING OF ITEMS.—Reference to the tables on pages 1235 and 1237 will show that the complete index is now subdivided into six groups instead of five, and these into fifteen sub-groups instead of eleven (counting Fuel and Lighting in the earlier series as both a group and a sub-group). Index numbers of all these groups and sub-groups will be published for all towns combined, and of the six groups for individual towns and groupings of towns. Apart from those of the Miscellaneous group the former sub-groups are still retained. Fuel and Light, however, no longer enjoys group status, but becomes a sub-group of the new Household Operation group. This group also comprises the old Household Durable Goods sub-group renamed Home Furnishing, and a Domestic Supplies and Services sub-group made up of cleaning supplies from the old Other Commodities sub-group (together with some new items), and some services from the former Services sub-group (also with new items). The introduction of alcoholic liquor and private motoring has given rise to two new sub-groups, one in the Miscellaneous group, for Tobacco and Alcohol (tobacco coming from the old Other Commodities sub-group) and one in a new Transportation group for Private Transport, this taking in cycling as well as motoring. The balance of Transport from the old Services sub-group becomes as Public Transport a second sub-group—actually first in order—of this new Transportation group. Broadly, the remainders of the previous Other Commodities and Services sub-groups are left in the Miscellaneous group, the former with additions making up the new Other Supplies sub-group, and the latter, also with additions, the new Other Services sub-group. Clothing and Footwear as a group is renamed Apparel, and Other Housing as a sub-group Home Ownership.

A few individual items have been reclassified, e.g., matches are transferred from Fuel and Light to Tobacco and Alcohol, and electric light bulbs from Home Furnishing to Domestic Supplies and Services.

EFFECT OF WIDER COVERAGE.—As pointed out in the preceding section, the increase in the field covered has resulted in the formation of additional sub-groups of the index, and this in turn has involved some redistribution of existing component items. One effect of these changes is that the index numbers of the former Miscellaneous group and its sub-groups cannot be traced into the revised index. This partial loss of continuity must be regarded as a price paid for the improved coverage of the index, the observation applying with particular force to the all-groups' index numbers which now include the added sub-groups. The principle of linking consecutive series of all-groups indices has already been propounded (see page 1215), but some of the implications may profitably be enumerated at this point.

  1. The successive regimens are assumed to furnish a correct basis for index calculations during the respective periods for which they were used.

  2. In examining a long-term linked series it must be remembered that the basis, including especially the group weights, has been changed at each revision.

  3. If there is any period of overlap during which index numbers have been calculated from alternative regimens, those from the regimen more recently determined are to be preferred.

  4. As against all this, extensions of the regimen consequent on policy decisions to include fields of spending not previously surveyed for index purposes require further consideration. To the extent, however, to which such policy decisions are based on actual increased consumption in the newly included fields the foregoing remarks still apply.

  5. The reduction in the percentage weights of items or groups continuously included, con-sequent upon the broadening of the index coverage may therefore be either necessary, by reason of relative diversion of spending into new channels, or arbitrary—because merely of a changed concept.

  6. In either case movements in prices of basic items (e.g., food) will have less influence on movements in the all-groups index than formerly. This is important in any comparison between pre-revision and post-revision periods.

  7. Nevertheless, the admission of fresh price series into the index will affect the final index numbers only if, and then only in the measure in which, the new series move divergently from an index compiled without them. The addition of items marked by greater price stability than the body of previously included items will increase the stability of the total index (and conversely).

CHANGES IN PRICING ROUTINE.—The account of the Consumers' Price Index published in 1949 recorded the appointment of a small field staff attached to the Department of Statistics for price collection duties. This was a noteworthy advance in methods of price statistics, and has justified itself on every ground. For a time, indeed, some monthly prices were collected in all index towns outside Wellington by officers of the Department of Labour, this practice constituting a relic of earlier days, but from 1952 almost the full range of price collection was undertaken by field officers of the Department of Statistics. The chief exception apart from rents was the weekly collection of prices of fresh fruits and vegetables in nine towns outside Wellington, the agency for which was taken over by the Social Security Department.

From 1955, in connection with the revised index, the duties of departmental price collectors have been further extended in the following respects:—

  1. The quarterly collection of prices of clothing, footwear, furniture, hardware, and cleaning supplies has been widened to include three additional towns—viz., Gisborne, Wanganui, and Timaru—making a total coverage of thirteen towns instead of ten.

  2. The monthly collection of food prices in Wellington, which already reached to Lower Hutt, has been further enlarged to include Upper Hutt.

  3. Some suburban butchers' shops in Wellington, Christchurch, and Dunedin have been added to the list of establishments regularly visited. (Auckland suburbs were already adequately covered as regards meat prices.)

  4. The wider range of the index regimen has automatically increased the burden of price collection.

  5. As field officers are employed to follow up cases of non-response in the rent survey, the adoption of a rent sample has augmented the number of calls required since each rented dwelling in the sample now forms a separate inquiry. More frequent collections (quarterly instead of half-yearly) have further increased the labour entailed.

In addition, the services of officers of the Social Security Department (which are still availed of for the weekly collection of prices of fresh fruits and vegetables in towns other than Wellington) have been extended to include the three additional towns mentioned earlier.

The general duties of price collectors remain unchanged; the advantages of the personal approach are still clearly evident.

A list of the few inquiries not handled by price collectors, together with the actual sources of information, is now given.

Field of InquirySource of Information
House and flat rents (other than State)Owners by postal collection.
Property valuationsValuation Department.
State house and flat rentsState Advances Corporation.
Building costsInstitute of Valuers.
Rates of interestWorked up from Land and Deeds Registry returns.
Insurance premiumsState Fire and Accident Insurance Office.
Prices of building materialsDepartment of Statistics (index numbers).
Costs of building labourDepartment of Statistics (index numbers).
Postal, telegraph, and telephone charges, radio licencePost and Telegraph Department.
Urban transport faresTransport Department.
Suburban rail faresRailways Department.
Newspaper pricesNewspaper Proprietors' Association of New Zealand (Inc.).
Medical fees (outside social security)Health Department.

CALCULATION OF INDEX NUMBERS OF REVISED SERIES.—Weights having been fixed according to the principles elsewhere enunciated (see page 1220) the regimen of the index could be settled and the requisite prices being already available, the initial calculation of index aggregates could begin. The prices first used were 1955 prices (averaged over the twelve months, or four quarters, of the calendar year and over all the index towns), and the resultant expenditure aggregates formed the comparison base of the revised index, each group or sub-group aggregate and the all-groups aggregate being equated to an index number of 1000. The calculation was repeated with the same weights but using prices for the first quarter of 1956, and on comparing the new aggregates with the corresponding base aggregates (in practice multiplying each current aggregate by 1000 times the reciprocal of the corresponding base aggregate) the respective index numbers for the first quarter of 1956 (on a 1000 base for 1955) emerged. This procedure will be repeated periodically with the same reciprocals until the next revision of the index. The principle of keeping the weights fixed ensures that the index is truly a price index, as only changes in prices can cause changes in the aggregates from which the index numbers are calculated.

In all this the collection of reliable prices is pre-supposed. It is demonstrated that accuracy in prices is of greater importance than accuracy in weights, and if in this account of the revision greater stress is apparently laid on weighting than on pricing, it is only because no basic change was required in the system of personal price collection already in operation. The introduction of a revised list of items to be priced or the extension of an itinerary to include other stores in the same towns or even in other towns is a matter rather of detail than of principle. Correct prices are absolutely indispensable.

A further word may be added as to the comparison base of the index numbers. What is stated above applies to index numbers for all towns combined, but for individual town indices two courses are open. First, the current aggregate for any town may be compared with the corresponding base aggregate for the same town, producing so-called “each on each” index numbers. Secondly, it may be compared with the corresponding average-all-towns base aggregate producing “each on all” index numbers. The original Consumers' Price Index as published showed “each on all” indices only, but the revised index shows both “each on each” and “each on all”. Owing to the peculiar construction of the Transportation Group “each on each” Transportation indices are the same as “each on all”. It may be generally remarked that “each on each” price indices enable a comparison between towns of price movements since the base period, while “each on all” indices theoretically provide a comparison of price levels between different towns at the one time; but in making comparisons of the second kind the varying degree of applicability of the fixed regimen to local conditions from town to town is ignored. In general, one pattern of spending is prescribed for all towns. Inhabitants of Whangarei are supposed to purchase no more ice cream and no less woollen clothing than those of Invercargill. In the case of transport, however, different patterns for different towns have been allowed; hence, strictly there are no “each on all” Transportation indices, but the individual-town all-transport base aggregates having been equalized, “each on each” indices may be used for both purposes and can easily be combined to give “all on all” indices. As a rule individual town base or current aggregates and “each on all” index numbers, but not “each on each” index numbers, can be combined into all towns aggregates or index numbers, as the case may be, by weighting with standard population weights.

These standard population weights (for combining prices and “each on all” index numbers in the different index towns) have been revised to 1 April 1955, the general principles laid down in 1948 being maintained, i.e., the population of each index town (city or borough, not urban area) is increased by the population of adjacent smaller towns (boroughs or town districts). Those boroughs or town districts, with populations of less than 2,500, which are more than ten miles from an index town are, however, disregarded.

In allocating populations of small boroughs or town districts to index towns the following considerations have been taken into account: (1) distance, (2) means of communication, and (3) probable shopping habits of small-town residents.

The weights finally arrived at are shown in Table 13 on page 58 of the booklet “Consumers' Price Index, 1955 Revision”. It will be observed that there are three sets of weights, one for use where prices are collected in twenty-one towns, one where they are collected in only thirteen towns, and one where they are collected in only four towns. The totals of all three sets are identical, since if certain groups of prices are not collected in any town the population weight of that town is added to that of a town where they are collected. This is equivalent to saying that if the price of any item is not available in a certain town, that town appropriates the price of the same item from a town where it is available.

Although prices are collected in twenty-three towns (or twenty-four towns if Lower Hutt and Upper Hutt are counted separately), index numbers are compiled for twenty-one towns only, Wellington–Hutt and Napier–Hastings being treated as combined areas. Publication of the index numbers is made first (in brief) by press release, then (in greater detail) in the Monthly Abstract of Statistics, the Annual Report on Prices, Wages and Labour Statistics, and the Official Year-Book. These Departmental publications show (1) Sub-group, group, and all-groups index numbers for all towns combined at quarterly and annual intervals; (2) Food sub-group and all-food index numbers for all towns combined at monthly intervals; (3) Group and all-group index numbers for individual towns and groupings of towns at quarterly and annual intervals, and (4) All-food index numbers for individual towns and groupings of towns at monthly intervals. In future the individual-town indices will as noted be published each on its own base as well as each on the all-towns base.

TABLES AND GRAPHS

The following pages exhibit a series of tables and graphs relevant to the revision of the Consumers' Price Index. The table headings, supplemented by explanations included at appropriate places in the foregoing pages, will be sufficient to render the figures intelligible.

With regard to the two graphs, however, some additional remarks may be made at this point. These both display in pictorial form the long-term series of index numbers set out in the table immediately following the second graph. The difference between them lies in the choice of the vertical scale on which the successive index numbers are plotted. The horizontal scale represents units of time in uniform graduations in each case.

The vertical scale of the first graph is also in uniform graduations, so that a given vertical movement represents the same increase in index points in any part of the chart.

On the other hand the vertical scale of the second graph, is in logarithmic graduations, the effect of which is that a given slope represents the same percentage per annum increase in any part of the chart. Each of the movements (from 200 to 300, from 400 to 600, from 600 to 900, etc.) occupies the same vertical space, because each represents the same relative increase (50 per cent). If each of these increases occurred in the same period of time, the average slopes of the respective parts of the curve would all be the same.

To translate a geometrical slope as in the second graph into an actual percentage per annum movement the graduations up the right and along the top of the chart should be referred to. In a few cases sloping lines are drawn across the graph. These all converge to the lower left-hand corner of the diagram, and other lines can be drawn to this point as required. No lines of slope are shown for decreases, but these can be judged by reversing the angle of slope.

A very important caution is that these increases in percentages per annum are reckoned at compound interest, not simple interest. Thus an increase from 200 to 300 in fifty years implies an annual increment rate of 1 per cent at simple interest, but of only just over 3/4 per cent at compound interest, and this latter rate is what the graph shows.

Other features of these charts, e.g., the distinguishing of two war periods, are self-explanatory.

RETAIL PRICES INDEX NUMBERS (ALL GROUPS) (LONG-TERM LINKED SERIES) EQUATED TO BASE: YEAR 1955 (= 1000)

Annual Average Index Numbers

YearIndex No.
1907308
1908309
1909305
1910309
1911307
1912316
1913322
1914332
1915357
1916383
1917415
1918449
1919482
1920539
1921547
1922503
1923507
1924520
1925531
1926534
1927529
1928532
1929531
1930519
1931479
1932443
1933420
1934427
1935442
1936457
1937488
1938503
1939523
1940547
1941567
1942586
1943599
1944610
1945618
1946624
1947643
1948695
1949706
1950746
1951828
1952892
1953933
1954976
19551,000

INDEX NUMBERS OF RETAIL PRICES OF THE VARIOUS GROUPS OF COMMODITIES, SINGLY AND IN COMBINATION: AVERAGE OF THE FOUR CHIEF CENTRES, 1891 TO 1914

Base: Average annual aggregate expenditure, four chief centres, 1909–13 (= 1000)

YearGroup I, GroceriesGroup II, Dairy ProductsGroup III, MeatGroup I–III, Food GroupsGroup IV, RentGroups I–IV, Food and RentGroup V, Fuel and LightGroups I–IV, Food, Rent, and Fuel and Light
1,891 806864 683   
1,892 835866 696   
1,893 828896 734   
1,894 817939 750   
1,895 842898 769   
1,896 825892 785   
1,897 830855 806   
1,898 847923 818   
1,899919840905896831873  
1900948838899906874894  
1901971876909928905920  
19021,016892919954922943  
1903983897933946928940  
1904962882935935945939  
19051,062878975990971983  
19061,0729149771,0039961,001  
19071,016955989993987991975989
19089991,020971994992994988993
1909973958980972990978993980
19101,014970977991990991981990
1911968993995983987985980984
19121,0221,0291,0011,0171,0071,0131,0121,013
19131,0231,0501,0471,0371,0261,0331,0351,034
19141,0551,0541,1361,0821,0361,0661,0571,065

INDEX NUMBERS OF RETAIL PRICES OF THE VARIOUS GROUPS OF COMMODITIES, SINGLY AND IN COMBINATION: 1914 TO 1949

Base: Weighted average of prices in 1926–30 in twenty-five centres in case of Groups I to IV, and average of prices in 1926–30 in four chief centres in case of Groups V, VI, and VII (= 1000)

YearFoodRent (IV)Fuel and Light (V)Clothing, Drapery, and Footwear (VI)Miscellaneous (VII)All Groups Combined (I–VII)
Groceries (I)Dairy Produce (II)Meat (III)All Food (I–III)
1914 (July)624719759703535585686601628
1915770802832803538593746646676
1916769880908857541637871712724
19178369339829205537281,031794786
19189419681,0389855667821,216898850
19199821,0251,0681,0275818521,476975912
19201,2061,1841,1141,1656131,0131,6531,1311,019
19211,2281,2579541,1346801,1311,5091,1531,034
19221,1009858139587241,0451,2741,103952
19231,0431,0098629657929981,1731,055959
19241,0601,0539201,0058599851,1391,033984
19251,0441,0431,0081,0309129931,1111,0151,004
19261,0471,0459941,0269621,0021,0601,0131,010
19271,0151,0109379831,0001,0051,0171,0331,001
19281,0331,0069791,0041,0141,0119951,0021,006
19299739991,0521,0131,0199929809861,004
19309329391,0339741,007991947986981
1931891807834845953987869986906
1932857722747775844958814973838
1933819661714732766890816976795
1934845666796774758841832973808
1935899749846835774865828980837
1936878801912870804887837993864
19379459021,0039568289249151,050923
19389339401,0759918589649361,054951
19391,0679991,0771,0528879919601,086990
19401,0391,0101,1531,0769161,0051,0611,1701,035
19411,1561,0101,1311,1049451,0121,1591,2111,073
19421,2361,0231,1151,1279631,0211,2431,2891,109
19431,2111,0291,1501,1349731,0331,3471,3371,134
19441,2411,0301,1681,1529821,0381,4131,3591,155
19451,2311,0321,1731,1519871,0441,4421,4421,170
19461,2351,0331,1741,1539991,0571,4701,4501,180
19471,3331,0711,2491,2241,0101,0941,4921,4781,217
19481,4951,1351,4711,3821,0241,1911,6371,5571,314
1949 (1st quarter)1,4801,1251,5061,3891,0311,2321,6591,5441,324

WARTIME PRICE INDEX

Base: 15 December 1942 (= 1000)

Year15 March15 June15 September15 December
19431,0111,0009961,001
19441,0051,0011,0031,004
19451,0061,0051,0011,003
19461,0091,0071,0071,008
19471,0131,0271,0321,085
19481,1031,1101,0981,107

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS (ALL GROUPS), TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

FoodHousingFuel and LightingClothing and FootwearMiscellaneousAll Groups
Meat and FishFruits, Vegetables, and EggsOther FoodsAll FoodRentOther HousingAll HousingClothingFootwearClothing and FootwearHousehold Durable GoodsOther CommoditiesServicesAll Miscellaneous
Calendar year—
19491,0561,0081,0151,0231,0001,0001,0001,0171,0001,0111,0029979981,0041,0001,009
19501,1311,0671,1441,1231,0141,0321,0251,1351,0271,1481,0451,0131,0071,0451,0211,066
19511,3551,2651,2761,2921,0521,0721,0641,2351,1901,2691,2021,1531,0391,1171,0911,183
19521,5901,4701,3281,4231,1201,1651,1471,2711,2701,3691,2851,1631,1261,1781,1521,275
19531,7551,5881,3661,5091,1811,2431,2191,3661,2961,4241,3161,1651,1471,2241,1771,333
195419021,4661,4971,5871,2511,3221,2931,4801,3591,4871,3781,1601,1471,2871,1981,395
195519951,4301,5401,6241,3091,4161,3731,5061,3901,5261,4111,1361,1421,3221,2021,429
Quarter ended—
1949—
31 March1,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
30 June1,0069781,0201,0071,0001,0001,0001,0011,0001,0031,0019989981,0009991,002
30 September1,1019921,0271,0379991,0001,0001,0281,0051,0181,0079959971,0019981,014
31 December1,1161,0611,0111,0479991,0001,0001,0399961,0221,0009939961,0151,0021,018
1950—
31 March1,0671,0481,0101,0321,0081,0321,0221,0429951,0691,0069891,0021,0351,0111,020
30 June1,1001,0311,1241,0971,0081,0321,0221,0911,0161,1561,0371,0031,0011,0411,0151,052
30 September1,1501,0911,2041,1661,0211,0321,0281,1991,0331,1791,0551,0171,0161,0471,0271,087
31 December1,2061,0981,2381,1991,0211,0321,0281,2081,0631,1881,0821,0411,0081,0581,0321,105
1951—
31 March1,2321,0711,2471,2041,0391,0721,0591,2121,0881,2161,1071,0891,0151,0581,0461,121
30 June1,2951,1771,2871,2641,0391,0721,0591,2371,1751,2451,1861,1511,0241,1231,0861,169
30 September1,3981,3001,2921,3191,0651,0721,0691,2621,2281,2891,2371,1941,0521,1371,1121,207
31 December1,4961,5111,2771,3821,0651,0721,0691,2291,2691,3251,2771,1791,0641,1491,1191,237
1952—
31 March1,5141,4121,2951,3731,0981,1651,1381,2521,2711,3381,2811,1771,1201,1491,1421,253
30 June1,5451,4831,3241,4131,0981,1651,1381,2721,2671,3631,2821,1641,1221,1831,1521,270
30 September1,6071,5061,3421,4421,1411,1651,1551,2771,2691,3791,2861,1561,1251,1831,1521,284
31 December1,6941,4791,3521,4621,1411,1651,1551,2821,2731,3951,2911,1561,1361,1951,1611,294
1953—
31 March1,7041,4321,3551,4551,1601,2431,2101,2911,2831,4011,3001,1621,1461,2251,1771,307
30 June1,7201,5301,3561,4821,1601,2431,2101,3511,2951,4241,3141,1671,1461,2241,1771,322
30 September1,7691,5851,3681,5121,2021,2431,2271,4021,2951,4351,3161,1641,1491,2281,1791,337
31 December1,8291,8041,3861,5851,2021,2431,2271,4221,3131,4371,3321,1671,1471,2181,1761,366
1954—
31 March1,8531,4601,4591,5531,2371,3221,2881,4691,3291,4591,3491,1771,1511,2821,2021,377
30 June1,8711,5371,5021,5981,2371,3221,2881,4801,3601,4881,3801,1811,1601,2881,2081,400
30 September19071,4941,5151,6041,2651,3221,2991,4841,3691,5001,3881,1451,1391,2891,1921,402
31 December19771,3721,5141,5931,2651,3221,2991,4851,3781,5011,3971,1361,1381,2901,1901,399
1955—
31 March19791,3581,5331,6011,2971,4161,3691,4841,3841,5041,4021,1381,1391,3221,2021,418
30 June19651,5021,5491,6331,2971,4161,3691,4971,3911,5151,4091,1311,1401,3221,2001,432
30 September19921,4731,5381,6321,3211,4161,3781,5191,39311,5281,4131,1351,1411,3221,2021,434
31 December2,0431,3861,5391,6251,3211,4161,3781,5251,3941,5561,4181,1391,1491,3201,2051,434

REVISED CONSUMERS' PRICE INDEX.—GEOGRAPHICAL COVERAGE AND PERIODICITY OF PRICE COLLECTION

GroupPeriodicity of CollectionDate of CollectionTowns Covered
Food (excluding seasonal fruits and vegetables)Monthly15th of MonthTwenty-one towns.
Seasonal fruits and vegetablesWeeklyEvery FridayThirteen towns.
Housing—
Rents: Houses and flatsQuarterly15th of February, May, August, NovemberTwenty-three towns.
Home Ownership: Paper and paintQuarterly15th of February, May, August, NovemberFour chief centres.
Other Materials, labour, return on capital, depreciationQuarterly15th of February, May, August, NovemberOne town.
InsuranceQuarterly15th of February, May, August, NovemberTwenty-one towns.
RatesAnnually15th of NovemberTwenty-six towns.
Household Operation—
Fuel and lightMonthly15th of MonthTwenty-one towns.
Home furnishing: AppliancesQuarterly15th of February, May, August, NovemberFour chief centres.
Furniture, floor coverings, household textiles, utensils and equipmentQuarterly15th of February, May, August, NovemberThirteen towns.
Domestic supplies and services, excluding dry cleaning and launderingQuarterly15th of February, May, August, NovemberThirteen towns.
Dry cleaning and launderingQuarterly15th of February, May, August, NovemberFour chief centres.
ApparelQuarterly15th of February, May, August, NovemberThirteen towns.
Transportation—
PublicQuarterly15th of February, May, August, NovemberTwenty-one towns.
Private: MotoringQuarterly15th of February, May, August, NovemberTwenty-one towns.
CyclingQuarterly15th of February, May, August, NovemberFour chief centres.
Miscellaneous—
Alcohol and tobaccoQuarterly15th of February, May, August, NovemberTwenty-one towns.
Medical and health suppliesQuarterly15th of February, May, August, NovemberOne town.
Educational, cultural and recreational supplies, toilet paper, razor, watch, caseQuarterly15th of February, May, August, NovemberFour chief centres.
Personal goods not included aboveQuarterly15th of February, May, August, NovemberOne town.
Other servicesQuarterly15th of February, May, August, NovemberFour chief centres.

REVISED CONSUMERS' PRICE INDEX.—NUMBER OF PRICES COLLECTED ANNUALLY AND USED IN THE INDEX

GroupNumber of Towns in Which CollectedNumber of Quotations
MonthlyQuarterlyAnnually
1A Meat and Fish211,128 13,536 
1B Fruits, Vegetables and Eggs132,632 31,584 
1C Other Foods212,133 25,596 
      Total: Food    70,716
2A Rent23 1,0504,200 
2B Home Ownership26,21,4,1 33158 
      Total: Housing    4,358
3A Fuel and Light21 3781,512 
3B Home Furnishing13 or 4 1,0664,264 
3C Domestic Supplies and Services13 or 4 218872 
      Total: Household Operation    6,648
4A Clothing13 1,6676,668 
4B Footwear13 4731,892 
      Total: Apparel    8,560
5A Public Transport21 66264 
5B Private Transport21 or 4 3271,308 
      Total: Transportation    1,572
6A Tobacco and Alcohol21 2781,112 
6B Other Supplies4 or 1 2521,008 
6C Other Services4 100400 
      Total: Miscellaneous    2,520
      Total: All Groups    94,374

INDEX (DETAILED)

NOTE.—Where more than one reference to a subject is given, the chief reference, wherever it has been possible to determine it, is indicated by bold type. Two or more references to a subject so indicated signify major, and approximately equal, importance.

A

Abortion, 105, 116, 121, 127.
Accident Funds, 615.
Accident Insurance, 606, 920–924, 1194.
State, 933–934.
Accidents—
Aircraft, 107, 123.
Cases Treated in Hospitals, 123.
Causes of, 1095.
Deaths from, 65, 101, 106–108, 113, 391, 416, 602, 610, 1094–1095, 1097–1101.
Farming, 108.
Frequency Rates, 1092, 1100.
Industrial, 1045–1050, 1091–1103.
Mining, 108, 602, 610, 1091–1103.
Motor-vehicle, 65, 101, 106, 107, 113, 123, 413–417.
Railway, 107, 123, 391, 415, 1092, 1095, 1098–1100.
Time Lost Through, 1097–1101.
Tramway, 107, 415.
Transport, 106, 107, 123, 415–417.
Acclimatization of Fishes, 7, 592–593.
Accommodation Licences, 1146–1150.
Accommodation, Subsidised, 153–154.
Accounts, Public, 782–796.
Accounts, Sector, 740–759.
Acreage and Yield of Crops, 517–534, 1176.
Acreage of Holdings, 446–447.
Acts Passed in 1956, 1153–1155.
Added Value in Manufacturing, 617–624, 636–637, 639, 641, 645–661, 1184.
Administration, 24–26.
Cook Islands, 1109–1110.
Niue Island, 1115.
Western Samoa, 1118–1120.
Adolescent Dental Service, 132.
Adoptions, 77.
Adult Education, 195–196.
Adultery, 84, 86.
Advances—
Bank, 856, 858–863, 1189.
Bank Control Policy, 862–863.
Building Societies, 904–908.
Rural, 460, 897–904.
State (see State Advances and State Aid).
Advertisements, Medical, 128–129.
Advertising by Radio, 439–444.
Aerated Water and Cordial Industry, 620, 649.
Aerial Surveys, 422, 470.
Aerial Work Operations, 422.
Aero Clubs, 425–426.
Aerodromes, 275, 427.
Afforestation, 555–562, 564, 582–584.
Bondholders, 908.
Companies, 564, 908.
Age Benefits, 200, 202, 203–205, 222, 1006.
Age Distribution, 58.
Ages of—
Aliens, 44.
Cancer Decedents, 104.
Infants Dying, 95–96, 114.
Injured Employees, 1096.
Inmates of Mental Hospitals, 160.
Maoris Dying, 111, 114.
Migrants, 37.
Mothers or Parents, 72, 73, 75, 76.
Offenders Probationed, 255.
Patients in Public Hospitals, 119.
Persons Dying, 90–93, 111, 114.
Persons Married, 81–82.
Population, 58.
Prisoners, 261.
Public School Pupils, 172, 177, 179.
Tubercular Decedents, 102.
Aggregation of Incomes, 948.
Agricultural and Pastoral Production, 479–554, 1176, 1177.
Persons Engaged in, 1071.
Value of, 479–485.
Volume of, 481, 485.
Agricultural Machinery, 515–517, 623, 661.
Agricultural Produce—
Consumed Locally, 482, 705–707.
Exported, 310, 312, 327, 330–331, 482.
Gross Farming Income, 479–481.
Agricultural Workers Act, 1022–1024.
Agriculture, 479–534.
Department of, 510–511.
Research in, 510–512, 521–522, 533–534.
Aids, Artificial, 221–222, 223.
Aids, Nursing, 141.
Air Force, 273–276, 278, 281–282.
Casualties, 279, 282.
Expenditure on, 276, 788.
Air Mails, 419–425, 427–428.
Air Training Corps, 275.
Air Transport and Aviation, 273–276, 281–282, 418–428.
Aircraft, 275–276, 418–428.
Accidents, 107, 123.
Licensing and Control, 418–427.
Aitutaki Island, 2, 1108, 1110.
Alcoholic Liquors—
Consumption of, 706.
Duty on, 358–361, 797, 800.
Exports of, 310, 312, 342.
Imports of, 334, 352.
Sale of, 1146–1150.
Alexander Turnbull Library, 1204.
Aliens, Naturalization and Registration of, 41–47.
Alps, 4–5.
Ambassadors, 1168, 1170, 1171.
Ambulance, St. John, 144.
Amortization of Debt, 148, 787, 791, 825–827, 842.
Amputees, 227.
Amusement Tax, 797, 810, 812, 1141–1144.
Angling, 591–593.
Animal Life, 14.
Animals, Noxious, 559.
Annual Holidays Act, 1013.
Annuities, 222, 233–239, 916.
Ante-natal Services, 153.
Anthracite, 602.
Antimony Ore, 592, 598.
Antipodes Islands, 2, 1107.
Anzac Day, 1013.
Apiaries or Apiculture, 529, 553–554.
Apparel, Duty on, 358.
Apples, 519, 530–532.
Consumption of, 705.
Exported, 310, 312, 327, 330, 331.
Fixation of Prices of, 489–490.
Marketing of, 489–490.
Apprentices, 286, 1041–1044, 1067.
Appropriation, Expenditure under, 787–788.
Arbitration (see Industrial Conciliation and Arbitration).
Area—
Of Land Holdings, 446, 447.
Of New Zealand, 1–3, 59, 446.
Of Properties Transferred, 452–454.
Of Provincial Districts, 48.
Top-dressed, 528–529.
Under Crops, 517–534, 1176.
Under Cultivation, 447, 519–534.
Armed Forces—
Casualties in, 278–282.
Demobilization of, 291.
Honours Conferred, 1163.
Overseas at Census Dates, 31.
Pay and Allowances, 721, 730, 735, 736.
Serving Overseas, 267, 269, 272, 275–277.
Strengths of, 269, 273, 276, 278, 1058.
Army, 270–273, 277–280.
Expenditure on, 273, 788.
Arrivals (see Migration).
Arson and Incendiarism, 930.
Art Unions, 1150–1151.
Articles on Special Subjects in Previous Issues, 1203–1204.
Artificial Aids, 221–222, 223.
Artificial Limbs, 222.
Asbestos 599.
Assessable Income, 806, 937–959.
Assessment of—
Income Tax, 801–807, 937–957.
Land Tax, 804.
Land Values, 474–475.
Assets of—
Bankrupts, 1137, 1193.
Banks, 856, 858, 867–868, 875, 1189.
Building Societies, 908.
Companies, 960–961.
Electric-power Undertakings, 692.
Factory Industries, 638–639.
Fire Insurance Companies, 925–926.
Friendly Societies, 241.
Life Assurance Companies, 919.
Local Government, 844–845.
Atafu Islands, 2, 3, 1126–1128.
Atiu Island, 2, 1108, 1110.
Auckland—
Broadcasting Stations, 440–442.
Building Values, 676.
Climate, 11, 13.
Houses and Flats, New State, 678.
Population, 51, 52, 55.
Sales Tax Receipts, 814.
Shipping, 329, 354, 370, 372–376.
Trustee Savings Bank, 874, 875.
Urban Transport, 392, 396–399.
Auckland Islands, 2, 1107.
Audit of Expenditure, 782–783.
Australia—
Birth and Natural Increase Rates, 70.
Consumption of Foodstuffs, 705, 707.
Debt Domiciled in, 821, 847, 1186.
New Zealand Representatives in, 1167.
Population, Annual Average Increase, 33.
Prices in, 966.
Reciprocal Trade with, 363–364.
Representatives in New Zealand, 1169.
Social Security Reciprocity with, 198, 199, 200, 214–215.
Automobiles (see Motor Vehicles).
Aviation and Air Transport, 273–276, 281–282 418–428.

B

Bachelors Marrying, 80.
Bacon and Ham, Consumption of, 705.
Bacon and Ham Curing, 620, 646.
Balance of Payments, 760–781.
Capital Account, 760–761, 765, 768, 770, 772–775.
Current Account, 760, 762–764, 769, 771, 773, 774.
Merchandise Transactions, 766–767.
Regional Accounts, 767–775.
Survey of Companies with Overseas Affiliations, 775–781.
Balance of Trade, 295.
Bananas, 491, 1112, 1114, 1117, 1124.
Consumption of, 705.
Imports of, 341, 352, 355.
Bank Notes, 853–858, 865–867, 882–883.
Denominations of, 867, 883.
In Circulation, 865–867, 876, 1189.
Bank of New Zealand, 818, 827, 857.
Banking and Currency, 853–886, 1189, 1190.
Banking and Insurance Sector Account, 745, 754.
Bankruptcy, 1032, 1135–1140, 1193.
Banks, Overseas Assets of, 858, 867–868.
Banks, Savings—
Post Office, 871–873, 879–880, 1190.
School, 873–874.
Trustee, 874–875.
Barley, 519, 520, 521, 524, 533.
Exports of, 310, 312.
Beds, Hospital, 151, 152.
Beef—
Cattle, 541.
Cattle Farms, 543.
Chilled, 330, 331, 503–505, 541, 548.
Consumption of, 704, 705.
Export of, 330, 331, 548, 549, 550.
Slaughterings, 548, 645.
Beer—
Consumption of, 706.
Duty on, 358, 359, 361, 786, 797, 800.
Production of, 649.
Bees, 553–554.
Benefits, Social Security, 132, 164, 200–224, 716, 727, 730, 794.
Bentonite, 595, 607, 609.
Beverages, Production of, 625–643, 649.
Bibliography—
General, 1205–1213.
New Zealand Flora, 13–14.
Bills, Treasury, 816, 822.
Births, 62, 66–78, 1173.
Excess of, over Deaths, 48, 63, 69.
In Cook Islands, 1110.
In Niue Island, 1115.
In Western Samoa, 1120.
Of Maoris, 62, 109–110.
Biscuit Industry, 620, 648.
Bitumen-surfaced Roads, 400.
Bituminous Coal, 599, 601, 602.
Blind, Benefits for and Education of, 175, 208, 214, 286.
Board of School Children, 184.
Board of Trade, 306.
Bobby Calves, 549.
Boilers, Inspection of, 1104.
Bonds, National Savings, 815, 875–876.
Boroughs, 829–852.
Area of, 55–56.
Bridges in, 400.
Capital and Unimproved Values, 477.
Debt, 844, 847, 1188.
Employees of, 852.
Housing, 669, 678, 838.
Milage of Streets, 400.
Population, 55–56.
Borstal Institutions, 248, 251, 257, 258.
Boundaries of New Zealand, 1–3.
Bounty Islands, 2, 1107.
Bread, Price Fixation of, 962.
Bread Subsidy, 507.
Breeding Bulls, 541.
Breeding Ewes, 534–538.
Breeding Sows, 534, 536, 547.
Breweries, 620, 649.
Brick Production, 657.
Brides and Grooms, 80–82.
Bridges, 382, 400.
Bridle-tracks, 400.
Brigades, Fire, 563, 932.
British Countries, Representatives in New Zealand, 1169–1171.
British Nationality, 41.
British Phosphates Commission, 2, 827, 1129.
British Postal Orders, 431.
British Preference, 361–365.
British Sovereignty, 3.
British Trade Representatives, 1171.
Broadcasting, 439–445.
For Schools, 188, 442.
Time Signals, 442, 1152–1153.
Bronze Coinage, 881.
Building, 662–680.
Building and Construction Sector Account, 752.
Building, Construction, and Housing, 662–680, 897–904.
Persons Engaged in, 1058, 1062.
Wages of Employees, 996, 1001.
Building Costs, 663.
Building Materials, 663–666.
Imports of, 336, 665–666.
Building Permits, 663, 672–679.
Building Societies, 904–908.
Deposits, 876, 880, 906, 908.
Bulk Purchase Agreement, 492, 495, 502, 505.
Bullion, Exports of, 309, 311, 330, 331, 595, 1180.
Bullion Production, 7, 595–596.
Bureau of Industry, 1145.
Burials, 87, 129.
Bursaries, 126.
Dental, 132, 191.
Ex-servicemen's, 189, 191, 288.
Medical, 191.
Physical Education, 186.
Post-primary Teachers', 186.
Secondary Schools, 183.
Servicemen's Dependants, 288.
Technical Schools, 183.
University, 189–192.
Bush, 13–14, 448, 555–561, 577–581.
Bushel Units, Weights of, 519.
Business, Census of, 708.
Business Failures, 1032, 1135–1140, 1193.
Business Loans, 289–291, 900–902.
Butter (see Dairy Produce).
Butterfat Production, 544–546, 646, 1183.
Butterfat Yields, 544.
By-elections, 1146.

C

Cabinet, 25–26.
Cable Tramways, 392.
Cables, Ocean, 435.
Cadets—
Army, 272.
Navy, 268.
Calf-skins Exported, 310, 311, 325, 330, 331, 1182.
Calves Slaughtered, 548.
Campbell Island, 2, 30, 1107.
Camps, Health, 130, 144.
Canada—
Consumption of Foodstuffs, 705, 707.
Exchange Rate with, 885.
New Zealand Representatives in, 1168.
Population, Annual Average Increase, 33.
Prices in, 966, 967.
Reciprocal Trade with, 364–365.
Representatives in New Zealand, 1169.
Canadian Pacific Air Lines, 424–425.
Cancer, 65, 101, 102–104, 112, 120, 164, 212.
Candle and Soap Industry, 622, 655.
Canned and Preserved Meats, Production of, 645.
Canned Fish, 589.
Imports of, 341, 352.
Canned Fruits, 649.
Consumption of, 706.
Canned Meat Exported, 310, 311, 322, 330, 331, 375.
Canned Vegetables, 310, 312, 649.
Consumption of, 706.
Canterbury Agricultural College, 169, 171, 188, 192, 287.
Capital—
Expenditure of Government, 790.
Invested in Electric-power Undertakings, 685, 688–691.
Invested in Factories, 638–639.
Invested in Railways, 382, 1192.
Invested in Telegraph Construction, 431.
Invested in Telephone Construction, 433.
Invested in Urban Transport, 395, 397.
Of Banks, 853, 857.
Of Joint-stock Companies, 908–912.
Capital Formation, 718–725.
Capital Issues Control, 864.
Capital Sector Account, 745, 759.
Capital Transfers, 869, 870.
Capital Value of Land, 473–478.
Rating on, 835–837.
Capitation Scheme, Social Security, 217.
Cargo Carried by Air Transport, 419–425.
Cargo Handled at Ports, 368–377.
Carnegie Corporation, 194–195.
Carpets and Rugs, Imports of, 344.
Carton, Paper Bag, etc., Industry, 653.
Casein Exported, 310, 311, 330. 331.
Casein Produced, 545, 646.
Cash Order Trading, 711.
Cassiterite, 598.
Casualties in War, 278–282.
Casualties, Shipping, 380.
Catchment Boards, 564, 829–852.
Cattle, 534, 541–543, 1177.
Cattle Hides Exported, 310, 311, 325, 330, 331, 1182.
Cattle Slaughtered, 548.
Causes of—
Accidents, 1095.
Deaths, 64–65, 95–109, 112–115, 164.
Fires, 930.
Industrial Disputes, 1087–1088, 1090.
Infant Mortality, 97–99.
Maori Deaths, 112–115.
Mental Illness, 158–159, 161.
Still-birth, 99.
Cement, 609, 612.
Carried on Railways, 389.
Exports of, 309, 311.
Imports of, 346, 353.
Industry, 623, 657.
Cemeteries, 129.
Census, 27, 31, 47–57, 59–61, 75, 961.
Employment Statistics, 1058.
Of Agriculture, 447, 513–514, 518, 529, 536.
Of Distribution, 708.
Of Dwellings, 61, 669.
Of Poultry, 61, 552.
Unemployment Statistics, 1059.
Central Reserve Bank (see Reserve Bank).
Cereals, 517–524, 1176.
Consumption of, 707.
Certificates—
Dentists' Practising, 141.
Engine-drivers', 1104.
Land Titles, 450–451.
Marine Officers', 378–379, 1021.
Medical Practitioners', 140.
Mine Officials', 614, 1018.
Naturalization, 41–43.
Occupational Therapists', 142.
Opticians', 143.
Physiotherapists', 142.
Teachers', 174.
Certification of Seed, 525, 533–534.
Certification of Trades, 174, 1044.
Charitable Aid, 149–150, 153.
Charitable Institutions, 145–154.
Chatham Islands, 2, 435, 1130, 1213.
Schools, 171, 184.
Cheese (see Dairy Produce).
Chemicals and Chemical Products Industry, 622, 625–643, 655–656.
Chemists, Registration of, 143.
Child Hygiene, 129–131.
Child Migration, 39.
Child Welfare, 129–131, 144, 175, 192–194, 253.
Childbirth, Accidents, etc., of, 65, 97, 99–100, 101, 105–106, 113, 116, 121, 127.
Children—
Adopted, 77.
Affected by Divorce Proceedings, 87.
Allowances in Respect of, 198–237.
Backward, 130, 170, 192–194.
Born, Numbers and Rates, 62, 67–69, 110.
Born, Sexes of, 70–72, 78, 110.
Crippled, 144, 183.
Dental Treatment of, 131.
Fathers' Income Group, 952.
Intellectually Handicapped, 154.
Legitimated, 76.
Medical Inspection of, 130.
Offences by, 192–194, 253–254.
Under One, Deaths of, 65–66, 90, 91, 94–99, 113–115, 1173.
Children's Courts, 192–194, 253–254.
Children's Homes, 153, 194.
Chilled Beef, 503–505, 541, 548.
Chinese, 1120, 1130.
Christchurch—
Broadcasting Stations, 440–442.
Building Values, 676.
Climate, 11, 13.
Houses and Flats, New State, 678.
Population, 51, 52, 56.
Sales Tax Receipts, 814.
Urban Transport, 392, 394–396.
Churches, 83.
Cigarettes and Tobacco—
Duty on, 357, 359, 361.
Imports of, 334, 342, 352.
Production of, 532–533, 620, 625–643, 650.
Cinematograph Film-hire Tax, 786, 797, 812.
Cinematograph Theatres, 1140–1144.
Cinnabar, 598.
Cities, Population of, 52, 55, 56.
Citizenship, 41.
Citrus Fruits, 491, 519, 530–532, 1112, 1114.
Consumption of, 705.
Imports of, 352, 355.
Civil Aviation, 418–428.
Civil Law Cases, 243, 244–245.
Civil List, 23, 25, 787.
Claims, Insurance, 913–936.
Clays, 595, 609.
Clearings, Bank, 864.
Clergy of Each Church, and Marriages by, 83.
Climate, 4–5, 10–13, 1107, 1115, 1118.
Clinics—
Ante-natal, 153.
School Dental, 131.
Venereal Disease, 117.
Clocks, Public, 1153.
Closing Hours of Shops, 1016.
Clothing and Footwear, Retail Prices of, 965.
Clothing, Imports of, 335.
Clothing Industry, 620–621, 650–651.
Clothing, Subsidy on, 506.
Clover Seed (see Grass and Clover Seed).
Club Charters, 1147.
Clubs, Aero, 425–426.
Clubs, Agricultural, 185.
Clubs, Rifle, 273.
Clubs, Working-men's, 240.
Coal—
Carried on Railways, 389, 390.
Consumption of, 604, 632, 698.
Exports of, 309, 311, 330, 331, 595.
Production of, 595, 599–606.
Public Ownership of, 594.
Resources, 600–601.
Subsidy on, 506, 738.
Coal Mines Act, 594, 1018–1019.
Coal Mining, 594, 599–606.
Strikes, 1086, 1087.
Wages of Employees, 997, 1000.
Welfare and Research Fund, 615.
Coastal Shipping, 371, 374–377.
Coastal Vessels Registered, 378.
Coast Line, 4.
Coin Held by Banks, 856, 858.
Coin Imported and Exported, 305, 1178.
Coin in Circulation, 876.
Coinage and Currency, 881–883.
Colleges—
Agricultural, 169, 171, 188, 192, 287, 514.
Military, 271.
Naval, 268.
Pharmacy, 144.
Teachers' Training, 169, 174, 175, 185–186.
University, 169, 171, 174, 182, 188–192.
Collieries, 599–606.
State, 604–606.
Commerce, Overseas, 292–377, 1178–1182.
Commercial Failures, 1032, 1135–1140, 1193.
Commodities, Consumption of, 701–707.
Commodity Sales, Retail, 710.
Community Centres, 145, 196.
Companies—
Assets of, 960–961.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Bank Advances to, 861.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Co-operative Dairy, 544.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Deposits with, 876, 880.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Financial Statements, Analysis of, 912.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Income of, 721–738, 939, 954–960.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Joint Stock, 908–912.
In Manufacturing Industries, 639.
In Manufacturing Industries, 639.
Overseas, 910, 911, 925, 928.
In Manufacturing Industries, 639.
Paid-up Capital, 960.
In Manufacturing Industries, 639.
Private, 910–912.
In Manufacturing Industries, 639.
Registered, 908–912, 1193.
Share Price Indices, 980–985.
Taxation of, 199, 805–806, 939, 954–957.
Comparisons with Other Countries—
Birth and Natural Increase Rates, 70.
Cinema Attendance, 1142.
Consumption of Foodstuffs, 707.
Dairy Produce Consumption, 705.
Death Rates, 64, 90.
Expectation of Life, 94.
External Trade Per Head, 295.
Health Insurance, 1006.
Infant-mortality Rates, 66, 94–95.
Marriage Rates, 79.
Population, Annual Average Increase, 33.
Prices, 966–967.
Telephones to Population, 432.
Unemployment Insurance, 1006.
Compassionate Allowances, 224.
Compensation, Workers', 1045–1050, 1091–1094.
Compulsory Insurance, 935, 1048.
Compulsory Unionism, 1037–1038, 1076.
Conciliation Councils, 1006, 1036–1041.
Concrete Products Industry, 623, 658.
Confectionery Industry, 648.
Confinement, Deaths in, 65, 97, 101, 105–106, 113, 121.
Confinements, 71, 74, 76.
Conjugal Condition of Persons Marrying, 80.
Conjugal Rights, Restitution of, 84, 85.
Conservation of Forests, 555.
Conservation of Soil, 564, 789, 790.
Consolidated Fund, 199, 785–789, 796–799, 1185.
Constitution, 20–26.
Of Local Districts, 830–832.
Construction, Building, and Housing, 662–680, 897–904.
Wages of Employees, 996, 1001.
Consuls, 1168–1171.
Consumer Credit, Survey of, 711–714.
Consumers' Goods, Imports of, 336, 337, 338.
Consumers' Price Index, 967–971.
1955 Revision, 1214–1237.
Consumption of—
Coal, 604, 632, 698.
Commodities, 701–707.
Electricity, 398, 681, 692–693.
Farm Produce, 481–482, 523, 549, 551, 704–707.
Motor Spirits, 409.
Wool, 539, 650.
Contact Lenses, 221.
Contagious Diseases, 65, 97, 98, 101, 112, 116–121, 127.
Contractors' Liens, 1031.
Contributory Negligence, 1049.
Control of—
Bank Advances, 862–863.
Capital Issues, 864.
Exchange, 300–302, 869, 883–884.
Exports, 305, 486.
Imports, 305–306, 358–359.
Poultry, 553.
Prices, 962–964.
Rivers, 789, 790.
Convictions—
For Drunkenness, 247, 248, 249, 252.
For Traffic Offences, 247, 248–249.
Of Juveniles, 253–254.
Of Maoris, 252–253.
Of Women, 252.
Convictions in Magistrates' Courts, 245–249, 252, 1175.
Convictions in Supreme Court, 250–251, 253, 1175.
Cook Islands, 1–3, 40, 233, 1107–1114.
Bibliography, 1213.
Exports to, 332–333.
Imports from, 354–355.
Population, 30, 1110.
Public Finance, 1114.
Radio Stations, 435, 1113.
Trade, 1113–1114.
Co-operative Credit Associations, 903.
Co-operative Dairy Companies, 544.
Copper Ore, 597.
Cordial and Aerated-water Industry, 649.
Corn Crops, 519–521.
Correspondence Classes, 171, 181–182, 185.
Cosmetics, Manufacture of, 656.
Cost of Living, 962–971.
Bonuses, 1027.
Costs—
Railway Construction, 382, 790, 1192.
Roading, 402–407, 790.
Council, Defence, 265.
Council, Dental, 141.
Council, Executive, 25.
Members of, 1157–1158.
Council, Fire Service, 841, 932.
Council for Educational Research, 194–195.
Council for Scientific and Industrial Research, 511.
Council, Legislative, Abolition of, 21.
Council, Medical, 140–141.
Council, Medical Research, 140.
Council of Adult Education, 195.
Council of Legal Education, 189.
Counties, 829–852.
Area of, 53–54.
Bridges in, 400.
Building Values, 677.
Capital and Unimproved Values, 477.
Debt, 844, 847, 1188.
Employees of, 852.
Milage of Roads, 400.
Population, 52–54.
Country Lands, Mortgages on, 890–891, 893, 900.
Courts—
Appeal, 243, 246, 252, 1162.
Arbitration, 244, 986, 988–990, 1006–1044, 1162.
Bankruptcy, 1135–1136.
Children's, 192–194, 253–254.
Compensation, 244, 1047–1049, 1162.
Divorce, 84.
Judges of, 1162.
Land Valuation, 244, 454, 474–475, 1162.
Magistrates', 244–245, 246–249, 252, 253, 1175.
Maori Appellate, 463.
Maori Land, 463.
Supreme, 84, 85, 243–244, 245–246, 249–253, 1175.
Cover, Fire, 926.
Cow Testing, 510, 514.
Cranes, Inspection of, 1104.
Crayfish, 587, 589, 590.
Cream, Consumption of, 704.
Cream Separators on Farms, 515.
Credit, Consumer, Survey of, 711–714.
Credit, Letters of, 873.
Credit, Rural Intermediate, 903.
Creditors' Petitions, 1136.
Crematoria, 129.
Crews of Overseas Vessels, 36, 37.
Crime, Law and, 243–264, 1175.
Criminals, Habitual, 259.
Crippled Children, 144, 183.
Crops, 447, 517–534, 1176.
Research, 511–512.
Crown Lands, 448, 455–462, 792.
Rates Paid to Local Authorities, 841.
Crown Tenants, 456–459.
Cultivation, Area Under, 447, 519–534.
Cupro-nickel Coinage, 881.
Currency and Banking, 853–886, 1189, 1190.
Customary Land, 462.
Customs, Representative Overseas, 1168.
Customs Tariff and Revenue, 355–367.
Customs Taxation, 355–367, 727, 786, 797, 799–800.

D

Dairy Cows, 516, 534, 541–543, 1177.
Dairy Farms, 513, 542.
Dairy Industry, 479–490, 495–502, 515–516, 541–546, 620, 646, 861, 1000, 1022–1024.
Dairy Industry Stabilization Account, 506.
Dairy Produce, 495–502, 543–546.
Bulk Purchases of, 495.
Carried on Railways, 389, 390.
Consumption of, 704.
Export of, 308–313, 323–324, 330, 331, 375, 486, 495–497, 704, 1180.
Factories, 543–546, 646.
Fixation of Prices, 495–502.
Grading of, 510, 544.
Gross Farming Income, 479–481.
Marketing of, 486, 488.
Prices Paid for, 495–502.
Production of, 543–546, 646.
Subsidy on, 506, 507.
Dairy Products Marketing Commission, 488, 495–502.
Dairying Machinery, 312, 515–516.
Damage (Earthquake and War) Insurance, 795, 935–936.
Daylight Saving, 1152.
Death Duties, 727, 786, 797, 807–809.
Estates Passed for, 1133–1135.
Death Penalty Abolished and Restored, 251.
Deaths, 64–66, 69, 87–109, 111–115, 120, 391, 416, 602, 610, 1173.
Accidental (see Accidents).
Distribution Over Year, 90.
Due to Earthquakes, 10.
Foetal, 78.
From External Causes, 106–108.
From Puerperal Causes, 65, 100, 101, 105–106, 113, 121.
In Cook Islands, 1110.
In Hospitals, 120–122, 151.
In Mental Hospitals, 162–164.
In Niue Island, 1115.
In Western Samoa, 1120.
Inquests on, 255–256.
Neo-natal, 90, 95–100, 113–115.
Of Friendly Society Members, 241.
Of Infants, 65–66, 90–100, 111, 113–115, 1173.
Of Insured Persons, 915–918.
Of Maoris, 64, 109, 111–115.
Of Servicemen Overseas, 88, 278–282.
Violent, 65, 101, 106–108, 113, 256, 416, 602, 610.
Debenture Tax, 805.
Debentures, 815, 845–848, 875, 1186.
Debits, Bank, 864.
Debt, Conversion of, 819–821, 851.
Debt, Location of, 821, 847, 1186.
Debt of Local Government, 150, 828, 845–851, 1187, 1188.
Debt, Public, 787, 815–828, 1186.
Debtors' Petitions, 1136.
Deceased Persons Estates, 1133–1135.
Decrees in Divorce, 84–87.
Deeds Registration, 451, 887.
Defence, 265–282.
Council, 265.
Expenditure on, 269, 273, 276, 727, 788.
Fund, 796.
Science, 265–266.
Sector Account, 745, 756.
Degrees, University, 140, 188.
Demobilization of Servicemen, 291.
Demography, 30–61, 1172, 1173.
Density of Population, 59.
Dental Benefits (Social Security), 132, 221, 223.
Dental Services, Hygiene, etc., 131–133, 141, 221.
Department of Agriculture, 510–511.
Department of Health, 125–126.
Department of Scientific and Industrial Research, 511–512.
Departments, Government, 26, 1131, 1157–1158, 1163–1165.
Departures (see Migration).
Dependants of Soldiers, Pensions for, 225–233.
Dependent Children, Care of, 175, 192–194.
Deposits—
By Insurance Companies, 913, 924–925.
Interest Rates on, 877–880.
With Building Societies, 876, 880, 906, 908.
With Local Authorities, 880.
With Reserve Bank, 855.
With Savings Banks, 871–876, 1190.
With Trading Banks, 859–860, 876, 879, 1189.
With Trading Companies, 876, 880.
Depreciation Allowances, 638, 716, 725, 749–757, 801.
Depreciation of New Zealand Currency, 884.
Desertion, 84, 86, 205.
Desertion, Ship, 247, 1021.
Designs, Registration of, 1144, 1145.
Detention, Reformative, 193, 251, 258, 259.
Diagnostic, Laboratory, Services, 220–221.
Diagnostic, X-ray, Services, 219, 223.
Diagrams and Graphs—
Balance of Payments—
By Monetary Areas, 772.
Changes in Overseas Direct Investment, 777.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Banking, 859, 866, 868.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Building Permits, 674.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Butterfat Production, 546.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Cows in Milk, 546.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Dairy Production, 546.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Electricity Consumption, 693.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Exports, 299.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Factory Production, 637.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Imports, 299.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Infant Death Rates, 96.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Life Assurance, 913, 920.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Mortgages, 896.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Motor Vehicles Licensed, 409.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Motor-spirits Consumption, 409.
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
National Income and Expenditure—
Expenditure, 722.
Private Income, 733.
Private Outlay, 723.
Note Circulation, 866.
Overseas Assets of Banks, 868.
Pigs, 546.
Price Indices, 981, 1231, 1232.
Production, 522, 546, 637.
Rates of Interest on Mortgages, 896.
Retail Prices Indices, 1231, 1232.
School Population, 173.
Share Prices Indices, 981.
Taxation Revenue, 799.
Trading Banks, 859, 868.
Union Membership, 1077.
Vital Statistics, 70, 103.
Wheat Production, 522.
Dietitians, 142–143.
Diphtheria, 65, 97, 101, 116, 117, 127, 130.
Diplomas, 140, 174, 190.
Diplomatic Representatives, 1167–1171.
Disabilities from Industrial Accidents, 1091–1101.
Disabled Servicemen, 225–233, 286.
Discharged Soldiers Settlement, 282–291, 460–462, 902.
Discount Rates, 877–878.
Disease, Prevention of, 130.
Diseases, Notifications of, 116–118, 127.
Diseases, Principal, Deaths from, 65, 100–106, 112–114, 120–121.
Diseases Treated in Hospitals, 119–121.
Diseases, Tropical, 1111, 1116, 1121, 1127.
Disengaged Persons, 1071.
Displaced Persons, 39.
Disputes, Industrial, 1025, 1036–1041, 1081–1090.
Dissolution of Parliament, Dates of, 1161.
Distribution, Census of, 708.
Distribution of Population, 47–57.
By Ages, 58.
By Industries, 1058–1067.
By Occupational Status, 1058.
Distribution of Private Income, 730–738.
Distribution Statistics, 708–714.
District High Schools, 171, 180–182, 187, 1174.
Districts—
Electoral, 27, 1160.
Income Tax, 954.
Land, 448, 455.
List of Local, 829.
Local, 829–852.
Roads Councils, 401–402.
Dividends, Bankruptcy, 1137.
Dividends, Totalizator, 811.
Divorce, 84–87.
Divorced Persons Remarrying, 80, 82.
Domains, Public, 448–449.
Domestic Assistance, 214, 220, 223.
Domestic Income and Output Table, 743–744, 747.
Domicile of Debt, 821, 847, 1186.
Dominion Laboratory, 611–614.
Drainage Districts, 829–852.
Dredging, Gold, 596.
Drivers' Licences, 408, 841.
Drowning Accidents, 106.
Drugs, 128, 217.
Drunkenness, 84, 86, 247, 248, 249, 252.
Ducks, 552.
Dunedin—
Broadcasting Stations, 440–442.
Building Values, 676.
Climate, 11, 13.
Houses and Flats, New State, 678.
Population, 51, 52, 56.
Sales Tax Receipts, 814.
Shipping, 329, 354, 370, 372–376.
Trustee Savings Bank, 874, 875.
Urban Transport, 392, 396–399.
Duties—
Customs and Excise, 355–367, 727, 786, 797, 799–800.
Death, 727, 786, 797, 807–809.
Export, 359–360, 1125.
Gift, 797, 807, 809.
On Instruments, 797, 810.
On Lottery Tickets, 810, 1151.
Stamp, 786, 797, 809–810.
Dwellings (see Houses and Flats).

E

Earthquake and War Damage Insurance, 795, 901, 935–936.
Earthquakes, 8–10.
Economic Pensions, 228,
Economic Stabilization, 962–963, 988, 1009–1010, 1032–1036.
Education, 166–197, 1111, 1116, 1121–1122, 1127–1128, 1174.
Boards, 166–167.
Buildings, Debt on, 818.
Endowments, 167, 175.
Expenditure on, 175, 184, 727, 788.
Of Ex-Servicemen, 288, 291.
Physical, 144–145, 186.
Educational Association Workers', 196.
Educational Research, 194–195.
Effective Weekly Wage-rates, 994–995.
Eggs, 553.
Consumption of, 706.
Marketing of, 487, 491.
Retail Prices of, 964.
Subsidy on, 507.
Elections, General, 22–23, 1146.
Representation Commission, 27–28.
Electoral Districts, 27, 1160.
Electoral Provisions, 27–28.
Electoral Qualifications, 28, 832–833.
Electors, Registration of, 28–29, 832.
Electric—
Power Boards, 685, 689, 829–852, 1188.
Power, Development of, 682–684.
Power, Generation and Supply, 681–695.
Power in Factories, 616, 631.
Power on Farms, 515.
Power, Review of Operations, 688–695.
Railways, 381–383.
Electric Supply Account, 791.
Electric Tramways, 392, 396–397.
Electrical Machinery and Appliances Industry, 623, 625–643, 659.
Electricity, Consumption of, 398, 681, 692–693.
Emergency Benefits, 200, 213–214, 222.
Emergency Reserve Corps, 278.
Pensions for, 222, 229, 231.
Emigration, 36–38.
Employees—
Cinematograph Theatres, 1141, 1144.
Electric Supply, 688–690.
Factory, 617–628, 639, 645–661, 1058, 1062–1067, 1072, 1184.
Farm, 1071.
Fire Brigade, 932.
Hospital Boards, 852.
In Industry, 1058, 1062–1067.
Legislation Affecting, 1005–1057.
Local Government, 851, 1065–1066, 1073.
Mining, 602, 603, 606, 609, 610.
Post and Telegraph, 438, 1066.
Public Service, 1165.
Public Works, 1025, 1072–1073.
Railway, 390–391, 1066.
State Coal Mines, 606.
Unions of, 1036–1041, 1074–1080.
Urban Transport, 393, 396, 399.
Employers, 1076, 1079.
Employers' Liability Insurance, 921–923, 934, 1045–1050.
Employers' Unions, 1076.
Employment and Unemployment, 1050–1051, 1058–1073.
Employment Districts, Factory Production in, 619.
Employment Placement Scheme, 1050–1051, 1060, 1069–1071.
Employment Promotion 1050–1051, 1060–1067.
Taxation, 813, 988.
Employment, Seasonal Fluctuations in, 1071–1072.
Employment Service, National, 1050–1051, 1060–1067.
Employment, Subsidized, 1060.
Employment, Survey of, 1061–1067.
Employment Vacancies, 1064, 1068, 1071.
Endowment Land, 457–460.
Endowments, Education, 167, 175.
Engine-drivers' Certificates, 1104.
Engineering Industries, 659–661.
Engines—
Employed in Factories, 631.
Employed on Farms, 515.
Inspection of, 1104.
Railway, 382, 383.
Ensilage (see Silage).
Entertainments Tax, 797, 810, 812, 1141–1144.
Erosion, 564.
Estate Duty, 807–808.
Estates—
Administered by Public Trust Office, 1131–1133.
Assigned, 1135–1140.
Intestate, 1132.
Passed for Death Duty, 1133–1135.
Ewes, Breeding, 534–538.
Examinations—
Education Department, 174.
Electric-tram Drivers', 1105.
Engine-drivers', 1104.
Marine Officers', 378–379.
Medical, of School Children, 130.
Examinations—continued
Medical Practitioners', 140.
Mining, 614, 1018.
Teachers', 174.
University, 140, 174.
Exchange Allocation, 306, 870–871.
Exchange (Currency), 883–885.
Control of, 300–302, 869, 883–884.
Expenditure on, 815.
New Zealand - London, 883–884.
Rates of, 883–885.
Reserve, 856, 867, 868.
Exchanges, Telephone, 431–434.
Excise Duties, 359, 361, 727, 797, 799–800.
Executive Council, 25.
Members of, 1157–1158.
Exemptions from Taxation—
Income Tax, 801–807, 950–952.
Land Tax, 804.
Ex-nuptial Infants—
Births of, 75–76.
Legitimation of, 76.
Protection of, 194.
Exotic Forests, 557, 561–562, 582–584.
Expectation of Life, 93, 111.
Expeditionary Forces, 276–278, 279–280, 1198–1199.
Expenditure—
Air Force, 276, 788.
Army, 273, 788.
Audit of, 782–783.
Broadcasting, 443.
Cinematograph Theatres, 1140–1144.
Civil Aviation, 419.
Defence, 269, 273, 276, 727, 788.
Education, 175, 184, 727, 788.
Electric Power, 685, 688–691, 694–695.
Forest Service, 565–566.
Government, 726–730, 782–796, 1185.
Health, 126, 788.
Insurance Companies, 916, 918, 921, 927–928, 932–936, 1194.
Local Government, 148–149, 685, 689, 691, 729, 842–843, 1187.
Mental Hospitals, 164–165.
National, 715–740.
National Roads Fund, 403, 790.
Naval, 269, 788.
Post and Telegraph, 431, 433, 437.
Railway, 384–386, 793, 1192.
Rehabilitation, 289–291, 787.
Roads, 403, 404, 407.
Urban Transport, 395, 398, 399.
War, 817, 818.
Export Control, 305, 486.
Dairy Produce, 486, 544.
Honey, 492.
Meat, 486.
Export Duties, 359–360, 1125.
Export Licences, 305.
Export Prices, 495–505.
Index Numbers of, 974–978.
By Classes, 977, 978.
By Commodity Groups, 977, 978.
By Destination, 977.
Exports, 281–333, 363–365, 701–704, 766, 1178–1182.
Apples, 310, 312, 327, 330, 331.
By Ports, 329.
Casein, 310, 311, 330, 331.
Classification of, 308–314.
Currency, Restrictions on, 881–882.
Dairy Produce, 308–313, 323–324, 330, 331, 375, 486, 495–497, 704, 1180.
Destination of, 314, 328.
Excess over Imports, 295.
Fats, 310, 311, 324, 330, 331, 375.
Fish, 309, 311, 330, 331, 589.
Gold, 309, 311, 330, 331, 595, 1180.
Hides, Skins, and Pelts, 308, 310, 311, 325–326, 330, 331, 375.
List of, 309–312.
Meat, 308–313, 320–322, 330, 331, 375, 502, 548–550, 704, 1179.
Milk, Dried and Condensed, 310, 311, 330, 331.
Receipts from, 869.
Sausage Casings, 310, 311, 326, 330, 331.
Scrap Metal, 310, 312.
Seeds (Grass and Clover), 310, 312, 327, 330, 331.
Specie, 305, 1178.
Timber, 309, 311, 328, 330, 331, 573–575.
Valuation of, 292, 307.
Value in Sterling, 294.
Values, Index Numbers, 304, 702.
Volume, Index Numbers, 303, 703.
Woodpulp, 309, 311, 328.
Wool, 308, 310, 311, 320, 330, 331, 375, 1179.
External Migration, 36–39, 1172.
External Trade, 292–377, 1178–1182.

F

Factories, 616–661, 1145, 1184.
Accidents in, 1091–1103.
Act, 133, 1013–1015.
Classification of, 617, 620–624.
Classified by Size, 627–628.
Coal Consumed in, 632.
Dairy, 543–546, 646.
Employees, 617–628, 639, 645–661, 1058, 1062–1067, 1072, 1184.
Fire Losses on, 931.
Promotion of, 1145.
Registered, 617.
Summary of Operations, 643–661.
Factory Production, 483–485, 616–661, 1184.
By Employment Districts, 619.
By Provincial Districts, 618.
Fair Rents Act, 1053–1057.
Fakaofo Island, 2, 3, 1126–1128.
Fallow Land, 447, 520.
Family Benefits, 198, 200, 202, 207–208, 222, 807.
Family Homes Act, Joint, 451, 1051.
Farm Employees, 1071.
Farm Employees, Wage-rates, etc., 990, 991, 995, 997, 999, 1023.
Farm Finance, Provision of, 289–291, 456–462, 861, 897–904.
Farm Holdings, 446–447.
Classification of, 512–513.
Farm Implements, 515–517.
Manufacture of, 661.
Farm Industry Reserves, 505–506.
Farm Loans for Ex-servicemen, 289–291.
Farm Machinery, 515–517.
Imports of, 336, 348.
Farm Produce—
Consumption of, 481–482, 523, 549, 551, 704–707.
Export of, 308–313, 320–328, 330–331, 375, 481–482, 495–497, 502, 548–550, 1179–1183.
Marketing of, 486–505.
Farm Subsidies, 506, 514.
Farm Training and Settlement of Discharged Servicemen, 286–287, 291, 460–462.
Farmers—
Advice for, 510–512.
Financial Assistance to, 460, 861, 897–904.
Mutual Insurance Associations, 931–932.
Farming, 479–554.
Farming Income, Gross, 479–481.
Farming Lands, Mortgages on, 890–891, 893, 900.
Farming Sector Account, 744, 749.
Fathers—
Ages of, 72.
Average Number of Children, 74.
Occupations of, 74.
Fats Exported, 310, 311, 324, 330, 331, 505, 1179.
Fauna, 14.
Female Suffrage, 28, 1197.
Female Wage Rates, 993–995, 998, 999, 1027.
Ferns, 14.
Fertilizer Industry, 622, 655.
Fertilizer Used in Aerial Top-dressing, 422.
Fertilizers, Imports of, 335.
Fertilizers, Subsidy on Imported, 514, 515.
Fertilizers, Subsidy on Transport of, 514, 515
Fever, Scarlet, 65, 101, 112, 212.
Field Crops, 517–534.
Film Library, National, 188.
Film Unit, National, 1204.
Film-hire Tax, 786, 797, 812.
Finance and Investment, 887–912.
Finance, Farm, 289–291, 456–462, 861, 897–904.
Finance, Government, 726–730, 782–828, 1185, 1186.
Finance of Local Government, 147–150, 689, 728–729, 838–851, 1187, 1188.
Hospital Boards, 147–150.
Fire Brigades, 563, 932.
Fire Districts, 559, 563, 829–852.
Fire Insurance, 924–932, 1194.
State, 934–935.
Fire Losses, 926–931, 934.
Fire Prevention in Forests, 559, 563–564.
Fires on Vessels, 380.
First Births, 74–75.
Fish, 7, 586–593.
Canned, 589.
Imports of, 341, 352.
Consumption of, 706.
Exported, 309, 311, 330, 331, 589.
Value of Production, 484, 587.
Fishing, Big-game, 591.
Fish-liver Oil, 589–590.
Fixed Deposits, 859, 879, 880.
Flats, 675.
Flax Lands, 448, 533.
Flax, Linen, 520, 533, 827.
Exports of, 310, 312.
Flax, Phormium (see Phormium).
Floating Debt, 816, 818.
Flogging Abolished, 251.
Flora, 13–14.
Flour—
Consumption of, 706.
Price Fixation of, 962.
Production of, 647.
Subsidy, 507.
Fodder Crops, 519–521, 523, 526.
Foetal Deaths, 78.
Fog Signals, 379.
Food and Drugs, Sale of, 128.
Food Consumption, 701–707.
Food Poisoning, 116, 117, 127.
Food Production, 620, 625–643, 645–649.
Food, Retail Prices of, 964, 966.
Footwear and Clothing, Retail Prices of, 965.
Footwear, Imports of, 335, 343, 352.
Footwear Industry, 621, 651, 1000.
Foreign Vessels, 371.
Foreigners, Naturalization of, 41–43.
Forest Fire Prevention, 559, 563–564.
Forest Produce Exported, 309, 311, 328, 330, 331, 573–575.
Forest Trees, 13–14, 577–585.
Forestry, 555–585.
And Logging Sector Account, 749.
Persons Engaged in, 1065.
Research, 576–577.
Value of Production, 484.
Forty-hour Week, 1003, 1014.
Fowls, 552.
Franchise, General Government, 28–29.
Franchise, Local Government, 832–833.
Freehold, Crown Land Made, 460.
Freehold Land, 448.
Freight—
Carried by Air Transport, 419–425.
Carried by Shipping, 368–377.
Carried by Trains, 386–390, 1192.
Subsidy, 514.
Train Milage, 390.
Frequency Rates of Accidents, 1092, 1100.
Friendly Societies, 240–242.
Fruit—
Consumption of, 705.
Export of, 310, 312, 327, 330, 331.
Fixation of Prices of, 489–490, 491.
Imports of, 341, 352, 355.
Industry, 447, 519, 520, 530–532.
Fruit and Vegetable Preserving Industry, 620, 648–649.
Fuels and Lubricants, Imports of, 336, 337, 345, 353.
Funds of Public Account, 782–796.
Funeral and Sick Funds, 241.
Furniture and Fittings Industry, 621, 625–643, 652.
Furniture Loans, 289, 291, 902.

G

Gaming Act, 1150–1151.
Gaols, Prisoners in, 258–261, 1175.
Gardens, Acreage in, 447, 519, 529–530.
Gardens (Commercial), Registration of, 530.
Gas District, 829–852.
Gas Generation and Supply, 695–700.
Gas Price, 696.
Gas Subsidy, 507, 696.
Geese, 552.
General Assembly, 21–24, 1160.
Generating Stations, 682–684.
Geographic Board, 471.
Geographical Features, 4–8.
Geology, 8, 610–611.
Geothermal Steam, 611, 684–685.
Geysers, 4.
Gift Duty, 797, 807, 809.
Gilbert and Ellice Islands, 3.
Glaciers, 6.
Glass and Glass Products Industry, 623.
Gold, Discovery of, 7, 1196.
Gold Exported, 309, 311, 330, 331, 595, 1180.
Duty on, 359.
Gold Mining and Production, 7, 595–596.
Gold Reserve, 856.
Gonorrhoea, 117, 120, 127.
Goods and Services Compared with Incomes, 738–740.
Goods Available for Use, 701–704.
Goods Carried on Railways, 387–390, 1192.
Goods-service Licences, 411–413.
Government Departments, 26, 1131, 1157–1158, 1163–1165.
Government Finance, 726–730, 782–828, 1185, 1186.
Government Housing, 663, 669–671, 677–678, 790, 818, 903–904, 1052–1053.
Government Insurance, 932–936.
Government Marketing, 487–488.
Government Railways, 381–391, 1192.
Industrial Tribunal, 391, 1024.
Superannuation Fund, 233, 391.
Government Representatives Overseas, 1167–1168.
Government Roads, 406.
Government Service Tribunal Act, 1024.
Government Superannuation Fund, 233–235.
Government, System of, 21–26.
Governments, Provincial, 166, 830.
Governor-General, 1156.
Powers, Duties, etc., 20.
Grading of—
Dairy Produce, 510, 544.
Public Servants, 1166, 1167.
Graduates, University, 189.
Grain Crops, 519–524, 1176.
Grain Milling, 620, 647, 996, 1000.
Granite, 608.
Grapes and Vineyards, 529, 531.
Graphs (see Diagrams).
Grass and Clover Seed, 518–520, 527.
Exports of, 310, 312, 327, 330, 331, 1181.
Grass Lands, 447, 448, 508, 520, 528.
Gratuities, Ex-servicemen's, 872.
Gravel and Sand, 595, 609.
Greenstone, 608.
Groceries, Retail Prices of, 964.
Gross Factor Receipts and Payments Table, 744, 747.
Gross Farming Income, 479–481.
Gross Indebtedness, 816–817, 1186.
Of Local Government, 828, 845–847, 1187.
Of Local Government, Purpose for Which Raised, 847.
Of Local Government to Government Departments, 845.
Gross Reproduction Rate, 32.
Guaranteed Prices, 499–502.
Guidance, Vocational, 183, 1060.
Gum, Kauri, 607.
Exported, 309, 311, 330, 331, 595, 607.

H

Half-castes, 61, 110.
Ham and Bacon, Consumption of, 705.
Ham and Bacon Curing, 620, 646.
Harbour Boards, 829–852, 1188.
Harbour Bridge Authority, 829–850.
Harbour-ferry Services, 411–413.
Harbours (see also Ports), 4.
Hardwood Trees, 577–579.
Hardwoods Imported, 573.
Harvests, 517–534, 1176.
Hay, 526.
Heads of Government Departments, 1163–1165.
Health Camps, 130, 144.
Health, Department of, 125–126.
Health Insurance, 198, 208–223, 1006.
Health, Occupational, 133–134.
Health, Public, 124–165.
Hearing Aids, 221.
Heavy-traffic Fees, 403, 410.
Herd Testing, 510.
Hides, Skins, and Pelts Exported, 308, 310, 311, 325–326, 330, 331, 375, 1181, 1182.
High Commissioners, 1167–1171.
High Schools, 171, 180–182, 187, 1174.
Higher Education, 171, 188–192, 1174.
Highways, 406.
Taxation, 402–403, 407, 786, 797, 800.
Hire Purchase, 711–714.
History, Early and From 1870, 15–19.
History of Labour Laws and Allied Legislation, 1005–1012.
History of New Zealand, 1195–1202.
Hoarding Prohibited, 962.
Hoes, Rotary, and Garden Tractors, 515.
Holdings (see Land Holdings).
Holidays, 1013, 1014, 1016, 1017, 1020, 1023.
Holland Ministry, 1157, 1158–1159.
Home-nursing Services, 220.
Homes, Benevolent, 153.
Homes, Children's, 153, 194.
Homicide, 65, 101, 106, 113, 251, 256.
Honey, 553–554.
Consumption of, 706.
Exported, 310, 311, 330, 331, 554.
Marketing of, 492.
Honours Conferred, 1162–1163.
Hops, 447, 532, 649.
Exports of, 310, 312.
Horse-racing, 810–812.
Horses, 513, 516, 534, 552, 1177.
Exported, 310, 312.
Horticulture, 511, 513, 529.
Hosiery and Other Knitting Mills, 650.
Hosiery, Imports of, 343, 352.
Hospital Benefits, 200, 216–223.
Hospital Boards, 146–153, 217, 829.
Employees of, 852.
Employees' Superannuation, 237.
Finances of, 147–150.
Indebtedness of, 828.
Levies on Local Government, 147, 148, 150, 842, 843.
Hospital Districts, 146.
Hospitals, 118–123, 145–165, 217–223, 1110, 1116, 1121.
Accommodation of, 151–152.
Maternity, 133, 152–153, 218–219.
Mental, 154–165, 218.
Private, 152, 218, 219, 223.
Private Mental, 154, 156.
Public, 118–123, 151, 152, 219, 223.
St. Helens, 133, 152, 153, 219.
Staff of, 852.
Hostels, 154, 1061.
Hot Springs, 4, 1153.
Hotels and Restaurants, Fire Losses on, 931.
Hotels, Licensed, 1146–1150.
Hourly Wage Rates, 991–992.
Hours of Labour, 641–642, 1003–1004, 1014–1017, 1020, 1022–1024.
House of Representatives, 21–24, 1160.
Broadcast of Proceedings of, 442.
Members of, 1160.
House Rents, 1053–1057.
Household Sector Account, 745, 757.
Houses and Flats, 662–680.
Advances for, 289–291, 838, 897–908.
Census Enumerations, 669.
Completed, 669–672, 680.
Fire Losses on, 931.
In Course of Erection, 670, 677–678.
Maori, 291, 672, 1052.
Rents, 1051–1057.
Sale of State, 903–904.
State, 663, 669–671, 677–678, 1052–1053.
Housing, 662–680, 789, 790, 838, 897–904, 1051–1057.
Conference, 667.
Debt, 817, 818.
Local Government, 838, 843.
Of Ex-servicemen, 289–291.
Of Maoris, 291, 672, 1052.
State, 663, 669–671, 677–678, 790, 818, 903–904, 1052–1053.
Hunting, Fishing, etc., Sector Account, 744, 750.
Hydatids, 116, 117, 127, 128.
Hydro-electric Power, 6, 7, 681–695, 818.
Capital Outlay, 685, 688–691.
Development of, 682–684.
Used for Industrial Purposes, 616.
Hydrogenation of Coal, 604.
Hygiene—
Child, 129–131.
Dental, 131–133.
Environmental, 127.
Industrial, 133–134.
Mental, 154.
Public, 126–129.
School, 129.
Social, 117, 127.

I

Ice-cream, Consumption of, 704.
Ice-cream Industry, 620, 647.
Illegitimacy (see Ex-nuptial).
Immigration, 36–41, 1061, 1172.
Assisted, 38–39.
Hostels, 1061.
Restriction on, 40, 1050.
Imperial Preference, 362.
Implements, Farm, 515–517.
Manufacture of, 661.
Import Control and Licences, 305–306, 358–359, 1113.
Import Price Indices, 979, 985.
Importers, Bank Advances to, 861.
Imports, 281–306, 333–355, 361–367, 701–703, 766–767, 1178.
By Ports, 353–354.
Classification of, 333–338.
Currency, Restrictions on, 881–882.
Excess of Exports over, 295.
Free and Dutiable, 355–367.
List of, 341–353.
Origin of, 338–351.
Payments on Account of, 869.
Purpose or Use of, 333–338.
Restrictions on, 305–306, 358–359, 1113.
Specie, 305, 881–882, 1178.
Valuation of, 292–293, 333.
Value in Sterling, 294.
Value of, Index Numbers, 304, 702.
Volume of, Index Numbers, 303, 703.
Income—
Company, 721–738, 939, 954–960.
Gross Farming, 479–481.
National, 715–740.
Of Individuals, 939–954.
Personal, 721, 722.
Private, 716–723, 730–738.
Returnable, 939, 947–948, 956–957.
Income Tax, 727, 786, 797, 801–807, 937–961.
Non-resident Traders, 961.
Incomes, Comparison with Goods and Services, 738–740.
Increase of Population, 30–32, 47–51, 63, 69–70.
Indebtedness of Local Government, 150, 828, 845–851, 1187, 1188.
Indebtedness, State, 815–828, 1186.
Index Numbers—
Consumers' Price, 967–971.
By Classes, 977, 978.
By Commodity Groups, 977, 978.
By Destination, 977.
Value, 485, 640–641.
Volume, 485, 640–641.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Deaths, Sex-ratio, 89.
By Classes, 977, 978.
By Commodity Groups, 977, 978.
By Destination, 977.
Value, 485, 640–641.
Volume, 485, 640–641.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Electricity, Consumption of, 681.
By Classes, 977, 978.
By Commodity Groups, 977, 978.
By Destination, 977.
Value, 485, 640–641.
Volume, 485, 640–641.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Export Prices, 974–978, 985.
By Classes, 977, 978.
By Commodity Groups, 977, 978.
By Destination, 977.
Value, 485, 640–641.
Volume, 485, 640–641.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Factory Production—
Value, 485, 640–641.
Volume, 485, 640–641.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Farm Production, Value and Volume, 481, 485.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Gross Farming Income, 481.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Hours of Labour, 1003, 1004.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
House Rent, 968.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Import Prices, 979, 985.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Private Income, 731, 738.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Production, 481, 485.
Factory, Value of, 485, 640–641.
Factory, Volume of, 485, 640–641.
Farm, Value and Volume of, 481, 485.
By Classes, 974.
By Groups, 973.
Retail Prices, 967–971, 985.
By Classes, 974.
By Groups, 973.
Share Prices, 980–985.
By Classes, 974.
By Groups, 973.
Value of Exports, 304.
By Classes, 974.
By Groups, 973.
Value of Goods Available for Use, 702.
By Classes, 974.
By Groups, 973.
Value of Imports, 304, 702.
By Classes, 974.
By Groups, 973.
Value of Production, 481, 485.
By Classes, 974.
By Groups, 973.
Value of Trade, 304.
By Classes, 974.
By Groups, 973.
Volume of Dairy Production, 546.
By Classes, 974.
By Groups, 973.
Volume of Exports, 303, 703.
By Classes, 974.
By Groups, 973.
Volume of Goods Available for Use, 703.
By Classes, 974.
By Groups, 973.
Volume of Imports, 303, 703.
By Classes, 974.
By Groups, 973.
Volume of Production, 481, 485, 640–641.
By Classes, 974.
By Groups, 973.
Volume of Trade, 303.
By Classes, 974.
By Groups, 973.
Wage Rates, 986–995, 1004.
By Classes, 974.
By Groups, 973.
Wholesale Prices, 972–974, 985.
By Classes, 974.
By Groups, 973.
Wool Prices, 494.
Indigenous Forests, 448, 557–561, 577–581.
Industrial Accidents, 1045–1050, 1091–1103.
Nature and Location of, 1096–1097.
Severity Rates, 1098–1100.
Time Charge of, 1098–1101.
Industrial Associations, 1079.
Industrial Conciliation and Arbitration, 988–990, 1024–1041, 1074–1080, 1088–1089.
Industrial Distribution of Population, 1058–1067.
Industrial Efficiency, 1145.
Industrial Hygiene, 133–134.
Industrial Relations Act, 1041.
Industrial Unions, 1036–1041, 1074–1080.
Industries—
Bank Advances to, 861.
Classification of, 617, 620–624.
Licensing of, 1145.
Manufacturing, 616–661, 1145, 1184.
Industry—
Bureau of, 1145.
Fatigue in, 1102.
Manufacturing Sector Account, 751.
Organization of, 639–640, 1145.
Persons Engaged in, 617–628, 639, 645–661, 1058, 1062–1067.
Sector Accounts, 740–759.
State Aid to, 900–902.
Infancy, Diseases of, 65, 97–98, 113–115, 121.
Infant Mortality, 65–66, 90–100, 1173.
Maori, 65–66, 113–115.
Infantile Paralysis (Poliomyelitis), 65, 97, 101, 112, 116, 117, 127.
Infectious Diseases—
Control of, in Schools, 130.
Deaths from, 65, 101, 102, 112, 120.
Hospital Cases, 120.
Notification of, 116–118, 127.
Injuries (see Accidents).
Input-Output Table, 744, 748.
Inquests, 87, 255–256.
Insanity, 84, 86, 154–165.
Insolvency, 1032, 1135–1140, 1193.
Instalment Sales, 711.
Instruments, Duty on, 797, 810.
Instruments, Registration of, 450.
Insurance, 638, 913–936, 1194.
Accident, 606, 920–924, 1194.
Earthquake and War Damage, 795, 901, 935–936.
Fire, 924–932, 1194.
Life, 913–920, 932–933, 1194.
Motor-vehicles Third-party Risks, 920–924.
State, 932–936.
Interest—
Credited by Savings Banks, 872–875, 1190.
On Local Government Debt, 148, 729, 848–849.
On Mortgages, 892–896, 902, 903.
On Post and Telegraph Capital Liability, 437, 786.
On Public Debt, 716, 721, 728, 787, 824–825.
On Railways Capital Liability, 384.
Payments Overseas, 824, 848.
Payments to Consolidated Fund, 786.
Rates (see Rates of Interest).
Reduction of, 851, 877–880.
Intermediate Credit, 903.
Intermediate Schools, 171, 178, 179, 184, 187.
International Air Services, 422–425.
International Investment Income, 869.
International Payments, 869–870.
International Refugee Organization, 39.
Intoxicating Liquor—
Duty on, 358–361, 797, 800.
Sale of, 1146–1150.
Invalids' Benefits, 200, 202, 208–209, 222.
Investment and Finance, 887–912.
Investment Certificates, 815.
Investment in New Zealand and Overseas, 775–781.
Investment Societies, 904–908.
Deposits, 876, 880, 906, 908.
Investments, Reserve Bank, 856.
Investments, State, 818, 823.
Invisible Imports and Exports, 869–870.
Iron and Steel, Imports of, 346, 353.
Iron Ores and Ironsands, 595, 597.
Irrigation and Water Supply, 789, 790, 1072.
Island Territories, 2, 30, 1106–1131.
Islands—
Administered on Trust, 1–3, 30, 1118–1126, 1129.
Annexed, 1106–1118.
Outlying, 1, 1106.

J

Joinery Industry, 621.
Joint Family Homes Act, 451, 1051.
Joint-stock Companies, 908–912.
In Manufacturing Industries, 639.
Journal of Agriculture, 511, 528.
Journal, School, 188, 1107.
Judiciary, 27.
Members of, 1162.
June Year Exports, 294, 330–331.
June Year Imports, 294.
Juries, 244.
Justice, 243–264, 787, 1175.
Justices of the Peace, 246.
Juvenile Offenders, 192–194, 253–254.
Juvenile Wage-rates, 995, 998–999, 1004.

K

Kale, 519, 526, 533.
Kauri Gum, 607.
Exported, 309, 311, 330, 331, 595, 607.
Kea, Destruction of, 514.
Kermadec Islands, 1–3, 30, 1107.
Kindergarten Schools, 168, 171, 176.
Knitting Mills and Hosiery Industry, 650.

L

Laboratory Diagnostic Services, 220–221, 223.
Laboratory, Dominion, 611–614.
Labour, Department of, 1051, 1058–1072.
Labour Force, 1058–1067.
Labour, Hours of, 641–642, 1003–1004, 1014–1017, 1020, 1022–1024.
Labour Laws and Allied Legislation, 1005–1057.
Labour Shares, 1007.
Lakes, 7–8, 682–684.
Lamb, Consumption of, 549, 551, 704, 705.
Lamb Exported, 330, 331, 549, 550, 704.
Lambs, 534–538.
Slaughtered, 548, 645.
Land Act, 175, 455–462.
Land Boards, 455, 464.
Land Development, 456–462, 465–466.
Land Districts, 448, 455.
Land Drainage Districts, 829–852.
Land for Ex-servicemen, 286–287, 460–462.
Land Holdings, 446–447.
Classification by Farm Types, 512–513.
Mortgages on, 887–896, 900.
Land, Occupation of, 446–448.
Land, Purchase of, 455–462, 465.
Land Sales, Control of, 454–455.
Land Settlement, 446–466.
Land Settlement Account, 791–792.
Land Settlement Promotion Act, 454.
Land Surveys, 467–471.
Land Tax, 727, 786, 797, 801, 804.
Land Tenure and Settlement, 446–466.
Land Titles, Registration of, 450–451.
Land Transfer, 450–454.
Land, Valuation of, 472–478.
Lands Open for Selection, 457–458.
Law and Crime, 243–264, 1175.
Law, Mortgage, 887–888.
Laws Affecting Labour, 1005–1051.
Laws Enacted in 1956, 1153–1155.
Leasehold Landholdings, 448, 457–460.
Leases, Renewable, 456–461.
Leather and Leather Products Industry, 622, 625–643, 654.
Legacy Duty, 807–809.
Legal Education, 189.
Legal Tender, 882.
Legations, 1168–1170.
Legislation—
Labour and Allied, 1005–1057.
Passed in 1956, 1153–1155.
Legislative Authority, 21–24.
Legislative Council, Abolition of, 21.
Legitimation, 76.
Letter Boxes, 429.
Letter Telegrams, 432.
Letters of Credit, 873.
Letters Posted, 428, 429, 1191.
Levies by Fire Boards, 927.
Levies by Hospital Boards, 147, 148, 150, 842, 843.
Levy—
Coal Production, 615, 1018–1019.
Electric Power, 685.
Meat, 360.
Orchard, 531.
Totalizator, 810–811.
Wool, 360, 493, 540.
Liabilities of—
Bankrupts, 1137–1138 1139, 1193.
Banks, 855, 858, 867, 868, 1189.
Building Societies, 908.
Electric-power Undertakings, 692.
Fire Insurance Companies, 925.
Friendly Societies, 241.
Life Assurance Companies, 919.
Local Government, 150, 844.
Reserve Bank, 855.
Library, Alexander Turnbull, 1204.
Library Services, 175, 196–197, 262.
Licences—
Aerodrome, 427.
By Local Authorities, 841.
Companies', 810.
Drivers', 408, 841.
Export, 305.
Fishing, 593.
Fishing Vessels, 586.
Flight Crew, 426–427.
Import, 305–306, 358–359.
Motor Vehicle, 408–409.
Petroleum Prospecting, 606.
Plumbers', 143.
Publicans', 841, 1146–1150.
Radio, 444–445.
Raffle, 1150–1151.
Ross Sea Whaling, 1129.
Sharebrokers', 810.
Transport, 411–413.
Licensing, 1146–1150.
Authority, 411–413.
Control Commission, 1146–1150.
Poll, 1146.
Trusts, 1150.
Licensing of—
Commercial Air Services, 419.
Industries, 1145.
Lotteries, 1150–1151.
Motor Vehicles, 408–410.
Private Hospitals, 152.
Sale of Alcoholic Liquor, 1146–1150.
Liens, Contractors', 1031.
Life Assurance, 913–920, 932–933, 1194.
Death-rates, 919.
State, 932–933.
Life, Expectation of, 93, 111.
Lifts, Inspection of, 1104.
Lighthouses, 379–380.
Lignite, 599–602.
Lime Industry, 623.
Lime, Land Top-dressed with, 528.
Lime, Subsidy on Transport of, 514, 515.
Limestone, 595, 609.
Linen Flax, 520, 533, 620, 827.
Exports of, 310, 312.
Linseed, 519, 520, 521, 526.
Liquidations of Companies, 908.
Literature, New Zealand, 1205–1213.
Livestock, 534–554, 1177.
Carried on Railways, 388, 389.
Slaughterings of, 547–548.
Loans—
Allocation of, 818.
By Building Societies, 904–908.
Conversion of, 819–821, 851.
Dates of Maturity of, 819–822, 849.
Domicile of, 821, 847, 1186.
Guaranteed, 817.
National Development, 795, 820–821.
Of Hospital Boards, 148, 150.
Of Local Government, 148, 150, 834–835, 845–851, 1187, 1188.
On Assurance Policies, 919, 933.
Raised for War Purposes, 817.
Redemption of, 787, 791, 818–821, 842.
Rehabilitation, 289–291, 899–902.
State Advances, 668, 841, 897–904.
Supplementary, 289, 900–901.
Suspensory, 289, 898, 900–901.
Local Government, 146–153, 685, 689, 728–729, 829–852, 1187–1188.
Advances to, 404–406, 838, 841, 900–902, 1052.
Assets of, 844–845.
Borrowing, 834–835.
Commission, 834.
Debt of, 150, 828, 845–851, 1187, 1188.
Deposits with, 880.
Employees of, 851, 1065–1066, 1073.
Expenditure of, 148–149, 685, 689, 729, 842–843, 1187.
History of, 829–832.
Levies on, by Hospital Boards, 147, 148, 150, 842.
Liabilities of, 150, 844.
Obligations under Health Act, 125.
Receipts of, 148, 689, 728, 839–841, 1187.
Superannuation, 236.
Taxation by, 728, 814, 835–837.
Urban Transport Operated by, 392–399.
Local Option, 1146.
Local Railway District, 829–852.
Lockouts, 1036–1041, 1081–1084.
Locomotives, 382, 383.
Lodges, Friendly Societies, 240–242.
Losses from Fire, 926–931, 934.
In Forests, 563.
Lotteries, 1150–1151.
Duty on, 810, 1151.
Lubricants and Fuels, Imports of, 336, 337, 345, 353.
Lucerne, 519, 520.
Lump-sum Payments, 716.

M

Machinery—
Accidents, 1095, 1103.
Factory, 631, 639.
Farm, 515–517.
Imports of, 335, 348.
Industry, 623, 625–643, 661.
Safety of, 1104–1105.
Magistrates, Superannuation of, 234.
Mails, 429, 1191.
Air, 419–425, 427–428.
Main Highways, 406.
Maize, 519, 520, 521.
Malting Barley, 524.
Malting Industry, 620.
Mangaia Island, 2, 1108, 1110.
Manganese Ore, 595, 597.
Mangolds, 520, 526.
Manihiki Island, 2, 1109, 1110.
Manuae Island, 2, 1108, 1110.
Manufacturing Production, 483–485, 616–661, 1184.
By Employment Districts, 619.
By Provincial Districts, 618.
Persons Engaged in, 617–628, 639, 645–661, 1058, 1062–1067.
Manufacturing Sector Accounts, 745, 751.
Manure Industry, 655.
Manures, Imports of, 335, 350, 353.
Manures, Land Top-dressed with, 528.
Manures Used for Top-dressing, 422.
Maori Affairs, Board of, 463.
Maori Electorates, 1160.
Maori Housing, 291, 672, 1052.
Maori Lands, 462–466.
Maori Succession Duty, 809.
Maori Trustee, 463–464, 823.
Maori Welfare, 1151–1152.
Maoris—
Births of, 62, 109–110.
Children Attending Schools, 171, 178–181, 183, 184.
Deaths of, 64, 109, 111–115.
Employment, 1061.
Expectation of Life, 111.
Franchise, 29.
Half-castes, 61, 110.
In Mental Hospitals, 164.
In Prisons, 253, 261.
Infant Mortality of, 65–66, 113–115.
Marriages of, 63, 110.
Members of Parliament, 23, 1160.
Natural Increase of, 63.
Offences by, 252–253.
Population, 30, 49–51, 59–61.
Rehabilitation of, 287, 291.
Schools for, 169–170, 171, 175, 176, 178–181, 183, 184.
Sex Proportions of, 33.
Still-births, 78.
Map of New Zealand (End of Volume).
Maps and Mapping, 470–472.
Maps Showing Power Stations, etc., 686–687.
Marble, 608.
Marine Officers' Certificates, 378–379, 1021.
Marital Status, 80.
Market Gardens, 447, 519, 529–530, 1022–1024.
Registration of, 530.
Market Prices of Shares, Yield on, 984.
Marketing of Primary Produce, 486–505.
Marriages, 63–64, 78–87, 110, 1173.
Masculinity Rate, 71, 78.
Masseurs (see Physiotherapists).
Massey Agricultural College, 169, 171, 188, 192, 287.
Materials Used in Factories, 617–619, 633–634, 639, 643–661, 1184.
Maternal Mortality, 65, 100, 101, 105–106, 113, 121.
Maternal Welfare, 126, 133.
Maternity Benefits, 152, 200, 218–219, 222, 223.
Maternity Hospitals, 133, 151, 152–153, 218–219.
Maternity Nurses, 141, 153, 218, 219.
Maternity Services, 152–153, 218–219, 222.
Maturity Dates of Loans, 819–822, 849.
Mauke Island, 2, 1108, 1110.
Mean Population, 32, 35, 485, 1172.
Mean Time, 1152.
Measures and Weights, 467, 519.
Meat—
Bulk-purchase of, 502.
Consumption of, 549, 551, 704, 705, 707.
Export Control, 486.
Export of, 308–313, 320–322, 330, 331, 375, 502, 548–550, 1179.
Export Price Index, 977.
Freezing and Preserving Industry, 620, 645, 861.
Industry Reserve Accounts, 506.
Inspection of, 510.
Levy on Exports of, 360.
Marketing of, 486, 489, 502–505.
Prices for, 489, 502–505.
Production, 549–550, 645–646, 1183.
Retail Prices of, 964.
Meat Producers Board, 486, 503.
Medical Advertisements, 128–129.
Medical Benefits, 200, 216–217, 222, 223.
Medical Bursaries, 191.
Medical Council, 140–141.
Medical Practitioners, 140–141, 216.
Medical Research Council, 140.
Medical Services, 124–165, 216–223.
In Cook Islands, 1110–1111.
In Niue Island, 1116.
In Western Samoa, 1121.
Medicine, Physical, 138–139.
Members of Parliament, 22–24, 1160.
Superannuation of, 24, 234.
Meningitis, 127.
Meningococcal Infections, 65, 97, 101, 112, 116.
Mental Defectives, 154–164, 258.
Mental Hospitals, 154–165, 218.
Mercantile Marine, 279, 282, 368–380.
Pensions, 222, 229, 231.
Merchandise, Exports of, 281–333, 363–365, 701–704, 766, 1178–1182.
Merchandise, Imports of, 281–306, 333–355, 361–367, 701–703, 766–767, 1178.
Merchandise Transhipped, 374–377.
Mercury, 595, 598.
Metal Products Industry, 623, 625–643.
Metal Scrap, Exports of, 310, 312.
Meteorology, 10–13, 427, 1107, 1115, 1118.
Midwives, 139, 141, 153, 218, 219.
Migration, External, 36–39, 1172.
Child, 39.
Milage of—
Bus and Tramcar Routes, 394, 396.
Commercial Air Services, 420, 423.
Highways, 404, 406.
Railways, 381, 387, 391, 1192.
Roads, 400.
Milage Tax, 403.
Military Colleges, 271.
Military Forces, 270–273, 279–280.
Military Pension, 225–233.
Military Training Act, 266.
Milk—
Boards, 829.
Consumption, 704, 707.
Control of Prices and Sale of, 490.
Districts, 829–852.
Dried and Condensed, Exports of, 310, 311, 324, 330, 331, 1181.
Dried and Condensed, Production of, 545.
Examination and Testing of, 510, 543.
For School Children, 130, 185.
Marketing of, 490–491.
Subsidy, 507.
Milk Products (see Dairy Produce).
Milking Machines, 516.
Mills, 616–661.
Mineral Waters, 1153.
Minerals and Mineral Production, 594–615.
Miners' Benefits, 200, 202, 209–210, 222, 615.
Miners' Phthisis, 209.
Mining, 594–615, 818.
Accidents, 108, 602, 610, 1091–1103.
Act, Examinations under, 614.
Legislation, 594, 1017–1019.
Persons Engaged in, 602, 603, 606, 609, 610, 1065.
Produce Exported, 309, 311, 330, 331, 595.
Sector Account, 745, 750.
Strikes, 1086, 1087.
Value of Production, 484, 595.
Ministers of Each Church, and Marriages by, 83.
Ministers Plenipotentiary, 1169–1171.
Ministries, Successive, 1156–1157.
Ministry, Holland, 1157, 1158–1159.
Minors, Marriages of, 82.
Mission Schools, 171, 178, 1121, 1122, 1128.
Mitiaro Island, 2, 1108, 1110.
Monarch, The, 20–21.
Monetary Benefits, Social Security, 200–216, 222–223, 794, 1059.
Money Orders Issued and Paid, 430–431, 1191.
Morbidity, 115–123, 241.
Mortality (see Deaths).
Mortgage Corporation, 897–898.
Mortgage Exemption, 804.
Mortgagee, Rights of, 888.
Mortgages, 887–897, 900, 919.
Rates of Interest on, 892–896, 902, 903.
State Advances, 897–904.
Mothers, Ages of, 72, 73, 75.
In Ex-nuptial Cases, 76.
Mothers, Average Issue of, 73.
Mothers, Previous Issue of, 73.
Motive Power in Factories, 631.
Motor Body Building and Repairs Industry, 660.
Motor Spirits—
Consumption of, 409.
Imports of, 345, 353.
Price Fixation of, 962.
Resellers, Licensing of, 1145.
Taxation on, 358, 361, 403, 410, 800, 841.
Motor Transport, 385, 392–399, 408–417.
Motor Vehicles—
Accidents, 65, 101, 106, 107, 113, 123, 413–417.
Assembly of, 623, 659.
Dormant Registrations, 410.
Drivers' Licences, 408, 841.
Duty on, 358.
Imports of, 351, 353.
Insurance, 920–924.
Methods of Purchasing, 712, 713.
Registration and Licensing of, 408–410.
Repairs Industry, 623.
Taxation, 358, 402–403, 407, 727, 800.
Traffic Offences, 247, 248–249, 414–415.
Motor Vessels Registered, 378.
Motor-engineering Industry, 659–660.
Motorways, 406.
Mountains, 4–5.
Multiple Births, 71–72.
Murder, 65, 84, 101, 106, 113, 251, 256.
Abolition and Restoration of Death Penalty for, 251.
Museums, 188.
Mussels, 587, 589.
Mutton, Consumption of, 549, 551, 704, 705.
Mutton Exported, 330, 331, 549, 550, 704.
Mutton Produced, 549, 550, 645.
Mutual Insurance Associations, 931–932.

N

Nassau Island, 2, 1109, 1110.
Nassella Tussock Districts, 829–852.
National Airways Corporation, 419–420, 424, 786, 818, 827.
National Council of Adult Education, 195.
National Development Loans, 795, 820–821.
National Employment Service, 1051, 1060–1067.
National Film Library, 188.
National Film Unit, 1204.
National Income and Expenditure, 715–740.
National Income and Output Table, 743, 746.
National Library Service, 175, 196–197, 262.
National Licensing Polls, 1146.
National Provident Fund, 236–239, 823.
National Roads Board, 401.
National Roads Fund, 401–403, 790.
National Savings, 815, 823, 875–876.
Nationality, 41–43.
Of Naturalized Persons, 42.
Of Overseas Shipping, 370–371.
Of Registered Aliens, 43–47.
Native Animals, 14.
Native Bush, 13–14, 448, 555–561, 577–581.
Native Fresh-water Fishes, 591–592.
Native Grasses, 13.
Natural Increase of Population, 31, 48, 63, 69–70.
Naturalization, 41–43.
Nauru Island, 2, 1129–1130.
Naval Defence, 267–270, 277, 278, 279, 281.
Naval Expenditure, 269, 788.
Neo-natal Deaths, 90, 95–100, 113–115.
Nephrite, 608.
Net Note Circulation, 865–867.
Net Reproduction Rate, 32.
New Zealand Broadcasting Service, 188, 439–444, 823.
New Zealand Dairy Board, 486, 499.
New Zealand Mean Time, 1152.
New Zealand Red Cross Society, 144.
New Zealand Representatives Overseas, 1167–1168.
Newspapers Produced, 644.
Newspapers Registered, 430.
Newsprint, Imported and Exported, 575–576.
Newsprint, Production of, 569, 570.
Niue Island, 1, 2, 30, 40, 332, 435, 1115–1118.
Note Issue, 855, 858, 865–867, 882–883.
Notes in Circulation, 865–867, 876, 1189.
Notification of Births, 67, 109.
Notification of Diseases, 116–118, 127.
Nukunono Island, 2, 3, 1126–1128.
Nullity of Marriage, 84–85.
Nurseries, 529, 530.
Nurses—
Dental, 131, 221.
District, 144, 220.
In Public Hospitals, 852.
Industrial, 134.
Male, 141.
Maternity, 141, 153, 218, 219.
Plunket, 130, 144, 153.
Psychiatric, 141.
Public Health, 130.
Registration of, 141–142.
Superannuation for, 237.
Nursing, 139–140, 220.
Nursing Aids, 141.

O

Oatmeal, etc., Consumption of, 706.
Oatmeal, etc., Production of, 647.
Oats, 519, 520, 521, 523, 526, 533, 1176.
Observatory, Time Signals From, 442, 1152–1153.
Occupation of Land, 446–448.
Occupational Health, 133–134.
Occupational Status, 1058.
Occupational Therapists, 142.
Occupational Training of Discharged Servicemen, 285–286, 290.
Occupations of Aliens, 45–46.
Occupations of Bankrupts, 1138.
Occupations of Fathers, 74.
Ocean Island, 1129.
Offences, 246–254.
By Children, 192–194, 253–254.
By Maoris, 252–253.
By Women, 252.
Offenders Probation Act, 254, 263.
Officers' Certificates (Marine), 378–379, 1021.
Offices Act, Shops and, 1015–1017.
Official Representatives, 1167–1171.
Oil, Fish Liver, 589–590.
Oil, Production from Coal, 604.
Oil Wells, 606–607.
Oil, Whale, 309, 311, 587, 590.
Old People's Homes, 148, 153, 154.
Omnibuses Licensed, 408.
Onions, 520, 525, 533.
Exports of, 310, 312.
Opencast Mining, 603, 605.
Opium, Prohibition of, 128.
Opossum Skins Exported, 310, 311, 330, 331.
Opticians, Registration of, 143.
Oranges, Imports of, 342, 352, 355.
Orchards, 519, 520, 529, 530–532, 1023.
Orchestra, National, 442, 443.
Origin of Immigrants, 38.
Origin of Imports, 338–351.
Orphanages, 153.
Orphans' Benefits, 200, 202, 207, 222.
Ottawa Agreement, 356, 362.
Outlying Islands, 1, 1106.
Out-patients, 151.
Maternity Hospitals, 153.
Overdraft Authorities, Unexercised, 865.
Overdraft Rates, 877–878.
Overtime, 641–642, 1014–1017, 1020, 1022–1023.
Owner Occupied Houses, Rental Value of, 715, 721, 730.
Oysters, 587, 589, 590.

P

Pacific Islands, Annexed, 1106–1118.
Bibliography, 1213.
Radio Communication, 435–436, 1113, 1117.
Paint and Varnish Industry, 622, 656.
Palmerston Island, 2, 1109, 1110.
Pan American World Airways, 424–425.
Paper and Paper Products Industry, 621, 625–643, 653.
Paper and Pulp, External Trade of, 575–576.
Paper, Imports of, 349, 350, 353.
Paralysis Infantile (Poliomyelitis), 65, 97, 101, 112, 116, 117, 127.
Parcel-post, 329, 428, 430.
Parents—
Ages of, 72, 73.
Duration of Marriage of, 74.
Parks, National, 449.
Parliament, 21–24.
Members of, 22–24, 1160.
Parliamentary Elections, 22–23, 1146.
Parliaments, Successive, 1161.
Parole Board, 262–263.
Passenger Milage—
Air Services, 420–424.
Railways, 388.
Passenger Services, 411–413.
Passengers—
Buses, Tramcars, etc., 393, 395, 398.
Commercial Aircraft, 420–425.
Motor Vehicle, 413.
Overseas, 36–37, 1172.
Railway, 386–388, 1192.
Passion-fruit, 447.
Passports, 39–40.
Pastoral and Agricultural Production, 479–554, 1176, 1177.
Persons Engaged in, 1071.
Value of, 479–485.
Volume of, 481, 485.
Pastoral Produce—
Consumed Locally, 482, 704–705, 707.
Export of, 308–331, 482, 548–550, 554, 1179–1183.
Gross Farming Income, 479–481.
Pasture Grasses, 447, 520, 528.
Patents, Designs, and Trade Marks, 1144–1145.
Patients in Mental Hospitals, 156–164.
Patients in Public Hospitals, 118–119, 151.
Payments, Balance of, 760–781.
Payments Overseas, 300–302, 869–870.
Peaks, Altitude of, 5.
Pears, 519, 530–532.
Export of, 310, 312.
Marketing of, 489–490.
Peas, 519, 520, 521, 524.
Export of, 310, 312, 327, 328, 330, 331.
Pelts, Hides, and Skins, Export of, 308, 310, 311, 325–326, 330, 331, 375, 1181, 1182.
Penrhyn (Tongareva) Island, 2, 1108, 1110.
Pensions, 198–239, 716, 730.
Perinatal Mortality and Prematurity, 99–100.
Perlite, 596, 609, 612.
Permanent Building Societies, 905–907.
Permanent Heads of Government Departments, 1163–1165.
Permits, Building, 663, 672–679.
Petitions—
Bankruptcy, 1136.
Divorce, 84–86.
Petrol (see Motor Spirits).
Petroleum, 353, 595, 606–607.
Pharmaceutical Benefits, 200, 217, 222, 223.
Pharmaceutical Chemists, 143–144.
Pharmaceuticals, Manufacture of, 656.
Pharmacy, 143, 1145.
Phormium, 448, 513, 533.
Industry, 620.
Phosphate Rock, 608, 655.
From Nauru Island, 2, 1129–1130.
Imports of, 350, 353.
Phthisis (see Tuberculosis).
Miners', 209.
Physical Welfare and Recreation, 144–145.
Physiography, 1–8.
Physiotherapists, 142.
Physiotherapy Benefits, 220, 223.
Picture Theatres, 1140–1144.
Pig-meats, 330, 331, 503–505, 548–551, 645, 704, 705.
Pigs, 513, 534–536, 546, 547, 1177.
Slaughtered, 548.
Pilots, Air, 426.
Pisciculture, 592.
Placement Service, 1050, 1060, 1069–1071.
Plaints, 245.
Planing Mills, 621, 652.
Planning, Town and Country, 837–838.
Plantations, 447, 513, 520, 529–530, 555–557.
State, 556.
Plants, New Zealand, 13–14.
Platinum, 595, 598.
Plumbers, Registration of, 143.
Plunket System, 144, 153.
Plywood and Veneer, 571, 621, 658.
Poisoning, 106, 116, 117, 121, 127, 1096.
Poisons, 128.
Police Force, 263–264, 787.
Superannuation, 233.
Policies, Insurance, 913–933, 1194.
Poliomyelitis, 65, 97, 101, 112, 116, 117, 127, 212.
Vaccination, 130.
Polling at—
General Elections, 1146.
Licensing Polls, 1146.
Population, 30–61, 485, 1172.
Age Distribution of, 58.
Distribution of, 47–57.
Industrial Distribution of, 1058–1067.
Method of Compilation of, 34.
Occupational Status of, 1058.
Of Campbell Island, 30.
Of Cook Islands, 30, 1110.
Of Kermadec Islands, 30, 1107.
Of Nauru Island, 1130.
Of Niue Island, 30, 1115.
Of Tokelau Islands, 30, 1127.
Of Western Samoa, 30, 1120.
Projection, 32.
Pork Consumed, 549, 551, 705,
Pork Exported, 330, 331, 549, 550, 704.
Pork Produced, 548–551, 645.
Portfolios of Ministers, 1157–1158.
Ports—
Fishing, 589.
Of Arrival and Departure, 370.
Of Registry, 378.
Shipping and Trade of, 329, 353–354, 368–376.
Post Office Account, 795.
Post Office Employees, 438, 1066.
Accidents to, 1092, 1095, 1098–1100.
Superannuation of, 233–234.
Wages of, 1001.
Post Office Savings Bank, 871–873, 879–880, 1190.
Postal and Telegraphic, 429–438, 786, 818, 823, 1191.
Tribunal, 1025, 1030.
Postal Notes, 431, 1191.
Post-primary Education, 167–173, 180–183, 1174.
Potatoes, 519, 520, 524–525.
Consumption of, 705, 707.
Export of, 310, 312, 330, 331.
Marketing of, 490.
Pottery, China, and Earthenware Industry, 623, 657.
Poultry, 513, 552–553.
Consumption of, 706.
Poultry Runs Registration, 553.
Pounamu (Greenstone), 608.
Power Boards, 685, 689, 829–852, 1188.
Power, Electric (see Electric).
Power Used in Factories, 631.
Preferential Tariff, 355–358, 361–366.
Pregnancy, Diseases, etc., of, 65, 97, 99–100, 101, 105–106, 113, 116, 121.
Premiers, Successive, 1156–1157.
Premium Income, 913–936.
Preserved Meats, Production of, 645.
Prevention of Forest Fires, 559, 563–564.
Prevention of Profiteering, 962.
Price Tribunal, 962–964.
Prices, 962–985.
Collection of, 972.
Comparisons with Other Countries, 966–967.
Effect on Exports and Imports, 980.
Fixation of, 962.
Guaranteed, 499–502.
Of New Zealand Stocks, 823.
Post-war Control of, 963–964.
Regulation of, 962–964.
Stabilization of, 962–964.
Primage Duty, 356, 361.
Primary Products—
Consumption of, 481–482, 704–707.
Export of, 307–333, 375, 481–482, 502, 548–550, 1179–1183.
Marketing of, 486–505.
Purchase for War Purposes, 492.
Primary Schools, 168–172, 176–180, 184–187, 1122, 1174.
Prime Ministers, Successive, 1156–1157.
Principal Events, 1195–1202.
Printing and Publishing Industry, 622, 625–643, 653.
Prisoners of War, 279.
Prisons and Prisoners, 253, 256–263, 1175.
Private Assignments, 1139.
Probation, 247, 254–255, 262.
Producers' Equipment, Imports of, 336, 337, 338.
Producers' Materials, Imports of, 336, 337.
Production—
Agricultural and Pastoral, 479–554, 1176, 1177.
Clothing, 650–651.
Dairy, 544–546, 646, 1183.
Factory, 484, 485, 616–661, 1184.
Fisheries, 587–591.
Forestry, 484.
Local Consumption of, 481–482, 704–705.
Meat, 549–550, 645–646, 1183.
Mineral, 484, 595–614.
Per Head of Population, 485.
Pulp and Paper, etc., 569–571.
Timber, 567–570, 651, 1183.
Value of, 479–485, 702.
Volume of, 481, 434–485, 640–641, 702–704.
Wool, 480, 539–540, 1183.
Professors, University, 189.
Profit Sharing, 1007.
Profiteering, Prevention of, 962.
Prohibition Issue, 1146.
Prohibition Orders, 247.
Promotion of Employment, 1050–1051, 1060–1067.
Promotion of Industries, 1050, 1145.
Properties Transferred, 450–454.
Proprietary Income, Taxation of, 946.
Proprietors, Working, 1062, 1063.
Prorogation of Parliament, Dates of, 1161.
Protection of Wages, 1031–1032.
Provident Fund, National, 236–239, 823.
Provincial Districts, 830.
Area and Population of, 48–49.
Density of Population in, 59.
Factory Production in, 618.
Public Accounts, 782–796.
Public Administration Sector Account, 745, 755.
Public Buildings, Expenditure on, 790, 818.
Public Debt, 815–828, 1186.
Repayment of, 787, 815–821, 825–827.
Public Finance, 782–828, 1185, 1186.
Public Health, 124–165.
Public Service, 1024, 1165–1167.
Board of Appeal, 1166.
Classification, 1166, 1167.
Commission, 1165–1167.
Employees, 1165.
Superannuation, 233–234.
Public Trust Office, 1131–1133.
Public Utilities Sector Account, 752.
Public Works—
Accidents, 1092, 1095, 1098–1100.
Account, 789–790, 795.
Co-operative System, 1007.
Employees, 1025, 1072–1073.
Housing Construction, 669–671, 677–678, 789, 790.
Railway Construction, 381, 789, 790.
Road Construction, 401, 789, 790.
Public Works and Services, Maintenance of, 727, 788–790.
Publicans' Licences, 841, 1146–1150.
Publications—
Agriculture, Department of, 511, 528.
Census, 61.
Education, Department of, 188, 1107.
General Bibliography, 1205–1213.
Labour and Employment Gazette, 1061.
Lands and Survey, Department of, 471–472.
New Zealand Flora, 13–14.
New Zealand Listener, 441, 443.
Register of Newspapers, 430.
Statistics, Department of (see Forefront of Book).
Publishing and Printing Industry, 622, 625–643, 653.
Puerperal Accidents, etc., 65, 97, 99–100, 101, 105–106, 113, 116, 121.
Puisne Judges, 1162.
Pukapuka (Danger) Island, 2, 1109, 1110.
Pulp and Paper, External Trade of, 575–576.
Pulp and Paper Industry, 569–571, 653.
Pulp and Paperboard, Imports of, 353.
Pumice, 309, 311, 595, 609.
Pupils, School, 171–185, 1174.

Q

Quackery Prevention, 128.
Quadruplets Born, 71.
Quarries, 609, 1017, 1019.
Accidents at, 108, 610, 1093, 1100.
Persons Engaged in, 610, 1065.
Quartz Mining, 596.
Quicksilver, 595, 598.
Quorum—
Executive Council, 25.
House of Representatives, 22.
Quotations, New Zealand Stocks, 823.

R

Rabbit Districts, 829–852.
Rabbit Skins Exported, 310, 311, 330, 331, 1181.
Rabbits, Destruction of, 422, 514.
Racing Taxation, 797, 810–812.
Radiation Protection, 134–135.
Radio Advertising, 439–444.
Radio Assembly and Manufacture, 623, 644, 659.
Radio Beacons, 379.
Radio Broadcasting, 188, 439–445.
Radio Communication, 435–436, 1113, 1117.
Radio Licences, 444–445.
Radio Stations, 435, 436, 439–442, 1113, 1117.
Radio Time Signals, 442, 1152–1153.
Radioactive Substances Act, 135.
Radiography Statistics, 135–138.
Radiologists, 134–135, 219, 223.
Radio-telephone Services, 436.
Raffles, 1150–1151.
Rail Cars, 382.
Railway and Tramway Equipment, Imports of, 336, 351.
Railways, 381–391, 1192.
Accidents, 107, 123, 391, 415.
Air Freight Service, 421.
Debt, 818.
Employees, 390–391, 1066.
Private, 381, 391.
Revenue and Expenditure, 384–386, 793, 1192.
School Children's Transport, 184.
Superannuation, 233–234, 391.
Tribunal, 391, 1024, 1030.
Wages of Employees, 997, 1001.
Rainfall, 10–13.
Rakahanga (Roberson) Island, 2, 1109, 1110.
Rangemaking Industry, 623, 659.
Ranges, Mountain, 4–5.
Raoul Island, 1107.
Rape, 519, 533.
Rarotonga Island, 2, 1108, 1110–1113.
Rateable Value of Land, 477–478.
Rates, Local Government, 728, 814, 835–837, 1187.
Rates of Exchange, 883–885.
Rates of Interest—
On Building Societies' Deposits, 880.
On Company Deposits, 880.
On Fixed Deposits, 879, 880.
On Local Government Debt, 848–849.
On Mortgages, 892–896, 902, 903.
On Public Debt, 819–821, 824.
On Rehabilitation Loans, 289.
On Rural Intermediate Credit, 903.
Paid by Savings Banks, 871, 879–880.
Rates of Tax, 801–807, 953–954, 957.
Rates of Wages, 986–1002, 1015, 1016, 1017, 1020, 1023, 1026–1036.
Rates of War Pensions, 226–229.
Rating by Local Government, 147, 835–837.
On Unimproved Value, 836.
On Urban Farm Lands, 475.
Receipts, Overseas, 300–302, 869.
Reciprocal Benefits, Social Security, 198, 199, 200, 214–216, 794.
Reciprocal Tariff and Trade, 361–367.
Reclamation of Sand Dunes, 565.
Recreation and Physical Welfare, 144.
Recruiting—
Air Force, 275.
Army, 270–271.
Navy, 268.
Police, 264.
Red Cross Society, 144.
Redemption of Loans, 787, 791, 818–821, 842.
Redemption of Mortgages, 887–888, 896–897.
Redemption of Savings Bonds, 876.
Re-exports, 332.
Reformative Detention, 193, 251, 258, 259.
Refrigerators, 644.
Refuge Homes, 153.
Refugee Organization, International, 39.
Refunds to Racing Clubs, 811.
Registrars, Marriages Before, 78, 83.
Registration of—
Adopted Children, 77.
Aliens, 43–47.
Apiaries, 554.
Apprenticeships, 1042.
Births, 62, 66–67, 109.
Building Societies, 904.
Chemists, 143.
Companies, 908–912, 1193.
Dairy Companies, 544.
Deaths, 87–88, 111.
Deeds, 451, 887.
Dentists, 141.
Designs, 1144, 1145.
Electors, 28–29, 832.
Ex-nuptial Births, 67, 75.
Fishing Vessels, 586.
Friendly Societies, 240.
Hospital Dietitians, 142.
Industrial Unions, 1074.
Land Titles, 450–451.
Male Nurses, 141.
Maori Births, 109–110.
Maori Deaths, 88, 109, 111,
Maori Electors, 29.
Market Gardens, 530.
Marriages, 78, 110.
Maternity Nurses, 141.
Medical Practitioners, 140–141.
Midwives, 141.
Mortgages, 887–896.
Motor Vehicles, 408–410.
Newspapers, 430.
Nurseries, 530.
Nurses, 141–142.
Nursing Aids, 141.
Occupational Therapists, 142.
Opticians, 143.
Orchards, 531.
Patents, 1144, 1145.
Pharmaceutical Chemists, 143.
Physiotherapists, 142.
Plumbers, 143.
Poultry-runs, 553.
Private Schools, 179.
Psychiatric Nurses, 141.
Still-births, 77, 88, 99.
Trade Marks, 1144, 1145.
Trade Unions, 1074.
Unemployed, 1060.
Vessels, 377–378.
Registry, Ports of, 378.
Regulation of Prices, 962–964.
Regulation of Wages, 988–990.
Rehabilitation, 189, 191, 282–291, 727, 899–902, 1022.
Relief, Charitable, 149–150, 153.
Relief of Unemployment, 210–211, 1050–1051, 1059.
Religious Professions—
Marriages by Ministers of, 83.
Officiating Ministers, 78, 83.
Renewable Leases, 456–461.
Rent Restrictions, 1053–1057.
Rental Cars, 408.
Rental Value, Owner-occupied Houses, 715, 721, 730.
Renters, Film, Taxation of, 812.
Rents, House, 1053–1057.
Rents, Stabilization of, 1054.
Repayment of Public Debt, 787, 818–821, 825–827.
Representation Commission, 27–28.
Representatives, House of, 21–24, 1160.
Broadcast of Proceedings of, 442.
Election of, 22–23, 1146.
Members of, 1160.
Representatives in New Zealand, 1169–1171.
Representatives Overseas, 1167–1168.
Reproduction Rate, 32.
Research, Agricultural, 510–512, 521–522, 533–534.
Research, Coal, 604.
Research, Dental, 132.
Research, Educational, 194–195.
Research, Forestry, 576–577.
Research Institute, Wheat, 521–522.
Research, Medical, 140.
Research, Mining, 610–614.
Research Scholarships, 191.
Reserve Bank, 300–302, 823, 827, 853–856, 882.
Reserves, Air Force, 276.
Reserves, Farm Industry, 505–506.
Reserves, Military, 273.
Reserves, Naval, 269.
Reserves, Public or Scenic, 448–449.
Restrictions on Employment, 1014, 1017–1018, 1020, 1024.
Retail and Wholesale Trade Sector Account, 745, 753.
Retail Prices, 964–966.
Retail Trading, Quarterly Surveys, 708–711.
Retailers, Bank Advances to, 861.
Revaluations, Land, 474–475.
Revenue, 782–814, 1185.
Broadcasting, 443.
Cinematograph Theatres, 1140–1144.
Customs, 360–361, 797, 799–800.
Electric Power, 688–690, 691, 693, 841.
Forest Service, 565–566.
Insurance Companies, 916, 918, 921, 927–928, 932–936, 1194.
Local Government, 148, 689, 728, 839–841, 1187.
National Roads Fund, 403, 790.
Post and Telegraph, 431, 432, 436, 437.
Railway, 384–386, 389, 390, 793, 1192.
Social Security Fund, 199, 794, 797, 813.
Urban Transport, 395, 398, 399.
Rivers, 6–7, 682–684.
Control of, 789, 790.
Road Districts, 829–852.
Bridges in, 400.
Debt of, 844.
Milage of Roads, 400.
Road Goods Services, 411–413.
Road Passenger Services, 392–399, 411–413.
Road Safety, 413–415.
Road Transport, 392–399, 410–413.
Roads, 400–417.
Accidents on, 65, 101, 106, 107, 113, 415–417.
Expenditure on, 402–407, 790, 818.
Taxation, 402–403, 407, 410, 786, 797, 800.
Roll, Valuation, 473–474, 835.
Rolling Stock—
Buses, Tramcars, etc., 394, 395, 397.
Railway, 382–383.
Roman Catholic Schools, 170, 180, 1111.
Ross Dependency, 2, 3, 30, 1128–1129, 1213.
Whaling, 1129.
Rotorua Thermal Springs, 1153.
Royal New Zealand Air Force, 273–276, 281–282.
Royal New Zealand Navy, 267–270, 277, 278, 279, 281.
Rubber Products Industry, 622, 625–643, 654, 1001.
Rural Advances, 460, 897–904.
Rural Education, 184–185.
Rural Housing, 673, 676–677, 838, 900, 1053.
Rural Intermediate Credit, 903.
Rural Mail Deliveries, 429.
Rural Mortgages, 890–891, 893, 900.
Rural Population, 49–50.
Ryecorn, 519, 533.

S

St. Helens Hospitals, 133, 152, 153, 219.
St. John Ambulance, 144.
Safety of Machinery, 1104–1105.
Salaries and Wages, 149, 396, 399, 437, 617–624, 628–630, 643–661, 688–690, 698–700, 721, 730, 735, 736, 749–757, 949, 1141, 1184.
Charge on, 147, 199, 794, 797, 813, 988.
Salaries of Members of—
Executive Council, 23.
House of Representatives, 23–24.
Public Service, 1167.
Sales Tax, 727, 786, 797, 813–814.
Salmon, Acclimatization of, 592–593.
Salt, 595, 608, 827.
Samoa (see Western Samoa).
Sanatoria, 151.
Sanctuaries, Wildlife, 450.
Sand and Gravel, 595, 609.
Sand Dunes, Reclamation of, 565.
Sanitation, 124–129.
Sausage Casings, Export of, 10, 311, 326, 330, 331.
Savai'i Island, 3, 1118.
Savings Accounts and Bonds (National), 815, 875–876.
Savings Banks, 871–876, 879–880, 1190.
Savings, Private, 718–725.
Sawmills, etc., 567–573, 621, 651.
Wages of Employees, 997, 1000.
Scheelite, 309, 311, 597.
Scholarships, 190–192, 1121.
School Certificate, 169, 174.
School Children, 171–185, 1174.
Dental Treatment of, 131.
Medical Inspection of, 130.
Milk for, 130, 185.
Transport and Board of, 184.
School Committees, 166–167.
School Inspectors, 177, 179, 180.
School Journal, 188, 1107.
School Savings Bank, 873–874.
School System, 168–171.
School Teachers, 166, 179, 180, 185–187.
Superannuation, 233.
Schools, 166–197, 1111, 1116, 1121, 1122.
Carpentry, 285.
Combined, 171, 180–182, 184, 187.
Consolidation of, 184.
Denominational, 170, 180, 1111, 1121, 1122.
Dental Clinics, 131.
Military, 271–272.
Of Mines, 188, 610.
Private, 171, 179–180, 184, 1174.
Public, 166–187, 1174.
Special, 175, 194.
Science, Defence, 265–266.
Scientific and Industrial Research, Department of, 511–512.
Sea Fisheries, 586–591.
Seals, 591.
Seamen, 222, 229, 231, 1020–1022.
Seamen Act, Shipping and, 1020.
Secondary Education, 167–173, 180–185, 187, 1174.
Sector Accounts, 740–759.
Seed Certification, 525, 533–534.
Seeds, Grass and Clover, 519, 520, 527.
Exported, 310, 312, 327, 330, 331, 1181.
Seed-sowing, Aerial, 422.
Seismology, 8–10.
Sentences on Criminals, 250–251, 1175.
Separate Rates, 835.
Separation, Judicial, 84, 85.
Separators, Cream, 515.
Serpentine, 595, 608, 609, 655.
Service, Public (see Public Service).
Service-car Licences, 408.
Servicemen—
Acquisition of Land by, 286–287, 460–462.
Casualties Overseas, 278–282.
Demobilization of, 291.
Educational Facilities for, 288.
Financial Assistance to, 289–291, 460–462, 899–902.
Pensions for, 222, 225–233.
Registration of Deaths of, 88.
Rehabilitation of, 189, 191, 282–291, 727, 899–902, 1022.
Serviceman's Settlement Act, 454.
Services—
Air Force, 273–276, 278, 281–282.
Army, 270–273, 277–280.
Navy, 267–270, 277, 278, 279, 281.
Services and Goods Compared with Incomes, 738–740.
Services Sector Account, 745, 756.
Sessions, Parliamentary, Successive, 1161.
Settlement of Industrial Disputes, 1036–1041, 1088–1089.
Settlement of Land, 446–466.
Settlement, Servicemen's, 286–287, 289–291, 460–462.
Settlement, Small Farms, 456–462.
Sex Proportions, 33–34.
Sexes of—
Children Born, 70–72, 78, 110.
Factory Employees, 626–627.
Patients in Mental Hospitals, 156–164.
Patients in Public Hospitals, 119.
Prisoners, 258, 259.
Scholars and Students, 177, 179–182, 189–190.
School Teachers, 179, 180, 185–187.
Twin Births, 72.
Share Prices, Index Numbers, 980–985.
Sharebrokers' Licences, Tax on, 810.
Sharemilking Agreements, 1022.
Shares in Building Societies, 905, 906.
Shares, Labour, 1007.
Shearers' Wage Rates, 1030.
Shearing Machines on Farms, 515.
Sheep, 534–540, 1177.
Sheep and Lambs Slaughtered, 548, 645.
Sheep Farms, 513.
Sheep Skins and Pelts Exported, 31, 311, 326, 330, 331, 1182.
Sheetmetal Working Industry, 623, 660.
Shipping, 368–380.
Shipping and Seamen Act, 1020.
Ships (see Vessels).
Shoe and Boot Industry, 651.
Shops and Offices Act, 1015–1017.
Shops, Fire Losses on, 931.
Short-wave Radio Broadcasting, 439, 441.
Sick Funds, 241, 391, 437.
Sickness, 115–123, 241.
Benefits, 200, 202, 211–213, 222.
Insurance, 241, 920.
Signals, Time, 442, 1152–1153.
Silage, 526.
Silica Sand, 595, 609.
Silver, 595, 596.
Coins, New Zealand, 881.
Exported, 309, 311, 330, 331, 595.
Silviculture, 559–562.
Sinking Funds, 150, 692, 694.
Skins, Hides, and Pelts, Export of, 308, 310, 311, 325–326, 330, 331, 375, 1181, 1182.
Slaughter of Animals for Food, 547–548.
Snares Islands, 2, 1107.
Soap and Candle Industry, 622, 655.
Social Accounts, 715–781.
Social Security, 147, 198–224, 1006, 1010.
Benefits, 132, 164, 200–224, 716, 727, 730, 794.
Charge, 147, 199, 794, 797, 813, 956, 957, 988.
Fund, 132, 199, 794, 798, 813.
Reciprocity with Australia, 198, 199, 200, 214–215.
Reciprocity with Great Britain, 198, 200, 215–216.
Special Assistance, 214.
Taxation, 199, 727, 794, 797–799, 813, 988.
Soil Conservation, 564, 789, 790.
Soil Survey, 512.
Solander Island, 2, 1107.
Soldiers, 270–273, 277–280.
Sources of Income, 949–950.
South Africa, Union of—
Birth and Natural Increase Rates, 70.
Population, Annual Average Increase, 33.
Prices in, 966, 967.
Reciprocal Trade with, 362–363.
South African War Pensions, 222, 225, 228, 231.
Southern Alps, 4–5.
Sovereignty, 19–20.
Spas, 1153.
Specialist Services, 220, 223.
Specie, Movement of, 305, 1178.
Speed Limit, 414.
Spinsters Marrying, 80.
Spirits, Consumption of, 706.
Spirits, Duty on, 358, 359, 361.
Spirits, Imports of, 342, 352.
Sports, 144–145.
Stabilization of—
Prices, 962–964.
Rents, 1054.
Wages, 1032–1036.
Stabilization Subsidies, 506–507, 716, 728, 787.
Stakes, Tax on, 811.
Stamp Duties, 786, 797, 809–810.
Standard Time, 1152.
Standardized Death Rates for Cancer, 103.
State Advances, 838, 841, 897–904, 1052.
Corporation, 666–671, 823, 827, 838, 898–904, 1052.
State Aid to—
Afforestation, 564.
Building, 668–669, 838, 897–904, 1051–1052.
Cook Islands, 1114.
Discharged Servicemen, 282–291, 460–462, 899–902.
Farming Industry, 455–462, 510–512, 514, 897–904.
Hospital Boards, 147, 148, 150.
Housing, 838, 897–904, 1051–1052.
Immigrants, 38–39.
Local Government, 147, 148, 150, 404–406, 728, 838, 898–902.
Manufacturing, 900–902, 1145.
Mining, 610–614.
Niue Island, 1118.
Prospecting, 610.
Purchases of Private Land, 460.
Superannuation Funds, 235, 238.
Unemployed, 210–211, 222, 1050–1051, 1059.
Wheat Growing, 521–522.
State Coal Mines, 604–606.
Account, 793–794.
Persons Employed in, 606.
State Departments, 26, 1131, 1157–1158, 1163–1165.
State Finance, 726–730, 782–828, 1185, 1186.
State Forests, 555–562, 582–584, 818.
Accidents, 1092, 1095, 1098–1100.
State Housing, 663, 669–671, 677–678, 790, 818, 1052–1053.
Sale of, 903–904.
State Hydro-electric Department, 682, 1072.
State Indebtedness, 815–828, 1186.
State Insurance—
Accident, 823, 933–934.
Earthquake and War Damage, 795, 935–936.
Fire, 823, 934.
Life, 932–933.
State Marketing, 487–488.
State Maternity Hospitals, 152–153, 218–219.
State Placement Service, 1050, 1060, 1069–1071.
Stations—
Air Force, 275.
Fire Brigade, 932.
Hydro-electric, 682–684.
Meteorological, 11, 13, 1107.
Naval, 268.
Radio, 435, 436, 439–442, 1107, 1113, 1117.
Telephone, 432.
Statistical Information, Latest (see Forefront of Book).
Statistical Publications (see Forefront of Book).
Statistical Summary, 1172–1194.
Statutes of 1956, 1153–1155.
Steam, Geothermal, 684–685.
Steel and Iron, Imports of, 346, 353.
Sterling Exchange—
Holdings of, 856, 867, 868.
Rates, 884.
Sterling Values of Currency, 884.
Sterling Values of Trade, 294.
Stewart Island, 2, 3.
Oysters, 590.
Population, 54.
Still-births, 71, 72, 77–78, 98–100.
Registration of, 77, 88, 99.
Stock and Station Agents—
Advances to, 861.
Deposits with, 880.
Stock, Live (see Livestock).
Stock, Quotations for, 823.
Stocks, Retail, 711.
Stone Fruits, 519, 530, 531, 705.
Stone Quarries, 609, 1019.
Stones, Building and Ornamental, 595, 608, 609.
Stranding of Vessels, 380.
Streets and Roads, Length of, 400.
Strikes, 1025, 1036–1041, 1081–1090.
Students, 171–174.
Students, University, 171, 174, 189–192, 1174.
Subscribers, Telephone, 432.
Subsidies—
Highways, 404–406.
On Coal Production and Distribution, 506, 728.
On Food and Clothing, 506, 728.
Stabilization, 506–507, 716, 728, 787.
To Farming Industry, 506–507, 728.
To Gasworks, 507, 696.
To Hospital Boards, 147, 148, 150.
To Local Government, 841.
To Mining, 610.
To National Provident Fund, 238.
To Superannuation Funds, 235, 437, 791, 793, 794.
To Transport Industry, 506, 728.
Succession Duty, 807–809.
Suffrage, 23, 28, 832–833.
Sugar—
Consumption of, 706, 707.
Duty on, 357, 359, 361.
Exported, 310, 312.
Imports of, 342, 352.
International Agreement, 367.
Price Fixation of, 962.
Used by Factories, 647, 648, 649.
Sugar of Milk Exported, 310, 311, 330. 331.
Suicide, 65, 101, 108–109, 113, 256.
Sulphur, 353, 599, 611, 655.
Summary Convictions, 246–249, 252, 1175.
Summer Time (Daylight Saving), 1152.
Sunshine, 11–13.
Superannuation, 24, 148, 233–236, 391, 787.
Benefits, Social Security, 200, 202–203, 222.
Private Funds, 235–236.
Superphosphate and Fertilizer Industry, 655.
Superphosphate, Price Fixation of, 962.
Supplementary Medical, etc., Benefits, 200, 219–223.
Surtax, 356.
Survey of Companies with Overseas Affiliations, 775–781.
Survey Publications, 471–472.
Survey System, 467–470.
Surveys, 467–471.
Aerial, 422, 470.
Geodetic, 468–469.
Geological, 600, 606, 610–611.
National Forest, 558.
Of Coal Resources, 600–601.
Of Consumer Credit, 711–714.
Of Employment, 1061–1067.
Of Retail Prices, 967.
Of Retail Trading, Quarterly, 708–711.
Of Ships, 379.
Soil, 512.
Tidal, 470–471.
Sustenance Allowances, 1050, 1059.
Suwarrow (Anchorage) Island, 2, 1109, 1110.
Swedes, 519, 520, 526, 533.
Sweepstakes, 1150–1151.
Swordfish, 591.
Syphilis, 65, 97, 101, 112, 114, 117, 120, 127, 158, 159, 161.

T

Takutea Island, 2, 1108, 1110.
Tallow Exported, 310, 311, 324, 330, 331, 375, 1179.
Tallow Marketing and Prices, 505.
Tallow Produced, 645.
Tanning Industry, 622, 654, 1000.
Tariff, Customs, 355–367.
Tariffs and Trade Agreement (G.A.T.T.), 366.
Tasman Empire Airways, 422–423, 818, 827.
Tax, Income, 727, 786, 791, 797, 801–807, 937–961.
Tax, Land, 727, 786, 797, 801, 804.
Taxation, 360, 716–740, 786, 796–814, 1185.
Amusement, 797, 812, 1141–1144.
Customs, 355–367, 727, 797, 799–800.
Direct, 723, 724, 727, 728, 732–735, 796.
Employment Promotion, 813, 988.
Film Hire, 786, 797, 812.
Forest, 565.
Highways, 402–403, 786, 797, 800.
Indirect, 716, 724, 727, 732, 733.
Local Government, 728, 814, 835–837.
Motor Spirits, 358, 361, 403, 410, 800, 841.
Motor Vehicles, 358, 402–403, 407, 727, 800.
Orchards, 531.
Racing, 797, 810–812.
Roads, 402–403, 786, 797, 800.
Sales, 727, 786, 797, 813–814.
Social Security, 199, 727, 794, 797–799, 813, 988.
War, 357–359, 798.
Taxis, 408.
Taxpayers, Incomes of, 937–961.
Tea—
Consumption of, 706.
Duty on, 357.
Imports of, 342, 352.
Teachers' Grading, 167.
Teachers' Superannuation, 233.
Teachers' Training Colleges, 169, 174, 175, 185–186.
Teaching Aids, 188.
Teaching Profession, 185–187.
Technical Correspondence School, 171, 181–182.
Technical Education, 171, 180–184, 187, 1174.
Telegraph Services, 431–432, 435.
Telephones, 431–435.
Television, 441.
Temperature Records, 11–13.
Tenancy and Rents, 1051–1057.
Tenure of Crown Lands, 455–462.
Tenure of Occupied Land, 448, 457–459.
Terminating Building Societies, 905–907.
Terms of Trade, 980.
Territorial Air Force, 274–276.
Territorial Forces, 270–273.
Pensions for, 225.
Textiles, Duty on, 358.
Textiles, Production of, 620, 625–643, 650.
Theatres, Cinematograph, 1140–1144.
Theatres, etc., Fire Losses on, 931.
Therapists, Occupational, 142.
Third-party Risks Insurance, 920–924.
Thorium, 598, 610.
Three Kings Islands, 2, 1107.
Threshing Machines, 515, 517.
Tidal Survey, 470–471.
Timber—
Carried on Railways, 389, 390.
Export Duty on, 359.
Export of, 309, 311, 328, 330, 331, 573–575.
Import Duty on, 358, 364.
Imports of, 348, 353, 573–574.
Output, 484, 567–570, 651, 1183.
Plantations, 447, 513, 520, 529–530, 555–557.
Preservation of, 572–573.
Resources, 555–557.
Royalties, 566.
Sales, 566.
Trees, 13–14, 577–585.
Timbers, Strengths of, 585.
Time Lost—
Through Industrial Accidents, 1097–1101.
Through Industrial Disputes, 1081–1090.
Time Service, 442, 1152–1153.
Tin, 598.
Tire Tax, 358, 403, 800.
Title, Certificates of, Issued, 450–451.
Titles, Compulsory Registration of, 450.
Tobacco, 519, 520, 532–533.
Consumption of, 706.
Duty on, 357, 359, 361.
Factories, 620, 625–643, 650, 1000.
Imports of, 334, 342, 352.
Tokelau (Union) Islands, 1–3, 30, 1126–1128.
Toll Communications, 432, 434–435.
Ton-miles Flown, 420–424.
Tonnage of Registered Vessels, 377–378.
Tonnage of Shipping and Cargo, 368–378.
Tons, One-mile, Railway, 389, 390.
Top-dressing, 422, 528–529.
Topographical Mapping, 470.
Totalizator Taxation, 810–812.
Totalizator, Turnover on, 811.
Tourist Agents Overseas, 1167–1168.
Tourist Attractions, 1153.
Tourists, 37.
Tourists' Rail Tickets Issued, 388.
Town and Country Planning, 837–838.
Town Districts, 829–852.
Area of, 57.
Bridges in, 400.
Capital and Unimproved Values, 477.
Debt, 844, 847.
Milage of Streets, 400.
Population, 57.
Tractors, Imports of, 348, 353.
Tractors on Farms, 515, 516–517.
Trade, 292–377, 1178–1182.
Agreements, 361–367.
Balance of, 295.
Board of, 306.
Classification of Statistics, 304.
Commissioner Service, 307.
Cook Islands, 332, 354–355, 1113, 1114.
Direction of, 296–300.
Nauru Island, 1130.
Niue Island, 332, 1117.
Of Ports, 329, 353–354, 368–376.
Representatives, 1167–1171.
Terms of, 980.
Volume of, 303, 703.
Western Samoa, 1123–1124.
Trade Marks, 1144, 1145.
Trade Training of Discharged Servicemen, 285–286, 291.
Trade Unions, 1036–1041, 1074–1080.
Trades Certification, 174, 1044.
Trading Accounts, State, 792–794.
Trading Banks, 856–865, 876, 877, 1189.
Trading Companies, Deposits, 876, 880.
Trading, Retail, Quarterly Surveys, 708–711.
Traffic—
Accidents, 65, 101, 106, 107, 113, 391, 413–417.
Air, 418–428.
Motor, 408–417.
Offences, 247, 248–249.
Railway, 385–390, 1192.
Training of—
Defence Forces, 267–276.
Dental Nurses, 131.
Discharged Servicemen, 285–286, 291.
Nurses, 139.
Police Recruits, 264.
Teachers, 174, 175, 185–186.
Tramways, etc., 392–399.
Accidents, 107, 415.
Cable, 392.
Transhipments of Cargo, 374–377.
Transport, 368–428.
Districts, Urban, 829–852.
Equipment, Imports of, 336, 337, 338.
Equipment Industry, 623, 625–643, 659–660.
Licensing, 411–413.
Of School Children, 184.
Persons Engaged in, 1066.
Urban, 392–399.
Transport and Communications Sector Account, 745, 753.
Trawling, 586, 588.
Treasury Bills, 816, 822.
Treaty of Waitangi, 462.
Tree Planting, 555–565.
Trees, Forest, 13–14, 577–585.
Triplets Born, 71–72.
Trolley-buses, 394–397.
Trout, Acclimatization of, 7, 592.
Trust (Liquor) Control, 1150.
Trust Territory, 1–3, 30, 40, 233, 1118–1126, 1129.
Trustee, Maori, 463–464, 823.
Trustee, Public, 1131–1133.
Trustee Savings Banks, 874–875, 880.
Tuberculin Tests, 118.
Tuberculosis, 65, 97, 98, 101, 102, 103, 114, 116, 117–118, 120, 125, 126, 127, 129, 144, 151, 164, 212, 1111.
Maori Deaths from, 112.
Register, 118.
Tungsten Ore, 595, 597.
Tunnels, Railway, 381, 382.
Turkeys, 552.
Turnbull, Alexander, Library, 1204.
Turnips, 519, 520, 526, 533.
Tussock Boards, Nassella, 829–852.
Tussock Land, 528.
Twins, and Triplets Born, 71–72, 76.

U

Undergraduates, 189.
Under-Secretaries, Parliamentary, 23.
Unemployment, 1050–1051, 1059.
Benefits, 200, 202, 210–211, 222, 1050, 1059.
Taxation, 813, 988.
Unexercised Overdraft Authorities, 865.
Unimproved Occupied Land, 448.
Unimproved Value of Land, 473–478.
Land Tax Assessed on, 804.
Rating on, 836.
Unions, Trade, 1036–1041, 1074–1080.
United Kingdom—
Birth and Natural Increase Rates, 70.
Consumption of Foodstuffs, 705, 707.
Dairy Produce Imported into, 546.
Debt Domiciled in, 818–824, 847, 1186.
Meat Imported into, 551.
New Zealand Representatives in, 1168.
Population, Annual Average Increase, 33.
Prices in, 966, 967.
Purchase of Primary Produce, 492, 548.
Representatives in New Zealand, 1171.
Social Security Reciprocity, 198, 200, 215–216.
United Nations, 3, 70, 79, 90, 94, 1118.
United States of America—
Birth and Natural Increase Rates, 70.
Consumption of Foodstuffs, 705, 707.
Exchange Rate with, 885.
New Zealand Representatives in, 1168.
Population, Annual Average Increase, 33.
Prices in, 966, 967.
Representatives in New Zealand, 1171.
University Education, 169, 171, 174, 182, 188–192, 1174.
University Professors, 189.
University Scholarships, 190–192.
Unpaid Fractions, Totalizator, 811.
Upolu Island, 3, 1118.
Uranium, 598, 610, 611, 612.
Urban Drainage Districts, 829–852.
Urban Drift, 49.
Urban Farm Lands, Rating on, 475.
Urban Housing, 672–679.
Urban Mortgages, 890–891, 893, 900.
Urban Population, 49–52.
Urban Transport, 392–399.
Urban Transport Districts, 829–852.

V

Vacancies, Employment, 1064, 1068, 1071.
Vaccination, 129, 130.
Valuation—
Of Exports, 292, 307.
Of Imports, 292–293, 333.
Of Land, 472–478.
Of Personal Expenditure, 718.
Roll, 473–474, 835.
Value Added in Manufacturing, 617–624, 636–637, 639, 641, 645–661, 1184.
Value of—
Currency, –885.
Factory Production, 483–485, 617–661, 1184.
Farm Production, 479–485.
Goods Available for Use, 701–702.
Materials Used in Factories, 617–661, 1184.
Production, 479–485, 702.
Veal—
Consumption of, 549, 551, 705.
Export of, 330, 331, 549, 550.
Production of, 549, 550, 645.
Vegetable Gardens, 529–530.
Vegetables—
Consumption of, 705.
Exported, Canned, 310, 312.
Retail Prices of, 964.
Vegetation, 13–14.
Vehicles—
Buses, Tramcars, etc., 392–399.
Motor (see Motor Vehicles).
Railway, 382.
Veneer and Plywood, 571, 621, 658.
Venereal Diseases, 65, 97, 101, 112, 114, 117, 120, 127, 158, 159, 161, 216.
Vessels—
Crews of, 36, 37.
Entered and Cleared, 368–374.
Fishing, 587.
Nationality of, 370–371.
Naval, 267, 269, 277, 281.
Radio Communication with, 436.
Registered, 377–378.
Survey of, 379.
Wrecked, 380.
Veterans' Allowances, 222, 225, 229, 231.
Veterinary Services, 510, 514.
Vineyards and Grapes, 529, 531.
Visitors to New Zealand, 37.
Visual Aids in Teaching, 188.
Vital Statistics, 62–123, 1173.
Cook Islands, 1110.
Niue Island, 1115.
Western Samoa, 1120.
Vocational Guidance, 183, 1060.
Volcanoes, 4, 5.
Volume of—
Exports, 303, 703.
Factory Production, 484–485, 640–641.
Farm Production, 481, 484–485.
Goods Available for Use, 703.
Imports, 303, 703.
Money in Circulation, 876–877.
Production, 481, 484–485, 640–641.
Trade, 303, 703.
Voluntary Contributions to Hospitals, 148.
Voluntary Welfare Organizations, 144.
Voting—
At General Elections, 1146.
At Licensing Polls, 1146.
Qualifications, 28–29, 832–833.
Vouchers, Audit of, 782–783.

W

Wage, Basic, 1026.
Wage Earners, 617–628, 852, 1080.
Wage, Minimum, 1015, 1016, 1023, 1026–1027.
Wage Rates, 986–1002, 1015, 1016, 1017, 1020, 1023, 1026–1036.
Wages—
And Salary Payments, 149, 396, 399, 437, 617–624, 628–630, 643–661, 688–690, 698–700 721, 730, 735, 736, 749–757, 949, 1141, 1184.
And Wage Rate Legislation, 1026–1036.
Average Weekly Wage in Industry, 1000–1002.
Increases in, 989–990, 1015, 1026–1036.
Legislative Changes in, 988–990, 1026–1036.
Lost Through Industrial Disputes, 1081–1090.
Minimum Weekly Rates, 996–999.
Of Cinematograph Theatre Employees, 1141.
Of Electric-supply Employees, 688–690.
Of Factory Employees, 617–624, 628–630, 643–661, 1184.
Protection of, 1031–1032.
Shearers', 1030.
Stabilization of, 1032–1036.
Tax on, 147, 199, 794, 797, 813, 988.
Waitangi, Treaty of, 462.
War, 276–282.
Bursaries for Soldiers' Dependants, 288.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Casualties, 278–282.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Damage and Earthquake Insurance, 795, 935–936.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Deaths Register, 88.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Debt, 817, 818.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Expenditure, 817, 818.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Expenses Account, 798.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Loans, 817, 818.
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Measures Affecting—
Apprentices, 1042.
Labour Legislation, 1009, 1032–1033.
Prices, 962–963.
Pensions, 222, 225–233.
Pensions Appeal Board, 230.
Pensions Emergency Fund, 229.
Publications Pertaining to, 1212.
Purchases of Produce, 492.
Taxation, 357–359, 798.
Veterans' Allowances, 222, 225, 229, 231.
Warships, 267, 269, 277, 281.
Washing Machines, 644.
Water Power, 681–695, 818.
Waterfront Control, 1012, 1025.
Weather, 10–13, 427, 1107, 1115, 1118.
Weights and Measures, 467, 519.
Welfare, Maori, 1151–1152.
Welfare, Maternal, 126, 133.
Welfare of Workers, 1015, 1016, 1018–1019, 1021, 1024.
Welfare Organizations, 144.
Wellington—
Broadcasting Stations, 439–442.
Building Values, 676.
Climate, 11, 13.
Houses and Flats, New State, 678.
Population, 51, 52, 55.
Retail Prices, 964–966.
Sales Tax Receipts, 814.
Shipping, 329, 354, 370, 372–376.
Urban Transport, 392, 396–399.
Western Samoa, 1–3, 40, 233, 1118–1126.
Bibliography, 1213.
Broadcasting Station, 441.
Education, 1121–1122.
Population of, 30, 1120.
Radio Communication, 436.
Trade, 1123–1124.
Whale Oil, 309, 311, 587, 590.
Whales and Whaling, 590, 1129.
Wheat, 519–523, 1176.
Imports of, 342, 352.
International Agreement, 366–367.
Milled, 647.
Price Fixation, 962.
Research, 511.
Subsidy on, 506.
Whey Butter, 546, 646.
Whipping Abolished, 251.
Whitebait, 587, 591.
Wholesale and Retail Trade Sector Account, 745, 753.
Wholesale Licences, 1146–1150.
Wholesale Prices, 967, 972–974.
Whooping-cough, 65, 97, 101, 112, 114, 130.
Widowers, Remarriages of, 80, 82.
Widows—
Benefits, 200, 202, 205–206, 222.
Remarriages of, 80, 82.
War Pensions, 225–233.
Wills Administered by Public Trust Office, 1131–1133.
Wine, Consumption of, 706.
Wine, Duty on, 358.
Wine Licences, 1147.
Wine-making Industry, 620.
Withdrawals from Savings Banks, 871–875, 1190.
Wives, Aggregation of Income, 948.
Wives, Allowances in Respect of, 203–234.
Women—
Air Force, Royal New Zealand, 274, 276.
Army Corps, Royal New Zealand, 270, 273.
Deaths of, in Childbirth, 65, 100, 101, 105–106, 113, 121.
Eligible for Parliament, 23.
Employed in Factories, 626–627, 1058, 1062, 1063, 1065–1066.
Nationality Laws, re, 41.
Naval Service, Royal New Zealand, 268.
Of Child-bearing Ages, 68–69.
Offences by, 252.
Police, 264.
Wage Rates of, 993–995, 998, 999, 1027.
Working Conditions of, 1014, 1015–1016, 1017.
Working Hours of, 1003, 1004.
Wood Preservation, 572–573.
Woodpulp, Exports of, 309, 311, 328, 330, 331.
Woodpulp, Production of, 569–571.
Wool, 480, 493–495, 539–540, 645, 1183.
Capital Account, 506.
Carried on Railways, 389, 390.
Commission Account, 506.
Commissions, 489, 493–494.
Export Price Index, 977.
Exports of, 308, 310, 311, 320, 330, 331, 375, 1179.
Imports of, 343.
Levy, 360, 493, 540.
Marketing of, 489, 493.
Prices for, 494–495, 1183.
Retention Moneys, 506, 722.
Used at Local Mills, 539, 650.
Woollen Mills, 620, 650, 1000.
Woolscouring Industry, 620.
Workers' Compensation, 1045–1050, 1091–1094.
Insurance, 921, 934.
Workers' Educational Association, 196.
Working Conditions, 1012–1025.
Working Conditions in the Government Service, 1024–1025.
Working Days Lost Through Industrial Disputes, 1081–1090.
Working Hours, 641–642, 1003–1004, 1014–1017, 1020, 1022–1024.
Working Proprietors, 1062, 1063.
Wrecks, 380

X

X-ray, 134.
Diagnostic Services, 219, 223.
Examinations, 118, 219.
Plants, 137.

Y

Yields—
Butterfat, 544.
Crops, 521–526, 1176.
On Market Prices of Shares, 984.
Youth Centres, 183, 1060.
Youth Hostels, 154.
Youths—
Wage Rates of, 995, 998–999, 1004.
Working Conditions of, 1014, 1015, 1017–1018.

Z

Zoology, 14.